In 2023, the UAE economy saw robust growth of 3.4%[1] and is expected to accelerate to an impressive 4.0% by 2024 [2][13]. These figures represent the UAE’s real GDP growth and highlight the country’s dynamic and expanding economic landscape. This positive development offers a promising outlook for investors and shows that the UAE is rich ground for diverse investment opportunities.
Gross Domestic Product (GDP) Trend and Outlook in the UAE
Since 1990, the UAE’s GDP has increased continuously, which is a remarkable development in economic growth. Back in 1990, the economy generated a GDP of 50 billion dollars[3][4]. In 2024, the expected GDP is expected to rise to USD 537 billion, an increase of 974% in 34 years.[3][4]
This trend highlights two significant periods of strong growth: from 2000 to 2009 and from 2021 to date. The UAE’s rapid recovery from the COVID-19 pandemic sets it apart from many other countries, leading to a booming economy from 2021 onwards.
Of particular note is Dubai, whose success goes beyond the oil industry and highlights the diverse drivers of the UAE’s economic expansion.
Dubai’s GDP 2023
On January 21, 2024, the Dubai government published the economic statistics for the first nine months of 2023. Contrary to popular belief, Dubai’s revenues are not primarily based on oil. Originally, oil reserves laid the foundation for infrastructure and paved the way for the growth of trade, manufacturing and tourism. Today, more than 95% of Dubai’s GDP comes from the non-oil sector, with oil accounting for less than 1% [11]. This shift underlines Dubai’s evolution into a dynamic and diversified economy ready for the post-oil era.
Dubai recorded a 3.3% increase in real GDP [10] during this period [5][12], underlining its economic vitality and capacity for sustainable growth. This reflects Dubai’s successful development strategies and its status as a global economic center.
The most important economic sectors contributing to Dubai’s GDP are:
- Manufacturing: contributing 8.3% to GDP and growing at a rate of 2.2%.
- Wholesale and retail: Leading with a contribution of 24.6% and a growth rate of 1.5%.
- Construction: With a contribution of 6.3% and growth of 1.6%.
- Accommodation and food services: The highest growth at 11.1% and a contribution of 3.4%.
- Transportation and storage: Significant growth with 10.9% and a contribution of 13.1%.
- Financial and insurance services: With a contribution of 11.4% and a growth rate of 2.7%.
- Real Estate: With a contribution of 8.2% to GDP and a growth rate of 4.0%.
These sectors show the breadth of Dubai’s economic development and its great attractiveness for investors.
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Dubai Economic Agenda D33
On January 4, 2023, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, announced the “D33” economic agenda, which aims to make Dubai a leading global economic hub by 2033, the city’s 200th anniversary.
The D33 agenda aims to achieve major economic transformation over the next nien years, with a focus on growing the industrial sector, expanding exports and establishing Dubai as one of the world’s leading logistics and financial centers. It aims to attract a skilled workforce and make the city a prime location for multinational companies and SMEs.[6]
Key priorities [7] include improving the logistics sector to become one of the top five in the world, developing the manufacturing sector through advanced production techniques and improving the financial services sector to become one of the top four financial centers in the world.
In addition, the D33 has set itself the tangible goal of making Dubai one of the top three destinations for international tourism and business, fostering a competitive business environment and ensuring a high standard of living and security.
Through these strategic initiatives, Dubai aims to strengthen its status as a dynamic, fast-growing business hub with a diverse and productive economy.
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Disclaimer: The data presented in this article is for informational purposes only, compiled with diligent effort and research. NST Real Estate strives for accuracy but cannot guarantee the absolute veracity of all content represented in this article. The information is drawn from various sources across the internet, and while we aim to provide reliable data, we are not liable for any inaccuracies, financial losses, or damages arising from the use of or reliance on this information.
[1] Dubai’s Resilient Economy Shows Robust Growth of 3.3% in the First Nine Months of 2023
[2] IMF forecasts UAE GDP growth of 3.4% in 2023, 4% in 2024
[3] GDP (current US$) – United Arab Emirates
[4] United Arab Emirates: Gross domestic product (GDP) from 1988 to 2028
[5] Dubai continues its economic surge with 3.3% GDP growth in the first nine months of 2023
[7] Dubai Economic Agenda ‘D33’
[8] Dubai Economy
[9] GDP, current prices (Billions of U.S. dollars)
[10] Dubai continues its economic surge with 3.3% GDP growth in the first nine months of 2023
[11] Economy of Dubai
[12] National Accounts: Government of Dubai
[13] United Arab Emirates: Gross domestic product (GDP) growth from 2018 to 2028
