Dubai's GDP Grows To AED 119.7 Billion In Q1 2025 With Strong Sector Performance

Dubai's economy demonstrated resilience in the first quarter of 2025, with a GDP of AED119.7 billion, reflecting a 4% increase from the previous year. This growth was driven by various strategic sectors, showcasing the emirate's economic vitality. The human health and social work sector led with a 26% rise, highlighting its significant contribution to this upward trend.

The real estate sector, a key component of Dubai's economy, expanded by 7.8% in Q1 2025. It contributed 7.5% to the GDP, amounting to AED9 billion, and added 0.6 percentage points to economic growth. Meanwhile, financial and insurance activities grew by 5.9%, reaching AED16 billion from AED15.12 billion in Q1 2024.

The accommodation and food services sector saw a 3.4% increase, contributing AED4.9 billion to the GDP and adding 0.14 percentage points to growth. Similarly, the information and telecommunication sector grew by 3.2%, with a total value of AED5.3 billion, contributing 0.14 percentage points to economic growth.

The wholesale and retail trade sector played a crucial role by contributing 23% to Dubai's economy, valued at AED27.5 billion, marking a 4.5% increase from the previous year and boosting growth by 1.03 percentage points. Trade activity supports other sectors by providing goods for various purposes.

Manufacturing also showed progress with a 3.3% growth rate, reaching AED8.7 billion compared to AED8.4 billion last year, contributing 7.3% to GDP and adding 0.24 percentage points to economic growth.

Transport Sector Insights

The transport and storage sector experienced a modest growth of 2%, reaching AED15.7 billion from AED15.4 billion in Q1 2024, contributing 13% to Dubai’s GDP and adding 0.27 percentage points to growth. This sector includes land, water or air transport activities involving individuals or goods.

Air transport remains the largest contributor within this sector due to its high output levels.

Data-Driven Economic Strategies

Younus Al Nasser from Digital Dubai emphasised the importance of reliable statistics for understanding trends: "In an era defined by data and AI, reliable statistics are indispensable for understanding current trends and anticipating future developments." The focus is on integrating data across entities for informed decision-making.

The Dubai Data and Statistics Establishment is enhancing its survey base as part of a transformation plan aimed at adopting updated international classifications and best practices globally.

Visionary Leadership Driving Growth

Hadi Badri of DEDC highlighted Dubai’s strategic initiatives: "Guided by the city’s visionary leadership... our focus remains on implementing strategic initiatives... enabling innovation." These efforts aim at unlocking new opportunities through local and international partnerships.

Other activities accounted for 26% of GDP in Q1 2025 with a growth rate of 1.9%, contributing an additional half percentage point towards overall economic expansion.

The strong performance in Q1 continues from last year's achievements when Dubai’s economy expanded by 5.8% at current prices (AED541 billion) and by 3.2% at constant prices (AED443 billion). Key sectors like trade, real estate, finance services contributed significantly during this period.

With inputs from WAM