Dubai recorded a GDP of AED119.7 billion ($32 billion) in the first quarter of 2025, marking a 4 percent growth from the same period in 2024, it was recently announced.
“Dubai’s GDP growth in Q1 2025 is the result of a deliberate, multi-faceted economic strategy,” Erik Boekel, Chief Commercial Officer at asset management DHF Capital, told Business Recorder.
“The overarching blueprint is the Dubai Economic Agenda D33, which aims to double the economy’s size by 2033. This vision is actioned through proactive policies like the Next Gen FDI initiative, making Dubai a top global destination for foreign investment, and comprehensive visa reforms, such as the golden and green visas, which attract and retain a stable pool of high-skilled global talent,” he said.
Will the UAE grow non-oil foreign trade to AED 4trn four years early?
He added that the growth was broad-based, with a notable surge in the health sector, reflecting strategic investment in quality of life to attract professionals.
According to the government’s statement, the growth recorded in Q1 2025 was driven by strong performances across a wide range of strategic sectors.
The human health and social work sector reached AED1.9 billion in the first quarter of 2025, achieving a 26 percent growth compared to the previous year’s first quarter. It accounted for 1.5 percent of Dubai’s total GDP.
The real estate sector, described in the statement as “a cornerstone of Dubai’s economic structure”, grew by 7.8 percent in Q1 2025, contributing 7.5 percent to the emirate’s GDP, with a total value of AED9 billion.
The finance and insurance sector achieved growth of 5.9% compared to the same period last year, reaching AED16 billion. It accounted for 13.4 percent of Dubai’s economy. Meanwhile the accommodation and food services sector recorded 3.4 percent growth, reaching AED4.9 billion, contributing 4.1 percent to the GDP.
The Information and Telecommunication sector grew by 3.2 percent, with a total value of AED5.3 billion, and wholesale and retail trade contributed 23 percent to the economy, with a value of AED27.5 billion, up from AED26.3 billion in the same period in 2024.
The manufacturing sector grew by 3.3 percent, reaching AED8.7 billion. It contributed 7.3 percent to GDP.
The transport and storage sector grew by 2 percent compared to the same period last year, reaching AED15.7 billion. The sector encompasses all activities pertaining to land, water or air transport involving individuals, goods, handling and storage activities, and postal services. Air transport remains the largest contributor within this sector due to its high output.
In 2024, Dubai’s economy had expanded by 5.8% at current prices to reach AED541 billion, and by 3.2 percent at constant prices, totalling AED443 billion.
His Excellency Hadi Badri, CEO of Dubai Economic Development Corporation, the economic development arm of the Dubai Department of Economy and Tourism, said: “At a time when businesses, investors, and entrepreneurs are seeking stability and certainty, Dubai’s sustained and diversified economic growth continues to underscore its global appeal.”
“Powered by strong public-private collaboration, Dubai’s performance through 2024 and into the first quarter of 2025 reflects our continued momentum towards achieving the goals of the Dubai Economic Agenda D33.”
“As we look to accelerate further growth, our focus remains on implementing strategic initiatives and building both local and international partnerships, in turn unlocking new opportunities, enabling innovation, and turning ideas and plans into scalable, commercial successes,” he added.
When asked how Dubai can sustain this momentum, Boekel said the emirate “is building a future-proof economy on three pillars.”
“First, it is transitioning to a knowledge-based economy focused on innovation rather than just consumption. Second, it aims to lead the Fourth Industrial Revolution through major investments in AI and FinTech. Third, the Dubai Clean Energy Strategy 2050 anchors its commitment to sustainability and the green economy.”
According to Boekel, “this combination of talent attraction with strategic investments in technology and decarbonisation is designed to ensure long-term resilience and growth.”
As Dubai’s GDP grows, so does its support for businesses. The Dubai Chamber of Digital Economy, one of the three chambers operating under the umbrella of Dubai Chambers, recently announced it successfully supported 308 high-potential digital start-ups to establish and grow their businesses in the emirate during H1 2025, achieving year-over-year (YoY) growth of 39 percent compared to the 221 companies supported during the same period last year.
Meanwhile the Dubai International Chamber said it attracted 143 companies to Dubai during H1 2025, representing a 138 percent increase compared to the 60 companies attracted in H1 2024. These included 31 multinational companies, marking a 138 percent increase over the 13 attracted in H1 2024.
Dubai’s economic momentum also ties into the UAE’s broader ambition to grow its non-oil foreign trade to AED 4 trillion by 2027.
Copyright Business Recorder, 2025
