Transportation and Storage Sector Leads with Remarkable 10.3% Growth, Outperforming Other Industries.
In Dubai, the real gross domestic product (GDP) exhibited a 2.8 percent year-on-year expansion during the initial quarter of the year, attaining Dh111.3 billion. This growth trajectory exceeded the average global growth rates recorded for Q1 2023.
Chairman of The Executive Council and Crown Prince of Dubai, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, remarked that the sustained elevated growth in the first quarter reinforces Dubai’s solid foundational strengths. Thus, it is enduring sustainability, resilience, and consistent ability to forge new avenues for thriving enterprise and innovation.
The initiation of the Dubai Economic Agenda D33 aimed at doubling the emirate’s economic magnitude within the upcoming decade. Thus, solidifying its position among the globe’s foremost three cities. It has also established a strategic foundation for launching a fresh expansion and value augmentation phase. Fueled by the synergistic collaboration between the public and private domains, Dubai remains poised to elevate its influence in shaping the trajectory of the worldwide economy.
Dubai’s Q1 growth far surpasses that of several highly developed nations. OECD data reveals a seasonally adjusted growth of 1.6 percent for OECD countries. Meanwhile, the European Union experienced a 1.1 percent growth, and the US economy expanded by 1.8 percent in the year’s initial quarter.
Key Sectors Highlighted
The report underlined that the wholesale and retail trade sector was the largest contributor to the economy, constituting 22.9 percent of the GDP. Following closely, the transportation sector accounted for 14.1 percent.
During the first quarter, the trade sector exhibited a growth of 1.2 percent in comparison to the same period in 2022, generating an additional value of Dh25.5 billion.
Remarkably, the transportation and storage sector outperformed all others, displaying a substantial growth of 10.3 percent.
The food services and accommodation sector achieved a growth rate of 5.6 percent, adding an approximate value of Dh4.5 billion. Contributing 4.1 percent to the economy and 8 percent to the overall Q1 growth.
Real estate activities grew 2.4 percent, contributing 7.4 percent to the economy and 6 percent to the overall recorded growth.
Financial and insurance activities experienced a 3.2 percent growth. It is simply contributing 12.7 percent to the GDP and generating Dh14.2 billion in added value. Notably, this sector accounted for 15 percent of Dubai’s total Q1 growth.
Hamad Obaid Al Mansoori, Director General of the Dubai Digital Authority, emphasized that Dubai’s economic accomplishments stem from visionary policies to establish the city as a premier global business and investment hub across diverse sectors. Digital Dubai remains committed to collaborating with other government entities to ensure sustainable economic momentum through robust digital infrastructure. Also, it involves top-tier cybersecurity, open data accessibility, and a conducive environment fostering growth and prosperity.
Helal Saeed Al Marri, Director General of Dubai’s Department of Economy and Tourism, highlighted the ongoing acceleration of momentum within core sectors and emerging growth segments. This progress is further bolstered by effective cross-industry and public-private collaborations. Consequently, it aligns with the visionary Dubai Economic Agenda D33 to fulfill leadership objectives over the next decade.
Thanks/Reference/Source: https://gulfnews.com/