A growth of Dh307.5 billion recorded during the first nine months of 2022….reports Asian Lite News
Dubai’s GDP grew 4.6% year-on-year to AED307.5 billion during the first nine months of 2022 compared with the same period last year, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of The Executive Council, has announced.
“Dubai’s economy is founded on strong principles of income diversification by developing strategic sectors, promoting future-focused economic activities, implementing prudent fiscal policies, and constantly upgrading regulatory and legal frameworks to encourage investment and support business,” Hamdan said.
“Our strong partnership with the private sector, both locally and internationally, is a key enabler for sustaining our growth with a clear vision to maintain Dubai’s position at the forefront of various international competitiveness indicators.”
According to the latest economic report by the Dubai Digital Authority’s Dubai Statistics Centre, ‘Wholesale and Retail Trade’ accounted for 24.1% of Dubai’s GDP during the January-September period this year, maintaining its position as the top contributor to the emirate’s economy. In terms of growth, the hospitality and F&B services outperformed all other sectors, with a year-on-year increase of 28% during the year’s first nine months.
Among notable sectoral performances is the remarkable growth in ‘Transport and Storage,’ accounting for 2.5 percentage points or more than half of the 4.6 percentage-point growth in Dubai’s GDP in the first nine months of 2022. The fact that the sector’s contribution to the overall GDP stood at just 11.6% during the period underscores the dynamism of Dubai’s economy, highlighting how different activities and sectors integrate to lend robustness and strength to the emirate’s economy.
1.6% growth in trade activity
The Wholesale and Retail Trade sector reached a value of AED74 billion during the first nine months of 2022, growing by 1.6% compared with the same period in 2021. The activity accounted for 24.1% of Dubai’s nine-month GDP and contributed 9% (more than 0.4 percentage points) to the emirate’s GDP growth. Dubai’s vibrant retail sector is the world’s top market for international brands. It is also a thriving hub for international trade and re-export, connecting the East with the West for foodstuff, commodities, and consumer and capital goods, among others.
Transport & storage activity
The Transport and Storage sector reached a value of AED35.8 billion during the first nine months of 2022, growing by a remarkable 26.3% compared with the same period in 2021. The activity, which accounted for an impressive 2.5 percentage point growth in the emirate’s GDP during the period, includes transportation of passengers and cargo by rail, road, water or air. It includes associated activities such as terminal and parking facilities, cargo handling, storage facilities, etc.
Within the sector, air transport contributed the lion’s share to its value and growth due to a significant increase in demand for air services. Dubai’s airlines witnessed a 151% increase in the number of passengers they flew during the first nine months of this year compared with the same period last year, thanks to the easing of travel restrictions in most countries worldwide.
Real estate activity
Dubai’s real estate activity grew by 2.5% y-o-y during the first nine months of 2022, accounting for a 9.1% share of the emirate’s GDP and contributing 5% (0.23 percentage points) to the overall GDP growth. The growth results from a 76% year-on-year increase in real estate sales during the first nine months of the year, according to Dubai Land Department (DLD) data. The sector benefitted from the Dubai government’s economic stimulus packages and enhanced transparency, boosting investor confidence.
Financial and insurance activities reached a value of AED32.8 billion during the first nine months of 2022, growing by 1.2% compared to 2021. The sector accounted for a 10.7% share of Dubai’s GDP and a 3% share (0.14 percentage points) of GDP growth during the nine months.
UAE Central Bank data shows a year-on-year increase of 1.4% in loans and a 4.9% rise in deposits compared with the same period last year. The sector benefitted from a 1.1% decrease in interest rates on loans and a 15% decrease in interest rates on deposits during the nine-month period, which boosted the banking sector’s bottom line.