As per the reports of the calendar year 2024, Dubai’s recorded GDP was AED 429 billion. Over the years Dubai has shown massive growth in terms of development in technology and other factors. Do you know a fun fact about this place? Almost 90% of Dubai’s population is foreigners. Isn’t it just amazing? Well, Dubai’s policies are quite attractive, compelling people to move in here.

In comparison, there was a growth of 3.2 percent in the 2024 GDP of Dubai than the year 2023. Now, let’s evaluate the factors that contributed to this economic growth. We will also get to know about the predictions for the 2025 first-quarter GDP in Dubai.

Establishment of New Businesses

In the year 2015, there was a major rise in the business establishment number in Dubai. It saw a rise of 12.5% in the registration of new businesses. Talking in exact numbers there were a total of 9,317 new registered firms, this made the total number of established businesses in Dubai to 106,000.

Also, during January and August 2017, license distribution to the business took place. A total of 2,49,000 were issued during the period. Now, you can imagine how these businesses must have helped in shaping the economy of Dubai. Let’s go more deeply into the details about Dubai’s GDP.

Contributing Factors of GDP

For in-depth detail about the GDP, we have brought you some of the factors that have a direct impact on the GDP. Below, we have written the points you are looking for, take a look at them:

• Transportation and Storage

The sector recorded a growth of AED 15.4 billion in the first quarter of 2024, in comparison with the progress of last year, this number is 5.6% more. To sum it all up, the total contribution of this sector is 13.4% of Dubai’s GDP.

• Financial and Insurance

There was a real growth in the finance sector by 5.6% in comparison to that of 2023. The number reached AED 15.1 billion from AED 14.3 billion. In the Emirate’s economy, it contributed to 13.1%.

• Retail and Wholesale

This sector has also gone through a significant number of growth in 2024. The total contribution in GDP of this sector is 22.9%, in value, this number is AED 26.3 billion. Talking about the growth in 2023, the number was AED 25.5 billion. Therefore, we can say that this sector grew by 3%.

• Real Estate Sector

New investment policies of the real estate sector, helped in the growing economy of Dubai as well. With its continuous development of luxury projects such as Sobha Realty Dubai, investors started to invest in this sector. Here, the growth rate was 3.7% in the first 2024 quarter, contributing with 7.3 percent in total in GDP.

Prediction of the year 2024

The economy of Dubai has been evolving continuously in the last few years. This is the reason that Dubai comes up in the list of the most developed places to live. We’ve already discussed about the factors and growth of GDP in the year 2024, so let us now move further. As per the predictions, the GDP of Dubai in the year 2025 is more likely to grow by 5%. The tourism of the country will continue to grow just like previous years exceeding its contribution to the GDP.

With our blog, we tried to demonstrate different factors affecting the growth of GDP in Dubai, and predictions of the year 2025.