Dubai’s economy surged to AED119.7 billion in Q1 2025, driven by booming trade, real estate, and healthcare sectors, cementing its status as a global economic powerhouse….reports Asian Lite News
Dubai’s economic growth trajectory remained robust in the first quarter of 2025, with the emirate recording a GDP of AED119.7 billion — a 4% increase compared to the same period in 2024. The performance underlines the emirate’s continued resilience, diversification, and ability to thrive amid global economic fluctuations.
The growth was powered by a broad spectrum of strategic sectors, with human health and social work activities emerging as the fastest-growing, surging by 26% year-on-year. This sector, now valued at AED1.9 billion, contributed 1.5% to Dubai’s GDP and added 0.3 percentage points to the overall growth rate.
Real estate activities, a cornerstone of Dubai’s economy, expanded by 7.8% to AED9 billion, accounting for 7.5% of total GDP and driving 0.6 percentage points of growth. Meanwhile, financial and insurance services posted a 5.9% increase, reaching AED16 billion and representing 13.4% of the economy.
The accommodation and food services sector rose 3.4% to AED4.9 billion, contributing 4.1% to GDP. Information and communications technology grew by 3.2%, valued at AED5.3 billion, reflecting Dubai’s sustained investment in its digital economy.
The wholesale and retail trade sector—the single largest contributor to the economy—rose by 4.5% to AED27.5 billion. Accounting for 23% of total GDP, it boosted economic growth by over one percentage point. The sector’s wide reach supports multiple industries, from supplying intermediate goods for manufacturing to providing consumer products and services.
Manufacturing activities recorded a 3.3% growth, reaching AED8.7 billion, while transport and storage, driven predominantly by air transport, grew by 2% to AED15.7 billion, contributing 13% to GDP. Other sectors combined accounted for 26% of GDP, registering a collective 1.9% rise.
Momentum from 2024
The Q1 2025 performance builds on the solid growth achieved in 2024, when Dubai’s GDP at current prices climbed 5.8% to AED541 billion. At constant prices, GDP grew 3.2% to AED443 billion, with trade, real estate, financial services, transport, and industry collectively contributing nearly 78% of overall growth.
Official Perspectives
Younus Al Nasser, Chief Executive of the Dubai Data and Statistics Establishment at Digital Dubai, said the results demonstrate how reliable, timely statistics are essential in shaping policy and business strategy.
“In an era defined by data and AI, these insights allow policymakers, researchers, and businesses to make well-informed decisions. Our focus remains on integrating data systems across government and private sectors to support the emirate’s long-term vision,” he added.
Hadi Badri, CEO of Dubai Economic Development Corporation (DEDC), emphasised that Dubai’s growth reflects the strength of its public-private partnerships and the city’s commitment to the Dubai Economic Agenda D33, which aims to double the size of the economy over the next decade.
“We are committed to fostering innovation, building partnerships, and unlocking new opportunities that transform ideas into scalable commercial successes,” Badri said.
The Dubai Data and Statistics Establishment is currently expanding its survey base and recalibrating the GDP time series to align with updated international classifications and global best practices. This will ensure more accurate, comprehensive economic measurement to support strategic planning.
With its diversified growth drivers, sustained investment in innovation, and strong governance, Dubai is well-positioned to maintain its upward momentum throughout 2025, reinforcing its role as a global hub for trade, finance, tourism, and innovation.
