DUBAI: Dubai’s economic story in the first quarter of 2025 is, quite frankly, impressive. With a GDP of AED119.7 billion and a solid 4 per cent year-on-year growth, the emirate’s dynamism is undeniably alive across its most important sectors.
What’s fueling this growth?
Leading the charge is the human health and social work sector. It soared by a massive 26 per cent compared to Q1 last year, reaching AED1.9 billion. While this sector only makes up about 1.5 per cent of total GDP, its rapid expansion added 0.3 percentage points to overall growth—a clear sign of evolving priorities and growing demand for wellness services in Dubai.
Resilient real estate and financial services
Real estate, long a cornerstone of Dubai’s economic narrative, posted 7.8 per cent growth to hit AED9 billion. That’s a 7.5 per cent slice of the overall economy and a healthy contribution of 0.6 percentage points to growth. Meanwhile, financial and insurance activities notched a 5.9 per cent gain, swelling to AED16 billion, and now account for 13.4 per cent of Dubai’s GDP—a robust momentum for the sector.
Wholesale and retail trade remains Dubai’s workhorse, contributing a hefty 23 per cent to GDP. This sector hit AED27.5 billion in Q1, a 4.5 per cent increase, giving growth a 1.03 percentage point nudge. Trade’s centrality lies in its role as a hub for goods—whether for businesses, consumers, or capital investment.
Other strategic movers
Accommodation and food services enjoyed a 3.4 per cent bump to AED4.9 billion, keeping up with Dubai’s tourism rebound. Manufacturing crept up by 3.3 per cent to AED8.7 billion, reinforcing Dubai’s competitive edge beyond real estate and commerce. As for transport and storage, it grew by 2 per cent to AED15.7 billion, underscored by the emirate’s vital position in global air travel and logistics.
Information and telecommunications also showed healthy expansion with a 3.2 per cent increase, reaching AED5.3 billion and supporting digital innovation that will power future growth.
Younus Al Nasser, Chief Executive of the Dubai Data and Statistics Establishment at Digital Dubai, said that Dubai’s leadership, through energetic agencies like Digital Dubai and the Dubai Economic Development Corporation, is leveraging data and analytics to inform strategy and keep the engines of economic growth running smoothly.
“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,” Hadi Badri, CEO of Dubai Economic Development Corporation, said.
Both Younus Al Nasser and Hadi Badri have underscored the importance of AI-driven statistics, bold public-private partnerships, and the city’s unwavering focus on the Dubai Economic Agenda D33.
What’s next? The emirate is recalibrating how it collects and analyzes economic data, adopting global best practices to bring even sharper insights for policymakers and businesses alike. With a robust foundation laid in 2024 and clear momentum in early 2025, Dubai seems well-positioned to capitalise on its strengths and fuel new ambitions in a fast-changing world.
