Dubai economy grows 4.4% to Dh241 billion in first half of 2025

10/11/2025 02:14 AST

Dubai's economy maintained its strong upward momentum in the first half of 2025, with the emirate's gross domestic product (GDP) growing 4.4 per cent year-on-year to Dh241 billion, official data from Dubai Data and Statistics Establishment (Digital Dubai) showed.

In the second quarter alone, the economy expanded 4.7 per cent to Dh122 billion, underscoring the emirate's sustained growth trajectory and its position as one of the world's most dynamic and diversified urban economies.

The results build on a robust start to the year and reinforce Dubai's progress towards achieving the Dubai Economic Agenda (D33), which aims to double the size of the economy over the next decade and rank Dubai among the world's top three global cities.

Unique growth model
Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai, said the strong GDP growth "reflects the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai," whose leadership "has created a unique model of sustainable growth defined by innovation, excellence, and global competitiveness."

"Each percentage point of growth is also the outcome of strong collaboration between diverse stakeholders, disciplined execution of strategies, and the emirate's ability to turn global challenges into new possibilities for progress," Sheikh Hamdan added. "The high GDP growth in the first half of the year reaffirms the progress of the D33 Agenda, which continues to translate our vision into measurable results."

He reaffirmed Dubai's commitment to advancing initiatives and forging new partnerships that "strengthen its position as a leading global economic hub."

Health, construction, property
The human health and social work activities sector recorded the highest growth in the first half of 2025, expanding 20 per cent and contributing 1.4 per cent to overall GDP growth. The construction sector followed closely, posting 8.5 per cent growth and contributing 6.7 per cent to GDP, supported by government infrastructure projects.

The real estate sector grew 7 per cent in the first six months, contributing 8.2 per cent to GDP with a total value added of Dh19.8 billion, up from Dh18.5 billion a year earlier. This was driven by a 40 per cent increase in property sales, reflecting ongoing investor confidence and strong end-user demand.

Meanwhile, the financial and insurance sector expanded 6.7 per cent during H1 2025, contributing 12.5 per cent to GDP, with total value added reaching Dh30.2 billion.

The transportation and storage sector grew 5.3 per cent in H1 to Dh10.8 billion, bolstered by Dubai's thriving logistics ecosystem. The accommodation and food services sector also advanced 4.9 per cent, contributing 3.6 per cent to GDP, supported by a 6 per cent increase in international visitors - 9.88 million in the first half of the year.

The wholesale and retail trade sector, Dubai's largest economic contributor, grew 4.4 per cent to Dh57.4 billion, accounting for 23.8 per cent of total GDP.

Resilient, adaptive, and data-driven
Helal Saeed Almarri, Director-General of the Dubai Department of Economy and Tourism (DET), said the first-half GDP performance "reflects the strong vision and leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum" and Dubai's ability to adapt to global shifts while advancing D33's long-term goals.

He noted that the results highlight the strength of Dubai's public-private partnerships, "characterised by shared ambition and strategic alignment."

"Dubai's economy continues to demonstrate competitiveness, resilience, and agility across its bellwether sectors and new high-growth horizons," Almarri said. "We remain focused on building a future-ready, knowledge-driven economy that sustains momentum and yields opportunities for investment and innovation."

Technology, data at core
Hamad Obaid Al Mansoori, Director-General of Digital Dubai, said the emirate's performance "demonstrates its ability to adapt to global changes while sustaining long-term competitiveness."

He added that Dubai's progress under the D33 Agenda "aims to double the size of the economy within the next decade and position the emirate among the world's top three urban economies."

"Guided by our visionary leadership, Dubai has built a solid foundation for sustainable development," he said. "At Digital Dubai, we take pride in driving this journey by accelerating digital transformation and enhancing operational efficiency to ensure sustained growth and reinforce Dubai's position as a global leader in digital innovation."

Younus Al Nasser, CEO of the Dubai Data and Statistics Establishment, added that the collaboration between government and private sectors continues to shape "a city powered by real-time data" and that current recalibration of GDP time series will further improve accuracy and transparency of economic indicators.

Diversified growth continues
Hadi Badri, CEO of the Dubai Economic Development Corporation (DEDC), said the robust expansion in health, construction, real estate, and financial services "is the direct result of a business ecosystem built for agility and scale."

"The growth we've seen reflects the effectiveness of Dubai's innovation-friendly policies that continue to enhance competitiveness and attract high-value investment," he said.

Hadi Badri added that DEDC will focus on "broadening diversification and strengthening Dubai's position among the world's most dynamic metropolitan economies."

Strong outlook for H2
Dubai's data agency noted that the emirate's economic recalibration - using improved administrative and field data - will give a more accurate picture of sector performance going forward.

With core sectors like trade, tourism, real estate, and finance maintaining momentum, and newer industries such as health and technology posting double-digit growth, Dubai's outlook for the second half of 2025 remains solid.

As Sheikh Hamdan highlighted, the results reaffirm that Dubai's model of growth, grounded in innovation and long-term planning, continues to deliver measurable results - turning vision into reality.

Gulfnews