Dubai’s economic growth outpaces international rivals in 2023
Dubai’s economy continues to demonstrate its resilience in the wake of the COVID-19 pandemic, with the emirate’s gross domestic product (GDP) growing by 2.8% in the first quarter of 2023, eclipsing rates reported in some of the world’s largest economies.
The result, which bodes well for the city’s goal of matching or exceeding the 4.4% growth rate reported in FY2022, places it among the world’s best-performing economies in Q1, 2023.
By comparison, the European Union’s economy grew by just 1.1% during the first quarter, while the United States posted growth of 1.8%. Meanwhile, the 38 leading economies that comprise the Organisation for Economic Cooperation and Development (OECD) reported average growth of 1.6% during the same period.
Dubai’s economy contracted by 11.7% in 2020 at the height of the pandemic but rebounded strongly to expand by 5.7% in 2021.
“The continued high growth in the first quarter of the year is yet another testament to Dubai’s strong fundamentals, sustainability and resilience and its capacity to constantly create fresh pathways for enterprise and innovation to flourish," said Sheikh Hamdan bin Mohammed Al Maktoum, Crown Prince of Dubai and chairman of The Executive Council.
"Supported by its outstanding investment environment, robust infrastructure and business-enabling ecosystem, Dubai continues to outpace some of the world’s leading economies."
Hotel investors benefit from strong growth
In positive news for hotel investors, Dubai’s accommodation and food services sector grew 5.6% YoY in the first quarter, adding US$1.23 billion to the economy. It even outpaced the emirate’s booming real estate sector, which grew by 2.4% during the same period.
Dubai’s tourism growth continues to impress, with the emirate welcoming 8.55 million international arrivals in the first half of 2023, beating the 8.36 million reported during the same period in 2019, prior to the COVID-19 pandemic.
The result places Dubai well on track to eclipse the record 16.73 million visitor arrivals it welcomed in 2019.