Dubai’s real gross domestic product (GDP) reached AED389 billion ($105.9 billion) in 2017 compared to AED379 billion ($103.1 billion) in 2016, Dubai Statistics Center (DSC) revealed.
The growth was driven by the performance of the strategic sectors, which contributed to 72.2 percent of the total economic growth achieved in 2017.
According to DSC, the transportation and storage sector was the biggest contributor to total economic growth at 18.5 percent, surpassing wholesale and retail trade, traditionally the largest sector in the emirate, which contributed 8.3 percent.
Transportation and storage includes all land transportation of individuals and goods, rail transportation, water transport, handling and storage activities, postal activities and air transportation of individuals and goods.
Executive Director of the DSC Arif al-Mehairi explained that Dubai’s achievement for this growth in the light of the regional and global economic challenges confirms the flexibility of the economy of the emirate supported by the policies and legislation developed, enabling the business sector to adapt and deal with various external economic challenges.
“Wholesale and retail trade activity contributed 26.6 percent of Dubai’s real GDP and grew at a rate of 0.9 percent,” said Mehairi. “This contribution was worth AED103.6 billion ($28.8 billion).”
“Growth in wholesale and retail trade activity was accompanied by growth in foreign trade,” he added.
“Total imports and re-exports grew by 2.2 percent in 2017 compared to 2016. Growth in total imports and re-exports could be attributed to a growth in industrial inputs and capital goods, both of which contributed to the growth of foreign trade by 1.8 and 1.6 percent respectively,” Mehairi further noted.
The transportation and storage sector added a value of AED46.1 billion compared to AED44.1 billion in 2016, a growth of 4.5 percent, Mehairi said.
“Air transportation contributes the most to the transportation and storage sector, given its diversified services and support for other sectors,” he added.
With regards to manufacturing activity, Mehairi said that it contributed to 9.4 percent of Dubai’s real GDP with a total value of AED36.8 billion in 2017 compared to AED36.1 billion in 2016. This sector, which grew by two percent contributed 6.8 percent to economic growth.
Moreover, real estate is one of the sectors that drive the economy in general. It is a key driver of Dubai’s economy as it attracts substantial foreign investment. Dubai boasts advanced infrastructure and logistics services apart from a legislative and administrative system that promotes real estate investment in Dubai.
The real estate sector’s performance is measured based on rental transactions and margins earned from sale and purchase transactions and commissions generated through real estate brokerage.
Mehairi said that the real estate sector accounted for 7.1 percent of Dubai’s real GDP contributing AED27.6 billion in 2017 compared to AED25.7 billion in 2016. The sector, which grew by 7.3 percent contributed 17.6 percent to Dubai’s total growth.
