Dubai’s Economy Surges with Strong Q1 2025 Growth

Dubai’s economy showed considerable strength in the initial quarter of 2025, achieving a Gross Domestic Product (GDP) of AED119.7 billion ($32 billion). This figure signifies a notable 4 percent increase compared to the corresponding period in 2024, according to recent reports.

Erik Boekel, the Chief Commercial Officer at DHF Capital, an asset management firm, commented that Dubai’s GDP growth in Q1 2025 stems from a well-considered and varied economic strategy. He highlighted the Dubai Economic Agenda D33, which is designed to double the size of the economy by 2033, as the overarching plan. Proactive measures such as the Next Gen FDI initiative, which aims to establish Dubai as a premier destination for global foreign investment, and visa reforms like the golden and green visas, intended to attract and retain skilled global professionals, support this vision.

The expansion was widespread, with a significant upturn in the health sector, reflecting deliberate investments aimed at enhancing the quality of life to draw in professionals.

The government’s statement indicated that the growth observed in the first quarter of 2025 was propelled by robust performance across a spectrum of key sectors.

Sector-Specific Growth
  • Human Health and Social Work: This sector reached AED1.9 billion in Q1 2025, demonstrating a 26 percent rise compared to Q1 of the previous year. It accounted for 1.5 percent of Dubai’s total GDP.
  • Real Estate: Described as a cornerstone of Dubai’s economic framework, the real estate sector expanded by 7.8 percent in Q1 2025, contributing 7.5 percent to the emirate’s GDP, with a total valuation of AED9 billion.
  • Finance and Insurance: This sector experienced growth of 5.9%, reaching AED16 billion and accounting for 13.4 percent of Dubai’s economy.
  • Accommodation and Food Services: This area saw a 3.4 percent increase, reaching AED4.9 billion, which represents 4.1 percent of the GDP.
  • Information and Telecommunication: The sector grew by 3.2 percent, totaling AED5.3 billion.
  • Wholesale and Retail Trade: This contributed 23 percent to the economy, with a valuation of AED27.5 billion, up from AED26.3 billion in the same period in 2024.
  • Manufacturing: The manufacturing sector grew by 3.3 percent, reaching AED8.7 billion and contributing 7.3 percent to the GDP.
  • Transport and Storage: This sector saw a 2 percent increase, reaching AED15.7 billion, including land, water, and air transport, handling and storage, and postal services. Air transport remains the primary contributor due to its significant output.

In 2024, Dubai’s economy grew by 5.8% at current prices, reaching AED541 billion, and by 3.2 percent at constant prices, totaling AED443 billion.

Hadi Badri, CEO of Dubai Economic Development Corporation, highlighted Dubai’s sustained and varied economic growth as a key factor in its global attractiveness, particularly for businesses, investors, and entrepreneurs seeking stability. He emphasized the importance of public-private collaboration in driving performance through 2024 and into Q1 2025, aligning with the objectives of the Dubai Economic Agenda D33. Badri also mentioned the focus on implementing strategic initiatives and building partnerships to unlock opportunities, foster innovation, and convert ideas into commercial successes.

Boekel noted that Dubai is constructing a future-proof economy based on three main elements: transitioning to a knowledge-based economy emphasizing innovation, leading the Fourth Industrial Revolution via investments in AI and FinTech, and committing to sustainability through the Dubai Clean Energy Strategy 2050.

He added that this strategy combines attracting talent with investments in technology and decarbonization to secure long-term resilience and growth.

The Dubai Chamber of Digital Economy reported supporting 308 digital start-ups in H1 2025, a 39 percent year-over-year increase. The Dubai International Chamber attracted 143 companies to Dubai in H1 2025, a 138 percent increase, including 31 multinational companies, also up by 138 percent.

Dubai’s economic progress is aligned with the UAE’s broader goal of increasing its non-oil foreign trade to AED 4 trillion by 2027.