Dubai’s economy continues to demonstrate strong resilience and sustainable growth, recording a 4% increase in GDP during the first quarter of 2025 compared to the same period in 2024. The emirate’s GDP rose to AED 119.7 billion, signaling the effectiveness of Dubai’s strategic vision and the synergy across its key economic sectors.
According to the Dubai Data and Statistics Establishment, this growth was driven by a broad spectrum of sectors. Human health and social work activities led the way with a remarkable 26% growth rate, followed by real estate at 7.8%, financial services and insurance at 5.9%, hospitality and food services at 3.4%, and transport and storage at 2%.
Momentum from 2024 Fuels Early 2025 Gains
The first quarter’s performance builds on the economic momentum established in 2024, during which Dubai’s GDP expanded by 5.8% at current prices, reaching AED 541 billion. At constant prices, the growth was 3.2%, bringing the GDP to AED 443 billion. Key sectors such as trade, real estate, financial services, transport, and industry were responsible for nearly 78% of the growth during the year.
Data-Driven Development
Younus Al Nasser, CEO of the Dubai Data and Statistics Establishment, emphasized the importance of data in shaping future strategies. “In the age of digital transformation and AI, data reflects the economic reality and helps anticipate future trends. The Q1 2025 results offer a clear picture of Dubai’s progress and support informed decision-making for policymakers and stakeholders.”
He also highlighted the institution’s commitment to collaboration with various entities to ensure data accessibility and alignment with the government’s strategic objectives.
Strategic Vision and Global Appeal
Hadi Badri, CEO of Dubai Economic Development Corporation, highlighted Dubai’s ongoing efforts to foster a sustainable and diverse economy. “Dubai remains a magnet for entrepreneurs and investors seeking transparency and stability. Our performance from 2024 into Q1 2025 reflects the continuing impact of the Dubai Economic Agenda (D33), fueled by the leadership’s foresight and strong public-private partnerships.”
Badri noted that the focus going forward will be on executing more strategic initiatives and forging local and global partnerships to fuel innovation and expand economic opportunities.
Sectoral Highlights
Healthcare and Social Services
This sector emerged as the fastest-growing, achieving AED 1.9 billion in value during Q1 2025, a 26% increase year-over-year. It contributed 1.5% to the overall GDP and added 0.3 percentage points to growth.
Real Estate
A cornerstone of Dubai’s economy, the real estate sector grew by 7.8%, contributing 7.5% to the GDP with a value of AED 9.0 billion. It was responsible for 0.6 percentage points of overall growth.
Finance and Insurance
The financial sector recorded a 5.9% growth, with its value rising from AED 15.12 billion to AED 16 billion. It made up 13.4% of GDP and contributed 0.8 points to growth.
Wholesale and Retail Trade
Accounting for 23% of GDP, trade remains a vital pillar. It recorded AED 27.5 billion in Q1 2025, up from AED 26.3 billion the previous year—an increase of 4.5%, adding 1.03 percentage points to GDP growth.
Manufacturing and Industry
The manufacturing sector saw a 3.3% increase in output, reaching AED 8.7 billion. It represented 7.3% of GDP and contributed 0.24 points to the overall growth.
Transport and Storage
This sector posted a 2% rise in value, reaching AED 15.7 billion. It contributed 13% to the GDP and added 0.27 points to overall growth. Within this, air transport remained the dominant sub-sector due to its high production volume.
Additionally, various support activities within transport, including logistics and postal services, grew by 1.9%, contributing an extra 0.5 percentage points to GDP growth.
