2023 is turning out to become a significant year for the Dubai economy in terms of unprecedented growth and development. In a recent report released by the IMD World Competitiveness Report in 2023, the UAE ranks among the world’s top 10 most competitive economies. This comes from a rise of two spots than previously.
The Vice President and Prime Minister of UAE and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum took to Twitter to praise the UAE President, His Highness, Sheikh Mohammed bin Zayed Al Nahyan. He also appreciated the efforts made by the people of UAE for their consistent dedication and support for the leadership.
Sheikh Mohammed applauded UAE as a global leader for several indicators such as infrastructure, energy, management, adaptability and more. Thus, this leads to UAE’s economy becoming more competitive than advanced countries such as United Kingdom, France, Japan etc.
From the Pen of Dubai’s Visionaries
The emirate of Dubai welcomed over 8.5 million international visitors by June 2023. Within the same time, the Dubai Financial Market saw a rise of 14% with a record 71 billion AED gain in value. Additionally, Dubai’s real estate sector experienced a growth in demand, with numbers touching AED 285 billion in H1 2023.
The Crown Prince of Dubai and the Chairman of the Executive Council, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, shared his review on a report of the economic progress for Dubai in H1 2023. In his words –
“Our economic accomplishments, as well as our future goals, have been shaped by rigorous strategic planning, the exemplary efforts of our institutions, and our remarkable resilience and adeptness in navigating global challenges and the rapidly evolving economic environment. Such accomplishments are testament to the trust placed by major investors, international institutions, and business leaders in Dubai.”
“Dubai’s economic performance indicators for the first half of 2023 have exceeded expectations. These exceptional results bolster our outlook for record results in the coming months. We look forward to a new, strong beginning in 2024, during which we seek to further enhance the business environment and accelerate economic growth in order to contribute to the goals of Dubai Economic Agenda D33,” he added.
“Dubai further consolidated its status as the world’s leading tourist destination in the first half of 2023. We welcomed more than 8.5 million international visitors in the first six months of the year while Dubai Financial Market (DFM)-listed companies recorded a total market value of AED 652 billion. Dubai also strengthened its status as one of the world’s top three hubs for wealth owners, and one of the fastest-recovering cities since the Covid-19 pandemic. We are very proud of what we have achieved so far this year, and the confidence that we have inspired in the global community,” he concluded.
Dubai H1 2023 performs beyond expectations and sets new standards
Throughout the years, Dubai has proved to be a world leader and the top global destination for tourism and business. It has also positioned itself among the global three most attractive cities for the wealthy. Dubai also happens to be among those rare cities that bounced back economically fastest from the Covid-19 pandemic.
Safe to say, Dubai is acknowledged globally as a wealth magnet which also happens to bolster the aim of the Dubai Economic Agenda (D33) and increase foreign direct investment inflows until it reaches an average of AED 60 billion annually over the next ten years. This goal will have the support of comprehensive efforts to ‘nurture investor confidence and further enhance regulatory and legislative frameworks.’
It is also important here to mention the exceptional performance of the financial market this half-year with the Dubai Financial Market emerging as one the top-performing stock markets globally. Institutional trading in the Dubai Financial Market increased to 57% of trading value while on the other hand foreign trading rose to 48%.
Dubai 2023: A Summary by Numbers
The Dubai Economic Agenda (D33) is expected to boost the economy by billions through over 100 projects in place. Under the tutelage of Sheikh Mohammed, this initiative will surely boost Dubai to the leagues of economically strong cities across the globe and eventually emerge as one of the top four global financial centers like New York, London, Shanghai, or Hong Kong.
Here is a breakdown of some of the key initiative undertaken by the UAE government:
- UAE will work on establishing partnerships with different regions through new trade corridors with 400 cities worldwide with the focus to be primarily Africa and South America.
- D33 is expected to launch business incubators to support approximately 30 private companies with the intent of forming unicorns (valued at more than $ 1 billion)
- To bring in 65,000 additional Emirati nationals into the workspace and integrate more UAE nationals into the local economy.
- Establish Sandbox Dubai to help support start-up culture in UAE. Will lead to position Dubai as an innovation hub for testing new products and tech before they enter mainstream consumer forums.
- The 100 transformative projects will set economic targets of AED 32 trillion (8.7 trillion USD) and foreign trade doubling to AED 25 trillion over the next decade.
- Set out the next phase of Dubai’s 2040 Urban Master Plan and establish the Dubai’s status as a ‘20-minute city’ with new housing projects and reduced commutes.
Top Performing Sectors of Q1 2023
As a matter of exceptional prowess, Dubai’s growth in the first quarter of 2023 was significantly ahead of the growth rates of some of the world’s most developed countries. In fact. Dubai’s GDP in the first quarter of 2023 reached AED 111.3 billion, marking a 2.8% growth. Surpassing average global growth rates for Q1, Dubai’s economy sustained the momentum it achieved in 2022, with an expansion of 4.4 per cent.
Transportation & Storage
Certain sectors of the economy fared better than others. The transportation and storage industries made a distinctive contribution of 48% with a value addition of AED 15.6 billion. These sectors include activities such as land transport for goods and individuals, maritime transport, goods handling and storage, postal services, air transport for goods and people, and other related support activities.
Finance & Insurance
This was followed closely by finance and insurance, which amounted to 15% while trade made up for 10% of the growth, which was a 1.2 % increase in Q1 2023 in comparison to the same period in 2022. The total value addition of the trade sector was around AED 25.5 billion and accounted for 22.9% of the economy.
Air Transport
Air transport took up a major chunk of the transport & storage industry, which is understandable given its sizeable production volume. The sub-sector saw a positive impact in performance due to an increased demand for national carrier services. Passenger numbers saw a 68% growth in the first quarter of 2023 in comparison to the same time previously.
Tourism
Speaking of the tourism sector, the emirate of Dubai received over 4.67 million visitors from all parts of the globe. As per reports shared by Dubai’s Department of Economy and Tourism, this was an 18% increase from last year when 3.97 tourists visited Dubai during the same period.
Food Services & Accommodation
Consequently, the accommodation and food services industry saw a growth of 5.6% with a value addition of around AED 4.5 billion and amounted to 4.1% of the economy. It also contributed to 8% of the overall growth in Q1.
Real Estate
Real Estate is one of the most profitable and visibly emerging industries. The Dubai Data and Statistics Establishment released a report that showed real estate activities grew by 2.4% in the first quarter. Contribution to the economy was 7.4% and 6% to the overall recorded growth. Finally, the other economic sectors experienced a growth of 1.5% in Q1 and combined had a total contribution of 35.5%.
Become a part of Dubai’s Iconic Development
The United Arab Emirates and consequently Dubai, is well on its way to break expectations and emerge as the commercial leader of the Middle East. The UAE government famously applies transformative practices to its administration and infrastructure while providing an investor-friendly business environment and liberal tax incentives. These moves are in place to ensure a steady influx of foreign investment into the country and ultimately, consistent and deliberate growth of the economy.
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