Sectors’ growths lift Dubai GDP

Transportation and storage was the top contributor to the total growth achieved in 2017

According to Dubai Statistics Centre (DSC), Dubai’s growth was fuelled by the performance of strategic sectors that accounted for 72.2 per cent of total growth in 2017.

Transportation: The transportation and storage sector was the top contributor to the total growth achieved in 2017 with a share of 18.5 per cent. It added a value of Dh46.1 billion compared to Dh44.1 billion in 2016, a growth of 4.5 per cent, said Arif Al Mehairi, Executive Director of DSC. 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 and supporting activities.

“Air transportation contributes the most to the transportation and storage sector, given its diversified services and support for other sectors,” Al Mehairi added. “Data shows that the two national air carriers Emirates and Fly Dubai account for the largest share of passengers travelling via Dubai airports.”

Industry: Al Mehairi said that manufacturing contributed 9.4 per cent of Dubai’s real GDP with a total value of Dh36.8 billion in 2017 compared to Dh36.1 billion in 2016. This sector, which grew by 2 per cent contributed 6.8 per cent to economic growth. “Manufacturing plays a key role in advancing growth and sustainability in Dubai’s economy. The Dubai government has attached paramount importance to this sector through the Dubai Industrial Strategy to ensure high levels of sustainable growth.” He said certain industries in Dubai are among the world’s leading and most competitive.

Real estate: This sector 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 by rental transactions and margins earned from sale and purchase transactions and commissions generated through real estate brokerage. Al Mehairi said the sector accounted for 7.1 per cent of Dubai’s real GDP contributing Dh27.6 billion in 2017 compared to Dh25.7 billion in 2016. The sector, which grew by 7.3 per cent contributed 17.6 per cent to Dubai’s total growth.

Construction: In 2017, the construction sector showed significant improvement compared to previous years, contributing Dh24.5 billion, which represents a growth of 3.5 per cent compared to 2016. The sector had a tremendously positive impact on the economy contributing 6.3 per cent of Dubai’s real GDP and 7.8 per cent of total growth. The Dubai government’s spending on infrastructure projects, which rose by almost 27 per cent, had a positive impact on the sector’s performance in the emirate.

Accommodation and food service activities: This sector witnessed a remarkable step-up in its performance with a contribution of 4.9 per cent to Dubai’s real GDP and a growth rate of 8 per cent. It also contributed 0.4 percentage points to total economic growth.