DUBAI – Dubai’s economy continued to maintain strong upward momentum in the first half of 2025, surpassing projections and consolidating its position as one of the world’s most vibrant and competitive urban economies.

The emirate’s gross domestic product (GDP) grew 4.4% to reach Dh241 billion in the first half of the year. In the second quarter alone, GDP climbed 4.7% to Dh122 billion.

This robust performance was driven by exceptional results across key sectors that continue to underpin Dubai’s sustainable growth and economic resilience.

His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai, said that Dubai’s economic performance reflects the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, whose leadership has created a model of sustainable growth defined by innovation, excellence, and global competitiveness.

He emphasised that each percentage point of growth is the outcome of collaboration among stakeholders, disciplined execution of strategies, and the emirate’s ability to turn global challenges into opportunities. The performance also reaffirms progress under the Dubai Economic Agenda, D33, which seeks to double the size of Dubai’s economy within a decade and position it among the world’s top three urban economies.

What drove Dubai’s growth?

The human health and social work activities sector recorded the highest growth rate in the first half of 2025, expanding 20% and contributing 1.4% to total GDP. This sector reached Dh3.3 billion in value added, up from Dh2.7 billion in the same period of 2024. In the second quarter alone, it grew by 12.8% to Dh1.4 billion.

The construction sector also maintained strong momentum, growing 8.5% year-on-year and contributing 6.7% to GDP. The sector’s value added reached Dh16 billion in H1 2025, supported by increased government spending on infrastructure and development projects. In Q2 2025, it expanded by 14.9%, contributing 6.2% to GDP.

The real estate activities sector expanded 7% over the first half of the year, contributing 8.2% to GDP. The total value added rose to Dh19.8 billion, up from Dh18.5 billion in H1 2024. In Q2 2025 alone, real estate activities grew 6.4% to Dh10.8 billion, contributing 8.9% to quarterly GDP. This growth was supported by a 40% increase in real estate sales during the first half of 2025.

How did other sectors perform?

Financial and insurance activities posted a growth rate of 7.7% in Q2 2025, reaching Dh14.2 billion compared to Dh13.2 billion a year earlier. This sector contributed 11.6% to quarterly GDP. Over the first half of 2025, it achieved 6.7% growth, contributing 12.5% to GDP, with total value added amounting to Dh30.2 billion.

The information and communications sector also maintained a positive trajectory, expanding 7.4% in Q2 2025 to Dh5.5 billion and contributing 4.5% to GDP. In the first half, it recorded 5.3% growth, with a total value added of Dh10.8 billion, up from Dh10.2 billion a year earlier.

The accommodation and food services sector grew 6.9% in Q2 2025 to Dh3.8 billion, contributing 3.1% to GDP. Over the first half, it expanded 4.9% to reach Dh8.7 billion, compared to Dh8.3 billion in H1 2024. This improvement was linked to a rise in international visitors, which totalled 9.88 million during the first six months of 2025 – a 6% year-on-year increase.

Wholesale and retail trade, the largest contributor to Dubai’s GDP, continued to display steady growth. The sector reached Dh29.9 billion in Q2 2025, rising 4.3%. In the first half, it grew 4.4% and contributed 23.8% to overall GDP, amounting to Dh57.4 billion in value added.

Other sectors collectively recorded 1.8% growth during the first half of 2025, reflecting consistent progress across Dubai’s diversified economic base.

D33 agenda

Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism (DET), said Dubai’s first-half GDP performance reflects the emirate’s ability to continually adapt to global dynamics while advancing long-term objectives under the D33 agenda. He noted that Dubai’s success is rooted in its strong public-private partnerships, characterised by shared ambition and strategic alignment.

According to Hamad Obaid Al Mansoori, Director General of Digital Dubai, the results underscore Dubai’s ability to sustain competitiveness through digital transformation and technological innovation. He highlighted that the emirate’s progress demonstrates the strength of its digital economy and its position as a global hub for business and investment.

Younus Al Nasser, CEO of the Dubai Data and Statistics Establishment, noted that Dubai’s achievements stem from effective collaboration between government entities and the private sector, powered by data-driven policymaking. The Establishment continues to enhance data accuracy and reliability through recalibration of GDP time series and other key indicators, aligning with international standards to reflect the emirate’s evolving economic landscape.

Hadi Badri, CEO of the Dubai Economic Development Corporation (DEDC), attributed the robust expansion to Dubai’s innovation-friendly policies and the creation of a business ecosystem designed for agility and scale. He said the DEDC aims to build on this trajectory by broadening diversification and reinforcing Dubai’s position among the world’s most dynamic metropolitan economies.

The second quarter of 2025 marked another milestone in Dubai’s consistent growth cycle. The quarter saw strong expansion in nearly every major sector, underscoring the emirate’s resilience amid global headwinds. The health, construction, and real estate sectors delivered double-digit or near double-digit growth, while finance, ICT, and tourism-related activities sustained steady momentum.

The cumulative GDP of Dh241 billion for the first half of 2025 signals that Dubai is on track to meet and potentially exceed its full-year growth targets. It also demonstrates that the emirate’s economic structure has become more balanced – with diverse contributions from trade, finance, technology, and hospitality, in addition to real estate and construction.

What’s next for Dubai’s economy?

Looking ahead, Dubai’s leadership has reaffirmed commitment to initiatives that strengthen its standing as a global economic hub. Continued implementation of the D33 agenda will be central to this drive, with projects focused on innovation, digital transformation, talent attraction, and knowledge-based industries.

Sustained investment in infrastructure and smart services will further enhance Dubai’s business environment and competitiveness. The ongoing recalibration of GDP and other indicators by the Dubai Data and Statistics Establishment will provide more granular insights into emerging trends, ensuring evidence-based policymaking and transparency in economic reporting.