389 billion dirhams

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1110

According to the statistical center of Dubai, Dubai’s GDP amounted to 389 billion dirhams in 2017. GDP growth in the emirate amounted to 3.2% in 2017. For comparison, in 2016 this indicator was equal to 2.85%.

The growth was provided by the work of strategic sectors, their contribution was 72.2% of the total growth in 2017. The sector of organization of transportation and storage of goods made the biggest contribution to economic growth – 18.5%. At the same time, it exceeded the wholesale and retail trade sector, which traditionally played a key role in the emirate. The share of this sector was 8.3%.

Transportation services

The sector of organization of transportation and storage of goods, which share was 18.5%, made the largest contribution to the overall growth of the economy in 2017. The contribution amounted to 46.1 billion dirhams, for comparison: in 2016 it was 44.1%, which indicates 4.5% growth. The transportation and storage organization includes all land passenger and freight transport, rail and sea transportation, cargo clearance services, warehouse services, postal services, passenger and cargo air transportation, and related services.
The most significant contribution to its growth was made thanks to air transportation.

Accommodation and food services

The housing and food services sector also showed excellent results, reflected in 8% growth and 4.9% share of the contribution to the real GDP of Dubai. Dubai has become one of the favorite places for millions of tourists who are looking for a safe place for entertainment and recreation. In 2017, the number of tourists in Dubai reached almost 16 million, which indicates a 6% increase over the previous year.

Industry

As for the manufacturing industry, its share in Dubai’s real GDP was 9.4%, or 36.8 billion dirham in 2017. In 2016 it was 36.1 billion dirhams. This sector grew by 2%, providing 6.8% of economic growth. Production plays a key role in ensuring the growth and sustainable development of the economy of Dubai.                                                      The government of Dubai attaches great importance to this sector and strives to maintain high rates of its growth. A strategy for the development of Dubai’s industry was created with this purpose.

Wholesale and retail trade

The share of wholesale and retail trade accounts for 26.6% of Dubai’s real GDP. The growth of this sector was 0.9%. The contribution of this sector is estimated at 103.6 billion dirhams. The growth of trade activity is accompanied by the growth of international trade.

The property

The real estate sector is one of the leading sectors in the development of the national economy. In particular, this is the key engine of the Dubai economy, which attracts foreign investors.  According to the statistical center, the share of the real estate sector in the real GDP of Dubai is 7.1%. Its contribution in 2017 was 27.6 billion dirhams, and in 2016 it was 25.7 billion dirhams. Contribution to the overall growth of the economy of Dubai in this sector, which grew by 7.3%, amounted to 17.6%.

Building

In 2017, the construction sector significantly improved its performance in comparison with previous years. At the same time, its contribution, amounting to 24.5 billion dirhams, indicates the growth of the sector by 3.5%, compared with 2016. This sector had an extremely positive impact on the economy, providing 6.3% of Dubai’s real GDP and 7.8% of total growth.

Due to the policy of openness implemented by the Arab Emirates in trade and the economy as a whole, Dubai attracts producers of goods and service providers, the export from the emirate is growing and diversifying. All this allows Dubai to integrate more into global supply chains.

According to the new government forecast published by the Dubai Economic Development Department, the growth of the economy of the emirate as a whole will be 3.5% in 2018 and 3.7% in 2019.

It is expected that the pace of development of the tourism sector of the UAE in the next 10 years will exceed the average pace of development of the global tourism industry.

According to forecasts, by 2027 the contribution of the tourism and travel industry to the GDP of the Arab Emirates will be more than 260 billion dirhams ($ 70.8 billion), which is 12.4% of the country’s total economy.

It is noted that in the next decade more than 600 billion dirhams ($ 163.38 billion) will be invested in the tourism and travel industry of the UAE, which will be directed to airports, railways, ports and hotels.