Dubai's Economy Grows by 3.2%
Image: Arif Al Mehairi, Executive Director of DSC
During Q1 of 2017 and by Rise of AED 3.1 Billion
Dubai's economy has achieved a real growth by 3.2% during the first quarter of 2017 compared to the same period last year. Dubai's GDP as per the fixed prices reached AED 98.4 billion, i.e. it hit a rise of AED 3.1 billion.
In a press statement to Al Bayan's Economy, Arif Al Muhairi the Executive Director of Dubai Statistics Center "DSC", said, "The diversification of Dubai's economy has been a positive driver of this growth surpassing global economic volatility, slowing growth in most developed economies and critical regional economic conditions."
Most of the activities contributed in various degrees to growth took place in the first quarter of this year. This economic performance was the result of constructive government strategies aimed at achieving diversity in all productive sectors," said he.
He pointed out, "The activity of wholesale and retail trade are on the lead in terms of contribution to GDP by 24.8%. they are followed by transport and warehousing activities by 12.3%. As for the financial and insurance activity, it was ranked third by a contribution percentage of 11.8% followed by manufacturing industry which is accounted for 9.4%. The remaining sectors collectively accounted for 41.7% of the total GDP of the Emirate.
"Trade" in the Forefront
Al Muhairi revealed that the wholesale and retail trade activity continued to be in the forefront of other activities during the first quarter of 2017 in terms of contribution to GDP by 24.8%. By this rate, trade activity has already achieved an added value of AED 24.4 billion by a growth rate of 1.3% compared to first quarter of 2016. Indeed, such a result pushed the overall economy to grew by 0.3 points.
"The growth of trade activity is accompanied by the government adopting supportive and stimulating policies of trade openness along with providing high level logistics services," said he.
Transport and Storage Most Influential
Transport and storage is accounted for the largest share of the real growth of the same period by pushing the overall growth by 0.6 points. This sector achieved an added value estimated by AED 12.1 billion in the first quarter of 2017 and by this it contributed by 12.3% of the overall GDP. Indeed, this activity is considered one of the most dynamic services that has a direct impact on the remaining economic sectors.
Based on this fact, the government has paid particular attention to facilitating administrative and legal procedures. It has also upgraded and developed the infrastructure related to it to encouraging investment in this sector.
"Accommodation and Restaurants" Grew by 8.8%
Al Muhairi explained that the activities of accommodation and restaurants services grew by 8.8% during the first quarter of 2017. The added value of this activity has been amounted to AED 5.5 billion and by this they contributed to Dubai's overall GDP by 5.6%. this activity pushed the growth rate by 0.5 points out of the total achieved growth, and so reflecting the vitality of this activity and its impact on other activities.
He added, "This growth is attributed to the significant development in the infrastructure of this sector, in terms of hotels, resorts and hotel apartments, or the significant increase in the number and quality of events attracting visitors to Dubai."
Manufacturing Industries Grew by 3.9%
DSC estimates of Dubai's GDP at fixed prices showed that manufacturing activity, which is looked at as one of the most important economic activities due to its contribution to Dubai's GDP, witnessed a stable level of its growth by 3.9% with an added value of nearly AED 9.3 billion during the first quarter of 2017. By this rate, it contributes to Dubai's GDP by 9.4% driving the overall growth by 0.4 points.
2.7% Growth of Financial and Insurance Activities
Moreover, DSC's estimates indicated that financial and insurance activities, which are considered one of the most important economic activities in Dubai, achieved a growth rate of 2.7% with an added value of AED 11.6 billion during the first quarter of this year. This represents 11.8% of the total GDP of Dubai pushing the total growth positively by 0.3 points during the first quarter of 2017.
Real Estates Grew by 7.2%
The GDP estimates revealed that the real estate activity demonstrated a rate of growth by 7.2% in the first quarter of 2017 contributing by 7% to Dubai's GDP. This rate resulted in pushing the economy to grow by 0.5 points. Real estate activity is one of the most significant sectors driving Dubai's economy through its positive impact on accelerating the economic growth. During the past period, the real estate activity continued to grow due to the government's constructive efforts that contributed significantly to the activity's positive performance and reducing the negative impact of market fluctuations