Dubai’s economy posted a resilient start to 2025, expanding 4% quarter-on-quarter in Q1, as government data show broad-based momentum across a range of strategic sectors. The quarter, which brought Dubai’s GDP to 119.7 billion dirhams, underscored the emirate’s continued diversification and the strength of sectors that drive investment, employment, and long-term growth. Notably, human health and social work activities led the charge with a substantial 26% year-on-year rise to 1.9 billion dirhams, while real estate grew 7.8% to 9.0 billion dirhams, and financial and insurance activities climbed 5.9% to 16.0 billion dirhams. Other pillars of growth included accommodation and food services, transport and storage, wholesale and retail trade, manufacturing, and information and communications. Together, these performances helped sustain Dubai’s diversified growth momentum after a robust 2024, when the economy expanded by 5.8%.
Younus Al Nasser, the chief executive of the Dubai Data & Statistics Establishment, framed the Q1 results as a reliable basis for policymaking, research, and business decisions, noting that they reflect measurable progress in the emirate’s economy. He emphasized that the data provide a solid foundation for informed decision-making among policymakers, researchers, and businesses seeking to understand the trajectory of Dubai’s economic development. Hadi Badri, CEO of the Dubai Economic Development Corporation (DEDC), highlighted Dubai’s ongoing appeal to investors and entrepreneurs, stressing that public-private collaboration and targeted strategic initiatives are key drivers of sustained economic performance. Badri added that Dubai’s performance through 2024 and into the first quarter of 2025 demonstrates momentum toward the Dubai Economic Agenda D33’s goals, reinforcing confidence in the emirate’s long-term growth plan.
At a glance: Dubai GDP growth and key sector performance
- Human Health and social work: GDP 1.9 billion dirhams; growth 2%; share of total GDP 1.5%; contribution to growth 0.3 percentage points
- Real estate: GDP 9.0 billion dirhams; growth 7.8%; share of total GDP 7.5%; contribution to growth 0.6 percentage points
- Financial and insurance: GDP 16.0 billion dirhams; growth 5.9%; share of total GDP 13.4%; contribution to growth 0.8 percentage points
- Accommodation and food services: GDP 4.9 billion dirhams; growth 3.4%; share of total GDP 4.1%; contribution to growth 0.14 percentage points
- Information and communications: GDP 5.3 billion dirhams; growth 3.2%; share of total GDP 4.4%; contribution to growth 0.14 percentage points
- Wholesale and retail trade: GDP 27.5 billion dirhams; growth 4.5%; share of total GDP 23%; contribution to growth 1.03 percentage points
- Manufacturing: GDP 8.7 billion dirhams; growth 3.3%; share of total GDP 7.3%; contribution to growth 0.24 percentage points
- Transport and storage: GDP 15.7 billion dirhams; growth 2%; share of total GDP 13%; contribution to growth 0.27 percentage points
- Other activities: growth adverse at -1.9%; share of total GDP 2.6%; contribution to growth 0.5 percentage points
Section 1: Executive overview of Q1 2025 GDP performance
Dubai’s quarter-on-quarter expansion in Q1 2025 illustrates a resilient economy that leverages a wide base of sectors to sustain growth. The headline 4% QoQ increase is underpinned by multiple industries delivering tangible value, with real estate and financial services standing out as major engines of the expansion. The sector-by-sector mix reveals a broad-based recovery that not only supports today’s output but also reinforces Dubai’s long-run growth trajectory. The data confirm that Dubai’s strategy of fostering a diversified economy—anchored by trade, logistics, finance, tourism-related services, and knowledge-driven sectors—continues to yield positive results even as global conditions fluctuate.
The performance across sectors also reflects careful policy support and market conditions that encourage investment and business activity. Real estate’s notable growth, together with robust financial and insurance activity, suggests continued investor confidence and a healthy property market. At the same time, the significant uplift in health and social work activities signals ongoing public and private investment in human capital and welfare services. The hospitality sector’s positive contribution, alongside wholesale and retail trade, indicates that consumer demand and tourism-related activities remained resilient in the opening quarter. Manufacturing and information and communications further contributed to the diversified growth pattern, highlighting Dubai’s progress in value-added activities and digital services.
Officials emphasize that the Q1 numbers provide a clear picture of the emirate’s path toward the Dubai Economic Agenda D33. The momentum observed through early 2025 aligns with a longer-term objective of sustaining growth through structural reforms, strategic public-private initiatives, and continued investment in infrastructure, human capital, and knowledge-based industries. The overall message from the data is one of steady expansion underpinned by a diverse mix of sectors that together reduce reliance on any single activity and bolster resilience against external shocks.
Section 2: Sector-by-sector performance and drivers
This section provides a detailed look at the sectoral contributions to Q1 2025 GDP, with a focus on drivers, relative importance, and the implications for Dubai’s growth model. For each sector, the discussion includes the latest figures, the direction of change, and how these movements fit into the broader economic narrative.
Human health and social work
The health and social work sector led growth in Q1 2025, rising by 26% year-on-year to reach 1.9 billion dirhams. This remarkable expansion points to intensified investment in healthcare services, medicines, and social welfare programs, as well as potential productivity gains within the sector. The sizable YoY increase underscores a shift toward enhanced health infrastructure, broader access to care, and possibly higher expenditure on social services that support residents and the workforce. While the sector’s absolute GDP contribution remains smaller relative to heavyweights like real estate or wholesale and retail trade, its outsized growth rate signals a strategic push to strengthen Dubai’s social and health ecosystems. This trend is consistent with broader policy aims to improve quality of life, attract international talent, and safeguard the well-being of the population, all of which contribute to a more sustainable and resilient economy.
Real estate
Real estate registered a robust performance, expanding 7.8% to 9.0 billion dirhams in Q1 2025. The sector’s growth share remains substantial, reflecting ongoing demand for housing, commercial property, and related services. A healthy real estate market supports construction activity, investment flows, and job creation across ancillary services such as property management, legal and consultancy work, financing, and urban development. The double-digit confidence in property markets often correlates with broader economic activity, as real estate development can stimulate ancillary sectors and contribute to a network effect that reinforces Dubai’s position as a global business hub. In the context of Dubai’s long-term growth strategy, the real estate sector’s performance signals continued confidence in the city’s development trajectory and its appeal to both domestic and international investors.
Financial and insurance
The financial and insurance sector advanced 5.9% year-on-year, reaching 16.0 billion dirhams, and accounted for 13.4% of total GDP. With a contribution of 0.8 percentage points to growth, this sector remains central to Dubai’s economic as well as financial system resilience. The ongoing expansion reflects activities across banking, asset management, insurance services, and associated financial-market operations. A robust financial services environment supports business investment, facilitates trade and enterprise financing, and enhances the emirate’s capacity to channel capital toward innovation and productivity-enhancing projects. The sector’s performance also signals confidence in regulatory frameworks, market depth, and the efficacy of public-private collaboration in sustaining financial-system stability and growth.
Accommodation and food services
Accommodation and food services rose by 3.4% to 4.9 billion dirhams, contributing 0.14 percentage points to quarterly growth. This sector’s trajectory suggests resilience in tourism and hospitality, which are critical to Dubai’s economic model given the city’s global appeal and role as a destination for business, leisure, and events. Seasonal patterns and event-driven demand can influence quarterly results, yet the positive movement in Q1 indicates that hospitality services remained robust in the early part of 2025. The sector’s ongoing development supports employment in service industries, retail spending, and the broader ecosystem of attractions, entertainment, and culinary offerings that characterize Dubai’s visitor experience.
Information and communications
Information and communications (ICT) advanced 3.2% to 5.3 billion dirhams, making a 0.14 percentage point contribution to growth. This sector’s growth highlights Dubai’s push toward digitalization, connectivity, and the deployment of advanced communication technologies across businesses and government services. ICT activities underpin improved business processes, data-driven decision-making, and the expansion of knowledge-intensive industries. The contribution from ICT aligns with Dubai’s strategy to cultivate a modern economy that combines physical infrastructure with digital platforms, delivering productivity gains and new revenue streams for firms and public sector entities alike.
Wholesale and retail trade
Wholesale and retail trade grew 4.5% to 27.5 billion dirhams, contributing 1.03 percentage points to growth and representing a sizable share of Dubai’s GDP (approximately 23%). This sector’s performance reflects sustained consumer demand, ongoing trade activity, and the efficiency gains from logistics and distribution networks that connect Dubai to regional and global markets. As a cornerstone of the emirate’s commercial landscape, wholesale and retail trade benefits from a diversified purchasing base and a dynamic network of businesses, ranging from traditional merchants to modern retail platforms. The sector’s strength also signals healthy business-to-consumer activity, non-oil diversification, and the vitality of Dubai as a regional commercial hub.
Manufacturing
Manufacturing expanded 3.3% to 8.7 billion dirhams, with a 0.24 percentage point contribution to growth. The manufacturing sector’s gains reflect capacity utilization, investment in industrial facilities, and the production of goods that feed domestic and export markets. While growth is moderate relative to some other sectors, manufacturing remains essential for Dubai’s economic resilience, value-added production, and supply-chain diversification. The sector’s performance supports job creation and the development of specialized clusters that can drive productivity improvements and innovation within the emirate’s industrial base.
Transport and storage
Transport and storage rose 2% to 15.7 billion dirhams, contributing 0.27 percentage points to growth. This sector’s trajectory underscores Dubai’s status as a global logistics hub, with strong activity in freight movement, warehousing, and related services that enable long-distance trade and regional distribution. The transport and storage sector benefits from well-developed port and airport facilities, advanced logistics infrastructure, and a business environment that supports trade facilitation. The growth in this sector reinforces the emirate’s role in connecting markets, supporting supply chains, and enabling efficient movement of goods and people.
Other activities
Other activities contracted by 1.9% year-on-year but still contributed 0.5 percentage points to quarterly growth, reflecting complex dynamics within a broad basket of smaller industries. The negative growth in this category did not derail overall progress, as the positive contributions from larger sectors outweighed the decline. The sector’s performance highlights the importance of understanding cross-cutting factors, such as structural adjustments, seasonality, and the performance of specialized activities that may experience volatility. Even with a negative YoY change, the sector’s contribution to quarterly growth demonstrates the nuanced balance of Dubai’s diverse economic activities.
Section 3: Policy implications and investment climate
The Q1 2025 results carry meaningful implications for policy and investment strategy in Dubai. The strong contributions from real estate, financial services, and wholesale and retail trade point to ongoing investor confidence and a favorable business environment that supports confidence in growth prospects. Policy makers may view these results as validation of the emirate’s diversified growth approach, where multiple sectors reinforce each other to create a more resilient economy.
Public-private collaboration appears to be a central theme underpinning sustained performance, with officials emphasizing strategic initiatives aimed at sustaining momentum toward the Dubai Economic Agenda D33. The emphasis on collaboration suggests that both government entities and private sector players will continue to align on investment projects, regulatory reforms, and incentives that facilitate business expansion, talent development, and innovation. The data reinforce the idea that Dubai is pursuing a well-calibrated growth model that leverages infrastructure, policy stability, and competitive advantages in trade, logistics, and services to attract capital and talent.
Investors can draw convenience from the breadth of sectoral strength, including robust activity in real estate and financial services, which frequently attract international investment and financing support. The growth in health and social services signals potential opportunities for public-private partnerships in healthcare, welfare programs, and related sectors that can deliver long-term demographic and productivity benefits. Dubai’s continued emphasis on D33 goals signals a long-run framework for sustainable development, diversification, and competitiveness in a global economy characterized by volatility.
From a strategic standpoint, sector performance highlights the importance of maintaining a balanced portfolio of growth drivers. Government programs and private-sector investments in infrastructure, digital transformation, and human capital development should remain central to policy discussions. Measures that reduce regulatory friction, improve access to financing, and support the creation of enabling environments for innovation will likely be influential in maintaining momentum beyond the headline quarterly numbers. In sum, the Q1 2025 data reinforce a favorable climate for continued investment in Dubai’s diversified economy, anchored by strong performances across real estate, finance, trade, and services.
Section 4: Outlook, risks, and sustained momentum
Looking ahead, the Q1 2025 results provide a baseline for projections while highlighting vulnerabilities and opportunities. The growth trajectory appears stable, aided by a diversified sector mix and ongoing development initiatives designed to support a resilient economy. However, the emirate faces possible external and domestic risks, including cyclical shifts in global trade, commodity price volatility, and potential shifts in tourism demand. The robustness of Dubai’s economy will rely on sustaining investment, advancing structural reforms, and maintaining the competitiveness of its business environment.
Dubai’s leadership has long prioritized a strategic agenda that combines asset development with regulatory clarity and a culture of public-private cooperation. The D33 framework remains a focal point for sustaining long-run growth, and the Q1 results demonstrate that the emirate is progressing toward these targets. The data also suggest that the economic model—driven by trade, logistics, services, and knowledge-based industries—continues to expand its footprint. The combination of higher-value services, a stable macro environment, and a dynamic private sector supports a positive long-term outlook for Dubai.
As Dubai navigates the coming quarters, policymakers and business leaders will likely monitor several indicators: consumer demand, investment levels, real estate cycles, and the performance of financial services and technology sectors. The ability to translate sectoral strength into sustainable employment and productivity gains will be a critical determinant of sustained momentum. Additionally, ongoing investment in infrastructure, digitalization, and human capital will be essential to maintain Dubai’s competitive edge in a rapidly evolving global economy. In this context, the Q1 2025 results provide both reassurance and a clear signal that the emirate’s economic engine remains well-tuned for the next phases of growth, as Dubai continues to pursue its strategic goals under the Dubai Economic Agenda D33.
Conclusion
Dubai’s Q1 2025 performance confirms a resilient, diversified economy with wide-based momentum across key sectors. The headline 4% quarterly expansion, supported by substantial gains in real estate, finance, and wholesale and retail activity, demonstrates Dubai’s capacity to sustain growth through structural strengths rather than reliance on a single driver. The leadership’s emphasis on public-private collaboration and long-term strategic initiatives under the D33 agenda aligns with the observed sectoral dynamics, where health and social care, real estate, financial services, and trade-related activities collectively underpin the economy’s trajectory. While other activities register softer results, the net effect contributes to a robust quarterly expansion that reinforces Dubai’s position as a global hub for business, innovation, and investment. The Q1 data provide policymakers, researchers, and investors with a reliable foundation for decision-making and future planning, reinforcing confidence in Dubai’s continued momentum through 2025 and beyond.