Dubai Economy Grows 4.4% in H1 2025 on Broad-Based Sector Growth

Dubai’s economy continued to register robust growth in the first half of 2025, expanding by 4.4% to reach AED 241 billion (approximately $65.6 billion), despite ongoing global economic instability. The performance highlights the success of the emirate’s economic diversification strategy as it advances its vision of becoming one of the world’s leading city economies. Key growth drivers included healthcare, construction, real estate, finance, and trade.

Statistics released by the Dubai Data and Statistics Establishment, cited by the Emirates News Agency (WAM), showed that the second quarter recorded an even stronger performance, with GDP growth of 4.7%, reaching AED 122 billion. The data indicates a broad-based recovery rather than reliance on a single sector.

Momentum Builds in the Second Quarter

Growth during the April–June period reflected sustained economic momentum rather than a short-term rebound. Analysts noted that strong domestic demand, rising investment, and a supportive business environment helped cushion the impact of global inflationary pressures and geopolitical uncertainty.

Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum attributed the growth to effective leadership and coordinated efforts across government and the private sector. He said each percentage point of growth reflects collective collaboration between policymakers, businesses, and investors, as well as the emirate’s ability to transform challenges into economic opportunities.

Healthcare Emerges as Fastest-Growing Sector

Healthcare and social services recorded the highest growth among all sectors, expanding by 20% in the first six months of 2025. While accounting for a relatively modest 1.4% of GDP, the sector’s value rose to AED 3.3 billion, driven by increased demand for healthcare services.

Dubai continues to position itself as a regional healthcare destination through medical tourism initiatives, health technology adoption, and public-private collaboration. Growth in the sector also supports broader objectives to enhance quality of life and transition toward a knowledge-based economy.

Construction and Real Estate Maintain Strong Performance

The construction sector posted growth of 8.5%, adding AED 16 billion to the economy and contributing 6.7% to GDP in the first half. Infrastructure development, residential projects, and commercial construction remained strong, supported by population growth.

Real estate expanded by 7%, contributing 8.2% to GDP with a total value of AED 19.8 billion. The sector benefited from a 40% increase in property sales, driven by investor demand, an influx of high-net-worth individuals, and Dubai’s reputation as a global safe-haven investment destination.

Financial Services and Trade Continue to Expand

The finance and insurance sector grew by 6.7%, reaching AED 30.2 billion, supported by increased lending activity and expanding capital markets. The sector continues to benefit from Dubai’s role as a regional financial hub and its strategic location between East and West.

The wholesale and retail trade sector—Dubai’s largest contributor to economic activity—expanded by 4.4% to AED 57.4 billion, accounting for nearly one-quarter of GDP. Growth was driven by rising tourist arrivals and spending, as well as Dubai’s strength as a global trade and logistics hub, according to the report.

Alignment with Dubai Economic Agenda D33

The strong first-half performance supports the Dubai Economic Agenda D33, which aims to double the emirate’s economy over the next decade and rank it among the world’s top three city economies.

Helal Saeed Almarri, Director General of the Dubai Department of Economy and Tourism, highlighted the adaptability of the Dubai economy amid shifting global conditions and reaffirmed the importance of D33 priorities. He noted that public-private partnerships remain central to sustaining long-term growth.

Hamad Obaid Al Mansoori, Director General of Digital Dubai, said the data reflects the vibrancy of the economy and the success of ongoing digital transformation initiatives.

Data-Driven Governance Strengthens Business Confidence

Younus Al-Nasser, CEO of the Dubai Data and Statistics Establishment, attributed the positive results to strong coordination between government and private-sector entities, reaffirming the institution’s commitment to providing timely and accurate statistical data.

“Dubai’s success is rooted in a business environment that is agile, scalable, and innovative. Economic diversification remains a central policy focus as the emirate navigates an evolving global landscape,” said Hadi Badri, CEO of the Dubai Economic Development Corporation.

Dubai’s 4.4% economic expansion in the first half of 2025 underscores the strength of its diversified growth model. The strong performance across healthcare, construction, real estate, finance, and trade highlights the emirate’s resilience amid global challenges. As the Dubai Economic Agenda D33 accelerates, continued emphasis on innovation, digitalisation, and public-private collaboration is expected to further strengthen Dubai’s position as one of the world’s most competitive economic hubs.