Dubai’s economy remains resilient despite global headwinds

Dubai’s economy achieved a strong performance during 2022 as many sectors registered stupendous growth, and all sectoral indicators confirmed that the Emirate’s economy was steadily heading towards exceptional performance, during the current year, despite the current global conditions.

This strong growth coincided with the improving confidence in the economy’s performance during the first months of this year, which recorded their highest levels since the outbreak of the pandemic, as the local companies recorded a significant growth in the number of new jobs in most sectors. The strong growth in credit demand also reflected the increasing confidence of investors and consumers in the prospects for economic growth in Dubai and the UAE in general.

The real estate sector recorded a historical performance in terms of deals and sales values, as 2022 witnessed registration of over 97,000 transactions, and sales from real estate stood at $72.31 billion, the highest in real estate market’s history in the Emirate.

Last year, Dubai positioned itself as an attractive destination for investors and companies, as 88,235 new companies were established, compared to 72,152 thousand companies in 2021, a growth of 22%. The number of new investors during the past year reached 174,212 thousand investors.

Tourism

The tourism sector too achieved an impressive recovery despite the restrictions imposed on travel in a number of countries, as Dubai International Airport retained its lead in the world’s airports as 66 million passengers visited/transited compared with 29.1 million travellers in 2021. More than 1.47 million international tourists visited Dubai in January this year, compared with 980,000 tourists who visited Dubai in January 2022.

The influx of investors, tourists and visitors is a testament to Dubai’s ability to achieve exceptional economic performance in 2023. The Dubai Financial Market has strengthened its position by attracting more companies after the newly listed companies achieved exceptional results.

Even the net profits of six banks in Dubai increased to $6.93 billion, and four banks reduced the total impairment allowances that they deducted during 2022 thus reflecting the banking sector’s resilience, in the face of global challenges.