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Dubai’s GDP reaches US$102.67 bn in 2016

Dubai’s read gross domestic product (GDP) at constant price recorded 2.9 per cent in 2016 to Dh376.8 billion (US$102.67 billion), according to a latest report by Dubai Economy – the trade licensing and economic regulatory body of the Government of Dubai.

Dubai’s economy, the second biggest in the UAE, is set to expand, thanks to rising domestic demand and recovery in the global economy. Growth in 2016 was supported by growth in key economic sectors, such as manufacturing, transport and storage, real estate, finance and insurance, wholesale and retail trade and tourism, it said.

“The report showed that the economy of Dubai in 2016 continued to perform well at the macro level with real GDP growing at 2.9 per cent. Dubai was able to achieve growth rates that exceeded that of developed economies despite the decline in oil prices,” the report said.

“All sectors excluding the construction sector achieved positive growth rates [in 2016]. The wholesale and retail trade sector (which also includes the repair of automobiles) accounted for 27.5 per cent of GDP and 22.4 per cent of total employment and in spite of a slowdown in 2016 the sector is expected to spring back to rates close to the overall growth of the Dubai economy.”

The hospitality sector that represents 5.1 per cent of Dubai’s economy, had the highest growth rate of 10.6 per cent in 2016, followed by the real estate sector that recorded 6.5 per cent, transportation and storage that grew 4.7 per cent, followed by manufacturing sector that recorded 3.4 per cent growth, wholesale and storage, and financial activities 5.1 per cent and insurance services sector recording 1.3 per cent growth, the report said.

The industry sector comprising manufacturing, mining, quarrying and electricity is a leading sector in Dubai's economy. In 2016 the sector ranked fourth in Dubai's economy after wholesale and retail trade, transport and storage, and financial services. Manufacturing contributed about 10 per cent of GDP in 2016 and recorded an increase in value added equivalent to 3.4 per cent compared to 2015.

Dubai has paid great attention to developing transportation, storage, information and communications, which together accounted for 16 per cent of Dubai GDP in 2016. Growth in the transport sector was 4.7 per cent and in the telecommunication sector, 3.6 per cent. Dubai has a high-quality transport infrastructure, with the UAE ranking first in the region and fourth in the world among 138 countries in the quality of transportation infrastructure, it said.

According to the MasterCard Global Destination Cities Index, Dubai has maintained its position as the world's 4th largest tourism destination (after Bangkok, London and Paris) in 2016. The 2016 mobile subscription index of the World Bank ranked Dubai the first in the world, with 235.2 telephone lines per 100 inhabitants, and  23.1 Internet lines per 100 inhabitants, which is higher than the GCC average.

The Government of Dubai is adopting policies to help increase the contribution of the industrial sector to the same or higher than in emerging and developed countries. The Dubai Industrial Strategy 2030 launched by the Government of Dubai in 2016, seeks to restructure the local economy in line with developments in the global economy, especially with regard to access to sectors with high value-add and competitiveness.