Dubai’s economy recorded a robust performance in the first quarter of 2025, with gross domestic product reaching AED 119.7 billion, a 4 percent increase compared to the same period last year. The growth reflects the emirate’s continued diversification and the resilience of key sectors amid a complex global economic landscape.

According to official data, nearly 78 percent of the overall growth was fueled by strong showings across trade, real estate, financial services, transport, and industrial sectors — underscoring Dubai's strategic positioning as a global business and logistics hub.

Among the sectors, human health and social work services stood out with a striking 26 percent year-on-year growth. The sector reached AED 1.9 billion in Q1, marking its most significant expansion in recent years, driven in part by ongoing investment in healthcare infrastructure and services.

The real estate sector maintained its central role in the economy, contributing 7.5 percent of GDP with a value of AED 9 billion. Financial and insurance activities also posted steady gains, rising by 5.9 percent to AED 16 billion.

The wholesale and retail trade sector remained a cornerstone of Dubai’s economy, accounting for 23 percent of total output at AED 27.5 billion. Meanwhile, the manufacturing sector expanded by 3.3 percent to AED 8.7 billion, highlighting modest but consistent industrial activity.

Photo credits: Dubai Instagram. 

Alexander Agafiev Macambira

Alexander Agafiev Macambira is former tech contributing writer for Forbes Monaco.

In tourism-related sectors, accommodation and food services grew by 3.4 percent to AED 4.9 billion, a reflection of continued recovery in international visitor numbers. The information and telecommunications sector advanced by 3.2 percent to AED 5.3 billion, while transport and storage recorded a 2 percent increase, reaching AED 15.7 billion.

As Dubai navigates a changing global economic environment, its first-quarter results suggest a measured yet optimistic trajectory — propelled by a broad-based growth strategy and a deepening focus on critical sectors such as healthcare and finance.