Dubai's gross domestic product (GDP) grew by 4.7% y-o-y in 2Q 2025, contributing approximately AED 122 bn to Dubai's economy for the period, and outpacing the 4% growth recorded in 1Q, according to data from Dubai Media Office. This brings growth in 1H 2025 to 4.4% y-o-y, reaching AED 241 bn.

The annual growth in 2Q 2025 is also the highest in four and a half years, GCC Economist and Khalij Economics Director Justin Alexander told EnterpriseAM UAE.

The wholesale and retail trade sector contributed the lion’s share to GDP at 23.8%, with growth of 4.3% during the quarter, bringing in AED 29.9 bn.

The construction sector also recorded an increase of 14.9% y-o-y during the quarter, driven by higher government spending on development projects, and 8.5% y-o-y to AED 16 bn in 1H of 2025. The sector contributed 6.7% to the GDP during this period.

Other sectors fueling this growth: The real estate activities sector grew by 7% y-o-y during 1H, recording AED 19.8 bn, supported by a 40% y-o-y increase in real estate sales. The financial and ins. activities sector grew by 6.7% to AED 30.2 bn and contributed 12.5% to Dubai's GDP during 1H, also recording a 7.7% y-o-y increase during 2Q. The information and communications sector also expanded by 5.3% y-o-y during 1H, to account for AED 10.8 bn — or 4.5% — to total GDP. The sector grew by 7.4% y-o-y during 2Q.

The sector seeing the most growth was human health and social work activities, with a surge of 20% y-o-y during the first six months of the year, netting AED 3.3 bn and contributing 1.4% to Dubai's total GDP. The sector's momentum was also strong in 2Q, recording 12.8% growth y-o-y to reach AED 1.4 bn.

ICYMI- Emirates NBD had pencilled in growth of 3.7% y-o-y for Dubai on the back of robust investment from both the private and public sectors. The IMF, meanwhile, expects the emirate’s GDP to see 3.3% growth this year, trailing a 4.2% prediction for Abu Dhabi. Dubai’s 2Q growth trumped Abu Dhabi’s, which grew 3.8% in the same quarter to AED 306.3 bn.

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