Dubai’s economy has entered 2025 on an impressive trajectory, consolidating its reputation as one of the world’s most dynamic investment hubs.
The emirate’s gross domestic product in the first quarter of 2025 reached Dh119.7 billion, marking a 4% increase compared with the same period last year. Key drivers included finance and insurance, accommodation and food services, information and communications, wholesale and retail trade, and real estate. The broader UAE economy is expected to expand between 5% and 6% this year, supported by a diversified growth strategy, healthy oil market dynamics, and a thriving non-oil sector projected to grow 4.5%.
The International Monetary Fund forecasts Dubai’s economy to expand by 3.3% in 2025 and 3.5% in 2026, pointing to steady medium-term growth. The figures follow a robust 2024 performance, when Dubai’s GDP rose 5.8% at current prices to Dh541 billion, reflecting broad-based growth across trade, finance, industry, transport, and real estate.
Hadi Badri, CEO of Dubai Economic Development Corporation, said the city’s economic momentum reflects a deliberate strategy. “At a time when businesses, investors, and entrepreneurs are seeking stability and certainty, Dubai’s sustained and diversified economic growth continues to underscore its global appeal. Guided by the city’s visionary leadership and powered by strong public-private collaboration, Dubai’s performance through 2024 and into 2025 reflects our continued momentum towards achieving the goals of the Dubai Economic Agenda D33.”
Finance and insurance contributed Dh16 billion in Q1 2025, rising 5.9% year-on-year basis and accounting for 13.4% of GDP. Real estate, a traditional pillar of Dubai’s economy, expanded by 7.8%, while accommodation and food services rose by 3.4% and information and communications by 3.2%.
The wholesale and retail trade sector, the single largest contributor, accounted for Dh27.5 billion or 23% of GDP, expanding 4.5% from the previous year. Manufacturing grew by 3.3% to Dh8.7 billion, while transport and storage, supported by air traffic through Dubai International Airport, rose 2% to Dh15.7 billion.
Human health and social work activities saw the fastest growth at 26%, underscoring Dubai’s investment in health infrastructure and its ability to position itself as a regional hub for healthcare services. “In an era defined by data and AI, reliable statistics are indispensable for understanding current trends and anticipating future developments,” said Younus Al Nasser, CEO of Dubai Data and Statistics Establishment. “The Q1 2025 results reflect Dubai’s economic progress, enabling policymakers, researchers, and businesses to make well-informed decisions.”
Investor confidence
The emirate’s success extends beyond macroeconomic performance into its ability to attract foreign direct investment. The Dubai International Chamber announced it had welcomed 143 new companies in the first half of 2025, including 31 multinational corporations, representing a 138% year-on-year increase. Small and medium-sized enterprises also showed strong growth, with 112 firms joining compared to 47 in the first half of 2024.
Sultan Ahmed bin Sulayem, Chairman of Dubai International Chamber, emphasised the city’s role as a global magnet. “We are making strong and steady progress in consolidating Dubai’s position as the global destination of choice for foreign direct investment and a launchpad for companies targeting international growth. This momentum is fuelled by Dubai’s unique competitive advantages, which include world-class infrastructure, a pro-business regulatory environment, and a strategic location connecting global markets.”
The Dubai Multi Commodities Centre, already the world’s largest free zone, reported welcoming over 1,100 new companies in first half of 2025, bringing membership close to 26,000. Its Crypto Centre now hosts more than 700 companies, including major global names such as Bitcoin.com and Animoca Brands. Meanwhile, the Dubai International Financial Centre added several high-profile global financial institutions this year, including PIMCO, Manulife, and China International Capital Corporation, pushing the number of regulated entities up 17% to 980.
Rise in wealth, family offices
Beyond corporates, Dubai is experiencing a wave of relocations by family offices and high-net-worth individuals. Around 200 family offices established themselves in Dubai’s financial centres over the past year, taking the total close to 800, many shifting from Switzerland and other European jurisdictions in search of favourable tax and inheritance frameworks. The UAE now hosts three-quarters of all family offices in the Middle East, with assets under management expected to reach $500 billion by the end of 2025.
Wealth migration is another area where Dubai is outpacing rivals. According to Henley & Partners, nearly 10,000 millionaires and billionaires moved to the UAE in 2025, with Dubai capturing the lion’s share, bringing $63 billion in investable wealth. The city is expected to welcome 7,100 millionaires this year alone, including over 200 centi-millionaires and at least 15 billionaires, giving Dubai more than a quarter of the Middle East’s total private wealth. Knight Frank reports that Dubai now hosts over 72,000 HNWIs, with the number expected to grow by 50% by 2030.
Dubai’s tourism sector continues to perform strongly. In the first two months of 2025, the emirate welcomed 3.82 million overnight visitors, a 4% increase compared to the same period in 2024. For full year 2024, Dubai recorded 18.72 million overnight visitors, up 9% on 2023, cementing its position as the fifth most visited city globally.
The real estate sector is another anchor of growth. Luxury property remains in high demand, with record-breaking transactions on Palm Jumeirah and Downtown Dubai. Knight Frank notes that 68% of global HNWIs plan to invest in Dubai real estate in 2025, with an average intended spend of $32 million. In parallel, Dubai Land Department data shows long-term stability, with over 84,000 property transactions worth nearly Dh300 billion recorded as far back as 2021, establishing the emirate as one of the world’s most active property markets.
Dubai’s efforts to create a diversified, investor-friendly, and globally integrated economy are reflected in global rankings. The emirate ranks among the top 25 cities worldwide in the Global Cities Index, eighth globally and first in the region in the Global Power City Index, and fifth globally in the Brand Finance Global City Index, surpassing Singapore and Los Angeles. The city has also been recognised as the world’s most reputable city for business and investment, topping regional rankings in digital governance, entrepreneurship, and safety. The Julius Baer Global Wealth and Lifestyle Index ranked Dubai seventh worldwide, reflecting its growing cost of luxury services but also its increasing attractiveness to global elites. Dubai International Airport remained the world’s busiest for international passengers in 2024, handling over 92 million travellers, further underlining its global connectivity.
Outlook and vision
As Dubai accelerates towards the ambitious targets of the Dubai Economic Agenda D33, which aims to double the size of the economy to Dh32 trillion by 2033, its outlook remains exceptionally strong. The emirate is leveraging its role as a trade, financial, and tourism hub while investing heavily in technology, digital infrastructure, green energy, and innovation ecosystems.
Government policy continues to play a pivotal role in creating a competitive environment. Reforms such as long-term Golden Visas, retirement residency schemes, 100 per cent foreign ownership, and supportive legal frameworks in financial free zones like DIFC and ADGM have created a secure and predictable setting for investors. The government’s continued investment in infrastructure, ranging from airport expansion to smart city technologies, will further cement Dubai’s global standing.
Dubai’s rising global investor appeal is not accidental but the result of a long-term, integrated strategy. From economic diversification and regulatory innovation to its central geographic position and unmatched connectivity, the emirate has created a model that is increasingly emulated worldwide. Whether it is multinational corporations seeking a base for global operations, family offices managing generational wealth, or entrepreneurs and innovators looking for a launchpad, Dubai is firmly positioned as the destination of choice.
