Paris (France) (AFP) – Dubai has been transformed into a major global economic hub through diversification in sectors such as transportation, finance and tourism, to reduce its dependency on fossil fuels.The emirate, along with several Middle Eastern cities such as Doha and Manama, was hit on Sunday morning by a series of explosions, the day after attacks by Iran in the Gulf in response to US-Israeli strikes that killed the Islamic republic’s supreme leader Ayatollah Ali Khamenei.With around four million inhabitants, Dubai hosts the largest population in the United Arab Emirates and accounts for almost 25 percent of national GDP.Its GDP grew by 4.4 percent in the first half of 2025 to 241 billion dirham ($66 billion), according to official figures.- Diversification -Dubai’s upward economic trajectory confirms the success of its diversification strategy in recent years, with over 95 percent of GDP coming from non-oil sectors.The city’s historically lucrative wholesale and retail trade remains one of its weightiest sectors, accounting for almost 25 percent of GDP in the first nine months of 2024.Meanwhile, transport and logistics — both port and air (12.4 percent) — have cemented Dubai’s position as a global hub for the movement of goods and people.Financial services, real estate, construction, and tourism have also helped growth.- Bridging gaps -The Dubai International Financial Centre (DIFC) has since 2004 brought together thousands of banking, insurance, asset management, fintech, and capital markets companies and serves as an important bridge between European and Asian capital flows.In the first half of 2025, the financial and insurance activities sector recorded growth of 6.7 percent, contributing 12.5 percent to GDP.Dubai owes much of its success to its strategic geographical position between Europe, Asia and Africa.The city’s logistics ecosystem was built around Jebel Ali Port, one of the largest deep-water ports in the world, as well as its international airport.- Aviation, tourism -In 2023, the aviation sector accounted for 27 percent of GDP and was worth around $37.3 billion.Dubai’s airports handle more than 88 million passengers per year, according to an Oxford Economics report published in October 2024.Dubai International remains one of the world’s leading airports for international passenger traffic and handles more than 88 million passengers per year, according to an Oxford Economics report published in October 2024.Almost 20 million tourists visited Dubai in 2025, including four million Europeans and around half a million French visitors, Didier Arino of the consultancy Protourisme told AFP.This has largely fuelled almost 900,000 direct and indirect jobs recorded in the UAE’s hotel, restaurant, retail and service sectors.Dubai has invested heavily in tourism, curating a global brand image that has attracted investors and talent from all over the world.The emirate is also home to several tens of thousands of influencers who bolster the digital economy.
© 2024 AFP
