The city, located in the United Arab Emirates, was hit by a series of explosions over the weekend. It alone represents nearly 25% of the national GDP of the United Arab Emirates.
Dubai, one of the seven emirates of the United Arab Emirates, has become a major global economic hub thanks to a diversification strategy in sectors such as transportation, finance, and tourism to reduce its reliance on oil.
Dubai, along with several other cities in the Middle East like Doha and Manama, experienced a series of explosions on Sunday morning following Iran’s attacks in the Gulf in response to American and Israeli strikes that killed the Iranian supreme leader. Situated at the southwest tip of the Gulf, Dubai is the largest city in the United Arab Emirates in terms of population, with around 4 million inhabitants. It alone represents nearly 25% of the national GDP of the United Arab Emirates.
Economically, Dubai has shown a 4.4% growth in its GDP in the first half of 2025, with a GDP of 241 billion AED (approximately 55 billion euros), according to official figures. These numbers confirm the success of its diversification strategy in recent years, as over 95% of the GDP comes from non-oil sectors. Wholesale and retail trade, historically an economic driver, remains one of the largest contributors, while transportation and logistics – both port and air – have established Dubai as a global hub for the movement of goods and people.
Financial services, real estate, construction, and tourism are among the other growth factors. The Dubai International Financial Centre (DIFC), established in 2004, brings together thousands of companies active in banking, insurance, asset management, fintech, and capital markets and serves as a significant bridge between European and Asian capital flows. In the first half of 2025, the sector of financial and insurance activities recorded a growth of 6.7%, contributing 12.5% to the GDP.
Dubai owes much of its economic success to its strategic geographical position between Europe, Asia, and Africa. The emirate has built an integrated logistic ecosystem centered around the Port of Jebel Ali, one of the largest deep-water ports globally, and Dubai International Airport, consistently ranked among the top airports worldwide for international passenger traffic.
On air transport alone, Dubai, with its international companies like Emirates, serves as a major hub, welcoming over 88 million passengers annually, according to an Oxford Economics report from October 2024. The sector represented 27% of the GDP in 2023, with a value of around 37.3 billion dollars. Moreover, nearly 20 million tourists visited Dubai in 2025, including 4 million Europeans and approximately half a million French visitors, as stated by AFP’s Didier Arino from Protourisme.
This has significantly contributed to the approximately 900,000 direct and indirect jobs in the United Arab Emirates in the hospitality, food, retail, and service sectors. The emirate has heavily invested in tourism, shaping a global brand image that has attracted investors and talents from around the world. The emirate notably hosts tens of thousands of influencers in the digital economy.
