Dubai is a safe and stable long-term investment destination

A recent report by S&P Global Ratings confirmed that Dubai’s solid economic foundations support its ability to overcome global challenges, anticipating the continuation of a supportive and flexible economic growth path thanks to the continued expansion of the high-value-added services sector. The report indicated that these foundations make Dubai a safe and stable investment destination in the long term.

In its report, the agency expected that Dubai’s average real GDP growth would reach 2.9% during the period between 2025 and 2028, in light of continued economic diversification.

It stated that Dubai achieved an average growth of 3.5% between 2007 and 2024, exceeding the regional average growth of 1.5%, as growth in the emirate reached 3.2% in 2024.

She explained that the non-oil sectors constitute about 70% of the nominal gross domestic product, including trade, transportation, financial services, manufacturing, real estate, and tourism, with the tourism sector contributing to an increase in the number of tourists by 9% during 2024.

S&P indicated that Dubai’s population grew by 5.7% to reach about four million people in 2024, which boosted the occupancy rate of residential properties to about 90% in the first quarter of 2025.

According to the agency’s report, the real estate sector in Dubai will continue to maintain its strength, thanks to government initiatives supporting population growth and long-term visas.

As for financial performance, the report indicated a financial surplus of 6.2% of GDP for the first half of 2025, supported by growth in revenues from fees and land sales.

The report expected that interest rate cuts would boost lending growth by about 8% during 2025, while maintaining asset quality and adequate allocations to major banks. ‏