According to recent data, Dubai saw its largest population growth since 2018 as the emirate continued to draw professionals, investors, and white-collar job seekers from all over the world.
According to researchers, this massive influx of new immigrants will increase demand for housing, utilities, healthcare, and education. Additionally, consumption is expected to “substantially increase” in 2025 and the ensuing years.
According to the Dubai Statistics Centre, the emirate’s population increased by more than 169,000 in 2024, reaching 3.825 million at the end of the previous year.
Over the years, the city’s population has been steadily rising, rising by over 104,000 in 2023, 71,500 in 2022, and 67,000 in 2021. According to data, the population of the regional economic center increased by more than 162,000 in 2019 and more than 215,000 in 2018.
In 2020, Dubai attracted over 54,700 new inhabitants, demonstrating its appeal even amid the COVID-19 pandemic. According to experts, the emirate’s ability to manage the situation well was one of the main elements that increased its allure during the pandemic.
As people from other emirates come to Dubai for meetings and business, the city’s population grows by another million during the day. The majority of them are from nearby Ajman, Abu Dhabi, and Sharjah.
Which sectors will benefit in 2025?
According to experts, the growing population will be a major factor in the expansion and economic growth of the main industries in 2025 and beyond by increasing demand for consumer products, housing, and utilities, among other things.
“Dubai and the rest of the emirates will definitely benefit through higher consumption and a better economy. With the overall increase in population now UAE has a much larger local market and consumption is bound to increase, this in turn helps companies to increase sales either directly or indirectly,” said Munshi.
Although population growth has numerous advantages, it also strains infrastructure because traffic congestion has become a typical occurrence in major cities around the world.
“Dubai is extremely proactive in improving infrastructure needs; hence, one can expect a horizontal expansion of the emirates,” added Munshi.
All government-related services, particularly those that charge for them, will greatly profit, according to Akbar Naqvi, managing partner of Zasard Holdings.
“In the private sector, anything related to housing, transportation, utilities, healthcare, education, etc, will see an obvious benefit,” he said.
Infrastructure would be under stress, but steady government investment would prevent it from collapsing, according to Naqvi.
