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Dubai / Emirates Business
Latest survey data signalled a sharp and accelerated improvement in the health of Dubai’s non-oil private sector. Output and new orders both expanded at the strongest rates since early 2015, with increases in the travel & tourism and wholesale & retail sectors key drivers of May’s improvement. Reflective of strong business conditions in the sector, positive sentiment was at its highest since the series began in April 2012.
The seasonally adjusted Emirates NBD Dubai Economy Tracker Index — a composite indicator designed to give an accurate overview of operating conditions in the non-oil private sector economy — scored 57.6, up from 53.9 in April. The latest figure signalled a sharp improvement that was the strongest recorded since April 2017.
Wholesale & retail led the upturn on a sector basis, with an index reading of 58.3, closely followed by travel & tourism (57.3). At 54.6, down marginally from 54.9 in April, construction was the only sector to record softer growth in May.
A reading of below 50.0 indicates that the non-oil private sector economy is generally declining; above 50.0, that it is generally expanding. A reading of 50.0 signals no change.
The survey covers the Dubai non-oil private sector economy, with additional sector data published for travel & tourism, wholesale & retail and construction.
Commenting on the Emirates NBD Dubai Economy Tracker, Khatija Haque, Head of Mena Research at Emirates NBD, said, “The sharp rise in the Dubai Economy Tracker index supports our view that growth in Dubai will be faster this year relative to 2017, but the headline reading masks the squeeze on profit margins which is also evident in the survey data. Firms, particularly in the wholesale & retail sector, cut prices aggressively to boost their output and new orders last month.â€
Output across Dubai’s non-oil private sector increased at the fastest pace in 40 months during May.
Business activity has risen continuously on a monthly basis since March 2016.