Dubai’s non-oil economy maintains growth in July
Dubai’s non-oil economy continued to grow in July, driven by robust expansions in output and new businesses.
The rate of job creation registered a boost but the growth moderated slightly and was at a three-month low, according to S&P Global’s Dubai Purchasing Managers’ Index (PMI) for the month of July released on Wednesday.
The PMI reflects changes in output, new orders, employment, and suppliers’ delivery times and stocks of purchased goods of non-oil private sector companies.
The monthly survey showed that the headline index stood at 55.7 in July, down from a 10-month high of 56.9 in June. A reading above 50 signals an expansion in the month, whereas readings below 50 signal a contraction.
Data released by the Dubai government on Tuesday showed GDP maintained growth momentum in 2023, growing at 2.8 per cent to Dh111.3 billion, driven by transportation and storage, accommodation and food services, and financial and insurance sectors.
“Dubai’s non-oil private sector continued to record strong gains in business activity and demand as we head into the second half of the year. Growth in new order intakes, successful marketing, and project wins drove a considerable upturn in output, with nearly a third of businesses seeing a monthly expansion,” said David Owen, senior economist at S&P Global Market Intelligence.
“After ticking up to a 10-month high in June, there was nonetheless a cooling of demand growth, with each of the three key sectors monitored — construction, wholesale and retail and travel and tourism — reporting a weaker rise in new business,” said Owen
Around 32 per cent of surveyed firms reported a rise in output in July, associating this with higher sales volumes, greater marketing, and work on current projects.
In addition, firms recorded a sharp uplift in new business intakes, continuing the trend of expansion seen since October 2021. Travel and tourism remained the strongest performing sector in terms of demand growth while construction was the weakest.
However, firms were more confident about the future as supply conditions continued to improve, and price pressures were stable.
The survey found that the emirate’s private sector was more positive about future activity during July than in the previous month, mainly due to improving economic conditions supporting non-oil private businesses.
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source: khaleejtimes
