Dubai's non-oil private sector growth on ‘robust’ tack: report

New work received by companies continues to rise, says Emirates NBD

Wholesale and retail was the best performing category for the first time in six months, followed by travel and tourism.

Wholesale and retail was the best performing category for the first time in six months, followed by travel and tourism.

Dubai’s private sector companies continued to remain optimistic though growth momentum slipped in February compared to January, according to an Emirates NBD report.

The seasonally adjusted Dubai economy tracker index for incoming new work category rose to a 24-month high as companies reported a rise in new job orders.

Wholesale and retail was the best performing category for the first time in six months, followed by travel and tourism. However, construction companies recorded a slowdown in growth momentum.

The rate of output growth was stronger than the long-run series average, but eased from January’s 23-month high to its weakest in three months. Anecdotal evidence generally linked higher business activity to stronger underlying demand conditions.

Dubai’s private sector employment remained broadly unchanged in February, thereby ending a seven-month sequence of job creation, the bank said.

New work received by private sector companies continued to rise with the latest increase being the sharpest one since February 2015. A number of firms cited stronger market demand, supported by successful marketing and promotional strategies. Some firms also mentioned new client wins stemming from good reputation and quality.

Khatija Haque, head of MENA Research, Emirates NBD, said: “The February Dubai economy tracker survey continued to show robust expansion in Dubai’s non-oil private sector.  Strong growth in output and new orders, point to a solid GDP growth in first quarter 2017, which is not being reflected in higher employment however, and competition continues to weigh on selling prices.”

Companies remained optimistic about their growth prospects for the year ahead with travel and tourism firms most upbeat towards the 12-month outlook for activity, closely followed by wholesale and retail, the bank noted.

Emirates NBD Dubai Economy Tracker Index™

Seasonally adjusted, 50 = no-change

Sources: Emirates NBD, IHS Markit

 

Emirates NBD Dubai Economy Tracker Index: Sector summary

Seasonally adjusted, 50 = no-change

Sources: Emirates NBD, IHS Markit

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