By Sarah Townsend
Emirates NBD Dubai Economy Tracker Index rises to highest level since March 2015
Overall business conditions in Dubai improved to their highest level since last March signalling a positive start to the third quarter of 2016, according to the latest analysis from Emirates NBD.
The Emirates NBD Dubai Economy Tracker Index rose in July to reach 55.9, the highest reading since March 2015 and up from 54.6 in June.
The rise was largely driven by growth in output and new work, with both those indices posting readings above 60 last month. Employment also increased but at a slower rate.
The index is designed to give an overview of operating conditions in the non-oil private sector economy. Emirates NBD said the index has signalled a recovery in operating conditions in each month since the series-record low seen in February.
The latest reading is now above the long-run survey average (55.1) for the past 18 months, according to the bank.
The best performing sub-sector monitored by the survey was wholesale & retail (posting a reading of 57.3 in July), followed by travel & tourism (55.1) and construction (53.5).
Khatija Haque, head of MENA research at Emirates NBD, said: “The improvement in the Dubai Economy Tracker Index in July is consistent with the rise in the whole UAE Purchasing Managers Index last month, and is underpinned by stronger new work and output growth.
“The wholesale and retail sector in particular probably benefitted from holiday spending over Eid.”
He added: “Overall, Tracker survey shows growth in Dubai gaining momentum from the second quarter after a soft start to the year.
“However, the pace of growth year-to-date, as indicated by the DET index, is slower than for the whole of 2015, which is in line with our expectations.”