Dubai witnessed the strongest increase in new business since July 2019 last month, led by the continued rebound of international travel, the ongoing attraction of Expo 2020 Dubai, and higher client demand.
Growth across much of the non-oil private sector showed a “marked increase”, according to IHS Markit. Its Purchasing Managers’ Index (PMI) for the Middle East’s main business hub remained at 54.5 in November, above the 50 mark that separates growth from contraction, indicating the joint strongest improvement in operating conditions since October 2019.
David Owen, economist at HIS Markit, said: “The Expo 2020 continued to bring strong growth to the Dubai non-oil economy in its second month, with the November PMI remaining at its joint-highest level since October 2019, whilst new business growth picked up to the fastest for more than two years.
“Travel and tourism appeared to benefit the most of the three monitored sectors, with wholesale and retail also firmly in growth territory.”
However, despite robust sales growth, which climbed to its highest rate in 28 months, job numbers in the emirate’s non-oil sector fell marginally for the first time in six months.
“There was a reluctance amongst firms to expand their employment numbers; in fact, staffing levels dropped slightly for the first time since May. This came as the outlook for future activity, whilst one of the highest seen in 2021, was subdued compared to pre-Covid trends,” said Owen.
“Some firms are still unsettled by the pandemic and there were doubts about the strength of the recovery once the boost from the Expo 2020 fades.”
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