Emirates NBD said Dubai's GDP growth is likely to accelerate this year
Data from the seasonally adjusted Emirates NBD Dubai Economy Tracker Index shows a sharp improvement in Dubai’s non-oil private sector, although the rate of growth has slowed.
The rate of growth in the index was shown to have decreased from 56.3 in August to 55.2 in September. According to Emirates NBD, a reading of 50.0 or more indicates that the non-oil sector private economy is generally expanding.
“The September survey points to a continued solid expansion in Dubai’s economy, with retail and wholesale trade and construction data particularly encouraging,” said Khatija Haque, head of MENA Research at Emirates NBD.
“Year to date, the Dubai Economy Tracker index has averaged 56.3, markedly higher than the average for the same period last year, which supports our view that Dubai’s GDP growth is likely to accelerate this year.”
Among the data’s finding was that output in the non-oil private sector rose sharply in September, extending the current sequence of growth to 19 months. While strong growth was recorded in all three monitored sector (retail, wholesale trade and construction), the fastest growth was found to be in construction.
Additionally, job creation was recorded for the seventh month in a row, with the rate at which employers were hiring additional staff the fastest since April. The rate of growth, however, remained slight overall and below the long-run series average.
The data also signalled growth of new businesses for the 19th month, with panel members reporting higher inflows of new work noting improved economic conditions and marketing techniques, as well as a uptick in business confidence that reached a four-month high, matching that which registered in May.
Lastly, data showed that input price eased in September, registering below the long-run series of 53.6, while average prices charged by firms fell, reaching a five-month low. Anecdotal evidence suggested that companies reduced their selling prices in a bid to remain competitive and stimulate client demand.