Growth of Dubai’s non-oil private sector was sustained at a steady pace during August, with sharp growth across the wholesale and retail, construction and travel and tourism sectors, according to Emirates NBD.
The seasonally adjusted Emirates NBD Dubai Economy Tracker Index – a composite indicator designed to give an accurate overview of operating conditions in the non-oil private sector economy – overall remained unchanged from July at 56.3 in August.
However, August data pointed to sharp growth across the three key sectors monitored by the survey. Wholesale and retail was the best performing category (at 56.3), followed by construction (55.8) and travel and tourism (55.1).
A reading of below 50.0 indicates that the non-oil private sector economy is generally declining; above 50.0, it is generally expanding. A reading of 50.0 signals no change.
The growth was driven by a sharp expansion in new orders and output, with output charges rising for the first time in three months and input prices rising for the eighteenth successive month during August, the tracker showed.
There had previously been a sharp increase in business activity in August despite slowing slightly from the preceding month – a rise attributed to improved demand conditions, companies surveyed said.
Meanwhile, inflows of new work rose for the eighteenth consecutive month during August – at a rate above the long-run average, but slower than the preceding month.
The pace of job creation, however, was marginal, Emirates NBD added.
Khatija Haque, head of MENA Research at Emirates NBD, said: “The Dubai Economy Tracker survey shows continued expansion of the economy last month, at a similar rate to June and July.
“Output and new orders have increased sharply, although this has not translated into significant jobs growth.”For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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