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3 August, 2022

Dubai’s non-oil financial system increases at quickest pace in years

Business activity in Dubai’s non-oil private sector economy maintained a robust speed of expansion in June, improving at the quickest pace in three years, as new orders rose sharply despite inflationary pressures.

The headline seasonally adjusted S&P Global UAE Purchasing Managers’ Index rose to 56.1 in June from 55.7 in May to its highest reading since June 2019. A reading above the neutral 50 level indicates economic expansion, while one below points to a contraction.

“The Dubai PMI continued to trend upwards in June, reflecting further strength in new business and activity,” David Owen, an economist at S&P Global Market Intelligence, said. “Travel demand continued to support sales, and there was a renewed increase in new work in the construction sector.”

New orders expanded enormously, in a boom in output to July from 53.6 to 57.1.

Dubai’s economy, which last year rebounded strongly from the coronavirus-induced slowdown, has carried the growth momentum into this year, supported by the resurgent travel and tourism sector and its rapidly improving real estate market.

The emirate’s economy grew 6.2 per cent in 2021, according to preliminary data from the Dubai Statistics Centre. In the first three months of this year, Dubai’s gross domestic product expanded 5.9 per cent, according to government data.

The hospitality, and transport and storage were among the fastest-growing sectors of the emirate’s economy in the first quarter, expanding 47 per cent and 40 per cent, respectively.

The strong performance of the tourism sector continued in the second quarter of this year.

 

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Source: thenationalnews

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