July 18, 2024

Dubai’s Non-Oil Activity gets elevated in March

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  • As per the Emirates NBD, Dubai’s non-oil private sector has generated a lot of pace in March, as the total business output has risen to the fastest rate since January 2015. Tourism and retail industries have posted a record-breaking rise in this activity.   
  • It has adjusted Dubai Economy Tracker Index – a composite indicator developed with IHS Markit and has been designed for providing the overview of operating conditions in the non-oil private sector economy which has hovered around 57.6 in March. It has risen from being at 55.8 in February and is one of the highest ever recorded since May 2018.

    In the numbers game or rating of above 50 indicates development and below 50 indicates a reduction.

It also suggested that the March figure was also joint highest in the last two years as it has a long-run average of 55.2 since 2010, the banking giant stated.

This surge in the non-oil private sector is the result of travel and tourism industry registering a record high of 59.8 and wholesale-Retail registering a record high of 59.7, just a tad shy of the record it had set during October 2017.

However, it was pegged back by business conditions within Construction based industry was weakest in the 28 months as to softening of the new order growth by Emirates NBD bank. The sharp surge in business output has driven the Main index performance in March, as stated per Emirates NBD bank.

This expansion in the non-oil sector on records was fifth-strongest since 2010.

Non-oil private sector companies slashed the prices for goods and services for the 11th consecutive month as it marks the longest sequence of discounts since it began in 2010.

As quoted by Khatija Haque, head of Mena Research at the Dubai lender “Although, Output, media sales, and new order growth demand continued to remain constant and gained significant profits, there has been no meaningful growth which remains pathetic as far as Non-oil private sector’s employability or job market is concerned since last three to four months.

March-April months bolstered the overall confidence as future output rebounded stronger from an abysmal six month low; thus, returning in one of the highest degrees of optimism over the past five years.

“The pressure to cut costs means that the recovery in the volume of activity has not translated into much job growth in the private sector.” The rate of job creation was modest last month, partially reflecting little or no change, especially in the travel and tourism sector, the tracker showed.

Meanwhile, average input prices rose for the 12th month running in March, while the rate of inflation was modest and has eased since February.

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