According to the global rating agency S&P Global, Dubai’s non-oil private sector grew at its fastest rate since September 2022, as the Emirate’s Purchasing Managers’ Index hit 55.5 in March. In the latest Purchasing Managers’ Index report for Dubai, the agency noted that the sharp improvement in non-oil business conditions was supported by stronger growth in output, employment, and stocks of purchases.
The Growth of Dubai’s Non-oil Private Sector
It should be noted that PMI’s readings above the 50-mark show non-oil private sector growth, while those below 50 signal contraction. In this case, the non-oil private sector is constantly growing; in February, the PMI of Dubai stood at 54.1, while it was 54.5 and 55.2 in January and December 2022 respectively.
However, the report mentioned that the wholesale and retail growth reached a 14-month low in March, as that sector, along with the travel and tourism industry, lost momentum from their post-COVID peaks in 2022. On the other hand, the construction firms in Dubai witnessed a strong output expansion in March, the largest since September, with new orders rising sharply, along with accelerating employment growth.
The Sharpest Rise in Five Years
David Owen, a senior economist at S&P Global Market Intelligence said that the subsequent increases in staffing levels and inventories of materials and components were the sharpest seen in around five years, allowing firms to increase their output to the greatest extent for six months. “The Dubai PMI picked up for the first time in three months in March, rising to 55.5 from a 12-month low of 54.1 in February, as companies reported greater efforts to build supply-side strength in light of a further rapid expansion in activity levels,” he added.
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