Dubai’s private sector picks up pace in April – survey

Dubai’s private sector companies posted a recovery in growth last month with orders and output increasing, according to the monthly economy tracker index released by Emirates NBD.

The index grew to 52.7 in April, up slightly from 52.5 in March, indicating the fastest improvement in overall business conditions since November 2015.

However, the index reading still remains weaker than the long-run survey average of 55.1.

Head of MENA Research at Emirates NBD Khatija Haque said: “The improvement in the Dubai economy tracker in April is encouraging, particularly as it reflects faster new orders and output growth.

“The latest survey confirms our view that Dubai’s economy is growing in 2016, albeit at a slower rate than last year.”

Read: Hiring up as Dubai’s private sector firms report improved outlook

The overall pace of output growth in April was the steepest since September 2015, the index found.
Dubai’s private sector companies posted a recovery in growth last month with orders and output increasing, according to the monthly economy tracker index released by Emirates NBD.

The index grew to 52.7 in April, up slightly from 52.5 in March, indicating the fastest improvement in overall business conditions since November 2015.

However, the index reading still remains weaker than the long-run survey average of 55.1.

Head of MENA Research at Emirates NBD Khatija Haque said: “The improvement in the Dubai economy tracker in April is encouraging, particularly as it reflects faster new orders and output growth.

“The latest survey confirms our view that Dubai’s economy is growing in 2016, albeit at a slower rate than last year.”

A number of firms attributed the growth to stronger underlying client demand and successful marketing and promotional strategies.

Incoming new work also increased among private sector companies in April, with the upturn in new business the fastest since November 2015.

Survey respondents noted that improved domestic market conditions, reduced uncertainty about the economic outlook and sustained price discounting strategies had all contributed to higher levels of client demand.

Wholesale and retail firms noted the fastest upturn in new business, while growth was also recorded in the construction and travel and tourism sectors.

However, despite a rebound in business activity, job creation was relatively subdued across the private sector, the index found.

Only the construction sector registered a strong rebound in employment – its fastest in five months.