Dubai’s non-oil sector signalled a softening of growth momentum at the end of the third quarter of 2021, according to the latest IHS Markit report.
As output continued to expand at a sharp pace, new business declined for the first time since February.
Dubai’s Purchasing Managers’ Index (PMI) - which measures conditions of a country’s non-oil sector economy- recorded 51.5 in September, slipping from 53.3 in August, indicating only a modest expansion.
However, the report indicated an improvement of business confidence with the opening of Expo 2020, as firms hope the event will drive an increase in business across the regional tourism and business hub.
"The Expo 2020 has now begun, which should drive increased sales in the services sector over the next six months at least.
Whilst IHS Markit predicts that the direct growth impact from the event will be modest, the latest PMI data highlighted a considerable impact on near-term business confidence,” David Owen, an economist at IHS Markit, said.