DUBAI: The continued rebound in international travel, as well as higher client demand, have pushed Dubai’s new business growth up, recording its strongest level since July 2019.
According to the latest IHS Markit Dubai Purchasing Managers’ Index, which measures changes in output, new orders, employment, and other indicators, the ongoing Expo 2020 has been leading the upturn of non-oil business activity in the city.
“The Expo 2020 continued to bring strong growth to the Dubai non-oil economy in its second month, with the November PMI remaining at its joint-highest level since October 2019,” David Owen, an.IHS Markit economist, said.
The index was unmoved at 54.5 in November, indicating a joint-strongest improvement since October 2019.
Rate of sales growth climbed to its highest in 28 months led by travel and tourism at the sector level, the new report showed.
Wholesale and retail also performed well, while the construction industry struggled with weak demand and supply side constraints.
Owen said there was “reluctance amongst firms to expand their employment numbers” despite strong business growth.
“Some firms are still unsettled by the pandemic and there were doubts about the strength of the recovery once the boost from the Expo 2020 fades,” he said, as staffing levels dropped slightly for the first time since May.