Dubai non-oil private sector sees boost in June

The business conditions in Dubai’s non-oil private sector improved in June, supported by faster output and new orders growth, a new survey report showed.

The seasonally adjusted Emirates NBD Dubai Economy Tracker Index rose to 56.5 last month from 55 in May, and above the long-run series average of 55.2.

“The June Dubai Economy Tracker survey supports our view that Dubai’s economy has grown at a faster rate in H1 2017 compared with the same period last year,” Khatija Haque, head of MENA research at Emirates NBD, said in a statement.

“The wholesale and retail trade sector likely benefitted from increased household spending during Ramadan, which was in June this year, while the increased activity in the construction sector probably reflects progress on a number of infrastructure projects in Dubai,” she said.

Of the three key sectors surveyed, wholesale & retail trade outperformed in June with the sector index rising to 58 from 55.5 in May.

According to the survey report, the construction sector index rose to 57.4 in June from 56.2 the previous month, reflecting increased output on the back of new projects.

Business conditions in the travel & tourism sector also improved last month, but at a slower rate than construction and trade sectors. The sector index edged up slightly to 54.4 in June from 54.2 in May.

Overall, employment remained broadly unchanged at 50.2, the lowest reading since February this year, the report said.

On average, firms in Dubai cut selling prices in June, even as input costs rose slightly.

Firms in the construction sector were able to increase selling prices marginally last month.

“Businesses surveyed remained optimistic about their prospects over the coming year, although the degree of optimism eased from May, to the lowest reading in 11 months,” the report said.