Dubai’s private sector growth accelerates in April: ENBD

Dubai’s non-oil private sector growth accelerated at the fastest rate in over four years in April, driven by a strong retail sector growth, according to Emirates NBD.

The seasonally adjusted Emirates NBD Dubai Economy Tracker Index edged up to 57.9, the highest since February 2015, from 57.6 in March. The Index has registered above its long-run trend level of 55.2 throughout the first four months of 2019.

A number above 50 indicates expansion and below 50 signals contraction in economy.

The improvement in the economic tracker mainly reflected the trend in new business, as employment was broadly unchanged during the month. Business conditions in the wholesale and retail sector improved at a series record pace, partly influenced by sharp price discounting and promotional activity.

“The sharp rise in output and new work in April is encouraging, as it suggests GDP growth is accelerating after a relatively soft 2018,” said Khatija Haque, head of Mena research, Emirates NBD.

“However, this growth in the volume of activity appears to be underpinned by price discounting, rather than an improvement in underlying demand. As a result, firms are reluctant to boost hiring and consumers are likely to remain cautious,” she added.