Dubai economy tracker remains flat in July

The Emirates NBD Dubai Economy Tracker Index (DETI) remained flat at 56.3 in July from 56.5 in June, the bank said in a report on Wednesday.

The figure still remains above the long-run trend of 55.2.

“While the headline index continues to reflect strong growth in the non-oil economy in July, firms’ margins continue to be squeezed as they lower selling prices, particularly in the trade and hospitality sectors. Employment growth remains soft overall,” said Khatija Haque, head of MENA research at Emirates NBD.

The overall index showed a sharp increase month-on-month in new orders (62.0) and output (61.0), while the latter was slightly slower than in June.

Surveyed firms, the report noted, attribute this rise to “favorable economic conditions and more projects.”

However, the construction sector index of 54.8 in July, compared to 57.4 in June, reflects the slowest rate of growth among the surveyed industries.

The wholesale and retail industry index decreased slightly from 58.0 in June to 57.9 in July, but maintained its position as the best performing category.

This was followed by the travel and tourism sector, which received an index of 56.3, compared to 54.4 in June, scoring the highest reading in three months.

The slow pace of job creation is consistent with the trend observed over the past five months, the report said. The increase in staff was the sharpest in the wholesale sector (52.0), followed by travel and tourism (51.0), and the construction industry with just a marginal rise.

Overall, the survey showed improved business optimism for the coming year, with respondents citing Expo 2020 as a key factor in their anticipation for future output growth.