Dubai’s non-oil private sector economy witnessed a strong rebound during October. This resurgence was fueled by robust demand and a growing sense of confidence in the emirate’s economy. Notably, sales surged to a four-year high, indicating a promising trajectory of growth.
According to the S&P Global purchasing managers’ index (PMI), new business volumes have experienced the highest rate of increase since June 2019. Key sectors have witnessed widespread improvement, further affirming the positive growth trend.
For the second consecutive month, the main PMI has climbed from 56.1 points in September to 57.4 points in October. This upward trend signals a significant improvement in business conditions within the non-oil economy. Moreover, the latest reading stands as the second-highest since June 2019, underscoring the robustness of the current economic landscape.
According to David Owen, senior economist at S&P Global, this increase was propelled by accelerated growth across various sectors. This development instills greater confidence that the non-oil economy will exhibit strong performance in the fourth quarter (Q4) of 2023.
Owen noted a marginal increase in recruitment during October. The sharp increase in the volume of new orders indicates that companies will need additional employment in the coming months, but this depends on the amount of capacity that can be built using the current workforce.
Enhanced sales growth instilled greater confidence among companies regarding their business expectations.
In October, the data showed a substantial increase in inventory levels, suggesting that companies had abundant capacity to ramp up their production levels.
In October, the non-oil private sector economy witnessed a notable upswing in business activity, driven by improved demand. The pace of production growth also reached its highest point in three months, underscoring the positive trajectory of the sector.
Dubai’s economy saw a growth of 3.2 percent during the first half (H1) of 2023, primarily propelled by the transport and warehousing sector. Notably, air transport played a significant role in driving this growth, highlighting its importance in the overall economic performance.
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