Business activity growth driven by strong contributions from retail and construction.
The health of the non-oil private sector in Dubai has improved at a marked rate in June, according to the Emirates NBD Dubai Economy Tracker. Although the headline index fell from May’s recent peak, reflecting easing travel & tourism growth momentum, stronger expansions were registered in both the wholesale & retail and construction sectors. Furthermore, business confidence accelerated to a survey-record high in June amid a strong pipeline of new projects and work outstanding.
Khatija Haque, Head of MENA Research at Emirates NBD,“Despite the decline in the headline DET index in June, new work and output both increased at a sharp rate, reflecting strong demand. The wholesale and retail trade sector performed particularly well last month, which may have been partly due to the Eid holidays. The sharp improvement in business conditions in the construction sector supports our view that infrastructure investment will be an important driver of economic growth this year.”
The seasonally adjusted Emirates NBD Dubai Economy Tracker Index—a composite indicator designed to give an accurate overview of operating conditions in the non-oil private sector economy—fell to 56.0 in June, from 57.6 in May. Despite the headline figure falling from that recorded in May, it remained at a level indicative of a marked expansion that was above the historical average.
Wholesale and retail was the strongest performer in June (58.6), followed by construction (57.1) and travel and tourism respectively (54.9).