Business operations in Dubai’s non-oil private sector economy were “strong” in October, as companies have increased their numbers at the fastest pace in about three years amid strong new orders.
The Emirates title seasonally adjusted S&P Global Purchase Managers’ index reading was 56, separates the extension from the compression above the neutral 50 score. Although reading is softer than reading in September, new business arrivals have continued to rise in sharp rates since mid-2019, according to a survey.
All sectors under the survey grew at a significant proportion, led by a sharp rise in wholesale and retail sales since July 2019. “At the same time, low commodity prices and reduced transportation costs have helped to reduce business costs a second time in three months, resulting in a solid reduction in output fees.”
The reduction in prices helped to ensure a strong demand, and release fees have been greatly reduced since August 2020, while input prices have fallen for the second time in three months. The increase in activity in all sectors in the survey is the result of “significant improvement in new order booms,” and the sales growth rate has increased since September and is one of the strongest recorded for more than three years.
The higher demand levels accelerated the creation of employment, which was very fast in November 2019. The renewed fall in costs in October, the second reduction in the last three months, was due to low oil and transport prices.
Oil prices have been softening the demand for China’s demand, declining, and rising interest rates amid high inflation, after a group of 23-member OPEC + oil producers announced on October 5 that it would cut 2 million barrels per day.
Non-oil companies in Dubai have reduced their sales prices in October, as cost pressures have dropped, which indicates the fastest discounts for more than two years, with a sharp decline in the wholesale and retail sector. Dubai’s economy, which has made a strong regeneration last year from a recession triggered by the corona virus, has taken a pace of growth within this year, supported by the travel and tourism industry and its fastest growing property market.
According to early data from the Dubai Statistical Center, the Emirates economy increased by 6.2 percent by 2021. In the first three months of this year, Dubai’s GDP increased by 5.9 percent, government sources said.
