Dubai’s private sector activity picks up speed after the summer lull

Dubai: Non-oil private sector in Dubai reported modest growth in output in August with the headline Dubai Economy Tracker Index (DET) gaining marginally to 55.2 from 54.9 in July.

Overall output rose at a faster rate than in July, driven by ongoing projects, but new order growth slowed last month. The employment index eased to 50.4 in August, only slightly above the ‘no change’ level. The vast majority of firms surveyed (94 per cent) reported no change in staffing levels in August.

“The average DET year to date is 55.6, only slightly lower than the same period last year (56.5). This suggests to us that Dubai’s economy is probably growing a similar rate to 2017, or a touch slower. Preliminary estimates from the Dubai Statistics Centre put last year’s GDP growth at 2.8 per cent; about half a percentage point slower than our forecast for 2018,” Khatija Haque, Head of Mena Research at Emirates NBD