Connect with us

Hi, what are you looking for?

Business

Dubai’s commercial activity rise boosts private sector sales

Dubai's private sector

Dubai’s private sector sales jumped, after a noticeable increase in commercial activity, according to the Purchasing Managers’ Index (PMI), of the IHS Markit group.

The Purchasing Managers’ Index showed that the growth rate of sales of private sector companies in Dubai rose to its highest level in 28 months, led by the travel and tourism sector at the level of sectors.

The wholesale and retail sector witnessed an increase, while the construction industry suffered from weak demand and constraints on the supply side.

Dubai’s private sector

The latest index data indicated a noticeable increase in commercial activity in the non-oil private sector in Dubai during November.

The main reason behind this recovery was the increase in new business at the strongest rate since July 2019. Companies have benefited from the continued recovery in international travel and higher customer demand.

Lower production prices also helped boost sales, which was the fastest in over a year.

“The Expo 2020 continued to bring strong growth to the Dubai non-oil economy in its second month, with the November PMI remaining at its joint-highest level since October 2019, whilst new business growth picked up to the fastest for more than two years. Travel and tourism appeared to benefit the most of the three monitored sectors, with wholesale and retail also firmly in growth territory,” said David Owen, economist at IHS Markit.

Unstable companies

Expectations of future activity were weak compared to pre-corona trends, although it recorded one of the highest levels in 2021.

Some companies remain unstable due to the pandemic, and there were doubts about the strength of the recovery after the support provided by the Expo 2020 exhibition faded.

Therefore, future PMI releases will be crucial in understanding the strength of the economy, and whether this can drive business and employment confidence.

After climbing to a two-year high in October, the seasonally adjusted Dubai PMI stopped moving at 54.5 in November.

Business

The UAE aspires to reach 100 gigawatts of renewable energy capacity, and then double it to 200 gigawatts, Minister of Industry, Sultan Al Jaber,...

Trade

Abu Dhabi, (Business News Report) – UAE Minister of Economy Abdullah bin Touq Al Marri has met with his counterpart of Tunisia Samir Saeed,...

News

The Atlantic Council announced Friday the rescheduling of the 2022 Atlantic Council Global Energy Forum to March 28-29, 2022. The forum, which will be...

Business

The Emirate of Dubai announced the budget for the current year 2022 to be 5% higher than last year’s budget 2021. The Crown Prince...