Economy

Dubai Private Non-Oil Sector Drops for the Fourth Time

Dubai has been one of the biggest countries with the bolstering economy, this month; the country tallied its fourth consecutive loss for its private sector. The non-oil sector has been struggling in the past months but an ample growth is still recorded.

The country’s private sector managed to ease after a great show last year. The drop this month is the lowest from the four previous sluggish months.  Dubai’s private sector still managed to keep positive figures on great business conditions.

The sector’s extended drop was from the struggling employment rate. The local government saw some receding figures for the first time since February of last year. The squeeze margins are continuously pressuring the employment rate heavily last month.

Emirates NBD Dubai Economy Tracker Index managed to tally grave decreases last week. The index fell from the 55.8 it has last February, to a lackluster 55.3 last March. The easing figures are caused by the falling employment rate.

Looking on the brighter side, the reading for non-oil economy above 50 still suggests a growth from the previous month. On the other hand, anything below the 50 mark suggests a strong turbulence in the sector’s performance.

Dubai Extends Lackluster Private Sector Performance last Month

Dubai Extends Lackluster Private Sector Performance last Month

Dubai March Economic Performance

Meanwhile, the overall March figures indicated another great economic growth, pushing the boundaries closer to its historical average. Furthermore, all sub-sectors managed totally great and positive figures from the previous month.

One of the biggest gains was from the travel and tourism sector. It managed to hit the 56.7 figures last March. The second biggest gainer was the wholesale and retail at 56.3 and is shortly followed by the construction sector at 53.2

According to the report, “Momentum in the construction sector slowed in the first quarter of 2018. The average construction sector index reading was 54.1 in Q1 2018, down from 54.7 in Q4 2017, 55.3 in Q3 2017 and 57.2 in Q2 2017,”

Dubai NBD Economist Note

According to the Middle East and North Africa economists at Emirates NBD, Daniel Richards, “while the Dubai Economy Tracker fell to a four-month low … it remained firmly in expansionary territory, with travel and tourism the outperformer,”

Richards’ also noted that “We anticipate faster growth in the Dubai economy this year, bolstered by ongoing infrastructure projects and greater government spending.”

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