Dubai: Helped by momentum within the travel and tourism sector, Dubai’s private sector posted a strong set of numbers during December, and raising expectations this will continue into the medium-term.
The seasonally adjusted Emirates NBD Dubai Economy Tracker Index registered a score of 55.9, up from the 55.2 in November and the highest since July. The index has now posted above 50 for 10 months running.
But job creationgains continue to be marginal, with key sectors such as travel, construction and retail recording “relatively subdued rates of employment growth”. Interestingly, construction companies saw the fastest rise in staffing levels, with job creation rebounding to its strongest since May amid reports citing greater workloads and improving confidence regarding the business outlook.
Apart from travel and tourism, the other performing sub-categories were construction and wholesale/retail.
“The rebound in construction sector activity in December is particularly encouraging after relatively sluggish performance for most of H2-16,” said Khatija Haque, Head of MENA Research at Emirates NBD, in a statement. “We expect construction will be a key driver of growth in Dubai in 2017 as preparations for Expo 2020 move up a gear.”
A reading of below 50 indicates that the non-oil private sector economy is generally declining; above 50 that it is generally expanding.
