The employment growth rate in Dubai's non-oil sector rose in July to its highest level since November 2019, with production growth in the sector accelerating at the fastest rate since July 2020, supported by increased consumer spending, according to "IHS Markit." The Purchasing Managers' Index (PMI) in Dubai increased by 2.2 points in July, reaching 53.2 points, marking the second highest level in 20 months and indicating a strong improvement in business conditions for the non-oil private sector.
David Owen, an economist at IHS Markit, stated that non-oil economic growth in Dubai accelerated in July 2021, driven by a rise in customer numbers which boosted sales in the travel, tourism, wholesale, and retail sectors. He noted that this was also a key driver of employment, as many companies hired sales staff, leading to the fastest rate of job creation since November 2019.
Owen added that companies are optimistic about benefiting from the economic recovery for the remainder of the year, emphasizing that the rise in the headline PMI in July, reaching its second highest level in 20 months, provides further reassurance that the economy is heading in the right direction.
Key PMI Data for July:
- Business activity growth accelerates to the highest rate in a year.
- New order volumes rise at the fastest pace in three months.
- Backlogs of work register their highest level in over two years.
- Renewed decrease in product prices, despite rising input costs.
