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Dubai’s Non-Oil Economy Soars to New Heights in February

Dubai's Non-Oil Economy Soars to New Heights in February

In a testament to Dubai’s economic resilience, the non-oil private sector experienced its most robust growth in nearly four years in February. Data from the seasonally adjusted S&P Global Dubai Purchasing Managers’ Index (PMI) revealed a surge from 56.6 in January to 58.5 in February, indicating a significant expansion in economic activity.

The latest PMI reading matched the levels last seen in May 2019, underscoring a sharp uptick in operating conditions across the emirate. Notably, this surge places Dubai’s non-oil sector among the fastest-growing worldwide, according to global PMI data.

Key drivers of this remarkable growth include increased output, new orders, and a notable improvement in employment rates. Businesses reported a surge in output, marking the fastest upturn in a year and a half. Strong market conditions and heightened project work contributed significantly to this growth trajectory.

Moreover, hiring activity remained robust, with job creation reaching its highest level since August 2015. This positive trend in employment underscores Dubai’s position as a dynamic hub for job opportunities and economic prosperity.

The surge in business growth was further fueled by strong customer demand, supported by price cuts and sales promotions. Despite a decrease in average output charges, the wholesale and retail sectors experienced substantial expansions, reflecting the resilience and adaptability of Dubai’s economy.

Dubai’s economic resilience has been evident since the onset of the Covid-19 pandemic slowdown. The emirate recorded a 3.3% annual expansion in the first nine months of last year, driven by growth in the tourism and transport sectors. This momentum aligns with Dubai’s ambitious D33 economic growth agenda, aiming to elevate the emirate to one of the world’s top three cities by 2033.

The recent announcement by Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, revealed that Dubai’s non-oil foreign trade had surpassed the Dh2 trillion ($540 billion) mark, a year ahead of target. This milestone further underscores Dubai’s economic resilience and its unwavering commitment to sustainable growth.

Despite challenges such as shipping disruptions due to the Red Sea crisis, businesses remain optimistic about Dubai’s economic outlook. The PMI data suggests continued expansion in the non-oil sector throughout 2024, supported by strong sales promotions, employment growth, and inventory expansion.

As Dubai continues its upward trajectory, fueled by innovation and diversification, the emirate remains a beacon of economic opportunity and prosperity, positioning itself as a global economic powerhouse in the years to come.

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