Monday 3 December 2018

Dubai stock market: Is this just another correction? | ZAWYA MENA Edition

Dubai stock market: Is this just another correction? | ZAWYA MENA Edition:

For over 2 decades, Dubai has prospered as one of the fastest developing international cities, attracting people and capital from across the globe. In 2009, Dubai needed a $20 billion bailout from Abu Dhabi. Dubai's economy roared back and has grown by a third since then, buoyed by foreign trade, tourism and its status as the main regional hub for business services.

Now, however, Dubai has hit another rough patch with residential property prices dropping by more than 15 per cent since late 2014. Economic activity in the emirate has been lagging as real estate prices dropped and domestic demand faltered. Traditional growth engines of the Dubai economy such as real estate, trade, transport and hospitality have remained weak.

The UAE's Non-Oil Private Sector Purchasing Managers Index, an indicator of economic health, has increased to 55.3 in September 2018 from a 5-month low of 55.0 in August. After peaking at 61.2 in late 2014, it fell to lows of 51.7 in 2016. Currently, it has been hovering around the mean level of 55.

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