Thursday 14 December 2023

#Dubai’s economy shows ‘strong upwards trend’

Dubai’s economy shows ‘strong upwards trend’

Operating conditions in the Dubai non-oil private sector economy improved sharply in the penultimate month of the year, despite the rate of growth softening from October, analysts at S&P Global said.

Despite a slowdown in sales growth after hitting a peak in October, activity levels remained on a strong upwards trend, with inventories also continuing to rise at a historically rapid pace, S&P said in its PMI Survey report.

“Strong demand, new clients and increased project work underlined a robust expansion in new order intakes midway through the final quarter of the year, fuelling a rapid increase in non-oil economic activity,” S&P said.

Dubai's ongoing economic performance extends the momentum of growth achieved in 2022, when the emirate expanded by 4.4 per cent. It is forecast to grow by 3.5 per cent in 2023, according to Emirates NBD. Dubai, which started 2023 with an ambitious 10-year plan to double its economy, unveiled a raft of measures intended to achieve its goal.

The 10-year plan has been designed to make the city a powerful force globally, as the UAE moves away from its reliance on oil. Most of Dubai’s revenues are non-oil based nowadays and it is already leading the way in generating income from other sources, such as tourism and finance. The UAE’s economy grew 3.7 per cent in the first half of the year as the country stepped up efforts to become less reliant on oil and more dependent on knowledge-based industries.

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