The latest PMI survey data from S&P Global reveals a significant uptick in Dubai’s non-oil private sector activity, reaching its highest level since May 2019. The headline S&P Global Dubai Purchasing Managers’ Index (PMI) surged to 58.5 in February, indicating a substantial enhancement in operating conditions across various sectors.
According to the survey report, businesses benefited from favorable market conditions and increased sales efforts, leading to a brighter investor outlook. As a result, companies expanded their staffing at the fastest rate in eight-and-a-half years and accumulated inventories rapidly.
David Owen, senior economist at S&P Global Market Intelligence, highlights the robust growth of Dubai’s non-oil economy, positioning it as one of the fastest-growing globally. Factors such as rising output and new order volumes, coupled with soft inflationary pressures, suggest continued expansion throughout 2024.
The removal of the UAE from the FATF’s grey list significantly contributes to Dubai’s investment landscape. Economists anticipate a more streamlined foreign currency exchange process, fostering economic diversification and encouraging foreign direct investment across sectors.
The PMI survey indicates a notable increase in output and new business growth, with over a third of respondents reporting higher output levels since the previous survey period. However, shipping disruptions due to the Red Sea crisis have impacted supplier performance and led to a modest rise in input costs.
Looking ahead, Dubai’s non-oil companies express a positive outlook, with a significant proportion expecting output growth in the next 12 months. This optimistic sentiment reflects confidence in the continued expansion and resilience of the emirate’s economy.
Dubai’s rapid hiring and flourishing business environment underscore its position as a global economic hub, poised for sustained growth and development in the years to come.
