Dubai’s economy sustains robust growth in January

Dubai’s economy sustains robust growth in January

Demand levels continue to increase sharply in January; Output rises rapidly

Non-oil companies continued to indicate a strong demand environment in January with higher customer orders, increased advanced bookings and new projects commencing.

Published: Thu 9 Feb 2023, 6:57 PM

The non-oil business activity in Dubai’s private sector sustained a robust growth in January for the ninth consecutive month as consumer demand improved along with employment in the emirate, latest data shows.

The business conditions across the Dubai non-oil economy pointed to a further slowdown in growth momentum at the beginning of 2023, but rising demand and stable input costs encouraged increases in employment and inventories while average selling prices continued to fall.

“These developments were partly supported by an improving supply chain environment, as delivery times shortened to the greatest extent since September 2019,” according to S&P Global purchasing managers' index.

The seasonally adjusted S&P Global purchasing managers' index eased to 54.5 points in January from 55.2 in December, indicating a stability above the neutral 50 mark that separates economic expansion from contraction. The index dropped for the fourth time in five months, falling from 55.2 in December to its lowest since February 2022.

Strong demand environment

The survey further pointed out that non-oil companies continued to