Dubai’s non-oil private sector growth eases as demand cools

Dubai’s non-oil private sector growth eases as demand cools

A survey of firms in Dubai's non-oil private sector showed that demand growth cooled slightly leading to a smaller increase in new business, although output levels expanded.

The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) dipped from the ten-month high of 56.9 in June, to 55.7 in July.

The survey covers the Dubai non-oil private sector economy, with additional sector data published for travel & tourism, wholesale & retail and construction.

"After ticking up to a ten-month high in June, there was nonetheless a cooling of demand growth, with each of the three key sectors monitored - construction, wholesale & retail and travel & tourism - reporting a weaker rise in new business," said David Owen, Senior Economist at S&P Global Market Intelligence.

While non-oil firms reported a sharp uplift in new business intakes, continuing the trend of expansion seen since October 2021, some panellists indicated that competitive conditions had dampened sales. The slowdown was across the three focus sectors, with wholesale & retail reporting the softest rise in sales since March, the survey report said.

Travel & tourism remained the strongest performing sector in terms of demand growth, while construction was the weakest.

Improvements in supply chains helped keep cost pressures mild in