Dubai’s non-oil private sector holds steady in August

Dubai’s non-oil private sector continued to grow at the same pace in August from the previous month, on the back of higher output and new orders. However, the pace of job creation was marginal, according to the Emirates NBD Dubai Economy Tracker Index.

“The Dubai Economy Tracker survey shows continued expansion of the economy last month, at a similar rate to June and July,” said Khatija Haque, head of Mena research at Emirates NBD. “Output and new orders have increased sharply, although this has not translated into significant jobs growth.”

The composite index for August, a key measure of the emirate’s non-oil economic health, remained unchanged at 56.3. A reading above 50 indicates general expansion.

The rate of inflation weighed on input prices, which rose for the 18th consecutive month. Costs for raw materials increased based on an uptick in demand, while greater cost burdens were recorded across all three sub-sectors covered in the survey. Inflation also hit output charges, although marginally. Last month was the second increase in output prices in 13 months, with the travel and tourism sector offsetting reductions from the construction and wholesale and retail sectors.

Business activity and inflows of new work softened last month compared to July, while business optimism recorded the strongest levels since May. There are also new orders in the pipeline as further improvements in market demand improve conditions, according to panellists.

A three-year lull in oil prices has led to an economic down turnaffecting some industries more than others. How ever, Dubai’s economic diversification has enabled it to weather the reverberations of declining oil revenues.