Increased demand for new work is creating a buoyant private sector in the emirate, as the non-oil economy continues to expand.
- Dubai’s property sector is currently enjoying a three month winning streak
- Rising sentiment across the retail, construction and travel and tourism sectors continues to ease the emirate’s dependency on the oil sector
- Dubai is preparing to host Expo 2020 which will bring 25 million visitors to the region
The future continues to look bright for long-term economic growth in Dubai.
Private sector activity in the city showed more “robust improvement” in May for the third consecutive month. The latest Emirates NBD Dubai Economy Tracker Index, an indicator of the growth and conditions of Dubai’s non-oil private sector economy, last month stood at 54.5, the most significant uplift in performance since August 2015.
Output from the wholesale and retail sector was the strongest of Dubai’s three key private sub-sectors, followed by the construction sector. Travel and tourism also posted an overall uplift in business conditions. Job numbers across the private sector also continued the growth curve they’ve now enjoyed each month since December 2011.
These latest results have increased optimism levels with business leaders across the city.
Khatija Haque, Head of MENA Research at Emirates NBD, said: “The improvement in the Dubai Economy Tracker in May was due mostly to strong growth in output and new work, which is encouraging as it suggests that demand remains robust.”
Dubai is currently preparing for Expo 2020, the first time the world event has been held in the Middle East. 25 million people from across the world will visit Dubai, and the event will create 277,000 new jobs across the city’s private sector.
Some property experts in Dubai believe that the economic impact of Expo 2020 will drive property values in some of the city’s most popular districts by 35-50%.