Dubai's private sector growth slows in December: ENBD

Non-oil private sector growth in Dubai eased in December though total activity continued to rise at a strong overall pace, Emirates NBD said on Wednesday.

The seasonally adjusted Emirates NBD Dubai Economy Tracker Index fell to 53.7 last month from 55.3 in November, its second-lowest reading in over two years, signaling relatively “muted non-oil growth”. A level above 50 means business is expanding and below 50, contracting.

New business increased at the second-slowest rate in over two years and employment remained broadly unchanged. Inflationary pressures remained weak as input costs rose modestly and firms continued to cut their charges.

All three of the key monitored sectors – construction, wholesale & retail and travel & tourism – registered slower improvements in business conditions last month. 

Output remained solidly expansionary, with over a quarter of respondents seeing greater activity, while nearly a third of firms saw greater new orders, in a positive for future output, said Khatija Haque, Head of MENA Research, Emirates NBD.

According to the bank, majority of companies expect future conditions to improve, with only 5.3 percent expecting a deterioration over the next 12 months.