Dubai – Mubasher: The Emirates NBD Dubai Economy Tracker Index, an indicator of the operating conditions in the emirate’s non-oil private sector economy, rose to 57.6 points in May from 53.9 in April.
The wholesale and retail sector recorded 58.3 points, while travel and tourism hit 57.3 in the fifth month of the year, according to a survey released by Emirates NBD and IHS Markit.
“The sharp rise in the Dubai Economy Tracker index supports our view that growth in Dubai will be faster this year relative to 2017,” head of MENA research at Emirates NBD Khatija Haque commented.
“But the headline reading masks the squeeze on profit margins which is also evident in the survey data,” she added.
The Dubai non-oil private sector’s output grew in May, marking a 40-month high, while business activity also registered a month-on-month rise, the survey found.
"Despite steep increases in activity and new work, firms hired additional staff at only a fractional pace in May. Many respondents indicated that employment growth was restricted due to efforts to contain costs," the report indicated.
Meanwhile, investor morale and positive expectations regarding Dubai’s economy were higher in May, Emirates NBD’s data showed.
