Dubai business growth back to pre-covid path – report

Business activity in Dubai rose to the highest level since late 2019 after a rebound in tourism and a fast distribution of coronavirus vaccines.

The private sector, excluding oil, grew for a fifth-straight month in April, according to IHS Markit. Its Purchasing Managers’ Index for the Middle East’s main business hub rose to 53.5 from 51 in March, staying above the 50-mark that separates growth from contraction and signaling significant economic expansion.

“The recovery in the Dubai non-oil economy sped up in April, as output and new order growth returned to pre-Covid trends and business confidence strengthened,” said David Owen, an economist at IHS Markit. “Travel and tourism firms recorded the most notable bounce in performance, amid increasing hopes of a rise in tourism activity later in the year, boosted by the rapid vaccine roll-out.”

More from IHS Markit:
– Dubai’s PMI was at the highest level since November 2019.

– Growth in sales was the quickest since October 2019.

– An index tracking new orders showed the biggest increase in a year and a half, lifted by business optimism about the coming year.

– Firms raised their output for a fifth month, as the rate of expansion accelerated to the highest since July 2020.

– Staff numbers increased for three out of the last four months, showing efforts to rebuild capacity.

– The outlook for the year ahead improved, with positive sentiment rising to the highest since March last year.

In the overall UAE, of which Dubai is a part, business conditions have also been improving.

Inoculation efforts in the Arab world’s second-largest economy and a recovery in oil prices have led to a rebound following last year’s downturn.