The latest S&P PMI report paints a picture of a Dubai economy that continues to soar, despite some softening in growth rates compared to the previous month. Analysts at S&P Global note that the overall activity levels remain on a robust upward trajectory. Inventories are increasing at an unprecedented pace, indicating sustained momentum in the non-oil private sector.
The report highlights strong demand, new client acquisitions, and increased project work as key drivers of this expansion in economic activity. This positive trend builds upon the momentum achieved in 2022 when Dubai’s economy expanded by 4.4%, and it’s forecasted to grow by 3.5% in 2023.
Dubai’s ambitious 10-year plan to double its economy underscores its commitment to diversification and reducing reliance on oil revenue. With revenues increasingly derived from non-oil sectors such as tourism and finance, Dubai is positioning itself as a global economic powerhouse.
While the PMI for November slightly decreased from the previous month, indicating a moderation in demand momentum, key indicators such as output and inventories remain robust compared to historical trends. Despite concerns about market competition and a softer sales environment, firms are still optimistic about future growth prospects.
The PMI serves as a vital tool for tracking changes in output, new orders, employment, and other economic indicators. Although November saw a slight dip in the headline index for the first time in three months, it still reflects a strong expansion in the non-oil private sector, maintaining a positive streak since December 2020.
Overall, while there may be some challenges ahead, Dubai’s economy continues to exhibit resilience and dynamism, laying a solid foundation for future growth and prosperity.