Economy
Dubai’s Economic Hopes Flying High

(Bloomberg) — Dubai’s latest growth spurt is coming with a sharp discount.
Business conditions in the emirate’s non-oil private sector improved at the fastest rate in over four years in April as companies led by wholesalers and retailers offered lower prices to win orders, the seasonally adjusted Emirates NBD Dubai Economy Tracker Index showed on Thursday.
Read more: Warren Buffett Bets on Dubai Property
The gauge rose to 57.9 from 57.6 in March, edging further above the threshold of 50 that separates contraction from growth. The 12-month outlook for activity climbed to the strongest since the data series began in 2010.
“This growth in the volume of activity appears to be underpinned by price discounting, rather than an improvement in underlying demand,” said Khatija Haque, head of Middle East and North Africa research at Dubai’s biggest bank. “As a result, firms are reluctant to boost hiring and consumers are likely to remain cautious.”
The reliance on price discounts and promotions highlights the fragility of Dubai’s economy after notching its weakest expansion in almost a decade in 2018. Growth is set to accelerate this year and next before slowing in 2021, according to projections released last month by the city’s department of economic development.
Read more: Dubai Counting on Retail, Tourism to Break Out of Economic Funk
Other highlights from the report:
- Incoming new business surged at the fastest rate since January 2015 in April; new sales growth at wholesalers and retailers reached a record high Prices charged for goods and services slumped at the fastest rate since last November, dropping for the 12th month running.
- Discounting was “notably strong” in the wholesale and retail as well as construction industries.
- Travel and tourism also improved after companies reduced charges while construction witnessed its strongest discounting since February 2017.
- The improving prospects aren’t enough to convince all employers to hire.
- Jobs declined in the construction and travel and tourism sectors, and “rose only slightly” in wholesale and retail
-
News2 months ago
OpenAI Strengthens ChatGPT’s Mental Health Safeguards Ahead of GPT-5 Launch
-
OER Magazines1 month ago
Dossier – ToP 25 Personalities 2025
-
Dossier1 month ago
Arabic Dossier – ToP 25 Personalities 2025
-
Banking & Finance2 months ago
Strong Performance and Strategic Approach: ahlibank announces Its Financial Results for the First Half of 2025
-
Alamaliktistaad Magazines1 month ago
Al-iktisaad, August 25
-
News1 month ago
xAI Open-Sources Grok 2.5, Signaling Accelerated AI Push
-
Economy2 months ago
Najla Zuhair Al Jamali Appointed President of bp Oman
-
News2 months ago
Ooredoo Wins Silver Stevie® Award for Diversity and Inclusion Excellence
You must be logged in to post a comment Login