Dubai’s non-oil economy

 Dubai's non-oil private sector economy has recorded a five-month high as output expanded on stronger increases in both jobs and inventories. This growth is due to the emirate's seasonally adjusted S&P Global purchasing managers' index reading in March, which jumped to 55.5, remaining well above the neutral 50 mark separating expansion from contraction.

According to data from the emirate's statistics center, Dubai's economy expanded by 4.6% on an annual basis in the first nine months of 2022. Wholesale and retail trade accounted for 24.1% of its gross domestic product.

Emirates NBD estimates Dubai's full-year 2022 growth at 5%, and expects the emirate's GDP to grow by 3.5% in 2023. This growth is attributed to the strong rebound of the tourism sector, which is a key component of the emirate's economy.

Hotels in Dubai ended 2022 with a strong performance across industry metrics in December, as tourists flocked to the city after travel restrictions eased. The cooler weather and new year celebrations have attracted visitors to the emirate, further boosting the tourism sector.

Businesses registered the fastest acceleration since May 2018 in stocks of inputs, as firms purchased greater volumes of raw materials to service new and current projects, according to the latest PMI survey. This expansion is also attributed to supplier delivery times shortening as vendors worked to tighter customer requirements.

The overall rise in business expenses was modest and remained softer than the long-run trend. Output prices fell for the eighth month running, as businesses cited efforts to offer price discounts to customers and maintain robust sales volumes.

The strong performance of Dubai's non-oil private sector economy is a positive sign for the emirate's economic growth, with the tourism sector playing a crucial role in this expansion. The increase in jobs and inventories further reflects the expansion in various sectors, which is expected to continue into 2023.