Many businesses in the past mostly considered the summer months in Dubai a quieter period, however, the tide has turned. The latest purchasing managers index (PMI) by S&P Global reports a sharp expansion across the wholesale & retail, travel & tourism, and construction sectors.
The Dubai PMI rose to 56.4 in July from 56.1 in June, growth has ‘strengthened five times in the past six months’, according to the latest PMI data. This emphasizes the resilience of the non-energy private sector economy by showing the best performance since June 2019.
The resounding economic upturn is reflected also in the 25 percent increase in new trade licenses issued year on year. Dubai issued 45,653 new business licenses in the first half of 2022, compared to the first half 2021 when 36,647 licenses were issued.
Synergy also has seen a marked increase in the number of enquiries and trade licenses we have issued for our clients, underpinning the growth reported in the latest S&P report.
Aside from new trade licenses being issued, existing companies in Dubai are hiring more employees, a trend that has been increasing since January 2021. “The rate of job creation (in July) was the joint fastest registered in 2022 so far,” said S&P Global in the update.
“All three key sectors registered higher employment in July, with the sharpest increase in travel and tourism.”
It is safe to say that the annual summer slowdown in Dubai is officially a thing of the past, at least for now. The future is looking bright for the non-oil private sectors, with optimism and sentiment at an all-time high.
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