Good news for Dubai’s business owners. Business conditions are improving as the private sector recorded a rebound in the market last month, according to the latest monthly tracker from Emirates NBD.
An index reading of above 50 means that non-oil private sector economy is expanding – and as of March, the index rose from 48.9 to 52.5 in March. This is the fastest improvement in business conditions since November last year.
This is evidently due to the more favourable economic conditions have boosted business confidence, which has led to the launch of new projects and a recovery in clients’ willingness to spend.
And that means an increase in hiring.
“The Emirates NBD Dubai Economy Tracker survey for March suggests that after a slow and uncertain start to 2016, activity appears to have picked up at the end of Q1. Output and new order growth across key sectors were solid in March and firms were more optimistic about prospects for the coming year,” said Khatija Haque, head of MENA research at Emirates NBD.
Meanwhile, some firms also reported that their recent marketing and promotional strategies have resulted in stronger sales wins than expected.
Those who were surveyed also seemed more upbeat about the business outlook for the year ahead. Around one-third said they were confident that they’d see an upturn in business activity, while only 4% forecast a drop.
In terms of sectors, travel and tourism was the strongest performing category, followed by wholesale and retail and construction.