Tough times for Dubai’s private sector

This content was originally posted in 7DAYS UAE website at: Tough times for Dubai’s private sector Dubai’s private sector recorded its weakest growth in the past five and half years last month, faced with a strong US dollar and regional and global economic uncertainty. The Emirates NBD Dubai Economy Tracker Index, a survey designed to give an overview of operating conditions in the non-oil private sector economy, posted at 51.8 in December, down from 53.4 in November. The growth rate is the lowest since July 2010, with slower increases in business activity, new orders and employment all weighing on the headline index at the end of the year. Khatija Haque, Head of MENA Research at the UAE’s biggest bank, said: “The slower rate of expansion in Dubai in December is unsurprising given the headwinds of a strong US dollar and increased uncertainty about both the global and regional economic outlook.” The index indicated a modest improvement in overall operating conditions as it posted two points less than 50 mark expansion. The index is derived from individual indices that measure changes in output, new orders, employment, suppliers’ delivery times and stocks of purchased goods. Both construction and wholesale and retail businesses saw a slower improvement in overall business, while the health, travel and tourism sector registered stronger expansion in December. “Nevertheless, the improvement in tourism sector activity in December is encouraging,” said Haque. “Construction sector output also expanded at a robust pace in December, and we continue to expect this sector to be a positive contributor to Dubai’s economic growth in 2016.” However, the payroll growth weakened across both travel and tourism and construction companies, while staff numbers were broadly unchanged across the wholesale and retail sector. business@7days.ae Read the original story at: Tough times for Dubai’s private sector