- Dubai – Wael Al-Khatib
Date: August 12, 2020 Dubai’s non-oil economy grew in July and the PMI rose to 51.7 last month, up 1.7 points from the June level of 50, which separates growth from contraction, according to IHS Markit.
According to the report, the gains in production and new business were behind the first growth in the non-oil economy in 5 months, and the rate of production growth was the fastest in 2020 so far, indicating that the construction, wholesale and retail sector led the rise. The travel and tourism sector also achieved the first rise in activity since February, and stocks rose stronger. Rate since last December.
Most of the sectors recorded gains in July, the highest since last February, leaving the recovery area on the index recorded in June to the recovery zone. The most prominent increases came on the sub-indices of the construction sector, which rose to 58 points, trade (57 points) and tourism (55 points).
David Owen, economist at IHS Markit, said that the index data for July indicated the start of the recovery after ‘Covid 19’. He added that companies in Dubai are benefiting from the lifting of the restrictions of the ban, in light of allowing foreign visitors to enter the city from July 7. The IHS Market survey team cited an increase in consumer demand as restrictions were lifted and companies saw additional sales, as international flights resumed operations and attractions reopened.