Last Updated on: 23rd July 2023, 09:35 pm
Dubai is Experiencing Unprecedented Growth in The Job Market
According to the S&P Global UAE Purchasing Managers’ Index (PMI) report, the non-oil business sector in Dubai has experienced the fastest growth rate since September 2022. March PMI came in at 55.5 compared to 54.1 in February, suggesting expansion in the sector.
The report also highlighted multi-year records in job creation and inventory growth. However, despite the sharp rise in new orders, the S&P saw the growth rate slow to a 14-month low.
In addition, job growth, manufacturing, and inventory purchases were the main contributors to the improvement in Dubai’s non-oil sector. The Dubai PMI rose to 55.5 in March from a 12-month low of 54.1 in February.
David Owen, an economist at S&P Global Market Intelligence, said the rise in the PMI was due to companies’ efforts to increase supply in response to the rapidly growing level of activity. This suggests that companies are taking steps to prepare for future growth and maintain momentum.
Data also showed that construction companies in Dubai posted a notable rise in production expansion in March, the highest since September, on a surge in new orders.
This led to an acceleration in job creation, inventories, and job growth which was the fastest since January 2018.
To meet the demands of new and ongoing projects, companies bought more commodities, causing their inventories to grow at the fastest pace since May 2018.
Efforts by vendors to improve vendor delivery times have been largely unsuccessful, with only slight improvements from February’s record 3.5 years ago.
Building materials prices have also risen, prompting companies to offer discounts to keep sales going. However, prospects for future business are not optimistic, with only 10% of survey respondents expecting production growth over the next year.
Also Read: Real Estate Transactions in Dubai Exceed $24,000 Mln in The First Quarter Of 2023