There has been a strong rebound in the travel and tourism sector which helped push up business activity in May.
Business conditions in Dubai have risen to a near three-year high, according to the latest report into business activity by S&P Global.
There has been a strong recovery in the travel and tourism sector which helped boost the monthly Dubai Purchasing Managers’ Index (PMI) to 55.7 in May, up from 54.7 in April. These figures are for the non-oil private sector economy.
The latest reading was the highest since June 2019 as business conditions in Dubai continue to improve, although cost pressures quickened across the non-oil economy driven by ongoing volatility in global energy markets.
David Owen, an economist at S&P Global Market Intelligence, said: “May’s PMI data for the Dubai non-oil economy had two prominent findings: firstly, that global energy market volatility drove cost inflation to an over four-year high; and secondly, that a fast-recovering tourism sector is now masking weak performances in the rest of the economy.”
The report said that there was a considerable disparity in sales performance across the different sectors.