The non-oil private sector economy in Dubai continued to thrive in January, with business activity expanding for nine consecutive months due to increased consumer demand and employment in the emirate. Despite a slight decrease in the S&P Global purchasing managers' index to 54.5 in January (from 55.2 in December), the reading remained well above the 50 threshold, signaling sustained economic growth.
The Gulf state, a key OPEC producer, has invested heavily in transport and logistics infrastructure, and expanded economic partnerships to diversify away from hydrocarbons and towards becoming a global trade hub. Non-oil exports grew 6% in 2022 from the previous year to 366 billion dirhams.
Why it matters
Dubai's economy expanded by 4.6 per cent on an annual basis in the first nine months of 2022, with wholesale and retail trade accounting for 24.1 per cent of its gross domestic product, according to the Dubai Statistics Centre data. Emirates NBD, estimates Dubai's full-year 2022 growth at 5 per cent. It expects the emirate’s GDP to grow by 3.5 per cent in 2023.