DUBAI: Bank Emirates NBD, the second lender in the United Arab Emirates (UAE), said on Wednesday that the adjusted Emirates NBD Dubai Economy Tracker Index fell to at 56.3 in July, down from 56.5 in June. The index is a survey-based indicator measuring activity in the emirate’s non-oil private sector economy. By sector, the wholesale and retail industry (index at 57.9) in Dubai was the best performing category, followed by travel and tourism (56.3) and the construction sector (54.8).
The survey covers the Dubai non-oil private sector economy, with additional sector data published for travel and tourism, wholesale and retail and construction. A reading of below 50.0 indicates that the non-oil private sector economy is generally declining; above 50.0, that it is generally expanding. A reading of 50.0 signals no change. Khatija Haque, Head of Middle East and North Africa Research at Emirates NBD, said “While the headline index continues to reflect strong growth in the non-oil economy in July, firms’ margins continue to be squeezed as they lower selling prices, particularly in the trade and hospitality sectors.” The expanding conditions have also not translated into higher demand in the labor market. “Employment growth remains soft overall,” said Haque. Oil revenues contribute about three percent to the Dubai economy. The emirate is the most diversified economy in the Gulf Arab region.