The Dubai Non-Oil Economy Surges to 10-Month High

The Dubai Non-Oil Economy

The purchasing managers index indicates a sharp surge in new businesses since August 2022 with sustained growth in overall activity. The Dubai non-oil economy rose to a 10th-month high in June, which had been elevated by an upsurge in sales and new orders as demand growth increased rapidly. The statistics show the S&P global Purchasing Managers index increased from 55.3% to 56.9% from May to June. This is to be marked as the strongest overall surplus seen since August 2022 from the non-oil sector.

Demand continued its upward trend for the 21st consecutive month, with June witnessing a notable increase of 1.6 points, the highest surge since October 2021. Sectors like construction, wholesale & retail and travel & tourism experienced accelerated growth. The strong demand led to ongoing job creation as employment rose for the fourteenth consecutive month, marking the longest period of continuous job creation in Dubai over six years.

Dubai’s economy expanded by 4.6% year over year in the first nine months of 2022, with wholesale and retail trade accounting for 24.1% of GDP. Likewise, Dubai International Airport surpassed pre-pandemic traffic levels, handling 21.2 million passengers in quarter 2023, up 55.8% from quarter 2022.

Dubai’s property market rebounded strongly after the pandemic-induced slowdown due to several government initiatives. These include granting residency permits to retirees and remote workers, expanding the 10-year golden visa program and benefiting from the economic gains generated by Expo 2020 Dubai and higher oil prices. According to official data, the first quarter of 2023 witnessed robust growth in Dubai’s property market. 

Dubai Real Estate Surges 80% in Transactions

Total transaction value surged by an impressive 80 percent year-on-year, reaching Dh 157 billion ($42.75 billion). Concurrently, the number of transactions rose significantly by 49 percent, totaling 38,715. These figures indicate a thriving real estate sector, reflecting increased investor confidence and market activity. In May 2023 Dubai oversaw 11,700 property transactions worth AED 34 Billion. This data highlights Dubai’s position as an attractive destination for high-value real estate investments and further solidifies the city’s robust non-oil sector growth. In addition, Dubai also launched Economic Agenda D33 to increase the size of Dubai’s economy by twice its current value over a period of the next 10 years. 

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