Dubai has one of the fastest developing economy rates and progress. The non-oil private sector recorded the fastest growth insights for business expansion in Dubai in nearly the past two years in August.
The sectors which have been delivering these results are travel and tourism. Since the COVID-19 pandemic, the economy has been unwinding massively and we can surely see the results of the surge.
Dubai Business Expansion Index
According to Dubai’s seasonally adjusted HIS market purchasing manager’s index has significantly increased to 53.3 in August from 53.2 in July. The index has registered a higher reading only once in the past 21 months, in April 2021. This was lower due to the business expansion problems earlier.
Increase in Employment With the Surge
The overall surge has led to an increase in the employment rate in companies in Dubai. Leading to the business expansion, the UAE has started its hiring processes due to an increase in demands.
“The economy is solidifying its recovery from the pandemic. This can be seen as a relaxation of the travel measures drove tourism numbers higher and boosted consumer demand,” says David Owen, Economists, IHS market.
The Impact of Expo 2020 on the Business Expansion
Expo 2020 has quickly improved the recovery of the UAE’s tourism, aviation, and hospitality sectors from the pandemic. This is because of the country’s effective management of COVID-19 and due to easing travel restrictions globally.
Tourism, hotel occupancy rates, and footfall at shopping malls improved because of the influx of tourists drawn to the Expo 2020, as reported by analysts.
With this, the pace of Dubai’s recovery has picked up on the back of wide-scale testing and vaccinations.
The key sectors having shown significant recovery in Dubai are tourism and property. They have gained an incredible recovery rate on the back of Dh 7.1 billion. The amount was pumped into the economy since the onset of COVID-19.
Another incredible insight is that 2022 calls for a spike of 4 percent in the increase of Dubai’s economy.
The Bright Future of Dubai
The output index of Dubai has jumped to its highest reading since September 2019, to signal an expansion in non-oil sectors. Companies have linked this to improving the new business volumes. However, the overall pace of the new order has grown slightly since the start of the third quarter, as shown by the HIS market data.
Also, as per the Abu Dhabi commercial bank, ease in travel restrictions to and from the UAE will boost the recovery of the country’s aviation and hospitality sectors this year.
With this, hotels in Dubai have also recorded a surge in occupancy rates in June. Eid staycations, a pick-up in regional travel, and hoteliers cutting prices to attract guests over were the motivating factors. Research by Emirates NBD and figures by the hospitality data and analytics specialists STR reported the same.
The output growth among Dubai’s construction companies has also been increasing exponentially to a 13-month high, as reported by the HIS market. The reason for this is that Dubai registered 5,780 property sales transactions worth Dh14.97 billion. This was driven by the demand in the secondary market making the best August in total sales since 2009, according to listings of the property finder.
The whole pattern of discovering new sectors attracts lots of tourism and investors in Dubai. In the span of the last two years, Dubai has improved its market massively. The city improved its export system proportionally to its revenue generation.