Dubai Economy: Moving Further Away From Oil
Perhaps one of the most common concerns that investors have when thinking about investing in Dubai is that it relies too heavily on oil exports and income.
It’s a fair concern and one that other oil-rich economies also face. Saudi Arabia and Qatar have, for example, also been attempting to move their economies away from too much reliance on oil production, but not quite as successfully as Dubai and the UAE.
Dubai has put a particular emphasis on tourism, culture, and new business, with many moving to the city to make the most of the luxurious surroundings and impressive cityscape that’s been the subject of huge development just in the last 10 years.
Dubai economy is booming
In February, there was further good economic news as Dubai’s non-oil private sector economy experienced its quickest growth in nearly four years, driven by ‘sustained economic momentum’ that led to higher employment rates.
According to the seasonally adjusted S&P Global Dubai Purchasing Managers’ Index (PMI), the reading surged from 56.6 in January to 58.5 in February, remaining comfortably above the neutral 50-point threshold that separates economic expansion from contraction.
This matched the same figures reported in May 2019, marking the joint-highest recorded in over nine years, showing impressive growth outside of the oil industry.
Employment activity maintained growth last month, with the rate of job creation reaching its highest point since August 2015.
David Owen, Senior Economist at S&P Global Market Intelligence, was reported as saying, “The Dubai PMI suggests that the Dubai non-oil economy is growing rapidly so far this year, positioning it as one of the fastest-growing sectors globally according to global PMI data.”
Businesses attributed the high performance to increased economic output, signalling the quickest growth in eighteen months. Enhanced market conditions and expanded project work were cited as key drivers behind heightened output levels in February.
Investing in Dubai property
It backs up the theory that Dubai is growing its property industry and market to rival that of the established areas of Europe and the US.
With much more economic activity outside of the oil industry there is an acceptance that Dubai is now becoming a key destination for investment not just in property but across tourism and the wider economy.
With such high economic growth comes more inward economic migration, with workers from all over the world now looking for opportunities to live and work in one of the world’s most revered cities.
As such, off-plan property building is booming and so is interest in property investment. If you’re interested in seeing what’s available then why not get in touch with us today?
