11 April 2016
After a slow start to 2016, Dubai's non-oil private sector business activity in March recorded its fastest growth for four months on the back of new project launches and a confident outlook for the rest of the year, according to the results of an industry survey released on Monday.

The monthly Dubai Economy Tracker Index, commissioned by Emirates NBD, Dubai's largest bank, recorded a figure of 52.5 in March, up from 48.9 in February and the fastest improvement in business conditions since November 2015.

The index analyses changes in output, new orders, job levels, suppliers' delivery times and stocks of purchased goods in the non-oil private sector. A figure of less than 50 indicates the sector is declining, while above 50 indicates expansion.

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"The Emirates NBD Dubai Economy Tracker survey for March suggests that after a slow and uncertain start to 2016, activity appears to have picked up at the end of Q1. Output and new order growth across key sectors were solid in March and firms were more optimistic about prospects for the coming year," Khatija Haque, head of MENA Research at Emirates NBD, said in a statement.

The survey of 600 private sector companies, carried out by market research firm Markit, found respondents were upbeat about the outlook for the rest of the year. A third of respondents forecast an upturn in business activity, while just 4 percent are anticipating a decline in market conditions by the end of 2016.

"Anecdotal evidence suggested that more favourable economic conditions, the launch of new projects and a recovery in clients' willingness to spend had all contributed to the rebound in overall business activity," the report said.

In terms of specific sectors, travel and tourism was the best performing, followed by wholesale and retail. Employment levels remained subdued during the third month of the year, but recorded the fastest growth rate since November 2015, the report said.

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(Writing by Shane McGinley)

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