Dubai's business conditions hit two-year high in October on Expo 2020 boost


Deena Kamel
  • English
  • Arabic

Dubai's non-oil economy continued to grow in October, with business conditions registering the sharpest improvement in two years, boosted by a strong rebound in new orders and Expo 2020 reviving tourism.

The seasonally adjusted IHS Markit Dubai Purchasing Managers' Index surged to 54.5 in October, from 51.5 in September, the highest level since October 2019. A reading above 50 indicates economic expansion while one below points to a contraction.

"Dubai began the fourth quarter of the year in a strong position, with PMI data signalling the fastest rise in new orders for two years as Expo 2020 brought increased client demand and tourist numbers," David Owen, an IHS Markit economist, said. "The initial surge in sales contributed to a sharp expansion in activity, suggesting that the economy is well on the way to recovering from the pandemic."

More than three in four companies in Dubai expect Expo 2020 to benefit their business in the fourth quarter of 2021, according to a survey by the Dubai Chamber of Commerce and Industry. Business confidence in the emirate reached its third-highest level in 10 years as companies begin to feel the positive impact of the world's fair that began on October 1, the Business Leaders’ Outlook for Q4 2021 survey said.

Following a slight fall in September, new business volumes rose in October at the quickest growth rate since October 2019, according to the survey.

The recovery in tourism as flights resumed was a key factor behind the upturn, as visitor numbers surged amid the opening of the Expo 2020 in October 1, according to the companies surveyed.

Client orders both domestically and abroad increased, although the rise in export sales was the least marked for three months.

Firms' output expanded to strongest levels since July 2019 because of a sharp uplift in demand.

Growth accelerated across key sectors of Dubai's economy, including construction, travel, tourism and wholesale and retail, according to the survey.

The findings validate the trend in the hospitality industry. Hotels in Dubai recorded a surge in occupancy rates in September, boosted by the easing of travel restrictions and the countdown to Expo 2020 in October, according to hospitality data and analytics specialist STR. The average occupancy rate rose to 67.2 per cent in September, jumping 51 per cent compared to the same month in 2020. September's performance is also a month-on-month increase from occupancy rates of 58 per cent in August and 53.9 per cent in July.

The retail and wholesale sector recorded the biggest rise from September, according to the IHS Markit survey. Construction firms continued to see the strongest overall speed of recovery.

Despite the uptick in business conditions in October, the pace of employment was only marginal. Staff hiring was partly linked to a rise in backlogs of work, which was solid despite easing slightly from the previous month.

"With tourism reviving and capacity pressures growing, this will likely improve in the coming months," said Mr Owen.

Dubai-based firms' confidence in future output improved sharply in October, as the strong rebound in sales gave companies increased optimism that the economy would quickly recover from the Covid-19 pandemic.

Overall expectations were at their highest since March 2020, although they "remained weak compared to pre-Covid levels", according to the survey.

Scores in brief:

  • New Medical Centre 129-5 in 17 overs bt Zayed Cricket Academy 125-6 in 20 overs.
  • William Hare Abu Dhabi Gymkhana 188-8 in 20 overs bt One Stop Tourism 184-8 in 20 overs
  • Alubond Tigers 138-7 in 20 overs bt United Bank Limited 132-7 in 20 overs
  • Multiplex 142-6 in 17 overs bt Xconcepts Automobili 140 all out in 20 overs
UAE currency: the story behind the money in your pockets
MATCH INFO

Newcastle United 3
Gayle (23'), Perez (59', 63')

Chelsea 0

RESULTS

Bantamweight: Jalal Al Daaja (JOR) beat Hamza Bougamza (MAR)

Catchweight 67kg: Mohamed El Mesbahi (MAR) beat Fouad Mesdari (ALG)

Lightweight: Abdullah Mohammed Ali (UAE) beat Abdelhak Amhidra (MAR)

Catchweight 73kg: Mosatafa Ibrahim Radi (PAL) beat Yazid Chouchane (ALG)

Middleweight: Yousri Belgaroui (TUN) beat Badreddine Diani (MAR)

Catchweight 78KG: Rashed Dawood (UAE) beat Adnan Bushashy (ALG)

Middleweight: Sallah-Eddine Dekhissi (MAR) beat Abdel Enam (EGY)

Catchweight 65kg: Yanis Ghemmouri (ALG) beat Rachid Hazoume (MAR)

Lightweight: Mohammed Yahya (UAE) beat Azouz Anwar (EGY)

Catchweight 79kg: Souhil Tahiri (ALG) beat Omar Hussein (PAL)

Middleweight: Tarek Suleiman (SYR) beat Laid Zerhouni (ALG)

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MATCH INFO

West Ham United 2 (Antonio 73', Ogbonna 90 5')

Tottenham Hotspur 3 (Son 36', Moura 42', Kane 49')

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MATCH INFO

Tottenham Hotspur 1
Kane (50')

Newcastle United 0

Ultra processed foods

- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns 

- margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars;

- energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces

- infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes,

- many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts.

MATCH INFO

What: 2006 World Cup quarter-final
When: July 1
Where: Gelsenkirchen Stadium, Gelsenkirchen, Germany

Result:
England 0 Portugal 0
(Portugal win 3-1 on penalties)

Meydan racecard:

6.30pm: Al Maktoum Challenge Round 2 (PA) Group 1 | US$75,000 (Dirt) | 2,200 metres

7.05pm: UAE 1000 Guineas (TB) Listed | $250,000 (D) 1,600m

7.40pm: Meydan Classic Trial (TB) Conditions $100,000 (Turf) 1,400m

8.15pm: Al Shindagha Sprint (TB) Group 3 $200,000 (D) 1,200m

8.50pm: Handicap (TB) $175,000 (D) 1,600m

9.25pm: Handicap (TB) $175,000 (T) | 2,000m

10pm: Handicap (TB) $135,000 (T) 1,600m

The specs

AT4 Ultimate, as tested

Engine: 6.2-litre V8

Power: 420hp

Torque: 623Nm

Transmission: 10-speed automatic

Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)

On sale: Now

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Pharaoh's curse

British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.

If you go

Flying

Despite the extreme distance, flying to Fairbanks is relatively simple, requiring just one transfer in Seattle, which can be reached directly from Dubai with Emirates for Dh6,800 return.

 

Touring

Gondwana Ecotours’ seven-day Polar Bear Adventure starts in Fairbanks in central Alaska before visiting Kaktovik and Utqiarvik on the North Slope. Polar bear viewing is highly likely in Kaktovik, with up to five two-hour boat tours included. Prices start from Dh11,500 per person, with all local flights, meals and accommodation included; gondwanaecotours.com 

Results:

First Test: New Zealand 30 British & Irish Lions 15

Second Test: New Zealand 21 British & Irish Lions 24

Third Test: New Zealand 15 British & Irish Lions 15

Brief scores:

Newcastle United 1

Perez 23'

Wolverhampton Rovers 2

Jota 17', Doherty 90' 4

Red cards: Yedlin 57'

Man of the Match: Diogo Jota (Wolves)

WOMAN AND CHILD

Director: Saeed Roustaee

Starring: Parinaz Izadyar, Payman Maadi

Rating: 4/5

Updated: November 09, 2021, 8:50 AM`