_Dubai offices market sentiment?

Business sentiment somewhat reflects this more positive backdrop, the Emirates NBD Dubai Economy Tracker Index (DET) stood at 55.3 in March 2018 which is well above the neutral 50 level indicating a strong expansion in the non-oil sector. However, despite this the DET shows that employment fell slightly in March.

May 14, 2018

Dubai’s GDP grew 2.8% in 2017, down from 3.1% from a year earlier, according to data from Dubai Statistics Centre. A slowdown in the annual percentage growth in three out of five of the largest economic sectors within Dubai has led to the overall growth rate slowing. On a broader level we have seen that of the 20 broad economic sectors in Dubai, 12 have seen the rate of growth slow in 2017 compared to a year earlier. On a more positive note, all sectors, bar financial and insurance activities which registered a flat growth rate, have recorded positive percentage growth over the year.

The outlook and sentiment for Dubai’s GDP in 2018 remains positive on the back of stronger global growth forecasts by the IMF, up 0.2% to 3.9% for both 2018 and 2019. Furthermore, whilst Dubai’s GDP is not as sensitive to a slowdown in the hydrocarbon sector compared to its regional peers, due to its diversified economic structure, the slowdown has affected ancillary businesses, which service this sector from Dubai given its regional hub and leading financial centre status. Therefore, the increase in oil prices to US$69.6 as at March 2018, up from US$53.7 a year earlier will help underpin economic growth this year.

Overall there is cautious optimism for Dubai’s economy with GDP growth forecast at 3.5% and employment growth forecast to increase to 1.6% in 2018, up from 0.7% in 2017.

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