Wholesale and retail market index good news for UAE 3PLS in 2019
Overall growth of Dubai’s non-oil private sector economy quickened in January and firms were at their most optimistic regarding future growth prospects since at least 2012, according to the Emirates NBD Dubai Economy Tracker Index.
Crucially for UAE-based 3PLs in the FMCG sector, the wholesale & retail sector saw the strongest overall improvement in business conditions at the start of 2018, rising to 56.3 on the index.
The seasonally adjusted Emirates NBD Dubai Economy Tracker Index is a composite indicator designed to give an accurate overview of operating conditions in the non-oil private sector economy.
A reading of below 50.0 indicates that the non-oil private sector economy is generally declining; above 50.0, that it is generally expanding. A reading of 50.0 signals no change.
The latest figure signalled the strongest overall improvement in the business climate since last June. It was above both the trends for 2018 as a whole (55.0) and the long-run series history (55.2, since January 2010).
“The Dubai Economy Tracker has started the year on a positive footing, climbing from 53.7 in December to 55.8 in January, the highest level in seven months,” said Khatija Haque, head of MENA Research at Emirates NBD.
“This marks a recovery from the weak growth in Q4 2018 – the slowest expansion in the non-oil private sector since Q1 2016 – and reaffirms our view that the Dubai economy will strengthen in 2019, owing to greater government spending and ongoing Expo preparations,” Haque added.
“The outperformer of the three sectors individually measured in the survey was wholesale and retail, which rose to the highest level since August 2018, but construction and travel and tourism both also saw improvements on recent months.”