Business activity 'at all-time high' in November

04/12/2013 - Dubai Investment News Posted by Bob Brunskill
Business activity 'at all-time high' in November

Business activity in the UAE reached an all-time peak last month.

This is according to the country's purchasing managers' index (PMI), compiled by HSBC Holdings and Markit Economics, which measures non-oil economic data.

It found the PMI, which focuses on the performance of manufacturing, construction, retail and services sectors, jumped to 58.1 last month. This is up from 56.3 in October and is the highest result since the index started in August 2009.

Any figure above 50 represents growth, with anything below showing a decline.

These figures apply to the entire UAE but an argument can be made for Dubai as a leading business location, due to its many unique factors, strong tourism and large number of international corporations.

HSBC's senior economist Liz Martins said: "The reading is impressive, but not unexpectedly so. With the announcement that Dubai will host Expo 2020, and improved sentiment around the geopolitical situation, there is ample reason to believe that the strong performance seen in the UAE in 2013 will continue into 2014."

The volume of new orders also went up to an all-time high at 66.9, compared to  64.6 in October. Similar upturns were found in export orders, going from 58.9 to 59.3.

Furthermore, the PMI showed employment also improved across the country, reaching a five-month high at 53.6, up from last month's 52.7.

Dubai has a strong appreciation for airplanes and motor vehicles, each getting an important international biennial event within the city, and a number of manufacturers have set up shop in the city. It is no hard stretch to imagine the industry benefited from the wealthy people both visiting and living in the city, with this becoming a potential factor behind the PMI's strong results.

For example, during this year's Dubai Motor Show, it was announced the emirate would manufacture the Lykan Hypersport, a luxury sports vehicle said to reach 60 miles per hour in 2.8 seconds. Yet with a price tag of at least $3.4 million (£2 million) per vehicle, it's easy to see why business is booming in Dubai.