Wednesday, 17 August, 2022
HomeEconomyDubai’s jobs are vanishing at the fastest pace in a decade

Dubai’s jobs are vanishing at the fastest pace in a decade

Across the U.A.E., as a whole, business conditions fell into contraction last month for the first time ever.

Text Size:

Dubai: Business growth in Dubai stalled while jobs disappeared at the fastest pace in at least a decade in the latest signs of strain on the Middle East’s commercial hub.

Operating conditions in Dubai’s non-oil private sector worsened in January for a third straight month to the lowest level in nearly four years, according to IHS Markit. Its Purchasing Managers’ Index dropped to 50.6, barely above the threshold that separates growth from contraction. Wholesale and retail, as well as construction, slipped below the no-change mark, IHS Markit said.

“Employment in Dubai was notably affected, with companies reporting the joint-quickest fall in job numbers seen throughout the 10-year series history,” David Owen, economist at IHS Markit, said in the report Monday. “Firms expect little pick-up in sales in the near future.”

The dim outlook is increasingly translating into layoffs as companies streamline operations in the face of weak demand, with average prices extending a decline uninterrupted since May 2018. Dubai’s biggest bank, Emirates NBD, is among lenders in the United Arab Emirates that have cut thousands of jobs.

Across the U.A.E. as a whole — of which Dubai is a part — business conditions fell into contraction last month for the first time ever.

Already under pressure from regional geopolitical tensions, Dubai’s travel and tourism industry actually showed a “modest improvement” in January, IHS Markit said. But now it faces disruptions because of the viral outbreak in China.

Expo Hopes

Dubai can’t afford a downturn in tourism, however, since the city’s prospects hinge on the success of its much-awaited World Expo exhibition later in 2020.

The emirate’s spending this year is set to soar 17% ahead of the event, with the economy expected to expand 3.2%. A survey during the last quarter of 2019 published by the local government showed that three-quarters of consumers are confident of improvements in the employment situation during the next 12 months.

Read: Dubai’s Jobless Recovery Adds Asterisk to Biggest Spurt in Years

Still, it might take some time for the jobs market to pick up, according to Khatija Haque, head of Middle East and North Africa research at Emirates NBD. “The coronavirus will likely weigh on transport, logistics and tourism — in the first quarter at least,” she said. – Bloomberg


Also read: Dubai faces a ‘disaster’ from overbuilding


 

Subscribe to our channels on YouTube & Telegram

Support Our Journalism

India needs fair, non-hyphenated and questioning journalism, packed with on-ground reporting. ThePrint – with exceptional reporters, columnists and editors – is doing just that.

Sustaining this needs support from wonderful readers like you.

Whether you live in India or overseas, you can take a paid subscription by clicking here.

Support Our Journalism

4 COMMENTS

  1. I live in Dubai. I don’t understand where this story happened. My wife decided recently to change here job. Within January, she had 7 offers. She is going through the steps of choosing……

  2. Abeer attacking dubai in bloomberg , here and everywhere….same unreliable selective stories…. different sh..t same source

Comments are closed.

Most Popular

×