Emirates NBD: Dubai economy's June '19 growth led by construction
Construction output rose at a record pace in June 2019 even as selling prices and employment declined during the period
Research conducted by banking group Emirates NBD has shown that Dubai’s construction sector drove growth for the emirate’s economy in June 2019, with construction output rising at a “record pace” in the month, pushing the headline index to a seven-month high.
Emirates NBD said it expected strong growth from the construction sector in 2019 and H1 2020 as contractors aim to finish projects before Expo 2020 Dubai.
Its data also showed an acceleration in new orders in Q2 2019, and a decline in selling prices for the fourth month in a row was attributed to the rise in new work.
The report was compiled by Emirates NBD’s head of research for the Mena region, Khatija Haque, who said that despite a rebound in new work and a sharp rise in activity in June, employment in the construction sector declined for the third month in a row.
Haque added: “This highlights the focus on efficiency and productivity in an environment of declining selling prices and margin compression for many businesses.
“Nevertheless, firms in the construction sector remain extremely optimistic about their output over the next year.”