Dubai’s Purchasing Managers’ Index (PMI) soared to 55.5 in March, a 33-month high, according to a statement released this week, a 1.4-point rise compared to February’s figure of 54.1.

The PMI increase is accredited to a more robust new business intake, stronger supplier performance and future activity confidence. The majority of this is associated with easing Covid restrictions.

Dubai’s travel, tourism and construction sectors all reported a strong growth in activity, with a rally in international tourism, as a result of Expo 2020, coupled with a rise in the number of construction projects, reports Arab News.

Furthermore, there was improved overall vendor performance thanks to inventories increasing for the first time in a matter of months, and a fall in supplier lead time.

Although there was a substantial increase in input prices – particularly for energy and raw materials – selling prices reduced as firms forecast a sales recovery.

"The Dubai PMI moved clear of its previous post-lockdown high in March, registering the strongest performance in the non-oil sector since June 2019. The result rounded off another strong quarter in which relaxed pandemic measures and the Expo 2020 have brought increased economic activity and tourism demand,” said David Owen, and economist at S&P Global.

"Output growth in both the travel & tourism and construction sectors also quickened to the highest since June 2019, with the latter driven by a strong drive among contractors to complete outstanding projects. Wholesale & retail activity likewise rose to a greater extent than in February,” he went on to add.

In addition, following the fast uptick in business conditions, Dubai businesses were confident activity would increase over the next year to March. Optimism rallied for the second consecutive month to the highest since December, surpassing the average from 2021, Khaleej Times reports.