As per the latest finding of IHS Markit, Employment in Dubai was notably affected, with companies reporting the joint-quickest fall in job numbers seen throughout the 10-year series history. The business growth in the city has slowed down and various sectors have been struggling.
In January, the operating conditions in Dubai’s non-oil private sector worsened 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. Further, wholesale and retail, as well as construction, slipped below the no-change mark. Even Dubai’s travel and tourism industry showed a “modest improvement” in January. And now with the viral outbreak in China it could suffer more.
The blur business outlook for Dubai is now translating into layoffs as companies streamline operations in the face of weak demand. A few days back, in February, Abu Dhabi Bank PJSC announced that it may cut hundreds of jobs, as sluggish growth weighs on the finance industry. Other banks, including Dubai’s biggest bank, Emirates NBD have also been shedding staff.
On the contrary, in other news, Dubai issued 4,076 new business licences during January leading to 10,782 jobs as the emirate continued to enhance its appeal as a destination for sustainable business growth. While the industries are struggling, efforts are being made to take a grip of the situation and improve both the business as well as employment conditions in Dubai.
However, Khatija Haque, head of Middle East and North Africa research at Emirates NBD believes that it might take some time for the jobs market to pick up. Let’s wait and watch how companies and government work together to improve the situation and empower the workforce with more and better job opportunities. The emirate has the upcoming World Expo exhibition to count on as well.