Dubai Purchasing Managers’ Index rose to 51.7 last month, climbing from June’s mark of 50 that separates growth from contraction. Businesses in Dubai are benefiting from the lifting of lockdown restrictions, with foreign visitors allowed to enter the Middle East’s commercial hub from July 7. The United Arab Emirate has kept contagion in check after easing many of the measures imposed to stop the disease. Companies also saw additional sales as international flights began to operate again and tourist venues reopened.
Labor market and corporate sentiment painted a less upbeat picture as firms still look to cut back on costs. Employment fell for a fifth consecutive month in July. Optimism that activity will raise in the next 12 months weakened for the first time since April, with IHS Markit finding a wider disparity among businesses over whether they expect to recover output by next summer.