Dubai’s Economy Starting to Heal, Still ‘Long Way From Recovery’

A gauge of business conditions in Dubai bounced back to the highest since the coronavirus pandemic dragged the economy into a downturn, even as weak demand still stands in the way of a recovery.

The IHS Markit Dubai Purchasing Managers’ Index rose to 46 in May from a record low 41.7 in April, remaining below the 50 mark that separates contraction from growth. Thanks to a relaxation of lockdown measures, output and new orders declined at a slower rate, while unemployment had the smallest drop in three months, according to a report on Tuesday.