UAE non-oil private sector growth at 30-month high

UAE non-oil private sector growth at 30-month high copy

DUBAI / WAM

Growth in the UAE non-oil private sector economy climbed to the fastest pace seen since February 2015, bolstered by sharp expansions in new orders and output, according to the latest UAE PMI survey.
The survey, sponsored by Emirates NBD and produced by IHS Markit, contains original data collected from a monthly survey of business conditions in the UAE non-oil private sector, and says that new export orders rose for the first time in three months, with other GCC countries being mentioned as key sources of international demand. The ongoing upturn in new business translated into job creation across the non-oil private sector, while increasing output requirements prompted firms to engage in purchasing activity, which contributed to
a record rise in inventories. Meanwhile, firms continued to face upward cost pressures.
In contrast, output charges
stabilised during August.
Commenting on the survey, Khatija Haque, Head of MENA Research at Emirates NBD, said, “The August PMI survey shows a strong expansion in the non-oil private sector, underpinned by sharply higher output, new orders and inventories. Firms have indicated that new projects and competitive pricing are supporting demand and activity in the non-oil sector. This is in line with our view that investment ahead of Expo 2020 will be the key driver of the UAE’s non-oil growth over the next few years.”

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