The United Arab Emirates’ (UAE) non-oil private sector experienced its most significant growth in seven months in September, largely due to a sharp increase in new business.
The S&P Global UAE Purchasing Managers’ Index (PMI), a key measure of economic health, rose to 54.2 in September from 53.3 in August. This jump, while still below the survey’s long-term average, signals a strong rebound in demand following a low point in July.
Key Drivers and Trends
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New Business Inflow: Over 30% of surveyed companies reported higher new orders, driving sales growth sharply up from a four-year low in August. This positive momentum was primarily powered by domestic demand, as growth in export sales was less pronounced.
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Purchasing Activity: Purchasing by businesses increased in September, rebounding after a rare decline in August. However, this increase was relatively modest, as firms mentioned that high stock levels and cost concerns were limiting their buying.
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Employment: Companies hired new staff at the fastest rate since May, though the overall increase in employment remained modest.
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Outlook: Businesses remain optimistic about the next 12 months, although their overall confidence dipped slightly from the ten-month high recorded in August.
Dubai’s Performance
Mirroring the national trend, Dubai’s non-oil companies also saw a significant boost in sales. The Dubai PMI climbed from 53.6 in August to 54.2 in September, with the pace of sales growth accelerating to an eight-month high.
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