UAE non-oil growth fastest since 2015: Survey
A survey, sponsored by Emirates NBD and produced by IHS Markit, revealed that 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.
“The PMI report, showing that the index rose to 57.3 in August, from 56.0 in July, is very good news for the UAE economy, when you consider that any figure above 50.0 indicates growth. To achieve 57.3 suggests that the local economy is building a high level of momentum,” Jameel Ahmad, Chief market analyst at FXTM, tells AMEinfo.
“Even more impressive is the news that growth in the UAE non-oil private sector increased at its fastest pace since February 2015,” he adds.
Success away from oil
New export orders rose for the first time in three months, with other GCC countries being mentioned as key sources of international demand.
Moreover, the ongoing upturn in new business translated into job creation across the non-oil private sector. 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.
“When you consider that the UAE has been under pressure to prove that it can diversify away from reliance on oil, these numbers show that the UAE economy is successfully diversifying and this should support GDP growth,” notes Ahmad.
When the UAE PMI survey was launched this September, 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…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.”