Export orders placed with UAE’s private sector entities made its biggest gain in three months during August, while there were also signs of slight job increases, according to the latest Emirates NBD survey.
All of this was reflected in growth for the UAE’s non-oil private sector category putting in the fastest rate since February 2015. The bulk of the export orders were coming from some of the other Gulf countries.
“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,” the survey notes.
On the downside, private businesses continue to face upward cost pressures, but there was some stabilisation over the last month.
“The August purchasing managers’ index survey shows a strong expansion in the non-oil private sector, underpinned by sharply higher output, new orders and inventories,” said Khatija Haque, Head of MENA Research at Emirates NBD.
“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.”
The survey contains data collected from a monthly survey of business conditions in the UAE non-oil private sector. The seasonally adjusted Emirates NBD UAE Purchasing Managers’ Index climbed to a 30-month high of 57.3 in August from 56.0 in July.