https://arab.news/yj4ar
RIYADH: Growth in non-oil business activities in the UAE have resulted in the fastest job growth in seven years in the Emirates, a new report has revealed.
The latest S&P Global Purchasing Managers’ Index report noted the UAE’s PMI rose to 55.9 in March, from 54.3 in February.
According to the index, PMI readings above the 50-mark show non-oil private sector growth, while those below 50 signal contraction.
This came as the sector expanded at its strongest pace in five months.
“The latest PMI reading of 55.9 in March reflected concerted efforts by non-oil companies to boost their capacity levels in the face of strengthening demand conditions,” said David Owen, a senior economist at S&P Global Market Intelligence.
Driven by accelerated new order growth, the UAE’s employment index rose to the highest level since July 2016, the report added.
The rise in the employment sub-index is a strong indication of a solid boost to the workforce and it reflects the recent trend of improving demand conditions that led to a need for greater labor capacity.
Owen added: “The sub-indices for employment and stocks of purchases rose to 80 and 60-month highs respectively, signaling notable uplifts in staffing numbers and inventories in the latest survey period.”
The report further pointed out that the rate of new order growth picked up to a five-month high in March, driven by stronger market demand and rising tourist activities.
“Underlying the expansion was a robust increase in new order intakes, with the rate of growth accelerating to a five-month high, albeit remaining below the post-COVID peak seen in late-2021. Similarly, output levels expanded at the quickest rate for five months, while the outlook for future activity was up to the highest since last October,” added Owen.
The PMI report said non-oil private sector firms in the UAE were generally hopeful that continued market growth will provide increased opportunities over the next 12 months.
Earlier in March, the UAE Central Bank said the country’s economy is expected to expand 3.9 percent this year and 4.3 percent in 2024, while it grew 7.6 percent in 2022.
The Central Bank also added that the UAE’s non-oil gross domestic product is expected to accelerate by 4.2 percent in 2023 and 4.6 percent in 2024.