Riyadh: UAE Non-Oil Private Sector Sees Strong Growth in March
Business conditions in the UAE non-oil private sector showed significant improvement in March, with optimism levels hitting a six-month high, according to a recent survey.
The latest S&P Global Purchasing Managers’ Index reported a PMI of 56.9 for the UAE in March, slightly down from February’s 57.1 but still well above the 50-point mark indicating expansion in activity.
Senior economist David Owen from S&P Global Market Intelligence commented on the findings, stating, “The overall outlook for the UAE non-oil private sector remained positive at the end of the first quarter. The PMI reading of 56.9 in March highlighted a strong improvement in business conditions, with order book inflows and activity levels continuing to rise significantly.”
The survey also revealed that businesses in the Emirates were facing challenges such as administrative delays and increased supply constraints due to the Red Sea shipping crisis. This led to a rapid accumulation of backlogs of work, matching the fastest pace in the survey’s 15-year history.
Despite concerns over the growing backlogs, Owen pointed out that once these issues are resolved, the pent-up demand could further boost activity growth in the sector.