The United Arab Emirates’ non-oil business sector experienced a resurgence in August 2024, following a slight dip in the previous month.
This positive trend is evident in the seasonally adjusted S&P Global purchasing managers’ index (PMI) reading, which climbed to 54.2 in August from 53.7 in July.
Businesses across the UAE expressed optimism about their prospects for the coming year, with many anticipating sustained growth in output. The rebound in August can be attributed to several factors, including a surge in new orders, improved business conditions, and rising employment levels. In Dubai, the non-oil private sector witnessed a particularly strong uptick in August. The emirate’s PMI reading recorded a significant increase, primarily due to a faster rise in new business inflows. This indicates that demand for goods and services in Dubai is on the rise, bolstering the local economy.
While the non-oil sector is experiencing a positive trajectory, businesses in the UAE continue to face upward pressure on input costs. Despite a slight easing in August, prices for raw materials and other inputs remain elevated, which can impact profitability. However, many companies are able to pass on these increased costs to their customers through higher selling prices.
The UAE’s economy has demonstrated remarkable resilience in recent years, with the non-oil sector playing a crucial role in its diversification efforts. The rebound in August further underscores the country’s economic strength and its ability to navigate global challenges.
As the UAE continues to invest in key sectors such as tourism, technology, and logistics, it is well-positioned to capitalize on emerging opportunities and drive sustainable growth. The positive outlook for the non-oil business sector bodes well for the UAE’s overall economic prospects in the coming months and years.
Sources and related content
UAE’s non-oil business activity rebounds after July slump | The National
United Arab Emirates Non-Oil Private Sector PMI – Trading Economics
Purchasing Managers’ Index™ (PMI™) Dataset | S&P Global Marketplace
Purchasing Managers’ Index™ (PMI™) data – FAQ | S&P Global
