Non-Oil Sector The Purchasing Managers’ Index (PMI) records the UAE’s non-oil sector with its second-best reading in over four years, setting a positive tone for the start of 2024.
“Upbeat Growth Amid Economic Strength”
Amid optimistic growth projections, the Central Bank of the UAE and international institutions report exceptionally strong economic trends throughout the end of 2023.
“S&P Global UAE PMI Surge”: Non-Oil Sector
The S&P Global UAE PMI rises from 57.0 to 57.4 in December, propelled by a sharp increase in new business intakes, driving expanded output levels and reinforcing positive economic indicators.
“Optimism Amid Softening Price Pressures”
Softening of price pressures, coupled with mild wage increases, leads firms to offer promotions and maintain competitive prices, supporting optimism despite crowded markets.
“Private Sector Health: Robust Improvement”
The PMI signals a robust improvement in the health of the non-oil private sector, marked by substantial increases in output and new orders, contributing to the strongest quarterly upturn since Q2 2019.
“Central Bank’s Upward Revision”: Non-Oil Sector
The Central Bank of the UAE’s upward revision of the non-oil growth forecast to 5.7%, compared to the previous 4.3%, underscores the ongoing robustness of private sector economic activity.
“Bullish Outlook and Resilience”
Ehsan Khoman, MUFG head of research – Commodities, expresses a bullish outlook, anticipating continued strength in non-oil activity, supported by a well-established infrastructure and services exports.
“Tourism Sector Rebounds”
Despite global challenges, the UAE’s tourism sector, contributing over 16% to the GDP, rebounds and surpasses pre-pandemic levels, contributing to the overall economic resilience.
Conclusion: “Positive Momentum for Non-Oil GDP”
Analysts and economists foresee sustained momentum in the UAE’s non-oil GDP, driven by increased business confidence, government reforms, and growing household spending, painting a positive economic outlook for the foreseeable future.
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