Business conditions in the UAE’s non-oil private sector continued to develop strongly in February, showing considerable momentum. The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI), which reflects the most recent data, stayed constant at 55.0.
This number, which is significantly higher than the neutral threshold of 50, indicates that the industry is doing well thanks to a notable rise in new business and output levels. The findings for February show a steady increasing trend in the non-oil sector after a peak in December, according to David Owen, senior economist at S&P Global Market Intelligence.
Although businesses are negotiating a terrain of fierce competition and rising prices, the PMI number of 55.0 indicates continued expansion,” he said. Compared to January, just 5.0 per cent of surveyed enterprises reported a fall in activity, whereas 29 per cent recorded an increase in February. Improved market conditions, successful advertising campaigns, and lessened pressure on output prices were the main drivers of this business boom.
Despite this encouraging trend, businesses nevertheless had to contend with some obstacles, chief among them being competition from both domestic and foreign markets, dampening investor confidence and limiting price increases. Order book volumes increased sharply due to the rise in company activity.
Even while the rise was robust, it appeared to be slowing down compared to January’s numbers. Some development potential has been stifled by domestic and international competition, underscoring the need for businesses to innovate and quickly adjust to changing market conditions.
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