Business activity in the UAE’s non-oil private sector expanded at the strongest pace in five months, as new orders increased and employment in the Arab world's second-largest economy in March grew at the fastest rate since 2016.
The seasonally adjusted S&P Global Purchasing Managers’ Index climbed to 55.9 in March from 54.3 in February, well above the neutral 50 mark that separates growth from contraction.
The latest reading signalled a “sharp and quicker improvement” in the health of the sector.
The increase in the index was the largest month-on-month uplift since October 2021, with all five sub-components providing a “positive directional influence”, according to the survey.
"The latest PMI reading … reflected concerted efforts by non-oil companies to boost their capacity levels in the face of strengthening demand conditions,” said David Owen, senior economist at S&P Global Market Intelligence.
“The sub-indices for employment and stocks of purchases rose to 80 and 60-month highs respectively, signalling notable uplifts in staffing numbers and inventories in the latest survey period."
The rise in the employment sub-index signalled a solid boost to the workforce and reflects the recent trend of improving demand conditions as well as new business that led to a “need for greater labour capacity”.
Underlying the expansion of the Emirates' private sector non-oil economy in March was the robust increase in new order intakes, with the rate of growth accelerating to a five-month high. It was, however, below the post-Covid peak seen in late 2021, Mr Owen said.
The rate of new order growth highlighted stronger market demand and increased tourism. The upturn was predominantly driven by domestic sales, while the overall export business was broadly stable in March following a three-month sequence of declines.
The increase in new orders led companies to increase their output, with the rate of expansion broadly unchanged from February. However, with demand improving and some of the businesses surveyed reporting delays in the recruitment, outstanding business volumes rose to the greatest extent since October last year, the survey said.
After growing 7.6 per cent last year, the highest in 11 years, the UAE economy is expected to expand 3.9 per cent this year and 4.3 per cent in 2024, the UAE Central Bank said in March.
Non-oil gross domestic product and oil output were estimated to have grown 6.6 per cent and 10.1 per cent, respectively, last year.
The robust economic growth last year in non-oil GDP was driven by the property, construction, manufacturing and travel and tourism sectors, which are expected to continue driving the economy this year.
Non-oil GDP is expected to accelerate by 4.2 per cent in 2023 and 4.6 per cent in 2024, according to the Central Bank. Oil GDP is forecast to grow 3 per cent in 2023 and 3.5 per cent next year.
First Abu Dhabi Bank forecasts the UAE's hydrocarbon and non-hydrocarbon real GDP growth at 5.4 per cent and 4.7 per cent, respectively, this year.
The UAE, where non-oil foreign trade hit a record Dh2.23 trillion ($607.1 billion) last year, aims to double the size of its economy by 2030.
The country is working towards signing 26 comprehensive economic partnership agreements to attract investment and diversify its economic base.
In the latest PMI survey, non-oil businesses signalled improved inventories build-up in March as data indicated the fastest expansion in stocks of raw materials and semi-finished products in five years. The upscaling of inventory levels partly reflected efforts to take advantage of a mild cost environment in line with modest inflation.
The outlook for future activity in the country's non-oil economy also strengthened to a five-month high in March and was "aligned with the average sentiment level seen since Covid-19".
Companies surveyed were generally optimistic about continued market growth and increased opportunities over the next 12 months.
The biog
Birthday: February 22, 1956
Born: Madahha near Chittagong, Bangladesh
Arrived in UAE: 1978
Exercise: At least one hour a day on the Corniche, from 5.30-6am and 7pm to 8pm.
Favourite place in Abu Dhabi? “Everywhere. Wherever you go, you can relax.”
Tank warfare
Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks.
“There clearly remains a significant armoured heavy ground manoeuvre threat in this world and maintaining a world class armoured force is absolutely vital,” the general said in London last week.
“We are developing next generation capabilities to compete with and deter adversaries to prevent opportunism or miscalculation, and, if necessary, defeat any foe decisively.”
Killing of Qassem Suleimani
The years Ramadan fell in May
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Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
Sri Lanka World Cup squad
Dimuth Karunaratne (c), Lasith Malinga, Angelo Mathews, Thisara Perera, Kusal Perera, Dhananjaya de Silva, Kusal Mendis, Isuru Udana, Milinda Siriwardana, Avishka Fernando, Jeevan Mendis, Lahiru Thirimanne, Jeffrey Vandersay, Nuwan Pradeep, Suranga Lakmal.
SUZUME
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MATCH INFO
Uefa Champions League semi-finals, first leg
Liverpool v Roma
When: April 24, 10.45pm kick-off (UAE)
Where: Anfield, Liverpool
Live: BeIN Sports HD
Second leg: May 2, Stadio Olimpico, Rome
Scoreline
UAE 2-1 Saudi Arabia
UAE Mabkhout 21’, Khalil 59’
Saudi Al Abed (pen) 20’
Man of the match Ahmed Khalil (UAE)
Water waste
In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.
Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.
A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.
The Emirates is the world’s third largest per capita water consumer after the US and Canada.
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'Top Gun: Maverick'
Rating: 4/5
Directed by: Joseph Kosinski
Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris
RESULTS
6.30pm Handicap (TB) $68,000 (Dirt) 1,200m
Winner Canvassed, Par Dobbs (jockey), Doug Watson (trainer)
7.05pm Meydan Cup – Listed Handicap (TB) $88,000 (Turf) 2,810m
Winner Dubai Future, Frankie Dettori, Saeed bin Suroor
7.40pm UAE 2000 Guineas – Group 3 (TB) $125,000 (D) 1,600m
Winner Mouheeb, Ryan Curatolo, Nicholas Bachalard
8.15pm Firebreak Stakes – Group 3 (TB) $130,000 (D) 1,600m
Winner Secret Ambition, Tadhg O’Shea, Satish Seemar
9.50pm Meydan Classic – Conditions (TB) $$50,000 (T) 1,400m
Winner Topper Bill, Richard Mullen, Satish Seemar
9.25pm Dubai Sprint – Listed Handicap (TB) $88,000 (T) 1,200m
Winner Man Of Promise, William Buick, Charlie Appleby
Killing of Qassem Suleimani
Results
5pm: Handicap (PA) Dh80,000 1,400m; Winner: Faiza, Sandro Paiva (jockey), Ali Rashid Al Raihe (trainer).
5.30pm: Handicap (TB) Dh90,000 1,400m; Winner: Greeley, Connor Beasley, Helal Al Alawi.
6pm: Emirates Fillies Classic Prestige (PA) Dh100,000 1,600m; Winner: Marzaga, Jim Crowley, Ana Mendez.
6.30pm: Emirates Colts Classic Prestige (PA) Dh100,000 1,600m; Winner: Jawaal, Jim Crowley, Majed Al Jahouri.
7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 1,600m; Winner: AF Ashras, Tadhg O’Shea, Ernst Oertel.
7.30pm: Handicap (PA) Dh80,000 2,200m; Winner: Somoud, Richard Mullen, Ahmed Al Mehairbi.
Veere di Wedding
Dir: Shashanka Ghosh
Starring: Kareena Kapoo-Khan, Sonam Kapoor, Swara Bhaskar and Shikha Talsania
Verdict: 4 Stars
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UAE currency: the story behind the money in your pockets
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
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UAE currency: the story behind the money in your pockets
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