uae nonoil sector rebounds
Last Updated : GMT 00:41:51
Arab Today, arab today
Arab Today, arab today

UAE non-oil sector rebounds

Arab Today, arab today

Arab Today, arab today UAE non-oil sector rebounds

UAE non-oil sector
Abu Dhabi - Arab Today

The UAE's non-oil private sector regained some of the lost growth momentum in July as business conditions improved at a faster pace in the emirate, a corporate survey revealed.

Latest data showed that business activity growth in the UAE's non-oil private sector rebounded last month from a 22-month low in June as output and new orders rose at sharper rates, contributing to a robust overall improvement in business conditions.

The seasonally-adjusted Emirates NBD UAE Purchasing Managers' Index, which covers manufacturing and services, rose to 55.8 points last month from 54.7 in June. A level above 50 indicates expansion and below 50, contraction. The output sub-index also rose sharply to 60 points in July from 57.5 in June, while the new orders sub-index climbed to 60.2 from 57.7 points. "July's PMI is another indication that growth in the UAE's non-oil economy is proving resilient in the face of a challenging regional and global economic environment," said Jean-Paul Pigat, senior economist at Emirates NBD.

The survey, sponsored by Emirates NBD and produced by Markit, said growth at the start of third quarter was broadly in line with the average seen over the second quarter (56 points), but remained weaker than the trend recorded so far this year (56.8).

"The rebounds in output and new orders were particularly encouraging, and we expect this momentum to continue through the remainder of 2015," Pigat said.

Job creation was also sustained at a solid pace as non-oil private sector employment in the UAE continued to increase in July, marking a 43-month period of job creation. The rate of hiring was unchanged from June's solid pace, and remained in line with the average noted over six years of data collection. A number of panellists associated workforce growth with the start-up of new projects.

"The rebound in non-oil sector was expected by government and private businesses alike. The IMF has in fact positively revised the non-oil GDP growth for UAE to 4.4 per cent this year and 4.5 per cent next year in view of the Dubai's thrust for the core service sectors and diversification for non-oil sectors by Abu Dhabi. This change in the outlook will bring about positive sentiments in the business community," Atik Munshi, managing partner, Horwath Mak, told Khaleej Times.

Dr Preeta George, acting dean and professor of economics at SP Jain School of Global Management, said the rebound of the non-oil private sector in July after the holy month of Ramadan is a normal phenomenon, but it is of particular significance this year given the dip in oil prices and its expected impact on the growth of the economy which is revised downwards to 3.2 per cent.

Referring to the IMF, she said the non-oil economy is estimated to grow by 4.4 per cent this year and this will provide a cushioning effect to growth. "This has been possible due to the growing importance of this sector and can be attributed to UAE's pioneering efforts towards diversification. With several projects lined up to meet the 2020 deadline, the non-oil sector is poised to play a significant role in UAE's growth story."

On the price front, data highlighted divergent trends in July. The rate of cost inflation picked up to the quickest since February, while charges fell for the fifth time in the past six months. The survey said cost pressures intensified in July, amid faster rises in both purchase prices and salaries. The rate of input price inflation picked up to a five-month high, but remained subdued relative to the series average.

Prices charged by non-oil private sector companies decreased in July. Although marginal, the latest fall was the fifth in the past six months. Some firms saw their pricing power diminish as they attempted to secure new business. "Dubai and other emirates have tried to reduce their reliance on oil revenues and have taken measures to boost the service and manufacturing sectors," Munshi said.

He said the service sector is expected to see a major positive change for the UAE in the near future, where its contribution to the gross domestic product is anticipated to improve substantially.

"This is a sign of that the economy is moving towards being mature. The sentiment of the market will further improve if the overall market size of the UAE escalates. Once we reach near World Expo 2020 the economy is likely to be even better," he said.
Source: Khaleej Times

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

uae nonoil sector rebounds uae nonoil sector rebounds

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

uae nonoil sector rebounds uae nonoil sector rebounds

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Japanese regulators raid Airbnb

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Saudi, Bahrain target Iran

GMT 00:48 2017 Monday ,20 November

Saudi, Bahrain target Iran
Arab Today, arab today Europe turns on Facebook, Google

GMT 02:26 2017 Monday ,20 November

Europe turns on Facebook, Google
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Driverless, electric future just round

GMT 02:45 2017 Monday ,20 November

Driverless, electric future just round
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Mona Abdel Ghany increased artistic activities

GMT 12:15 2017 Friday ,17 November

Mona Abdel Ghany increased artistic activities
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 02:28 2017 Saturday ,18 November

Anti-drug operation nets 4 tonnes

GMT 01:34 2017 Friday ,17 November

Banyan Tree Phuket Takes Festive Season

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday