Uae Non-Oil Private Sector Soars In September As New Orders Surge

The United Arab Emirates (UAE) non-oil private sector exhibited remarkable growth in September, with an uptick in new client acquisitions, competitive pricing strategies, and robust economic conditions driving increased demand, according to a business survey released on Wednesday. The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) surged to 56.7 last month, up from August's figure of 55.0. The substantial 1.7-point rise in the headline index was primarily propelled by the New Orders sub-index, which soared by more than seven points, reaching its highest level since June 2019. Senior economist at S&P Global Market Intelligence, David Owen, commented on the positive development, stating, "The UAE PMI recorded its first uptick in three months in September, driven by a much sharper increase in new work intakes compared to the previous month. This upturn in new work was the most rapid since June 2019, bolstered by new client acquisitions within the domestic market and from export markets." Notably, new orders originating from foreign clients experienced a substantial uptick, marking the most significant increase in over four years. Concurrently, output saw accelerated growth, bolstering overall confidence. Robust input buying growth resulted in heightened cost pressures, although the pace of inventory and employment growth softened. Stocks increased marginally as companies experienced greater drawdowns to meet burgeoning new orders, consequently driving an upswing in purchasing activity. Concurrently, inflationary pressures, coupled with heightened demand for raw materials, led to increased costs of raw materials. As a result, both purchasing and overall costs witnessed a solid upturn, reaching their fastest pace in over a year, according to the report.