UAE’s Private Business Activity Rose in May

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Activity in United Arab Emirates’ private business sector registered a three-month high in May, reported HSBC. That was due to a jump in the number of the orders, as well as that of the output.

According to HSBC, PMI (the Purchasing Managers’ Index) increased greatly last month, reaching 55.3. In comparison, in April 2013, UAE’s PMI was estimated at 54.

Experts explain that a rate of more than 50 is a sign for an expanding activity. In addition, the readings from May are actually the highest since last February.

Private-owned firms from the non-oil sector also saw a rise in their output rates. The growth was equal to 22% which again speaks of an expansion. Another 17% of them state that last month they enjoyed more business opportunities from outside the United Arab Emirates.

Employment levels were also found to have increased. In addition, salaries in the country continued to rise, making May the 17th consecutive month in which this was registered.

From HSBC inform that the economic growth in the UAE was seen all through 2013. According to the bank, the fact that May was one of the strongest for the country’s economy means that this tendency will not only be preserved, but it will also further spread. Moreover, the growth is predicated to continue even during UAE’s slow summer season.

Another key reason for the economic growth in the United Arab Emirates is the high confidence among the private-owned non-oil companies in the country. This trust is one of the main factors that stimulated the rising amount of output and the orders in the private business sector in and outside the UAE. However, the better market conditions also played an important role in the economic jump.

While the UAE is at the top of its strength, other Gulf countries did not do so well last month. Among them, for instance, is Saudi Arabia which witnessed a slowdown in its Purchasing Managers’ Index. In May, the country’s PMI dropped with 0.7, hitting 57.3.

HSBC concludes that 2013 is currently a better year for the United Arab Emirates compared to 2012. The UAE is also described as “impressively resilient” since it is marking a growth when even when the most powerful countries are experiencing economic difficulties. The only downtrend this year in the United Arab Emirates is that oil prices will continue to fall.

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