RSS   Newsletter   Contact   Advertise with us

UAE non-oil private firms boost exports, job creation

Staff writer ▼ | September 5, 2014
The monthly HSBC United Arab Emirates (UAE) purchasing managers index (PMI) expanded in August at the second quickest pace in the survey's history, HSBC said.
United Arab Emirates   The HSBC UAE PMI expanded
The HSBC UAE PMI expanded in August to 58.4 points, up from 58.0 in July. A level above 50 indicates that the non-oil private sector economy is expanding and vice versa.

Simon Williams, chief economist Middle East and North Africa at HSBC, said the UAE economic boom was "in full flow" albeit business risks were on the rise. Earlier in June, the international monetary fund raised the economic growth forecast for the UAE economy (oil plus non-oil) to 4.5 percent.

In the whole UAE, inflow of new businesses and payroll numbers increased solidly, said the report which is based on a survey among non-oil non-public firms in the Gulf Arab state, a major oil supplier. Export volumes were at "record high."

"Just under one-quarter of survey respondents reported output growth, while only three percent reported contraction," the report added. Improved business conditions and rising demand from international markets were driving the surge. This triggered a rise in input costs as firms increased their charges for the first time in five months.