Skip to content Skip to Search
Skip navigation

UAE businesses buoyed by rising demand in April

By Gavin Gibbon
Abu Dhabi by night: the UAE non-oil sector is optimistic about continued growth Unsplash/Kamil Rogalinski
The UAE has pledged to invest up to $30 billion in the Asian country
  • PMI survey revealed 30% of firms saw new orders pick up
  • Improving trade drives confidence towards future activity
  • Economy forecast to grow at 3.3% in 2023

The UAE witnessed its fastest growth in new business for 18 months in April spurring a rise in non-oil business activity across the country.

The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) for April hit 56.6, up from 55.9 the previous month, the highest in six months and just short of the post-pandemic peak of 56.7 recorded in August last year.

The sub-index for new orders rose to 59.9 last month from 56.2 in March, attributed largely to domestic demand.

“The UAE PMI rose for the third month running in April to signal an even stronger rate of expansion across the non-oil economy, driven by rapidly increasing new orders and retreating inflationary pressures,” said David Owen, senior economist at S&P Global Market Intelligence.

The business survey revealed that 30 percent of businesses in the country saw new orders pick up compared to March.

Strengthening demand conditions contributed to improvements in purchasing and confidence levels during April. 

On the purchasing side, the data signalled a steep increase in input buying that was much sharper than in the previous month. 

“This supported a robust uplift in total inventories that was only slightly weaker than March’s five- year high,” the report said.

Employment numbers also increased in April, although at a slower rate compared to the seven-year record reported in March.

The survey revealed increased optimism among UAE businesses, reaching the highest level for seven months, buoyed by improving economic conditions, increased construction activity and greater marketing spending.

“Rising demand and rapid capacity improvements helped to drive confidence towards future activity higher for the fourth successive month and to its strongest level since September 2022,” added Owen.

The UAE economy, the GCC’s second biggest, is forecast to grow at 3.3 percent in 2023, down from the 4.1 percent foreseen in October.

Latest articles

Cargo is loaded onto an aeroplane. The Middle East-Europe route accounts for 5% of global traffic

Middle East-Europe is ‘fastest-growing route for air cargo’

The Middle East-Europe route for air cargo was the fastest growing in the world in October, according to International Air Transport Association figures.  Annual growth in cargo tonne-kilometres stood at 15.3 percent in October, IATA said. The global average is 9.8 percent and the Middle East average is 4.5 percent. The Middle East-Europe route has […]

Solar panels near Nanchang, China; Acwa Power wants to acquire clean power assets with a value of up to 20GW

Acwa Power plans to invest $50bn in China by 2030

Saudi energy company Acwa Power plans to invest up to $50 billion in renewable energy projects in China, a senior executive said on Tuesday.  Lyu Yunhe, Acwa Power’s head of China operations, said they aim to work with Chinese state-owned companies to acquire clean power assets with a value of up to 20GW and an additional 1 […]

Tunisian prime minister Kamel Madouri speaks in parliament during a session to discuss the 2025 budget

Tunisia seeks $2.2bn from central bank to repay debts

Tunisia’s central bank will provide $2.2 billion to the government to help repay debts next year, according to news reports. The funding follows the parliamentary approval of a budget law amendment that allows the government to borrow directly from the central bank. This marks the second instance within a year of the government tapping the central […]

The Jumeirah Thanda Island hotel is on a remote island in a protected private marine reserve off the coast of Tanzania

Jumeirah enters Africa to expand hotel portfolio

Jumeirah, a member of Dubai Holding, has partnered with South Africa’s Thanda Group to expand the luxury brand into Africa, as it aims to diversify its portfolio of destinations. The companies have launched a private island and safari reserve. The Jumeirah Thanda Island, a villa retreat, is located on a remote island in a protected […]