Skip to content Skip to Search
Skip navigation

UAE non-oil business surges to four-year high

Khalifa Port in Abu Dhabi. There is confidence that non-oil business will continue to grow, says S&P Wam
Khalifa Port in Abu Dhabi. The emirate reported 2.8% growth in real GDP over the first nine months of 2023 year on year

Non-oil business activity in the UAE grew at the fastest pace in four years in October, spurred by a surge in new orders, according to a new survey published on Friday.

The latest S&P Global UAE Purchasing Managers’ Index (PMI) increased to 57.7 last month, from 56.7 in September, its highest level since June 2019. Any figure above 50 represents economic growth.

The new orders index posted its strongest reading since June 2019, fuelled by strong demand, new clients and more project work.

The upturn was strong both domestically and overseas, with foreign new orders also growing at the fastest rate for more than four years.

“High business confidence levels suggest that companies do not expect this momentum to lose steam, as predictions for the year ahead were the second-strongest since March 2020,” said David Owen, senior economist at S&P Global Market Intelligence.

Inventory and staffing growth underpinned improved capacity levels in October, helping companies to make a renewed cut to backlog volumes. 

“Despite demand pressures and reports of administrative delays, outstanding work decreased for the first time since June 2021,” the report said.

Overall input costs rose at the fastest rate since July 2022 driven up by rising fuel and raw material prices, while the greater cost of living and efforts to retain staff contributed to a modest rise in wages.

“There were some indications that inflationary pressures are picking up and starting to influence company’s pricing strategies,” Owen cautioned.

The UAE’s non-oil sector grew by 5.9 percent in the first six months of the year.

Latest articles

The Khazna facility will raise utility Ewec’s total installed solar PV capacity to 5.5 gigawatts

Developers sought for Abu Dhabi’s Khazna solar plant

Emirates Water and Electricity Company (Ewec) is seeking developers to build a 1,500 megawatt solar power facility in Abu Dhabi as the emirate ramps up its green energy drive. The utility has issued a request for proposals to qualified companies that have expressed interest in developing the Khazna Solar Photovoltaic project. A total of 27 […]

Turkey textiles

Hit by rising costs, Turkey’s textile producers move overseas

Textile manufacturers in Turkey, struggling with pricing pressures and labour costs, are moving their operations overseas, although at least some in the sector see a turnaround by the year’s end. The Istanbul Chamber of Industry sectoral purchasing managers’ index for March showed sentiment among textile manufacturers was the lowest among the 10 sectors covered by […]

Mubadala-backed Getir weighs asset sales

Turkey’s grocery delivery startup Getir is considering asset sales as part of its ongoing restructuring talks, according to a media report. The company, operating in five markets, including the UK, aims to sell off assets such as US online grocer FreshDirect, acquired last year, and BiTaksi, a ride-hailing app in Turkey, Sky News reported, citing unnamed […]

The total value of projects under construction in Masdar City is estimated at AED1 billion

Masdar City has up to $1bn of projects at design phase

Masdar City, Abu Dhabi’s sustainability-focused urban community, is working on projects in critical sectors of the UAE, backed by investments of between AED3 and AED4 billion ($817 million and $1 billion). The projects include energy, artificial intelligence (AI), space, life sciences and agriculture, the UAE state-run Wam news agency reported, quoting CEO Ahmed Baghoum. He […]