UAE’s Non-oil private sector companies recorded strong growth in April thanks to improved demand and a rise in the PMI index.
The health of non-oil private sector companies
Non-oil private sector companies in the UAE experienced strong growth in April due to improved demand from the sector’s customers and lower prices.
The Purchasing Managers’ Index (PMI) stabilized, ending seasonal variations. All while rising 0.7 in one month, just above the post-pandemic peak of 56.7 experienced last year.
According to the report, the increase was primarily due to faster growth in the number of new businesses.
“The UAE PMI rose for the third consecutive month in April, signaling an even stronger rate of expansion in the non-oil economy, thanks to rapidly rising new orders and receding inflationary pressures. The relatively moderate increase in business spending has encouraged a number of businesses to offer price promotions,” said economist David Owen.
Since November 2021, the UAE has seen demand rise, improving market conditions and resulting in strong sales optimization.
A year and a half into this economic climate, the results are still positive, with companies reinforcing their strategies with extensive price promotions.
High demand requires improved management and increased inventory capacity, resulting in the creation of a multitude of positions to meet consumer demands.