The UAE private sector is witnessing a strong improvement in business conditions at the beginning of the second quarter – local economy

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The UAE’s non-oil-producing private sector witnessed a strong improvement in business conditions at the beginning of the second quarter of this year, as the PMI rose to its highest level since mid-2019, supported by a strong rise in new business volumes and a sharp expansion in production that was linked to the continued recovery Economist from the “Covid-19” pandemic.

According to the IHS Markit Group’s Leading Purchasing Managers’ Index (PMI), however, the level of employment declined for the third month in a row, contributing to a renewed increase in backlog.

Production prices increased for the first time in more than two and a half years, as it was reported that the increase was driven by higher input costs, which reflected the global shortage of raw materials and the rise in transport fees.

The UAE PMI rose slightly from 52.6 last March to 52.7 in April, indicating a strong improvement in the conditions of the non-oil producing sector.

The index scored above the neutral level (50.0) for the fifth month in a row, and reached its highest level since July 2019.

The largest contributor to the main PMI is the New Orders Index, which rose in April to its highest level in 20 months. The index pointed to a sharp increase in new business inflows.

The companies included in the index study reported that market conditions have generally improved due to the expansion of “Covid-19” vaccines and the improvement in companies’ confidence.

Businesses also saw a rise in new export orders, although the recovery was less than overall sales.


Market conditions have improved due to the expansion of “Covid-19” vaccines and the improvement in corporate confidence.

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