UAE private sector activity picks up

The UAE’s private sector seems to have felt the Expo boost a full month before the event’s opening on October 1.

Businesses were recording sharp increases in their order backlogs at the “fastest rate since March 2020”, i.e., in the period before the pandemic broke out. A continued recovery in footfall and contracts related to Expo 2020 has contributed to the upturn. Export orders too have returned after falling each month since May.

The UAE had a PMI reading of 53.3 for September, signalling an economy that “appears in good shape”. According to IHS Markit, which tracks global private sector activity based on the Purchasing Managers Index (PMI), the PMI reading represents a dip from the 53.8 recorded for August, but above the readings seen in the 23 months leading up to July. The index is “firmly in growth territory, having exceeded the 50.0 mark in each of the latest 10 months”.

Expo boost

“Firms expect the Expo 2020 to add to sales volumes in the coming months, supporting a pickup in business expectations for the first time since June,” said David Owen, Economist at IHS Markit.