UAE: Consumer confidence surges as non-oil sector sustains upswing

UAE: Consumer confidence surges as non-oil sector sustains upswing

IMF, in its latest report, has commended the UAE government for the way it steered the country's economy through the pandemic

Published: Thu 3 Mar 2022, 9:40 PM

Consumer confidence in the UAE economy and private business continued to surge as the health of the non-oil private sector economy sustained its upswing, according to analysts and economists.

The upturn was driven by the trickle-down effect of higher oil prices and a robust tourism activity resulting from Expo 2020, according to the latest research by leading consumer intelligence company, D/A.

"Positive sentiment toward business and economy in the UAE has been buoyed by some of the highest hotel occupancy rates in the world, substantial economic investment and the adept handling of global crises. Business confidence increased over 2.0 per cent, and economic confidence increased by 0.5 per cent in January," Paul Kelly, managing partner of D/A.

The IHS Markit UAE Purchasing Managers' Index ticked up for the first time in three months, from 54.1 in January to 54.8 in February, and remained well above the 50.0 neutral thresholds. Firms saw a further strong uplift in market demand. Output levels subsequently rose sharply, while increased optimism for future sales encouraged firms to expand their input purchases to