UAE business confidence soars to 20-month high

UAE business confidence soars to 20-month high

With growth prospects picking up, businesses continue to create jobs

A shopping mall in Dubai. The UAE’s non-oil sector is poised to achieve strong growth of 4.8 per cent in 2023. — KT file

Published: Mon 5 Jun 2023, 4:47 PM

Business confidence in the UAE reached its strongest level in May since October 2021 amid brightening economic prospects as the employment rate rose at the second-fastest rate in nearly seven years, according to the latest purchasing managers’ (PMI) survey report.

Businesses continued to report marked increases in both activity and new orders, reflecting strengthening demand conditions in the domestic economy, as well as a sharp improvement in supply chains, which helped to keep cost pressures subdued, S&P Global's UAE PMI report said on Monday.

“Hiring activity was meanwhile robust, as job levels increased at the second-fastest pace since July 2016, reflecting a strong intent at companies to build capacity in the hope of sustained growth," said David Owen, senior economist at S&P Global Market Intelligence.

The report noted that with growth prospects picking up, businesses continued to create jobs and lift input purchases to provide buffer stocks.

Recruiters and job consultants have observed significant growth in job market in the first quarter of 2023, contrary to