The non-oil private sector activity in the UAE and Saudi Arabia slowed in May, but remained above the 50-mark that separates growth from contraction, according to separate surveys by S&P Global.
The UAE Purchasing Managers' Index (PMI) dipped to 55.5 in May, while Saudi Arabia's PMI was 58.5. Despite the slowdown, both countries saw rising market demand, and businesses expressed optimism for future activity.
New jobs were also created due to growth prospects picking up. However, labor shortages and rising living costs led to some businesses increasing salaries, driving a sharp uptick in average operating costs.
