The UAE's non-oil business activity grew in September for the first time in three months, as new orders rose at the fastest pace in four years, a survey released Wednesday showed.
The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI), which provides a single-figure snapshot of operating conditions in the non-oil private sector, registered 56.7 in September, up from 55 in August.
The headline index rose primarily due to the new orders sub-index, which grew to 64.7 in September to reach its highest level since June 2019, against 57.6 in the previous month. In the place where new orders rose, several businesses noted that they had more clients, which was attributed to stronger economic conditions and lower prices due to competitive pressures, the survey showed.
Last month, the strong demand was driven by both domestic and external markets, the survey said, adding that new orders from foreign clients increased at the sharpest pace seen in just over four years.
"Demand growth, meanwhile, spurred greater purchasing at non-oil firms in September, which acted to quicken the pace of purchase price inflation," said David Owen, senior economist at S&P Global Market Intelligence.
"Price discounting at businesses continued, albeit to only a modest degree, suggesting that competition had limited pricing strategies."
The output sub-index also increased from 61.9 in the previous month to 62.8 in September due to higher new orders, ongoing projects, and new marketing.
The UAE economy is projected to grow by 3.5% this year and 3.9% in 2024, driven by strong demand for the Gulf state’s oil exports and energy investments, according to investment bank UBS.
