The UAE non-oil economy continued its exceptional strength at the end of 2023.
The S&P Global PMI for the UAE recorded its second-best reading in four and a half years in 2023.
In fact, the sharp rise in new business led to a significant expansion in production levels.
Also surveyed companies reported increased order volumes and improved sales.
Similarly, future activity expectations were among the strongest recorded since early 2020.
Details about the UAE Non-oil Economy in 2023.
The seasonally adjusted UAE headline PMI rose from 57.0 in November to 57.4 in December.
Which is the second-highest reading since June 2019.
While new orders saw the best quarterly sales performance in four and a half years, driven by strong domestic market conditions.
Non-oil activity saw a significant uptick in December.
Mentioning that over a quarter of surveyed companies reporting monthly expansion.
The rate of inventory growth has also moderated in December and reached its lowest level in 3 months.
Moreover, purchasing prices rose at their slowest rate since January, leading to a decline in overall cost pressures to their lowest in five months.
Selling prices also fell as companies sought to offer discounts and undercut competitors.
While the production outlooks for the next 12 months improved, reaching some of the highest levels recorded in the past four years.
Positive Prospects for 2024
The data suggests that the UAE’s non-oil economy has positive prospects for 2024.
This is driven by several factors, including:
- Strong domestic demand, with the UAE’s markets experiencing robust growth.
- Easing price pressures, which supports consumer purchasing power.
- Business optimism about the future, with many companies expecting continued growth in 2024.
#The_Emirati_Passport retains the title of “the most powerful passport in the world” during 2024 according to the “Passport Index” of the global financial consulting company Arton Capital pic.twitter.com/IxOVD6PJUt
— UAE Voice (@uae_voiceeng) January 2, 2024
However, there are some risks that could potentially dampen future growth, such as:
- Rising crude oil prices, which could lead to higher costs for businesses.
- A slowdown in global growth, which could lead to a decline in demand for UAE exports.
Afterall, the UAE non-oil economy will continue its growth due to the country strong commitment to support this sector businesses …
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