UAE Non-Oil Economy Grows in November Amid Market Concerns
UAE: The UAE's non-oil economy showed steady growth in November 2024, supported by an increase in new orders and favourable pricing strategies. The S&P Global UAE Purchasing Managers’ Index (PMI) rose slightly to 54.2 in November, up from 54.1 in October, indicating continued expansion in the non-oil sector. Strong demand led to a rise in business activity; however, employment growth slowed, hitting a 31-month low. Despite these positive indicators, business confidence in future activity remained subdued, with concerns about market saturation and declining pricing power affecting sentiment.
In Dubai, the PMI climbed to 53.9 in November from 53.2 in October, driven by the fastest rise in new orders since August, leading to increased business activity. However, employment levels in Dubai declined for the first time since April 2022, while output expectations fell to a 23-month low due to rising purchase costs. Inventory levels also decreased for the first time since July, reflecting cautious market sentiment. The overall data indicates strong short-term growth tempered by concerns about sustainability and rising costs.
Source: Zawya