Yesterday, a survey showed that the non-oil private sector in the UAE grew for the second month of this year in July, with the support of easing the restrictions imposed to contain the Corona virus.

The IHS Market PMI index, adjusted for seasonal factors covering the manufacturing and services sectors, rose to 50.8 in July from 50.4 in June. Any number below 50 indicates contraction.

The report on the improvement in the past two months stated: "The growth rate is still marginal, and represents a slight recovery."

Abu Dhabi and Dubai imposed measures to alleviate the consequences of the Corona virus earlier this year.

New projects

Production rose to its highest level since September 2019, while companies announced that new projects and an increase in demand were driving the improvement.

Survey respondents were optimistic about improving demand and increasing marketing. "The sentiment about future production depends on how demand recovers in the coming months, as companies hope that the economy will go a long way towards pre-COFED levels - 19 on," said David Owen, economist at IHS Market. The extent of the second half of 2020 ».

private sector

In addition, the survey showed the stability of the non-oil private sector in Saudi Arabia in July, after a four-month contraction.

IHS Market’s purchasing managers ’index for Saudi Arabia rose to 50 from 47.7 in June, stabilizing at the mark that separates growth from deflation.

"The latest figures are the highest since February," said Tim Moore, director of IHS Market, which collects survey data.

He added, "All production indicators, new orders and jobs increased in July, but they did not reach the 50 mark."

The non-oil private sector is at the heart of Saudi Arabia's reform plans, which aim to diversify the kingdom's economy away from dependence on oil revenues. Many of the restrictions on the Corona virus have been lifted, but international flights are still suspended. The report said that sentiment is the strongest since February, and that about a quarter of companies expect growth, over the next year.

Corona

In a related context, Egypt's non-oil private sector index showed 49.6 points, up from 44.6 in June, just below the 50 threshold, which separates growth from deflation.

The Egyptian government suspended international flights on March 19, and it almost halted the Egyptian tourism sector, which it says contributes directly to the economy by about 5%.

The government resumed flights, and opened the main tourist destinations in early July. It also allowed restaurants and cafes to open its doors.

"IHS Market" said that "several companies increased their activity with the increase in the number of tourists, as well as the demand for exports."

She added, "Nevertheless, the same number of companies continued to reduce activity, due to the continuous structural weakness caused by (Covid-19)."

Production boosted to 50.9, the highest reading in a year, while new orders recorded 51.4, the highest since November 2017.

• 50.8 IHS Market Purchasing Managers Index, in the UAE, in July.

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