Employment rates in the UAE rise to the highest rate since January 2019
The PMI compiled by IHS Markit rose to 54 in July from 52.2 the previous month, and remained above 50, the mark that separates growth from contraction.
The survey showed an improvement in business activity in the non-oil sector.
According to IHS Markit's "PMI" reading, the growth rate of the non-oil economy rebounded in July and reached its strongest level in two years as demand continued to recover from the Corona pandemic.
The report noted an increase in hiring, which speakers in the report linked to efforts to expand the sales divisions of UAE companies, with the hiring rate being the fastest since January 2019. Companies also expanded their purchasing activity in July, after a slight decline in June.
David Owen, an economist at IHS Markit Group, said: “The UAE's non-oil sector had a strong start to the third quarter of the year, with companies experiencing the biggest rise in new orders in two years amid rising domestic sales and boosting market confidence.
Production increased in line with this expansion, but it was not enough to cover the suspended work which increased to its maximum in 16 months.
The outlook for future non-oil activity also remained positive in July.
Most companies are looking forward to the easing of coronavirus restrictions and Expo 2020 later this year to help improve economic conditions.
However, for the first time in eight months, overall corporate expectations have fallen since the previous survey period.
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