UAE's Non-Oil Private Sector Growth Slows in March Amid Weaker Demand

Post by : Elena Malik

Photo : AFP

A new survey has revealed that the growth of the UAE’s non-oil private sector slowed down in March. This shows that demand is not increasing as fast as before in one of the most diversified economies in the Gulf region.

According to the S&P Global Purchasing Managers' Index (PMI), the UAE’s PMI dropped to 54.0 in March, down from 55.0 in February. This is the slowest growth rate recorded since September last year.

New Orders See a Slowdown
For the third month in a row, new orders in the private sector have grown at a slower pace. The new orders index, which measures the demand for goods and services, fell from 57.3 in February to 56.3 in March. This is the weakest reading since October, showing that businesses are receiving fewer new orders compared to previous months.

Dubai’s Private Sector Also Affected
Dubai, which plays a major role in the UAE’s economy, also saw a slowdown in its non-oil private sector. The city's PMI dropped to 53.2 in March, compared to 54.3 in February. This marks the lowest level in five months.

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Even though new orders continued to rise, they did so at a slower pace than before. As a result, some companies in Dubai had to cut down on hiring, which is uncommon in the city’s usually strong job market.

Businesses Remain Hopeful
Despite the slowdown, companies in the UAE remain positive about the future. Many businesses believe that upcoming projects and the country's focus on infrastructure development will help boost growth in the coming months.

The UAE’s economy continues to be strong, and while growth has slowed slightly, firms are confident that demand will pick up again soon.

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