Under the title "Expo Contributes to Accelerating the Non-Oil Private Sector in the UAE," Sky News reported that a survey published today, Wednesday, revealed that the non-oil private sector in the UAE grew at its fastest pace since June 2019 last October. According to the survey, the non-oil private sector in the UAE recorded growth for the eleventh consecutive month, coinciding with the launch of the Expo 2020 in Dubai, according to Reuters.
The IHS Markit Purchasing Managers' Index (PMI) for the UAE, seasonally adjusted, jumped from 53.3 in September to 55.7 in October, driven by increased spending and tourism. This is above the neutral level of 50 points that separates growth from contraction.
David Owen, an economist at IHS Markit, stated: "Expo 2020 finally kicked off in the UAE at the beginning of October and brought a very welcome increase in growth across the non-oil private sector," according to Reuters. Owen added: "The key test for the UAE economy will be whether this initial surge in demand due to the Expo can be sustained in the coming months. We are also waiting to see if this will boost employment growth, as the latest data showed weak hiring despite rising business capacity pressure."
Restrictions imposed by many countries due to the COVID-19 pandemic last year had harmed vital sectors such as tourism, retail, transportation, and others.
