Dubai, UAE (PRWEB) February 27, 2014
United Arab Emirates' economy continues to show robust performance as evidenced by HSBC's Purchasing Managers' Index (PMI) which was released last February 4. HSBC's report comes barely a week after the International Monetary Fund (IMF) released its forecast for a 4.5 percent increase the country's gross domestic product or GDP, buoyed by the strong performance of the tourism, hospitality and real estate sectors.
In particular, HSBC's report noted the strong performance of the country's non-oil producing private sector this January. Notable indicators supporting this trend include the spike in both order intakes as well as available jobs in Dubai and in other emirates. HSBC, a leading banking and financial services organization, credits this swell in numbers to an increased volume in orders. As compared to December 2013's PMI, pegged at 57.4, last month's PMI was 57.1.
Forty-three percent of the firms surveyed for the report have said that their ventures have grown, due in large part to the increase in volume of orders, the second highest volume recorded since the survey was initiated. Additionally, demand for UAE’s products has experienced a significant boost during this period.
In turn, this positive development has made a positive impact on the demand for jobs Dubai and other emirates offer. The report noted that demand for skilled and professional workers increased this January in order to allow firms to cope with higher workloads.
Recruitment Village, one of the leading job consultants in Dubai, expects this trend to spill over to the next few months as work backlogs are seen to increase. The PMI confirms this, noting that the situation has stabilized along with the improvement of delivery times.
In terms of salaries, the report indicated that wage inflation is at a six-month low with very few companies reporting an increase in salaries.
Recruitment Village attributes the country's robust performance to the influx of megaprojects as well as Dubai's successful bid to host the World Expo 2020. It adds that the gains being reaped by the country's economy will continue to trickle down to the following years if the government deftly handles key economic and fiscal considerations.
HSBC's PMI is based on the response of about 400 private companies to questionnaires sent by the banking and financial organization. Participating firms are selected based on their industry's contribution to UAE's GDP. The PMI takes into account the volume of new orders, the output of companies, employment rates, delivery times of suppliers and the stock of items participating companies have purchased.