UAE economy is turning a corner

Statistical and anecdotal evidence points to the fact that the green shoots of growth are becoming evident across various sectors of the economy.The [UAE] economy may now be at a turning point, supported by public spending. The latest UAE PMI (Purchasing Managers' Index, an indicator of the economic health of the country's non-oil sectors) is at a 16-month high, the inflation is well under control, and business confidence is at a seven-year high. Monthly data shared as part of the Emirates NBD PMI shows a marked improvement in business activity even as the growth in jobs for April remains marginal. In addition, the global oil price is expected to average above the $70/barrel-mark for the remainder of the year, offering the flexibility to further boost government expenditure for infrastructure development.