UAE and Saudi Arabia witness first job market growth
04Feb’21
Business activity in the Arab world’s two largest economies improved at the start of 2021, with the UAE seeing growth in its job market for the first time in over a year.
Non-oil private sector activity in Saudi Arabia soared during January as new work levels increased and operating conditions improved marginally in neighboring UAE, helped by an expansion in new orders and output.
Purchasing managers’ index (PMI) surveys compiled by IHS Markit last month for the two Gulf nations were above the threshold of 50 that separates growth from contraction.
Saudi Arabia’s PMI rose to 57.1 in January, up fractionally from 57 in December and to the highest in 15 months, driven by a faster pace of expansion in output. Employment dropped for the 10th time in 11 months, as firms noted capacity levels exceeded demand.
Meanwhile, the UAE’s PMI was at 51.2 last month, unchanged from December. The uptick in employment, although minimal, ended 13 months of job losses as firms were encouraged to hire new employees.
Elaborated by IICUAE, to see full article, click below.