UAE Construction & Manufacturing Hiring Surges Post April Rain Disruption

05 Jun, 2024

UAE Construction & Manufacturing Hiring Surges Post April Rain Disruption

: Businesses in the UAE, particularly in manufacturing and construction, are ramping up their recruitment efforts to address backlogs accumulated after disruptions caused by heavy rains on April 16. This surge in hiring aligns with the persistent high demand for their goods and services. According to the latest S&P Global PMI data, non-oil companies in the UAE experienced a significant increase in outstanding business levels in May, leading to immense pressure on business capacity. Despite this strain, the overall performance of private sector firms remained robust, with sharp rises in output and new orders, albeit at a 16-month low. Senior Economist at S&P Global Market Intelligence, David Owen, emphasized the need for firms to manage workloads effectively by rebuilding output levels, hiring workers, and boosting inventories.

The construction sector in the UAE has been particularly active in bolstering its workforce since early May, with some companies offering incentives above the market average to expedite project completion. The influx of new tenders further intensifies pressure on resources, signaling a lack of summer lull in new project activity. However, this growth comes with challenges, as businesses face rising operational costs due to increased input demand and the need to replenish stocks. As input costs soar at the sharpest rate in nearly two years, firms are compelled to raise prices, highlighting the urgency for sector recovery. Despite these challenges, with demand remaining strong, firms are poised for robust growth once capacity is restored.