Investor sentiment towards the United Arab Emirates (UAE) market improved in February on stronger oil prices and a positive economic outlook, according to a survey by Abu Dhabi-based First Gulf bank.
The FGB Wealth Sentiment Index, which measures the mood of wealthy investors in the UAE market from a personal and business point of view, increased to 1020.52 in February from 1017.41 in January.
“The February score indicates a continuing positive outlook in the economy, due to a combination of factors. These include crude oil prices crossing the $50 barrier, which will have a positive impact on the UAE economy, alongside an increase in the Purchasing Managers’ Index (PMI) and stock movements in the UAE,” a statement quoted Odisseas Trikaliotis, senior researcher at Ipsos global consultancy firm which conducted the survey, as saying.
The UAE Purchasing Managers’ Index (PMI), an indicator of the economic performance of the manufacturing sector, which was compiled by Dubai-based Emirates NBD, had reported a score of 55.3 in January, up from 55.0 in December 2016, its highest score since July 2016.
However Trikaliotis warned that rising inflation in the UAE could harm the positive sentiment.
Abu Dhabi January inflation rose by 1.8 percent. Experts expected annual average inflation rate in the UAE to rise by 2.5- 3 percent in 2017, up from 1.7 per cent in 2016, according to a Gulf News report.
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