The HSBC United Arab Emirates (UAE) Purchasing Managers' Index (PMI), which measures the performance power in the Gulf state's non-oil private sector based on a survey, reached a 10-month high in April to hit 53.5 points, up from 52.3 in March.

"April survey data pointed to a strong start to the second quarter of 2012 for the UAE non-oil private sector," the April report on the HSBC UAE PMI published Thursday said.

An HSBC UAE PMI value above 55 would indicate an increased rate of growth, while the level below 50 shows an increased rate of contraction.

The UAE, which harbors seven percent of the world's known oil reserves, has one of the most diversified non-oil sectors in the Middle East and North Africa, according to the International Monetary Fund (IMF). Non-oil GDP growth stands for three quarters of total growth in the oil-exporting Gulf Arab states, IMF data shows.

April's output expansion is the quickest since June 2011. " Employment and purchasing activity increase to meet rising activity requirements," the report said.

"The latest reading signalled a solid and faster improvement in the health of the country's non-oil private sector," the report added. "Sharper expansions were recorded in output, total new business, buying activity and employment, pointing to an improved business environment. Price pressures eased over the month, but remained solid."

Commenting on the UAE PMI survey, Simon Williams, Chief Economist for Middle East and North Africa at HSBC said "It's encouraging that the data picked up so strongly in April, particularly as the employment reading was positive."

Nevertheless the timing of the upswing of the HSBC UAE PMI might become a headache, he added. "I am still somewhat cautious, as this is only one good month's data after 6 months in the doldrums, and the quieter summer months could put a dent in the uptrend. However, against a backdrop of stronger macro indicators out of Dubai in particular, the April number is positive."