The UAE’s non-oil private sector recorded its fastest pace of expansion in a year during February, as overall business activity gained further momentum, according to fresh survey figures released on Wednesday.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) edged up to 55.0 in February from 54.9 in January, marking its highest reading in 12 months. The improvement was underpinned by a sharp increase in new orders alongside more favourable supply-side conditions.
A PMI score above the 50 threshold reflects growth in non-oil private sector activity, whereas a figure below 50 denotes a contraction in business conditions.
David Owen, Senior Economist at S&P Global Market Intelligence, noted that February’s data signalled the most robust improvement in non-oil operating conditions in a year, with output rising strongly amid solid inflows of new business. He added that the first-quarter indicators present a constructive outlook for the domestic economy.
Output growth was supported by firmer demand, new contract awards, and expansion across core industries such as construction, real estate, logistics and technology. Increased tourist inflows, the continued development of e-commerce platforms, and rising demand for artificial intelligence-related solutions further bolstered activity.
Domestic demand remained the principal driver of growth, while export orders posted moderate increases. Employment also expanded, with hiring reaching its quickest pace since November.
Firms retained a positive view of the near-term outlook, anticipating sustained demand, although overall confidence moderated slightly from January’s recent peak.
