The UAE’s non-oil private sector achieved its fastest expansion in nine months during December as strong demand and increased business activity drove growth.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) increased to 55.4 in December from 54.2 in November. It stayed well above the 50.0 threshold that indicates growth and marked the third consecutive monthly rise.
The survey revealed a significant surge in new business, with the new orders subindex climbing to 59.3 from 58.0 in the previous month, reflecting robust demand. However, export demand growth slowed, as its subindex dropped to a seven-month low. Businesses continued to face rising backlogs, which accumulated rapidly in December.
“Capacity levels remain under considerable stress, with backlogs of work rising sharply,” said David Owen, senior economist at S&P Global Market Intelligence. “While margin pressures prevent some firms from hiring more staff, businesses clearly need to enhance resources to capitalise on demand in the new year.”
Businesses kept employment growth slow, creating jobs at the weakest pace in over two-and-a-half years. Input cost inflation dropped to its lowest level since March 2024, easing pressure on firms, which continued to lower prices to stay competitive. However, companies showed muted confidence in future business activity during December.
In Dubai, the headline PMI rose to 55.5 in December from 53.9 in November, marking the strongest improvement in operating conditions in nine months.
