In Dubai, non-oil producing companies experienced another significant improvement in operating conditions during the final month of 2025. The Purchasing Managers’ Index (PMI) registered at 54.3 in December, slightly lower than the 54.5 recorded in both October and November.
Production levels across the sector increased at the fastest rate since March 2024, driven by a notable rise in new business volumes. Companies indicated their ability to expand operations, accompanied by a slight uptick in employee numbers.
United Arab Emirates
The PMI data for the United Arab Emirates highlighted robust growth in activity levels within the non-oil private sector for December. The growth rate remained close to the high levels observed in November, as businesses reported receiving new client orders along with enhanced market conditions and supportive local policies.
The S&P Global UAE PMI, a seasonally adjusted composite index designed to provide a precise overview of operating conditions in the non-oil private economy, recorded a value of 54.2 in December, closely aligning with its long-term average of 54.3, reflecting strong improvements within the sector.
Non-oil companies continued to report significant increases in activity levels as 2025 came to a close. Despite a slowdown in the expansion rate since November, the growth pace remained among the fastest of the year, with over a quarter (27%) of the surveyed firms reporting monthly production increases, while fewer than 7% noted a decrease.
Firms commonly attributed the growth to rising new order levels, which were linked to improved market conditions, favorable government policies, and a growing customer base, alongside increased demand from international markets. However, some companies reported sluggish sales figures, pointing to intense competition.
Looking ahead to 2026, companies generally maintained a positive outlook and expressed optimism regarding demand trends and business investments, although there were concerns that market saturation might hinder growth.
Strong Recovery
David Owen, a Senior Economist at S&P Global Market, stated that the non-oil sector in the UAE concluded 2025 with a robust recovery, marking the end of a year characterized by strong business growth, albeit at a relatively less intense pace.
He continued, noting that the positives included companies finishing the year with two of the strongest months of activity growth, as data indicated a significant acceleration in sales growth compared to their lowest levels in August. Companies drew some optimism from signals of increased consumer spending, a surge in tourism activities, growing reliance on technology, alongside supportive government policies.