The United Arab Emirates’ non-oil private sector expanded at its fastest pace in nine months in December, buoyed by strong demand and rising business activity, a survey showed on Monday. The seasonally adjusted S&P Global UAE purchasing managers’ index (PMI) rose to 55.4 in December from 54.2 in November, remaining well above the 50.0 mark that separates expansion from contraction, marking a third consecutive monthly increase,” reported by Reuters.
The survey highlighted strong growth in new business, with the new orders sub-index rising to 59.3 from 58.0 in the previous month, indicating strong demand. However, growth in export demand slowed, with the sub-index falling to a seven-month low. Backlogs also continued to build at a rapid pace in December.
S&P Global Market Intelligence
“Capacity levels remain under significant pressure, as evidenced by another notable increase in backlogs,” said David Owen, senior economist at S&P Global Market Intelligence. “While margin constraints appear to be holding back some firms from hiring additional staff… there is clearly a need to increase resources to ensure firms have access to capital on demand in the new year.”
For Dubai, the overall PMI
Despite the pick-up in demand, employment growth remained sluggish and job creation was among the slowest in two and a half years. But input cost inflation eased to its lowest level since March 2024, providing some relief to businesses as companies continued to cut prices amid fierce competition.
However, business confidence in future business activity remained muted in December. For Dubai alone, the overall PMI rose to 55.5 in December from 53.9 in November, indicating the strongest improvement in business conditions there in nine months.