UAE’s non-oil sector business activity hits 9-month high

The Dubai PMI rose from 53.9 in November to 55.5 in December

Strong demand and increased business activity drove growth in the UAE’s non-oil private sector to its fastest pace in nine months in December, a survey by S&P Global showed.

The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) rose to 55.4 in December from 54.2 in November, marking a third consecutive monthly increase and remaining above the 50.0 threshold that separates expansion from contraction.

The survey pointed to a sharp rise in new business, with the new orders subindex climbing to 59.3 from 58.0, signalling robust demand. However, export demand growth weakened, with that subindex hitting a seven-month low.

Despite rising demand, employment growth remained sluggish, with job creation at one of the slowest rates in over two-and-a-half years.

«The UAE saw its best expansion in non-oil business conditions for nine months in December, with the latest PMI data closing out another year of continuous growth and putting the sector in a strong position for 2025,» stated David Owen, senior economist at S&P Global Market Intelligence.

In Dubai, the UAE’s commercial hub, the headline PMI rose to 55.5 in December from 53.9 in November, indicating the strongest growth in operating conditions in nine months.

The UAE’s performance highlights the success of economic diversification strategies across Gulf Cooperation Council nations, which continue to reduce reliance on oil revenues.

The region’s positive trend extended to Saudi Arabia, where the December PMI hit 58.4, driven by a sharp increase in new orders. The Kingdom’s PMI has remained above the neutral 50 mark since September 2020, underlining sustained expansion in the non-oil private sector.