Non-oil business activity in the UAE surged in December, with the Purchasing Managers’ Index (PMI) rising to 55.4 from 54.2 in November, according to an economy tracker. This nine-month high reflects strong demand and continued growth in the non-oil private sector.
S&P Global attributed the robust expansion to favorable market conditions, highlighting the UAE’s progress under Vision 2031. This strategy focuses on diversifying the economy by promoting industries like manufacturing, tourism, and technology to ensure sustainable growth.
David Owen, a senior economist at S&P Global Market Intelligence, noted, “The UAE saw its best expansion in non-oil business conditions for nine months in December. The latest PMI data closed out another year of continuous growth, positioning the sector well for 2025.”
A PMI reading above 50 signals growth, while below 50 indicates contraction. Business owners reported securing new clients and larger order books due to buoyant market conditions. However, staffing levels grew at the slowest rate in over two-and-a-half years.
“Capacity levels remain under stress, shown by a marked increase in backlogs of work,” said Owen. “Recruitment appears to be the limiting factor, with employment growth barely changing from November’s 31-month low
