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UAE's Non-Oil Private Sector Maintains Robust Growth in January
S&P Global's PMI indicates continued expansion despite capacity challenges
In January 2025, the United Arab Emirates' non-oil private sector sustained its growth trajectory, as evidenced by the S&P Global Purchasing Managers' Index (PMI) reading of 55.0. Although this marks a slight decrease from December's 55.4, the figure remains well above the 50.0 threshold that signifies expansion.
The PMI data revealed significant increases in business activity and new orders, driven by favorable market conditions and easing cost pressures.
Input cost inflation reached a 13-month low, enabling firms to augment their purchases.
However, the sector faced ongoing capacity pressures, with backlogs of work accumulating at the fastest rate in eight months.
Despite these challenges, the overall economic outlook remained positive.
In Dubai, a separate PMI indicated a slight decline to 55.3 from December's 55.5, with businesses reporting improved conditions but expressing caution regarding future activity.
These developments underscore the UAE's ongoing efforts to diversify its economy beyond oil, focusing on strengthening its non-oil sectors.
The PMI data revealed significant increases in business activity and new orders, driven by favorable market conditions and easing cost pressures.
Input cost inflation reached a 13-month low, enabling firms to augment their purchases.
However, the sector faced ongoing capacity pressures, with backlogs of work accumulating at the fastest rate in eight months.
Despite these challenges, the overall economic outlook remained positive.
In Dubai, a separate PMI indicated a slight decline to 55.3 from December's 55.5, with businesses reporting improved conditions but expressing caution regarding future activity.
These developments underscore the UAE's ongoing efforts to diversify its economy beyond oil, focusing on strengthening its non-oil sectors.
