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The UAE’s non-oil private sector expanded at the fastest pace in a year in February as business activity strengthened, according to new survey data released on Wednesday.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) rose to 55.0 in February from 54.9 in January its highest level in 12 months supported by a surge in new orders and improving supply conditions.
A PMI reading above 50 indicates expansion in non-oil business activity, while below 50 signals contraction.
"The UAE PMI signalled the strongest growth in non-oil business conditions for a year in February, with output increasing rapidly in response to strong inflows of new work. So far, the data points to an encouraging picture for the domestic economy in Q1,” said David Owen, Senior Economist at S&P Global Market Intelligence.
Stronger output was driven by higher demand, successful contract wins, and growth in key sectors including construction, real estate, logistics, and technology. Rising tourist arrivals, the expansion of e-commerce channels, and growing demand for AI related products also supported activity.
Growth was largely fuelled by domestic demand, although export sales recorded modest gains. Employment levels rose at the fastest rate since November.
Businesses remained optimistic about the outlook, expecting strong demand to continue, though confidence dipped from January’s recent high.
Dubai PMI
Dubai saw a slight softening in output growth during February, even as job creation reached a two-year high.
The emirate’s PMI fell to 54.6 from 55.9 in January as the pace of new order growth eased. Demand continued to be supported by population growth, increased tourism, and marketing activity.
(Writing by Brinda Darasha; editing by Daniel Luiz)
