UAE’s non-oil business sector sees strong growth in January, PMI reports
S&P Global PMI at 55.0 signals UAE’s non-oil sector growth amid strong demand and hiring
UAE’s Non-Oil Business Sector Expands Strongly in January Despite Capacity Challenges
Abu Dhabi, February 5 – The UAE’s non-oil private sector continued to expand strongly in early 2025, although capacity pressures and competitive challenges posed headwinds, a survey showed on Wednesday.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index was 55.0 in January, down slightly from December’s nine-month high of 55.4 and up from 50.0.
Despite a slightly slower pace, business activity and new orders increased significantly due to favourable market conditions and lessening cost pressures. In January, the new orders sub-index dropped from 59.3 in December to 59.0.
S&P Global Market Intelligence senior economist David Owen stated, “The robust growth in activity and new business, along with low input cost inflation, suggest the economy remains in a healthy state.”
Companies were able to increase purchases as input cost inflation dropped to a 13-month low, but capacity constraints remained, as jobs increased to an eight-month high.
Owen stated that overall confidence was at its lowest level since December 2022 and that “stronger competition and liquidity concerns stemming from high backlogs appear to be casting doubt on whether companies can continue to grow their earnings.”
Dubai’s separate index dropped somewhat from 55.5 in December to 55.3 as companies reported better circumstances but had lower expectations for future growth.
