UAE’s non-oil economy showed strong growth in November
New business orders rise at fastest pace since August, while employment growth slows to 31-month low
UAE’s Non-Oil Economy Maintains Solid Growth in November Despite Slowing Employment
The UAE’s non-oil economy maintained solid growth in November 2024, with new orders increasing at their fastest pace since August, a business survey showed.
Strong demand conditions and competitive customer pricing supported a rapid increase in new business, leading to another strong improvement in business activity.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) recorded 54.2 in November, up from 54.1 in October. The index, above the neutral 50.0 threshold, indicates continued strong improvement in the health of the non-oil sector.
“Businesses continued to see a significant increase in sales, which drove activity forward, but added greatly to the overall workload,” said David Owen, senior economist at S&P Global Markets, adding that “employment growth slowed to a 31-month low.”
Despite the positive PMI headline, he said the survey data signaled uncertainty among firms about the sustainability of this momentum.
“The second-lowest level of confidence in future business activity since the beginning of last year has been recorded, and markets are getting more crowded, which limits pricing power,” Owen continued.
In the meantime, a surge in new orders—which increased at the quickest rate since August—pushed the Dubai PMI up from 53.2 in October to 53.9 in November. Growth in sales led to a notable uptick in business activity.
Employment, however, declined considerably for the first time since April 2022 as output forecasts fell to a 23-month low and earnings were stifled by rising material prices.
