Prime Highlights
- The UAE’s non-oil private sector recorded its strongest growth in 12 months in February, with the S&P Global PMI rising to 55.0, signaling expanding business activity.
- Growth was supported by higher new orders, strong domestic demand, and rising activity in sectors like construction, real estate, logistics, and technology.
Key Facts
- Employment increased at the fastest pace since November as companies responded to heavier workloads and new business inflows.
- Rising tourist arrivals, e-commerce growth, and interest in AI-related products contributed to expansion across key sectors.
Background
The UAE’s non-oil private sector recorded its strongest growth in a year in February, supported by rising business activity and strong new orders, according to the latest survey data from S&P Global.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index rose to 55.0 in February, slightly up from 54.9 in January. This is the highest reading in the past 12 months. A PMI above 50 means business activity is growing, while a figure below 50 signals contraction.
The survey showed that companies increased output sharply as new business inflows improved. Higher demand, successful contract wins, and better supply conditions supported the rise in activity. Key sectors such as construction, real estate, logistics, and technology played a major role in driving growth.
Rising tourist arrivals and the continued growth of e-commerce also boosted demand. Businesses reported increasing interest in artificial intelligence-related products, which further supported expansion across the technology sector.
David Owen, Senior Economist at S&P Global Market Intelligence, said the February data signals the greatest improvement in non-oil business conditions in a year. He noted that output increased quickly in response to strong inflows of new work, pointing to a positive start for the domestic economy in the first quarter.
Domestic demand remained the main driver of growth, while export sales posted modest gains. Companies hired more workers, increasing employment at the fastest rate since November as they dealt with heavier workloads.
The latest figures show that the UAE’s non-oil economy is growing steadily, as strong domestic demand and better business conditions boost activity at the start of the year.
