The UAE's non-oil sector continued its strong growth in December.

UAE Economy - Abu Dhabi

 

The UAE's non-oil sector continued its strong growth in December.

The UAE's non-oil private sector maintained its robust growth in December, albeit at a slightly slower pace than in November, according to the S&P Global Purchasing Managers' Index (PMI).

The seasonally adjusted S&P Global UAE PMI registered 54.2 in December, slightly below its nine-month high of 54.8 in November, but well above the 50-point mark that separates growth from contraction.

The index remained close to its long-term average of 54.3. Output growth was among the fastest rates recorded in 2025, but input costs rose at the fastest pace in 15 months, driven by higher wages and material prices.

Demand remained strong, although the rate of new orders growth slowed slightly in December. The sub-index for new orders registered 57.2 in December, down from 57.8 in the previous month.

David Owen, chief economist at S&P Global Market Intelligence, said, "The UAE's non-oil sector ended 2025 on a strong note, representing a year of robust growth, albeit somewhat subdued in operating conditions."

Owen added, "December was also marked by accelerating cost pressures and leaner inventory strategies, suggesting that a number of firms are feeling the strain on their balance sheets."

High demand and administrative delays contributed to the backlog of work, the most pronounced in 10 months. The outlook for future business remained positive, although optimism was tempered by concerns about market saturation and cost pressures.

In Dubai, the UAE's business and tourism hub, the headline Purchasing Managers' Index (PMI) dipped slightly to 54.3 in December, after registering 54.5 in the previous two months, but output levels rose at their fastest pace since March 2024.