S&P Global reported that the United Arab Emirates’s non-oil Purchasing Managers’ Index (PMI) rose to 55.0 in February, marking its highest level in 12 months and signalling robust expansion across the private sector. A PMI reading above 50 indicates growth, and February’s figure highlights strengthening business conditions supported by resilient domestic demand and improving market confidence.
The surge was primarily driven by strong consumer spending within the UAE, as businesses recorded a notable increase in new orders. Companies across retail, hospitality, construction and services sectors reported healthier sales pipelines, reflecting solid economic momentum. Tourism played a particularly important role, with continued international visitor inflows boosting hospitality, travel, food services and related industries. Major events, leisure travel and the country’s global connectivity further reinforced demand.
E-commerce also emerged as a key contributor to growth. Digital platforms and online retail channels continued to expand, supported by logistics efficiency, high consumer adoption rates and investment in technology-driven solutions. This structural shift toward digital commerce has strengthened supply chains and improved access to both domestic and regional markets.
Another important factor behind the PMI rise was easing inflationary pressure. Businesses reported softer increases in input costs compared to previous months, particularly in raw materials and transportation. This moderation allowed firms to manage pricing more effectively, helping sustain customer demand without significantly eroding profit margins. Improved cost stability has enhanced overall business sentiment and encouraged expansion plans.
Employment levels also showed gradual improvement, as firms responded to rising workloads by increasing hiring activity. While job growth remained measured, it reflected confidence in sustained demand conditions.
The February PMI reading underscores the continued resilience and diversification of the UAE’s non-oil economy. Strong domestic consumption, thriving tourism, expanding digital trade and moderating inflation collectively highlight the country’s success in reducing reliance on hydrocarbons while fostering sustainable private-sector growth.
