In a stunning display of economic resilience, the UAE’s non-oil private sector experienced a remarkable surge in December, with the Purchasing Managers’ Index (PMI) hitting a stellar 55.4, up from 54.2 in November. This marks the third consecutive month of growth, signaling a booming economy and a promising outlook for 2025. The robust expansion is driven by strong demand across various sectors, propelling business activity to new heights. Increased new orders and output have led to a dynamic market environment, positioning the UAE as a leader in regional economic growth.
The PMI, a key barometer of economic health, tracks the performance of the UAE’s manufacturing and service sectors, and a reading above 50 indicates expansion. December’s jump to 55.4 is a clear indication of the accelerating growth within the private sector. The surge in business activity is attributed to a combination of factors, including a strong demand environment, larger order books, and favorable weather conditions, which have allowed businesses to increase output at the fastest pace since April 2024.
The expansion is further underscored by a notable reduction in input price inflation, with the pace of cost increases slowing for the fourth time in five months. This slowdown, which brought inflation to its weakest level since April 2024, provides a cushion for businesses to grow without the added pressure of rising costs, giving them the space to expand further. The drop in input costs, particularly in raw materials and shipping, is a welcome relief for businesses and consumers alike.
As the UAE continues its trajectory of growth, the strong performance of the non-oil private sector offers a clear signal of the country’s ongoing diversification efforts. With robust market conditions and continued expansion across sectors, the UAE is poised for even greater success in the coming year, positioning itself as a global economic powerhouse ready to face the future with confidence.
