06.01.202604:25:01UTC+00UAE Non-Oil Sector Growth Remains Robust

The S&P Global UAE Purchasing Managers’ Index (PMI) saw a slight decline to 54.2 in December 2025, from a nine-month peak of 54.8 recorded in November. Nonetheless, this figure still reflects a solid enhancement in non-oil private sector conditions. Business activity rose significantly this year, fueled by strong demand, increased customer orders, and supportive domestic policies. Output growth remained robust, with over 25% of firms noting a rise in production due to an uptick in workloads. However, employment growth exhibited caution as businesses contended with growing cost pressures and narrower profit margins. Input costs experienced their sharpest increase in over a year, largely due to elevated wages, transportation, and maintenance expenses, pushing companies to optimize costs with reduced inventory levels. Despite these challenges, there was a modest rise in selling prices, and business confidence remained high. This optimism is bolstered by stronger sales pipelines and persistent demand as the sector moves into 2026.