The United Arab Emirates non oil private sector delivered its strongest performance in nearly a year in November, supported by solid demand, rising output, and an increase in new business activity. The seasonally adjusted S and P Global UAE Purchasing Managers Index rose to 54.8 from 53.8 in October, marking a significant improvement and indicating a faster pace of economic expansion.
Growth in new business volumes accelerated to its quickest rate since January, reflecting favorable market conditions, ongoing product innovation, and efforts by companies to diversify their offerings. This increase in new orders helped lift output across a range of industries, contributing to the overall strengthening in the sector.
As workloads increased, firms expanded their workforce numbers, resulting in the highest employment growth in 18 months. However, the rise in hiring, along with wage adjustments driven by skill shortages and broader cost of living pressures, led to a sharp increase in input costs. These costs rose at their fastest pace in more than a year.
In response to higher expenses, businesses made moderate adjustments to their selling prices. Despite the cost pressures, sentiment improved considerably. Companies expressed greater confidence about future activity compared to the previous month, supported by strong sales pipelines and a broadly positive business environment.
Dubai also maintained solid momentum, with its PMI reading holding at 54.5 in November. Demand conditions in the emirate continued to improve, and businesses there recorded their fastest increase in staffing in 18 months.
Overall, the November data signals a renewed upswing in the UAE non oil private sector. Strengthening demand, improving output, rising employment, and improved business confidence suggest the economy is well positioned to carry this momentum into the coming months.
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