The UAE’s non-oil private sector delivered one of its strongest performances of the year in November, with the S&P Global PMI climbing to 54.8, its highest level in 11 months. The reading signals robust expansion in business conditions, powered by rising new orders, stronger customer demand, and a renewed wave of hiring across key industries.
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Sharpest Improvement in Business Conditions Since Early 2024
Activity levels increased at the quickest pace since January, driven by larger client orders, product innovation, market diversification, and ongoing digital upgrades. Companies reported a clear improvement in market momentum, with nearly one-third increasing output to meet growing demand.
New business inflows grew at their fastest rate in 18 months, reflecting a widening customer base and strong sales pipelines. Backlogs also rose sharply the steepest since December 2024 highlighting capacity pressure and residual project delays from previous months.
Employment Accelerates at Fastest Pace Since May 2024
One of the most notable developments is a sharp rebound in hiring. Employment rose at the fastest pace in more than 18 months as companies scaled their workforce to manage rising workloads. While hiring growth remained moderate overall, it marked the quickest expansion since mid-2024, pointing to renewed confidence in the labour market after a relatively subdued period.
Firms cited strong customer demand and healthy sales pipelines as reasons to expand teams, with staffing boosts aimed at lifting production and improving service capacity.
Input Costs and Wage Pressures Increase
The surge in hiring and rising living costs contributed to a notable spike in input costs. November saw the quickest rise in business expenses in 14 months. Wage-driven cost pressures were a major factor, with firms citing the need to raise salaries amid skill shortages and inflationary pressures.
Total staff expenses recorded their steepest increase since April 2018, prompting companies to adjust output prices modestly. Selling charges rose at the fastest pace in three months, although the increases remained mild overall.
Business Confidence Improves Despite Cost Pressures
Forward-looking confidence strengthened as well. Business expectations for the next 12 months rose from October’s three-year low, supported by strong sales pipelines, better demand visibility, and an improving macroeconomic outlook. More than 13% of firms anticipate higher output in the coming year, far outweighing the share expecting a slowdown.
Companies also reported improved supplier performance and greater stability in supply chains, enabling smoother operations and better inventory management.
Dubai’s PMI Signals Steady Expansion
Dubai mirrored the national trend, with its PMI holding steady at 54.5, matching the city’s fastest growth rate since January. Sharp increases in sales and output contributed to the expansion, while staffing levels grew at the quickest pace in almost a year.
Interestingly, input cost pressures in Dubai eased slightly the first dip since August though wage pressures remained as companies continued to strengthen teams to meet rising demand.
A Strong Finish Closing Out 2025
The latest PMI results confirm a broad-based strengthening of the UAE’s non-oil economy. With rising orders, expanding output, accelerating hiring, and improved business confidence, the private sector is set for a strong finish to 2025.
The data reinforces the UAE’s position as a rapidly diversifying, innovation-driven economy offering a stable and opportunity-rich environment for investors, businesses, and professionals.
