The non-oil private sector in the UAE is growing at the fastest pace in 11 months

Non-oil private sector activity in the UAE witnessed the fastest expansion in 11 months last November, driven by strong market conditions that enhanced the growth of new businesses. The expansion also led to a faster increase in employment levels, according to the main purchasing managers’ index in the Emirates of S&P Global, issued yesterday.

The index hit a nine-month high of 54.8 points in November, up from 53.8 points in October, and above its long-term average of 54.3 points.

The latest reading indicated a strong improvement in business conditions, with companies seeing greater inflows of new business and generally positive market conditions.

According to the index, companies raised their sales prices again in November 2025, with the aim of benefiting from strong demand and compensating for higher costs of production inputs, expressing higher optimism about the level of activity during the next 12 months.

The volume of new business rose in November, with the growth rate reaching its strongest levels since January 2025.

The companies participating in the index study indicated that the supportive market environment facilitated the increase in customer demands and enhanced activity in many sectors. The companies also pointed to product innovation, market diversification, and technology modernization as main drivers for the increase in sales.

The increase in new orders led to a significant expansion in non-oil private sector activity, as companies increased their production to meet demand. The growth rate of activity was the fastest in more than a year and a half, equivalent to December 2024, with nearly two-thirds of participating companies reporting an increase since the previous month.

Companies also showed a greater willingness to hire during November, especially since the increase in sales contributed to a sharp rise in the levels of pending work.

Many companies pointed to the strength of sales channels and the suitability of the commercial environment as two main factors that support optimism.

In Dubai, non-oil private sector companies witnessed another noticeable improvement in operating conditions during November.

The Dubai Purchasing Managers’ Index settled at 54.5 points in November, indicating a strong improvement in business conditions, the fastest since January. Activity growth has also accelerated since October, with sales rising sharply.

Non-oil producing companies in Dubai reported an increase in employee numbers in the middle of the fourth quarter, the fastest increase in 18 months, while supply chains witnessed improvement in November.