Economy

Non-oil activity hits 9-month high in UAE

January 6, 2025, 2:48 PM

non-oil PMI downtown Dubai — Dubai's PMI rose from 53.9 in November to 55.5 in December

PMI for December rated 55.4
Recruitment struggling to keep up
Saudi Arabia PMI down slightly

Non-oil activity hit a nine-month high in the UAE in December.

The country logged a 55.4 rating for the month in S&P’s global purchasing managers’ index (PMI) in the non-oil economy, up from 54.2 in November.

Survey respondents said new business in the UAE had expanded at the fastest rate for nine months.

However, they said backlogs were increasing as recruitment struggled to keep up with new business. The volume of outstanding work increased at one of the fastest rates since 2009.

UAE economic indicators

The Dubai PMI rose from 53.9 in November to 55.5 in December.

Saudi Arabia’s PMI was 58.4 in December, down slightly from the country’s 17-month high of 59 in November but still far above the 50.0 no-change point.

Cost inflation remained sharp in December because of strong input demand, although an easing of job creation helped to soften salary pressures.

Naif Al-Ghait, chief economist at Riyad Bank, said: “The non-oil GDP is expected to grow by more than 4 percent in 2024 and 2025, driven by substantial improvements in business conditions.

“A significant rise in new orders has bolstered this growth, indicating increased market confidence and demand.”

Saudi Arabia economic indicators

Turkey's PMI rose to 49.1 in December from 48.3 in November, signalling a move towards stabilisation of non-oil sector activities. Demand remained subdued and input costs increased in December because of the lira’s weakness against the dollar.

Saudi Arabia’s non-oil private sector hits 6-month high

Kuwait’s headline PMI was 54.1 in December, down from 55.9 in November, but still the third-strongest reading since the Kuwait survey began in September 2018. The Arabian Gulf Cup football tournament contributed to an expansion of business activity, with advertising and competitive pricing also helping to drive growth.

Egyptian non-oil business conditions deteriorated at the end of 2024, with the PMI falling to 48.1 in December from 49.2 in November. The pace of decline was the sharpest for eight months. Reports from survey panellists indicated that the downturn was mainly due to subdued new order volumes.