The United Arab Emirates’ non-oil private sector experienced notable growth in November 2025, achieving its fastest expansion pace in 11 months. The S&P Global UAE Purchasing Managers’ Index (PMI) increased to 54.8 from 53.8 in October, surpassing the long-term average of 54.3. This rise was propelled by stronger sales and heightened employment across the sector, underpinned by product innovation and market diversification.

Stronger Sales and Output Drive Growth

The latest PMI data revealed the sharpest rise in new business volumes since January, with companies attributing growth to technological upgrades and a favourable market environment that supported larger client orders. Output growth accelerated commensurately, matching the joint-fastest rate observed since December 2024. Approximately one-third of survey respondents reported increased activity compared to the previous month, illustrating widespread sectoral gains.

Employment growth hit an 18-month high as firms expanded staffing to meet rising demand. However, businesses continued to face pressure from increasing outstanding workloads and delays in payment settlements. David Owen, Senior Economist at S&P Global Market Intelligence, commented, “Although employment growth remained moderate overall, it was still the quickest in one-and-a-half years, signalling a partial rebound in labour markets after a relatively muted period.”

Cost Pressures Amid Positive Outlook

Alongside hiring gains, companies grappled with rising wage costs driven by both cost-of-living pressures and skill shortages. These factors contributed to a steep increase in overall expenses, prompting many firms to raise their selling prices in efforts to preserve margins. Despite elevated costs, business confidence improved slightly from October’s near three-year low. Over 13% of respondents forecast higher output over the next 12 months, while less than 1% expected declines.

Dubai mirrored national trends, with its non-oil PMI steady at 54.5—indicating the joint-fastest growth since January. Dubai-based firms recorded the fastest rise in staffing numbers in 18 months. Additionally, supply chain conditions improved, as lead times shortened at the quickest pace in a year, thereby easing logistical bottlenecks.

Growth: Market Outlook

November’s 54.8 PMI reading marks the UAE’s non-oil private sector growth at an 11-month peak, reflecting sustained resilience amid global uncertainties. As firms adapt to balancing cost pressures with expanding output and employment, the sector’s outlook remains cautiously positive. These dynamics hold important implications for investors and policymakers aiming to maintain momentum through the coming quarters.