UAE - Mubasher: The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) went up to 55.0 in February from 54.9 in January 2026, according to the latest data released by S&P Global.
This reading marks a 12-month high and signalling a robust improvement in non-oil private sector business conditions. It also highlighted the sharpest rise in business activity since April 2024, driven by rapid growth in new orders.
Firms attributed the expansion to supportive demand conditions, successful contract awards, and targeted marketing efforts, particularly across construction, real estate, logistics, and technology sectors.
Meanwhile, the new order growth remained steep and was only slightly softer than January’s near two-year high.
The companies cited stronger tourism flows, rising e-commerce activity, and growing demand for AI-related products as key contributors.
Export sales increased at a modest pace, indicating that overall sales growth was largely supported by domestic demand.
Strong inflows of new work led to a marked accumulation of backlogs, as firms reported administrative delays and shipment checks alongside new project launches.
As for employment, the levels rose modestly, reflecting continued efforts to expand capacity amid sustained demand pressures.
The input price inflation eased in February, rising at the slowest pace since last October. Many respondents linked the moderation to lower fuel prices, although material costs remained elevated.
Output prices increased for the eighth consecutive month, but only slightly, as competitive pressures limited pricing power.
Supply chain conditions improved further, with supplier delivery times shortening at one of the fastest rates in over six years. This enabled firms to rebuild input inventories for the second consecutive month, despite a slowdown in purchasing growth.
Looking ahead, businesses maintained solid expectations for output over the next 12 months, although confidence levels eased from January’s recent high.
David Owen, Senior Economist at S&P Global Market Intelligence, said: “The UAE PMI signalled the strongest growth in non-oil business conditions for a year in February, with output increasing rapidly in response to strong inflows of new work. So far, the data points to an encouraging picture for the domestic economy in the first quarter (Q1).”
“The outlook is also positive, as demand has continued to pressurise business capacity, suggesting additional expansions in output and employment may be necessary,” he noted.
The economist added: “Non-oil firms also signalled a slowing of input cost inflation in February, helping to soothe concerns after last month’s spike in price pressures."
Dubai PMI
The S&P Global Dubai Purchasing Managers’ Index declined to 54.6 in February from 55.9 in January, highlighting a softer, yet still sharp, expansion in Dubai’s non-oil private sector.
Output and new order growth in Dubai eased but remained strong, supported by new projects, marketing initiatives, AI adoption, population growth, and increased tourism.
Employment rose at the fastest pace in two years, reflecting positive business expectations.
Dubai firms also recorded slower input cost inflation, with total expenses rising at the weakest rate in seven months. However, average selling prices increased at a faster pace compared to January.
