The S&P Global UAE PMI eased slightly to 54.2 in December 2025 from November’s nine-month high of 54.8, but continued to signal a robust improvement in non-oil private sector conditions. Business activity expanded at one of the fastest rates seen this year, supported by firm demand, rising customer orders, and favourable domestic policies. Output growth remained strong, with over a quarter of firms reporting higher production as workloads increased. Employment growth, however, was more cautious, as companies faced intensifying cost pressures and tighter margins. Input costs rose at the sharpest pace in over a year, driven by higher wages, transport, and maintenance expenses, prompting firms to manage costs through leaner inventories. Despite these pressures, selling prices increased modestly and business confidence stayed positive, underpinned by stronger sales pipelines and resilient demand heading into 2026.

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