UAE’s non-oil sector records strong growth with a PMI of 57.4 in December

The non-oil sector in the UAE experienced its second-best growth in four-and-a-half years, as the Emirate’s Purchasing Managers’ Index reached 57.4 in December 2023, as per an economic tracker.

The latest S&P Global PMI report attributes the December growth to a surge in new orders, supporting robust output.

In November, the UAE’s PMI was 57, while in October and September, it stood at 57.7 and 56.1, respectively.

Any PMI reading above 50 indicates growth in the non-oil sector, while readings below 50 signal contraction, according to S&P Global.

“The UAE non-oil economy closed the year with another impressive expansion, confirming the strongest quarterly upturn since the second quarter of 2019 and putting the sector in a favorable position for 2024,” said David Owen, senior economist at S&P Global Market Intelligence.

He added: “Not only did businesses enjoy another substantial increase in output, but sentiment data suggested that they expect this growth to continue, with year-ahead expectations among the highest seen since prior to the COVID-19 pandemic.”