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The UAE’s non-oil private sector recorded strong growth in January 2026, with new orders and sales rising to multi-year highs.
The S&P Global UAE Purchasing Managers’ Index (PMI) climbed to 54.9, the highest level in 11 months, up from 54.2 in December. A reading above 50 signals economic expansion.
Strong Sales and New Orders
The report highlighted a sharp increase in new business and rising output expectations. Firms expanded purchasing and boosted stock levels as lead times shortened.
“New orders increased steeply, prompting firms to lift output and expand purchases,” said David Owen, senior economist at S&P Global Market Intelligence.
Businesses credited the growth to improving economic conditions and stimulated activity in sectors such as real estate and technology.
Sales Reach Two-Year High
Non-oil companies recorded the fastest increase in sales in 22 months, driven by domestic client demand and positive reception to new products and services.
While sales surged, firms faced rising competition, leading to only marginal increases in prices.
Continued Economic Momentum
The UAE aims to diversify its economy beyond oil. Investments in technology, manufacturing, and tourism have supported growth.
The UAE Central Bank reported 2025 GDP growth of 5%, with the non-oil sector expanding 4.9% and hydrocarbons 5.4%. Growth is expected to accelerate to 5.2% in 2026.
Dubai’s Non-Oil Sector Also Expands
Dubai, the region’s tourism and leisure hub, saw new business growth hit a 22-month high in January.
Rising client confidence and spending fueled stronger sales, stockpiling, and job growth in the private sector. Businesses also projected further demand increases over the coming months.
