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The Arabian News > Economics > UAE Private Sector Growth in 9 Months on Demand
Economics

UAE Private Sector Growth in 9 Months on Demand

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Introduction

The UAE private sector posted its strongest growth in nine months. As demand increased sharply across non-oil industries. The UAE non-oil PMI rose to 54.8. It signals strong expansion. Companies reported a steep rise in new orders. As buyers gained confidence. Firms increased output to meet higher demand. Businesses also saw better supply conditions. As delivery times have improved. Purchasing activity rose as companies prepared for continued demand. The data confirms that the UAE economy remains strong. As diversification efforts accelerate. Analysts say the sector shows resilience despite global uncertainty.

Contents
IntroductionMarket Confidence ImprovesEmployment and Prices RiseBusiness Activity Across Major SectorsConclusion

Market Confidence Improves

New orders climbed at the fastest pace this year. Companies saw strong activity from local customers and regional partners. Firms said effective marketing and competitive pricing boosted sales. Buyer confidence increased spending across sectors. Rising tourism and strong retail activity supported the trend. Companies responded by expanding inventories and increasing production. Analysts say the rise in new orders reflects the UAE’s growing consumer base.

Business activity in UAE's non-oil private sector hits 9-month high in  December - Arabian Business: Latest News on the Middle East, Real Estate,  Finance, and MoreEmployment and Prices Rise

Employment increased as firms hired more workers to handle rising workloads. Companies expanded teams to improve service speed and output quality. Wage costs rose slightly as firms competed for skilled employees. Input prices also increased due to higher logistics and raw material costs. Companies passed some costs to customers. It caused a moderate rise in output prices. Firms remained confident about demand. They continued to expand capacity. The employment rise signals long-term optimism across industries.

Business Activity Across Major Sectors

Business activity rose sharply across construction, retail, manufacturing, and services. Companies increased production as demand stayed strong. Many firms benefited from smoother supply chains as global shipping improved. Higher activity helped boost revenues and profit levels. Companies also invested more in digital tools and infrastructure for long-term growth. Analysts say the UAE’s business-friendly environment continues to support strong expansion.

Companies Expect More Growth

Firms expressed strong optimism for future activity. Companies expect demand to remain high in the coming months. Many plan to increase capital spending and expand product offerings. Confidence remains high due to stable policies, strong tourism, and ongoing investments. Analysts say the positive PMI reading points to continued expansion in early 2026. The UAE’s  growth shows its status as a leading economic hub.

Conclusion

The UAE private sector delivered its strongest performance in nine months. As the PMI reached 54.8. Rising orders, increased hiring, stronger output, and improved supply conditions all supported the success. Companies remain confident as demand grows across non-oil sectors. The latest data confirms the UAE’s solid economic momentum. It highlights strong opportunities for businesses in the months ahead.

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TAGGED:private sector expansion UAEUAE business activityUAE economic growthUAE employment growthUAE inflation trendsUAE market demandUAE non-oil PMIUAE private sector growth
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