Non-oil activity remains unchanged in April: The UAE’s non-oil activity saw growth levels remaining largely unchanged from the previous month, with robust business activity indicating “a solid strengthening of operating conditions,” according to S&P Global UAE PMI (pdf). The headline figure came in at 54.0 during the month, remaining unchanged from March.

REMEMBER- The all-important 50.0 mark is the threshold separating contraction from growth. Anything above 50 denotes expansion, while anything below indicates contraction.

New orders and employment were up: The new orders subindex rose slightly to 56.9 in April, up from 56.3 in March, partially driven by the strongest upturn in international demand for five months, which came in tandem with increased domestic clients, Reuters writes. Meanwhile, hiring went up to its highest level in nearly a year, with the subindex for employment registering a reading of 51.4 as firms “increased hiring to manage work backlogs and support future business activity,” National Bank of Kuwait’s Issa Hijazeen told EnterpriseAM UAE. However, “employment growth was still modest overall, adding to suggestions that some firms may be struggling to recruit,” S&P Global senior economist David Owen said

Business activity also continued to rise, but it did so at its slowest pace in seven months, with firms indicating that they faced difficulties with completing existing work amid payment delays.

Meanwhile, input purchases saw a considerable increase during the month, with companies reporting growing demand for materials and components. However, the growth in input purchases slowed from March’s 68-month high. Stock levels also mostly remained unchanged, as growth in the stocks of some firms was offset by reductions elsewhere.

Input prices were also on the rise, with firms reporting upticks in both purchasing and staff costs. Output prices rose in tandem with this increase, but they did so at a slower pace than March, as companies looked to lower prices amid strong competition.

Business sentiment remains positive: “Looking ahead, surveyed firms remained confident that sales pipelines and resilient market conditions would support activity going forward. The degree of confidence ticked up for the third month running and was the best recorded in 2025 so far,” the report reads. “Firms are also hopeful that elevated demand levels and strong pipelines, as characterised by steeply rising backlogs, should propel activity higher in the coming months,” Owen said.

MEANWHILE, IN DUBAI-

Business conditions in Dubai improved at a slower pace in April, with the Dubai PMI slipping to a low of 52.9 in April, down from 53.2 in March, with firms reporting the “the slowest pace of growth since last October,” the report reads. However, order book volumes continued to increase, with output levels increasing slightly from the three-and-a-half-year low recorded in March. Employment also expanded during the month, as firms looked to bring up their capacity.

On the flip side, confidence is taking a hit: Contrary to overall UAE sentiment, “[Dubai] companies showed a lower degree of confidence towards future activity levels. In fact, expectations were among the weakest on record,” according to the report.

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