The UAE’s non-oil private sector activity expanded at its fastest pace in 11 months in November, marking a solid improvement in activity on the back of favorable market conditions and a jump in business intakes. The country’s seasonally adjusted S&P Global PMI (pdf) hit a nine-month high of 54.8 in November, up from 53.8 a month earlier. November’s reading lands just above the 54.3 survey long-run average.

New orders picked up in November, hitting their highest level in 11 months, with the surveyed businesses citing robust market conditions and strong demand as behind the increase in client orders. Firms attributed the strong sales volumes to product innovation, market diversification, and technological advancements. The new orders subindex reached 57.4 in November, up from a 56.0 reading last month, according to Reuters.

Business activity accelerated to 61.6 in November from 58.6 a month earlier, marking the joint-fastest rate in over 18 months, similar to last December’s strong readings, Emirates NBD said in a note.

Employment rose to its highest levels in a year and half during the month, but at a slow rate. The overall increase in employment came on the back of elevated sales, with firms highlighting further intensified capacity pressures due to “delays in settling payments related to previous work,” according to the report.

Input costs soared to mark their steepest increase since September 2024, as purchasing activity surged for the third month in a row, while firms raised selling prices to offset the costs. Firms also consumed inputs at a faster rate, marking the fourth reduction in stocks in five months.

“The sharper rise in employment was accompanied by a steeper increase in wage costs, as firms cited the need to raise salaries in response to cost-of-living pressures and skill shortages,” S&P Global Senior Economist David Owen wrote in the report.

Confidence rebounded from October’s dip, with more than 13% of firms anticipating greater output levels in 2026, while around 1% of participants forecast a drop for the coming year. The upbeat sentiment is boosted by an anticipated increase in sales accompanied by positive market conditions.

OVER IN DUBAI-

Dubai’s non-oil private sector maintained its growth levels, remaining unchanged from October’s reading of 54.5, though business activity grew amid a significant surge in sales intakes.

Employment rates inched up during the month, recording the highest levels in nearly a year and a half. The emirate saw a rise in wage costs similar to what was reported for the UAE, with output charges also increasing in tandem.

Abu Dhabi and northern Emirates driving growth: Dubai’s flat reading meant that the UAE-wide growth of 1.9 m-o-m “was driven entirely by Abu Dhabi and the northern Emirates, which collectively are now expanding even more strongly than Dubai,” GCC Economist and Khalij Economics Director Justin Alexander told EnterpriseAM.

ELSEWHERE IN THE REGION-

  • Saudi Arabia’s non-oil private sector continued to expand in November, albeit at a slower rate, with the seasonally adjusted figure dropping to 58.5 in November, down from 60.2 in October;
  • Egypt saw its non-oil private sector jump back into the green in November, breaking a nine month stretch in contraction territory.
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