UAE - Mubasher: The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) rose from 54.2 last December to 54.9 in January 2026, according to the latest S&P Global PMI data.
Non-oil companies witnessed a rapid increase in new business at the beginning of 2026, marking the fastest growth in nearly two years.
Likewise, the output expectations surged and led to a steep increase in purchasing. However, the uplift in demand was also helped by a suppression of margins.
Survey members indicated that rising intakes of new business had stimulated activity, while some highlighted an improvement in economic conditions, particularly in prominent sectors, including real estate and technology.
Business expectations improved to the highest level in 15 months, as panellists widely predicted further improvements in demand conditions, as well as expansion efforts.
David Owen, Senior Economist at S&P Global Market Intelligence, said: "UAE's non-oil economy started the year on a solid footing, as new orders increased steeply, prompting firms to lift output and sharply expand their purchases.”
“Stock levels were also boosted as lead times decreased rapidly, allowing companies to reduce some of the strain on business capacity,” Owen added.
The economist elaborated: "A steep increase in purchasing activity, the largest in six and a half years, had a strong impact on input prices in January. Cost inflation across the sector climbed to an 18-month high, with firms facing higher charges on a range of materials."
