In January of the current year, the private sector of Dubai, excluding oil, demonstrated significant improvement. The Purchasing Managers' Index (PMI), developed by IHS Markit, stood at 55.3 points, down slightly from the highest level in nine months in December 2024 (55.5 points), but remaining above the general, broad indicator (55 points). According to the index, such growth is attributed to increased flow of new business orders, which companies explain as favorable market conditions, improved sales, and an expanded client base. Input costs decreased due to a drop in price growth for production resources to a three-month minimum.
Recent index data indicated that the oil sector of the UAE economy retains its strength at the beginning of 2025, with continued increases in business activity and new orders stimulated by favorable market conditions and reduced costs. The index rose to 55 points in January 2025, which indicates a significant improvement in the situation in the sector.
More than a quarter of participating companies in the study reported a heightened level of activity, which is associated with favorable market conditions and an increased number of clients. Growth rates were supported by internal demand, while oil companies faced reduced prices and production costs to a minimum over the past 12 months. Improved market conditions contributed to accelerated deliveries, and production significantly increased in response to increased sales.
Economic expert from S&P Global Market Intelligence, David Owen, noted that "the business activity index in the UAE indicates a strong dynamic in the oil sector in January, where key indicators remained practically at the level of December, which was the highest in nine months." He added, "The strong expansion of activity and sales, as well as reduced production costs reflect a healthy economic situation."
