The S&P Global UAE PMI inched up to 55.0 in February 2026 from 54.9 in January, its highest level in a year and indicating a broad-based improvement in non-oil private sector conditions. Supply chains continued to strengthen, enabling firms to build input inventories more efficiently, while lower fuel prices helped keep cost pressures in check.
New orders recorded a sharp increase, supported by robust tourism activity, expanding e-commerce, and rising demand linked to artificial intelligence. In response to the heavier workloads, firms stepped up hiring, posting the strongest increase in employment since last November, and continued to accumulate input inventories, aided by faster delivery times and more reliable supply chains.
On the price front, input costs rose only modestly, at their slowest pace since last October, while output charges edged higher for the eighth consecutive month, reflecting ongoing competitive pressures. Looking ahead, firms remained broadly optimistic, with strong domestic demand, improved supply conditions, and continued project pipelines underpinning a solid start to 2026, even as inflationary risks persist.
