The S&P Global UAE PMI edged up to 55 in February 2026 from 54.9 in January, marking the highest reading in a year and signaling a broad-based improvement in the non-oil private sector conditions. Supply chains continued to strengthen, allowing firms to build input inventories more efficiently, while lower fuel prices helped contain cost pressures. New orders rose sharply, driven by tourism, e-commerce, and AI demand. Firms responded to higher workloads by boosting employment, marking the largest rise since last November, and continued to build input inventories, supported by faster deliveries and improved supply chains. On the price front, input prices rose modestly at their slowest pace since last October, while selling prices edged up for the eighth consecutive month amid competitive pressures. Looking ahead, firms remained optimistic, with strong domestic demand, better supply chains, and ongoing project growth supporting a solid start to 2026 despite lingering inflation.
