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UAE’s Non-Oil Sector Maintains Growth Momentum In February Amid Rising Orders And Output

The UAE’s non-oil sector continued its steady expansion in February, driven by an increase in new orders and output levels, according to the latest S&P Global UAE Purchasing Managers’ Index (PMI) report.

Sustained Growth In Non-Oil Activity

The seasonally adjusted PMI stood at 55, marking a strong improvement in the non-oil economy and staying above the long-term average of 54.4. While slightly below December’s nine-month high of 55.4, the reading indicates continued resilience in business conditions.

Companies surveyed reported robust growth in input stocks, reflecting higher demand. However, challenges such as staffing constraints, delayed payments, and administrative bottlenecks contributed to an increase in backlogged work, although at a slightly lower rate than January’s eight-month peak.

New Orders And Employment Trends

  • 29% of businesses saw increased activity in February, while only 5% reported a decline.
  • Market demand was supported by stronger advertising initiatives and stable output prices.
  • Despite growth, competition from local and international players slightly slowed the expansion of order books.
  • Inventory levels reached their highest in over a year, as businesses ramped up input purchases.

Employment levels remained largely stable, with only a few firms increasing their workforce. While order volumes grew significantly, staffing constraints limited businesses’ ability to scale operations quickly.

Price Pressures And Market Outlook

David Owen, Senior Economist at S&P Global Market Intelligence, noted that while competition has kept price hikes in check, rising cost pressures have led to a slight acceleration in selling price inflation.

“Firms continue to feel the pressure of intense competition, which has capped price increases,” Owen said. “Nevertheless, businesses are eager to secure new work, leading to a rapid accumulation of backlogged orders.”

Looking Ahead

While the UAE’s non-oil sector remains on a growth trajectory, businesses face challenges related to operational delays and cost pressures. However, sustained demand and increased input investments signal a positive outlook for the coming months.

EU Farm Output Prices Decline For The First Time In Nine Months

EU Market Adjustments Signal New Price Trends

Agricultural output prices across the European Union declined in the fourth quarter of 2025, marking a shift after several quarters of increases. Data from Eurostat shows that farm gate prices fell by 1.9% compared with the same period in 2024.

Crisis of Declining Prices In Select Markets

Cyprus recorded one of the more notable decreases in agricultural input costs among EU member states, with prices falling by 2.6% compared with Q4 2024. The reduction eased cost pressures for the local agricultural sector following periods of higher prices earlier in 2025. Across the EU, prices for goods and services consumed in agriculture remained relatively stable. Non-investment inputs such as energy, fertilisers and feedingstuffs showed limited overall changes during the quarter.

Country-Specific Divergence In Price Movements

Eurostat data highlights considerable variation across member states. Fifteen EU countries recorded declines in agricultural output prices. Belgium registered the largest decrease at 12.9%, followed by Lithuania (8.2%) and Germany (6.0%). At the same time, twelve countries reported increases in output prices. Ireland recorded the strongest rise at 6.8%, followed by Slovenia (5.6%) and Malta (4.2%).

Stability In Agricultural Inputs Amid Commodity Shifts

Agricultural input prices also showed mixed developments. Eleven member states recorded declines, including Cyprus (2.6%), Belgium (2.1%) and Sweden (2.0%). Other countries experienced moderate increases, including Lithuania (4.2%), Ireland (3.3%) and Romania (2.5%). Among major agricultural commodities, milk prices declined by 4.1% while cereal prices fell by 8.9% across the EU. In contrast, fertilisers and soil improvers increased by 7.9%, reflecting continued volatility in input markets.

Outlook For EU Agriculture

The latest Eurostat data points to uneven price developments across the EU agricultural sector. While input prices remained broadly stable in many markets, movements in output prices varied significantly between member states. These trends highlight the need for farmers and policymakers to adapt to shifting commodity prices and changing cost structures across the European agricultural market.

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