Strong demand and increased business activity drove growth in the UAE’s non-oil private sector to its fastest pace in nine months in December, a survey by S&P Global showed on Monday.

The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) rose to 55.4 in December from 54.2 in November, marking a third consecutive monthly increase and remaining above the 50.0 threshold that separates expansion from contraction.

The survey pointed to a sharp rise in new business, with the new orders subindex climbing to 59.3 from 58.0, signalling robust demand. However, export demand growth weakened, with that subindex hitting a seven-month low.

Capacity constraints and hiring challenges

Backlogs continued to accumulate rapidly, indicating pressure on capacity.

“Capacity levels remain under considerable stress, illustrated by another marked increase in backlogs of work,” said David Owen, senior economist at S&P Global Market Intelligence.

“While margin constraints appear to be holding some firms back from recruiting more staff… there is certainly a need to boost resources to ensure firms capitalise on demand in the new year.”

Slower job growth, easing cost pressures

Despite rising demand, employment growth remained sluggish, with job creation at one of the slowest rates in over two-and-a-half years.

However, input cost inflation eased to its lowest level since March 2024, providing some relief to businesses. Many firms continued discounting prices amid strong competition.

Despite solid expansion, business confidence remained subdued, suggesting firms remain cautious about future conditions.

In Dubai, the UAE’s commercial hub, the headline PMI rose to 55.5 in December from 53.9 in November, indicating the strongest growth in operating conditions in nine months.

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has approved the implementation of a series of housing projects worth $1.47bn (Dhs5.4bn) to benefit citizens across different areas in the emirate.

The projects will see 3,004 new homes being built for Emirati citizens. Of these, 1,181 homes will come up in Latifa City for beneficiaries under the housing loan category.

For beneficiaries in the housing grant category, the projects envisage 606 new homes in Al Yalayis 5, 432 homes in Wadi Al Amardi, 398 homes in Al Awir 1, 200 homes in the Makan area of Hatta, 120 homes in Oud Al Muteena, and 67 homes in the countryside and rural areas of Dubai.

The housing projects, offering diverse options for Emirati citizens, align with the Sheikha Hind bint Maktoum Family Programme launched by Sheikha Hind bint Maktoum bin Juma Al Maktoum, wife of Sheikh Mohammed.

“Housing programmes for citizens represent a top priority. We are committed to ensuring that our people have the best living standards and all the support they need to foster stable family environments and community wellbeing,” Sheikh Mohammed said in a social media post on X.

“People are the foundation of our renaissance, our successful development experience, and the cornerstone of the global standing we have achieved in all respects.”

Dubai’s housing programs for citizens prioritise sustainable urban planning to address future housing demands by optimising the use of available land within the emirate while adhering to strict standards to ensure long-term sustainability.

Meanwhile, the Sheikha Hind bint Maktoum Family Programme seeks to support the growth, stability and well-being of families in Dubai, strengthen community values and enhance the quality of life by offering financial, social and educational support.

The initiative reduces the monthly premium for housing loans to a minimum of Dhs3,333 for beneficiaries of the Dubai Weddings programme, provided their monthly income does not exceed Dhs30,000.

The programme aligns with the objectives of the Dubai Social Agenda 33, which aims to foster happy, connected, and value-driven families and double the number of Emirati families in Dubai by 2033.

Read: Abu Dhabi approves Dhs3.3bn housing benefits package for citizens

Egypt is expected to receive a $1.2bn disbursement from the International Monetary Fund (IMF) this month as part of an $8bn programme with the international lender, Finance Minister Ahmed Kouchouk said on Sunday.

Last month, the IMF said it reached a staff-level agreement with Egypt on the fourth review of the 46-month Extended Fund Facility arrangement, potentially unlocking the $1.2bn disbursement.

“The (IMF’s executive) board will convene in January and, God willing, we will receive the amount in January,” Kouchouk told ON TV in an interview, adding Egypt had not requested an increase to the $8bn loan.

Egypt, grappling with high inflation and shortages of foreign currency, agreed to the expanded IMF programme in March. A sharp decline in Suez Canal revenue caused by regional tensions over the last year compounded its economic woes.

Kouchouk also said Egypt is targeting about $3bn in the remainder of the current fiscal year, which runs until the end of June, through “diverse issuances” to investors without elaborating further. His comments came in response to a question about whether Egypt plans to offer new bonds to foreign investors this year.

Read: IMF grants Egypt initial approval of $1.2bn on fourth review

An Etihad Airways Boeing 787-9 Dreamliner aborted take-off at Melbourne Airport on Sunday after a landing gear malfunction led to smoke and damage to two of the aircraft’s wheels, the airline said.

Flight EY461, carrying 271 passengers, was accelerating for departure to Abu Dhabi when the flight crew opted to reject take-off owing to a technical issue, Etihad said in a statement.

“The aircraft was safely brought to a stop on the runway and emergency services attended as a precaution,” the airline said, adding that all passengers disembarked safely.

Footage from the scene showed fire crews surrounding the aircraft, with foam applied to the landing gear as a precautionary measure.

Etihad said it was assisting passengers with alternative travel arrangements and apologised for the disruption. “The safety and comfort of our guests and crew remain our highest priority,” it said.

The airline did not specify the nature of the technical issue or the extent of the damage to the aircraft. Melbourne Airport operations were briefly affected but later resumed normal service.

According to the latest data from the Dubai Department of Economy and Tourism’s 2024 Performance Report, the emirate experienced a 9 per cent increase in international tourist arrivals for the first 11 months of 2024, with a total of 16.79 million visitors between January and November, up from 15.37 million during the same period in 2023.

November saw 1.83 million international tourists, while January and February attracted 1.77 million and 1.9 million tourists, respectively.

Other months showed equally strong performance, with October reaching 1.67 million visitors.

Regional breakdown

Western Europe remained the top source region for international visitors to Dubai, contributing 20 per cent of the total arrivals with 3.3 million tourists. South Asia followed closely, accounting for 17 per cent of the total, with 2.86 million visitors.

The Gulf Cooperation Council (GCC) countries ranked third, contributing over 2.5 million tourists, or 15 per cent of the total, while the Commonwealth of Independent States (CIS) and Eastern Europe saw 2.35 million visitors, accounting for 14 per cent.

Other regions also made notable contributions: the Middle East and North Africa (MENA) accounted for 12 per cent with 1.93 million tourists, while Northeast and Southeast Asia contributed 10 per cent with 1.62 million.

Visitors from the Americas, Africa, and Australia made up 7 per cent, 5 per cent, and 2 per cent of total visitors, respectively, with figures of 1.12 million, 791,000, and 319,000.

Hotel industry performance

Dubai’s hotel sector has mirrored the tourism growth, with the total number of hotel rooms reaching 153,390 by the end of November, an increase from 149,685 at the end of 2023.

The growth of hospitality establishments was also reflected in a 3 per cent rise in hotel room bookings, which exceeded 39.19 million during the first 11 months of 2024, compared to 38.01 million in the same period the previous year.

The average length of stay for guests was recorded at 3.6 nights, suggesting continued demand for both short-term and extended stays.

The breakdown of hotel room categories shows a clear dominance of higher-end properties. Five-star hotels accounted for 35 per cent of the total rooms, with 53,977 rooms in 168 establishments.

Four-star hotels followed, with 43,345 rooms across 194 properties. Budget accommodations and mid-range hotels also contributed, with 29,701 rooms across 278 establishments in the one- to three-star category.

Also, Dubai’s luxury hotel apartments comprised 13,944 rooms in 80 establishments, while mid-level hotel apartments numbered 12,423 across 108 properties.

Dubai’s hotel sector has also benefited from rising rates. The average daily rate (ADR) for the first 11 months of 2024 was Dhs520, a 2 per cent increase from Dhs510 in the previous year.

The average revenue per available room (RevPAR) showed a 3 per cent rise, reaching Dhs405 compared to Dhs394 in 2023.

At a glance: Dubai’s 2024 tourism performance

• Total international visitors (January-November 2024): 16.79 million
• Monthly breakdown: November – 1.83 million, October – 1.67 million, January – 1.77 million
• Top source regions: Western Europe (3.3 million), South Asia (2.86 million), GCC (2.5 million)
• Hotel rooms available (end-November 2024): 153,390
• Hotel bookings (January-November 2024): 39.19 million room nights
• ADR: Dhs520 (up 2 per cent YoY)
• RevPAR: Dhs405 (up 3 per cent YoY)