Activity within the UAE’s non-oil private sector economy stayed “robust” in December, with the economy on course to register its fastest pace of growth in over 10 years in 2022.

Although the seasonally adjusted S&P Global purchasing managers’ index declined to 54.2 last month from 54.4 in November, it remained above the 50-mark dividing growth from contraction.

This latest reading indicates “a robust improvement in the health of the non-oil sector,” despite a growth slowdown, higher inflation and global economic uncertainty, The National reports.

In addition, output growth continued at a steep pace last month, associated with a rise in sales and client numbers.

Moreover, non-oil firms’ new business continued to increase, albeit at a slower pace.

“Firms enjoyed a renewed fall in their expenses as commodity prices moderated and input availability improved, which supported an additional cut to selling prices,” according to David Owen, S&P Global Market Intelligence economist.

Output charges fell for the eighth consecutive month as businesses sought additional sales through price promotions.

Additionally, the UAE economy has made a robust rally from the pandemic-fuelled slowdown. The economy was forecast to rise by 7.6% last year, an 11-year high, predominantly driven by both the oil and non-oil sectors. This is according to estimates within the UAE Central Bank’s Quarterly Economic Review 2022.

Emirates NBD forecast 7% growth last year, whilst First Abu Dhabi Bank estimated 6.7% growth, and Abu Dhabi Commercial Bank’s growth forecast stands at 6.5%. The UAE economy is predicted to grow by 3.9% in 2023, says the Central Bank.

Moreover, non-oil foreign trade in the UAE rose 19% between January and September last year to around Dh1.64 trillion ($446 billion), compared to the first nine months of 2021, according to the Ministry of Economy.

In addition, tourism sector revenue hit Dh19 billion during the first half of 2022, whilst the total number of hotel guests during this time reached 12 million.