The United Arab Emirates' monthly purchasing manager's index (PMI) rose to an all-time high, further fueling fears of a repeat of the property bubble that hit the region in 2009.
HSBC said April's reading increased to 58.3 from 57.7 in March – an all-time high in five years the survey has been running -- signaling a solid expansion.
"At 66 points, new orders were also exceptionally strong, suggesting that the robust performance is likely to persist," Simon Williams, Middle East Chief Economist at HSBC, wrote in the bank's latest report.
In the note, HSBC pointed to the UAEs' resilience despite emerging economies in Latin America, Asia and Europe appearing to lose momentum.
"Cost pressures are relatively contained and the benefits of growth are feeding through into stronger employment", Tim Fox, Chief Economist at Emirates NBD, told CNBC. "The data presents conditions in the UAE very favorably".
Stocks on the benchmark Dubai Financial Market (DFM) closed 0.8 percent higher on Tuesday, bringing year-to-date gains to over 55 percent.