UAE Non-Oil Sector Surges to Fastest Growth Since December 2024 Amid Post-Conflict Recovery

Business activity within the non-oil private sector in the UAE experienced its fastest pace of improvement in August since December 2024, signaling a robust recovery as companies move past the disruptions caused by the Iran war.

Data from the seasonally adjusted S&P Global UAE Purchasing Managers' Index revealed an increase to 55.3, rising from 52.7 in July. Any reading exceeding 50 points to economic expansion, whereas a figure below that threshold denotes contraction.

This latest PMI expansion was driven by a significant surge in new business—reaching its joint-strongest level in over two years—alongside accelerated output growth, inventory building, improved supply chains, and reduced price pressures.

David Owen, principal economist at S&P Global Market Intelligence, noted that the UAE's non-oil economy has shifted into a higher gear, demonstrating that firms are adapting more effectively to the prevailing market environment through accelerated demand, improved delivery times, and softer cost pressures.

According to the S&P Global survey, this robust upturn reflects a blend of increasing sales momentum and renewed stock accumulation. Furthermore, businesses observed an uplift in customer activity as economic caution stemming from the Middle East conflict steadily lessened. Export demand also rose, registering consecutive expansions following a period of decline throughout the second quarter.