UAE non-oil growth accelerates to 20-month high

The UAE's non-oil private sector experienced its fastest expansion since December 2024 in August, according to S&P Global Market Intelligence. The seasonally adjusted Purchasing Managers' Index rose to 55.3 from 52.7 in July, indicating continued economic growth above the 50-point threshold separating expansion from contraction.

New business activity and output growth both accelerated, reaching a six-month high, while import orders climbed for the second consecutive month, signaling broader demand beyond the domestic market. Despite these positive indicators, businesses remained cautious about hiring due to ongoing geopolitical uncertainty. In Dubai specifically, the non-oil private sector PMI climbed to 54.1 from 51.7 in July, with output and new orders increasing at six-month highs.

This improvement was driven by stronger client spending, higher export trade, and reduced supply disruptions. However, employment fell for the second consecutive month, reflecting businesses' cautious approach to expanding their workforces. Overall, cost pressures eased, with input costs rising at the slowest pace in nearly three years, as firms adapted their procurement strategies to a more uncertain trading environment.