UAE non-oil sector records fastest growth since 2024 despite Iran war
Business activity in the UAE's non-oil private sector in August improved at the fastest pace since December 2024 in a clear sign of recovery as companies shake off the impact of the Iran war . The seasonally adjusted S&P Global UAE Purchasing Managers' Index climbed to 55.3 from the 52.7 recorded in July. A reading above 50 indicates growth in economic activity, while one below indicates a…
The UAE's non-oil private sector experienced its fastest growth since December 2024 in August, signaling a robust recovery, according to S&P Global Market Intelligence. The seasonally adjusted Purchasing Managers' Index (PMI) rose to 55.3, up from 52.7 in July. A PMI above 50 indicates growth in economic activity, while a reading below 50 suggests contraction.
The latest PMI was driven by a significant surge in new business, the joint-strongest level in over two years, alongside stronger output growth, inventory expansion, reduced supply constraints, and lower price pressures. David Owen, principal economist at S&P Global, noted that the UAE's non-oil economy has "shifted decisively into a higher gear," with August's PMI indicating that firms are adapting better to the current market environment.
The robust upturn was attributed to a combination of growing sales momentum, increased stock build-outs, and improved customer activity, despite ongoing economic caution stemming from the Iran war. Export demand also saw a marked increase, marking two consecutive expansions following a decline throughout the second quarter.
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