UAE Non-Oil Private Sector Growth Hits 4-Month High in July, Driven by Surging New Orders and Exports
The United Arab Emirates' non-oil private sector recorded its fastest pace of expansion in four months during July 2026. This growth was primarily driven by new orders soaring to a five-month high and a notable rebound in export activity, indicating that companies are regaining their operational momentum despite lingering uncertainties surrounding regional geopolitical developments.
The S&P Global Purchasing Managers' Index (PMI) survey, released on Wednesday, showed the UAE's PMI climbing to 52.7 in July, up from 50.8 in June. The index remained comfortably above the 50.0 neutral mark—which separates expansion from contraction—registering its highest reading in four months.
The report highlighted that the index's improvement was supported by a robust recovery in both domestic and foreign demand. Additionally, enhanced trade flows and a relative restoration of confidence in the business environment helped offset the impact of the regional volatility experienced in recent months.
New Orders and Exports Drive the Rebound
David Owen, Senior Economist at S&P Global Market Intelligence, noted that the July data provided a sense of relative relief for UAE businesses. He highlighted that restored confidence and the smoother flow of trade translated directly into an accelerated growth momentum.
However, Owen cautioned that the uncertainty surrounding the Strait of Hormuz continues to cast a shadow over future outlooks, even though shipping conditions registered a marginal improvement in July compared to previous months.
New orders saw their fastest growth rate since February, while export orders expanded for the first time since March, marking their quickest pace in a full year. Surveyed companies attributed this upturn to easing regional tensions and a broader improvement in economic activity across Gulf markets.
Furthermore, employment returned to growth territory following a sharp contraction in June, signaling that firms have resumed hiring and expanding their workforce to keep up with the resurgent demand.ا