UAE Non-Oil Private Sector Growth Accelerates in August as PMI Surges to 55.3
The United Arab Emirates' non-oil private sector experienced a sharp acceleration in August, driven by a robust influx of new business, expanded production, and easing input costs amid improving supply chain conditions.
According to the seasonally adjusted S&P Global Purchasing Managers’ Index (PMI), the UAE recorded its fastest pace of operational improvement since December 2024, continuing a two-month upward trajectory.
PMI Performance Summary
MetricAugustJulyMarket Context
S&P Global UAE PMI55.352.7Fastest overall operational improvement since Dec 2024
Surge in New Orders and Export Recovery
The strong August reading was primarily fueled by rising sales momentum and aggressive inventory restocking. Inflows of new business expanded at the second-fastest rate since March 2024. Surveyed firms noted a marked improvement in client activity, aided by a steady—though incomplete—fading of economic caution linked to broader Middle Eastern conflicts.
Crucially, international export demand grew for a second consecutive month, successfully rebounding from a protracted slump that spanned the entire second quarter of the year.
Production Peaks as Cost Pressures Ease
Overall output levels climbed at their sharpest rate in six months. Non-oil sector companies attributed the heightened activity and rising backlogs to several core drivers:
Sustained execution and progress on existing project pipelines.
Accelerated client transitions toward digital services.
A broad alleviation of logistical bottlenecks.
Concurrently, input cost pressures receded to a six-month low. The improvement in vendor delivery times and easing inflation allowed businesses greater financial and operational flexibility to aggressively build up input inventories for future project pipelines.