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The S&P Global UAE Purchasing Managers’ Index remained unchanged at 55.3 in September, matching the 20-month high recorded in August. This level well above the 50 threshold that separates expansion from contraction points to a solid improvement in business conditions across the non-oil private sector. The survey, which polled purchasing managers at about 1,000 non-energy private-sector companies, was conducted from September 10 to 24.
Output growth quickened to its strongest pace since February, according to S&P Global, just prior to intensified regional conflicts. Firms attributed the rise to improved demand from both local and foreign customers, which also drove a marked increase in new orders even as the pace moderated from August. Purchasing activity rose sharply in response to higher output requirements.
New export orders expanded for a third consecutive month at the fastest rate since November 2024, S&P Global figures show. Stronger demand enabled companies to raise selling prices at the steepest rate in over 15 years, the fastest since May 2011. Input costs also climbed at the quickest pace in three months due to higher raw material and freight charges.
Employment increased modestly after contracting in August as businesses added staff to manage elevated workloads, the S&P Global survey indicated. Despite this, backlogs of work accumulated again, reflecting capacity strains. Input inventories expanded at the fastest rate in nearly three years as firms built stocks ahead of future production needs.
David Owen, principal economist at S&P Global Market Intelligence, attributed the performance to the sector having moved past the mid-year slowdown linked to the Middle East conflict. “The UAE PMI held at 55.3 in September, another indication that the non-oil economy has moved past the mid-year slowdown linked to the Middle East conflict,” Owen said. “Businesses saw customer demand improve, not just in local markets but abroad as well, with new export business rising at the strongest rate in nearly two years.”
The Dubai PMI climbed to 54.5 in September from 54.1 the month before, according to S&P Global, signalling the strongest improvement in business conditions in seven months. Output in Dubai accelerated to a year-to-date high while new export business grew at the fastest rate in two years. Price pressures were also evident in the emirate, with output price inflation reaching its highest since January 2014.
The latest PMI readings align with official data from the Federal Competitiveness and Statistics Centre showing non-oil GDP grew 4.8 percent in the first quarter of 2026 to lift its contribution to overall GDP to 79.4 percent. This expansion was led by sectors such as financial and insurance activities along with construction. The sustained momentum reflected in the September survey underscores the UAE’s ongoing success in building a diversified economy less reliant on hydrocarbons.
