Prime Highlights:
- The UAE’s non-oil private sector recorded its strongest performance in seven monthsin September, driven by faster growth in new business and steady output.
- Dubai mirrored the national trend, with rising new work, increased hiring, and greater business optimismheading into the final quarter of 2025.
Key Facts:
- The UAE PMI rose to 54.2in September, up from 53.3 in August, signaling expansion in the non-oil economy.
- Over 30% of firms reported higher new orders, and companies relied on existing stock, leading to a third consecutive monthly decline in inventories.
Key Background:
The UAE’s non-oil private sector saw its strongest performance in seven months in September, thanks to faster growth in new business and steady output. The S&P Global UAE Purchasing Managers’ Index (PMI) rose to 54.2 from 53.3 in August, showing that the non-oil economy is expanding. Any reading above 50 indicates expansion.
The latest data showed a sharp rebound in new business, climbing at the fastest pace since February. Strong local demand led growth, while foreign sales also rose slightly. Over 30% of firms reported more new orders, showing better client activity.
David Owen, Senior Economist at S&P Global Market Intelligence, noted, “The UAE PMI made up some lost ground in September following a trend of moderating growth earlier in the year. The latest reading suggests non-oil business performance has recovered well since its trough in July.”
Rising demand encouraged companies to expand output and hiring, with employment increasing at the fastest rate since May. Companies used their existing stock to meet orders, so inventories fell for the third month. Despite strong demand, competition kept prices from rising, as firms avoided passing higher costs to customers.
Dubai followed the national trend, with its PMI rising to 54.2 from 53.6 in August. Non-oil businesses in Dubai saw more new work, increased hiring, and greater confidence heading into the last quarter of the year. Although the input prices were at their highest level in five months, businesses reduced their selling prices, which is the first time they have done so since November 2024, which was a good indication of the market competition.
UAE companies are optimistic with respect to further expansion, as the government initiatives and high domestic demand have helped.
The report reveals that the non-oil economy has just started recovering in the UAE after a decline in the middle part of the year, with increased sales and employment increasing the confidence of the businesses as the last quarter of 2025 approaches.
Read Also: Wio Bank Deposits Cross Dh50 Billion as Digital Banking Grows in UAE
