UAE Non-Oil Private Sector Growth Accelerates to 20-Month High in August as PMI Climbs to 55.3

The UAE non-oil private sector recorded its fastest improvement in business conditions since December 2024 in August, with the S&P Global UAE Purchasing Managers Index rising to 55.3 from 52.7 in July, according to data published September 3. The acceleration marked the second consecutive monthly gain and reflected a substantial rise in new business orders, which matched the joint-strongest reading in more than two years, alongside sharper output growth, inventory expansion, and easing supply constraints. UAE businesses are actively building supply chain resilience through localization, with surveyed firms increasingly switching to domestic suppliers to help circumvent geopolitical disruptions, according to David Owen, Principal Economist at S&P Global Market Intelligence. This strategy contributed to a further reduction in delivery times and strong purchasing growth, with firms increasing inventories at the fastest pace in nearly three years, reflecting greater confidence in the demand outlook and efforts to guard against potential future supply disruptions. Dubai's main stock index advanced 0.7 percent on September 4 in broad-based gains, led by a 2.2 percent rise in Emaar Properties, while Abu Dhabi's benchmark rose 0.5 percent.