The UAE’s non-oil private sector recorded its strongest growth in seven months in September 2025, supported by a sharp rebound in demand and stronger output. The S&P Global UAE PMI rose to 54.2 from 53.3 in August, indicating a solid improvement in business conditions.
The recovery was driven by a surge in new orders, particularly from the domestic market, with the new orders sub-index rising to 57.2, its highest since February. Over 30% of firms reported increased demand, prompting higher production and employment levels. Export orders also improved moderately, though companies remained cautious about inventory accumulation due to competitive pressures.
In 2024, the UAE’s non-oil GDP grew by 5% to AED 1.34 trillion, contributing 75.5% of total output. The overall economy expanded around 4%, reflecting strong diversification efforts. The Central Bank expects 4.5% non-oil GDP growth in 2025, while the IMF forecasts total GDP growth of 4.8%, confirming the UAE’s position as a leading global growth economy.
Employment increased at the fastest pace since May, while improved supplier performance led to shorter delivery times. However, input costs rose due to purchase price inflation, and firms absorbed most of the pressure instead of raising prices, reflecting tight competition and margin constraints.
Dubai’s non-oil sector mirrored the national trend, with the Dubai PMI also at 54.2, supported by faster new orders and output growth. Firms faced rising input costs but reduced selling prices, highlighting continued competitive strain.
Overall, business confidence remained high, with most firms expecting stronger output in the year ahead, although pricing pressure and global uncertainty continue to pose challenges.
Source: UAE non-oil private sector posts strongest growth in 7 months | Khaleej Times
