UAE Non-Oil Sector Growth Picks Up in Aug

The S&P Global UAE PMI came in at 53.3 in August 2025, picking up from a more than four-year low of 52.9 in the previous month. The upturn was mainly driven by faster output growth, which hit a six-month high and slightly exceeded the survey’s long-run average, supported by stronger sales, ongoing projects, and resilient domestic demand. However, new order volumes declined to its lowest level since June 2021, reflecting intensifying competitive pressures and ongoing supply chain disruptions. On the inflation front, input costs rose at a faster pace for the second month in a row, reaching its highest level since February. In response, non-oil firms modestly raised selling prices, with the rate of increase the quickest in five months and among the highest on record. Finally, business confidence improved in August, as non-oil companies expressed optimism that stable economic conditions at home and strong relationships with clients would support continued growth in the coming year.