The UAE's non-oil private sector accelerated sharply in August 2026, posting its fastest expansion in more than eight months as output, new orders, and business confidence all strengthened.
The S&P Global UAE Purchasing Managers' Index climbed to 55.3 from 52.7 in July, driven by output growing at its fastest pace since February and new business expanding at the joint-steepest rate in over two years, matching January 2026.
New export orders rose for a second consecutive month and at the highest pace in 21 months. Backlogs increased at the fastest rate this year as incoming orders outpaced capacity, while firms shifted more heavily toward local suppliers, with inventories rising at their strongest pace since November 2023.
On the cost side, input price inflation eased to a six-month low as supply conditions improved. Employment edged lower for the second time in three months, though the decline was marginal. S&P Global economist David Owen described the UAE's non-oil economy as having shifted decisively into a higher gear, with firms adapting more effectively to current market conditions.
Gulf Economist Staff Writer