UAE Non-Oil Growth Surges to Fastest Pace Since 2024, Hiring Remains Cautious

The UAE's non-oil private sector experienced its fastest growth since December 2024 in August, driven by increased customer demand, stronger exports, and fewer supply disruptions. The S&P Global UAE Purchasing Managers' Index (PMI) rose to 55.3 from 52.7 in July, signaling a second consecutive month of accelerating growth.

Despite the improvement, companies remained cautious about adding staff, with employment declining for the second time in three months. New business increased at its joint-fastest pace in more than two years, while output growth reached a six-month high.

The easing of economic caution linked to the Middle East conflict contributed to the improvement in customer activity and export orders. However, companies continued to face uncertainty surrounding the regional conflict's wider economic impact.

According to Owen, demand growth had accelerated, delivery times improved, and cost pressures softened, pointing to stronger domestic economic conditions. However, the decline in employment showed that companies were still hesitant to commit to longer-term capacity expansion.