UAE Non-Oil Sector Sees Fastest Growth Since December 2024

The non-oil sector in the UAE reported its fastest growth since December 2024, defying the ongoing impact of the Iran conflict. The S&P Global UAE Purchasing Managers' Index (PMI) rose to 55.3 in August, a significant increase from 52.7 in July.

The improvement is attributed to a substantial rise in new business orders, which reached its joint-strongest level in over two years. This growth was also driven by sharper output and inventory expansion, as well as easing supply constraints and lower price pressures.

David Owen, principal economist at S&P Global Market Intelligence, stated that demand growth accelerated while delivery times improved and cost pressures softened, indicating a broad-based strengthening in domestic economic conditions.