RIYADH: The UAE’s non-oil private sector continued to expand in June, despite recording its weakest growth in more than five years, as the S&P Global Purchasing Managers’ Index fell to 50.8.
The slowdown, from 52.6 in May. came as geopolitical disruptions, cautious client spending and intense competition weighed on business activity, although resilient domestic demand and continued public investment helped keep the non-oil economy in expansion territory.
Employment also declined at its fastest pace since August 2020, according to a statement.
June’s softer PMI reading comes against a backdrop of continued economic diversification in the UAE. According to the Ministry of Economy and Tourism, the country’s non-oil economy expanded 5.3 percent year on year in the first quarter of 2025, with non-hydrocarbon activities accounting for 77.3 percent of real gross domestic product, underscoring the sector’s growing role in driving overall economic growth.
The UAE’s long-term strategy remains focused on strengthening non-oil industries through the “We the UAE 2031” agenda, which aims to raise the country’s GDP to 3 trillion dirhams ($816 billion) by the next decade through expanding sectors including manufacturing, tourism, technology and financial services.
