RIYADH: The UAE’s non-oil private sector strengthened in July, with the Purchasing Managers’ Index rising to 52.7 from 50.8 in June, while Qatar’s PMI improved to 48.5 from 47.6 as it remained below the neutral 50-point threshold.
The latest S&P Global Purchasing Managers’ Index survey showed the UAE’s headline reading climbing to its highest level in four months, supported by stronger demand, a five-month high in new business growth, and a return to employment growth.
Despite the improvement, businesses continued to face persistent supply chain disruptions and elevated cost pressures, while business confidence softened amid ongoing competitive pressures.
The survey adds to broader signs of resilience in the UAE economy despite regional geopolitical tensions, with the International Monetary Fund saying in July that the country has demonstrated “significant resilience” to the conflict in the Middle East as it forecast real gross domestic product growth of 3.3 percent in 2026 and 4.4 percent in 2027.
David Owen, principal economist at S&P Global Market Intelligence, said: “July data signalled some relief for UAE companies after the PMI dropped perilously close to the 50 neutral threshold in June, as a restoration of business confidence and a period of smoother trade flows allowed for a pick-up in growth.”
