UAE Non-Oil Private Sector Growth Picks Up in September, PMI Shows

BY THE ARAB TODAY Oct 04, 2025

UAE Non-Oil Private Sector Growth Picks Up in September, PMI Shows
Image Credit: Kirill Neiezhmakov / Shutterstock.com

UAE Non-Oil Private Sector Growth Picks Up in September, PMI Shows

The UAE’s non-oil private sector saw its fastest growth in seven months during September, helped by a big rise in new business, according to a report released on Friday.

The S&P Global UAE Purchasing Managers’ Index (PMI), which measures business activity, rose to 54.2 in September from 53.3 in August, showing better business conditions.

New orders jumped sharply, with the sub-index rising to 57.2 in September from 53.1 in August — the fastest growth since February. This rebound came after a four-year low in August and was driven by strong local demand.

Employment also increased at its quickest pace since May. However, companies stayed careful about inventory, which dropped for the third month in a row.
Even though input costs went up, selling prices rose more slowly because of tough competition.

“More than 30% of the companies surveyed said they received more new orders in September,” said David Owen, Senior Economist at S&P Global Market Intelligence. He added that local demand is strong, but competition remains a major challenge. Backlogs also increased slightly.

The UAE’s non-oil economy (non-hydrocarbon GDP) is expected to grow by 4.5% in 2025 and 4.8% in 2026, supported by higher investment, government spending, and stronger business confidence linked to oil sector gains.

The survey also showed strong optimism for the future, with about 15% of firms expecting higher business activity over the next year.

During the first quarter, the UAE’s non-oil GDP rose 5.3% to $95.8 billion (AED 352 billion). Oil activities made up 22.7% of the total economy.
The trade sector contributed the most to non-oil GDP at 15.6%, followed by finance and insurance (14.6%) and manufacturing (13.4%).

In Dubai, the region’s main business and tourism hub, the PMI climbed to 54.2 in September from 53.6 in August, driven by strong new orders that boosted both output and employment.

Published: 4th October 2025

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