UAE non-oil business activity growth accelerates in October, PMI reports

UAE’s Non-Oil Private Sector Activity Gains Momentum in October Despite Slower Demand Growth

Abu Dhabi, Nov. 5 – Growth in the UAE’s non-oil private sector activity improved in October as output expanded more sharply but demand grew at the slowest rate in 20 months, a survey showed on Tuesday.

The seasonally adjusted S&P Global UAE Purchasing Managers’ Index rose to 54.1 in October from 53.8 in September, above the 50.0 mark indicating growth.

Following September’s three-year low, the pace of manufacturing growth grew to its fastest pace since April, with the sub-index rising to 61.3 in October, up from September’s 57.9 reading, attributed to stronger sales and healthy pipelines.

Despite improved overseas demand driving new sales, the pace of new order growth slowed further, dropping from 56.7 in September to 55.9 in October—the weakest since February 2023.

S&P Global Market Intelligence senior economist David Owen stated, “New business growth softened in October, adding to signs that the non-oil economy is losing strength after a period of strong growth in late 2023/early 2024.”

Market congestion is “eating up sales and job creation is at a 30-month low,” Owen said, adding that long job backlogs and ongoing contracts will still support future output.

In Dubai, the country’s trade and tourism hub, growth in non-oil activity slowed in October, in contrast to overall growth in the UAE, whose headline PMI fell to 53.2 from 54.1 in September.

The survey showed that business confidence in the UAE as a whole improved over the next 12 months in October from an 18-month low in September.