UAE Non-Oil Private Sector Sees Fastest Price Increases in 15 Years Amid Strong Demand

The UAE's non-oil private sector sustained strong momentum in September, driven by vigorous demand that enabled businesses to pass on increasing costs to customers. This led to a significant surge in selling prices, marking the fastest rate of increase in more than 15 years.

Key Economic Indicators

The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) remained stable at 55.3 in September, matching August's 20-month high. This indicates sustained growth in the non-oil economy, recovering from a mid-year slowdown attributed to regional conflicts. Customer demand saw improvement both domestically and internationally, with new export business experiencing its strongest growth in nearly two years.

Strong demand also prompted companies to increase purchasing and hiring, albeit at a modest pace, resulting in an accumulation of work backlogs. Despite positive data, business optimism remained subdued in September, only slightly above March’s recent low.

Dubai's Performance

Dubai's non-oil private sector demonstrated its strongest expansion in seven months during September. The Dubai PMI rose to 54.5 from 54.1 in August, fueled by a sharp increase in output and robust new orders. New export business in Dubai also recorded its fastest growth in two years. Employment returned to growth, although backlogs significantly increased. Output price inflation in Dubai accelerated to its highest level since January 2014, as firms transferred higher input costs to consumers.