UAE Non-Oil Private Sector Growth Softens in April

2026-05-05 04:48 By Erika Ordonez 1 min. read

The S&P Global UAE PMI fell to 52.1 in April 2026 from 52.9 in March, marking the weakest improvement in operating conditions since February 2021, as non-oil private sector momentum continued to ease.

New orders slowed to a more than five-year low amid weaker client spending and softer tourism.

Export orders fell sharply, recording one of the steepest declines on record outside the pandemic period due to Middle East shipping disruptions and Strait of Hormuz constraints.

Despite softer demand, output still expanded solidly on ongoing project and infrastructure work.

However, cost pressures intensified, with input price inflation accelerating to its strongest level since mid-2024 on higher oil and transport costs.

Firms responded by sharply lifting selling prices, with output charges increasing at the fastest pace since 2011 as companies sought to protect margins amid rising costs and supply disruptions.

Employment growth also softened as hiring slowed, while salary inflation eased.



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UAE Non-Oil Private Sector Growth Softens in April
The S&P Global UAE PMI fell to 52.1 in April 2026 from 52.9 in March, marking the weakest improvement in operating conditions since February 2021, as non-oil private sector momentum continued to ease. New orders slowed to a more than five-year low amid weaker client spending and softer tourism. Export orders fell sharply, recording one of the steepest declines on record outside the pandemic period due to Middle East shipping disruptions and Strait of Hormuz constraints. Despite softer demand, output still expanded solidly on ongoing project and infrastructure work. However, cost pressures intensified, with input price inflation accelerating to its strongest level since mid-2024 on higher oil and transport costs. Firms responded by sharply lifting selling prices, with output charges increasing at the fastest pace since 2011 as companies sought to protect margins amid rising costs and supply disruptions. Employment growth also softened as hiring slowed, while salary inflation eased.
2026-05-05
UAE Non-Oil Private Sector Growth Eases
The S&P Global UAE PMI fell to 52.9 in March 2026 from 55.0 in February, marking the joint-lowest reading since mid-2021 but still indicating a modest improvement in non-oil private sector conditions. The decline reflected a sharp slowdown in output growth, as conflict in the Middle East disrupted supply chains and weighed on demand. New orders continued to rise, though at a seven-month low, with softer tourism and rising uncertainty cited by firms. Supply conditions deteriorated notably, with delivery times lengthening for the first time in over four years due to shipping disruptions, particularly around the Strait of Hormuz. At the same time, input costs surged, prompting firms to increase selling charges at the fastest pace in nearly 11-and-a-half years. Confidence also weakened to a five-year low, reflecting concerns over prolonged disruptions, even as long-term growth prospects and government spending plans continued to offer some support.
2026-04-03
UAE Non-Oil Private Sector PMI Rises Slightly
The S&P Global UAE PMI edged up to 55 in February 2026 from 54.9 in January, marking the highest reading in a year and signaling a broad-based improvement in the non-oil private sector conditions. Supply chains continued to strengthen, allowing firms to build input inventories more efficiently, while lower fuel prices helped contain cost pressures. New orders rose sharply, driven by tourism, e-commerce, and AI demand. Firms responded to higher workloads by boosting employment, marking the largest rise since last November, and continued to build input inventories, supported by faster deliveries and improved supply chains. On the price front, input prices rose modestly at their slowest pace since last October, while selling prices edged up for the eighth consecutive month amid competitive pressures. Looking ahead, firms remained optimistic, with strong domestic demand, better supply chains, and ongoing project growth supporting a solid start to 2026 despite lingering inflation.
2026-03-04