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UAE non-oil growth hits fastest pace since December 2024, PMI shows

The UAE's non-oil private sector accelerated in August to its strongest growth rate since December 2024, helped by sharper gains in output and new business, a business survey showed on Thursday.

* The S&P Global UAE Purchasing Managers' Index (PMI) rose to 55.3 in August from 52.7 in July.

* The 50 mark separates growth from contraction.

* "The UAE's non-oil economy has shifted decisively into a higher gear ... suggesting that firms are adapting more effectively to the current market environment," said S&P Global economist David Owen.

* Output grew at its fastest pace since February, while new business expanded at the joint-steepest rate in more than two years, matching January 2026. New export orders rose for a second straight month and at the highest pace in 21 months.

* Backlogs of work increased at the fastest pace this year as incoming orders outpaced firms' capacity. Employment fell for the second time in three months, though the decline was marginal.

* Purchasing activity rose sharply and inventories increased at the strongest pace since November 2023, as firms switched more to local suppliers. Vendor performance improved for a third consecutive month.

* Input cost inflation eased to a six-month low as supply conditions improved, while prices charged rose modestly, albeit at the quickest pace in four months. Firms were more optimistic about the year ahead, with sentiment the strongest since April.