UAE Non-Oil Sector Hits Strongest Growth in Seven Months

The UAE’s non-oil sector saw its strongest growth in seven months in September 2025. The latest Purchasing Managers’ Index (PMI) shows a rise to 54.2 from 53.3 in August. This increase indicates that business activity is picking up well.

Surge in New Orders

The non-oil sector’s growth is mainly driven by new orders. The new orders index jumped to 57.2, the highest since February. Over 30% of companies reported more orders. This rise shows strong domestic demand and growing confidence among businesses.

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Employment Growth

Businesses are also hiring more staff. Employment in the non-oil sector grew at the fastest pace since May. Companies are expanding their workforce to meet the higher demand. This trend reflects optimism in the market.

Cautious Inventory Management

Despite growth, companies are careful with stock levels. Inventories dropped for the third month in a row. Firms aim to manage costs effectively and avoid overstocking. This cautious approach shows smart planning alongside growth.

Price Pressures and Competition

Even though input costs are rising, companies face competitive pressures. Many firms have slowed down price increases to stay competitive. This means businesses are balancing higher costs without losing customers.

Dubai’s Non-Oil Sector Performance

Dubai follows the national trend closely. Its non-oil sector PMI rose to 54.2 from 53.6 in August. Like the UAE overall, Dubai saw more orders, higher output, and employment growth. However, input prices reached a five-month high. Firms responded by lowering selling prices to remain competitive.

Positive Economic Outlook

Looking ahead, the UAE’s non-oil GDP is expected to grow 4.5% in 2025 and 4.8% in 2026. Growth will come from higher investments, government spending, and stronger business confidence. About 15% of companies expect even more activity in the coming year.

Overall, the UAE nonoil sector is recovering strongly. Growth is supported by rising domestic demand, employment gains, and careful inventory management. Although businesses face price pressures and competition, the outlook remains positive. Continued expansion is expected in the next months, boosting the non- oil sector further.

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