The UAE's non-oil private sector saw its fastest improvement in business conditions since December 2024.
UAE businesses are focusing on supply chain resilience by shifting to domestic suppliers, reducing delivery times and increasing inventory at the fastest rate in nearly three years.
The UAE's non-oil private sector recorded its fastest improvement in business conditions since December 2024 in August.
The latest S&P Global Purchasing Managers' Index surveys showed the UAE's headline reading rising to 55.3 in August from 52.7 in July, signaling an acceleration in growth for the second consecutive month.
This comes amid continued strength in the UAE economy, with the central bank estimating real gross domestic product growth of 5.6 percent for both 2025 and 2026, supported by robust hydrocarbon and non-hydrocarbon activity.
The International Monetary Fund also said in July the UAE economy had remained resilient amid the Middle East conflict and expects growth to rebound in 2027 as hydrocarbon production rises and non-oil activity recovers, supported by normalizing tourism and trade flows.
David Owen, principal economist at S&P Global Market Intelligence, said: "Demand growth accelerated, while delivery times improved and cost pressures softened, indicating a broad-based strengthening in domestic economic conditions."
He added: "UAE businesses are actively building supply chain resilience through localisation, with surveyed firms increasingly switching to domestic suppliers to help circumvent geopolitical disruptions.
"This strategy contributed to a further reduction in delivery times and strong purchasing growth."
Owen noted that firms increased inventories at the fastest pace in nearly three years, reflecting greater confidence in the demand outlook and efforts to guard against potential future supply disruptions.
Source: Arab News
