The UAE’s non-oil private sector demonstrated remarkable stamina in May, with the S&P Global Purchasing Managers' Index (PMI) climbing to 52.6 from 52.1 the previous month. Despite significant regional geopolitical instability and the most severe maritime supply-chain disruptions seen since the pandemic, businesses across the nation maintained a steady growth trajectory. This expansion was largely underpinned by robust domestic demand, strategic public-sector investments, and a concerted effort toward economic diversification. While firms faced mounting pressure from rising fuel and transport costs, they largely opted to absorb these expenses internally to remain competitive, leading to a marginal decrease in selling prices.

Operational hurdles, particularly delays in the Strait of Hormuz, pushed supplier delivery times to their worst levels since 2020, yet companies proved highly adaptable by refining inventory management and streamlining workflows. This operational pivot allowed businesses to reduce backlogs of work and sustain hiring, signaling long-term confidence in the market. Although export demand faced headwinds from global trade uncertainties, economists remain optimistic, viewing these current logistical bottlenecks as temporary. With a strong pipeline of projects and a resilient economic framework, UAE businesses continue to anticipate a swift recovery, proving that the nation's diversified economy is well-equipped to navigate a volatile global landscape.