According to a recent analysis by Standard Chartered, the UAE is bracing for a significant boost in business activity throughout the third quarter of 2026. As regional geopolitical tensions begin to subside, the focus is shifting toward a broader economic recovery across the GCC. Despite recent regional turbulence, the UAE’s non-oil sector demonstrated impressive durability, with its Purchasing Managers’ Index (PMI) remaining consistently above the 50-point expansion threshold. This stability has been largely fueled by robust domestic consumption and sustained investment, which are expected to continue serving as a primary engine for growth.

Looking ahead, Standard Chartered has identified three key pillars expected to accelerate this momentum: cooling oil prices, a strengthening labor market, and a strategic increase in investment as governments double down on diversifying trade routes. Furthermore, the stabilization of shipping routes, particularly through the Strait of Hormuz, has led to a noticeable improvement in supply-chain efficiency and a sharp rebound in crude oil exports. As international trade flows continue to normalize, the bank remains optimistic that these underlying fundamentals will solidify the UAE’s status as a vital global hub for trade and capital, setting the stage for a strong performance in the latter half of the year.