The UAE's non-oil private sector is currently experiencing a robust expansion, with business activity reaching levels not seen since early 2024. According to the latest S&P Global Purchasing Managers’ Index (PMI), which held steady at 55.3, firms are benefiting from a significant influx of new work and healthy customer demand. Dubai, in particular, saw a notable uptick in performance, recording its strongest growth in seven months. This surge in activity is being supported by steady international interest, as export orders continue to climb for the third consecutive month.

However, this growth comes at a cost to the consumer. Faced with rising freight expenses and increased prices for raw materials like steel and concrete, businesses are passing these financial burdens onto their clients at the fastest rate in over 15 years. While companies have begun to cautiously expand their workforces to handle the increased volume, hiring remains modest compared to the scale of new orders. As experts note, businesses are prioritizing the rebuilding of profit margins to offset ongoing supply chain volatility and regional instability, suggesting that higher prices for goods and services may persist in the near term.