The United Arab Emirates’ non-oil private sector experienced a significant boost in August, with the S&P Global Purchasing Managers’ Index (PMI) climbing to 55.3, up from 52.7 in July. This marks the strongest performance for the sector since the end of 2023, signaling a period of robust expansion fueled by a surge in new orders and heightened output. Companies across the region reported a notable increase in customer engagement and a decline in economic hesitation, which collectively pushed production to a six-month high. Furthermore, export demand saw a healthy recovery, rebounding for the second month in a row.

To bolster their operations against potential global instability, many UAE businesses have shifted their focus toward domestic suppliers, effectively shortening delivery timelines and smoothing out supply chain bottlenecks. This proactive approach, coupled with a record-setting accumulation of inventories, reflects growing corporate confidence in sustained market demand. While prices for essential raw materials like steel and fuel remain a factor, overall cost pressures have eased to their lowest levels in months. With Dubai also seeing a marked rise in commercial activity, the broader national outlook remains optimistic, as business leaders look toward the coming year with the highest expectations seen since the spring.