UAE Non-Oil Sector Maintains Strong Growth Momentum in October

In October 2025, the non-oil private sector of the United Arab Emirates continued to grow, which confirms the development of economic diversification in the country. The purchasing managers index (PMI) by S&P Global UAE recorded a figure of 53.8 as compared to September when it was 54.2, which was still low when compared to the neutral point of 50. This is a sign of further growth in business operations and orders. The growth in sales, new projects and increase in purchasing activity continued the momentum although there was a decline in business confidence and slower hiring. The data highlights the strength of the non-oil economy of UAE as it is backed by a strong domestic demand and moderate inflationary rates.

Business Activity and Demand Strengthen

The non-oil sphere of UAE business activity increased significantly, and there was a boost in new orders within the second month of the year. The increase in input purchasing used by companies was the biggest since June and they have stabilized their inventories following previous losses. The increase in input costs was modest and was the lowest in four months, which contributed to the constant output prices. The percentage of surveyed firms that reported higher costs was only 4% which means controlled inflation. The S&P Global Senior Economist David Owen argues that the new business performance since the lows in August will indicate a robust demand picture and the continued growth in output.

Employment and Confidence Show Weak Spots

Business conditions are improving, but hiring was low. The growth in employment has been modest; the lowest since March and the general business confidence has hit a 34 month low. Most companies voiced concerns on the future demand and profitability. In the meantime, Dubai PMI increased to a high of nine months of 54.5, which indicated strong gains in operations but low expectations of 2026. The ambiguous indicators indicate that the non-oil economy of the UAE is still on its growth path, whereas businesses are moving slowly in the face of global unpredictability and expense issues.