RIYADH: The UAE’s non-oil economy maintained steady growth in October, with the Purchasing Managers’ Index at 53.8, supported by strong new orders and robust business activity, a report showed.
The latest PMI data from S&P Global revealed that the index dipped slightly from 54.2 in September but remained above the mid-year trend, driven by solid demand growth.
Although the pace of expansion moderated, the reading continued to signal a healthy improvement in operating conditions, driven by a notable rise in new orders and overall business activity.
The stable PMI figures align with a broader trend across the Gulf Cooperation Council, where countries, including , are advancing economic diversification efforts to reduce reliance on crude revenues.
In October, recorded the highest PMI in the region at 60.2, while Kuwait and Qatar posted 52.8 and 50.6, respectively.
Commenting on the latest report, David Owen, senior economist at S&P Global Market Intelligence, said: “The UAE PMI continued to signal a steady growth rate in the non-oil private sector as we draw closer to the end of the year.”
He added: “The pace of new business growth has recovered well since its low in August, supporting increases in output and purchasing activity.”
The report noted that non-oil private sector activity rose considerably in October, with surveyed firms citing improved sales and new project initiations as key growth drivers.
Companies also benefited from a slower rise in input costs for the second consecutive month, helping keep output prices largely stable.
Optimism about future business conditions weakened to a three-year low, resulting in a softer pace of hiring.
“Employment remained a weak spot, with October data showing the slowest rise in job numbers in seven months. This partly reflected a relatively subdued level of business confidence,” said Owen.
He added: “In fact, the latest survey revealed that firms were the least optimistic in nearly three years. Although most companies still anticipate that economic conditions will remain favorable and that order inflows will sustain activity, concerns regarding market competition and the potential impact on profit margins persisted.”
In Dubai, business activity strengthened further, with the emirate’s PMI reaching a nine-month high of 54.5, up from 54.2 in September.
Non-oil companies saw stronger inflows of new orders, supporting a sharper increase in output. Employment rose for the seventh consecutive month, though the rate of job creation remained modest.
