FX.co ★ UAE Non-Oil Private Sector Growth Improves Slightly

The S&P Global UAE PMI rose to 52.6 in May 2026 from 52.1 in April, indicating a modest improvement in non-oil private sector business conditions. Output growth accelerated to a three-month high, supported by stronger demand, project expansion, and government-backed initiatives. However, overall momentum remained subdued, as regional geopolitical tensions, supply-chain disruptions, and rising operating costs continued to weigh on activity.

New business growth stayed close to April’s 62-month low, while export sales continued to decline. Employment growth also lost steam, easing to its weakest pace since October amid softer demand, higher costs, and increased automation. Supply-chain conditions deteriorated, with supplier delivery times lengthening to their greatest extent since April 2020, largely due to disruptions in the Strait of Hormuz. At the same time, input costs rose at the second-fastest rate in nearly two years, driven by higher material and transport expenses.