Business activity in the UAE is expected to gather pace during the third quarter of 2026, with strong domestic demand and improving regional trade supporting continued economic growth, according to Standard Chartered.
In its latest economic analysis, the bank said the UAE’s June S&P Global Purchasing Managers’ Index (PMI) remained above the 50-point mark, signalling continued expansion in the country’s non-oil private sector.
The report said domestic consumption and investment continue to drive growth across the non-oil economy, while external trade is expected to recover gradually as regional trade flows return to normal.
Rola Abu Manneh, Chief Executive Officer for the UAE, Middle East and Pakistan at Standard Chartered, said the latest PMI reading highlights the resilience of the UAE’s non-oil economy despite regional uncertainty.
She added that steady domestic demand, combined with a gradual improvement in external markets, provides a more positive outlook for business activity in the third quarter.
According to the bank, the latest economic indicators also underline the UAE’s position as a regional hub for trade, investment and capital flows, with improving business conditions expected to support growth through the remainder of 2026.
