The UAE economic growth remained resilient in October, even as momentum slowed compared to the previous month. The country’s non-oil private sector continued to expand steadily, supported by new business orders and rising output levels. According to the latest S&P Global UAE Purchasing Managers’ Index (PMI), business activity stayed in positive territory, signaling ongoing confidence in the economy.
Although the PMI dropped slightly from 54.2 in September to 53.8 in October, the reading still pointed to solid growth. Analysts said this performance reflects strong domestic demand and a healthy flow of new projects. The UAE economic growth continues to stand out in the region, particularly in Dubai, where activity reached new highs.
Dubai’s PMI climbed to 54.5 in October, its highest since January. This rise came as companies reported higher sales and stronger new orders. Business leaders noted that expansion projects, improved tourism, and steady consumer demand have all contributed to Dubai’s growth. Employment increased for the seventh straight month, although hiring was more cautious compared to earlier in the year.
Meanwhile, firms across the country enjoyed a slower rise in input costs for the second consecutive month. This moderation helped businesses keep selling prices stable, which in turn supported customer confidence. Many companies also reported better supply conditions and smoother delivery times, both signs of an improving market environment.
However, the mood among business owners showed some caution. Optimism about future growth weakened to its lowest level in nearly three years. Analysts linked this to uncertainty about global economic trends and cautious spending by some firms. Still, overall business activity remained strong enough to sustain the UAE economic growth.
Experts observed that companies continued to invest in new projects while controlling costs. The focus on efficiency and innovation helped them maintain competitive pricing and solid output. As global trade dynamics shift, the UAE’s diversified economy continues to demonstrate adaptability and resilience.
With consistent demand and new projects emerging, the country remains on track for steady expansion. The positive performance of Dubai’s market reinforces confidence that the non-oil sector will keep driving the UAE economic growth in the coming months.
