The S&P Global UAE PMI rose to 52.7 in July 2026 from 50.8 in June, signaling the sharpest improvement in non-oil private sector business conditions since March and a clear rebound from June’s more than five-year low. The upturn was propelled by a five-month high in new orders, supported by easing regional tensions, stronger client spending, and continued momentum in domestic infrastructure projects. Export orders also returned to growth for the first time since March.
Business output increased, and employment moved back into expansion after June’s contraction, as firms stepped up hiring to meet rising demand. Purchasing activity remained strong, although inventories fell amid supply shortages and delays in imported deliveries. Input cost inflation stayed elevated, but firms kept selling price increases modest in the face of strong competitive pressures. Business confidence, however, deteriorated for a third consecutive month, reaching its lowest level since March, with only 7% of surveyed firms expecting output to rise over the coming year.
