FX.co ★ UAE Non-Oil Private Sector Posts Slowest Growth Since 2021

In May 2025, the S&P Global United Arab Emirates PMI slightly declined to 53.3 from 54 in the preceding two months, reaching its lowest point since September 2021. Despite this slowdown, companies continued to experience robust client demand. However, some firms noted that competitive pressures and weakened trade — exacerbated by U.S. tariffs — were hindering growth. The rise in new orders slowed but remained strong, while output increased at its slowest pace in almost four years. Input purchasing growth also decreased to its weakest point in 28 months, leading to a significant reduction in inventories—the quickest decline on record. On the brighter side, employment levels reached their highest in a year, though the growth in backlogs decelerated to a 16-month low. Input cost inflation fell to its lowest point since December 2023, whereas selling prices increased for the fifth consecutive month. Finally, business optimism reduced to its weakest since January, with only about 10% of firms anticipating growth in the upcoming year.