The United Arab Emirates’ non-oil private sector continued to demonstrate strong momentum in October 2025, driven by rising demand, increased business activity, and improving market confidence across key industries. The latest Purchasing Managers’ Index (PMI) data showed sustained expansion, reinforcing the resilience of the UAE economy amid global uncertainties and fluctuating commodity markets.
According to survey indicators, robust new orders, strong output levels, and stable supply-chain conditions helped maintain sector growth. Businesses reported heightened client confidence, supported by government-led initiatives to diversify the economy, stimulate investment, and expand opportunities in trade, tourism, technology, and manufacturing. October’s performance further underscored the success of the UAE’s long-term economic transformation strategy, which continues to reduce reliance on hydrocarbons.
Companies across services, construction, retail, and manufacturing noted rising sales volumes, with many attributing the uptick to competitive pricing, improving consumer sentiment, and regional economic recovery. Employment levels also rose as firms expanded their workforce to meet growing demand, marking one of the strongest hiring periods recorded this year.
Input cost pressures remained relatively moderate, giving businesses the ability to maintain stable pricing strategies and reinforce their competitive positions in both domestic and export markets. Despite lingering global supply-chain challenges, firms reported shorter delivery times and improved material availability, reflecting the UAE’s strengthened logistics infrastructure and persistent efforts to enhance trade facilitation.
Analysts say the continuous expansion of the non-oil private sector highlights the UAE’s solid economic fundamentals and its ability to navigate shifting global conditions. With Expo City Dubai accelerating innovation initiatives, Abu Dhabi boosting industrial investment, and the Northern Emirates strengthening tourism and manufacturing, the overall growth outlook remains positive.
As the fourth quarter progresses, businesses remain optimistic about future output, supported by strong government reforms and expanding foreign investment inflows. The UAE’s non-oil economy is expected to maintain its upward trajectory into 2026, reinforcing the country’s position as one of the region’s most dynamic and diversified growth hubs.
