The UAE’s non-oil private sector expanded at its fastest pace in four months, reflecting sustained economic momentum driven by robust business activity, strong domestic demand, and continued growth in new orders. The latest performance underscores the country’s successful economic diversification strategy and resilience beyond the energy sector.
According to the latest business survey, companies across industries reported increased customer demand, leading to higher output and improved confidence. Businesses also continued hiring to meet rising workloads, while investment in technology and infrastructure supported productivity gains.
The expansion was fueled by strong performances in sectors such as trade, tourism, construction, logistics, and financial services. Government initiatives aimed at attracting foreign investment, encouraging entrepreneurship, and enhancing the ease of doing business have further strengthened the UAE’s position as a regional economic hub.
Despite global economic uncertainty and geopolitical challenges, businesses remained optimistic about future growth. Firms cited expanding market opportunities, increased tourism, and major infrastructure projects as key drivers supporting continued economic activity. However, some companies noted ongoing cost pressures linked to higher input prices and supply chain adjustments.
The latest figures reinforce expectations that the UAE economy will continue to outperform many regional and global peers, supported by a diversified economic base and ambitious long-term development plans. The country’s focus on innovation, digital transformation, and sustainable growth continues to attract international investors and multinational companies.
Economists say the sustained expansion in the non-oil sector highlights the effectiveness of the UAE’s economic reforms and strategic investments. With business confidence remaining strong and demand continuing to improve, the outlook for the remainder of the year remains positive, reinforcing the UAE’s reputation as one of the Middle East’s most dynamic and resilient economies.
