The United Arab Emirates’ non-oil private sector rebounded to its strongest operational improvement in four months in July, fueled by a sharp acceleration in new business inflows. The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) climbed to 52.7 from June’s low of 50.8, signaling a solid post-second-quarter recovery. Demand was supported by expanding domestic client activity, renewed corporate confidence, and a rebound in foreign sales, marking the fastest expansion in export orders in over a year.
To keep pace with output demand and clear expanding order backlogs, non-oil firms returned to net hiring after scaling back headcounts in June. Despite this operational momentum, businesses faced persistent supply chain pressures and elevated input costs driven by rising freight rates, raw material expenses, and fuel prices. Regional logistical bottlenecks contributed to lower inventory levels even as purchasing activity expanded, leaving corporate profit margins constrained as intense market competition limited the ability of companies to pass higher costs onto end consumers.
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