UAE private sector growth eases as Iran war weighs: PMI

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UAE private sector growth eases as Iran war weighs, PMI shows

May 5, 2026

DUBAI,— UAE non-oil private activity expanded in April at its slowest pace since February 2021 as Iran war disrupted shipping routes and tourism, reducing sales and exports, a Tuesday survey showed.

The S&P Global UAE Purchasing Managers’ Index eased to 52.1 in April from 52.9 in March, remaining above the 50 mark that signals growth.

New orders rose at the weakest rate in over five years, with the sub-index at 52.5 versus 54.5 previously.

Outside the pandemic years, the fall in foreign sales was the sharpest since records began in August 2009.

Output still increased, though growth slowed, supported by existing projects and infrastructure activity. Firms lifted purchases only slightly as costs rose, demand softened and supply constraints persisted.

S&P Global Market Intelligence economist David Owen said conditions in the non-oil economy weakened again in April, marking more than five years of the softest performance, even as firms continue to expect expansion in the year ahead.

The International Monetary Fund said in April that energy disruptions from the Iran conflict could pressure Gulf oil and gas exporters’ economies.

Inflation pressures strengthened. Input costs rose at the fastest rate since July 2024, while selling prices increased at the quickest pace since June 2011.

Sentiment improved, with business expectations for the next 12 months rising to a three-month high.

In Dubai, the region’s trade and tourism center, the PMI dropped to 51.6 in April, a 55-month low, from 53.2 in March. Despite the decline, more firms reported optimism about demand recovery.

(With files from Reuters)