UAE non-oil private sector growth slows near 4-year low: index

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UAE non-oil private sector growth slows near 4-year low: index

April 3, 2026

DUBAI,— Business activity in the United Arab Emirates’ non-oil private sector expanded at its weakest rate in almost four years in March as conflict in the Middle East hit demand and supply chains, a survey released on Friday showed.

Data from the seasonally adjusted S&P Global UAE Purchasing Managers Index showed a drop to 52.9 from 55.0 in February, the lowest reading since July 2025.

The figure remained above the 50 mark, which signals growth in activity.

Output increased at a slower pace, with the subindex falling to 54.9 from 61.8 in February 2026, marking the softest rise since June 2021.

Growth in new orders also eased, with the reading declining to 54.5 from 59.5, the weakest level since August last year.

David Owen, senior economist at S&P Global Market Intelligence, said tourism, retail, and logistics were among the hardest-hit sectors, while technology and construction saw a smaller but still clear effect.

He said the conflict affected overall performance, but many companies continued to report steady orders and rising output.

Supplier delivery times increased for the first time since September 2021 following the closure of the Strait of Hormuz.

Backlogs of work grew at the fastest pace recorded this year.

Expectations for business activity over the next year dropped to the lowest point in just over five years.

Dubai saw its headline PMI fall to 53.2 from 54.6, marking the slowest improvement in business conditions in nine months.

The survey said supply disruptions and transport issues increased pressure on companies and affected trade flows across the region during the reporting period.

Tensions in the region rose after joint airstrikes by the United States and Israel targeted Iran on February 28, 2026.

Iran launched retaliatory missile and drone attacks aimed at airports, ports, hotels, residential districts, and oil sites in Dubai and Abu Dhabi.

Iran continued strikes on a daily basis, while Gulf states intercepted large numbers of Iranian missiles and drones each day.

(With files from Reuters)