UAE Non Oil Economy Maintains Steady Growth in October; Business Confidence Eases – PMI Report

A strong non-oil sector continues to lead the UAE economy momentum. The latest survey of Purchasing Managers’ Index (PMI) shows another month of solid performance of the UAE non oil economy in October. However, the pace of the expansion eased slightly from September. Still, the overall landscape is resilient, as it reflects stable demand, healthy output, and ongoing investment activity across key industries.

The non-oil sector plays an important role in driving sustainable growth as a part of the nation’s continued economic diversification strategy. Moreover, the most recent S&P Global PMI data highlighted that the businesses remain active and competitive, even as the hiring process is cooling due to the global uncertainties and rising market competition. 

 Key Highlights: UAE October PMI Report

UAE Non Oil Economy: Solid Growth With Softer Hiring

The overall UAE PMI slipped to 53.8 in October from 54.2 in  September.  Still,  it is comfortably above the 50-point expansion threshold and higher than average readings in the months.  Below are the key drivers of this upward trend:

• Steady new business inflows
• Robust customer demand
• Ongoing project activity
• Faster purchasing expansion — highest since June

On top of that, companies reported higher rises in ‌new orders. However, it was slightly lower than the previous month. Moreover, the foreign demand also surged, which highlights the steady global interest in the UAE market. 

As we mentioned above, the hiring sentiments have been softened in the country because the businesses are adopting a cautious approach. Therefore, the job creation recorded the lowest since March 2025. Hence, it highlights the pressures of rising competition and maintaining profit margins. 

Expert View on slower UAE jobs

David Owen, Senior Economist at S&P Global Market Intelligence, noted, “While the pace of the slower business growth has recovered, employment remained a weak spot because October showed the slowest job rises in 7 months. Confidence slipped to its lowest in nearly three months due to concern about competition and margin”

Input Costs and Prices Remain Stable

Input cost inflation has also eased for the second straight month, which is the softest since June. However, a few companies reported higher expenses. As a result, the output remains largely stable that supports affordability and business competitiveness. 

On the other side, the backlog has also increased due to capacity constraints and administrative delays. Thus, it indicates the sustained business activity and workload despite conservative hiring trends.

Dubai PMI Hits 9-Month High.

The emirate continued to outperform due to Dubai PMI rising to  54.5 in October from 54.2 a month earlier. However, it is the highest since January of this year. Hence, the emirate has achieved the following milestones: 

•  Faster growth in new orders
• Higher business output
• Seventh consecutive month of job growth (albeit modest)
• Input costs rising at the fastest pace in six months
• Firms raising selling prices after the September decline

This rebound in pricing highlights confidence in market conditions and stronger cost pass-through ability. 

 What This Means for Businesses & Investors

The latest PMI data signals the following elements:

• Stable non-oil expansion
•  Improving output and order pipelines
•  Strong supply-chain activity 
• Cautious hiring outlook 
• Competitive pressure may squeeze margins

Overall, the UAE non oil economy is on a firm footing as it heads into the final quarter. However, it is supported by the strategic diversification, infrastructure projects, and global investor confidence — even as companies monitor costs and competition closely.

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