UAE: Non-Oil Private Sector Growth Slows to Lowest Level in 5 Years

Sudanhorizon – Reuters
A survey showed that the UAE’s non-oil private sector faltered in June 2026, recording its weakest growth rate in over five years as companies cut jobs.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) fell to 50.8 in June 2026 from 52.6 in May 2026, marking the weakest improvement in operating conditions since February 2021. The headline index remained just above the 50.0 mark, which indicates no change.
Output growth slowed to its lowest level since June 2021, while new business, although rising to a three-month high, remained well below the trend.
Export orders contracted for the third consecutive month, marking the longest losing streak since 2016.
A Reuters report noted that the most striking finding was that companies cut staff for the first time in over four years, with the pace of job cuts being the fastest since August 2020.
David Owen, chief economist at S&P Global Market Intelligence, told Reuters, “The sharp nature of the job cuts reflects the double whammy companies have experienced from weak customer demand and rising cost burdens.”
He added that with customers remaining cautious and workforces already reduced, any recovery in the non-oil sector is likely to be gradual.

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