UAE non-oil economy strengthened in September on new order boost

In September, the non-oil private sector in the UAE experienced robust expansion due to the addition of new clients, competitive pricing, and strong underlying economic conditions, resulting in increased demand. The seasonally adjusted S&P Global purchasing managers’ index reading rose to 56.7, up from 55 in August, indicating a significant expansion in the non-oil private sector, well above the neutral 50 mark that separates growth from contraction. This marks the first increase in the index in three months, driven by a much sharper rise in new work intakes than the previous month. The upturn in new work was the fastest since June 2019, supported by new client wins both domestically and in export markets. The new orders sub-index climbed more than seven points to its highest level since June 2019, indicating a considerable upturn in new order inflows over September. About 38 per cent of survey participants noted a monthly rise, compared with 8 per cent who saw a fall. Businesses attributed the growth in new orders to having more clients, which they linked to stronger economic conditions and lower prices amid competitive pressures.