The private sector continues to expand in Dubai despite “regional tensions”

A survey of the Purchasing Managers’ Index, affiliated with Standard & Poor’s Global, showed that Dubai’s main index rose to 52 points last May, from 51.6 points the previous April, to remain above the level of 50 points that separates growth from contraction, indicating the continued expansion of the non-oil private sector, despite the challenges posed by maritime trade disturbances and geopolitical tensions in the region.

The continuation of the index in the positive region reflects the strength of the emirate’s economy and its ability to maintain business activity, benefiting from its position as a regional center for trade, tourism and investment.

At the UAE level, the Purchasing Managers’ Index (PMI) rose from 52.1 points in April to 52.6 points in May, confirming the strength of the non-oil private sector in the country, despite the effects resulting from the disruption of maritime shipping traffic in the region, and the accompanying pressures on supply chains and foreign trade movement.

During May 2026, production in the UAE recorded the fastest pace of growth in three months, while the new orders index rose to 52.6 points, reflecting the continued flow of new business.

While companies’ confidence remained positive during May, they were able to process a larger portion of the accumulated orders, with unfinished business recording the slowest rate in about three years. The companies included in the index survey expressed their optimism about next year’s expectations, as the UAE’s non-oil GDP grew by 6.8% in 2025 compared to 2024, exceeding the GDP growth rate of 6.2%.

“Long-term expectations remained strong in May, indicating that companies still view the current challenges as temporary and expect growth to rebound quickly,” said David Owen, chief economist at Standard & Poor’s Global Market Intelligence.