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UAE Business Activity Expands in September as Selling Prices Surge to 15-Year High

The S&P Global UAE Purchasing Managers' Index held steady at 55.3 in September, matching August's 20-month high and confirming sustained non-oil expansion. Firm customer demand enabled companies to pass on higher raw material and freight costs, pushing selling prices up at the fastest rate in over 15 years. Dubai's non-oil PMI rose to 54.5, posting its strongest reading in seven months amid accelerating export demand.

Illustration: A bustling commercial cargo logistics hub in Dubai featuring stacked shipping containers, freight transport trucks, and modern warehouse
Illustration

UAE non-oil private-sector companies raised selling prices in September at the fastest pace in more than 15 years, according to the monthly S&P Global UAE Purchasing Managers' Index (PMI) published via Khaleej Times. Stronger domestic and international demand allowed firms to pass on elevated operating expenses, marking the sharpest rate of output charge increases since May 2011.

The seasonally adjusted headline index registered 55.3 in September, unchanged from August's 20-month high and remaining well above the 50.0 threshold separating expansion from contraction. Surveyed businesses reported that overall output activity expanded at its fastest clip since February. Order books continued to grow, aided by a third consecutive month of export expansion, which reached its strongest pace since November 2024.

Cost pressures were driven by increased supplier charges for raw materials along with higher transport and freight rates. David Owen, principal economist at S&P Global Market Intelligence, stated that the data indicates the non-oil economy has moved past the mid-year slowdown associated with regional geopolitical conflict.

In Dubai, the PMI climbed to 54.5 in September from 54.1 in August, reaching a seven-month high. Businesses in the emirate reported their fastest activity expansion of 2026 so far, supported by a two-year high in export demand. While firms expanded payrolls, backlogs of work continued to accumulate, and price increases reached their steepest pace since January 2014.

Sources

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