S&P: UAE Non-oil Private Sector Growth Eases in October Amid Input Cost Spike

05:00 AM EST, 11/04/2026 (MT Newswires) -- The United Arab Emirates' non-oil private sector growth slowed in October, as businesses hiked prices at a record rate to counter a sharp uptick in operating costs, data from S&P Global showed Wednesday. The S&P Global UAE PMI ticked down to 54.8 from 55.3 a month ago. With input costs climbing to their highest level since June 2022, output charges rose at their fastest pace since August 2009. "The unprecedented rise reflected efforts to pass cost burdens on to customers, with firms feeling the impact of higher fuel prices and increased charges for critical materials. The findings point to greater inflationary risks for the UAE economy in Q4, especially in the light of successive increases in petrol and diesel prices," S&P Global Market Intelligence Principal Economist David Owen said. Meanwhile, new order growth picked up in October through a mix of new client acquisitions and repeat business. This uptick was partially driven by foreign demand, with new export orders climbing at their fastest rate in two years. Output eased slightly from the seven-month high in September, though it continued to expand strongly at the start of the fourth quarter. Increased activity was seen in construction, retail, tourism and manufacturing, though growth was partly tempered by regional conflict, reduced discretionary spending and competitive headwinds. Looking ahead, business optimism strengthened in October, with year-ahead activity expectations reaching their highest level since January. Surveyed firms attributed this positive outlook to solid demand forecasts and anticipation of better regional conditions. Zooming in on Dubai, the PMI ticked up to 54.6 from 54.5 previously, as new business volumes rose at the joint-fastest rate since February.