The S&P Global UAE PMI rose to 52.6 in May 2026 from 52.1 in the previous month, signaling a modest improvement in non-oil private sector business conditions. Output growth accelerated to a three-month high, supported by stronger demand, project expansion, and government-backed initiatives. However, growth remained subdued overall as regional geopolitical tensions, supply-chain disruptions, and rising operating costs weighed on activity. New business growth remained near April’s 62-month low, while export sales continued to decline. Meanwhile, employment growth slowed to its weakest pace since October amid softer demand, higher costs, and increased automation. Supply-chain conditions deteriorated, with delivery times lengthening to the greatest extent since April 2020 due to disruptions in the Strait of Hormuz, while input costs rose at the second-fastest pace in nearly two years, driven by higher material and transport costs.

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