UAE Non-Oil Private Sector Growth Eases In April

(RTTNews) - The non-oil private sector economy in the UAE expanded at the weakest pace in more than five years amid inflationary pressures and supply chain constraints caused by the Middle East war, survey data from S&P Global showed on Tuesday.

The purchasing managers' index for the non-oil private sector economy dropped to 52.1 in April from 52.9 in March. Nonetheless, a score above 50 indicates expansion in the sector, and the latest reading marked the softest improvement in operating conditions since February 2021.

New orders grew at the weakest pace in more than five years due to lower client spending and a decline in tourism. The Middle East conflict also resulted in disruption in shipping activity, which also led to a marked fall in export orders.

Despite easing from March, the growth in new orders remained solid overall on the back of progress on existing projects and infrastructure developments.

On the price front, input price inflation accelerated to the highest since July 2024, linked to higher costs for oil and transport. Consequently, selling price inflation accelerated to the strongest in nearly five years.

Companies remained cautious about adding more workforce numbers in April in order to limit costs, and employment across the non-oil private sector rose to the least extent in 2026 to date.

Looking ahead, non-oil firms expressed positivity about output expectations for the coming 12 months in April, buoyed by strong business opportunities, sales pipelines, and technological innovation.