UAE Non Oil Private Sector Growth Slows to Four Year Low
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Growth in the UAE’s non oil private sector slowed noticeably in March 2026, signaling mounting pressure on business activity outside the energy sector amid a more uncertain regional environment.
According to the latest Purchasing Managers Index data, the headline figure fell to 52.9, marking its lowest level in nearly four years. While the reading remains above the 50 threshold that separates growth from contraction, it indicates a clear loss of momentum.
The slowdown comes as businesses navigate rising geopolitical tensions across the region, which have begun to weigh on demand and disrupt supply chains. Companies are also showing increased caution in expansion and hiring decisions.
The data further points to softer growth in new orders and continued pressure on operating costs, prompting some firms to adopt more conservative spending strategies, even as overall activity remains in expansion territory.
Analysts suggest the figures may reflect a period of normalization following strong growth phases, but they also highlight the sensitivity of non oil sectors to regional instability, particularly in economies heavily reliant on trade and services.
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Tahani Elghazaly5252 Posts
