Dubai, UAE See Slower Non-Oil Growth as Business Conditions Weaken

UAE, 4 April, 2025 : The UAE’s non-oil sector saw a mild slowdown in March as demand growth softened, with the S&P Global UAE Purchasing Managers’ Index (PMI) dropping to 54, down from 55 in February. While still above the 50-mark, indicating expansion, it was the weakest upturn since September 2024.

Businesses ramped up input purchases at their sharpest rate since mid-2019, but rising competition limited export growth. Non-oil firms raised selling prices at the second-fastest rate in over seven years, despite easing input costs. Meanwhile, new order growth weakened for the third consecutive month, and firms struggled with rising backlogs.

David Owen, Senior Economist at S&P Global Market, noted that some firms faced delays in customer payments, a challenge the UAE’s mandatory e-invoicing system aims to address. Hiring slowed, with March recording the weakest employment growth in nearly three years.

Dubai’s non-oil sector also expanded at a slower pace, with the PMI falling to 53.2, a five-month low. Companies reduced hiring as new orders grew at a slower rate, while output prices rose faster than in February.