UAE Non-Oil Business Growth Slows to 44-Month Low in May, PMI Shows
- SAUDI ARABIA BREAKING NEWS
- Jun 4
- 2 min read

Abu Dhabi, June 4, 2025 (Saudi Arabia Breaking News) – Growth in the United Arab Emirates’ non-oil private sector slowed to its weakest pace in nearly four years in May, a survey showed on Wednesday, as demand remained strong but eased from recent highs.
The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) fell to 53.3 in May from 54.0 in April, marking its lowest reading since September 2021, though remaining above the 50.0 threshold that signals growth.
The rate of output expansion was the slowest in 44 months, reflecting softening momentum in the non-oil sector, even as demand conditions remained supportive. The output subindex dropped to 57.3 in May from 59.4 in April, also the lowest since September 2021.
The pace of new order growth remained robust but eased to 56.2 in May from 56.9 in April, marking a seven-month low.
“Although businesses continued to welcome strong demand from their clients, there were some reports that competitive pressures and weaker trade amid U.S. tariffs had weighed on growth,” said David Owen, senior economist at S&P Global Market Intelligence.
The survey also highlighted a record decline in inventories as firms streamlined holdings amid slowing growth. The accumulation of backlogs eased to a 16-month low, signaling a softer pace of demand.
Business expectations for future output were subdued, with optimism falling to its lowest level since January.
Meanwhile, Dubai’s non-oil private sector growth remained steady, with the headline PMI unchanged at 52.9 in May, the same as April. Demand momentum strengthened, however, with the pace of new order growth quickening to a four-month high.