UAE Private Sector Expands Despite Trade Disruptions and Regional Tensions
The UAE’s non-oil private sector continued to grow in May 2026, according to the latest Purchasing Managers’ Index (PMI) data released on June 3.
The report showed that business activity remained in expansion territory despite ongoing regional tensions and shipping disruptions around the Strait of Hormuz. Companies reported delays in deliveries and concerns over export demand, but strong domestic demand helped support overall growth.
The latest figures highlight the resilience of the UAE economy, which has increasingly diversified beyond oil through sectors such as tourism, finance, technology, and logistics.
While businesses remain cautious about geopolitical developments, the May PMI data suggests that the UAE’s private sector continues to adapt and maintain steady growth despite external challenges.
Analysts say the results reinforce the UAE’s position as one of the region’s strongest non-oil economies.
