Dubai PMI Climbs to 52 in May as UAE Non‑Oil Sector Maintains Expansion
Dubai PMI rose to 52 in May, signaling continued non-oil private-sector expansion, while the UAE PMI reached 52.6 amid stronger production and new orders.
Strong expansion in Dubai manufacturing and services continues
Dubai’s headline PMI rose to 52 in May from 51.6 in April, keeping the emirate’s non-oil private sector above the 50 expansion threshold.
The reading, compiled by S&P Global, indicates sustained business activity despite ongoing regional shipping disruptions and geopolitical tensions.
Analysts say the result reflects Dubai’s resilience as a trade, tourism and investment hub that continues to attract commercial activity.
UAE-wide PMI shows broad-based private sector resilience
At the federal level, the UAE PMI increased to 52.6 in May from 52.1 in April, underscoring nationwide strength beyond oil-related industries.
The higher PMI was driven by gains in production and new business, suggesting firms are successfully converting demand into output.
Policy makers and investors view the reading as evidence that the broader economy is absorbing external shocks while maintaining growth momentum.
Production posts fastest three-month acceleration
S&P Global’s survey data showed production in the UAE recorded its quickest three-month growth rate during May.
Companies reported higher operating volumes as they worked through incoming orders and reallocated resources to meet demand.
The production upswing helped firms reduce part of the backlogs built up from earlier supply-chain delays.
New orders rise while backlogs slow to three-year low
New business in the UAE rose to a PMI reading of 52.6, pointing to continued inflows of orders for both goods and services.
Firms also reported that unfinished work grew at the slowest pace in roughly three years, reflecting improved order fulfilment and inventory management.
Survey respondents attributed the improvement to stronger domestic and regional demand as well as operational adjustments to disrupted shipping routes.
Supply-chain pressures and regional risks persist
Despite the positive PMI readings, companies warned that maritime trade disruptions and geopolitical uncertainty remain headwinds.
Firms noted intermittent delays and higher logistics costs caused by shipping disturbances in the region, which have put pressure on delivery times and margins.
Business leaders characterized these challenges as temporary but said they require continued vigilance and contingency planning.
Business confidence underpinned by long-term optimism
Corporate sentiment remained resilient in May, with surveyed firms expressing optimism about prospects for the year ahead.
S&P Global Market Intelligence’s chief economist David Owen said companies view current difficulties as transitory and expect a rapid rebound in growth.
That optimism is supported by macro indicators: the UAE’s non-oil GDP expanded by 6.8% in 2025, outpacing the wider GDP growth of 6.2%, signaling structural strength in diversified sectors.
Implications for policy and investors
The PMI readings give policy makers additional room to focus on sustaining non-oil expansion through targeted measures for trade facilitation and logistics.
Investors are likely to interpret the uptick as a signal to remain engaged with Dubai and UAE private-sector opportunities, particularly in trade-linked services and tourism.
However, continued monitoring of shipping lines and geopolitical developments will be critical to managing near-term downside risks.
The May PMI data for Dubai and the UAE point to a private sector that remains resilient and adaptable, balancing renewed demand with operational adjustments amid regional disruptions.
