5 October 2026
The UAE’s non-oil private sector held its strongest growth rate in 20 months in September 2026. The seasonally adjusted S&P Global UAE Purchasing Managers’ Index (PMI) stayed at 55.3, unchanged from August’s 20-month high, according to the survey released on 5 October 2026. Output grew at the fastest pace since February, new export orders rose for a third month in a row and at the sharpest rate since November 2024, and companies raised their selling prices at the fastest pace since May 2011. Employment returned to growth after a fall in August, though only slightly. The Dubai PMI rose to 54.5 from 54.1, its strongest reading in seven months.
What the September 2026 PMI shows
The PMI is compiled by S&P Global from a monthly survey of purchasing managers at around 1,000 non-energy private sector companies in the UAE. A reading above 50 means business conditions improved compared with the previous month, a reading below 50 means they deteriorated. The headline index is a weighted average of five components: new orders (30%), output (25%), employment (20%), suppliers’ delivery times (15%) and stocks of purchases (10%). The September data were collected between 10 and 24 September 2026, and the results were published at 08:15 UAE time on 5 October.
The September reading confirms that the recovery seen over the summer has held. In June the index fell to 50.8, just above the neutral line. It climbed to 52.7 in July and to 55.3 in August, the fastest improvement since December 2024, and stayed there in September.
| Month | UAE PMI | Dubai PMI |
|---|---|---|
| June 2026 | 50.8 | 50.7 |
| July 2026 | 52.7 | 51.7 |
| August 2026 | 55.3 | 54.1 |
| September 2026 | 55.3 | 54.5 |
S&P Global does not publish the values of the individual components in its press release, only their direction and pace. This is how it describes September:
| Indicator | September 2026 |
|---|---|
| Output | Rapid rise, the fastest since February 2026 |
| New orders | Marked rise, slower than in August |
| New export orders | Third monthly rise in a row, the sharpest since November 2024 |
| Prices charged | Steepest rise since May 2011 |
| Input prices | Fastest rise in three months |
| Staff costs | Little changed |
| Employment | Slight rise after a fall in August |
| Backlogs of work | Sharp rise, slower than in August |
| Stocks of purchases | Second monthly rise, the fastest since November 2023 |
| Suppliers’ delivery times | Shorter for the fourth month in a row |
| Business expectations | Lower than in August, just above the March low |
Output and demand: fastest activity growth since February
The main driver of the September reading was output. Activity rose at the fastest rate since February 2026, which S&P Global places just before the outbreak of war in the region. According to the companies surveyed, improving customer demand and good pipelines of new work lifted activity across a range of sectors.
New orders kept rising markedly, although the pace eased from August. Foreign demand helped: new business from abroad grew for the third consecutive month and at the sharpest rate since November 2024. David Owen, Principal Economist at S&P Global Market Intelligence, said: “The UAE PMI held at 55.3 in September, another indication that the non-oil economy has moved past the mid-year slowdown linked to the Middle East conflict. Businesses saw customer demand improve, not just in local markets but abroad as well, with new export business rising at the strongest rate in nearly two years.”
Prices: the steepest rise in selling prices since May 2011
The headline story of the September survey is pricing. With demand strengthening, companies had more pricing power and raised their output prices at the fastest rate since May 2011, one of the fastest increases since the survey began in August 2009. The rise in selling prices was broadly similar in size to the rise in purchase costs, which increased at the fastest pace in three months. Firms reported higher charges from suppliers for raw materials and higher freight costs.
Staff costs, by contrast, were little changed: higher salaries at some companies were largely offset by hiring restraint at others. Owen linked the price rises to margins: “Selling charges also rose markedly, suggesting that firms are taking the opportunity to boost their margins following a period of strong input cost pressures. With oil markets remaining volatile, and shipping routes still constrained, input costs and selling charges may remain elevated.”
Jobs, backlogs and purchasing
Employment rose in September after a fall in August, but only slightly despite strong growth in new orders. Companies hired partly to reduce backlogs of work. Because new orders kept growing faster than capacity, unfinished work still rose sharply, though more slowly than in August, when backlogs grew at a seven-month high.
Purchasing activity increased rapidly in line with bigger workloads. Firms reported buying construction materials such as concrete and steel, as well as electrical items. Stocks of inputs rose for the second month running and at the fastest pace since November 2023. Supply conditions kept improving: with better material availability and smoother logistics, suppliers’ delivery times shortened for the fourth consecutive month.
Business optimism is the weak point of the survey. Expectations for the year ahead dipped from August and were only just above March’s recent low. Owen noted that firms “still view the economic outlook as uncertain”, which he named as one of the reasons hiring remains relatively subdued.
Dubai PMI: 54.5, the strongest reading in seven months
The Dubai PMI rose to 54.5 in September from 54.1 in August, signalling a solid improvement in business conditions and the strongest in seven months. Output in the emirate grew sharply and at the fastest rate so far in 2026. New orders rose markedly, supported by the strongest growth in new business from abroad in two years.
Dubai firms also returned to hiring in September, but backlogs of work still increased markedly. Output price inflation in the emirate was the fastest since January 2014, as companies passed higher input costs on to their customers.
What the September PMI means for companies in the UAE
The survey does not change any rule, fee or procedure. It does show the conditions in which non-oil companies are now working, and four of them matter for planning.
- Supplier prices are rising. Survey respondents reported higher charges for raw materials and freight, and concrete, steel and electrical items were among the goods bought. Contracts and quotes with long validity periods are where this shows up first.
- Demand comes from both the local market and abroad. New export orders grew for a third month in a row, at the sharpest pace since November 2024. Selling abroad from the UAE needs a licence whose activities cover the goods or services involved; our guide to company formation in the UAE explains how activities and jurisdictions are chosen.
- Staff numbers lag behind orders. Employment rose only slightly while backlogs grew sharply. For companies that plan to add staff, work permits and residence visas are part of the timeline; see work visas and residency.
- Companies remain cautious about the year ahead. Business expectations dipped in September and are close to their low point of 2026, according to S&P Global.
For context on the previous month, see our article on the August 2026 UAE PMI, when the index first reached 55.3.
How Atlant Capital can help
Atlant Capital helps entrepreneurs set up and run companies in the UAE. We advise on the choice between mainland and free zone, select licence activities, including trading and import or export activities, and handle company setup from the trade licence to the establishment card. We also prepare corporate bank account applications with a compliance file ready for the bank, and arrange work permits and residence visas for founders and staff. Accounting, VAT and corporate tax filings are handled by licensed accounting firms from our partner network.
Conclusion
In September 2026 the UAE PMI stayed at 55.3, the joint-highest reading in 20 months. Output grew at the fastest rate since February, export orders rose for a third month at the sharpest pace since November 2024, and selling prices increased at the steepest rate since May 2011. Hiring resumed, but only slightly, and business expectations remained subdued. In Dubai the PMI rose to 54.5, a seven-month high, with output growth the fastest of 2026 and output prices rising at the fastest pace since January 2014.
Source: Khaleej Times, S&P Global UAE PMI, September 2026.
FAQ
What was the UAE PMI in September 2026?
The S&P Global UAE PMI was 55.3 in September 2026, unchanged from August, which is the highest level in 20 months. A reading above 50 means business conditions in the non-oil private sector improved compared with the previous month. The survey covers around 1,000 non-energy private companies, and the September data were collected on 10-24 September.
How fast are prices rising in the UAE non-oil sector?
In September 2026 UAE non-oil companies raised their selling prices at the fastest rate since May 2011, according to S&P Global. Purchase costs rose at the fastest pace in three months, driven by higher prices for raw materials and freight, while staff costs were little changed.
What was the Dubai PMI in September 2026?
The Dubai PMI rose to 54.5 in September 2026 from 54.1 in August, the strongest reading in seven months. Output in Dubai grew at the fastest rate of 2026, export orders grew at the strongest pace in two years, and output prices rose at the fastest rate since January 2014.
Are UAE companies hiring again?
Yes, but slowly. Employment in the UAE non-oil private sector rose slightly in September 2026 after a fall in August, while backlogs of work kept growing sharply. S&P Global links the subdued hiring to cautious expectations for the year ahead, which are only just above their March 2026 low.
