Photo Credit: WAM
Dubai, UAE — July 2026 — Standard Chartered’s Global Research division has released new economic analysis forecasting an acceleration in UAE business activity during the third quarter of 2026, pointing to sustained strength in the country’s non-oil economy.
According to the bank’s analysis, the UAE Purchasing Managers’ Index for June, published by S&P Global, came in above the 50-point threshold, confirming continued expansion in non-oil economic activity. Readings above 50 signal growth, while those below indicate contraction.
The report attributed the momentum in the non-oil sector to robust domestic consumption and investment. External demand, meanwhile, is expected to stage a gradual recovery as regional trade flows improve.
Rola Abu Manneh, CEO of Standard Chartered UAE, Middle East and Pakistan, said the latest UAE PMI reading underscores the resilience of the non-oil economy and its ability to sustain momentum despite regional challenges.
She noted that domestic consumption and investment continue to underpin economic activity, while a gradual recovery in external demand is expected to brighten prospects further in the third quarter.
Abu Manneh added that these indicators reflect the strength of the UAE’s economic fundamentals and reinforce the country’s position as a leading regional hub for trade, investment, and capital flows.
The outlook aligns with broader expectations that the UAE’s diversification efforts away from oil dependence continue to bear fruit, with non-oil sectors playing an increasingly central role in driving growth.
