Business activity in the UAE’s non-oil private sector slowed in March, with the S&P Global Purchasing Managers’ Index (PMI) falling to 54.0 from 55.0 in February—the lowest level since September.
The slowdown was driven by a third consecutive monthly drop in new orders, and employment growth reached its weakest point in nearly three years, as firms struggled to find qualified labor.
Interestingly, input purchasing surged at the fastest pace since July 2019, as companies rushed to address existing backlogs despite the moderation in overall demand.
In Dubai, the PMI dropped to 53.2, a five-month low, reflecting slower growth in new business and an unusual dip in hiring.
Despite the softer momentum, businesses remain optimistic, supported by a solid project pipeline and ongoing infrastructure development. Analysts suggest the non-oil economy is expected to remain resilient in the medium term.