The S&P Global UAE PMI rose to 55.3 in August 2026 from 52.7 in July, marking the fastest improvement in non-oil private sector business conditions since December 2024. Growth was driven by a sharp rise in new business, which grew at the joint-strongest pace in over two years, while output growth accelerated to a six-month high. Export demand also expanded for a second month after declining throughout Q2. Purchasing activity increased sharply, allowing firms to build input inventories at the fastest pace in nearly three years, while improved supplier performance and greater reliance on local vendors eased supply constraints. Input cost inflation slowed to its lowest since February despite higher energy and construction material prices, while selling price inflation remained modest amid competition. Employment fell for the second time in three months as firms remained cautious about hiring amid regional uncertainty, although business confidence improved to its highest since April.