UAE and Saudi Arabia Show Growth in Non-Oil Private Sector in June
In June, the UAE and Saudi Arabia saw continued growth in their non-oil private sectors, despite regional tensions. Businesses in both countries increased activity, with Saudi Arabia showing faster progress due to strong demand and more hiring.
UAE Growth Slows Slightly
The UAE’s business activity (measured by the S&P Global PMI) rose a little to 53.5 in June, up from 53.3 in May. This shows steady growth, although new orders increased at their slowest pace in nearly four years.
The number of new orders dropped to 54.5 in June, down from 56.2 in May. Experts say rising tensions between Israel and Iran reduced demand from customers.
Even with fewer new orders, companies increased output to reduce work backlogs. However, there were still supply chain issues—deliveries were slower than usual, though costs rose at a slower pace.
David Owen from S&P Global said the conflict affected customer demand, but businesses managed to keep running smoothly by focusing on clearing old work.
Business confidence rose to the highest level since November, but companies still remained cautious about the future.
In Dubai, growth slowed more. Its PMI dropped to 51.8 in June from 52.9 in May, the lowest in almost four years. This was due to tough competition and weaker tourism demand.
Saudi Arabia Sees Stronger Growth
Saudi Arabia’s PMI increased to 57.2 in June, up from 55.8 in May. This means business activity grew faster, especially thanks to strong local demand and better marketing.
New orders grew at the fastest pace in four months. However, export growth remained slow.
Naif Al-Ghaith, an economist at Riyad Bank, said businesses saw better demand and started new projects, though output growth was not as fast as before.
Hiring jumped to the highest level since 2011, as companies needed more workers to handle increased business.
Costs continued to rise, and many businesses raised their prices, leading to the biggest jump in selling prices in over a year.
Kuwait Slows Slightly But Still Grows
Kuwait’s PMI fell to 53.1 in June from 53.9 in May, the lowest in three months. But it still shows healthy business growth.
New orders stayed strong, and companies hired more workers than ever before to meet demand. Purchasing activity rose at its fastest pace since last November.
Even though businesses tried to keep prices competitive, rising costs for materials and labor led to higher selling prices. Staff costs also went up the most since the survey began in 2018.
Published: 4th July 2025
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