UAE business activity expected to strengthen in third quarter, says Standard Chartered

Dubai: Standard Chartered has forecast stronger momentum in UAE business activity during the third quarter of 2026, supported by resilient non-oil sector growth, domestic demand and improving regional trade conditions. According to the bank’s latest economic analysis, the UAE’s June S&P Global Purchasing Managers’ Index (PMI) remained above the 50-point threshold, indicating continued expansion in non-oil private sector activity. The analysis highlighted that growth in the non-oil economy continues to be supported by domestic consumption and investment, while the external sector is expected to recover gradually as regional trade flows normalise. Resilient non-oil economy Rola Abu Manneh, Chief Executive Officer, UAE, Middle East and Pakistan at Standard Chartered, said: “The UAE’s latest PMI reading reinforces the resilience of its non-oil economy and private sector activity through a period of regional uncertainty.” She added: “Domestic consumption and investment continue to support growth, while the gradual recovery in external demand provides a more constructive outlook for the third quarter.” Positive outlook Abu Manneh said the latest indicators reflect the strength of the UAE’s economic fundamentals and its continued role as a leading hub for trade, investment and capital flows. Standard Chartered’s analysis suggests that improving business conditions and recovering external demand could support further growth momentum across the UAE economy during the remainder of 2026.