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Home News UAE Leads Regional Business Growth in August

UAE Leads Regional Business Growth in August

Sep 3, 2026
78 min
12
Sep 3, 2026 11:30
UAE leads regional business rebound, Saudi Arabia and Kuwait gain pace

## UAE's Economic Surge

In August, the UAE experienced its fastest non-oil economic growth since December 2024, according to the latest purchasing managers' index (PMI). The index rose to 55.3 from 52.7 in July, driven by a significant increase in new business and output growth. Export demand also improved for the second consecutive month. However, employment figures showed a decline for the second time in three months, as companies remained cautious about expanding their workforce.

## Saudi Arabia's Economic Momentum

Saudi Arabia's non-oil sector also saw positive growth, with the PMI reaching a six-month high of 53.8. This marks the fifth consecutive month of expansion, supported by strong domestic demand and improved sales. Despite the growth, exports continued to struggle, and businesses faced rising costs in materials, transport, and staffing.

## Kuwait's Economic Recovery

Kuwait recorded a notable improvement in its non-oil sector, with the PMI increasing to 53.6 from 50.8 in July. The country saw its fastest growth in output and new orders since February, and export orders returned to growth. This increase in business activity led to a rise in employment for the first time in six months, although cost pressures remained high.

## Egypt's Path to Stabilization

Egypt's non-oil private sector showed signs of stabilization, with the PMI rising to 49.6 from 46.8 in July. Although still below the growth threshold, the rate of contraction slowed significantly. Employment increased for the first time since October 2025, and business confidence reached its highest level in over four years. However, challenges such as material shortages and rising inflation persisted.

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