UAE Non-Oil Firms Raise Prices at Record Pace as Costs Surge

Businesses in the United Arab Emirates' non-oil private sector raised selling prices in October at the fastest pace since S&P Global's survey began in August 2009. The survey, released on November 4, showed companies passing on higher operating costs even as new orders strengthened. The national purchasing managers' index fell to 54.8 from 55.3 in September, remaining above the 50 threshold that signals monthly improvement. Input costs increased at their fastest rate since June 2022. Respondents reported rising expenses for raw materials, fuel, energy, freight, maintenance, storage and rent. David Owen, principal economist at S&P Global Market Intelligence, said "businesses are focused on protecting their margins whilst sales recover." He warned of increased inflation risks in the fourth quarter following successive increases in petrol and diesel prices. New orders grew faster than in September, while new export business increased at its strongest pace in two years. Output growth slowed only slightly from September's seven-month high. Employment nevertheless declined fractionally, its third fall in five months, as cost-related cuts outweighed recruitment elsewhere. Unfinished work accumulated as orders exceeded firms' capacity to complete them. Dubai's separate PMI edged up to 54.6 from 54.5, an eight-month high, with businesses there also reporting record selling-price increases and modest staffing reductions. The UAE survey draws on approximately 1,000 non-energy private-sector companies. Responses were collected from October 12 to 26, 2026, and measure changes from the previous month rather than an official consumer-inflation rate.