Selling prices across the UAE's non-oil private sector climbed at their fastest pace since May 2011 last month, according to the latest S&P Global survey of regional businesses. The UAE PMI held steady at 55.3 in September, little changed from the previous month, even as cost pressures facing companies intensified sharply.
Of the roughly 1,000 non-energy private firms surveyed, 13 per cent raised their selling prices in September while only 5 per cent lowered them, pointing to a broad pass-through of costs to customers. David Owen, principal economist at S&P Global Market Intelligence, said the increase in prices was "broad-based across the sectors of the non-oil private sector economy."
Analysts pointed to several factors behind the squeeze, including shipping disruption through the Strait of Hormuz linked to the Iran conflict, higher costs for raw materials, labour and energy, and resilient demand across the domestic market. Petrol prices in the UAE are now roughly 80 per cent higher than they were in February 2026, adding further pressure on operating costs for transport-reliant businesses. Economists noted that input-cost pressures have run above their long-term average every month since March 2026.
Despite the rising costs, the PMI reading above the 50-point threshold signals that the non-oil private sector continues to expand, meaning firms are managing to grow output even as they navigate tighter margins. Businesses are increasingly weighing how much of the added cost they can pass on without denting demand, a balance likely to shape pricing decisions well into the final quarter of the year.