NEW DELHI, November 4: Non-oil businesses in the United Arab Emirates raised their selling prices in October at the fastest pace since the survey began in August 2009, as higher fuel and material costs fed through, according to the S&P Global UAE PMI released on Wednesday. Surveys across the Gulf showed a split: activity kept growing in the UAE, Saudi Arabia and Kuwait, while Qatar’s non-energy private sector shrank for an eighth month.
Key highlights
- UAE: PMI 54.8 in October, down from 55.3. Output prices rose at a record pace and input costs at the fastest rate since June 2022. New export work grew at the quickest rate in exactly two years.
- Saudi Arabia: the Riyad Bank PMI fell to 54.0 from 55.3, still its second-highest level since February. Export orders fell for an eighth month.
- Kuwait: PMI rose to 52.9 from 52.4, with new orders growing at the fastest pace since February, just before war broke out in the region.
- Qatar: PMI fell to 46.3 from 47.3, the steepest decline since May, and firms cut jobs for the first time since July 2024.
| Economy | October 2026 | September 2026 | Signal |
|---|---|---|---|
| UAE (non-oil) | 54.8 | 55.3 | Solid growth; record selling-price rise |
| Saudi Arabia (non-oil) | 54.0 | 55.3 | Growth; 7th month above 50 |
| Kuwait (non-oil) | 52.9 | 52.4 | Growth; 4th month above 50 |
| Qatar (non-energy) | 46.3 | 47.3 | Contraction; 8th month below 50 |
UAE: demand up, prices up faster
UAE firms linked higher activity to construction, retail, tourism and manufacturing, though some cited restraints from regional conflict, competition and lower discretionary spending. New orders rose faster than in September, helped by new clients and foreign orders. Business confidence rose to its highest since January, but employment dipped slightly. David Owen, principal economist at S&P Global Market Intelligence, said firms were feeling “the impact of higher fuel prices and increased charges for critical materials”.
Saudi Arabia: home demand carries growth
Output growth in Saudi Arabia’s non-oil economy picked up to a robust pace, and new orders kept rising strongly, though more slowly than September’s seven-month high. Demand came mainly from the domestic market; export sales fell at a sharper rate, with almost a quarter of firms reporting a decline amid shipping disruption. Input cost inflation reached its highest since June, but competition kept the rise in selling prices to the slowest in nine months. Confidence stayed subdued over geopolitical tensions and costs.
Kuwait and Qatar
In Kuwait, purchasing activity and input stocks rose at record rates, with some firms buying ahead of expected price rises, and new export orders grew faster, with some firms citing customers in neighbouring countries. In Qatar, firms blamed weak demand, staff cuts, competition, completed projects and uncertainty for falling activity, with construction hit hardest, and linked weaker orders partly to the conflict in the region. Input cost inflation in Qatar eased to a six-month low. The Qatar PMI has averaged 51.7 since the survey began in April 2017.
Our calculation
- Three of the four Gulf surveys were above 50. Saudi Arabia’s index fell the most, by 1.3 points.
- Qatar’s 46.3 was 5.4 points below its own long-run average of 51.7.
What it means for India
The Gulf is one of India’s most important economic partners: the UAE and Saudi Arabia are among India’s largest trading partners, and the region is home to millions of Indian workers whose earnings flow back home. Rising costs and record price increases in the UAE point to higher living costs for those workers and higher prices for goods traded through Gulf hubs. Weak demand in Qatar’s construction sector is worth watching for Indian contractors and workers there.
What to watch
- Whether UAE price rises ease as fuel costs settle.
- Saudi export orders, which have now fallen for eight months.
- Any recovery in Qatar’s construction activity.
The Dubai skyline with the Burj Khalifa, UAE. Image: petter palander, CC BY 2.0, via Wikimedia Commons. Photo source · Licence
Sources
- S&P Global: UAE PMI, October 2026
- S&P Global: Riyad Bank Saudi Arabia PMI, October 2026
- S&P Global: Kuwait PMI, October 2026
- S&P Global: Qatar PMI, October 2026
The Business Desk covers markets, the economy, companies and personal finance. Stories are checked against at least two credible sources before publication.
