Standard Chartered has forecast a pickup in UAE business activity for the third quarter of 2026, pointing to steady non-oil growth and a gradual recovery in external demand as key drivers behind the outlook.
The bank's global research division released the analysis on Monday, noting that the UAE's June S&P Global Purchasing Managers' Index stayed above the 50 mark that separates expansion from contraction. The reading points to continued growth in non-oil sectors, which have remained a central pillar of the country's economic performance.
According to Standard Chartered, domestic consumption and investment are the main forces sustaining this momentum. The external sector, meanwhile, is expected to strengthen gradually as trade flows across the region return to more normal patterns following a period of disruption.
Rola Abu Manneh, Chief Executive Officer for the UAE, Middle East and Pakistan at Standard Chartered, said the PMI figures underline how resilient the non-oil economy and private sector have been despite regional instability. She added that steady domestic demand, paired with an improving external environment, points to a more encouraging picture heading into the third quarter.
Abu Manneh said these indicators reflect the strength of the UAE's underlying economic structure and its standing as a major hub for trade, investment and capital flows.
The forecast comes as businesses and policymakers across the Gulf watch closely for signs of stability following months of regional volatility. Standard Chartered's assessment suggests the UAE is well positioned to benefit from both sustained internal demand and an eventual rebound in cross-border trade, reinforcing its role as a preferred destination for investors navigating an uncertain global landscape.
News Source: Emirates News Agency
