Standard Chartered forecasts stronger business activity in UAE for Q3 2026

Standard Chartered has predicted a significant increase in business activity in the UAE for the third quarter of 2026. This forecast is primarily driven by robust growth in the non-oil sector, which is expected to benefit from rising domestic demand and investment. The bank's analysis indicates that the UAE's economy is resilient, with positive indicators suggesting continued expansion despite regional uncertainties.

The S&P Global Purchasing Managers' Index (PMI) for June reflects ongoing expansion in the non-oil private sector, with a reading above 50 indicating favorable business conditions. This data reinforces Standard Chartered's optimistic outlook for the UAE's economic performance in the coming months.

The UAE's non-oil economy is poised for growth, supported by increasing domestic consumption and investment. Improving regional trade conditions are anticipated to bolster this expansion, making it a critical period for businesses in the area. The PMI reading for June, which remained above the 50-point threshold, serves as a key indicator of the positive momentum in the non-oil sector.

As the UAE navigates regional uncertainties, the resilience of its economy will be crucial for maintaining growth. Stakeholders, including policymakers and business leaders, should closely monitor these developments to adapt strategies accordingly.

The UAE's economic fundamentals suggest a constructive outlook for the remainder of 2026, with the non-oil sector expected to thrive. Monitoring the recovery of external demand as regional trade normalizes will be essential for understanding future growth trajectories. Additionally, further PMI readings will provide valuable insights into ongoing business activity.

As the third quarter approaches, businesses should prepare to leverage the anticipated increase in activity. This proactive approach will be vital for capitalizing on the positive economic indicators highlighted by Standard Chartered.