Regional PMIs rebound as firms adapt to conflict shock

• Regional PMIs point to recovery from conflict shock, led by UAE, Dubai.
• Saudi momentum improves; Egypt activity nears stabilisation.
• Demand strengthens across region, but unevenly; UAE new orders strongest, while Saudi orders supported by domestic buyers.
• Supply chains remain key divide, improving in UAE, Saudi Arabia but worsening in Egypt, where shortages, cash-flow strains persist.

The August PMI surveys suggest regional demand is recovering from the conflict shock, but the after-effects remain visible in supply chains, export weakness, and still-firm price pressures.

Regional non-oil activity strengthened as firms continued to adapt to disruption. The S&P Global UAE PMI rose to 55.3 from 52.7 in July, the strongest reading since December 2024, while the Dubai PMI climbed to 54.1 from 51.7.

Saudi Arabia’s Riyad Bank PMI rose to a six-month high of 53.8, although activity remains below its long-run trend. Egypt remained just below the neutral 50 level, but its S&P Global PMI jumped to 49.6 from 46.8, signalling only a marginal deterioration in business conditions and the softest decline since January.

Click here to download full report