Major Bank Forecasts Robust Q3 Performance for the UAE Economy
DUBAI — The UAE economy is expected to gather pace in the third quarter of 2026, with Standard Chartered forecasting stronger business activity as resilient domestic demand and investment continue to support non-oil growth.
The bank’s latest global research said the country’s private sector remains on an expansion trajectory despite recent regional uncertainty, while improving trade flows are expected to provide an additional boost in the months ahead.
According to Standard Chartered, the UAE’s June S&P Global Purchasing Managers’ Index remained above the 50 threshold, indicating continued expansion in non-oil business activity. The bank said growth continues to be supported by domestic consumption and investment, while the external sector is expected to recover gradually as regional trade flows normalise.
The combination of resilient domestic demand and improving external conditions is expected to underpin stronger business momentum during the third quarter.
Rola Abu Manneh, CEO of Standard Chartered for the UAE, Middle East and Pakistan, said: “The UAE’s latest PMI reading reinforces the resilience of its non-oil economy and private sector activity through a period of regional uncertainty. Domestic consumption and investment continue to support growth, while the gradual recovery in external demand provides a more constructive outlook for the third quarter.”
The research suggests the UAE’s diversified economy continues to benefit from robust domestic demand while positioning itself to capture stronger regional trade activity as external conditions improve. The outlook reflects the depth of the UAE’s economic fundamentals and its continued role as a leading hub for trade, investment and capital flows.
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