Middle East non-oil sectors show growth in August 2026

Economic indicators for August 2026 show significant activity across the Middle East. In the Gulf, the non-oil private sectors of Saudi Arabia, the United Arab Emirates, and Kuwait experienced notable growth. The UAE's Purchasing Managers' Index (PMI) rose to 55.3, its fastest pace since December 2024, driven by increased output and new business. Saudi Arabia's PMI reached 53.8, marking its highest level in six months, though export orders declined due to regional tensions. Kuwait's PMI surged to 53.6, with output and orders expanding at their fastest rates since February.

In Egypt, the non-oil private sector saw a slowdown in contraction, with the PMI rising to 49.6, its highest in seven months. Meanwhile, Singapore's electronics PMI rose to 52.6, supported by AI-related demand.

In the energy sector, Saudi Arabia led major renewable energy transactions in August, including significant solar, wind, and battery storage projects involving collaborations in Syria. In the real estate market, Dubai reported a 37% decline in transaction volumes for August, though demand for off-plan villas increased, suggesting a shift toward early-cycle construction products over resale markets.