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Here’s what the latest S&P PMI index says about the UAE

The survey signals that the UAE economy is performing well, but the softer increases in output and new orders hint at momentum easing

Nida Sohail
Nida Sohail

04 June, 2025

Here’s what the latest S&P PMI index says about the UAE
Image courtesy : Getty Images

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In a positive sign for the labour market, employment growth reached its highest level in the UAE in a year, as businesses expanded their workforce to meet rising workloads, according to the latest data from the S&P Global UAE Purchasing Managers’ Index (PMI).

This increase in staffing came even as the pace of backlog accumulation softened, according to S&P. Hiring activity was supported by a continued increase in new orders, although many firms appeared to be balancing expansion with caution as broader economic conditions showed signs of moderating.

Read-Rising insurance premiums reshape UAE consumer spending, NIQ report shows

Employment growth was the strongest seen in exactly one year. Respondents often attributed this to elevated workloads, as rising new orders contributed to another sharp increase in backlogs of work. That said, the pace of accumulation did soften slightly to a 16-month low, according to the index.

Growth in the UAE’s non-oil private sector economy

The growth in the UAE’s non-oil private sector economy slowed notably in May. The headline index also fell to its lowest level in nearly four years, signalling a softer but still solid improvement in business conditions.

The seasonally adjusted PMI slipped to 53.3 in May, down from 54.0 in April. Although this marked the weakest performance since September 2021, the index remained above the 50.0 threshold that separates growth from contraction, pointing to continued expansion in the non-oil sector.

Despite the dip in the headline figure, demand conditions across the UAE remained resilient. Companies surveyed reported a sustained rise in new orders, supported by favourable demand, strong client relationships, effective marketing strategies, and a diverse range of products. However, the rate of increase slowed slightly compared to previous months.

As a result, business output also expanded, although the pace of growth moderated to its weakest since mid-2021. According to respondents, higher sales volumes continued to support activity, but some firms cited global economic uncertainty, particularly in connection with US tariffs, as a factor weighing on output levels.

David Owen, Senior Economist at S&P Global Market Intelligence, noted the implications of the latest data. “UAE non-oil firms signalled that growth had slowed in May, as the headline PMI fell to its lowest point since September 2021. Although businesses continued to welcome strong demand from their clients, there were some reports that competitive pressures and weaker trade amid US tariffs had weighed on growth,” he said.

“From an overall perspective, the survey signals that the UAE economy is performing well, but the softer increases in output and new orders hint at momentum easing. Furthermore, the sharp cutback in stocks (which was the fastest on record) and the broadly subdued outlook for activity suggest that firms are gearing up for softer growth,” Owen added.

Drop in inventory as firms adjust stock levels

One of the most striking developments in May was a record fall in input inventories, as businesses sought to streamline stock levels in response to cooling demand momentum. The drop in inventories coincided with a slowdown in backlogs of work, which grew at their weakest rate in 16 months.

While workloads remained elevated due to strong sales, firms appeared increasingly cautious about future activity levels, adjusting their supply chains and inventory holdings accordingly.

Cost pressures eased notably in May. Input price inflation slowed to its lowest rate since December 2023, providing some relief to firms. Only 5 per cent of respondents reported an increase in input costs compared to April, with some citing higher raw material and transport costs.

Meanwhile, selling prices increased for the fifth consecutive month, though the rise was marginal. Companies noted that efforts to pass on higher costs to clients were offset in some cases by the need to offer discounts to remain competitive.

“Positively, the survey data backs up the trend of falling inflationary pressures, as businesses saw input costs rise at their slowest rate since the end of 2023,” Owen commented.

Dubai sees growth

In Dubai, the PMI held steady at 52.9, unchanged from April and marking the joint-lowest reading since early 2022. Nonetheless, the figure indicated continued growth in the emirate’s non-oil private sector.

New orders in Dubai rose at a four-month high, supported by improved client confidence, effective marketing, and competitive pricing. Business activity expanded sharply, though the rate of increase remained among the weakest seen in four years.

Inventory levels in Dubai fell for the first time in 2025, while job creation was described as mild. Input cost inflation in the emirate also eased, reaching its lowest level in 17 months, helped by reduced inventory pressures.

The S&P Global United Arab Emirates PMI is compiled by S&P Global from responses to questionnaires sent to purchasing managers in a panel of around 1000 private sector companies. The panel is stratified by detailed sector and company workforce size, based on
contributions to GDP. The sectors covered by the survey include manufacturing, construction, wholesale, retail and services.

Emirates SkyCargo launches new vertical: here are all the details

The Aircraft Engines solution includes end-to-end expert oversight, with certified loadmasters supervising each stage of the shipment — from loading and securing to unloading

Gulf Business
Gulf Business

04 June, 2025

Emirates SkyCargo launches new vertical: here are all the details
Image: DMO/ Emirates SkyCargo

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Emirates SkyCargo has launched a specialised product named Aircraft Engines, designed to transport one of aviation’s most critical and high-value components.

The service falls under a newly introduced vertical, Aerospace and Engineering, focused on providing high-precision logistics solutions to the aerospace, defence, and space sectors.

“Moving highly specialised items is always an exciting challenge, and, having significantly invested in building world-class infrastructure across our network, it’s a challenge that we are ready to meet,” said Badr Abbas, DSVP of Emirates SkyCargo.

“Harnessing the technical expertise of our team, our proprietary and innovative technology and fit-for-purpose infrastructure, we liaised closely with various stakeholders to develop aircraft engines and a dedicated product vertical, to ensure we were able to cater to such valuable and technical cargo at every touchpoint.”

Read: Emirates soars to further success: CCO Adnan Kazim on its growth and global reach

Aircraft engines, due to their complexity and value, are often moved for maintenance, repair or replacement and require swift, highly specialised handling.

Emirates SkyCargo worked closely with manufacturers, operators, and external consultants to optimise its existing processes, resulting in a dedicated solution for the global movement of engines.

emirates skycargo launches dedicated solution for the carriage of aircraft engines under new vertical image Dubai Media office Emirates Emirates SkyCargo

The Aircraft Engines solution includes end-to-end expert oversight, with certified loadmasters supervising each stage of the shipment — from loading and securing to unloading. The carrier uses specialised handling equipment, including shock-absorbing transport dollies, and offers real-time shipment monitoring through its control tower team and optional track-and-trace devices.

The service also prioritises speed, offering the highest loading priority for engine shipments to minimise ground time and keep customer aircraft operations running efficiently.

A team of experts is based in key cities across the network to provide round-the-clock consultation via a dedicated hotline and email channel, enabling faster response times.

Emirates SkyCargo says its vast global network, competitive connection times, and the ability to swiftly reroute freighters give it an unmatched edge in delivery times.

Emirates SkyCargo’s new vertical includes AOG service

The newly introduced Aerospace and Engineering vertical is aimed at a targeted customer base that includes commercial aviation companies, aircraft manufacturers, defence and space sector clients, and government entities.

Alongside Aircraft Engines, the vertical also includes Emirates AOG (Aircraft on Ground), a service for time-critical aircraft parts.

Emirates recently enhanced this offering with distinctive ‘Must Go’ bags stamped with ‘CARGO’ for quicker recognition and handling.

Additional subcategories under the vertical are currently in development to broaden Emirates SkyCargo’s specialised services.

Emirates SkyCargo already handles hundreds of aircraft engine shipments annually and has played a role in high-profile aerospace missions, including the transport of KhalifaSat, the first Emirati-built satellite, and most recently, nanosatellites transported from Paris to Auckland for global IoT connectivity. These operations have helped shape the development of the new product and vertical.

Breaking down barriers in insurance: Why sharing data matters

The window to act is narrowing; As regulations toughen and customer expectations rise, insurers have a short window to embed transparency, security, and seamless data sharing into their operating core

Gabriele Obino
Gabriele Obino

04 June, 2025

Breaking down barriers in insurance: Why sharing data matters
Image: Supplied

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Across the Middle East, insurers are racing to adopt AI and meet rising regulatory demands but many are still losing the race where it counts: data integration.

According to Norton Rose Fulbright’s “Insurance Foresight 2025” report, artificial intelligence (AI) will play a growing role in driving this transformation.

Yet, despite the buzz around innovation, most insurers are still shackled by siloed systems that can’t talk to each other.

Data is often stored in different systems, slowing communication, creating errors, and frustrating customers. Solving this isn’t just a technical upgrade – it’s the next big leap toward real operational agility, trust, and regulatory readiness.

The unseen barrier behind delays and errors

AI may be the headline, but broken data systems are the footnotes where failure lives. Delayed quotes, slow claims processes, and inconsistent customer service often stem from fragmented systems and manual data transfers. Without seamless connections between systems, even the most sophisticated AI becomes blind ineffective.

This issue isn’t just a technical inconvenience; it undermines the customer experience and affects the brand`s credibility.

Regulatory expectations are rising

In the Gulf, what was once guidance is fast becoming obligation. For example, in the UAE, the Artificial Intelligence Ethics Guidelines outline how entities should manage data, transparency, and accountability when deploying AI systems. Saudi Arabia’s National Strategy for Data and AI emphasises similar principles, calling for responsible governance and traceability across the data lifecycle.

Insurance companies must now prove they can track where data originates, how it is used, and whether it is being handled with consent and integrity. This level of accountability is unachievable without robust, interconnected systems.

Why seamless data sharing will separate leaders from Laggards

While regulators demand it, leaders leverage it. When brokers can access customer data instantly, they reduce response times and enhance service quality. Efficient data exchange across insurers, healthcare providers, and repair shops reduces duplication and human error in claims.

Moreover, the performance of AI systems is directly tied to the quality and accessibility of data. Without structured, interoperable datasets, even the smartest algorithms can’t deliver on their promises – from fraud detection to personalised coverage.

The tools powering interoperability

Despite the Middle East’s reputation for innovation, insurers are still held back by entrenched workflows, legacy systems, and inconsistent data quality. But as adoption begins to accelerate, a new wave of tools is quietly enabling systemic interoperability — offering insurers a way to leapfrog outdated practices and unlock the next stage of transformation.

One of the most persistent issues across regional markets is the continued reliance on email as the primary placement method — a sign of deeper fragmentation in insurance processes. Many insurers are only now beginning to transition from legacy systems toward modern, integrated tools that enable true end-to-end data connectivity. These tools include:

Unified Dashboards: Modern dashboards consolidate underwriting, claims, and client data in real time. This single source of truth reduces duplication, enables quicker decision-making, and ensures that brokers and underwriters are aligned in servicing and risk evaluation.

AI and Automation: AI-enabled solutions are already being applied to streamline underwriting, automate claims processing, and flag potential fraud. Digital placing platforms and workflow automation tools significantly reduce time spent on manual tasks like re-keying data — freeing brokers and underwriters to focus on growth, advisory services, and value delivery.

Collaborative Portals: Secure digital portals are replacing PDF-based submissions, spreadsheets, and lengthy email threads. These collaborative environments allow stakeholders across the insurance lifecycle to exchange data, approve policies, and monitor progress in real time — dramatically improving speed and reducing operational friction.

Real business impact

This technology isn’t just improving backend operations; it’s shaping frontline outcomes and strategic partnerships.

  • Faster decision-making: Integrated systems mean approvals that once sat idle in inboxes now flow automatically. Leads convert faster, onboarding is frictionless, and no client is lost in the waiting.
  • Efficient claims handling: Today’s AI tools assess claims quickly, flag suspicious ones, and speed up legitimate payouts. When linked to hospitals, repair shops, and legal teams, they create a fast and reliable claims process, just when customers need it most.
  • Transparency = trust: Visible workflows, predictable timelines, and steady communication make clients feel like partners. In a competitive market, this kind of transparency builds loyalty and drives referrals.

Preparing for what’s next

The window to act is narrowing; As regulations toughen and customer expectations rise, insurers have a short window to embed transparency, security, and seamless data sharing into their operating core.

A smooth digital experience isn’t just about compliance; it’s a key to client satisfaction. Easy data sharing means clients stay longer, refer more business, and explore new services. The ecosystem is shifting fast. Collaboration between insurers, regulators, and tech enablers is no longer optional – it’s a growth strategy.

With these foundations in place, insurers can not only meet today’s demands, but they’ll also be ready to grow, offer tailored products, and thrive through future challenges.

The writer is the regional VP, Southern EMEA & ME at Denodo.

Read: How embedded solutions are transforming the insurance sector

Dubai launches major upgrade of Al Wasl Rd, Umm Suqeim St, Al Qudra Corridor

The road will be widened from two to three lanes in each direction, which is expected to reduce travel times by 50 per cent and increase capacity from 8,000 to 12,000 vehicles per hour in both directions

Gulf Business
Gulf Business

04 June, 2025

Dubai launches major upgrade of Al Wasl Rd, Umm Suqeim St, Al Qudra Corridor
Image: RTA/ Dubai Media Office

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Dubai’s Roads and Transport Authority (RTA) has unveiled a major infrastructure development project covering Al Wasl Road, Umm Suqeim Street, and the Al Qudra corridor, aimed at reducing travel times and significantly increasing road capacity across key urban areas of the city.

The development spans 15 km along Al Wasl Road, from the intersection with Umm Suqeim Street to the junction with 2nd December Street. It includes the upgrade of six intersections and the construction of five tunnels totalling 3,850 metres.

The road will be widened from two to three lanes in each direction, which is expected to reduce travel times by 50 per cent and increase capacity from 8,000 to 12,000 vehicles per hour in both directions.

“Al Wasl Road Development Project forms part of a master plan developed by the RTA to upgrade the road network in the area, which also includes enhancements to Umm Suqeim and Al Safa Streets,” said Mattar Al Tayer, DG and chairman of the Board of Executive Directors of the RTA. “These projects are designed with a focus on creative and aesthetic elements, incorporating pedestrian walkways, cycling tracks, boulevards, and vibrant urban public spaces.”

Read: RTA launches major upgrade of Umm Suqeim St to boost traffic flow

Al Wasl project: Tunnels and intersection upgrades

The Al Wasl Road project includes upgrades to intersections at Al Thanya, Al Manara, Umm Al Sheif, Umm Amara, Al Orouba, and Al Safa Streets.

A three-lane unidirectional tunnel will be built at the Al Manara intersection, branching into two routes with a combined capacity of 4,500 vehicles per hour.

A two-lane tunnel on Umm Al Sheif Street, spanning 750 metres, will accommodate 3,200 vehicles per hour.

A 700-metre tunnel at Umm Amara Street will feature two lanes in each direction with a total capacity of 6,400 vehicles per hour.

A unidirectional, two-lane tunnel at Al Orouba Street will head toward Jumeirah Street, while a 750-metre tunnel at Al Safa Street will serve two-way traffic, each with a capacity of 6,400 vehicles per hour.

The Al Satwa roundabout will be converted into a signalised junction, and surface-level enhancements will be implemented at five intersections along Jumeirah Street.

Expanding the corridor

The Al Wasl Road initiative complements a broader RTA plan to upgrade Umm Suqeim Street from Jumeirah Street to Al Khail Road, boosting capacity from 12,000 to 16,000 vehicles per hour. Travel times are expected to drop from 20 minutes to six minutes. The area serves over two million residents.

The upgrade includes six intersections and will involve four bridges and three tunnels totalling 4,100 metres.

Key features include a tunnel with two lanes in each direction at the intersection with Jumeirah Street, and a tunnel at Al Wasl Road for traffic from Sheikh Zayed Road to Jumeirah Street.

Two bridges at Sheikh Zayed Road will eliminate traffic weaving, and a tunnel at First Al Khail Road will aid traffic from Al Barsha towards Sheikh Zayed Road.

An extra lane will be added between First Al Khail and Al Asayel Street, while two elevated ramps will facilitate access to Al Khail Road and the Al Quoz Industrial Area.

Al Qudra Road upgrades

RTA is also progressing with upgrades from Al Khail Road to Emirates Road via Umm Suqeim Street and Al Qudra Road. A key feature is an 800-metre tunnel at Al Barsha South with four lanes in each direction.

Al Qudra Road itself will be upgraded along an 11.6 km stretch, including several intersections and bridges totalling 2,700 metres. Travel times along this section are expected to fall from 9.4 minutes to 2.8 minutes.

“These projects form a blueprint for smart and sustainable mobility in Dubai,” said Al Tayer, noting that the areas covered are among Dubai’s most vibrant, home to beaches, hotels, restaurants, and residential communities.

Huda Kattan reclaims ownership of Huda Beauty, buys back TSG stake

The shift to full independence comes as Huda Beauty plans bold new product launches and continues to prioritise deeper engagement with its global community

Neesha Salian
Neesha Salian

04 June, 2025

Huda Kattan reclaims ownership of Huda Beauty, buys back TSG stake
Image: Supplied

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Huda Beauty, one of the world’s most recognisable makeup brands, has regained full independence after its founder, Huda Kattan, bought back the equity stake held by US-based private equity firm TSG Consumer Partners, ending their eight-year partnership.

TSG had acquired a minority stake in the Dubai-based company in 2017. With the repurchase, Kattan resumes full ownership of the brand she launched in 2013 with a $6,000 loan from her sister.

The move places Huda Beauty among a small number of fully founder-owned beauty companies in the global market.

“Taking back full ownership of Huda Beauty is a deeply important moment for me,” Kattan said in a statement. “This brand was built on passion, creativity, and a desire to challenge the beauty industry.”

Huda Beauty plans new product launches

Kattan, who serves as founder and Co-CEO, will now lead the company alongside her husband, Christopher Goncalo, who is co-CEO, and sister Alya Kattan, who oversees social strategy.

Known for viral product drops and a digital-first strategy, Huda Beauty has become a powerhouse brand in the cosmetics industry, particularly in the Middle East and North America.

The company’s Instagram account is the most-followed beauty brand globally, with nearly 57 million followers, and its founder has gained global acclaim as a leading entrepreneur and influencer.

The brand’s philosophy, “Beauty is Self-Made”, has underpinned its appeal to a diverse global audience, with a focus on inclusivity, transparency and authenticity.

Under Kattan’s leadership, the company has phased out Photoshop and filters on social platforms, and championed realistic beauty standards.

Kattan, a former makeup artist and beauty blogger, launched the company with a line of false eyelashes that quickly became a bestseller at Sephora Dubai Mall. The brand now offers a wide range of cult products, including the popular Easy Routine line, and is known for boundary-pushing content, tutorials and advocacy.

The shift to full independence comes as Huda Beauty plans new product launches and continues to prioritise deeper engagement with its global community.

Kattan recently launched a new podcast, Huda Hotline, offering unfiltered conversations about beauty, entrepreneurship and self-discovery.

The terms of the buyback deal were not disclosed.

Read: Dubai’s Huda Beauty sells KAYALI to co-founder, General Atlantic

Midday Break in UAE: Here’s what companies need to know

Violating companies will be fined Dhs5,000 per worker per breach, up to a maximum of Dhs50,000 if multiple workers are found in violation

Nida Sohail
Nida Sohail

03 June, 2025

Midday Break in UAE: Here’s what companies need to know
Image credit: WAM/ Website

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The UAE Ministry of Human Resources and Emiratisation (MoHRE) has announced the implementation of the Midday Break, which prohibits work under direct sunlight and in open-air spaces between 12:30pm and 3:00pm, from June 15 to September 15, 2025.

Read-Dubai Introduces new resolution to regulate free zone operations

Now in its 21st consecutive year, the Midday Break reflects the UAE’s sustainability-driven approach and commitment to providing a safe working environment. It aligns with international best practices and occupational health and safety standards, protecting workers from injuries and illnesses caused by high summer temperatures, a WAM report said.

“The Midday Break has achieved a record compliance rate of over 99 per cent for several years in a row, clearly reflecting the deeply rooted social and humanitarian values within the UAE’s business community. It also demonstrates high awareness of the importance of protecting human capital—the most valuable resource in any company—and underscores the people-centred labour practices embraced in the UAE,” Mohsin Ali Al Nassi, Assistant Undersecretary for Inspection & Compliance at MoHRE said.

Al Nassi emphasised the ministry’s commitment to raising awareness among employers and workers through field visits to worksites and labour accommodations. These efforts help promote occupational health and safety and reduce the risk of heat-related illnesses.

“The Midday Break has become a leading example of successful partnerships between MoHRE, the private sector, and the wider community. Many partners have launched their own initiatives to support workers during the Midday Break,” Dalal Alshehhi, Acting Assistant Undersecretary for Labour Protection at MoHRE, added.

She continued, “This initiative reinforces social responsibility and supports the success of our awareness strategies, further embedding humanitarian values into the UAE’s work culture, which welcomes over 200 nationalities to live, work, and invest in line with the goals of the ‘We the UAE 2031’ vision.”

Rest areas

Alshehhi praised private sector companies that have proactively established fully equipped rest areas to ensure workers’ comfort during the Midday Break. These efforts reflect a strong commitment to workers’ wellbeing and help boost productivity.

She encouraged all private sector entities to implement similar measures, citing their positive impact on both health and efficiency.

Under the Midday Break rules, companies must provide essential supplies and arrangements, including shaded areas, cooling equipment such as fans, sufficient drinking water, hydration supplements approved by local authorities, and necessary first-aid supplies at worksites.

Exemptions

The regulations allow for exemptions where continuous work is required for public interest or technical reasons. These include activities like asphalt laying or concrete pouring that cannot be delayed, as well as urgent repair work affecting public utilities, traffic, or essential services.

Work requiring permits from government authorities, due to its impact on public life and mobility, is also exempt.

MoHRE monitors company compliance with the Midday Break via its inspection systems throughout the summer period.

The ministry also encourages the public to report violations through its call centre (600590000), website, or smart app.

Violating companies will be fined Dhs5,000 per worker per breach, with a cap of Dhs50,000 if multiple violations are recorded.

MoHRE will intensify awareness campaigns and field inspections—coordinating with both public and private sector partners—to ensure compliance with the Midday Break regulations.

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