The UAE’s non‑oil private sector continued to expand in June, with the Purchasing Managers’ Index (PMI) rising slightly to 53.5 from 53.3 in May, according to OPEC’s July Monthly Oil Market Report (MOMR).
Real estate momentum
Dubai saw real-estate transaction volumes increase by 24% year-over-year through June, with values rising by 38%. June alone recorded both volume and value rises of approximately 17%.
In Abu Dhabi, second‑quarter volumes rose 7% and values climbed 45% year‑on‑year.
Tourism
In terms of tourism, Dubai’s arrivals in May rose 6% year-over-year; year-to-date arrivals are 7% ahead of 2024 and 21% above pre-pandemic levels. Hotel occupancy hit 83%.
Diversification and tech cooperation
OPEC noted the UAE is actively diversifying via international partnerships. A new US-UAE Advanced Technology Cooperation framework includes plans for a 1 GW AI data centre in Abu Dhabi, part of a wider 5 GW AI cluster. The agreement establishes a working group within 30 days to oversee implementation.
This may accelerate initiatives by local tech firms such as G42, which is expected to lead construction on the AI campus.
Wider economic context
OPEC projects improving global demand in H2, supporting increased crude intake and energy sector activity. The UAE’s private‑sector performance, supported by real estate and tourism, aligns with broader economic resilience. The technology pact marks a strategic shift aimed at bolstering innovation and diversifying growth away from oil.
