"The October PMI data points to a slower rate of growth in the non-oil private sector as we head into the fourth quarter, which is unsurprising in the context of sharply lower oil revenues and tighter liquidity conditions," Khatija Haque, head of MENA research at Emirates NBD, said in a report on Tuesday.
Output and employment growth both fell in October. In addition new orders rose at the slowest pace since the survey began six years ago.
Meanwhile, total cost pressures intensified in October, despite reports that greater competition had limited inflationary pressures.
"Declines in employment and quantity of purchases by businesses indicate anticipation of further weakness to come," said Simon Williams and Razan Nasser, economists at HSBC, in a note out after the PMI data.
"The weaker readings are in line with our view that the impact of the dramatic loss of oil income on economic activity would start to become more marked in Q4 2015."