UAE Non-Oil PMI Slips to 50.8, Marking 5-Year Low as Iran Conflict Hits Demand

3 articles · Updated · IndexBox, Inc. · Jul 3

The UAE’s non-oil private sector expanded at its weakest pace since February 2021 in June, with the S&P Global PMI falling to 50.8 from 52.6 and employment shrinking for the first time in more than four years.
Iran conflict fallout drove the slowdown: clients delayed spending, tourism remained subdued, supply chains were disrupted by the Strait of Hormuz closure, and firms also faced rising costs and competitive pressure.
Job cuts were among the sharpest since August 2020, as companies trimmed capacity to contain expenses; the reduction helped stabilize wage costs for the first time in nearly three and a half years.
Dubai showed the same strain, with its non-oil PMI dropping to 50.7 from 52.0—its weakest improvement since January 2021—and job losses hitting a five-and-a-half-year high.
A June ceasefire and the strait’s reopening have shortened delivery times and kept business expectations broadly optimistic, but S&P Global said any recovery is likely to be gradual.