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Updated · Semafor · Jul 6UAE Non-Oil PMI Falls to 50.8, Lowest Since February 2021 as Iran War Lifts Costs
3 articles · Updated · Semafor · Jul 6Summary
- 50.8 in June left the UAE’s non-oil PMI barely above contraction, marking the private sector’s weakest reading in more than five years.
- Weak demand, supply-chain disruption and higher war-related costs drove the slide, while employment fell at the fastest pace since 2020.
- Improved trade flows through the Strait of Hormuz eased some pressure in June, but S&P Global said any rebound could take time.
- 53.3 in Saudi Arabia contrasted with the UAE slowdown, while Kuwait and Qatar stayed below the 50 threshold.
Insights
Why is Saudi Arabia's economy thriving while the UAE's falters amid the same regional war? Can a new UK trade deal rescue the UAE's economy from the devastating fallout of the Iran war? Is the Iran war permanently ending the Middle East's era as a stable global business and travel hub?