Middle East Non-Oil Growth Slows Amid Iran Conflict Disruptions
Non-oil business growth across the UAE, Kuwait, and Egypt slowed significantly in March due to escalating regional tensions involving the US, Israel, and Iran. S&P Global data reveals that trade disruptions, dampened demand, and rising costs have impacted the region's economies. The UAE's PMI eased to 52.9, remaining in expansion but at its lowest since July 2025. Kuwait experienced a sharper decline, with its PMI falling to 46.3, marking its first contraction in over a year as flight suspensions and shipping issues reduced new orders. Egypt's index dropped to 48, driven by weaker demand and soaring input costs linked to the conflict and a strengthening US dollar. While Egypt maintains underlying GDP growth, firms have turned pessimistic about future output for the first time in the survey's history. The war has forced companies to limit employment and purchasing, highlighting the severe economic ripple effects of the ongoing geopolitical instability.
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Middle East Non-Oil Growth Slows Amid Iran Conflict Disruptions
Non-oil business growth across the UAE, Kuwait, and Egypt slowed significantly in March due to escalating regional tensions involving the US, Israel, and Iran. S&P Global data reveals that trade disruptions, dampened demand, and rising costs have impacted the region's economies. The UAE's PMI eased to 52.9, remaining in expansion but at its lowest since July 2025. Kuwait experienced a sharper decline, with its PMI falling to 46.3, marking its first contraction in over a year as flight suspensions and shipping issues reduced new orders. Egypt's index dropped to 48, driven by weaker demand and soaring input costs linked to the conflict and a strengthening US dollar. While Egypt maintains underlying GDP growth, firms have turned pessimistic about future output for the first time in the survey's history. The war has forced companies to limit employment and purchasing, highlighting the severe economic ripple effects of the ongoing geopolitical instability.
Business & Economy