RIYADH: Non-oil business growth in the UAE, Kuwait, and Egypt slowed in March as the Iran crisis interrupted trade, reduced demand, and raised expenses, according to S&P Global statistics. The UAE’s PMI fell to 52.9 in March from 55 in February, the lowest level since July 2025, but maintained in expansion territory. Kuwait experienced a greater downturn, with its PMI falling to 46.3 from 54.5, the first decrease in more than a year. Egypt’s index fell to 48 from 48.9, reaching its lowest level in over two years.
A PMI rating above 50 suggests expansion, whereas one below that level indicates recession. The broad-based downturn coincides with rising regional tensions following the commencement of war between the United States and Israel and Iran in late February, which has interrupted flights and shipping lines and increased anxiety throughout Gulf industries.
According to Andrew Harker, economics director at S&P Global Market Intelligence, “the S&P Global Kuwait PMI provides a clear indication of the impact of the war in the region on non-oil businesses during March.
He added: “Companies reported that the suspension of flights and shipping were key factors leading to reduced new orders and business activity, with firms responding by limiting their employment and purchasing.
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