Middle East Non-Oil Business Growth Slows Amid Regional Tensions
UAE, Kuwait, and Egypt's non-oil sectors experience contraction as regional conflicts disrupt economic activities.
Non-oil business growth across the Middle East and North Africa slowed in April as regional tensions impacted economic activities.
The Purchasing Managers' Index (PMI) of the UAE decreased to 52.1, down from 52.9 in March, marking a slowdown in operating conditions but still above the 50 threshold that indicates growth over contraction.
Kuwait's PMI remained unchanged at 46.3, indicating shrinking non-oil business activity, while Egypt's reading dropped to 46.6 from 48 in the previous month.The regional tensions, exacerbated by the conflict between the US, Israel, and Iran, have disrupted shipping routes, airspace operations, and increased economic uncertainty across the Gulf region.
The UAE reported a historically sharp mark-up in selling prices due to cost increases and supply disruptions resulting from the conflict.
Firms are attempting to mitigate these effects through slowdowns in purchasing and hiring growth, but price pressures may negatively impact overall customer spending.In Kuwait, non-oil companies faced challenging business conditions with new orders, business activity, employment, and purchasing activity decreasing for the second consecutive month.
Supply-chain disruption remained evident, and the reopening of airspace on the 23rd of April is expected to help improve conditions in subsequent months.Egypt's non-oil private sector experienced a sharp deterioration in business conditions in April due to rising price pressures and disrupted global supply chains.
Companies curtailed their purchases of inputs and reduced headcounts due to tighter budgets driven by higher fuel and material costs.
Cost pressures reached their most marked level in over three years, prompting a stronger rise in selling prices.Qatar's non-energy sector also suffered a substantial setback in April with the PMI standing at 46.4, indicating contraction of non-hydrocarbon business activities.
New orders continued to fall sharply, leading to declining overall activity levels and sustained pessimism regarding the next 12 months.The economic slowdown across these countries highlights the broader impact of regional conflicts on economic activities in the Middle East and North Africa.
The Purchasing Managers' Index (PMI) of the UAE decreased to 52.1, down from 52.9 in March, marking a slowdown in operating conditions but still above the 50 threshold that indicates growth over contraction.
Kuwait's PMI remained unchanged at 46.3, indicating shrinking non-oil business activity, while Egypt's reading dropped to 46.6 from 48 in the previous month.The regional tensions, exacerbated by the conflict between the US, Israel, and Iran, have disrupted shipping routes, airspace operations, and increased economic uncertainty across the Gulf region.
The UAE reported a historically sharp mark-up in selling prices due to cost increases and supply disruptions resulting from the conflict.
Firms are attempting to mitigate these effects through slowdowns in purchasing and hiring growth, but price pressures may negatively impact overall customer spending.In Kuwait, non-oil companies faced challenging business conditions with new orders, business activity, employment, and purchasing activity decreasing for the second consecutive month.
Supply-chain disruption remained evident, and the reopening of airspace on the 23rd of April is expected to help improve conditions in subsequent months.Egypt's non-oil private sector experienced a sharp deterioration in business conditions in April due to rising price pressures and disrupted global supply chains.
Companies curtailed their purchases of inputs and reduced headcounts due to tighter budgets driven by higher fuel and material costs.
Cost pressures reached their most marked level in over three years, prompting a stronger rise in selling prices.Qatar's non-energy sector also suffered a substantial setback in April with the PMI standing at 46.4, indicating contraction of non-hydrocarbon business activities.
New orders continued to fall sharply, leading to declining overall activity levels and sustained pessimism regarding the next 12 months.The economic slowdown across these countries highlights the broader impact of regional conflicts on economic activities in the Middle East and North Africa.
