The UAE's non-oil private sector experienced a significant slowdown in June, with the Purchasing Managers' Index (PMI) falling to 50.8, its weakest reading since February 2021. This decline reflects mounting geopolitical pressures, particularly the Iran war's closure of the Strait of Hormuz, which severely disrupted supply chains. The hospitality, aviation, and tourism sectors were hit hardest across the Gulf region, as businesses faced delays and increased costs.