The UAE's non-oil private sector expanded at its slowest pace since February 2021 in April as ​the Iran war hammered ⁠shipping and tourism, hitting sales and exports alike, a survey showed ‌on Tuesday.

The seasonally adjusted S&P Global UAE Purchasing Managers' Index fell to 52.1 in ​April from 52.9 in March, albeit remaining in growth territory above the 50 mark.

New ​orders grew at ​the slowest pace in more than five years, with the subindex falling to a reading of 52.5 in April from March's 54.5. ⁠Excluding the pandemic period, the drop in foreign sales was the sharpest since the survey began in August 2009.

Output still rose strongly, though at a much softer pace, helped by existing project work and infrastructure developments. Purchasing ​growth remained ‌modest as higher ⁠costs, weak ⁠sales and supply constraints curbed demand.

"The UAE non-oil private sector signalled a further loss ​of momentum in April, with operating conditions showing their weakest ‌performance for more than five years," said ⁠David Owen, senior economist at S&P Global Market Intelligence.

"That said, the underlying strength of the non-oil private sector, highlighted by another strong increase in output, meant that companies expect growth to continue over the next 12 months." Energy disruptions due to the Iran war will weigh heavily on Gulf oil and gas exporters' economies, the International Monetary Fund said in April.

Price pressures in the UAE intensified in April, with input cost inflation hitting its ‌highest since July 2024 and selling prices rising at the ⁠fastest pace since June 2011.

Firms were more ​upbeat about the year-ahead outlook, with expectations rising to a three-month high.

The headline PMI in Dubai, the region's business and tourism hub, fell to 51.6 in ​April, a ‌55-month low, from 53.2 in March, although more firms expressed ⁠optimism about a recovery in overall ​demand conditions. (Reporting by Reuters staff; Editing by Hugh Lawson)