Middle East Non-Oil Companies Hike Prices at 15-Year High Amid Iran War Supply Disruptions

According to S&P Global, non-oil companies in the United Arab Emirates raised prices on May 5 at the sharpest rate in almost 15 years as supply disruptions from the US-Israeli conflict with Iran compressed profit margins. The UAE private sector’s purchasing managers’ index (PMI) fell from 52.9 in March to 52.1 in April, marking the weakest performance in over five years, with rising selling prices reflecting growing inflation risks.

Egypt’s input prices surged at their fastest pace since January 2023, with around 27 percent of surveyed businesses reporting cost increases. The headline PMI dropped from 48 to 46.6, the steepest contraction since January 2023. In Saudi Arabia, business expenses rose at the steepest rate since the survey began 17 years ago, with the PMI recovering to 51.5 in April from 48.8 in March.