Dominic Dudley

The UAE’s non-oil economy hit its weakest level in seven years in June, with the private sector PMI at 50.8, driven by weak demand, supply chain disruptions, and rising costs linked to the Iran war. While improved trade through the Strait of Hormuz eased some pressures, Saudi Arabia’s non-oil PMI rose to 53.3, while Kuwait and Qatar’s indices remained below 50.

The UAE's oil exports reached a record 3.7 million barrels a day in June, driven by its exit from OPEC and measures to avoid Iranian threats in the Strait of Hormuz. Tankers used transponders turned off and a pipeline to Fujairah to bypass the chokepoint, though Gulf crude exports remain below prewar levels.

Qatar revised its labor laws to regulate part-time and freelance work for the first time, while implementing stricter rules on strikes. The reforms include doubling non-compete clauses to two years, requiring larger companies to establish joint management-staff committees, and imposing stricter wage payment oversight. Strikes are now limited to six unpaid days, with employers allowed to hire replacements, and employees agitating for illegitimate strikes can be dismissed without notice.

Oman is investing $4.2 billion in an agriculture development project in the Batinah region to enhance food security and reduce reliance on imports, aiming to produce 80% of its food by 2040. The government has established cloud seeding stations and allocated over 800 million rials to expand arable land and improve rainfall by 14%.

The Gulf Cooperation Council and the UK have finalized their first free trade agreement, covering goods, services, and digital trade. The deal removes tariffs on 93% of UK exports over 10 years and includes data processing provisions for UK companies. With bilateral trade worth £52.9 billion last year, this agreement positions the Gulf as London's fourth largest trading partner.