The United Arab Emirates' non-oil private sector recorded its weakest expansion in more than five years in June, according to a Purchasing Managers' Index (PMI) released by S&P Global.
The slowdown was driven by a contraction in new export orders for a third consecutive month, marking the longest losing streak since 2016.
Firms in the region also reduced staff levels, reflecting cautious sentiment amid weakening external demand.
The data underscores the challenges facing the UAE's efforts to diversify its economy beyond hydrocarbons, as global trade headwinds persist.
The softening in the UAE comes as other major economies show mixed signals.
Private sector activity in the euro zone contracted for a third straight month in June, although the pace of decline moderated.