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The 33-year-old said the reason behind her panic attack was a conversation she had days earlier with the WTA chief executive Steve Simon about tennis's response to Russia's invasion of Ukraine.
The exhibition games were watched by eminent personalities, including union law minister Kiren Rijiju and former India cricket team captain Mohammed Azharuddin.
Krejcikova will climb from No. 30 to 16 on Monday after beating the top-ranked Iga Swiatek 6-4, 6-2 in Saturday's Dubai final.
Sania and her American doubles partner Madison Keys lost their Dubai Tennis Championships first round match to Veronika Kudermetova and Liudmila Samsonova.
The 36-year-old Sania, who turned Pro in 2003, walks out of competitive tennis with six Grand Slam titles, including three women's doubles with Swiss legend Martina Hingis.
Sania, who is bidding adieu to the game after the ongoing Dubai Tennis Championships, says she never had the fear of losing in her heart because it makes a player defensive.
World No. 106 Shnaider made a habit of roaring in Sakkari's direction and throwing her icy stares, and it got too much for the Greek sixth seed at 5-5 in the second set at Margaret Court Arena.
The announcement landed amid speculation that Osaka, who is one of the highest-earning women athletes, according to Forbes, may have been scaling back on her professional playing career.
Her withdrawal comes a day after American seven-time Grand Slam champion Venus Williams was ruled out of the Australian Open due to injury.
Sania will compete alongside Kazakhstan's Anna Danilina at the Australian Open, which begins on January 16, before bidding farewell to the sport in the UAE.