THIS MORNING: Tourism in Ajman is the latest to see gov’t support + Al Habtoor kicks off its lawsuit against Lebanon

Good morning, lovely people, and happy FRIDAY. We close out the week with a busy issue, with plenty of activity from UAE companies, bank earnings, and real estate performance updates.

In today’s “business as usual” news, hookah maker Advanced Inhalation Rituals looks to be the first UAE company to brave markets with a planned Nasdaq IPO in May. Meanwhile, Abu Dhabi healthcare firm M42 expanded its footprint in Brazil with the acquisition of a network of clinics and healthcare centers.

And in disruption-related news… the UAE’s three largest banks held firm in 1Q 2026, but impairment charges weighed on results. Plus: Office leasing in Dubai has taken a hit since the war began, but legacy transactions are still crossing the finish line, and some who had paused engagements are coming back to the negotiating table.

☀️WEATHER- You might want to head to the beach this weekend: Dubai will see a high of 35°C and a low of 26°C today, while Abu Dhabi will see a high of 33°C and a low of 25°C. Saturday will be more of the same, while Sunday will see it get two degrees warmer, with a high of 37°C in Dubai and 35°C in the capital.

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TOURISM — Tourism players in Ajman will be breathing a sigh of relief after the emirate said it’ll roll out a support package to give the sector a boost, state news agency Wam reports. The package includes a six-month deferral of tourism fees for tourist establishments, flexible payment options, and fine exemptions. It also provides complimentary entry for museum visitors and waives charges for exhibition participation through the end of the year.

The rationale: The statement says the move came to help boost “resilience in addressing various challenges.” It comes as the latest manifestation of government support for a sector that could lose up to USD 32 bn in revenues across the GCC because of the war.

UAE’s Economy and Tourism Ministry said a tourism-specific support package is in the works, after Dubai greenlit its own AED 1 bn support package that included deferral of hotel sales fees and tourism AED payments.

ICYMI- The UAE has been keen to try to mitigate the fallout to a sector that made up 13%, or AED 257.3 bn, of its GDP in 9M 2025. Still, the impact is already being felt, with hotel occupancy falling from 90% averages to 16% last month, and several hotels opting to shutter their doors — some temporarily and others permanently — to cut costs and focus on renovations.

DISPUTE WATCH — Al Habtoor’s Lebanon lawsuit is underway: UAE-based Al Habtoor Group formally launched judicial proceedings against Lebanon through the International Center for Settlement of Investment Disputes (ICSID) in Washington, according to a statement. The move comes after “a prolonged period of sustained and good-faith efforts by Al Habtoor Group to resolve the matter amicably,” with no results. The ICSID primarily handles disputes involving countries and foreign investors.

ICYMI- We’ve been tracking this dispute for some time. In January, Al Habtoor said it was pursuing court action against Lebanese authorities over USD 1.7 bn in losses tied to its investments. It said measures imposed by authorities and the country’s central bank — including a failure to impose a formal law on capital controls for banks — dealt “severe and sustained harm” to its assets and also blocked access to its deposited funds.

ADVISORS- White & Case LLP is representing Al Habtoor in the proceedings.

Investments are already being redirected: Last year, the group had already scrapped planned investments in Lebanon and shelved other projects. One major investment was contingent on the formation of a new “strong and independent” government, a condition the group said was unmet.

INFRASTRUCTURE — Dubai Silicon Oasis is getting a data center: A JV between Dubai Integrated Economic Zones and Dutch data center developer Volt’s UAE arm — aptly named Volt UAE — will build a 29 MW data center facility in Dubai Silicon Oasis, according to Dubai Media Office. Another 100 MW of capacity will come online later on.

Who is doing what? Volt UAE will build the facility and lead on development, financing, leasing, and operations. DIEZ is providing the land and infrastructure needs. Energy management and digital automation giant Schneider Electric is also working on the project, which will be used for advanced computing and AI deployments.

IN CONTEXT- Despite being the target of strikes in the regional war, data centers remain a major component of the UAE’s economic diversification drive — not to mention one that the Emirates has spent significant capital banking on. Several megaprojects are in the works, most notably the US-UAE 5 GW data center campus. Meanwhile, state AI firm G42 has recently signaled confidence in the sector, talking about plans to spin off its units and scale up its flagship data center platform.

DEBT WATCH — We now know who’s been buying up private GCC debt: GCC governments and state-linked entities have borrowed more than USD 10 bn from US-based investment management firm Pimco since the war began, Bloomberg reports, citing sources it says are in the know.

Who and how much? Pimco and other investors reportedly participated in a USD 2.5 bn placement of Abu Dhabi government bonds. It also bought debt sold by Qatar, Kuwait, and Qatar National Bank. Regional borrowers raised around USD 13.8 bn on private markets since the start of the war.

IN CONTEXT- Earlier this month, we reported on Abu Dhabi securing USD 4.5 bn in private debt placements as issuers looked to bypass public markets’ pricing volatility and widening spreads, analysts told us. The private debt market also saw significant activity from Emirati lenders, with the likes of First Abu Dhabi, Emirates NBD, and our friends at Mashreq tapping credit lines. Private placements, while faster in execution and offering more flexibility, carry a heftier price tag for issuers.

Discretion could be a pull, with Bloomberg Chief Emerging Markets Economist Ziad Daoud saying it’s “notable that the three Gulf nations with the strongest balance sheets are the ones tapping the market” and that public issuances normally come with higher disclosure requirements.

AVIATION — Emirates’ Tim Clark is bullish on the airline’s stability and growth despite recent headwinds: Eight weeks into the US-Iran conflict, Emirates President Tim Clark is signaling that the carrier will rebound not through tactical shifts but through the sheer weight of its brand. Despite a jolt that briefly closed Dubai’s hub and sent jet fuel prices up 103% in March, Clark’s thesis is that Emirates is a pillar of stability, even when the airspace above it is not.

Clark vs. the laggards: Clark took aim at European and US legacy carriers, saying he is not threatened by competition despite some of them seeing increased demand on routes in Asia as fliers looked to bypass the region. “They have no aircraft to be able to do, or even come anywhere near the production capability of 270 widebody aircraft in Emirates alone,” Clark said.

He backed up the airline’s current business model, saying: “I don’t think things will change how we operate the airline or this model.” This comes as the hub-and-spoke system that Gulf airlines operate is facing a stress test. Under this model, instead of flying passengers directly between cities, airlines funnel travelers from multiple “spoke” cities into a central hub before redistributing them onward. This strategy is now challenged by fliers looking to avoid the Middle East altogether, giving rise to nascent alternative routes. EnterpriseAM Mena+ has more about the challenges regional airlines might face if the ceasefire does not hold.

Data point

5.9% — that’s how much Dubai residential capital values fell m-o-m in March, marking the first monthly decline since the 2020 market trough, according to the ValuStrat Price Index (pdf). ValuStrat cited regional conflict, Ramadan and Eid seasonality, remote working, home schooling, and adverse weather as temporary drags on valuations.

To put things into context: Analysts told us earlier this month that March activity remained solid by historical standards, suggesting the market may be cooling rather than cracking. Several had already pencilled in a moderation phase for 2026, with slower price growth rather than an outright correction.

The underlying numbers tell a similar story: Even after the monthly drop, prices were still up 8.9% y-o-y. Villa values fell 5.8% m-o-m but were up 12.1% annually, while apartments dropped a steeper 6.3% on the month, with annual growth slowing to 3.9%. Citywide average values stood at AED 1.6k per sq ft, with the average home valued at AED 3.5 mn.

Transactions still skewed towards off-plan and ultra-prime: Oqood registrations (for off-plan properties) slipped 9.3% m-o-m but were up 1.5% y-o-y, accounting for 78% of all residential sales, while ready-home transactions fell 37.8% on the month and 34.2% annually. Ultra-prime demand also held up, with 21 ready-home transactions above AED 30 mn, including five above AED 50 mn.

PSA

Qatar Airways is back in UAE’s skies: Qatar Airways resumed daily services to Dubai and Sharjah yesterday — part of the carrier’s phased restoration of operations, according to a statement. The airline had suspended operations since its airspace closed at the start of the regional conflict.

Happening today

The Emirates Agriculture Conference and Exhibition is underway until Sunday at Adnec Center Al Ain in Abu Dhabi, bringing together agribusinesses, farmers, and policymakers to discuss food security, technology, and manufacturing.

The big story abroad

The international press everywhere is leading with news of the extended ceasefire between Lebanon and Israel, set to last three weeks now instead of expiring on Sunday. The extension came after Trump hosted Israeli and Lebanese officials in the Oval Office for a round of talks, a day after Israeli strikes killed at least five people including a journalist.

Meanwhile, oil prices surged to USD 106.87 following reports of Iran boarding ships in the Strait of Hormuz and that air defenses in Iran were engaging what it said were “hostile targets.”

Over in business news, Meta and Microsoft are both planning staff reductions this year. Meta is set to lay off 10% of its workforce in May, while Microsoft is offering long-serving employees voluntary retirement for the first time, with an eye to offer redundancy to 7% of its US workforce.

AND- Intel’s shares surged 19% in afterhours trading after its 2Q revenue forecast beat analyst expectations, helping extend its 81% rebound so far this year as demand for its server processors — used for AI in data centers — booms.

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