Tourism slump knocks ADNH 1Q earnings + the picture is still solid at Rakbank

Knock-on effects of tourism slump are already showing in 1Q earnings

Travel slowdown knocks Abu Dhabi National Hotels off pace: Abu Dhabi National Hotels’ (ADNH) net income dropped 31% y-o-y to AED 108 mn in 1Q 2026, while its revenue edged down 2% to AED 863 mn, according to the firm's management discussion and analysis report (pdf).

The drag came where you’d expect: Hotels — ADNH’s core business — saw revenue fall 10% y-o-y to AED 376 mn, as weaker tourism and a spike in cancellations (especially in Dubai) hit performance late in the quarter. Transport fared worse, with revenue sliding 42% to AED 44 mn and net income almost disappearing (down 97%), reflecting scaled-back taxi operations and weaker limousine demand.

Catering kept things steady, with the segment’s revenue rising 13% y-o-y to AED 464 mn, supported by acquisitions and long-term contracts that held up through the volatility. But higher input costs and supply chain pressure pushed EBITDA down 15% to AED 51 mn and cut net income by 20% to AED 31 mn.

The company is implementing “immediate cost-containment and [liquidity] preservation measures in response to regional uncertainty and declining business activity,” the report said.

REMEMBER- The war could wipe out USD 13-32 bn in GCC tourism revenues. Forecasts indicate inbound arrivals to the region could shrink by as much as 27% y-o-y this year, after the UAE clocked 8.5k holiday rental cancellations on the day the conflict erupted.

Authorities are already stepping in to cushion the blow, as we’ve previously reported. Dubai rolled out a AED 1 bn support package, including deferrals of sales fees and AED tourism payments, while Economy and Tourism Minister Abdulla Bin Touq Al Marri said earlier this month that a sector-specific support package is in the works.

Rakbank sees an all-time high net income

The picture is still solid at Rakbank, whose net income jumped 43% y-o-y to a record AED 1 bn in 1Q 2026, according to an earnings release (pdf). The bottom-line uptick was largely driven by a AED 473 mn gain on the sale of its merchant acquiring business to Network International, along with strong operating income streams, which rose 40% y-o-y to AED 1.8 bn.

Core income held up: Net interest income rose 9.2% y-o-y to AED 947 mn during the quarter, as the lender’s total assets grew 18.2% y-o-y to AED 107.3 bn. However, the real lift came from non-interest income, which more than doubled to AED 873 mn — up 102% y-o-y — largely on the back of the sale to Network International.

Rakbank delivered a message of resilience, both for the quarter and looking ahead. Group CEO Raheel Ahmed said the bank was “well positioned” and “well prepared” going into the backdrop of regional tensions, adding that it “stands firm to assist our customers in the short term and support them in firm to assist our customers in the short term and support them in their longer-term ambitions and plans.”