Manal Albarakati

Gulf hotels, including those on Dubai's Palm Jumeirah, are offering steep discounts and incentives to attract local residents during a low-occupancy summer season. Prices have dropped significantly, with some nights as low as 349 dirhams, and the government has introduced perks like 3,000 dirhams in visitor incentives and suspended hotel taxes to support the sector.

Private-sector hiring in the UAE fell 4% in Q2, the first decline in over four years, driven by economic uncertainty linked to the Iran war. Companies in the Gulf region, including the UAE, Bahrain, Kuwait, and Qatar, reduced hiring activity, with a quarter of firms planning job cuts as conflict persists.

Saudi Arabia's first ultra-luxury train, Dream of the Desert, will launch at year-end with cabins priced at $8,000 per night. It offers a two-day non-stop desert trip from Riyadh and three-day tours to AlUla, Jubbah, and Qassim with themed activities.

Trade between Oman and the UAE increased by 13% to nearly $3.8 billion in Q1, driven by Iran's closure of the Strait of Hormuz and a shift to land routes. Oman also saw a near tripling of trade with Saudi Arabia to $830 million in March and a surge in customs declarations on Dubai’s 'green corridor' with Oman. The sultanate is investing in infrastructure, including a $2.5 billion rail line to the UAE and a $1 billion economic zone on the Saudi border.

The Iran war has severely damaged Gulf tourism, with airlines and hotels struggling to recover. Flight operators like Etihad and Emirates are nearing prewar capacity, but rising fuel costs and lost transfer traffic threaten profits. Hotels in Qatar and Dubai face high vacancy rates, prompting discounted rates and staycations.

The US government approved a $2 billion Kuwaiti order for counter-drone systems following an Iranian strike that hit Kuwait International Airport, killing one and injuring 63. Kuwait's existing defenses, including Patriot missile batteries, struggle to intercept drones due to their low-altitude and unpredictable trajectories, prompting concerns about integrating radar, sensors, and command systems to respond effectively.

Saudi Arabia's Royal Commission for Makkah City and Holy Sites awarded 13.3 billion riyals ($3.5 billion) in contracts for Mecca expansion projects, including residential, commercial, and hospitality developments. The initiative aims to triple Hajj and Umrah visitor numbers to over 30 million annually by 2030. A 6 billion riyal contract was awarded to a consortium of three local developers for sites adjacent to the Masar mixed-use project.