Oil prices fell on Thursday after gaining 3 per cent in the previous session as investors are wary higher US tariffs may be reinstated, which could cause lower fuel demand, and as major producers are expected to announce an output hike.

Brent crude futures LCOc1 fell 53 cents, or 0.77 per cent, to $68.58 a barrel by 0536 GMT. US West Texas Intermediate crude CLc1 declined 51 cents, or 0.76 per cent, to $66.94 a barrel

Both contracts rose to their highest in one week on Wednesday as Iran suspended cooperation with the U.N. nuclear watchdog, raising concerns the lingering dispute over the Middle East producer’s nuclear program may again devolve into armed conflict, and the US and Vietnam reached a preliminary trade deal.

Still, there is increasing uncertainty around US trade policy as the 90-day pause on the implementation of higher tariffs will end on July 9 without any new trade deals with several large trading partners such as the European Union and Japan.

Additionally, the Organization of the Petroleum Exporting Countries (OPEC) and its allies such as Russia, known as OPEC+ will likely agreed to raise their output by 411,000 barrels per day (bpd) at their meeting this weekend.

With the uncertainty around both events, and the upcoming July Fourth Independence Day holiday in the US, “market participants will probably not want to carry too much risk into the long US weekend,” ING analysts said in a note on Thursday.

Adding to the negative sentiment, a private-sector survey showed on Thursday service activity in China, the world’s biggest oil importer, expanded at the slowest pace in nine months in June as demand weakened and new export orders declined.

Demand concerns

A surprise build in US crude inventories also highlighted demand concerns in the world’s biggest crude consumer.

The US Energy Information Administration said on Wednesday domestic crude inventories rose by 3.8 million barrels to 419 million barrels last week. Analysts in a Reuters poll had expected a drawdown of 1.8 million barrels.

Gasoline demand on a weekly basis dropped to 8.6 million barrels per day, prompting concerns about consumption in the peak US summer driving season. EIA/S

The market will be watching the release of the key US monthly employment report on Thursday to shape expectations around the depth and timing of interest rate cuts by the Federal Reserve in the second half of this year, analysts said.

Lower interest rates could spur economic activity, which would in turn boost oil demand.

A private payrolls report on Wednesday showed a contraction for the first time in two year though analysts cautioned there is no correlation between it and the government data.

Archer Aviation has successfully completed the first test flight of its Midnight electric vertical take-off and landing (eVTOL) aircraft at Al Bateen Executive Airport in Abu Dhabi, marking a major milestone in the company’s plan to launch commercial air taxi operations in the UAE.

The flight test focused on evaluating the aircraft’s vertical take-off and landing performance under UAE-specific conditions — high temperatures, humidity, and dust exposure — as part of Archer’s preparations for regional certification and deployment.

The company said it will continue expanding its flight testing programme in the region to gather additional data to support its certification and commercialisation efforts in both the UAE and other key markets.

The flight was conducted with the support of the Smart and Autonomous Systems Council (SASC) and was attended by senior leadership from the UAE General Civil Aviation Authority (GCAA), the Abu Dhabi Investment Office (ADIO), the Integrated Transport Centre, Abu Dhabi Aviation, and Abu Dhabi Airports, as well as representatives from Archer’s regional partners.

Archer test flight marks key milestone for Abu Dhabi’s plans to drive urban air mobility

“This flight marks a significant step towards realising Abu Dhabi’s ambition to lead the world in advanced urban air mobility,” said Badr Al-Olama, director general of the Abu Dhabi Investment Office. “Through the Smart and Autonomous Vehicles Industry (SAVI) Cluster, we are enabling companies like Archer to test, certify and scale next-generation air mobility solutions, reinforcing our position as a global launchpad for innovation and a hub for transformative technologies.”

“Our initial test flight operations in the UAE represent a critical milestone as we prepare for our commercial deployment in Abu Dhabi,” said Adam Goldstein, CEO and founder of Archer Aviation. “Testing our aircraft in actual operating conditions in the middle of summer provides us with the data we need to progress our commercial and certification efforts both in the UAE and in the US.

The test flight supports Archer’s Launch Edition commercialisation programme with Abu Dhabi Aviation, which aims to establish electric air taxi services in Abu Dhabi.

The programme reflects Archer’s strategy to launch commercial operations in key early adopter markets.

The announcement follows recent progress by Archer in the UAE, including regulatory design approval for the country’s first hybrid heliport at Abu Dhabi Cruise Terminal and ongoing partnerships with leading regional operators.

Read: Archer secures approval for first hybrid heliport

Dubai Duty Free has reported record-breaking sales for the first half of 2025, with turnover reaching Dhs4.118bn ($1.128bn)—a 5.34 per cent year-on-year increase. The figure exceeds the previous first-half record by Dhs208.95m ($57.24m), reinforcing the airport retailer’s strong post-pandemic recovery.

Read-UAE: Dubai Duty Free introduces new way to shop

The robust performance was driven by a surge in travel during the Eid holidays and the early summer season, which significantly boosted passenger traffic and retail spending across the airport, a WAM report said.

“We are very pleased with our record performance for the first half of 2025,” said Ramesh Cidambi, Managing Director of Dubai Duty Free. “While we await final passenger numbers for June, the spend per passenger is likely to be better than June last year. This performance is a testament to our team’s hard work and the strength of Dubai as a global travel hub.”

Top performing categories and luxury expansion plans

Perfumes, liquor, cigarettes and tobacco, gold, and confectionery retained their positions as the top five product categories.

Perfume sales reached Dhs744.24m ($203.90m), accounting for 18 per cent of total revenue and reflecting a 5 per cent increase over the same period last year. Liquor followed closely with Dhs513.37m ($140.65m) in sales.

Sales of cigarettes and tobacco rose by 12.24 per cent year-on-year, totaling Dhs439.91m ($120.52m), while Gold sales grew by 6.14 per cent to Dhs416.90m ($114.22m), contributing just over 10 per cent to overall revenue.

Confectionery continued its strong upward trend, recording Dhs412.52m ($113.02m) in sales—a remarkable 62.70 per cent increase from the same period in 2024. Cosmetics also performed well, increasing 3.36 per cent to Dhs201.51m ($55.21m) and contributing nearly 5 per cent to total turnover.

Dubai Duty Free is preparing for further growth in the second half of 2025, with the launch of three luxury boutiques planned in Terminal 3’s Concourse A. The upcoming openings include Louis Vuitton, Chanel, and Cartier, marking a significant expansion in the retailer’s high-end offerings.

“We are looking forward to an equally busy second half of the year,” Cidambi said.

Passenger spend and terminal sales on the rise

Passenger spending across Dubai International Airport continued to grow during the first six months of 2025. Terminal 3, the largest and busiest terminal, recorded a 6.37 per cent rise in duty free sales, driven by both increased foot traffic and higher average spend per traveler. Terminal 1 also showed healthy growth, posting a 5.25 per cent sales increase over the same period last year.

Sales performance improved across all major passenger regions. European travelers led the way with a 16.89 per cent year-on-year increase in spending, followed by the Middle East with an 8.15 per cent rise. The Russian region saw a 4.41 per cent gain, while the Indian subcontinent showed steady growth of 1.02 per cent.

These trends highlight Dubai’s continued appeal as a global transit hub and signal strong consumer confidence among international travelers. Dubai Duty Free officials remain optimistic about sustained growth in the second half of the year, particularly during the upcoming peak travel months and traditionally busy final quarter.

Business Bay recorded over Dhs4.5bn in off-plan real estate sales in Q2 2025, across more than 1,900 transactions—solidifying its position as one of Dubai’s most dynamic residential and investment hubs. The figures underscore rising investor confidence in the district’s central location, upscale living, and consistent returns.

Read-Five emirates, Dh239bn: UAE real estate rockets in early 2025

This surge in off-plan activity comes amid broader momentum in Dubai’s property market, which logged a record Dhs66.8bn in total sales in May 2025. That figure spans 18,700 transactions, reflecting a 44 per cent increase in value and a 6 per cent rise in volume compared to May 2024. Business Bay played a key role in this growth, contributing 5 per cent of the city’s total sales value while accounting for just 3 per cent of transactions—highlighting the area’s premium pricing and strong appeal.

Strategic positioning and developer response

Located between Downtown Dubai and the Dubai Canal, Business Bay remains a magnet for both local and international buyers. Its mix of world-class infrastructure, five-star hotels, and easy access to Sheikh Zayed Road, Dubai Metro, DIFC, and key leisure hubs positions it as a high-performance district in the city’s real estate landscape.

In response to continued demand, developers are accelerating delivery of design-led, lifestyle-focused projects, many of which include branded residences and luxury features aimed at the next generation of Dubai residents and global investors. The neighbourhood’s consistent yields and reputation for capital appreciation continue to make it a top choice for those seeking long-term growth in the heart of the city.

As demand continues to rise, developers are responding with design-led, lifestyle-focused projects that cater to the next generation of Dubai residents and global property investors. Among the most anticipated is a luxury branded residence by QUBE Development, in collaboration with the award-winning global hospitality group The Lux Collective and its flagship brand, LUX. This project brings to life the vision of a private sanctuary that blends urban luxury with world-class service in the heart of Business Bay.

Business Bay remains one of Dubai’s most connected and dynamic districts. QUBE Development aims to raise the bar for luxury living, introducing a fresh perspective on urban sophistication and branded residence excellence at the center of the city.

RTA Completes traffic improvements in Business Bay

In another development, Dubai’s Roads and Transport Authority (RTA) has completed three key traffic enhancements in the Business Bay area. The upgrades targeted several key locations along the corridor, which links directly to Sheikh Zayed Road and Al Khail Road, aiming to improve traffic flow and road safety.

The improvements are designed to meet the needs of residents, visitors, and businesses in a district known for its mix of residential, commercial, and service facilities, a WAM report said.

The works are part of a broader initiative to modernize infrastructure and enhance the efficiency of Dubai’s road network, in line with ongoing population growth and urban development. The completed upgrades are expected to ease congestion, raise safety standards, and reduce travel times in high-density areas.

As part of the project, the street running parallel to Sheikh Zayed Road was converted from a two-lane, two-way configuration into a one-way dual carriageway, with new signage and road markings. This modification doubled the street’s capacity and significantly improved traffic flow by reducing conflict points.

In addition, a 100-metre-long storage lane was constructed at the intersection of Al Mustaqbal Street and Al Khaleej Al Tejari 1 Street. The added lane has increased right-turn capacity toward First Al Khail Street by 50 per cent, cutting down congestion and wait times while enhancing the intersection’s efficiency.

In a major move set to support the emirate’s real estate sector and residents, the Dubai Land Department (DLD) and Dubai Department of Economy and Tourism (DET) have jointly launched the First-Time Home Buyer programme, aimed at easing homeownership for Emiratis and expatriates.

The initiative offers first-time buyers priority access to new property launches, preferential pricing, and customised mortgage solutions, marking a significant step in making Dubai’s property market more accessible.

The programme aligns with key national and local frameworks, including the Dubai Economic Agenda (D33), the Dubai Real Estate Strategy 2033, and the UAE’s Year of Community.

Officials say the programme highlights the strength of public-private sector collaboration, with leading developers already on board.

First-Time Home Buyer programme: Banks and Dubai developers

Participating developers include Azizi Developments, Beyond Developments, Binghatti Holding, DAMAC Properties, Danube Properties, Dubai Properties, Ellington Properties, Emaar Properties, Majid Al Futtaim Group, Meraas, Nakheel, Palma Holding, and Wasl.

These partners will support to first-time home buyers through priority access to units in new off-plan launches, and enhanced commercial terms, including preferential pricing on units up to Dhs5m.

Participating banks include Commercial Bank of Dubai, Dubai Islamic Bank, Emirates NBD, Emirates Islamic and Mashreq bank will provide tailored mortgage products designed specifically for eligible buyers.

The programme will continue to onboard new partners post the launch to increase the choice for first time home buyers.

Created for all nationalities and income levels, the programme is open to applicants aged 18 and above who are residents of the UAE, and who do not currently own a freehold residential property in Dubai.

Helal Saeed Almarri, director general of the Dubai Department of Economy and Tourism (DET), said: “This initiative represents a powerful economic lever, stimulating long-term demand, driving liquidity into the real estate ecosystem, and accelerating the sector’s contribution to GDP in line with the Dubai Economic Agenda, D33.

“By lowering entry barriers to homeownership for Emiratis and expatriates alike, we are enhancing investor confidence, increasing market absorption rates, and reinforcing Dubai’s global positioning as a city where personal aspirations and business ambitions converge.

“In a global climate where housing accessibility is a structural challenge, Dubai is offering a model of sustainable urban development, one that supports talent retention, fosters community cohesion, and enhances the city’s competitiveness as a place to live, work, and invest.

Omar Bu Shehab, director general of Dubai Land Department (DLD), said: “The First-Time Home Buyer programme embodies Dubai’s strategic vision for a more inclusive, transparent, and accessible real estate market. By easing entry into homeownership, we empower individuals and families to invest in their futures while supporting the Dubai Real Estate Strategy 2033’s broader objectives and Dubai Economic Agenda D33.

This initiative is a key driver of market resilience and positions Dubai as a global benchmark for sustainable urban development.”

Read: Dubai launches tokenised real estate investment project via ‘Prypco Mint’