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UAE outlook 2026: Key sectors investors should watch

Dubai’s real estate cycle remains one of the most closely watched themes in local markets

Rajiv Pillai
Rajiv Pillai

19 December, 2025

UAE outlook 2026: Key sectors investors should watch
Farhan Badami, business development manager at eToro/Image: Supplied

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As the UAE looks ahead to 2026, the macroeconomic backdrop remains broadly supportive, underpinned by steady diversification away from oil and continued expansion across non-oil sectors. Farhan Badami, business development manager at eToro, noted that the Central Bank of the UAE expects real GDP growth of around 5.3 per cent in 2026, up from approximately 4.9 per cent in 2025, supported by momentum across both oil and non-oil activity.

Inflationary pressures remain contained. Headline inflation eased to around 0.7 per cent in mid-2025, and the central bank forecasts inflation of about 1.8 per cent in 2026, providing policymakers with room to support economic growth. With the dirham pegged to the US dollar, monetary policy continues to track the US Federal Reserve. Rate cuts implemented in late 2025 are expected to slow in early 2026, although markets are still pricing in two additional Fed cuts, which could see the UAE follow suit.

Credit growth has remained robust, with loan growth running at double-digit rates year-on-year in 2025. Banks are well capitalised and continue to report low non-performing loan ratios. Tourism, aviation and logistics remain key growth drivers, particularly in Dubai, where transport and storage are among the fastest-growing sectors. The residential real estate market has also maintained strong momentum, supported by population inflows and policy initiatives.

Sectors to watch in 2026

Banks and financials

Banks continue to form the backbone of both ADX and DFM. Institutions such as Abu Dhabi Islamic Bank and Abu Dhabi Commercial Bank have delivered solid earnings growth, supported by rising credit demand, strong capital buffers and resilient interest margins. While easing rates in 2026 may place some pressure on margins, this is expected to be offset by higher lending volumes, fee-based income and ongoing safe-haven inflows. For investors, the sector is likely to continue offering a balance of income and growth, although returns may moderate following the strong performance seen in 2025.

Real estate and property-linked stocks

Dubai’s real estate cycle remains one of the most closely watched themes in local markets. Developers and property-linked names, including Emaar, Aldar and Union Properties, continue to benefit from strong transaction activity, population growth and sustained international buyer interest. As mortgage costs gradually ease alongside lower rates, the broader ecosystem should remain supported in 2026, although elevated valuations mean execution will be increasingly important.

Read: eToro MENA chief: UAE investors back local markets

Energy and commodities

Energy and energy-linked stocks remain a key pillar for Abu Dhabi. The outlook for 2026 will depend on oil prices, OPEC+ policy decisions and global demand trends. While oil prices softened towards the end of 2025, weighing on ADX performance, demand is expected to improve, with the projected surplus narrowing and OPEC maintaining a constructive view on market fundamentals.

AI, technology and digital infrastructure

The UAE continues to position itself at the centre of the global AI and technology transformation. Presight AI has emerged as one of ADX’s standout technology names, reflecting Abu Dhabi’s push into data analytics, artificial intelligence and advanced digital infrastructure. A national innovation strategy is driving increased investment in AI, cloud computing, cybersecurity and smart city initiatives, particularly in Abu Dhabi, where generative AI applications are being rolled out across sectors such as healthcare, finance and media. This is expected to sustain capital inflows into the sector, offering investors exposure to a locally anchored growth theme tied to global trends.

IPO pipeline and capital markets

Another key theme for 2026 is the continued strength of the IPO pipeline. ADX and DFM have benefited from a steady flow of listings in recent years, including government-related entities and family-owned businesses. Further listings across sectors such as real estate, logistics, utilities and technology are expected to deepen market liquidity and broaden the investment universe.

Risks to watch

While the outlook remains constructive, risks persist. A prolonged decline in oil prices would pressure fiscal revenues, sentiment and parts of the equity market, even as non-oil diversification advances. That diversification itself carries execution risk, given the scale of investment required and its reliance on sustained innovation.

Global growth uncertainties, particularly in Europe and China, also pose risks, with any sharper slowdown likely to weigh on trade, tourism and corporate earnings. In addition, valuations in segments such as real estate and technology have risen following strong rallies, increasing sensitivity to earnings delivery in 2026.

Reasons for optimism

Despite these risks, the overall outlook for the UAE in 2026 remains positive. Growth is expected to remain solid, inflation is low and stable, and the policy environment remains supportive. The banking system is well capitalised, capital markets continue to mature, and the country remains a magnet for foreign investment and skilled talent.

For equity investors, earnings growth in banking, real estate and select energy and technology names should continue to provide support, even if returns are more measured than in recent years. The UAE’s reputation as a stable and well-regulated market, rising foreign investor participation and long-term commitment to diversification and innovation continue to strengthen the investment case as the country heads into 2026.

Weather warnings: UAE airlines, airport issue travel advisories for passengers

The National Centre of Meteorologyhas warned that weather on Dec 19 is expected to be unstable, with partly cloudy to cloudy conditions at times

Nida Sohail
Nida Sohail

18 December, 2025

Weather warnings: UAE airlines, airport issue travel advisories for passengers
Image credit: Getty Images

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The UAE aviation sector is preparing for potential disruptions as unstable weather conditions are forecast to affect large parts of the country over the next few days.

The National Centre of Meteorology (NCM) has warned that weather on December 19 is expected to be unstable, with partly cloudy to cloudy conditions at times and the formation of convective clouds over scattered areas.

The forecast indicates rainfall of varying intensity, which may be accompanied by lightning, thunder and hail over limited areas, alongside a noticeable drop in temperatures, a WAM report said.

Read more-Heavy rain, fierce winds: How Dubai Police are bracing for unstable weather

The evolving weather conditions have prompted airlines and airport authorities across the UAE and the wider Gulf region to issue advisories aimed at minimising operational impact and ensuring passenger safety during what is already a busy travel period.

flydubai flags possible operational impact at Dubai International

Low-cost carrier flydubai was among the first airlines to issue a formal travel advisory, highlighting the potential impact of adverse weather on operations at Dubai International Airport (DXB). In an update published on December 18 at 08:32am Dubai time, the airline cautioned that weather conditions over the coming days could affect both flight schedules and passenger journeys to and from the airport.

flydubai urged passengers to allow extra time for their journeys and to ensure that their contact details are up to date via the Manage Booking section of flydubai.com. The airline also encouraged customers to take advantage of online check-in options, available between 48 hours and 75 minutes before departure, as well as Home Check-in and City Check-in services available at flydubai’s Travel Shop in Sharjah.

The airline reiterated the importance of checking baggage allowances in advance and advised passengers to arrive at the airport at least four hours before departure, noting that check-in closes 60 minutes prior to flight time. flydubai also highlighted the availability of self-service kiosks in Terminal 2, allowing passengers to print baggage tags and proceed directly to dedicated bag drop desks.

Passengers were advised to regularly monitor flight status updates and airport information screens to stay informed about departure gates and boarding times.

Emirates urges early arrival amid rain and wind forecast

Full-service carrier Emirates also issued an advisory for customers departing Dubai between December 18 and December 19. In an update last revised on December 18 at 11:19am Dubai time, the airline confirmed that rainy and windy weather is expected across the UAE starting December 18 until midday on December 19, 2025.

Emirates strongly advised all customers to arrive at Dubai International Airport four hours before their scheduled departure, warning that weather conditions may affect road visibility and driving conditions. Customers were encouraged to plan additional commute time or use the Dubai Metro as an alternative transport option.

As part of its contingency planning, Emirates confirmed that customers travelling in First and Business Class with confirmed Chauffeur Drive bookings would be collected one hour earlier than originally scheduled. The airline also reminded passengers to verify their contact details through the Manage Your Booking section to ensure they receive timely updates.

Emirates concluded its advisory by wishing customers smooth and safe travels during the busy holiday season and directing them to additional check-in options designed to streamline the airport experience.

Air Arabia warns of delays across UAE routes

Sharjah-based Air Arabia issued a separate travel update, cautioning that flights to and from the UAE may experience delays over the next 24 hours due to unstable weather conditions. The airline advised passengers to check their flight status before heading to the airport to avoid inconvenience.

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Dubai Airports echoes caution as rain approaches

Dubai Airports reinforced the airline advisories through a post on its official X account, alerting passengers to expected rainy weather. The airport operator advised travellers to check flight status directly with their airlines, allow extra time to reach DXB, use the Dubai Metro where possible, and rely on smart navigation apps for real-time traffic updates.

Regional impact extends to Kuwait Airways

The impact of unstable weather is not limited to the UAE. Kuwait Airways announced on December 17 that some flights may be rescheduled from Thursday evening, December 18, until Friday evening, December 19, due to weather conditions affecting the country.

According to a Kuwait News Agency report, the airline cited unstable weather across the GCC region and adherence to passenger and aircraft safety standards as the basis for the decision.

Kuwait Airways stated that updates would be communicated using the contact information provided in passenger tickets and shared customer service contact numbers for further inquiries.

As weather conditions continue to evolve, airlines and airport authorities across the region are urging passengers to stay informed, plan ahead and remain flexible, underscoring how meteorological volatility can ripple quickly through the Gulf’s tightly interconnected aviation network.

Heavy rain, fierce winds: How Dubai Police are bracing for unstable weather

Land rescue teams are equipped with specialised 4×4 vehicles, rescue trucks, and advanced tools, including hydraulic lifting equipment and cutters

Nida Sohail
Nida Sohail

18 December, 2025

Heavy rain, fierce winds: How Dubai Police are bracing for unstable weather
Image credit: Getty Images

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Dubai Police has announced its full readiness to handle emergencies amid the upcoming period of unstable weather, deploying extensive land and marine rescue teams across the emirate.

Colonel Khalid Al Hammadi, director of the Search and Rescue Department at the General Department of Transport and Rescue, confirmed that teams are positioned at 22 strategic locations, 13 land rescue points, including Hatta, and 9 marine rescue points along Dubai’s coastline, to ensure rapid intervention, a WAM report said.

Read more-Dubai shifts government to remote work on Friday amid unstable weather

Land rescue teams are equipped with specialised 4×4 vehicles, rescue trucks, and advanced tools, including hydraulic lifting equipment, cutters, and saws. In addition, 120 cranes have been made available in collaboration with Emirates Auctions to support operations requiring heavy lifting. Marine teams remain on full alert, patrolling coastal areas and valleys around the clock with specialised rescue boats, jet skis, trained lifeguards, and professional divers capable of handling a wide range of maritime emergencies.

Colonel Al Hammadi urged the public to follow official safety instructions, provide clear information when calling 999, and remain vigilant during the unstable weather period.

Forecast predicts heavy rainfall and temperature drop

The National Centre of Meteorology (NCM) has forecasted unstable weather conditions on December 19, with partly cloudy to cloudy skies, scattered convective clouds, and rainfall of varying intensity across the country. The precipitation may be accompanied by lightning, thunder, and hail in limited areas, along with a noticeable drop in temperatures.

Winds are expected to shift from southeasterly to northwesterly, ranging from 20 to 40 km/hr, and may reach up to 60 km/hr at times.

Strong winds associated with convective clouds could cause blowing dust and sand, reducing visibility. Sea conditions are forecasted to be rough to very rough in the Arabian Gulf and rough in the Sea of Oman, particularly in areas with active convective cloud formations.

The coordinated efforts of Dubai Police and meteorological authorities underline a proactive approach to safeguarding residents and businesses. Authorities have stressed the importance of public cooperation, timely reporting of emergencies, and adherence to official updates, reinforcing Dubai’s commitment to preparedness and resilience in the face of severe weather.

Dubai shifts government to remote work on Friday amid unstable weather, urges private sector to follow

The move comes as authorities continue to monitor weather conditions across the country, with residents advised to follow official updates and take necessary precautions

Rajiv Pillai
Rajiv Pillai

18 December, 2025

Dubai shifts government to remote work on Friday amid unstable weather, urges private sector to follow
Image: Dubai Media Office

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Dubai has announced remote working for all government entities on Friday, December 19, in response to an unstable weather forecast across the UAE, with the private sector also urged to adopt the same measure where possible.

The directive was issued by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai, as a precautionary step to ensure public safety.

“The decision applies to all Dubai government employees, except for roles that require on-site presence at the workplace,” Sheikh Hamdan said in a post on X.

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Read: UAE weather update: Dubai, Sharjah Police issue safety alert; rain, winds hit emirates

The move comes as authorities continue to monitor weather conditions across the country, with residents advised to follow official updates and take necessary precautions.

UAE weather: Global Village, Hatta Winter Festival close doors temporarily

The Hatta Winter Festival will also be shut on Thursday, December 18 and Friday, December 19

Neesha Salian
Neesha Salian

18 December, 2025

UAE weather: Global Village, Hatta Winter Festival close doors temporarily
Image: Global Village

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Global Village’s management has decided to close its doors temporarily and suspend its events on Thursday, December 18, until further notice in light of the developments of the weather situation.

The management said this was done to ensure the comfort and safety of all guests of Global Village and its employees.

Read: UAE weather update: Dubai, Sharjah Police issue safety alert; rain, winds hit emirates

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Global Village, Hatta Winter Festival close doors temporarily

In addition to Global Village, the Hatta Winter Festival will also be shut on Thursday, December 18 and Friday, December 19, as a precaution, while police increase patrols and emergency preparedness in response to the unstable weather.

MoHRE issues call to private sector

Meanwhile, the Ministry of Human Resources and Emiratisation (MoHRE) called on private sector companies across all the UAE to be careful and take all the precautions at work, due to the expected weather conditions affecting the country.

The ministry also stressed the importance of safeguarding the health and safety of workers, particularly at outdoor work sites where continuing operations may be challenging, and stresses the need to ensure that occupational health and safety requirements are met during work and while commuting to and from work sites.

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It is due to the unstable weather conditions, that the Dubai Municipality has also announced the closure of beaches and public parks across the Emirate of Dubai on Thursday, December 18, and Friday, December 19, to ensure public safety.

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Dubai’s air cargo revolution: Inside the high-tech upgrade at DXB

From a single high-tech command centre, Dubai Police officers can now remotely monitor six X-ray screening machines across dnata’s warehouse

Gulf Business
Gulf Business

18 December, 2025

Dubai’s air cargo revolution: Inside the high-tech upgrade at DXB
Image credit: WAM/Website

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dnata, a leading global air and travel services provider, has launched a new centralised screening control room at its Dubai International Airport (DXB) cargo facility, developed in partnership with Dubai Police. The initiative represents a major leap in the digital transformation of air cargo operations, combining real-time automation with enhanced security oversight, a WAM report said.

Read more-Dubai’s winter travel surge: New Routes, schedules that passengers must know about

From a single high-tech command centre, Dubai Police officers can now remotely operate and monitor six X-ray screening machines across dnata’s warehouse. Each device integrates with One Cargo, dnata’s digital cargo management system, automating key business and operational functions. The platform enables instant data sharing, streamlined workflows, and faster decision-making.

“Through close collaboration with Dubai Police, we’ve introduced a model that strengthens security, boosts efficiency, and reflects Dubai’s commitment to innovation,” said Guillaume Crozier, dnata’s chief cargo officer.

Centralisation drives efficiency

Previously, cargo screening occurred across multiple warehouse locations, leading to higher resource use and reduced efficiency. The new centralised approach consolidates processes into a single hub, reducing screening time and improving throughput by around 3 per cent annually.

dnata, which serves more than 120 airline customers, manages an average of 60,000 tonnes of cargo each month at DXB. Earlier this year, the company processed over 1 million tonnes of cargo between April 2024 and March 2025, the highest annual volume across its DXB and DWC operations, representing roughly 30 per cent year-on-year growth.

Automation and analytics reduce costs and carbon footprint

The system minimises manual touch points, enables advanced analytics, and optimises resource use, cutting unnecessary cargo movement and reducing fuel consumption inside the facility. The control room was jointly designed by dnata and Dubai Police to handle both primary and secondary command functions. It features advanced monitoring interfaces, live imaging, and automated reporting tools, ensuring traceability at every stage of the screening process.

“Dubai’s success as a global hub comes from a shared commitment between public and private partners,” added Crozier. “This collaboration with Dubai Police reflects that spirit, leveraging technology and trust to create a strong cargo ecosystem that keeps the city’s trade moving efficiently.”

Looking ahead: robotics and smart cargo solutions

The control room is part of dnata’s broader initiative to reimagine cargo operations through data, automation, and design thinking. Across its Dubai facilities, the company is exploring autonomous mobile robots (AMRs) to move shipments safely and efficiently across warehouse floors, reducing forklift traffic and improving space utilisation.

Additionally, dnata is testing automated dimensioning and load-optimisation tools that capture the exact size and weight of shipments. This technology maximises space inside Unit Load Devices (ULDs), cuts waste, and allows for precise, data-driven cargo flows.

“Behind every piece of technology we adopt are the people who make it work,” Crozier said. “Our teams on the ground are the driving force behind this transformation, using new tools to move cargo more securely and intelligently than ever before.”

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