As global supply chains face renewed disruption and geopolitical tensions continue to test market stability, the Middle East’s automotive sector is holding its ground, underpinned by strong demand and deep-rooted brand loyalty. For carmakers, the region is not just weathering uncertainty, it is reinforcing its role as a core growth engine.

In this interview with Gulf Business, Thierry Sabbagh, divisional vice president and president, Middle East, Saudi Arabia, CIS and India, Nissan and INFINITI discusses how the company is navigating the current environment, why trust is emerging as a defining factor in purchase decisions, and how customer expectations around ownership are evolving.

Sabbagh also outlines the brand’s strategic priorities in the region, its response to logistical challenges, and the factors sustaining momentum for key models such as the Patrol and X-Trail.

How resilient is the Middle East automotive market? And in a period of wider global uncertainty, where does the region sit in Nissan’s strategic priorities?

The Middle East automotive market continues to demonstrate remarkable resilience, even in the face of current geopolitical and logistical pressures. While recent disruptions, particularly across key shipping routes, have created short-term complexity, these challenges are primarily logistical rather than structural. Demand fundamentals remain robust, underpinned by deep-seated customer trust. For us, this reinforces a clear reality: the Middle East is a market that consistently proves its ability to absorb shocks and emerge stronger.

For Nissan, the Middle East remains a strategically important market and a core driver of our global performance. It is a region where we have nearly 70 years of heritage and a consistent track record of results. Our presence dates back to the 1950s, with markets like Kuwait among the first to see a Patrol on their roads. We continue to work with long-standing partners across the region, including in the UAE, who have been with us for over 50 years. This enduring legacy has forged powerful brand equity, positioning the region as a primary engine of our global performance and a vital contributor to the Re:Nissan global plan. This role is further solidified by a steady pipeline of innovative products and iconic nameplates tailored specifically for our Middle Eastern customers.

As we look ahead, our focus is clear: maintain continuity, support our partners and customers, and build on our momentum through disciplined execution and product-led offensive.

In today’s market, what really drives automotive purchase decisions: price, product, or trust in the brand behind it? And are you seeing that balance shift in the current environment?

It’s no longer a choice between price, product, or trust – it’s about the ecosystem that connects them. While price would always be a factor, it is no longer the sole driver. In a region where geopolitical and logistical shifts are part of the landscape, customers have become more deliberate. They are moving away from “transactional” buying and toward brands that offer long-term stability and a seamless ownership experience.

Our strategy isn’t just about selling a car; it’s about the peace of mind that comes with a robust partner network, parts availability, and digital integration. When the environment becomes complex, “trust” becomes a very practical currency.

For us, this trust is visible in the enduring loyalty to our most iconic nameplates. When a customer chooses a Patrol, or an enthusiast goes for a NISMO or GT-R, they aren’t just buying performance – they are investing in a 70-year legacy of reliability. That heritage allows us to stay close to our communities, ensuring that we continue to support them and deliver value consistently across every product, service, and brand touchpoint. Even when decision-making cycles get longer, the intent to stay with Nissan remains stronger.

Is the traditional ownership model changing in the Middle East? To what extent are customers now expecting greater flexibility and support across the ownership journey?

Customers in the Middle East are not necessarily rethinking ownership itself, but they are certainly redefining what they need from it. Especially during periods of uncertainty, the “return on investment” is no longer measured in horsepower or price, but in reassurance. People still want to own their vehicles, but they expect that experience to be simpler, more flexible and more connected from start to finish.

This shift plays directly to our strength, as we are naturally prepared with an established omnichannel approach that seamlessly bridges the digital and physical worlds. The journey often begins with Shop@Home, which allows customers to explore and engage on their own terms before transitioning into our physical touchpoints without any friction. It’s about being present wherever the customer is, ensuring the transition between a screen and a showroom is entirely invisible.

Once on the road, we continue to build on this foundation through a connected ecosystem that transforms the vehicle into a service. Through NissanConnect and the MyNissan App, we provide real-time convenience and digital integration that keeps the customer supported at all times.

When you combine these tools with service innovations like NissanService, the value equation shifts. It ensures that ownership is no longer just about handing over a key, but about providing continuous peace of mind and reducing complexity at every stage of the journey.

Has the current regional situation impacted Nissan’s business, and how are you responding?

While no industry is entirely immune to global logistical shifts, our focus has been on navigating these complexities with agility. We are actively managing our supply chain to ensure we remain responsive to market conditions, making tactical adjustments where necessary to maintain a healthy flow of vehicles to our customers and partners.

What is most important is that our underlying performance remains exceptionally strong. In the first nine months of our 2025 fiscal year (April – December 2025), we have seen a significant positive trend, with an 8 per cent increase in overall performance compared to the same period in FY24. This momentum is driven by deep customer demand for our core lineup, specifically the X-Trail and the iconic Patrol, which continue to see robust growth.

The fact that production for high-demand models like the Patrol remains at normal levels is a testament to the strategic priority we place on this region. We view these short-term logistical challenges as manageable operational realities, rather than structural shifts. Our outlook remains firmly positive, supported by a market that continues to show a strong appetite for the Nissan brand and a clear path for sustained growth as we move forward.

Oman’s hotel sector posted record revenues of OMR297.3m ($772m) in 2025, rising more than 22 per cent from a year earlier, according to property consultancy Cavendish Maxwell.

The firm said hotels in Oman welcomed 2.4 million guests last year, up nearly 11 per cent from 2024. Average occupancy climbed 13.6 per cent to almost 57 per cent, while average room rates rose 4.7 per cent to just under OMR49 ($127).

Supply also increased, with around 900 new hotel rooms added in 2025, taking total inventory to about 36,800 rooms. A further 2,400 rooms are expected to be delivered in 2026, followed by another 900 in 2027.

“After a robust, record-breaking performance in 2025, Oman’s hospitality sector has entered this year with strong momentum,” said Khalil Al Zadjali, head of Oman at Cavendish Maxwell. He added that growth is being supported by a broader mix of international visitors, stronger domestic demand and higher occupancy levels.

Oman welcomed 1.66 million travellers during Salalah’s Khareef season

Oman’s airports handled just under 15 million passengers in 2025, up 2.8 per cent year-on-year.

Traffic peaked in August, when 1.66 million travellers visited during Salalah’s Khareef season. Muscat International Airport accounted for 13.2 million passengers, or about 88 per cent of total traffic, while Salalah International Airport saw volumes rise nearly 10 per cent to 1.7 million.

The report, which covers three- to five-star hotels, also showed employment in the sector rising 7.3 per cent to around 11,200 workers, reflecting continued expansion.

Domestic tourism played a larger role, with Omani nationals making up more than 36 per cent of hotel guests, up from 33.8 per cent a year earlier.

European visitors grew by 22 per cent to account for nearly 28 per cent of guests, followed by Asian travellers at 14.5 per cent. Other visitors came from the Gulf, wider Arab region, the Americas, Oceania and Africa.

Read: Oman govt completes acquisition of SalamAir, maintains separate airline brands

Dubai Municipality has launched a new initiative allowing people to work from public parks, as the emirate looks to reshape urban spaces to support flexible working and economic activity.

The “Work from Park” programme will introduce dedicated work environments within parks, combining office-style infrastructure with outdoor settings. The move is part of a broader strategy to position public parks as multi-functional spaces that support both leisure and productivity.

As part of the initiative, Dubai Municipality has signed cooperation agreements with Group AMANA and Letswork to develop and operate the facilities.

The first site is scheduled to open in May at Al Barsha Pond Park. It will feature modular workspaces built to sustainability standards and integrated into the park’s natural environment.

Additional locations are expected to be rolled out across the emirate throughout the year.

Work from Park concept aligns with the Dubai 2040 Parks and Greenery Strategy, among others

The initiative aligns with long-term development frameworks, including the Dubai 2040 Parks and Greenery Strategy, the Dubai Urban Plan 2040 and the Dubai Economic Agenda D33, which aim to enhance quality of life and support economic diversification.

Dubai Municipality said the project targets entrepreneurs, freelancers and small and medium-sized enterprises, as well as the wider remote working community.

Facilities will include hot desks, event spaces, podcast studios and creative production areas, accessible through Letswork’s digital platform.

Under the agreement, Group AMANA, through its DuBox unit, will deliver the physical infrastructure using off-site modular construction, a method that allows units to be built elsewhere and assembled on-site more quickly while reducing waste and environmental impact.

Letswork will oversee the activation and operation of the spaces, alongside programmes designed to support content creators, including dedicated creative work areas, training sessions and collaborative events.

Officials said the initiative will be implemented through a public-private partnership model, aimed at attracting private investment and supporting the development of a more flexible, innovation-driven urban economy.

Dubai Municipality said the move forms part of its wider efforts to enhance public spaces and adapt to changing work patterns, while maintaining parks as key recreational destinations.

US President Donald Trump said on Sunday his envoys would return to Pakistan for new talks with Iran, while threatening new attacks on Iran‘s bridges and power plants unless it accepts his terms.

Trump said the US delegation would arrive on Monday evening, a timetable that leaves just a day for talks to make progress before a two-week ceasefire ends.

“We’re offering a very fair and reasonable DEAL, and I hope they take it because, if they don’t, the United States is going to knock out every single Power Plant, and every single Bridge, in Iran,” he posted on social media. “NO MORE MR. NICE GUY!”

However, there was no immediate confirmation from Iran that it would attend any new talks. Iran‘s Tasnim news agency reported that there had been no decision taken to send a delegation while a US blockade of Iranian ports was in place.

A White House official said the US delegation would be headed by Vice President JD Vance, who led the war’s first peace talks a week ago. Trump’s envoy Steve Kushner and the president’s son-in-law Jared Kushner would also attend. Earlier, Trump had told ABC News and MS Now that Vance would not go.

Iran‘s chief negotiator, Mohammad Baqer Qalibaf, earlier said the two sides had made progress but were still far apart on nuclear issues and the Strait of Hormuz.

The vital shipping strait remained closed on Sunday, a day after Iran fired on two vessels that tried to cross.

Iran, which has blocked off the strait to ships apart from its own since the United States and Israel attacked on February 28, had announced on Friday it would reopen it. But it reversed that decision on Saturday after Trump declined to lift a US blockade of Iranian ports.

“Iran decided to fire bullets yesterday in the Strait of Hormuz — A Total Violation of our Ceasefire Agreement!” Trump wrote in Sunday morning’s post. “That wasn’t nice, was it?”

Strait of Hormuz still shut

Trump’s renewed threat to hit Iran‘s power plants and bridges fits a pattern of such warnings throughout the war, several of which preceded moves to de-escalate. He abruptly announced the ceasefire two weeks ago just hours after declaring that Iran‘s “whole civilisation will die tonight”.

Now in its eighth week, the war has created the most severe shock to global energy supplies in history, sending oil prices surging because of the de facto closure of the strait, which before the war carried one-fifth of the world’s oil shipments.

Two liquefied petroleum gas tankers were seen on ship-tracking websites moving eastbound towards the strait early on Sunday morning, but the semi-official Tasnim news agency reported that Iran‘s armed forces turned them back. Marine traffic data showed no other movements after midnight.

Friday’s announcement that the strait would reopen caused the sharpest one-day drop in oil prices in years, while stock markets hit fresh all-time highs on the expectation that the disruption would soon end. But with the strait yet to reopen, markets could face new volatility when they reopen on Monday.

Amrita Sen, founder of the Energy Aspects think tank, predicted oil prices would rise on Monday when traders returned to their desks having realised they might have been prematurely optimistic last week.

“Events over the weekend with Iran firing on merchant vessels and shutting the strait again highlight just how precarious the situation is,” she said.

Dubai’s Roads and Transport Authority (RTA) has completed a major upgrade of Hessa Street, significantly reducing travel times along one of the city’s busiest routes.

The authority on Sunday confirmed the opening of the full scope of works between Sheikh Zayed Road and Al Khail Road, covering a 4.5km stretch.

The project included widening Hessa Street to four lanes in each direction and upgrading key intersections with Sheikh Zayed Road, Al Asayel Street, First Al Khail Street, and Al Khail Road. All associated bridges have also been completed, improving traffic flow in both directions.

As a result, travel time along the corridor has been reduced from 15 minutes to just four minutes, according to the RTA.

His Excellency Mattar Al Tayer, director general and chairman of the Board of Executive Directors of the RTA, said the development supports Dubai’s ongoing infrastructure expansion to meet population growth and urban demand.

Hessa Street serves several major residential areas, including Al Sufouh 2, Al Barsha, and Jumeirah Village Circle, with the population in these districts expected to exceed 640,000 by 2030.

Capacity doubled

The upgrade has doubled the road’s capacity from 8,000 to 16,000 vehicles per hour in both directions.

Key works included a new two-lane ramp linking Sheikh Zayed Road to eastbound Hessa Street, widening of the First Al Khail Street bridge, and the construction of a parallel bridge at Al Asayel Street to increase lane capacity.

At Al Khail Road, new directional ramps and additional bridges have been added to improve traffic movement towards Sharjah and Deira.

Phase 2 under way

The RTA has also begun Phase 2 of the project, extending from Al Khail Road to Sheikh Mohammed bin Zayed Road over 3km.

This phase will include 8.8km of bridges and a 480-metre tunnel, along with upgrades to several entry and exit points.

Once complete, travel time is expected to drop from 24 minutes to five minutes, while capacity will double from 4,000 to 8,000 vehicles per hour in each direction.

The wider project will benefit around 650,000 residents across communities including Jumeirah Village Circle, Arjan, Dubai Science Park, Al Barsha South, Jumeirah Lakes Towers, and Emirates Hills.

Traffic volumes across the corridor are estimated at around 500,000 trips per day.