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Dubai office renewals rise despite slowdown in new contracts: JLL

Office rental contract registrations declined 6 per cent year-on-year in Abu Dhabi and 7.7 per cent in Dubai

Rajiv Pillai
Rajiv Pillai

27 May, 2026

Dubai office renewals rise despite slowdown in new contracts: JLL
Image: Getty Images/Image for illustrative purpose

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Article Summary
JLL reports UAE office and retail sectors showed resilience in Q1 2026. Office rentals increased, driven by high demand and tight supply, with a "flight to quality". Retail performance was mixed, with domestic formats proving robust. Despite cautious occupier activity, renewals increased in Dubai. Flexible leasing structures and evolving retail concepts are becoming prevalent.

JLL has reported resilient performance across the UAE’s office and retail real estate sectors during the first quarter of 2026, with strong market fundamentals helping cushion the impact of broader regional uncertainties.

According to JLL’s latest Real Estate Market Dynamics report, both Dubai and Abu Dhabi continued to see sustained growth across prime office and retail segments, supported by tight supply conditions, occupier demand and adaptive landlord strategies.

The report highlighted a continued “flight to quality” trend within the office market, while the retail sector delivered mixed performance, with domestically focused retail formats remaining resilient as tourism-dependent categories faced softer conditions.

Taimur Khan, head of research, MEA, JLL, said: “With strong underlying economic fundamentals and agile occupier and landlord strategies, the UAE’s office and retail sectors demonstrated remarkable resilience and a strong capacity for strategic adaptation as they navigated measured activity in the first quarter. Despite short-term adjustments, demand remains robust, signalling the market’s inherent strength and positioning it for sustained growth as demand for prime spaces accelerates amid tightening supply.”

The UAE office sector continued to record strong rental growth, with both Dubai and Abu Dhabi posting double-digit annual increases amid constrained vacancy levels.

In Abu Dhabi, prime office rents rose 11.7 per cent year-on-year, while Grade A and Grade B office spaces increased by 5.1 per cent and 4.2 per cent respectively.

Dubai’s office market also saw strong rental appreciation, particularly within Grade B assets, as occupiers increasingly turned to secondary office space due to limited availability in prime business districts. Grade B office rents climbed 23.4 per cent year-on-year, followed by Grade A at 19 per cent and Prime office space at 17.2 per cent.

Office inventory in Dubai reached 101.1 million square feet during the quarter, while Abu Dhabi’s total office stock expanded to 4.18 million square metres.

Vacancy levels remained exceptionally tight in Abu Dhabi, where citywide office vacancy stood at 1.4 per cent and prime vacancy fell to just 0.1 per cent.

In Dubai, vacancy rates edged slightly higher following new building completions, with citywide vacancy reaching 7.3 per cent and prime vacancy rising marginally to 0.7 per cent.

Despite strong fundamentals, heightened occupier caution impacted transaction activity during the quarter. Office rental contract registrations declined 6 per cent year-on-year in Abu Dhabi and 7.7 per cent in Dubai.

Monthly new office contracts also fell sharply, declining 19.7 per cent in Abu Dhabi and 20.6 per cent in Dubai during March compared to February 2026.

However, Dubai recorded an 11.2 per cent increase in office lease renewals on an annual basis, which JLL said reflected continued occupier confidence despite more cautious expansion activity.

The report noted that global supply chain pressures continue to impact development activity, although developers are responding through strategic sourcing initiatives, phased procurement planning and contractor negotiations.

JLL said transaction momentum is expected to strengthen in the coming quarters as demand for prime office space continues to outpace available supply.

Within the retail sector, Dubai’s existing retail inventory stood at 56 million square feet, while citywide vacancy tightened to 4.8 per cent, reflecting continued occupier demand.

Abu Dhabi’s retail market maintained a stable vacancy rate of 8.9 per cent during the quarter.

The report highlighted the role of government support initiatives, including the Dhs1bn stimulus package, alongside landlord flexibility on lease structures such as turnover-rent models and short-term rent relief in helping stabilise the sector.

Retail rental rates also remained resilient across both markets.

Super-regional malls in Dubai recorded annual rental growth of 12.4 per cent, while prime super-regional retail assets posted more moderate growth of 1.7 per cent.

In Abu Dhabi, prime super-regional malls maintained premium rental positioning at AED5,524 per square metre, supported by selective tenant demand.

Retail leasing activity in Dubai moderated during the quarter, with new rental contracts declining 9.9 per cent year-on-year.

Abu Dhabi, however, recorded stronger leasing activity, with total registrations rising 3.6 per cent year-on-year and new contracts increasing 16.7 per cent.

JLL noted that lease negotiations are increasingly focusing on more flexible commercial structures, including occupancy-cost-ratio (OCR) and turnover-rent (TOR) models.

The report added that retailers are increasingly exploring new revenue opportunities through pop-up destinations, experiential concepts and offerings targeting domestic consumers.

According to JLL, community and neighbourhood retail centres are expected to remain resilient, while experiential retail, home-grown brands and wellness-focused concepts are likely to see stronger demand as consumer preferences continue evolving.

Dubai’s 3-Day Super Sale returns: Participating malls and brands revealed

Timed to coincide with the Eid Al Adha holiday period, the five-day retail campaign is expected to transform malls and shopping destinations

Nida Sohail
Nida Sohail

26 May, 2026

Dubai’s 3-Day Super Sale returns: Participating malls and brands revealed

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Dubai is gearing up for one of its most anticipated shopping events of the year as the 3-Day Super Sale (3DSS) returns from May 27 to 31, promising discounts of up to 90 per cent across more than 500 brands and thousands of retail outlets throughout the city and online.

Timed to coincide with the Eid Al Adha holiday period, the five-day retail campaign is expected to transform malls and shopping destinations across Dubai into bustling hubs for shoppers looking to secure major bargains on fashion, electronics, beauty, homeware, accessories, watches, jewellery, and lifestyle products.

Organised by Dubai Festivals and Retail Establishment (DFRE), part of the Dubai Department of Economy and Tourism (DET), the citywide initiative brings together some of the world’s leading retail names under one campaign designed to boost shopping activity while offering residents and tourists compelling savings opportunities.

Officials said the event combines limited-time discounts, loyalty rewards, entertainment experiences, and exclusive promotions, reinforcing Dubai’s position as one of the region’s leading retail and lifestyle destinations.

Hundreds of global brands join the retail campaign

This year’s edition of 3DSS will feature participation from a wide range of internationally recognised brands and retailers, including Balenciaga, Damas, Sephora, Gap, Magrabi, Next, Pan Home, Pandora, Sacoor Brothers, Toys R Us, Ulta Beauty, Zen Diamond, Virgin Megastore, Mango, Lululemon, Home R Us, Geox, Borders, Wilson, Harman House, and several others.

The campaign will extend across many of Dubai’s most visited malls and retail centres, including Bluewaters, BurJuman, City Centre Deira, City Centre Me’aisem, City Centre Mirdif, City Walk, Dubai Festival City Mall, Festival Plaza, Ibn Battuta Mall, Mall of the Emirates, Mercato, Nad Al Sheba Mall, The Beach, JBR, The Outlet Village, Palm Jumeirah Mall, and WAFI.

Retailers participating in the sale are expected to offer limited-time promotions and exclusive in-store and online deals throughout the campaign period.

According to organisers, the event is designed to create a citywide shopping atmosphere while driving footfall across key commercial and tourism destinations during the holiday weekend.

Loyalty programmes to unlock additional rewards

In addition to major discounts, shoppers will also have access to enhanced benefits through several leading loyalty programmes operating across participating outlets.

Customers shopping during the campaign can earn cashback, points, discounts, and airline miles through programmes including BLUE Rewards, SHARE, Amber, Tickit, AURA, Privilege Plus, MUSE, Shukran, Club Apparel, and Skywards Everyday.

Officials said these programmes are expected to provide shoppers with added value beyond standard discounts, encouraging repeat visits and increased spending throughout the sale period.

“With only a few days to shop, the campaign offers residents and visitors a valuable opportunity to maximise savings across hundreds of brands and categories,” organisers said in a statement.

Shoppers also get chance to win a home in Dubai

One of the campaign’s standout attractions this year is the “Win Your Home in Dubai” initiative, jointly led by DFRE and Dubai Chambers.

Under the promotion, shoppers who spend Dhs500 at participating outlets during the 3DSS campaign will be entered into a draw to win one of 12 residential units supplied by Binghatti Developers. Every additional Dhs500 spent gives shoppers another entry into the draw.

The initiative is being positioned as one of the city’s most ambitious retail reward campaigns to date, combining shopping incentives with the possibility of securing property ownership in Dubai.

Officials said the initiative aims to further enhance the city’s retail appeal while rewarding consumer participation during one of Dubai’s busiest shopping periods.

PACSUN to make UAE debut during the sale

Adding further momentum to the event, the UAE’s first-ever PACSUN store is set to officially open at Mall of the Emirates on 27 May.

The launch marks the brand’s debut not only in the UAE but also outside the United States market, making it a notable retail milestone during this year’s 3DSS campaign.

Retail analysts say the timing of the launch is expected to attract significant interest from fashion shoppers and younger consumers seeking international brands entering the regional market.

Entertainment and dining experiences add to festive atmosphere

Beyond shopping, Dubai will also host a packed calendar of entertainment and lifestyle experiences during the same period.

Visitors and residents can expect live performances, concerts, cultural activities, staycation offers, and citywide events taking place alongside the Dubai Esports and Games Festival and Dubai Restaurant Week.

Officials said the broader programme of activities is intended to create a vibrant holiday atmosphere across the emirate while supporting tourism, hospitality, and retail sectors simultaneously.

With thousands of deals available for a limited period, organisers say this year’s 3-Day Super Sale is expected to draw strong turnout from both residents and international visitors looking to make the most of the Eid holiday weekend.

3-Day Super Sale is supported by key partner Commercial Bank of Dubai (CBD)

Why the micro, small and informal segment is the most underbuilt opportunity in UAE banking

SMEs already account for 94 per cent of businesses, 86 per cent of private employment and over 63.5 per cent of non-oil GDP

Kapil Chadda
Kapil Chadda

26 May, 2026

Why the micro, small and informal segment is the most underbuilt opportunity in UAE banking
Image: Getty Images/ For illustrative purposes

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Article Summary
The UAE banking system, despite its liquidity, underserves micro and small businesses crucial for the country's SME growth target. The problem isn't capital, but a lack of usable data due to outdated underwriting models.

The UAE has one of the most liquid banking systems in the region, yet one of the least served micro and small business segments.

The country’s ambition to reach one million SMEs by 2030 will be driven largely by micro and small firms. SMEs already account for 94 per cent of businesses, 86 per cent of private employment and over 63.5 per cent of non-oil GDP. Yet CBUAE data from January 2026 shows funded SME lending of Dhs92.0bn against Dhs2.6tn of gross bank credit, around 3.5 per cent, with micro and small firms capturing only a fraction. A CBUAE MSME survey found 90 per cent of micro enterprises are financially constrained.

This is not a capital problem. It is a data problem. Left unaddressed, the gap will widen under pressure. Market leadership in this segment will not be won in stability, but in volatility. The question is not whether banks will move, but which will move fast enough.

Since early 2026, regional instability has begun to test the resilience of micro and small enterprises. With limited buffers, these businesses are highly exposed to even short-term disruptions in cash flow, inventory cycles and customer demand. At the same time, regulatory support measures are creating a narrow window for banks to experiment, using flexibility to pilot new models, build relationships and become the partner of choice while businesses are actively reassessing who they trust. The crisis has not changed the thesis. It has compressed the timeline.

The system is not short of capital; it is short of usable data

The UAE banking system is liquid; funding is not the constraint. The issue is an outdated underwriting model that does not differentiate MSMEs from corporates.

Most micro and small firms lack audited financials or traditional scorecard inputs, but they are not data-poor. They generate payroll data (WPS), payment histories (POS), VAT trails and rich digital account behaviour. Open Finance will further deepen this pool.

The problem is not missing information. It is that banks are still underwriting against the wrong signals.

This shift is already visible. Wio has demonstrated a scalable digital-first model. Mashreq and RAKBANK are moving credit closer to merchant flows. POS-linked lending, cash-flow-based limits and embedded offers are becoming the core of MSME banking, not add-ons.

The next decade will favour institutions closest to transaction data and fastest at learning from it, not those with the largest balance sheets. In this segment, owning the data layer is becoming more important than owning the branch network.

Competition is heating up

Banks are not competing with fintechs; they are competing with informal finance

MSME competition is often framed as banks versus fintechs. In reality, the benchmark is informal finance, such as family and community lending.

These channels win on speed, trust and flexibility, particularly in times of stress. Decisions are fast, terms are adaptive, and relationships are embedded. Formal offerings that rely on slow, application-based processes are not competing with this reality; they are competing with a version of the market that no longer exists.

Where banks choose to start will matter more than how quickly they try to scale. The MSME segment is not homogeneous, and early choices will define long-term advantage. The first wave should not be driven by sector size alone, but by where banks can underwrite responsibly, serve efficiently and build a defensible data edge. Winning in this space demands a disciplined approach to selecting target segments, sequencing and designing the right service model. This enables the development of a winning proposition and earns the right to expand across the full SME spectrum.

What matters is not coverage, but sequencing, prioritising segments with strong transaction data, manageable AML/KYC complexity, clear cash-flow visibility and viable collection routes. Banks that get the entry point right will earn the right to expand. Those that do will not be able to scale efficiently.

The model that will matter is not a redesigned MSME desk, but a fundamentally different proposition: a digital business account combined with workflow tools that solve daily needs, invoicing, VAT, expenses, payroll, and use that data to generate fast, relevant credit offers. It must deliver both conventional and Islamic structures with the same speed and simplicity, and connect seamlessly to guarantees, government programmes and partners without adding friction. Most importantly, credit should not feel like a separate product. It should feel embedded.

The next 500,000 UAE businesses will be mostly micro and small. They will not wait for banks to modernise. They will choose whoever meets their need for speed, trust and flexible working capital, especially in times of uncertainty. The direction is clear. The only question is who moves first, and who is left reacting. Banks that act now will not just gain share. They will define MSME banking in the decade ahead.

Kapil Chadda is a partner in the Financial Services practice at Arthur D. Little Middle East.

Read: Secure.com’s Uzair Gadit on why hackers are targeting SMEs this Eid

Al Masaood Automobiles offers up to three years of free fuel on select Nissan models

The campaign is available across Nissan showrooms operated by Al Masaood Automobiles in Abu Dhabi, Al Ain and Al Dhafra

Neesha Salian
Neesha Salian

26 May, 2026

Al Masaood Automobiles offers up to three years of free fuel on select Nissan models
Image: Supplied

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Al Masaood Automobiles (Nissan's distributor in Abu Dhabi) is offering up to three years of free fuel on select models (Magnite, X-Terra, X-Trail, Altima, Pathfinder) this summer. Starting prices range from Dhs799. The promotion includes a five-year warranty and roadside assistance, aiming to reduce running costs and enhance long-term ownership value for customers.

Al Masaood Automobiles, the authorised distributor of Nissan vehicles in Abu Dhabi, Al Ain and Al Dhafra, has launched a summer campaign offering customers up to three years of free fuel on select models, as automakers in the UAE step up incentives to support demand during the seasonal travel period.

The limited-time offer covers five Nissan models, including the Magnite, X-Terra, X-Trail, Altima and Pathfinder, which are positioned across the compact, mid-size and full-size SUV segments as well as the sedan category.

Monthly pricing for the models starts at Dhs799 for the Magnite, 1,717 dirhams for the X-Terra, Dhs1,890 for the X-Trail, Dhs1,950 for the Altima and Dhs2,550 for the Pathfinder, the company said.

The fuel offer is intended to offset running costs for customers over the ownership period, as buyers place increasing emphasis on total cost of ownership rather than upfront purchase price, particularly in a market where fuel remains a recurring expense.

Other benefits

All eligible models come with a five-year warranty and roadside assistance, the company said, as manufacturers continue to compete on aftersales packages and long-term ownership value in the region’s automotive market.

“Fuel is a real and recurring cost, and this offer is our way of easing that burden for customers,” said Bachir Gemayel, sales and marketing director at Al Masaood Automobiles.

He said the company aims to provide “practical value” to customers during the summer period, when mobility needs typically increase.

The campaign is available across Nissan showrooms operated by Al Masaood Automobiles in Abu Dhabi, Al Ain and Al Dhafra.

Read: Nissan’s Thierry Sabbagh on Middle East’s resilience and shifting dynamics of car ownership

US forces hit Iranian missile launch sites in ‘self-defence’

American forces struck missile launch sites near Bandar Abbas and sank two Iranian boats allegedly laying mines in Gulf waters

Gareth van Zyl
Gareth van Zyl

26 May, 2026

US forces hit Iranian missile launch sites in ‘self-defence’

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Article Summary
US forces executed self-defence strikes on Iranian missile sites and naval vessels laying mines in southern Iran. These actions coincide with high-stakes talks in Doha aimed at ending the conflict, despite escalating regional tensions. Trump demands Iran’s enriched uranium be surrendered or dismantled. The outcome significantly impacts global energy markets.

US forces launched strikes on missile sites in southern Iran and targeted boats attempting to lay naval mines on Monday, even as senior Iranian negotiators arrived in Doha for high-stakes talks aimed at ending the conflict.

According to a statement from US Central Command, the attacks were carried out as “self-defence strikes” to protect American troops from what it described as direct threats posed by Iranian forces.

“US forces conducted self-defence strikes in southern Iran today to protect our troops from threats posed by Iranian forces,” said Tim Hawkins, a spokesperson for US Central Command.

The statement provided limited operational details, saying only that the targets included missile launch sites and vessels attempting to “emplace mines”.

The latest strikes come amid a ceasefire that has been in place since April 8, as Washington and Tehran continue efforts to negotiate an end to a war that has disrupted global energy markets and rattled the wider economy.

The Doha talks come at a critical moment for both sides, with hopes of a broader accord having already been complicated by escalating tensions elsewhere in the region.

Israeli Prime Minister Benjamin Netanyahu recently vowed to “crush” Iran-backed Hezbollah in Lebanon, adding another layer of complexity to negotiations. Tehran has insisted that any peace agreement must also address hostilities involving Hezbollah.

US President Donald Trump added further pressure to the talks on Monday, saying Iran’s enriched uranium stockpile must either be handed over to the US for destruction or dismantled under international supervision.

In a post on social media, Trump said the material should either be “immediately turned over to the United States to be brought home and destroyed” or eliminated in coordination with Iran under international oversight.

Trump also said it should be mandatory for regional powers to join the Abraham Accords as part of any final peace settlement with Iran.

The negotiations in Doha are being closely watched by global markets, with any breakthrough expected to have significant implications for oil prices and regional stability.

Tether to launch Georgian lari stablecoin

The stablecoin will be called ‘GEL₮’

Reuters
Reuters

26 May, 2026

Tether to launch Georgian lari stablecoin
Image: Getty Images/Image for illustrative purpose

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Article Summary
Tether plans to launch GEL₮, a stablecoin pegged to the Georgian Lari, with government support. This initiative marks a significant step in digitising a national currency. Stablecoins, like GEL₮, are cryptocurrencies linked to fiat currencies, primarily used in crypto trading and experiencing rapid growth.

Tether, the issuer of the world’s largest stablecoin, said on Monday it plans to launch a stablecoin representing the Georgian Lari, with the support of the government of Georgia, making it one of the first joint efforts to place a national currency on digital asset rails.

The stablecoin will be called ‘GEL₮’, Tether said.

Stablecoins are a type of cryptocurrency pegged to a fiat currency. They are mostly used in crypto trading, and have surged in size in recent years.

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