UAE-based carriers Emirates and Etihad Airways have resumed limited operations as airlines seek to ease some congestion caused by airspace closures enforced by ongoing Iranian attacks. 

Dubai-based Emirates said it will resume a limited number of flights from the evening of March 2, prioritizing customers with earlier bookings. Etihad resumed flights from Monday, March 2, according to the airline’s website and Flightradar24 data. 

Emirates had said that all flights to and from Dubai remain suspended until 3pm local time on March 3, while Etihad Airways temporarily ceased operations until 2pm local time Tuesday.

Qatar Airways has also suspended operations due to closure of Qatari airspace, with a further update expected by 9am Doha time on March 4. 

Oman Air has announced that all flights to and from Amman, Dubai, Bahrain, Doha, Damman, Kuwait, Copenhagen, Baghdad and Khasab between March 4 to 6 have been cancelled. Barring the aforementioned flights, all other flights will operate as scheduled, though the carrier did warn of some possible delays. 

Airspace closures by GCC countries amid ongoing Iranian attacks were the most severe in recent times, leaving tens of thousands of travellers stranded in places such as Dubai and Doha.

Iran’s attack on Gulf countries has entered its third day, making flying a precarious pursuit, compounded further by the fog of war which has led to the inadvertent downing of US fighter jets in Kuwait. 

The UAE’s Civil Aviation Authority said that more than 20,000 affected passengers were supported through temporary accommodation arrangements and rebooking services. Dubai Airports, the authority that manages Dubai International (DXB) and Dubai World Central (DWC), confirmed that limited operations will resume Monday, permitting a select number of flights to operate from both facilities. 

Flight cancellations across seven Middle Eastern airports, including Dubai's DXB and DWC, Abu Dhabi's Zayed International Airport, Doha's Hamad International Airport, Bahrain International Airport, Sharjah International Airport and Kuwait International Airport, have now exceeded 12,300 flights, according to Flightradar24. 

More than 100,000 Britons have registered their presence in the Middle East with the UK government, part of around 300,000 people who are present across Gulf countries, including residents, holidaymakers and those transiting through.  

Aviation infrastructure across the Gulf region has come under siege with Iranian missiles and drones attacking critical architecture. DXB’s concourse took a minor hit with four people sustaining injuries. A drone attack struck Kuwait International Airport, leaving multiple people with minor injuries and causing damage to Terminal 1.

In an interview with CNN, the Qatari foreign ministry ‌spokesperson has said that country intercepted Iranian attacks that targeted ⁠civilian infrastructure, ⁠including the international airport. 

Airlines around the world, from the UK and France to North America and Asia have axed flights to the Middle East amid mounting regional tensions.

Lufthansa suspended flights to Dubai until March 4 and to other cities including Tel Aviv, Beirut, Tehran and Amman until March 8. British Airways halted flights to the Gulf, Israel and Jordan through mid-March while North American carriers, including Delta and United, have all paused Middle East operations. Air Canada has suspended all flights to and from Dubai and Tel Aviv until March 23.

Stock markets across the Gulf region opened to a jittery start on Sunday in first signs that the Iran-US conflict has impacted regional financial markets. 

Saudi’s Tadawul All Share Index (TASI) plunged roughly 4.8% at the open on Sunday, hitting a 35-month low before paring more than half of its loss, closing 2.18% lower. 

The benchmark index of Muscat Exchange fell 103.18 points from its previous day's close of 7393.37, amid a regional sell-off triggered by mounting tensions. 

Boursa Kuwait suspended trading on Sunday, citing exceptional circumstances. 

“Based on the decision of the Board of Commissioners of the Capital Markets Authority, and due to the exceptional circumstances, the country is currently experiencing Boursa Kuwait announces the suspension of trading effective 01-03-2026, until further notice,” a notice on Boursa Kuwait’s website read. 

The UAE’s financial regulatory authority also announced the closure of both its bourses - Abu Dhabi Securities Exchange and Dubai Financial Market – on March 2 and 3. The country has faced a barrage of drone and missile attacks over the weekend. 

The UAE Capital Markets Authority said that it would continue to assess the situation on an ongoing basis, taking any further measures as necessary.

Brent crude prices surged from Friday's close of $72.48 a barrel to $78.36 a barrel on Sunday, with the overall price having risen 16% over the past month. 

Felipe Elink Schuurman, CEO and co-founder at Sparta Commodities said that a softer oil price hike than the one anticipated over the weekend indicates a mere logistical disruption, not a supply one. 

“It is indeed surprising that most polls over the weekend were expecting a rise in flat price of $80 to $90 (a barrel]. It started off [Monday] morning at $81 but then it came down,” Schuurman said during a Gulf Intelligence podcast,. 

“For the time being, there is a sort of de facto closure of the Strait of Hormuz, mostly because of insurance companies putting in barriers or increasing their insurance coverage or trading companies not willing to take their vehicles through the Strait. So, it basically means that it is a logistical disruption but we have not yet seen any kind of supply disruption.” 

The Strait of Hormuz, one of the world’s most strategically vital chokepoints, is a narrow waterway that connects the Persian Gulf and the Gulf of Oman to the Indian Ocean for maritime traffic. Roughly 30 miles wide at its narrowest point, oil tankers carry approximately 20 million barrels of oil each day through the Strait.

“Oil markets have been the most visible expression of markets pricing in geopolitical conditions with Brent opening 12.5% higher,” wrote Edward Bell, acting group head of research and chief economist at Emirates NBD.

“Markets have since pared those moves as there is a renewed focus on diplomatic avenues but in the meantime, oil will be highly subject to headlines and in particular, the status of the Strait of Hormuz.”

Saudi Arabia’s budget deficit in the fourth quarter grew to its highest in five years, as reduced oil prices continue to weigh on state revenues. 

The kingdom's fourth quarter budget deficit rose to $25.3 billion (94.9 billion Saudi riyals) from $23.6 billion (88.5 billion Saudi riyals) recorded during the previous quarter and $15.3 billion (57.6 billion Saudi riyals) posted in the fourth quarter of 2024. 

The budget deficit brought the year’s total shortfall to $73.6 billion (276 billion Saudi riyals), which Riyadh has entirely funded through borrowing.  

Fourth quarter revenues slid to $41 billion (154 billion Saudi riyals) from $45.6 billion (171 billion Saudi riyals) recorded during a year-earlier period.

Oil and non-oil revenues rose over the previous quarter but dipped on an annual basis. Oil revenues slid 10% year-on-year to $41.1 billion (154.2 billion riyals) in the fourth quarter of 2025, alongside non-oil revenues which fell 7% to $32.7 billion (122.6 billion Saudi riyals).

Expenditures rose a nominal 3% over the previous year, with compensation to employees constituting up two-fifth, according to data shared by the Ministry of Finance.

“With oil prices well below the estimated fiscal breakeven level, Saudi Arabia has ramped up borrowing in international debt markets and diversified its funding sources, while also reassessing the pace and scale of major Vision 2030 projects to prioritize efficiency and private sector participation,” the MUFG report read.  

“While officials expect the deficit narrow to 3.3% of GDP this year, investors anticipate it will remain higher, reflecting persistent spending pressures and a challenging oil revenue environment.”  

The kingdom has been running budget deficits since 2022, as reduced oil revenues strain public finances. Brent crude, which serves as a benchmark for roughly two-thirds of the world's crude oil supplies, is hovering around $71 per against the backdrop of a substantial American military buildup in the Middle East. 

Saudi Arabia needs oil to be north of $92 per barrel this year and at $86.6 per barrel in 2026 to balance its books, according to the IMF. 
 

The third edition of the Makkah Halal Forum concluded with the signing of 15 cooperation agreements aimed at strengthening international collaboration, harmonising halal standards, and improving product quality and certification systems across the global halal industry.

Held at the Makkah Chamber of Commerce and Industry Exhibition and Events Center, the three-day forum brought together government representatives, industry leaders and experts to discuss regulatory alignment, trade development and investment opportunities within the halal economy.

Organisers said the event reflected a shift toward a more outcomes-focused platform, moving beyond dialogue to support practical initiatives designed to enhance economic integration and reinforce trust in halal certification frameworks.

The forum attracted thousands of participants and featured 170 exhibitors from 15 countries showcasing products, services and innovations spanning the halal value chain, including food, logistics, certification, technology and related sectors.

In its closing recommendations, participants emphasised the importance of developing the halal sector as an integrated global system that combines ethical standards with economic growth. Key priorities included strengthening transparency, promoting standardisation, encouraging knowledge exchange, and supporting sustainable industry development.

The recommendations align with Saudi Arabia’s Vision 2030 objectives, which include expanding the Kingdom’s role in global halal markets and attracting investment into innovation-driven sectors.

Qatar Chamber and the Islamic Chamber of Commerce and Development (ICCD) have signed an agreement to establish a digital platform for halal products, aimed at improving transparency, traceability and trade facilitation across the global halal ecosystem.

The agreement was signed on the sidelines of the 41st General Assembly meeting of the Islamic Chamber of Commerce and Development and the Makkah Halal Forum, held in Makkah.

According to Sheikh Khalifa bin Jassim bin Mohamed Al-Thani, chairman of Qatar Chamber, the initiative reflects the growing efforts to strengthen digital infrastructure within the halal sector and enhance international cooperation among Islamic economies. He further noted that transforming halal systems into strategic economic tools could reinforce the GCC’s position as a regional and global hub while supporting diversification and food security goals.

Sheikh Khalifa stated that collaboration between chambers of commerce across Islamic countries would help harmonise standards and specifications, increase confidence in halal products, and enhance governance and transparency throughout the industry.

During the General Assembly meeting, members reviewed progress on implementing decisions from the previous session, elected board members for the new term, and approved the appointment of a new chairman. The assembly also endorsed financial reports, including the Chamber’s 2026 budget and 2024 financial statements, and discussed planned activities for 2026.

Four countries have joined the Global Halal Mark alliance launched by the Saudi Halal Center, as the organisation moves to unify halal certification standards and strengthen cross-border trade within the global halal economy.

The announcement followed the signing of two agreements with Indonesia and Thailand during the Makkah Halal Forum, according to Abdulaziz Al-Rushodi, chief executive officer of the Saudi Halal Center, who said additional countries are expected to join the alliance.

The initiative aims to standardize halal marks internationally and enhance reliability across certification systems with participation projected to reach 10 countries by the end of the year.

The forum also saw the launch of the Halal Academy, established in cooperation with the Islamic University of Madinah. The academy is intended to serve as a global scientific reference supporting skills development, research and capacity building within the halal ecosystem.

Separately, the Saudi Halal Center announced plans for a “Global Halal Hub,” an integrated digital platform designed to streamline certification processes and facilitate trade procedures between participating countries. The platform aims to simplify compliance requirements and improve transparency across supply chains.

To support the domestic industry, the center signed a memorandum of understanding with the Food Manufacturers Association, representing thousands of Saudi factories. The partnership seeks to encourage local producers to adopt the Saudi halal mark, enabling greater export readiness and improving access to markets across the Islamic world.

Established in 2018 under the Saudi Food and Drug Authority, the Saudi Halal Center oversees halal certification by verifying compliance with Shariah and technical standards. Products carrying the halal mark indicate they have undergone regulatory auditing and meet defined Islamic compliance requirements.

Industry stakeholders highlighted the growing economic significance of halal certification initiatives. Yousef Khalawi, Secretary-General of the Islamic Chamber of Commerce and Development, said the global halal market was valued at approximately $7 trillion in 2025 and is projected to reach $10 trillion by 2030 amid rising consumer demand and expanding investment across halal value chains.

Saudi Arabia currently leads global investment in the sector, with approximately $1.4 billion invested, followed by Malaysia, Kuwait, the United Arab Emirates and Indonesia.

Saudi Arabia and the UAE have emerged as top destinations for AI startup funding across the Middle East and North Africa (MENA), as both nations look to scale their investments in frontier technologies. 

Enterprises across the UAE and Saudi Arabia raised $519 million and $235 million, respectively, making up 60% and 27% of the MENA’s AI funding last year, according to data platform Magnitt. 

The reported attributed strong financial services sectors as a key driver, with most VC investors hosting offices in either Riyadh or Dubai. 

Saudi Arabia and the UAE have launched colossuses to drive their national AI ambitions – G42 backed by Abu Dhabi sovereign wealth fund Mubadala Investment Company and Humain, a subsidiary of Saudi sovereign wealth fund, Public Investment Fund.

The US recently authorised the export of advanced AI chips to G42 and Humain, slated to receive American semiconductors, equivalent of up to 35,000 Nvidia Blackwell chips.

The International Monetary Fund said that the GCC is well-positioned to leverage digitalization, with most countries close to or on par with advanced economies, especially in terms of digital infrastructure and affordability. 

“Similar to digitalization, the GCC’s AI preparedness exceeds that of an average EM (emerging market), supported by rapid advances in AI investments (including by SWFs), R&D (e.g., initiatives with universities and research centers, and investments in GenAI foundational models), and talent (including the attraction of AI skills from abroad),” the fund said in its GCC note published on December 6. 

AI captures sizeable slice

AI startups in MENA raised $858 million in 2025, making up 22% of the region’s total funding and 29% of its deal volume. 

AI-native startups, with their appetite for compute and model development, received 69% of total AI capital, while AI-enabled startups raised $267 million.

AI-native are startups whose core product or service is built on AI, while AI-enabled startups deploy the technology within their workflows and processes

Enterprise software stood as a top performer, drawing 30% of the region’s AI funding with 59 deals, signalling at the growing adoption of AI solutions by corporates.