Dilasha Seth

Bank lending in the UAE is slowing down. Lenders are becoming more careful with new loans. This is happening because of the ongoing Iran conflict. Businesses in real estate and construction are finding it harder to get credit. Banks are setting aside more money to cover potential risks. Some businesses are now looking for private lenders.

The ongoing West Asia conflict is impacting property project completions in the UAE. Developers face delays of six to nine months. Construction costs have risen significantly. Many projects scheduled for 2026 handovers will now be pushed to 2027 or later. This situation affects the UAE's booming real estate sector.

The current turmoil in West Asia is having a notable effect on the property market in the UAE. Developers are experiencing significant delays in delivering new homes due to ongoing supply chain challenges and soaring costs.

War-risk insurance is now available for everyday consumers in the UAE. Insurers are offering new policies for cars, cargo, and travel. This expansion is driven by ongoing geopolitical tensions. Businesses are also reassessing their coverage for disruptions. Awareness of war-related risks is increasing among consumers and companies.

India and UAE are set to boost their partnership through joint investments and improved logistics. The UAE's Minister of Foreign Trade highlighted the importance of private sector collaboration in strategic sectors. This follows recent investment commitments worth nearly $5 billion. Bilateral trade is growing strongly, with a target of $200 billion by 2032.

India and UAE are set to boost their partnership through joint investments and improved logistics.

In anticipation of the Eid al-Adha holidays, hotels across Dubai and Abu Dhabi are seeing a notable spike in reservations, a promising sign for the hospitality sector emerging from a tough stretch. With families opting for staycations and intercity travel, occupancy rates are projected to soar, signaling a fresh wave of optimism for the industry.

Abu Dhabi has frozen property rents for residential, commercial, and industrial spaces. This measure aims to provide relief during the ongoing regional conflict. Experts believe Dubai will not implement a similar freeze. This is because Dubai is an international investment hub. Such a move could impact investor sentiment and future property development.

Over 15% of India-UAE trade has been invoiced in local currencies since the rupee-dirham mechanism launched nearly three years ago. Both nations are now intensifying efforts to boost adoption, aiming for faster trade and cost reduction, despite industry-cited structural bottlenecks. Authorities are focusing on onboarding more banks and simplifying procedures to enhance cross-border transaction efficiency.

Property consultants say enquiries remain below pre-war levels, preferred deal sizes have fallen to around AED 1. 5m from over AED 2m earlier