Related Articles

• 
  UAE banks ready to weather the storm

  8 April 2026

  

   

  Amid unprecedented turbulent geopolitics, Emirati lenders are putting on a confident face. More than one month in from the Iran conflict, Dubai’s largest bank, Emirates NBD, raised $2.25bn in long-term financing – obtaining, it said, the tightest pricing in the bank’s history for a syndicated loan, which aims to strengthen the bank’s liquidity position.

  Bankers view this as a token of the sector’s resilience. “Strong oversubscription from international lenders, together with tight pricing, reflects continued market confidence in the UAE’s financial sector,” said Shayne Nelson, Emirates NBD’s CEO.

  UAE banks entered the crisis in a strong position. Capital and liquidity buffers are robust, with an aggregate capital adequacy ratio of 17.1% in Q4 2025 – well ahead of the minimum 10.5% level. The loan-to-deposit ratio stood at 77.7%, another metric indicating its latitude to extend ample credit to the economy.

  Performance levels last year were impressive. Total assets in the UAE banking system rose 17% in year-on-year terms to AED5,340bn ($1.45bn) by end-2025. Asset quality ratios improved, supported by a 16.2% reduction in non-performing loans (NPLs). Large banks revealed strong profits. The largest Emirati lender, First Abu Dhabi Bank, reported a 24% increase in net income to AED21.11bn ($5.7bn), while Abu Dhabi Commercial Bank similarly saw full-year pre-tax profits rise by 21% to AED12.8bn.

  Analysts paint a picture of a broadly healthy banking system, at least pre-conflict. “In 2025, we saw some margin pressure, as competition for liquidity increased. UAE banks’ profitability metrics declined a bit. But banks entered this crisis in the best shape for the last 10 years. Take the NPL ratio; at around 3%, it’s been on a declining trend for the last five years,” says Anton Lopatin, senior director, financial institutions at Fitch Ratings.

  Support package

  The events since 28 February have clearly ruffled the surface calm, although the UAE Central Bank has stepped in to provide additional support, announcing on 19 March a resilience package mainly made up of precautionary support measures focused on liquidity and forbearance. This comes amid reports of a sharp decline in liquidity in the banking system.

  The package allows lenders to access liquidity and to use capital buffers to support the economy. Banks enjoy enhanced access to reserve balances up to 30% of the cash reserve requirement.

  “The central bank has a strong ability to support banks in the UAE, as it has AED1tn ($270bn) in external reserves. It means that it is able to provide support if needed, backed by these reserves,” says Lopatin. 

  According to Lopatin, overnight deposits at the Central Bank have declined slightly since the conflict escalated, but nothing too severe. “Judging by liquidity indicators at the sector level, it’s under pressure, but it’s still healthy,” he says.

  Ongoing risks

  Nonetheless, a protracted conflict would raise asset quality concerns, given the likely impact on companies in sectors such as infrastructure, real estate, tourism and aviation – those most exposed to war-related effects. In the UAE, hospitality, tourism and real estate also have weaker links to the sovereign.

  Disruption to air traffic and tourist inflows is likely to have only a small direct impact on UAE banks, whose lending to the transport (mostly aviation) and tourism sectors is limited. Fitch estimates the two combined accounted for less than 3% of total loans at end-2025.

  “The UAE has always been sensitive to the real estate market performance. It has recovered strongly since Covid, with prices up by 60%. But if there is less economic activity, and less belief in Dubai as a safe jurisdiction, real estate would be among the first sectors to suffer,” says Lopatin.

  Corporate real estate accounted for 13% of gross loans at end-2025, down from 20% at end-2021, and this sector is likely to be the main source of new Stage 3 loans if the conflict is prolonged, warned Fitch in a rating note issued on 2nd April.

  Some banks still have high concentrations in their loan books, namely Sharjah Islamic Bank (29%), Ajman Bank (28%), Commercial Bank International (CBI; 41%), Commercial Bank of Dubai (20%) and United Arab Bank (UAB; 20%). Their asset-quality metrics could weaken, said Fitch, adding profitability pressures, if the real estate price correction exceeds its pre-conflict expectations.

  Already, two Dubai property developers have seen their sukuk (Islamic debt securities) fall into distressed territory, as investor concerns about credit quality and refinancing risks start to register. In mid-March, Fitch Ratings placed Dubai real estate firm Binghatti on a negative rating watch, signalling a potential downgrade.

  Too early to assess

  Yet analysts caution against reading too much into this at this stage. “UAE banks’ total exposure to real estate is not so significant,” he says. “Currently, it’s less than 15%, the lowest level in 10-15 years. Any impact on banks will be gradual, but it will be under pressure, so banks will be under pressure too.  Some smaller UAE banks entered this crisis with less cushioning and higher NPLs and therefore could be affected more.”

  Refinancing risk may also affect the government-related entity (GRE) sector, with these anticipating around $11.5bn in debt maturing this year, according to estimates from Capital Economics, a consultancy.    

  If the refinancing of GRE debt proves too expensive, then UAE banks may have to step into the breach with new credit facilities. 

  “The longer the conflict lasts, refinancing becomes a point of stress,” says Lopatin.

  The capacity of the likes of Emirates NBD to raise finance in the most trying conditions suggests a wider resilience that may stave off worst-case scenarios for UAE banks. The next weeks and months will doubtless be testing for them, and the possibility of cash flow problems yielding a worsened loan quality position is one that will be taken seriously. 

  However, the capital and liquidity buffers painstakingly built up since the Covid pandemic mean banks are ready to weather the storm.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16251184/main.gif

  James Gavin
• 
  Dubai extends bid deadline for Jebel Ali STP expansion

  8 April 2026

  Dubai Municipality has extended the deadline for contractors to submit bids for a contract covering the expansion of the Jebel Ali sewage treatment plant (STP) phases one and two.

  The upgraded facility will be capable of treating an additional sewage flow of 100,000 cubic metres a day (cm/d), with the expansion estimated to cost $300m.

  The scope includes the design, construction and commissioning of infrastructure and systems required to support the increased capacity.

  The new bid submission deadline is 30 April. The original deadlines was 2 April.

  Located on a 670-hectare site in Jebel Ali, the original wastewater facility has a treatment capacity of about 675,000 cm/d following the completion of phase two in 2019, combining approximately 300,000 cm/d from phase one and 375,000 cm/d from phase two.

  The main element of the expansion involves modifications to the secondary treatment process at Jebel Ali STP phase two.

  UK-headquartered KPMG and UAE-based Tribe Infrastructure are serving as financial advisers on the project.

  It is understood that the project is part of long-term plans to treat about 1.05 million cm/d a day once all future phases are completed.

  MEED recently revealed that the municipality is preparing to tender the main construction package for the Warsan sewage treatment plant (STP) by the end of the year.

  As MEED understands, the Warsan STP had previously been expected to be procured as a public-private partnership (PPP) scheme.

  However, the main construction package will now be procured as an engineering, procurement and construction (EPC) contract.

  The project involves the construction of a sewage treatment plant with a capacity of about 175,000 cubic metres a day (cm/d), including treatment units, sludge handling systems and associated infrastructure.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16298710/main.jpg

  Mark Dowdall
• 
  Saudi firm to develop $300m Syria Beaumont project

  8 April 2026

  Syria’s Ministry of Tourism has partnered with Riyadh-based firm Ezdihar Holding to develop The Beaumont, described as the country’s first fully integrated residential, commercial and leisure scheme.

  The 77,000-square-metre project is expected to cost $250m-$300m and is positioned as a flagship development aimed at supporting tourism sector recovery, while boosting investment, job creation and skills development.

  Plans include two towers on the Barada River waterfront.

  The first will house a five-star, 150-key hotel with presidential suites, multiple food and beverage outlets, a private members’ club and a spa.

  The second will feature 26 floors of high-end residential units, ranging from one-bedroom serviced apartments to 570-square-metre duplex penthouses overlooking the city.

  Additional components include a two-level retail centre, an outdoor promenade with cafes and restaurants, and a 10-storey business centre targeting regional and international occupiers.

  The project will be delivered through a 50-year joint venture between the Ministry of Tourism and Ezdihar Holding, operating with financial and administrative autonomy.

  Located near Umayyad Square in Damascus, the development is intended to serve as a base for companies seeking regional or national headquarters, alongside a mixed-use destination combining hospitality, retail and leisure offerings.

  Construction will be carried out in phases, with completion targeted within four years.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16298370/main.png

  Yasir Iqbal
• 
  Hydrogen production unit hit at Bahrain’s Sitra refinery

  8 April 2026

  

   

  A hydrogen production unit (HPU) is one of the key units that has been hit at Bahrain’s Sitra refinery, according to industry sources.

  The Sitra refinery has been hit by Iranian strikes several times, causing significant damage at the facility, since the US and Israel started the conflict with Iran on 28 February.

  State-owned Bapco Energies, which operates the refinery, declared force majeure across its operations last month following two missile strikes on the Sitra oil refinery on 5 and 9 March.

  A third strike on the facility took place on 5 April, hitting a storage tank and starting a fire.

  Damage to one of the refinery’s HPUs could be a significant setback to the facility’s operations, depending on the extent of the damage.

  In November last year, MEED reported that Bapco Energies was in the final stages of ramping up volumes processed by new units that were installed as part of the Bapco Modernisation Programme (BMP).

  The project at the Sitra refinery is estimated to have been worth $7bn and was inaugurated by Bahrain’s King Hamad Bin Isa Al-Khalifa in December 2024.

  As part of the BMP, two HPUs, each with a capacity of roughly 125 million standard cubic feet a day, were added to the facility.

  If one of the refinery’s HPUs is damaged to the point that it cannot be used, or cannot be used at full capacity, the refinery will likely have to cut throughput until the unit is fixed.

  HPUs are complex, and if there is severe damage, it could potentially take months to repair.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16297359/main.jpg

  Wil Crisp
• 
  US and Iran agree to two-week ceasefire

  8 April 2026

  The US and Iran have entered into a conditional two-week ceasefire agreement, potentially pausing a regional conflict that began on 28 February with joint US and Israeli airstrikes.

  US President Donald Trump announced the ceasefire, which was brokered by Pakistan, on social media platform Truth Social. He said the agreement is strictly predicated on the “COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz”, which has been blocked by Iranian forces for several weeks.

  He also said the deal is a “double sided CEASEFIRE”, stating that he had agreed to suspend the bombing campaign for 14 days to allow for the finalisation of a long-term peace agreement.

  President Trump indicated that the decision followed the submission of a 10-point plan from Tehran. He said the plan is a “workable basis on which to negotiate”. He further stated that US military objectives under Operation Epic Fury had already been “met and exceeded” during the 38-day campaign. He also showed optimism for a peace deal, adding that “it is an Honor to have this long-term problem close to resolution”.

  In an official statement, the Israeli government confirmed its support for the suspension of strikes, provided that Iran immediately reopens the maritime corridor and ceases all aggression against the US, Israel and regional neighbours. Israel clarified that the two-week ceasefire does not include Lebanon.

  Iranian Foreign Minister Seyed Abbas Araghchi stated that Tehran would stop its military actions if attacks against Iran are halted.

  The announcement led to a significant drop in oil prices, with Brent crude falling to below $95 a barrel on morning trade.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/16298336/main.gif

  Colin Foreman