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Gulf aviation’s toughest test since the pandemic Administrator30 June 2026
Commentary
Colin Foreman
EditorThe conflict that erupted on 28 February has tested Gulf aviation more severely than any event since the Covid-19 pandemic. Yet the sector’s response has revealed both its vulnerability and its underlying resilience in equal measure.
The scale of the disruption has been severe. Between 28 February and 5 March alone, more than 15,000 flights were cancelled across seven major regional airports. Jet fuel prices are expected to average $152 a barrel this year, almost 70% above 2025 levels, while the International Air Transport Association now forecasts global airline net profit of $23bn in 2026, roughly half its earlier projection.
For Gulf hub carriers, whose business models depend on stable long-haul routings and transfer traffic, the financial hit has been unavoidable.
The sector’s response has revealed both its vulnerability and its underlying resilience
What is striking, however, is the speed and confidence of the recovery. Etihad is already operating at 90% of pre-war capacity, with fares back at pre-war levels and no plans to discount. Emirates, despite flying at just 58% of its capacity in March, posted a record annual profit and announced a 20-week salary bonus for staff. Riyadh Air pressed ahead with five new destinations in June. Dubai and Riyadh are together preparing to award tens of billions of dollars in airport construction contracts before the year is out.
The pattern is consistent across tourism, too. Hotel and resort construction contracts in the GCC have already surpassed last year’s full-year total, and sovereign entertainment projects such as the Sphere Abu Dhabi are being formalised mid-conflict. Governments are making clear that their long-term infrastructure ambitions are not contingent on short-term demand.
The coming months will determine how quickly international airline confidence, and the passengers that follow it, returns to the Gulf. The signals from within the region point firmly in one direction.
READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDFStress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.
Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitions> INDUSTRY REPORT: Dubai eyes tourism sector recovery> DATA CENTRES: Big Tech falls short on data centre promise> LEADERSHIP: Aramco’s citizen developers accelerate digital changeTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17492201/main.gif -
Read the July 2026 MEED Business Review Administrator30 June 2026
Download / Subscribe / 14-day trial access The events that unfolded from 28 February delivered the Gulf aviation sector its toughest test since the Covid-19 pandemic.
Missile and drone attacks exposed the fragility of one of the region’s most vital economic engines, triggering unprecedented disruption. In just one week, more than 15,000 flights were cancelled across seven major Gulf airports, leaving over 1.5 million passengers stranded and sending shockwaves through global travel networks.
While the Gulf's national airlines have largely restored services, many international carriers remain absent, highlighting the lasting impact of the crisis.So what does this mean for the future of Gulf aviation? In the July issue of MEED Business Review, MEED editor Colin Foreman examines how the industry responded under extraordinary pressure – and why the crisis revealed not only its vulnerabilities, but also the remarkable resilience that will shape its next chapter.
July’s market focus is on the Levant, and finds the region’s three markets – Jordan, Lebanon and Syria – recovering at different speeds and from very different starting points.
This edition also includes a tourism report as the first signs of recovery begin to emerge in Dubai, and the region presses ahead with tourism projects.
In the latest issue, we speak to EtihadWE about its roadmap for future projects, examine why the Mena projects market continues to show remarkable resilience despite regional conflict, and investigate whether Big Tech is delivering on its data centre ambitions.
We also explore the multibillion-dollar opportunity emerging from the region’s evolving retirement savings market and discover how Aramco's citizen developers are accelerating digital transformation from within.
We hope our valued subscribers enjoy the July 2026 issue of MEED Business Review.
Must-read sections in the July 2026 issue of MEED Business Review include:
> AGENDA: Gulf aviation ambitions face uncertain future
> AIRPORTS: Dubai and Riyadh reaffirm airport ambitionsINDUSTRY REPORT:
Tourism investment
> Dubai eyes tourism sector recovery
> GCC presses ahead with tourism projects> INTERVIEW: EtihadWE prepares roadmap for future projects
> PROJECTS MARKET: Mena project momentum holds despite conflict
> DATA CENTRES: Big Tech falls short on data centre promise
> SAVINGS: Retirement creates multibillion-dollar opportunity for region
> LEADERSHIP: Aramco’s citizen developers accelerate digital change
> INTERVIEW: Samsung E&A’s hydrocarbons business rooted in Mena
> LEVANT MARKET FOCUS:
> COMMENT: Levant recovers in three speeds
> GOVERNMENT: Jordan consolidates as deeper reforms lag
> BANKING: Caution governs Jordanian bank lending
> POWER & WATER: Record investment drives Jordan’s utilities market
> ECONOMY: Gulf liquidity outpaces Syria’s financial revival
> PROJECTS: Momentum builds for Syrian projects
> OIL & GAS: Activity ramps up in Syria’s oil and gas sector
> CONSTRUCTION: Prospects improve for Levant construction
> OIL & GAS: Lebanon taps foreign players to assess resources
> DATABANK: Jordan faces fresh round of challenges> MEED COMMENTS:
> UAE clears the path for recovery
> Water tariffs near their floor
> Petrofac seeks to reclaim lost ground
> The UAE’s eastern pivot> GULF PROJECTS INDEX: Gulf index extends growth streak into 15th month
> MAY 2026 CONTRACTS: Middle East contract awards
> ECONOMIC DATA: Data drives regional projects
> OPINION: The price of permanent risk
> BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts
To see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17490904/main.gif -
Chinese firm wins Qiddiya Janadriyah cultural district hotels Administrator30 June 2026
Beijing-headquartered China State Construction Engineering Corporation (CSCEC) has won a contract to deliver the Janadriyah cultural district at Qiddiya entertainment city on the outskirts of Riyadh.
The contract was awarded by gigaproject developer Qiddiya Investment Company (QIC).
The scope covers the construction of six structures, including a heritage building, a gateway hotel, a wadi hotel, a creative hub, a community centre and an open-air market.
QIC tendered the contract in December last year, as MEED exclusively reported.
The award is CSCEC’s second major win at Qiddiya in recent weeks.
Earlier this week, MEED exclusively reported that QIC had awarded CSCEC a contract to build a new transport hub at Qiddiya entertainment city.
The project is located within the resort core zone of the development.
MEED understands the scope includes construction of a parking structure for up to 2,000 vehicles; a transport hub comprising a passenger flow system and ticketing and transit-related facilities; retail, food and beverage and hospitality facilities; mechanical, electrical and plumbing (MEP) systems; and soft and hard landscaping works.
QIC is accelerating plans to develop additional assets at Qiddiya City.
Last week, MEED reported that QIC had invited contractors to prequalify for a contract to build an indoor sports arena within its Qiddiya entertainment city project.
The multipurpose arena is designed to International Olympic Committee standards.
It will be located in District 18, in the Uptown South area of Qiddiya.
Once completed, the indoor arena will be capable of hosting a wide range of sports, cultural and entertainment events.
The arena will feature numerous sports courts for basketball, handball, futsal, volleyball, tennis, boxing and gymnastics.
It will have a seating capacity of 18,000 spectators.
QIC’s other major projects include an e-sports arena, the National Tennis Centre, Prince Mohammed Bin Salman Stadium, a motorsports track, a racecourse, the Dragon Ball and Six Flags theme parks, and Aquarabia.
QIC opened the Six Flags theme park to the public in December last year.
The park covers 320,000 square metres and features 28 rides and attractions, including 10 thrill rides and 18 aimed at families and young children.
The Qiddiya project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom.
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Aldar launches Yas Island community park project Administrator30 June 2026
Abu Dhabi-based real estate developer Aldar, in partnership with the Abu Dhabi Department of Community Development (DCD), has announced the launch of Yas Community Park on Yas Island.
A key feature of the park is Nabdh Yas, a community hub developed in collaboration with DCD.
Once open, Nabdh Yas will serve as a central gathering space and host a range of community-led programmes.
In a statement, Aldar said: “Nabdh Yas will be delivered on a public-private partnership (PPP) basis, marking the first time private sector investment has been directed towards this type of community infrastructure.
“With DCD overseeing the hub’s development and long-term management, the initiative reflects Abu Dhabi’s focus on innovative approaches that generate lasting social value and enhance community wellbeing,” the statement added.
A memorandum of understanding was signed between Aldar and DCD.
The agreement establishes a framework to expand the Nabdh Community Hub model across Aldar developments in Abu Dhabi, Al-Ain and Al-Dhafra.
Last month, Aldar announced its Q1 financial results, reporting a 20% year-on-year increase in net profit after tax to AED2.3bn ($626m).
Aldar Development recorded a 14% year-on-year rise in revenue to $1.7bn, while earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 23% to $599m.
UAE revenue backlog rose to $17bn at the end of March from $16.6bn at the end of December, with an average duration of 29 months.
The group attributed its performance to revenue from its development backlog and steady income from its investment properties.
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Dubai sets August deadline for Airport Express metro bids Administrator30 June 2026
Dubai’s Roads & Transport Authority (RTA) has given consultants until 10 August to submit proposals for a contract to study and design the Airport Express Line, which will extend from Dubai International airport (DXB) in the Al-Garhoud area to Al-Maktoum International Airport (DWC) in the Jebel Ali area.
The previous deadline was 8 July.
The proposed line will stretch about 55 kilometres and include five stations, providing passengers with facilities such as remote airline check-in, baggage drop-off and security screening.
The RTA issued the tender in April, with an initial deadline of June, as MEED reported.
The new line will run from the Red Line metro station at DXB through Al Jaddaf, along Al-Khail Road to a new station at Jumeirah Village Circle (JVC), before continuing to DWC.
There will be two spur lines. The first will run from the new JVC station to Al-Fardan Exchange metro station at Emirates Golf Club, while the second will branch towards Business Bay, where another station will be built.
The new line appears to follow a similar route to the Etihad Rail high-speed railway project, which is under construction and due to be completed by 2030.
The Airport Express Line scheme is the latest metro project to be tendered by the RTA this year. Earlier this month, MEED exclusively reported that the RTA had issued the request for qualification notice for a contract to build the new Gold Line, as part of its expansion of the Dubai Metro network.
Tendering activity is also ongoing for the Route 2020 extension, which will start from the Expo 2020 metro station and connect to DWC’s West Terminal.
MEED exclusively reported in April that consultants had submitted bids for the project.
The extension to the line will run for about 3km and will feature two stations.
The existing Route 2020 metro link is a 15km-long line that branches off the Red Line at Jebel Ali metro station. The line comprises 11.8km of elevated tracks and 3.2km of tunnels, and has five elevated stations and two underground stations.
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Eni increases gas production in Libya Administrator30 June 2026
The Italian oil and gas company Eni has announced the startup of offshore gas production enabled by the Sabratha compression project in Libya.
The client on the project was Mellitah Oil & Gas (MOG), a joint venture of Eni and Libya’s state-owned National Oil Corporation (NOC).
The Sabratha compression project was designed to increase gas output from the Bahr Essalam gas field, located approximately 100 kilometres off Libya’s coast.
The scope of the project included the installation of a new 1,600-tonne compression module on the Sabratha platform, equipped with new compression trains, providing an overall compression capacity of about 440 million cubic feet a day.
In a statement, Eni said: “The new module enables production under low-pressure conditions, offsetting the natural decline of the Bahr Essalam field and maximising gas recovery, ensuring increased volumes of gas of about 800 million cubic metres per year and associated condensate.
“This additional production will play a critical role in sustaining national power generation, reinforcing Libya’s energy security, and supporting export to Italy via the Greenstream pipeline.”
The company also said that the project strengthened the resilience of Libya’s gas infrastructure and represented “a tangible contribution to the stability and growth of the country’s energy sector”.
MOG also has two other projects in Libya that are currently under execution.
The first is the Bouri gas utilisation project, whose tie-in and commissioning activities are under way following the recent installation of the Bouri gas recovery module.
The other project, known as ‘Structures A&E’, will develop two offshore gas fields.
Eni has been present in Libya since 1959 and last year had average equity production in the country of approximately 162,000 barrels of oil equivalent a day.
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Jordan faces fresh round of challenges Administrator29 June 2026
MEED’s July 2026 report on the Levant includes:
> COMMENT: Levant recovers in three speeds
> GOVERNMENT: Jordan consolidates as deeper reforms lag
> BANKING: Caution governs Jordanian bank lending
> POWER & WATER: Record investment drives Jordan’s utilities market
> ECONOMY: Gulf liquidity outpaces Syria’s financial revival
> PROJECTS: Momentum builds for Syrian projects
> OIL & GAS: Activity ramps up in Syria’s oil and gas sector
> CONSTRUCTION: Prospects improve for Levant construction
> OIL & GAS: Lebanon taps foreign players to assess resourcesTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17479483/main.gif -
Levant recovers in three speeds Administrator29 June 2026
Commentary
Colin Foreman
EditorThe Levant enters the second half of 2026 in a state of uneven recovery. Jordan, Lebanon and Syria are each navigating distinct pressures, but share a common condition: the pace of improvement is being set less by domestic policy than by the willingness of external actors to commit capital and the capacity of local systems to absorb it.
Syria presents the most dramatic transformation. The fall of the Assad government in December 2024 unlocked a wave of Gulf and international engagement that would have been unimaginable a year earlier. The World Bank estimates the cost of reconstruction at $216bn, and commitments are accumulating. Qatar’s UCC Holding anchors two of the largest, a $7bn power programme and a $4bn rebuild of Damascus International airport. Dubai’s DP World is operational at Tartous under a 30-year concession. Abu Dhabi’s Eagle Hills has presented plans for urban developments in Damascus and Latakia with a reported budget of $50bn.
Yet the gap between commitment and delivery is wide, and the binding constraint is financial infrastructure rather than investor appetite. Syria’s central bank sent its first Swift message in 14 years in November 2025. Visa and Mastercard processing resumed only in May. Correspondent banks remain cautious on compliance grounds. The IMF has declined to extend a lending programme, citing the need for banking reform and central-bank independence. Until the financial plumbing works at scale, the pledged billions will remain signed announcements rather than funded projects.
Jordan’s position is more stable but equally constrained. Prime Minister Jafar Hassan has held the fiscal line since his appointment in September 2024, narrowing the deficit from 7.3% of GDP to a projected 5.4% in 2026 under the IMF programme. The $2.3bn Aqaba Port Railway, backed by the UAE, and the $5.8bn National Water Carrier project together represent the largest foreign investment in the kingdom’s history, according to Hassan.
But growth is projected at just 2.7% through 2026, well short of what the Economic Modernisation Vision requires, and structural reforms to the labour market have stalled.
Lebanon, meanwhile, continues to mark time. Political leadership is in place and Block 8 offshore has attracted TotalEnergies, Eni and QatarEnergy, but the country produces virtually no hydrocarbons and its broader economic recovery remains fragile as the threat of conflict persists.
MEED’s July 2026 report on the Levant includes:
> GOVERNMENT: Jordan consolidates as deeper reforms lag
> BANKING: Caution governs Jordanian bank lending
> POWER & WATER: Record investment drives Jordan’s utilities market
> ECONOMY: Gulf liquidity outpaces Syria’s financial revival
> PROJECTS: Momentum builds for Syrian projects
> OIL & GAS: Activity ramps up in Syria’s oil and gas sector
> CONSTRUCTION: Prospects improve for Levant construction
> OIL & GAS: Lebanon taps foreign players to assess resourcesTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17479313/main.gif -
GCC presses ahead with tourism projects Administrator29 June 2026
> This package also includes: Dubai eyes tourism sector recovery
Hotel and resort construction in the GCC has proven to be more resilient than many would have predicted. According to regional project tracker MEED Projects, the value of hotel and resort construction contracts awarded in the region has so far reached $5.3bn in 2026, already surpassing the full-year total of $3.2bn recorded in 2025.
The 2026 figure is already the highest since 2024, when $6.1bn in contracts were awarded, and sits above every year from 2020 to 2023, despite the disruption to visitor flows since conflict broke out on 28 February.
Last year’s total was the weakest in the post-pandemic period, suggesting that the awards now coming through may partly reflect delayed commitments that were held back during a period of elevated construction cost inflation before being released into the market as conditions stabilised.
Future pipeline
The near-term outlook for new project commitments is uncertain, with developers and investors watching the conflict’s trajectory and its effect on visitor demand before finalising capital allocation. While there is caution, governments have signalled a firm commitment to their tourism ambitions.
The clearest signal came in late May, when Alec Engineering & Contracting received a letter of award for the construction of the Sphere Abu Dhabi, a $1.7bn immersive entertainment venue to be built on Yas Island. That Abu Dhabi was prepared to formalise a contract of this scale during an active regional conflict carries its own significance: sovereign-backed tourism infrastructure programmes are not being paused.
In Dubai, another major contract award is approaching. Dubai Holding is preparing to appoint a contractor for the Jumeirah Asora Bay Hotel in the La Mer area, developed alongside the Jumeirah Residences Asora Bay in partnership with Meraas. The proximity of the contract award to the conflict period indicates the same institutional logic: Dubai’s long-term tourism infrastructure programme continues to advance on its own timeline, independent of near-term demand conditions.
Upgrade cycle
If governments are pressing ahead with new tourism infrastructure, operators of existing properties are turning the reduced footfall to their own advantage. A wave of hotel refurbishments has gained pace in Dubai in recent months, with several properties having closed or partially closed for renovation work that, in many cases, had been planned well before the conflict began. The reduction in visitor numbers has created an opportune window to carry out disruptive works without sacrificing commercial performance.
The most prominent examples are the Jumeirah Burj Al-Arab, which has closed for an 18-month restoration programme, and the Armani Hotel Dubai, which occupies floors within the Burj Khalifa and has also closed for a full overhaul, with a planned reopening in the last quarter of 2026.
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AD Ports and EGA commit $23m to upgrade Khalifa port berth Administrator29 June 2026
Abu Dhabi Ports Group (AD Ports) and Emirates Global Aluminium (EGA) have signed an agreement to upgrade EGA’s dedicated berth at Khalifa Port in the UAE capital.
The two companies will jointly invest AED84m ($23m) to upgrade the berth’s infrastructure, enabling it to receive Newcastlemax dry bulk vessels.
These vessels can carry 15-20% more cargo than the Capesize vessels currently served at EGA’s berth.
The upgrades are expected to improve berth productivity, operational efficiency and cargo-handling performance.
The works are scheduled for completion by August 2028.
Once complete, the upgraded berth is expected to support the handling of around 8 million tonnes of bulk cargo per year and increase operational flexibility, including the potential installation of additional unloader facilities.
The programme also includes reinforcing the existing capping beam, installing new bollards and fenders, extending crane beams and foundations, adding utility connections and carrying out dredging works.
The agreement between AD Ports and EGA follows closely on the heels of EGA commissioning the UAE’s largest aluminium recycling plant next to its existing smelter in Al-Taweelah, Abu Dhabi.
The Al-Taweelah recycling plant has a production capacity of 185,000 tonnes a year (t/y) and houses the largest furnace in the UAE, with a melt rate of more than 17 tonnes an hour. The recycling unit sits alongside EGA’s main alumina refinery, which has a nameplate capacity of more than 2 million t/y.
EGA is jointly owned by the governments of Abu Dhabi and Dubai.
The major capital deployment follows a period of significant financial growth and international expansion for AD Ports, which is 75.42% owned by sovereign wealth fund ADQ. AD Ports reported record results for 2025, with revenue rising 20% year-on-year to AED20.77bn ($5.66bn) and net profit increasing 16% to AED2.07bn.
According to its 2025 annual report, the group plans to invest AED2.45bn in port infrastructure development during 2026 alone, alongside AED1.3bn for liquefied petroleum gas and liquefied natural gas storage terminals between 2026 and 2028. To fund higher-return projects and optimise its balance sheet, AD Ports launched an asset monetisation programme in late 2025 targeting the recycling of AED4.6bn of capital.
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