UAE

Dubai’s ‘Green Corridor’ emerges as key trade route amid sea disruptions

Dubai Customs’ “Green Corridor” initiative was launched as an emergency trade facilitation measure. Within weeks, it evolved into one of the Gulf’s most significant alternative logistics routes, helping businesses reroute cargo away from disrupted maritime corridors while keeping trade flows moving across the region.

The initiative, activated in cooperation with Oman Customs in March 2026, came as regional developments began affecting key shipping routes and placing global supply chains under pressure. Dubai Customs said the corridor was operationalised within 72 hours after disruptions started impacting traditional sea lanes. The response reflected a growing challenge facing global trade hubs.

As shipping disruptions, geopolitical tensions, rising insurance costs, and congestion increasingly affect established maritime routes, governments and logistics operators are being forced to develop alternative transport networks capable of sustaining cargo movement during periods of instability. Dubai’s Green Corridor was designed to do exactly that.

What is ‘Green Corridor’?

The Green Corridor is an accelerated customs and logistics route linking Oman and Dubai through the Hatta Border Crossing.

Under the system, cargo arriving through Oman can be redirected overland into Dubai under streamlined customs procedures, allowing shipments to bypass delays affecting conventional shipping routes.

The initiative allows containers destined for Jebel Ali Port, Dubai’s local market, and re-export operations to continue moving through alternative land routes while remaining under customs supervision.

Dubai Customs described the corridor as a “vital trade artery” that helped sustain regional and international cargo flows during a period of significant pressure on global supply chains.

The route effectively created a contingency logistics network capable of redirecting shipments away from disrupted maritime pathways while reducing delays for businesses dependent on fast cargo movement.

Why was the initiative launched?

The Green Corridor was introduced in response to disruptions affecting regional shipping routes and maritime trade operations.

While Dubai Customs did not specify individual incidents, the disruptions triggered operational challenges across logistics networks, including shipping delays, route diversions, rising freight and insurance costs, and mounting congestion at alternative ports.

For Dubai, maintaining uninterrupted trade flows carries broader economic importance. The emirate serves as one of the world’s largest re-export and logistics hubs, connecting cargo flows between Asia, the Middle East, Europe, and Africa. Any prolonged disruption to shipping routes can affect importers, exporters, retailers, manufacturers, logistics companies, and free-zone operators that depend on predictable cargo movement.

The Green Corridor was intended to minimise those risks by creating a rapid-response alternative transport route. Dubai Customs said the initiative was developed in close cooperation with customers and strategic partners to ensure trade continuity and preserve supply-chain resilience during changing regional conditions.

How did cargo movement change?

The scale of the shift became visible almost immediately after the corridor was activated. According to Dubai Customs, customs declarations processed through the Green Corridor increased from around 12,000 in March to nearly 100,000 in April 2026.

The total value of goods transported through the corridor, including insurance and freight costs, rose from Dh1 billion to more than Dh8 billion during the same period. The figures illustrate how rapidly companies adjusted supply-chain operations once an alternative route became available.

Importers and logistics providers facing delays or uncertainty along traditional maritime routes appear to have increasingly redirected cargo through Oman and onward into Dubai via land transport.

The increase in declaration volumes also highlights the extent to which businesses prioritised operational continuity and route diversification during the disruptions.

How does the corridor operate?

The system relies on a combination of digital customs integration, advance cargo processing, and continuous customs supervision. Dubai Customs said shipments are transported in sealed trucks under full customs monitoring throughout transit, allowing cargo to move quickly while maintaining security controls and procedural compliance.

Advanced customs systems process pre-arrival cargo information, manifests, bills of lading, and shipment data before goods reach border crossings. That allows customs teams to accelerate inspection, verification, and clearance procedures without compromising shipment integrity or security requirements.

Unified customs procedures and customs seals also allow businesses to move cargo more flexibly across borders while reducing administrative delays. The initiative effectively combines physical transport infrastructure with digital customs coordination to create a faster alternative trade route.

Roles Fujairah, Khorfakkan play

Dubai Customs expanded the initiative beyond the UAE-Oman land corridor by introducing facilitation measures for shipments entering through Fujairah and Khorfakkan.

Under the revised procedures, containers arriving at those ports can move directly overland to Dubai immediately after arrival instead of completing standard customs clearance processes at the originating ports.

The measure reduces cargo dwell times and shortens overall shipment processing periods for businesses operating through alternative ports. The strategy reflects a broader logistics diversification effort aimed at reducing dependence on a single trade route or maritime gateway during periods of disruption.

Why was transit period extended?

Dubai Customs also extended the allowable transit period for goods from 30 days to 90 days in response to operational feedback from companies and logistics operators. The change gave businesses additional time to reorganise transport schedules, warehouse operations, and supply-chain planning as regional shipping conditions evolved.

Longer transit windows are particularly important during periods of disruption because businesses often face unpredictable delivery schedules, rerouting requirements, customs bottlenecks, and port congestion.

The extension provided companies with greater operational flexibility while reducing pressure on cargo operators dealing with changing regional logistics conditions.

Why does initiative matter for Dubai?

The Green Corridor is as much an economic resilience initiative as it is a customs programme. Dubai’s position as a global trade and logistics hub depends heavily on its ability to maintain uninterrupted cargo movement during periods of instability. The emirate’s ports, airports, free zones, and re-export networks are central to its broader economic model.

The initiative demonstrated Dubai’s ability to rapidly deploy alternative logistics infrastructure while coordinating between customs authorities, ports, logistics companies, and the private sector.

Dubai Customs said the corridor reinforced the emirate’s position as a globally connected trade hub capable of sustaining commercial activity under changing conditions.

Dr. Abdulla Busenad, Director General of Dubai Customs, said the initiative reflected Dubai’s “proactive and flexible approach” to managing regional and international developments while supporting business continuity and economic sustainability.

He said Dubai Customs worked closely with relevant entities and strategic partners to create an operational framework capable of preserving trade continuity and maintaining business confidence under all circumstances.

What it signals about future trade?

The Green Corridor may also offer an early indication of how regional logistics systems could evolve in response to future disruptions. Trade hubs are increasingly investing in route diversification, digital customs integration, and contingency infrastructure as supply-chain resilience becomes a larger strategic priority for governments and businesses alike.

Dubai Customs said the initiative could serve as a practical model for future regional integration frameworks by strengthening logistics resilience through alternative trade routes capable of maintaining cargo flows during emergencies affecting traditional shipping lanes.

The rapid growth in shipment volumes moving through the corridor suggests businesses are willing to quickly restructure logistics operations when alternative systems provide predictable customs procedures, operational flexibility, and faster cargo movement.

That shift reflects a broader recalibration taking place across global trade networks, where resilience and adaptability are increasingly becoming as important as speed and scale.

UAE

UAE citizens can use e-gates at Mexico airports

Mexican authorities have introduced simplified entry procedures for UAE citizens, allowing them to complete their arrival procedures through electronic gates at a number of Mexican airports from Thursday, the UAE Embassy in Mexico said.

Under the new system, Emirati will no longer need to undergo the standard processing procedures at participating airports. Instead, travellers will receive a ticket containing a QR code linked to the Multiple Digital Immigration Form (FMMD), which they must retain throughout the duration of their stay in Mexico.

The embassy said the measure takes effect from Thursday and is intended to facilitate the arrival process for Emirati visitors.

The simplified procedures aim to ease the entry of Emirati fans travelling to Mexico for FIFA World Cup 2026 matches, which the country will co-host alongside the US and Canada.

REAL ESTATE

Dubai’s Shangri-La sold for Dh1.1b

Dubai’s luxury real estate market has recorded another major deal after AHS Properties acquired the Shangri-La Dubai hotel property on Sheikh Zayed Road for an eye-watering Dh1.1 billion.

the acquisition marks one of Dubai’s largest single-asset real estate transactions in recent years, according to the company. The deal also highlights growing investor appetite for prime assets along Sheikh Zayed Road — one of the city’s most established commercial and luxury corridors.

The property was previously sold in 2020 for Dh700.2 million through an online auction linked to debt recovery proceedings involving the Al Jaber Group. The latest transaction reflects a roughly 57 per cent increase in value over six years.

The 42-storey mixed-use property includes a luxury hotel, apartments and office space.

The 26-year-old billionaire founder and CEO of AHS Properties said no final decision has been made on the future of the Shangri-La Dubai asset, although the company plans to upgrade and enhance parts of the building to improve its long-term value.

What happens to Shangri-La

Sajwani said the company has not yet finalised its long-term strategy for the Shangri-La Dubai asset, but plans to enhance and reposition parts of the mixed-use property to unlock additional value.

“AHS focus is luxury real estate, whether it’s residential, commercial, or hospitality,” he said. “We see how we can enhance the project the most, and how we can get the most value-added services from them.”

Sajwani said the company is evaluating several options for the property, including renovating offices, upgrading parts of the development and improving income generation.

“This project hit all those requirements,” he said. “The strategy has many different options of things we can do, so we’re still deciding on that, but the asset was key.”

He added that the company continues expanding its Sheikh Zayed Road presence, with AHS Tower under development and another major mixed-use project planned for launch later this year.

“We have another plot, which we own, which we will launch at the end of the year,” he said. “That will be the biggest project on Sheikh Zayed Road — it’s a Dh25 billion project.” He said details of this project will be announced later in the year.

Sheikh Zayed Road land scarcity

Sajwani also said that Dubai’s prime locations are expected to continue appreciating because of limited land availability. “Dubai will just continue to grow, and the prime will always stay prime,” he said.

“There’s no more lands on Sheikh Zayed Road, and you cannot come up with a new land. So, these assets will continue to rise long term,” said Sajwani. He added that demand for premium office and residential space in the area remains strong.

The acquisition strengthens AHS Properties’ growing footprint on Sheikh Zayed Road, where it already has projects including AHS Tower and AHS City.

Sajwani also confirmed the company plans to launch another mixed-use development on Sheikh Zayed Road later this year. He described it as a Dh25 billion project currently under design.

Under Sajwani’s leadership, the firm expanded into commercial real estate, acquiring and rebranding Dubai’s long-vacant “Big Ben” tower on Sheikh Zayed Road (now AHS Tower) for $120 million.

Mixed-use developments

While the Shangri-La Dubai acquisition includes hospitality assets, Sajwani said the company is not shifting solely into hotels.

“AHS focus is luxury real estate, whether it’s residential, commercial, or hospitality,” he said. He said the company is still evaluating different strategies for the property, including renovations and upgrades to improve long-term returns.

“This project hit all those requirements,” he said, adding that the company sees “huge potential” in the asset.

Founded in 2021, AHS Properties has rapidly expanded in Dubai’s ultra-luxury property market with projects focused on waterfront and premium urban locations.

Last year, the company launched Casa AHS, a Dubai Water Canal development valued at around $750 million, featuring ultra-luxury residences including Sky Villas and Sky Mansions.

Dubai luxury market

Sajwani said Dubai’s ultra-luxury market has seen buyers taking longer to make purchasing decisions in recent months, although demand remains intact.

“We still see transactions,” he said. “It is just people are taking longer to decide.”

He added that the summer period traditionally slows activity but expects demand to strengthen again after September.

According to Sajwani, wealthy international buyers continue relocating to Dubai because of the emirate’s infrastructure, lifestyle, education system and long-term economic policies.

“People are still moving to Dubai, people are still looking for investments and looking for opportunities,” he said.

He also said Dubai’s commercial real estate segment remains undersupplied, particularly for Grade A office space.

“Commercial is very strong,” Sajwani said. “There is currently a lack of supply.”

Prime Dubai districts expected to outperform

Sajwani said Dubai’s established luxury districts are likely to remain the strongest performers in the years ahead.

He identified Sheikh Zayed Road, Downtown Dubai, Dubai Water Canal, Palm Jumeirah and Bulgari Island among the locations expected to continue attracting luxury demand.

“I think the prime will continue to rise in a big way,” he said.

He added that Dubai’s long-term population growth and tourism expansion would continue supporting demand across residential, office and hospitality sectors.

AHS Properties expects its gross development value to reach around Dh50 billion by the end of this year, according to Sajwani.

Dubai’s real estate market has largely remained resilient — but the pace of transactions, especially in the luxury segment, has slowed compared to the rapid growth seen over the past three years.

Brokers and consultancies reported that high-net-worth investors began taking longer to close deals, particularly for ultra-luxury homes above Dh20 million. Many adopted a temporary “wait-and-watch” approach amid geopolitical uncertainty.

travel

Many airlines continue to suspend routes

Passengers flying to and from Dubai are facing schedule changes after several international airlines suspended, cancelled or delayed the resumption of services because of the ongoing situation in the Middle East.

The disruption, which began at the start of the conflict on February 28, affects carriers across Europe, North America and Asia, with some Dubai routes paused until August, September or the end of the summer season. Travellers with confirmed bookings are being advised to check airline websites and apps before heading to the airport, as schedules remain subject to further changes.

Aegean Airlines has cancelled flights to and from Dubai until August 31, while Air Canada has cancelled flights to Dubai and Tel Aviv until September 7. Cathay Pacific has suspended Dubai and Riyadh flights until August 31, and Singapore Airlines has extended the suspension of its Singapore-Dubai service until August 2.

British Airways has pushed back several Middle East routes, with flights to Dubai, Tel Aviv, Bahrain and Amman paused until the end of the summer season and scheduled to resume on October 25. The airline is also expected to return with a reduced schedule on some routes, including Dubai.

European carriers pull back

The biggest disruption is coming from European carriers, as airlines are still adjusting capacity across the Middle East due to airspace risk remaining a concern.

Air France has suspended flights to Dubai and Beirut until June 17, while KLM has suspended flights to Dubai until August 2. KLM flights to Riyadh and Dammam are suspended until July 12.

Lufthansa Group carriers are also maintaining a wide range of suspensions in the Middle East. Lufthansa, SWISS and ITA Airways will continue to suspend flights to Dubai until September 13, while Lufthansa, SWISS, Austrian Airlines and Brussels Airlines have suspended flights to Abu Dhabi, Amman, Beirut, Dammam, Riyadh, Erbil, Muscat and Tehran until October 24.

Eurowings, the Lufthansa Group’s low-cost carrier, has suspended flights to Dubai, Abu Dhabi and Amman until October 24.

Wizz Air has suspended flights from mainland Europe to Dubai, Abu Dhabi and Amman until mid-September, while flights to Medina have been cancelled indefinitely.

Some routes are returning

The disruption is not uniform across the market, with some airlines gradually restoring flights while others remain cautious.

Air Astana is set to resume regular flights from Almaty to Dubai from June 20, with Astana-Dubai services beginning on July 10. The airline has adjusted flight paths to operate via Pakistan because of the closure of Iranian airspace, saying the change is aimed at maintaining safety and reliability.

The Almaty-Dubai route is expected to increase from limited weekly services to daily flights by July 6, while Astana-Dubai will start with three weekly flights from July 10 before expanding to daily services by August 3.

Passengers holding rebooked tickets for departures up to July 31 can change bookings free of charge to earlier flights from June 20 for Almaty departures and from July 10 for Astana departures.

Aegean said it is continuing to monitor developments in line with instructions from aviation authorities and will keep adjusting its schedule on affected routes. Passengers whose flights are cancelled can request a refund or credit voucher, or change their tickets through the airline’s call centre without a reissue charge or fare difference.

What passengers should do

Passengers booked on affected Dubai flights should check their airline’s website or app before leaving for the airport, because schedules are changing by carrier and by route.

Those travelling during the summer should also check whether their airline is offering a refund, credit voucher, free date change or rerouting through another hub. Airlines including Aegean, Cathay Pacific and Air Astana have set out options for affected customers, although policies differ depending on ticket type, travel date and point of purchase.

Cathay Pacific said customers booked to travel during the affected period may rebook, reroute or refund tickets under its waiver policy. “We are monitoring the situation closely and will remain agile in our response. The safety of our customers and people guides every decision we make,” the airline said in a statement.

Virgin Atlantic has also brought forward the end of its seasonal London-Dubai operation, saying, “The recent escalation in the Middle East has brought forward the end of our operation for this season.”

GN With inputs from Reuters.