UAE
UAE cuts benchmark interest rate to 3.65%
The Central Bank of the UAE (CBUAE) has decided to cut the Base Rate applicable to the Overnight Deposit Facility (ODF) by 25 basis points, from 3.90% to 3.65%, effective from Thursday, 11 December.
This decision was taken following the US Federal Reserve’s announcement today to reduce the Interest Rate on Reserve Balances (IORB) by 25 basis points.
The CBUAE has also decided to maintain the interest rate applicable to borrowing short-term liquidity from the CBUAE at 50 basis points above the Base Rate for all standing credit facilities.
The Base Rate, which is anchored to the US Federal Reserve’s IORB, signals the general stance of monetary policy and provides an effective floor for overnight money market interest rates in the UAE.
Story by WAM
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.
UAE
When will UAE fuel prices start dropping?
After four consecutive months of fuel price increases, many UAE motorists are hoping relief is finally around the corner.
There are signs that global oil markets are cooling. Brent crude, the international benchmark, is trading around $97 a barrel, down from the $110-$120 levels seen earlier this year when disruptions to Gulf shipping routes sent energy prices soaring.
But economists warn that a return to significantly cheaper fuel may still be some distance away. The UAE raised petrol prices again for June, taking Super 98 to Dh3.95 a litre, Special 95 to Dh3.83, and E-Plus 91 to Dh3.76. Diesel, meanwhile, eased to Dh4.33 per litre after reaching much higher levels in previous months.
For motorists, that means fuel remains substantially more expensive than it was at the start of the year. Super 98 has climbed from Dh2.45 per litre in February to Dh3.95 in June, a jump of more than 61% in just four months.
For a typical driver filling a 60-litre tank, that translates into a fuel bill of about Dh237 today versus Dh147 in February — roughly Dh90 more every time they refuel.
Why prices are still high
The main reason is oil. Although crude prices have retreated from their recent peaks, they remain elevated because of continuing uncertainty surrounding the conflict involving Iran and the future of shipping through the Strait of Hormuz.
The waterway handles roughly 20% of global oil supplies, making it one of the most important energy routes in the world.
Recent optimism surrounding US-Iran negotiations and ceasefire efforts has helped push oil below $100 a barrel. Markets are increasingly betting that a diplomatic solution could eventually allow shipping flows to normalise.
That has reduced some of the panic buying that drove crude sharply higher earlier this year. Yet economists say lower oil prices are likely to arrive gradually rather than suddenly.
Slower path to lower prices
Gita Gopinath, Deputy Managing Director of the International Monetary Fund and formerly its Chief Economist, said oil prices are unlikely to return quickly to the levels seen before the conflict.
“We are not going to see the price of oil come down all the way very quickly,” Gopinath said. “It’s going to take probably till the middle of next year for oil to come back to say $70 or $75 a barrel.” She added: “There is going to be an effect lasting into next year.”
That timeline is important for UAE motorists because fuel prices are directly linked to global oil markets through the country’s monthly fuel-pricing mechanism.
That has reduced some of the panic buying that drove crude sharply higher earlier this year. Yet economists say lower oil prices are likely to arrive gradually rather than suddenly.
Slower path to lower prices
Gita Gopinath, Deputy Managing Director of the International Monetary Fund and formerly its Chief Economist, said oil prices are unlikely to return quickly to the levels seen before the conflict.
“We are not going to see the price of oil come down all the way very quickly,” Gopinath said. “It’s going to take probably till the middle of next year for oil to come back to say $70 or $75 a barrel.” She added: “There is going to be an effect lasting into next year.”
That timeline is important for UAE motorists because fuel prices are directly linked to global oil markets through the country’s monthly fuel-pricing mechanism.
What could happen next?
Based on current oil market trends, the most likely scenario is a gradual easing rather than a sharp drop. If Brent crude remains below $100 a barrel and tensions continue to ease, UAE fuel prices could begin seeing modest downward adjustments over coming months.
The pace of any decline will depend on how quickly global oil supplies recover and whether shipping activity through the Strait of Hormuz returns to normal levels.
Because UAE fuel prices are based on monthly average oil prices rather than daily movements, changes in crude prices typically take time to filter through to consumers.
That means even if oil falls further this month, motorists may need to wait several pricing cycles before seeing a meaningful difference at the pump.
Risk that could delay relief
Economists are also warning against assuming the crisis is over. Gopinath cautioned that markets may be underestimating the risk of a prolonged disruption.
“If this continues for another month, we’re looking at oil prices that could go up to like $120 and $140 a barrel and could stay there for much longer,” she said. Such a scenario would likely push fuel prices higher again and add pressure to inflation globally.
The warning is echoed by the OECD (Organisation for Economic Co-operation and Development). The 38-member intergovernmental organization says the global economy remains highly exposed to prolonged energy disruptions. “The longer the disruption lasts, the greater the economic, but also the social cost of this crisis,” said Stefano Scarpetta.
The OECD forecasts global growth slowing to 2.8% in 2026 if Gulf oil and gas exports return to pre-conflict levels later this year. If disruptions continue into 2027, global growth could slow sharply to 2.1%, with some economies facing recession risks.
When will motorists get relief?
The answer depends largely on one number: oil. If crude prices continue moving lower and remain below $100 a barrel, UAE motorists could begin seeing fuel prices stabilise and gradually ease in the months ahead
But based on current forecasts from economists and international organisations, a return to the much lower fuel prices seen at the beginning of 2026 is unlikely in the near term.
For now, the sharp spikes appear to be over. The next phase is more likely to be gradual cooling rather than a rapid drop.
GN
UAE
IAEA praises UAE cooperation, warns Barakah attack risks nuclear safety
Rafael Mariano Grossi, Director-General of the International Atomic Energy Agency (IAEA), praised the authorities of the UAE for their continued cooperation and the timely and regular sharing of technical information regarding affected nuclear facilities and their respective sites, stressing that immediate engagement with the IAEA’s Incident and Emergency Centre is essential.
Grossi made the remarks in a statement delivered to the United Nations Security Council on Tuesday, affirming that the agency will continue providing public updates on the impact of the conflict on nuclear sites and the possible health and environmental consequences, while remaining in permanent consultation with governments in the region.
The IAEA chief informed the Security Council that the attack on the Barakah Nuclear Power Plant in the UAE threatened nuclear safety in the country, confirming that radiation levels at the plant remain normal and that no injuries had been reported.
He explained that a drone strike on Sunday caused a fire in an electrical generator located outside the inner site perimeter of the plant.
Grossi warned that military activities targeting nuclear power plants and other nuclear facilities carry undeniable risks, calling for the exercise of maximum restraint.
He also revealed that the IAEA has, since last year, been gathering information and analysing and evaluating emergency preparedness and response capacities, noting that he will soon travel to the Gulf region to continue this important joint work.
The Director-General reiterated that attacks on nuclear facilities devoted to peaceful purposes are unacceptable, stressing that nuclear power plants are protected under international humanitarian law.
He called on all parties involved in conflicts to respect the seven indispensable pillars for ensuring nuclear safety and security, while warning that military activities against nuclear power plants and other nuclear facilities pose serious risks with potentially grave consequences.
GN
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