Happy Friday everyone!

The UAE is showcasing resilience across defence, aviation and real estate as major institutions push ahead despite ongoing regional uncertainty. Locally developed EDGE defence systems neutralised more than 85% of hostile dronesduring nearly 3,000 attacks, underscoring the country’s growing sovereign technology capabilities. At the same time, Emirates Group posted a record AED 24.4 billion profit, cementing its position as home to the world’s most profitable airline even after Gulf airspace disruptions. Meanwhile, Brookfield Asset Management’s new 480,000-square-foot Dubai Hills venture with Alshaya Group signals continued long-term investor confidence in Dubai’s property market, reinforcing the emirate’s ability to attract global capital through challenging conditions.

In the wake of developments in the region, we hope everyone stays safe. At this critical moment, it is essential to remain united and follow guidance issued by official authorities from your country.

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Markets

UAE-Made Jammers Neutralise 85% Of Iranian Drones As EDGE Counters Nearly 3,000 Attacks In 67 Days

What Is It About?

EDGE Group’s locally developed electronic warfare systems neutralised more than 85 per cent of hostile drones as UAE air defences intercepted 549 ballistic missiles, 29 cruise missiles and 2,260 drones between February 28 and May 4, nearly 3,000 attacks in total. Speaking to Khaleej Times, Dr Chaouki Kasmi said, “We need to ship the technology fast… close the loop and update the system very fast,” with overnight software upgrades pushed before each morning operator shift.

Why It Matters?

The response highlights the UAE’s defence readiness and EDGE’s AI-driven operational capability. “It’s all about building the capability and adapting at the speed of the threat,” Kasmi told Khaleej Times. Years of operational and synthetic data enabled rapid retraining of AI models, while engineers, procurement and finance teams worked side by side to sustain development. EDGE, which recorded $5 billion in annual revenue with 70 per cent from global exports, also accelerated training for Emirati engineers during the crisis.

What’s Next?

Kasmi said every engagement is already feeding new AI models now deployed across EDGE systems. “Collect, process, annotate, retrain the model, push it back into the system. And it is very quick,” he said. The group is scaling production for continuity under crisis conditions while expanding internationally through operations in Brazil, Estonia and Switzerland. “We planned for the worst,” Kasmi noted, signalling deeper investment in sovereign defence manufacturing and faster adaptation to future threats.

Emirates Group Posts Record AED 24.4 Billion Profit to Become World’s Most Profitable Airline Again

What Is It About?

The Emirates Group reported record profit before tax of AED 24.4 billion (US$6.6 billion), up 7%, with revenue reaching AED 150.5 billion and cash assets climbing 12% to AED 59.6 billion for FY2025-26. Emirates retained its title as the world’s most profitable airline with AED 22.8 billion PBT, while dnata posted AED 1.6 billion PBT, despite disruption during the final month of the financial year.

Why It Matters?

The results underscore Dubai aviation’s resilience after military activity disrupted Gulf air traffic from 28 February. Sheikh Ahmed bin Saeed Al Maktoum said the figures “reaffirm the strength and resilience of the Emirates Group’s business model,” adding Emirates and dnata “quickly mobilised to support our people and affected customers.” Despite lower passenger capacity, strong cargo operations, AED 17.9 billion in investments, and a workforce of 130,919 employees helped sustain growth through one of the sector’s toughest operating periods.

What’s Next?

Looking ahead, Sheikh Ahmed said the Group enters 2026-27 with very strong cash reserves and no need for “knee-jerk cost control measures.” Emirates is hedged on fuel until 2028-29, while fleet expansion continues with 367 aircraft on order, including 270 Boeing 777X jets. The airline will press ahead with aircraft retrofits, infrastructure upgrades, and technology investments as it works to restore pre-disruption passenger capacity and reinforce Dubai’s position as a global aviation hub.

Brookfield And Alshaya Launch Major Dubai Hills Real Estate Venture Amid Regional Conflict

What Is It About?

Brookfield Asset Management and Alshaya Group are launching a new property joint venture in Dubai to develop a 480,000-square-foot mixed-use project in Dubai Hills. The development, managed by Brookfield Properties, will include Grade A offices, build-to-rent residences and retail space, marking Brookfield’s first major regional real estate move since the Iran conflict began.

Why It Matters?

The deal signals strong institutional confidence in Dubai’s long-term property fundamentals despite regional instability and softening home values. Brookfield described the investment as reflecting “conviction in the long-term fundamentals of the region.” The move comes as global asset managers deepen Gulf exposure beyond capital raising, with Brookfield and rivals like Blackstone Inc. pursuing strategic investments across the Middle East.

What’s Next?

Once completed, Alshaya will establish its new UAE headquarters at the site, reinforcing Dubai’s role as a regional corporate hub. The project adds to Brookfield’s growing Dubai portfolio, which includes ICD Brookfield Place and luxury waterfront development Solaya. The venture could also encourage further institutional real estate investment if Dubai’s market stabilises as regional tensions ease.

👨‍💻From Smashi Business’ Desk

• Exclusive: Bezos’ $38 Billion “Project Prometheus” AI Play, Which Has a Quiet Gulf Angle

• The Gulf box office is telling a bigger story than just the strong debut of Michael.

• Saudi Arabia’s first Hollywood-scale blockbuster Desert Warrior has opened modestly at the US box office.

• Despite a market cap of just $15.7 million — well below Nasdaq’s $35 million threshold — Swvl Holdings Corp is not on the brink of delisting.

• UK universities under fire after reports of £440k spent spying on pro-Palestine student activity⁠

🔍In other news…

• Saudi Wealth Fund to Sell First Dollar Bonds Since Iran War

• Profit at Abu Dhabi’s IHC nearly doubles to cross $2bn

• French Container Ship Makes Rare Crossing of Strait of Hormuz

• Parkin, the Dubai government’s parking management company, reported high-double-digit growth in net profit and revenue for the first quarter of 2026

• PIF consolidates China presence with second office

• Saudi Airline Faces Difficult Launch as Iran War Upends Travel

• Conflict pushes Omani-Saudi border trade to record levels

• QatarEnergy extends force majeure on Italy’s Edison

• Reuters Exclusive: UAE slips hidden oil tankers through Strait of Hormuz

🦄 World of Startups

• Dubai gifting marketplace Udora secures $10M

• Saudi fashion platform Aya secures $7m to scale real time production

• Jordan-based Tamatem has acquired Istanbul-founded Playable Factory, strengthening its push into performance marketing and user acquisition.

• Egypt’s Lucky Raises USD 23M Series B. Its Consumer Credit Model is Expanding Into North Africa

• “We Got Funded!” Maison Safqa Raises US$620,000 in Pre-Seed Funding to Expand Luxury Flash-Sale Platform Across GCC

• Via Separations, US-based deeptech startup, raised $36M in funding from Aramco Ventures (Saudi), and other global investors.

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