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Key developments: The UAE cabinet, led by Sheikh Mohammed bin Rashid Al Maktoum, signed off on a Dh 292.5 billion federal budget for 2027‑2029, underscoring the nation’s commitment to sustained public‑sector spending despite regional volatility. At the same time, Etihad Airways announced additional flight cancellations to Saudi Arabia, extending the suspension of Abu Dhabi‑Riyadh services until mid‑October because of an "operational disruption" at Riyadh airport.
Why it matters: The new budget signals confidence in the UAE’s economic outlook and provides funding for infrastructure, social programmes and defence at a time when the Gulf faces heightened security threats. The airline disruptions highlight how Houthi attacks on Saudi airports—condemned by the UAE—are directly affecting travel and trade links, potentially pressuring the aviation sector and broader commerce.
What to watch next: Follow the implementation of the 2027‑2029 budget, especially allocations for defence and diversification projects. Monitor whether Etihad lifts the cancellations or adds alternative routes, and watch for any escalation in Houthi attacks that could further disrupt regional air traffic. [[1, 2]]