Government of Dubai Media Office
Morning. Steve Moore here. The UAE Cabinet has approved Dh292.5bn (about £60.1bn) in federal spending for 2027–2029, with education, health and housing among the priorities Sheikh Mohammed bin Rashid said would remain unchanged. On security, presidential adviser Anwar Gargash called for stronger joint Gulf defence, saying the attacks on Saudi Arabia threaten every Gulf state.
For travellers, Etihad now says it has cancelled all its Abu Dhabi–Riyadh flights until Monday 19 October. At sea, two Indian crew members were missing after a drone hit a UAE-owned tanker at Oman’s Sohar anchorage, according to reports on Monday.
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Federal budget sets spending through 2029
Sheikh Mohammed announced the Cabinet’s approval on Monday, with Dh90.1bn (about £18.5bn) allocated for 2027. Social development and benefits account for Dh34.6bn (about £7.1bn), or 38.4% of next year’s spending, while infrastructure and economic resources receive Dh3bn (about £617m).
“Our priorities remain fixed and unchanged,” Sheikh Mohammed said, listing education, health, housing, social services and citizens’ quality of life. These are federal allocations, separate from Dubai’s own spending programme.
Banks pay more to attract deposits
Demand for project finance is also pressuring banks. Bloomberg reports that UAE lenders are competing more aggressively for deposits as lending grows faster than money coming into customer accounts.
The report identifies infrastructure projects designed to bypass Hormuz as one source of credit demand. It also points to money moving into India’s special foreign-currency deposit programme for overseas Indians, although it provides no country-by-country breakdown of how much came from the UAE.
For savers, First Abu Dhabi Bank’s iSave account offers 5.6% a year on eligible new funds during a campaign running from 1 September to 31 December. UAE residents with a valid Emirates ID can open the account, with no minimum balance requirement or withdrawal limit.
That is an annualised rate, subject to the campaign terms. FAB measures new funds against the customer’s overall balance on 31 August, so readers should check which money qualifies and when the promotional interest will be credited.
Bloomberg says the sector’s loans-to-deposits ratio remains within regulatory comfort zones. Analysts quoted in the report nevertheless expect banks to pay more for the deposits they need to finance further lending.
Fresh Saudi attacks prompt calls for a response
The Saudi-led coalition said on Monday that it was dealing with fresh drone and cruise missile threats, Bloomberg reported, citing the Saudi Press Agency. The coalition said it had intercepted missiles and drones aimed at the kingdom overnight, including areas containing major oil and gas facilities, and promised a “decisive” response.
Saudi Energy Minister Prince Abdulaziz bin Salman told industry executives on Sunday that the kingdom remained committed to providing energy security, Bloomberg reported. At the World Petroleum Congress on Monday, he called for a serious response while urging continued attention to investment and economic diversification.
For the UAE, Gargash called for stronger Gulf security co-operation. Writing on X on Monday, the diplomatic adviser to President Sheikh Mohamed said the conflict had shown “that we are all targeted and that our security is indivisible”.
“Targeting our sisterly kingdom of Saudi Arabia undermines the security of the UAE and all Gulf states,” he wrote. He called for Gulf states to revive joint action, particularly in security and defence, and said a “serious shortcoming” in co-operation had “encouraged others to overstep against us”.
Gargash’s statement calls for governments to strengthen collective defence; it does not announce an agreed new force or deployment. What those governments agree to do is the next question.
Etihad extends Riyadh cancellations to 19 October
The airport attacks have already forced airlines to revise their schedules. Saudi Arabia’s General Authority of Civil Aviation said on Monday that King Khalid International Airport would remain closed while it completed safety checks, without giving a reopening date.
Etihad’s live notice, checked on Monday afternoon, says all Abu Dhabi–Riyadh flights are cancelled until Monday 19 October. All its Abu Dhabi–Dammam flights on Tuesday and Wednesday are also cancelled, while selected Jeddah services are affected through Thursday 15 October.
Separately, a flydubai representative told The National that services to Abha, Dammam and Riyadh were cancelled up to and including Wednesday 14 October. Check your own flight with the airline before setting out, rather than assuming another carrier’s cancellation deadline applies to your booking.
The UK’s Foreign, Commonwealth and Development Office advises against all but essential travel to Riyadh province, Jeddah and Dammam, as well as all Saudi airports except Medina International. It warns that travelling against its advice could invalidate travel insurance.
Saudi aviation authorities said Sunday’s attack on Riyadh airport killed a Pakistani resident and wounded 11 people, Gulf News reported. These figures are for Sunday’s strike and are separate from the casualties reported after Saturday’s attack.
Two Indian seafarers missing off Oman
Shipping faced further attacks on Sunday. A drone struck the product tanker Petro Dolphin at Sohar anchorage, India’s shipping minister Sarbananda Sonowal said. Maritime Executive describes the vessel as UAE-owned and operated.
Sonowal said nine Indian crew members had been rescued and were safe, while two Indian nationals remained missing. Local coastguard teams were searching for them, according to Monday’s Anadolu report.
In a separate incident, the crude tanker Valthera was hit by an unidentified projectile in the Strait of Hormuz on Sunday, starting a fire, the minister said, according to Argus. The vessel was carrying crude from Iraq’s Basrah terminal.
Iran says Washington’s reply falls short
Diplomatic exchanges continued alongside the shipping attacks. Iran’s security chief, Mohsen Rezaei, said on Sunday that Washington had accepted some of Tehran’s seven conditions for reopening Hormuz, but that its response, relayed through Qatar, was inadequate, Iran International reported.
The Iranian proposal offered to restore normal passage within seven days if Washington met its conditions, according to Gulf News. These accounts give Tehran’s version of the exchanges, without Washington confirming which conditions it has accepted.
Ukraine reports attacks after Trump’s ceasefire announcement
Another diplomatic claim hit an immediate snag on Monday. Volodymyr Zelensky said Russia had violated the Russia–Ukraine energy ceasefire Donald Trump announced over the weekend, Reuters reported.
Zelensky said he had learnt of the arrangement through the media and was waiting for details on the conditions Washington and Moscow agreed to. He said Ukraine would refrain from attacking Russian energy facilities if Russia did the same.
Trump also announced a purchase of Russian diesel, but the Reuters account said Moscow had yet to comment on the ceasefire. His announcement is therefore no basis yet for treating attacks on energy infrastructure as over.
What to watch today
Saudi Arabia: The coalition’s response to the latest attacks, any announcement of an airport reopening, and further airline cancellations.
Gulf defence: Whether other governments respond to Gargash’s call with specific proposals.
Shipping: News of the two missing Petro Dolphin crew members and further incidents near Omani or UAE anchorages.
Diplomacy: A US account of the Hormuz exchanges and details of the proposed Russia–Ukraine energy ceasefire.
Thank you for reading. Please share this edition with someone trying to keep up with the changes to Saudi travel or Gulf shipping.
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Emirates Wire uses AI tools to assist with research, early drafting, fact-checking and copy-editing. Steve Moore reviews, edits and personally approves every sentence before publication.