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Middle East Edition
25th September 2026
 
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THE HOT STORY

UAE grounds Iranian airlines amid sanctions

The United Arab Emirates has suspended all flights operated by Iranian airlines, citing US sanctions targeting Iran’s aviation sector. The move aligns the UAE with Oman, Iraq, Azerbaijan, Georgia and Turkmenistan, which have also restricted Iranian carriers. Dubai had been a major destination for Iranian airlines, supported by extensive commercial links and a large Iranian community. The US measures target 27 airlines and supporting companies, warning airports and businesses that servicing sanctioned carriers could jeopardise their access to the US dollar system. Iran’s Civil Aviation Organization spokesman Majid Akhavan said “diplomatic and aviation talks are under way” to restore UAE services. Some Iranian airlines continue operating routes to China, Armenia and Turkiye.
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ARTIFICIAL INTELLIGENCE

AI's economic impact: opportunities and risks

The International Monetary Fund (IMF) highlighted in its 2026 Annual Report, "Navigating a Precarious World," that AI could significantly reshape productivity, investment, and labour markets. In 2025, AI-related investments contributed an estimated 0.5% to US GDP growth. However, while AI skills lead to higher earnings, middle-skilled workers face job displacement and wage depression. The IMF is working to mitigate economic risks associated with AI while promoting its benefits. "Workers with AI skills are benefiting," the report noted, but concerns remain about the overall job market impact.

BDB launches AI committee for growth

Bahrain Development Bank (BDB) has formed an AI Committee to oversee the responsible integration of Artificial Intelligence within the organisation. Chaired by Dalal Al Qais, group chief executive, the committee aims to enhance productivity, operational efficiency, and decision-making. It includes members from various departments and will establish a governance framework and priorities for AI initiatives. Al Qais said: "AI presents a significant opportunity to reimagine the way we operate." The committee's work aligns with BDB's three-year growth strategy, focusing on areas with potential business impact.

Meta's muse AI tests human touch

Meta is testing a "human concierge" feature for its Muse AI agent, allowing contractors to handle some phone calls. This follows the introduction of Muse's phone-calling capability, which enables users to request tasks like booking appointments. Some employees raised privacy concerns about sharing sensitive information with human agents. Meta stated that feedback from internal testing has been "overwhelmingly positive" and emphasised the importance of ensuring safety and privacy before a public rollout. The app has seen over 2.5m downloads since its launch on September 8.
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WORKFORCE

Sri Lanka and Qatar strengthen ties

Sri Lanka's Deputy Minister of Foreign Affairs, H E Arun Hemachandra, recently visited Qatar to enhance bilateral relations. He described the relationship as "very smooth" and expressed a desire to expand cooperation beyond employment to include investment, development assistance, and energy security. Hemachandra highlighted the importance of skilled employment and discussed welfare for Sri Lankan workers. He noted the government's commitment to protecting migrant workers and introduced the Lanka Connect mobile app for reporting issues. The visit aimed to strengthen ties as both countries celebrate 50 years of diplomatic relations.

Saudi Arabia eases exit visa rules

The Saudi General Directorate of Passports has allowed employers to issue final exit visas for domestic workers without residency permits via the Absher platform during a 90-day probation period. Conditions include the worker not being registered as deceased or absent, having a clean traffic record, and a passport valid for at least 60 days. The Ministry of Human Resources and Social Development mandates a written contract for the probation period, during which either party can terminate the contract. A worker cannot be placed on probation more than once with the same employer unless agreed otherwise.

Transforming jobseeking in the GCC

Rehna Shajahan founded Mission Employment, a free community connecting over 100,000 jobseekers and recruiters across the GCC. The initiative began in the UAE in early 2025, aiming to simplify job searching by removing barriers between candidates and employers. Rehna emphasises safety, urging recruiters to provide verifiable information and advising jobseekers against sharing sensitive data. Despite challenges, she remains dedicated to helping others, stating: "Behind every CV is a real person carrying responsibilities, fears and hopes." Her goal is to register Mission Employment as an NGO to further support jobseekers in the region.
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ECONOMY

Turkey's growth forecast slashed again

The OECD has revised Turkey's economic growth forecast for 2026 down to 2.7%, marking the lowest rate since 2020. The report, titled “Navigating Successive Shocks,” also lowered the 2027 forecast to 3.6%. Rising energy and fertilizer prices, alongside the impact of the war in Iran, are contributing factors. Despite these challenges, the OECD anticipates a continuation of Turkey's disinflation process, with inflation projected at 31.5% in 2026. The OECD noted: "Significant uncertainty continues to hang over its forecasts, particularly in energy markets."
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INVESTMENT

GCC and North Africa hotel boom

The GCC and North Africa are set to add nearly 200,000 hotel rooms, boosting supply by 27%, according to a report from HVS ahead of the Future Hospitality Summit 2026 in Dubai. Saudi Arabia leads this expansion with 110,000 rooms, while Egypt and the UAE follow with 42,000 and ongoing developments, respectively. Hala Matar Choufany, President at HVS, said: "The hotel development pipeline across the GCC and North Africa remains one of the most significant globally." The report highlights a shift towards mixed-use developments and disciplined capital deployment in the region's hospitality sector.
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HIRING

Men 'will hire more women' after birth of first daughter

Research from Aarhus University in Denmark suggests that male managers are more likely to hire women and promote them after the birth of their first daughter. The study, published in the Review of Economic Studies, found that women's earnings relative to men improved by 4.4% and female employment rose by 2.9% in small Danish firms. The researchers said that when a male manager had his first daughter, regardless of whether he had any older sons, "women's pay and employment in their firms increase significantly." They added: "In short: becoming a . . . father [to a daughter] appears to make bosses more inclined to hire women and to pay them better."
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HEALTH & SAFETY

Heat stress crackdown: 644 violations found

The Ministry of Labour in Qatar reported 644 violations and closed 388 non-compliant work sites during the 2026 Heat Stress Prevention Campaign. The initiative involved 1,638 inspections aimed at enforcing heat-stress prevention and occupational safety standards. The Ministry noted that the closures reflect direct enforcement against non-compliant entities. Additionally, the campaign included 522 field awareness visits and 30 seminars, benefiting 3,555 individuals. The Ministry emphasised the importance of preventive awareness alongside enforcement to encourage compliance with safety standards and reduce heat exposure risks in workplaces.

Stay cool: Dubai Police aids workers

Dubai Police has launched a "Sun Protection" initiative to assist 120 workers in avoiding heat stress during outdoor duties. The campaign promotes hydration, regular breaks, and sun protection. Colonel Hamad Rashid Al Marri, Deputy Director of the General Department of Correctional and Punitive Institutions, stated: "The initiative aims to increase awareness of proper preventive practices." Fatima Bohjair, Chairperson of the Positive Spirit Council, emphasised the need for sustainable habits to protect workers from sun exposure. The initiative concluded with the distribution of umbrellas and hydration supplies to reinforce safety awareness.
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TRAINING & DEVELOPMENT

Empowering Bahrain's youth for aviation

Gulf Air and Bahrain Airport Company (BAC) have launched several initiatives aimed at empowering Bahraini youth and enhancing workforce readiness. These programmes include the Summer Internship Programme, which provided 135 university students with practical industry experience, and the FLY Summer Internship Programme for 39 school students. Additionally, the Social Work Programme engaged 60 participants, while the I CAMP Programme, in collaboration with INJAZ Bahrain, inspired young talents. Mohamed Matar, chief people officer of Gulf Air Group, emphasised the importance of investing in youth for Bahrain's future and the need for skilled professionals in the aviation sector.
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INTERNATIONAL

First Nations workers in Australia paid 16% less per hour

The University of Technology Sydney's Centre for Indigenous People and Work and Indigenous Business Australia has released a report which indicates that Indigenous workers in Australia earn 16% less per hour than their non-Indigenous counterparts. The report attributes the disparity to systemic issues, and estimates that the pay gap could result in $170bn in lost income by 2050. It made a number of recommendations to create fairer pay and employment structures, including the placing of a positive duty on employers to prevent racial discrimination, in the same way they must prevent sex discrimination. Other recommendations in the report include improving Indigenous employment data collection, and for cultural skills to be valued properly when wages are set.

‘Very sensitive' FBI employee data breached

The FBI is investigating a breach of its jobs website, FBIjobs.gov, which has reportedly exposed "very sensitive data" on nearly all FBI agents and job applicants, including granular detail about ​officials' job assignments, such as sensitive work against Chinese spies, Russian ‌intelligence, drug cartels, and more. The hacker group ShinyHunters has claimed responsibility for the breach. The FBI said the hacker group had “compromised very sensitive data on almost ALL FBI Agents and individuals who filed an application with the FBI for a job.” The website, which remained offline Wednesday, is the main portal for prospective employees to learn about the FBI and initiate the application process.

AI forces companies to rethink entry-level hiring

AI is increasingly taking over tasks traditionally assigned to junior employees, raising concerns about career advancement and skill development for young workers. Tobias Green, founder of London-based ad agency Catalyst, notes that AI tools now enable one junior employee to manage five client accounts, reducing the need for multiple hires. The Open University’s 2026 Business Barometer report found that 51% of UK business leaders believe AI is changing hiring practices, with 19% reducing entry-level recruitment due to AI adoption. While AI is enhancing productivity, experts like Cheney Hamilton, director at UK research firm Bloor, warn that it may hinder the development of critical judgment skills in junior workers, arguing: “AI raises the floor of what a junior can produce, but it doesn't give them the judgement to know when the output is wrong.”

Italy supports women's cybersecurity project in Ethiopia

The Italian Embassy in Ethiopia has launched the Her CyberTracks training project, co-funded by the Italian Ministry of Foreign Affairs and the European Union. The initiative aims to empower 60 female cybersecurity experts from over 29 African countries. The five-month programme focuses on developing technical and policy skills, alongside networking and mentoring opportunities. The project addresses the barriers women face in cybersecurity, and aims to create a more inclusive digital landscape. "Her CyberTracks aims to change this situation," said Luca Carpintieri, Chargé d'Affaires of the Italian Embassy, who attended the launch event. 
 
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