Happy Sunday everyone!

In today’s roundup: Lebanon is betting on Gulf tourists to rescue its economy, with Tourism Minister Laura Lahoud calling luxury travel a “main objective” amid crisis and war fallout. Meanwhile, Dubai’s rental market is expected to stabilise in 2025 as over 72,000 new homes enter the market, easing pressure on tenants, The National reports. And in the UAE, experts warn that while AI tools like ChatGPT offer comfort, they risk delaying critical mental health treatment by mimicking real therapists, especially for young users seeking anonymous emotional support.

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Lebanon is Looking at Gulf Tourists to Revive Crippled Economy Amid Crises: Tourism Minister

🔹 What Is It About

Lebanon is turning to luxury tourism and Gulf visitors in a last-ditch effort to rescue its collapsed economy. With the currency in freefall and the banking sector paralyzed, private investors are keeping Beirut’s nightlife and hospitality scene alive through dollar-based ventures. “If Lebanon remains neutral… we can save the season,” Tourism Minister Laura Lahoud told Arab News, pointing to Gulf countries lifting travel bans and a fragile regional ceasefire as key factors.

🔹 Why It Matters

Tourism now accounts for nearly 30% of Lebanon’s GDP — a rise driven not by growth but by economic collapse elsewhere. “Rebuilding tourist confidence in Lebanon is the main objective,” Lahoud emphasized. But experts warn this dollarized model is unsustainable, pricing locals out and leaving the sector vulnerable to regional instability. The country’s reliance on short-term Gulf spending exposes it to major risks if tensions escalate.

🔹 What’s Next

Lebanon plans to roll out airport upgrades, digital tourism tools, and visa reforms to attract GCC families year-round. Yet tourism leaders remain cautious. “Tourists come for a short time, but it’s locals who keep bars running,” said Beirut bartender Lynn Abi Ghanem. The outlook hinges on political stability and security — with even minor conflicts threatening to derail Lebanon’s fragile recovery.

Markets

Dubai’s Rental Market to Stabilise as 72,000 New Homes Enter Market in 2025: The National reports

🔹 What Is It About

Dubai’s rental market is showing signs of stabilisation as over 72,000 new homes are expected to be handed over this year, according to a joint report by Bayut and dubizzle. “The pressure on rents is slowly starting to ease, offering more breathing room and better choices for tenants,” Haider Ali Khan, CEO of Bayut and Dubizzle Group Mena was quoted as saying by The National. The supply boost coincides with increased interest in homeownership, supported by Dubai Land Department’s first-time buyer initiative.

🔹 Why It Matters

After a period of rapid rent hikes, the influx of supply is beginning to moderate prices across segments. Luxury apartment rents fell by up to 5%, while mid-tier rents rose modestly. Affordable areas like Bur Dubai and Deira saw slight rent declines. “With the rent-versus-buy debate picking up… we’re seeing more people take a serious look at home ownership,” Khan said, noting that government-backed initiatives and attractive financing options are encouraging long-term investment.

🔹 What’s Next

Tenants can expect more balanced pricing and greater choice, particularly in newer communities. Meanwhile, villa rentals remain competitive due to tight supply, with Dubai Hills Estate seeing luxury villa rents surge up to 53%. As demand remains strong and yields attractive, especially in prime communities, experts believe the market will continue to favour both investors and first-time buyers, depending on how fast supply catches up across all segments.

UAE Experts Warn AI May Feel Like 'Real' Therapist but Risk Delaying Mental Health Treatment

🔹 What Is It About

Young UAE residents are increasingly turning to AI platforms like ChatGPT for emotional support, blurring the line between self-help and professional care, according to mental health experts interviewed by Khaleej Times. “It became like a coach… helping me understand myself better,” said 27-year-old Sara, who uses the chatbot during panic attacks and emotionally difficult moments. Its 24/7 availability and non-judgmental tone make it feel like a safe, private space.

🔹 Why It Matters

Psychiatrists warn that AI’s accessibility can lead users—especially younger ones—to confuse automated support with professional therapy. “It’s concerning that some chatbots are presenting themselves as therapists,” said Dr Waleed Alomar of Medcare Royal Speciality Hospital. “This can delay users from getting real help when it’s needed most.” AI lacks the ability to detect clinical severity and cannot intervene in mental health crises, increasing the risk of prolonged suffering or misjudged self-diagnosis.

🔹 What’s Next

Experts urge users to treat AI as a helpful but limited tool—not a replacement for therapy. “Use it as a tool, but don’t let it take over,” said Dr Alexandre Machado from Hakkini mental health clinic. While AI can offer comfort and anonymity, it should guide users toward professional care, not replace it. More public education, ethical guidelines, and integrated mental health pathways may be key to safely leveraging AI in this space.

👨‍💻From Smashi Business’ Desk

• Dreamers: Saudi billionaire Prince Alwaleed bin Talal—one of the Middle East’s most influential investors — is back in the spotlight.

• Sequoia Capital partner Shaun Maguire is once again under fire—this time for targeting Zohran Mamdani’s former intern, Hadeeqa Malik, a City College student.

• The ICP has debunked viral rumours claiming Indians and Bangladeshis can buy a lifetime Golden Visa for AED 100,000.

🔍In other news…

• Remittance relief for UAE expats - no fee hike

• Saudi Arabia allows foreigners to own property

• Gulf News Throws Light on Debenhams shutting its stores in Dubai Mall and Mirdiff City Centre

• Dubai tokenization platform Prypco Mint sells out another property - this time in under 5 minutes

• UAE Central Bank revokes license of Al Khazna insurance company

• Lulu adds another hypermarket in Saudi Arabia as it seeks revenue boost

• Huawei launches next-gen devices at ‘Fashion Next’ showcase in Dubai

🏦Crypto Corner

• BTC smashed its 6th all-time high in 48 hours, soaring past $118,600!

• You can soon use crypto when paying at Dubai Duty Free and when flying Emirates in new landmark deal

• UAE authority clarifies no Golden Visa issuance for crypto investors

• Dubai Land Department teams up with Crypto.com on digital real estate investment plan

• Bitcoin Miner Tied to Trump Sons Plans Dubai Crypto Trading Team

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