I call that screen lifting and its a huge problem with modern phones. The displays are basically a sandwich and its not uncommon for part of it to fail and lift like that.
If it were me, I'd take the screen off and try some sort of LOCA. You want to use something permanent and thin that won't gum up other parts of the phone.
First I would contact Google about the issue. I have never been let down when I contacted them for customer support and I would be very interested to hear how they handle this. If they send you a new phone to the UAE, awesome. If not, a tube of LOCA and a UV light should get it fixed.