Good morning, wonderful people, and welcome to the start of another week. We hope you had a restful long weekend — and that those of you who chose to spend your Eid break around the country enjoyed the surprisingly pleasant weather.

THE BIG STORY AT HOME is the UAE’s non-oil activity growing at its slowest pace in nearly four years last month, with output weighed down by global economic uncertainty. Still, non-oil private sector continued to record growth during the month, while employment grew at its strongest rate this year.

WATCH THIS SPACE-

#1- Security concerns stall UAE-US AI megaproject: Ongoing security concerns over how to prevent the diversion of advanced American technology mean a USD multi bn agreement to build one of the world’s largest AI data center hubs in Abu Dhabi is still “far from” being finalized, Reuters reports, citing unnamed sources. There is still no clear enforcement framework in place to restrict Chinese tech or personnel at the site, and the US has yet to define the conditions under which the chips can be exported, the sources say.

ICYMI- The 5 GW project is the centerpiece of a USD 200 bn US-UAE investment pact — spanning AI, critical minerals, and energy — signed during Trump’s visit to the UAE last month. The facility is designed to be the largest data infrastructure site outside the US, and will host American-managed services and serve as a regional AI hub if the remaining hurdles can be cleared. The first phase of the complex, Stargate UAE, is set to come online in 2026.

REMEMBER- Security talks have dragged on: Both the Biden and Trump administrations have voiced persistent concerns over the UAE’s historic ties to China. In response, G42 divested all its holdings in Chinese firms last year to “reassure” US partners. The move helped unlock access to US tech, including via Microsoft’s USD 1.5 bn investment in G42.

What now? Four sources told Reuters that there is currently no timeline for concluding the agreement, and that final terms could still evolve, with expected provisions including strict bans on Chinese nationals and technologies, and full alignment with US security protocols.

#2- Five Holdings eyes London or New York IPO: Dubai-based hospitality group Five Holdings is exploring a listing in London or New York, Reuters reports, citing people with knowledge of the matter. Last year its chairman Kabir Mulchandani said a dual listing was on the cards for the firm, which is set to start the listing process by late 2025. The group reportedly tapped Citi and Deutsche Bank last year to work on its planned initial public offering on the DFM.

#3- Hong Kong-based real estate PE fund manager Gaw Capital is looking to focus on real estate assets in the UAE and Saudi Arabia as it ramps up its investments in the Middle East, Managing Principal and Global Head of Capital Markets Christina Gaw told Reuters. The firm is on track to finalize an undisclosed transaction in the region in 2H 2025 and is also planning to set up a dedicated vehicle for its ventures in the Middle East. Gaw Capital’s first investment in the UAE was an AED 586 mn residential building bought from Aldar Properties. The firm had USD 34.4 bn in AUM by the end of 2024.

#4- London-based hedge fund Arini is reportedly planning to set up an Abu Dhabi office by September, with regulatory approvals in the process, Bloomberg reports, citing sources familiar with the matter. Arini, which was founded by former Credit Suisse trader Hamza Lemssouguer (LinkedIn), manages USD 9 bn in assets. Jeysson Abergel (LinkedIn), Arini’s London head of trading, will head up operations in the emirate.

#5- DP World is looking to acquire new projects in Turkey and Eastern Europe, the region’s executive VP Kris Adams told The National. The firm is exploring the possibility of entering the markets, which due to its fragmented nature, requires some consolidation, Adams added. The firms’ revenues from the region are on the up, despite geopolitical tensions, as it looks to tap further into Turkey’s USD 92 bn logistics market. Currently, the firm’s regional presence includes operating terminals in Romania, Bulgaria, Moldova, Albania, Montenegro, Serbia, Cyprus and Greece.

PSAs-

Dubai’s Roads and Transport Authority will roll out traffic improvements at 40 locations between June and September this year, covering 22 major roads, nine school zones, and key development areas like Al Khawaneej 2 and Nad Al Sheba, according to a statement.

Work will focus on easing congestion and improving safety, with upgrades across roads such as Ras Al Khor, King Salman Street, and Al Meydan. Internal roadworks and pedestrian paths are also planned in Tolerance District and Al Quoz Creative Zone.

HAPPENING THIS WEEK-

Investopia Global – Mediterranean is happening tomorrow in Cyprus. The event brings together policymakers, business leaders, and investors to discuss economic growth in various sectors across the UAE and Mediterranean region. Key topics include trade, energy transition, and regional collaboration.

The China Home Life Expo is taking place from Wednesday until Friday at the Dubai World Trade Center. The event will showcase a wide range of Chinese consumer products including building materials, textiles, consumer materials, and will connect manufacturers and buyers from across the region.

The International Appliances and Electronics Show will also be kicking off on Wednesday and running until Friday at the Dubai World Trade Center. The exhibition showcases the latest advancements in home appliances and consumer electronics, featuring product launches, technology showcases, and networking chances.

THE BIG STORY ABROAD-

The international press is squarely focused this morning on ongoing protests in California against immigration raids around the US led by the country’s Immigration and Customs Enforcement (ICE). The demonstrations — which saw clashes between protesters and ICE officials — took another tense turn on Sunday as US President Donald Trump ordered the deployment of the National Guard in California. The story is leading the front pages of Reuters, CNBC, Bloomberg, the Financial Times, and the Wall Street Journal.

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Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

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