Good morning, friends. Violence between Iran and Israel has now entered its fifth day, and leaders across the region and abroad are working overtime to push the countries towards de-escalation.

US President Donald Trump called on everyone in Tehran to “immediately evacuate” in a post on Truth Social that came out at about 4am in the city of 9 mn people, spreading panic across the city and causing alarm across the world’s digital front pages. The news shortly followed Israel issuing evacuation orders to residents of a large part of Tehran, in an indication that was ramping up its attacks on the city. The death toll has now risen to 244 killed in Iran and 24 in Israel. (Financial Times | Bloomberg | Reuters | Associated Press | Guardian)

The UAE issued a joint statement with 21 countries from the Arab and muslim world to condemn Israel’s attacks on Iran and to call for an immediate halt to hostilities, the ruling out of targeting nuclear facilities, along with other demands. Cosignotaries included Saudi Arabia, Egypt, Iraq, Oman, Qatar, Kuwait, and Libya, among others.

Trump’s call for Russia to be readmitted to the G7 is also getting a lot of ink this morning, with the president describing the 2014 decision to kick the country out of the then-G8 as a “big mistake.” If Russia had remained in the group, the country wouldn’t have invaded Ukraine in 2022, he claimed. (Reuters | Guardian | New York Times)

THE BIG STORY here at home is news that non-oil trade grew 18.6% in 1Q 2025, with a forecast for AED 4 tn trade by 2027 — four years ahead of schedule. Plus: We have plenty of investment news, as Binghatti enters the asset management space, Dubai Investments-backed Global Fertility Network expands its IVF capacity in Saudi Arabia with another acquisition, and Eagle Hills launches a fund to finance the redevelopment of a hotel in Venice.

WEATHER- Dubai temperatures are set to see an afternoon high of 43°C today, though it will feel as hot as 55°C, according to our weather app, before cooling down a bit to an overnight low of 32°C. Temperatures in Abu Dhabi will hit 35°C with an overnight low of 31°C.

WATCH THIS SPACE-

#1- Santos shares jumps 10.9% following Adnoc-led takeover offer: Australian oil and gas producer Santos share price rose by 10.9% yesterday, closing at AUD 7.72 after receiving a non-binding USD 18.7 bn takeover bid from Adnoc’s international investment arm XRG, alongside Abu Dhabi sovereign wealth fund ADQ and private equity firm Carley, according to market data. The consortium will pay AUD 8.89 (USD 5.76) per share as part of the transaction, marking a 28% premium to Santos’ closing price of AUD 6.96 last Friday. Santos has already announced its intention to accept the offer, unless it receives a superior proposal.

#2– ENBD wraps up full takeover of EIB: Emirates NBD has settled all of its mandatory acquisition procedures for the full takeover of Emirates Islamic Bank (EIB), securing a 100% stake (up from 99.89%) in the Shariah-compliant lender, according to a disclosure (pdf) to the DFM. The Dubai bourse had delisted EIB’s shares last week after the completion of the takeover, and all remaining shares were registered in ENBD’s name. EIB will continue to operate independently under its current trade name and commercial license. The move caps a months-long acquisition process that began with ENBD’s AED 70 mn offer in February.

Market Reax: Emirates NBD’s stock gained 0.2% at market close yesterday, settling at AED 21.25.

#3- US’ Pharo hedge fund eyes Abu Dhabi expansion: New York-based hedge fund Pharo Management is in the early stages of setting up an office in Abu Dhabi, Bloomberg reports, citing people familiar with the matter. The USD 7 bn macro fund plans to relocate its Africa Fund team — currently based in New York and London — to the emirate, drawn by its proximity to African markets in terms of both time zones and travel. The new office is expected to be up and running by year-end. Pharo’s USD 819 mn Africa Fund has gained 11.8% YTD, according to the news outlet.

ICYMI- The move adds to Abu Dhabi’s growing hedge fund roster, which now includes Brevan Howard, PGIM, and Marshall Wace. Hudson Bay Capital is expected to open a second UAE office in the emirate by year-end, while Arini plans to set up shop by September.

#4- The Dubai Financial Services Authority (DFSA) launched phase two of its tokenization regulatory sandbox, kicking off engagement with firms selected for its innovation testing license program, it said in a statement. The sandbox drew 96 expressions of interest from across the UAE, UK, EU, Canada, Singapore, and Hong Kong after opening calls earlier in March.

REFRESHER- The sandbox allows firms to trial tokenized financial solutions in a controlled environment, offering a regulatory pathway for innovative use cases. Target participants include firms working with tokenized equities, bonds, sukuk, and fund units, as well as existing DFSA-authorized entities expanding into tokenization.

What’s next? Selected firms will begin live testing in the coming weeks, with bespoke plans co-developed alongside the regulator.

PSAs-

#1- Flydubai has extended its suspension of flights to Syria, Iran, Iraq, and Israel until Friday, 20 June, according to a statement. However, the airline announced it was set to resume select daytime operations to Jordan and Lebanon yesterday, and to Minsk and St. Petersburg starting from today. Emirates, Etihad Airways, and Air Arabia also cancelled some flights earlier this week.

#2- We’re getting a long weekend next week: The Federal Authority for Government Human Resources and the Human Resources and Emiratization Ministry confirmed that Friday, 27 June will mark the official Hijri new year holiday for the public and private sectors, according to statements (here and here).

#3- UAE waives pension fines for small firms: Small private-sector companies employing four or fewer Emiratis will be exempt from fines linked to late pension registrations and delayed end-of-service processing, as part the General Pension and Social Security Authority’s efforts to ease financial pressure on these businesses, Wam reports. The waiver covers penalties incurred between 1 January 2024 and 30 April 2025, and will benefit around 1.9k employers.

No action needed: Eligible firms will be contacted directly under the Zero Bureaucracy program. Companies that do not receive official notification are not included in the initiative.

HAPPENING TODAY-

#1- The US Federal Reserve’s Open Market Committee is meeting today and tomorrow to assess interest rates and economic outlook amid global and domestic uncertainty. The Fed is widely expected to maintain its current policy, keeping benchmark federal fund rates at 4.25%-4.50% during this week’s meeting as persistent tariff-related inflation and global uncertainties overshadow easing pressures, according to a Reuters poll of economists. Economists estimate the first cut won’t arrive until September, with another potential cut set to follow by the year-end.

#2- The Global South Economic Forum is taking place today at the Anwar Gargash Diplomatic Academy in Abu Dhabi, and will gather policymakers, experts, and technocrats. The forum will tackle the USD 4 tn gap faced by developing nations in development financing, and explore frameworks to strengthen economic ties and integration through trade blocs, according to a press release.

#3- The Middle East Event Show is happening today and tomorrow at the Dubai World Trade Center. Industry players from the events sector will meet for seminars, discussions, and networking sessions on the latest sector-specific trends.

#4- The Abu Dhabi Infrastructure Summit is also running today and tomorrow at the Abu Dhabi Energy Center. The event will see upwards of 70 speakers, 2k attendees, and 25 exhibitors meet to discuss urban planning, smart cities, mobility, energy, and healthcare.

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