Good morning, friends, and happy FRIDAY. It has been a particularly busy week as far as local news is concerned, and today is no exception. We close out the week with a slew of debt, M&A, maco, and capital markets updates.

A handful of big stories are vying for your attention this morning:

  • The UAE’s non-oil sector was hit by a demand slump following the escalation of regional tensions, but it maintained its growth trajectory;
  • Abu Dhabi’s GDP grew 3.4% in 1Q 2025, propelled by the non-oil sector;
  • First Abu Dhabi Bank is issuing the MENA region’s first ever digital bond, with the help of our friends at HSBC and ADX;
  • and Burjeel Holdings acquired a Riyadh-based physiotherapy center as part of its ongoing expansion drive.

^^ We have everything on these stories and more in the news well, below.

WEATHER- Dubai will see a high of 42°C, before cooling to 31°C overnight. Temperatures in Abu Dhabi will hit 35°C, before cooling to an overnight low of 32°C.

WATCH THIS SPACE-

#1- EU antitrust regulators have resumed their review of Adnoc’s EUR 14.7 bn acquisition of chemicals firm Covestro and pushed the deadline for its decision to 28 July, Reuters reports, citing an update on the European Commission website. Regulators had suspended the review earlier in June as it awaited additional information from the two companies, which it has now received.

REMEMBER- The pending acquisition, which was approved under EU merger rules in May, is now being reviewed under the bloc's foreign subsidies regulation, which examines potentially unfair government support to companies

#2- The Abu Dhabi Investment Authority (ADIA) and PE firms KKR and CVC are among several parties eyeing a minority stake in utilities firm Aggreko in a transaction that could value it at some USD 12 bn, Bloomberg reports, citing people familiar with the matter. Aggreko’s owners, TDR Capital and I Squared Capital, are looking to sell up to 30% of the firm, though talks are still at early stages. The firm is the world’s biggest supplier of modular power, heating, and cooling equipment, which it provides to energy and construction firms, as well as events. It has some 9.6 GW in fleet capacity.

It’s not clear if ADIA would approach the potential acquisition as part of a consortium with the PE firms or independently, though it would not be the first time ADIA partners up with either firm. Alongside CVC, it acquired UK Hargreaves Lansdown for GBP 5.4 bn as part of a consortium with Nordic Capital; and attempted a EUR 14 bn takeover of DB Schenker, the logistics subsidiary of Germany's Deutsche Bahn. It also teamed up with KKR for a USD 1.5 bn investment in India’s Reliance Retail’s warehousing assets.

#3- French multinational aerospace and defense firm Thales is in talks to open an artificial intelligence research center in Abu Dhabi, the firm’s International Development vice-president Pascale Sourisse told The National. This would be the French defense group’s first AI center in the Middle East. The centers, dubbed cortAIx labs, come as the firm works on the construction of a UAE-based Ground Master radar factory announced in, set to launch operations in 2027.

#4- Flying taxis coming to Ajman next? Ajman’s Transport Authority has inked an agreement with UK-based eVTOL infrastructure provider Skyports Infrastructure to explore smart air mobility solutions, including flying taxi services, Wam reports. The agreement covers collaboration on research, infrastructure planning , site identification, and drone applications in critical sectors.

The UAE is on an eVTOL roll, with Joby Aviation and Dubai’s Roads and Transport Authority completing the region’s first Joby air taxi test flight earlier this week. The Abu Dhabi Investment Office also tested their passenger eVTOL aircraft last month, and Archer Aviation completed the first test flight for its Midnight eVTOL aircraft set to launch in Abu Dhabi soon. The GCAA granted design approval for the country’s first hybrid heliport at the Abu Dhabi Cruise Terminal in Zayed Port back in April and passed regulations for the shared use of infrastructure by helicopters and eVTOLs.

#5- New proptech hub lands in DIFC: Dubai International Financial Center (DIFC) and Dubai Land Department (DLD) have launched the region’s first PropTech hub at the DIFC Innovation Hub, according to the Dubai Media Office. The Dubai PropTech Hub will support over 200 start-ups and scale-ups, create over 3k jobs, and attract more than USD 300 mn in investment by the end of the decade.

A closer look: The hub will offer flexible licenses, physical workspace, and end-to-end support from concept to commercialization — including venture building, regulatory sandbox access, pilot programmes, and early-stage incubation — as it looks to bring more startups and investment to the proptech market. The hub will also include a multi-stakeholder collaboration model, including investors, regulators, and developers, and founding partners like Binghatti, Majid Al Futtaim, Sobha Realty, and Union Properties are already exploring collaboration with DIFC Innovation Hub-led pilots.

PSA-

New social media rules for UAE student visa applicants: UAE residents applying for F, M, or J class US visas must now set all social media profiles to public before their appointments, the US Embassy in the UAE said in a statement.

Why? The move follows a US State Department directive mandating “comprehensive and thorough vetting” of applicants’ entire online presence — not just on social media — to flag potential derogatory content or signs of “hostile attitudes” toward the US, Reuters reports. It comes ahead of the resumption of student and exchange visa scheduling, which had been paused since late May under orders from the Trump administration.

It could be harder to get an appointment: Visa officers have been instructed to reduce appointment volumes if needed due to heavier vetting workloads, with priority given to certain medical exchange programs and students heading to US universities with less than 15% international enrollment, Khaleej Times reports.

THE BIG STORY ABROAD-

US President Donald Trump’s “big, beautiful bill” is officially on its way to his office for ratification after the House narrowly passed it ahead of their Friday deadline. The bill marks a massive victory for Trump, who is using it to fund his domestic agenda, which includes new military spending plans, tax cuts, and a crackdown on illegal immigration. It will also see cuts to spending on healthcare and a reversal of most of former president Joe Biden’s clean energy subsidies and breaks.

The bill is set to add some USD 3.4 tn in debt to the economy, raising concerns over the US’ fiscal trajectory. The debt ceiling will be raised by USD 5 tn to avoid a default. (Bloomberg | Reuters | Wall Street Journal | Financial Times | New York Times)

PLUS- Trump says he will begin to notify countries of their reciprocal tariff rates today ahead of the 9 July deadline when the 90-day pause on the tariffs expires. The UAE, along with the rest of the GCC, will see a 10% tariff slapped on their exports to the US. (Bloomberg)

Closer to home, Israel is reportedly ramping up airstrikes on Gaza and ordering more mass evacuations as a potential 60-day ceasefire hangs in the balance. Israel has already accepted the proposal, Trump said previously, with the proposal now with Hamas, who is reportedly looking to secure guarantees that the ceasefire will pave the way for a permanent end to the war. Yesterday’s attacks have killed at least 60. (Bloomberg | Reuters)

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