Good morning, wonderful people. It’s another busy newsday as we inch closer to the weekend, with a lot of M&A and regulatory updates — plus plenty of analysis into the region’s equity and debt capital markets’ performance this year.

The big story of the day is the latest trade figures for 1H 2025, which saw another strong showing for non-oil exports. Plus: Gulf Capital wrapped a successful exit for Art Fertility’s operations in the Middle East, selling it to a KKR-backed fertility network. And, for the social media influencers among you, the Media Council is now making it mandatory for all content creators with promotional content to obtain an advertising permit.

BUT FIRST- The Central Bank of the UAE held interest rates steady for the fifth time in a row, following in the footsteps of the US Federal Reserve, according to a statement (pdf). The base rate applicable to the overnight deposit facility remains at 4.4%, while the rate applicable to borrowing short-term liquidity was kept at 50 bps above the base rate for all standing credit facilities.

We have more on the Fed’s decision in Planet Finance, below, and a deep dive into the outlook for debt and equity markets ahead of the potential resumption of its easing cycle later this year in this morning’s Capital Markets section.

WEATHER– The mercury in Dubai peaks at 45°C, dropping to a sticky 34°C after sunset. Abu Dhabi will also see temperatures reach 45°C, with a humid night ahead at 34°C.

WATCH THIS SPACE-

#1- Dubai Taxi open to a follow-on offering on DFM: State-backed and DFM-listed mobility provider Dubai Taxi may return to the Dubai bourse with an additional stake sale if conditions align, CEO Mansour Al Falasi told Asharq Business in an interview (watch: runtime:12:05), adding that any move would hinge on regulatory and shareholder sign-off, without providing a possible timeline.

ICYMI- The taxi operator, which floated a 25% stake on the DFM in 2023 in a listing that raised USD 315 mn, posted strong 2Q results with its bottom line rising 32.8% y-o-y to AED 105.4 mn.

It’s been a quiet year for IPOs, with just one listing each so far in Dubai and Abu Dhabi. Dubai Residential REIT raised AED 2.1 bn in its IPO, while Alpha Data’s ADX debut had raised AED 600 mn earlier in the year.

Also in the pipeline: Dubai Holding is said to be mulling a second IPO for a portfolio of commercial real estate assets, including malls, hotels, and theme parks; ADQ-backed Etihad Airways and Abu Dhabi conglomerate International Holding Company’s investment arm 2PointZero are also planning to hit the ADX; family-owned property developer Arabian Construction Company (ACC) reportedly enlisted HSBC and First Abu Dhabi Bank to advise on its IPO due in 2H; and Dubizzle and Property Finder were gauging investor appetite ahead of potential listings.

#2- ADGM wants to expand the scope of its authority with new amendments: The ADGM Financial Services Regulatory Authority (FSRA) launched a public consultation on proposed updates to expand the scope of its power as it looks to tighten security and oversight, according to a press release. The Consultation Paper (pdf) will be open to industry feedback until 27 August.

Proposed changes include:

  • An explicit prohibition on misleading conduct relating to regulated activities, investments, virtual assets, fiat currency and tokens, and spot commodities;
  • Expanding its authority to allow it to suspend financial service permits temporarily if investigations are warranted, and to apply restrictions on certain permits or additional monitoring requirements on a case-by-case basis;
  • and requiring all firms offering funds — even those who are not incorporated as fund managers — to issue a complying prospectus to investors.

#3- UK’s Tyrus Capital relocates to Abu Dhabi: UK-based hedge fund Tyrus Capital is moving to Abu Dhabi as it shuts down its London operations, Bloomberg reports. The firm’s ADGM entity is already incorporated, and comes as more firms are looking to take advantage of the Emirates’ tax environment, favorable timezones for trading, and deep capital pools from sovereign wealth funds and family offices.

The UK’s loss is the UAE’s gain: Tyrus joins a stream of companies leaving the UK following tax hikes and the removal of tax breaks for non-domiciled residents. Some 2.6k UK-based companies opened offices in Dubai last year, a 14.2% increase from the previous year, according to data from the Dubai Chamber of Commerce. The UAE is also set to be the biggest beneficiary of a wealth exodus from the UK this year, with the UK set to see a historic net outflow of 16.5k high-net-worth individuals (HNWIs) — the largest ever recorded globally — and the UAE set to welcome some 9.8k m’naires this year.

#4- Arabian Drilling sets up shop in Sharjah: Saudi’s Arabian Drilling launched a new Sharjah branch to serve as its regional operations hub, according to a disclosure to Saudi’s Tadawul. The firm is looking to expand outside of the Kingdom to bypass long-term offshore suspensions, CEO Ghassan Mirdad told Al Arabiya (watch, runtime: 8:08). The company is adopting a two-pronged expansion approach, including direct contracts — with one already under its belt — and an alliance with Shelf Drilling, which resulted in eight to 10 additional tenders.

#5- Applications for the Dubai Land Department’s Reach Middle East accelerator program are now open, according to a press release. The eight-month program will provide 10 startups with USD 250k in seed capital each, along with mentorship and networking with strategic investors and real estate developers and government departments to pilot and commercialize projects. The DLD also partnered with Second Century Ventures for the program. Have a proptech and looking for extra funding and support? You can apply here.

THE BIG STORY ABROAD-

The US’ latest trade agreements ahead of tomorrow’s deadline are still getting top billing in the foreign press, along with a handful of Big Tech earnings and fresh sanctions on Iran.

#1- The US and South Korea reached a trade agreement, setting a 15% tariff on South Korean exports to the US, in exchange for USD 350 bn in investments in US-owned projects selected by US President Donald Trump, Trump said on Truth Social. This is in addition to USD 100 bn in energy investments in the US. This follows a similar structure to the agreement with the UK and Japan, which also pledged investments in exchange for lower tariffs. (Reuters | Bloomberg | Financial Times | Politico | Axios)

Not yet as lucky? India, which could face a 25% tariff on its exports to the US as of tomorrow if ongoing talks end with no agreement. (Bloomberg | Guardian)

ALSO- The US economy rebounded in 2Q 2025, growing 3% after contracting in the first quarter of the year, on the back of strong consumer spending and a turnaround in the trade balance. (CNBC | Wall Street Journal | Bloomberg)

#2- Microsoft and Meta are both spending big on AI, after reporting strong quarterly earnings. Microsoft, which is set to become the second company to reach a market cap of USD 4 tn, is penciling in USD 30 bn in capital expenditures in its first quarter of its fiscal year, while Meta pledged to spend more from its advertising revenues well into 2026. Both companies’ shares rose more than 9% in afterhours trading on the news. (CNBC | Financial Times | Bloomberg | Reuters)

#3- The US doubled down on its pressure campaign on Iran with sweeping new sanctions on 115-linked Iranian individuals and businesses, broadly targeting the shipping business of Hossein Shamkhani, the son of senior adviser to Supreme Leader Ayatollah Ali Khamenei. (Bloomberg | Reuters)

#4- ALSO- Canada is now the latest to pledge recognition of the Palestinian state at September’s UN summit, following in the footsteps of France and the UK. (Bloomberg)

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