Good morning, friends, and happy FRIDAY. We wrap this busy week with another packed issue, led by news that the UAE has already seen some USD 5.4 bn in greenfield FDI in 1H, though that’s down slightly from the same time last year. We also have a stream of earnings from e&, Borouge, PureHealth, and more, and another investment from Mubadala.

JUST IN- Israel has pulled most of its diplomatic staff from the UAE, Reuters reports, amid what it said were concerns over Israelis’ safety as more “terrorist organizations” — it said in reference to Hamas, Iran, and others — increase efforts to “harm Israel,” the government said in a statement.

WEATHER- Dubai will hit a scorching 46°C today, cooling to a humid 32°C overnight. Abu Dhabi will see a slightly milder 45°C, with humidity sticking around as temperatures settle to 36°C this evening.

WATCH THIS SPACE-

#1- ADX-listed Adnoc Drilling is eyeing a second acquisition in Kuwait and Oman this year or in early 2026, Bloomberg reports citing CFO Youssef Salem. Salem said the transaction would be similar in size and structure to the May USD 112 mn purchase of the land drilling businesses of US oil and gas wells drilling company Schlumberger Middle East (SLB) in Kuwait and Oman, which means it could also include an earnout clause.

Also in the pipeline: He also noted that Adnoc Drilling is on track to close two more acquisitions for technology-linked services companies by year-end, valued at around USD 350 mn, through its Enersol joint venture with Alpha Dhabi Holding.

ICYMI- Adnoc Drilling’s 2Q earnings beat estimates: The firm’s net income rose 19% y-o-y to USD 351 mn in 2Q 2025, while revenue for the quarter climbed 27.9% y-o-y to USD 1.2 bn, supported by continued rig fleet expansion and rising demand for onshore and oilfield services.

#2- Gulf Capital eyes three or four more exits over the next year and a half: Gulf Capital is working on three to four exits in the healthcare and fintech sectors worth over USD 1 bn, the firm’s managing director of private equity Hazem Abu Khalaf told Asharq Business (watch, runtime: 4:45). The exits can be expected within the next 18 months, he said, and come after the firm offloaded its majority stake in Art Fertility earlier this week.

Same strategy, new fund: The firm is planning to soon launch its fourth private equity fund in the range of USD 800 mn to 1 bn, which will acquire majority stakes in consumer, healthcare, and fintech firms. The firm’s strategy is to hold investments for five to six years — enough time to ensure it’ll see a significant return, Al Khalaf said.

#3- Dubai-based investment firm Beyond One’s planned acquisition of Telefónica’s Mexican unit for about EUR 520 mn (USD 610 mn) could see some delays and conditions on the regulatory approvals front, but is unlikely to face much pushback, according to a note from Fitch Solutions ’ BMI.

The rationale: Beyond One owns Virgin Mobile Latin America, which has operations in Mexico and Colombia. The combined 22.5 mn subscribers of Virgin Mexico and Telefónica merely put the merged entity on par with AT&T, leaving Mexico’s dominant mobile network operator Telcel’s 83.3 mn users unchallenged, Fitch’s BMI said. Regulators could impose conditions such as job preservation, the appointment of Mexican managers, or even a local stock market listing for the Dubai-owned buyer, Fitch Solutions said.

#4- Arab Investment Co. plans USD 1.2 bn portfolio pivot: The Arab Investment Company is looking to sell off its entire USD 1.2 bn legacy portfolio to shift toward private markets, Bloomberg reports. The state-backed investor, owned by 17 regional governments, will reallocate the majority of its assets to private equity — with venture investments also receiving some allocations, as part of a change in direction under CEO Abdullah Bakhraibah, who took over last year. The firm will focus on the healthcare, education, industrials, and technology sectors, including AI investments, and is planning 20 transactions this year across its shareholder nations.

Where does the UAE come in? The Emirati government invested USD 142.6 mn into the firm with a 13.5% ownership stake, making it the third-largest contributor after Saudi Arabia and Kuwait, each with USD 173.8 mn in the fund and 16.4% ownership.

The restructuring mirrors Gulf sovereign funds’ broader move toward higher-yield assets, a strategy similar to that of Saudi Arabia’s Public Investment Fund and Abu Dhabi wealth funds.

#5- Nasdaq Dubai’s first-ever BTC fund delists: Canada-based investment firm 3iQCorp has officially pulled its BTC Fund, the first-ever crypto vehicle to list in the Middle East, from Nasdaq Dubai. The fund, which was also previously listed in Toronto, was removed yesterday from the Dubai Financial Services Authority’s (DFSA) official list of securities, according to a bourse disclosure. The voluntary delisting was approved by 3iQ’s board and shareholders earlier this month and marks the end of its four-year run on the exchange.

Trading was suspended last week, after the fund manager said that maintaining the Dubai listing had become too costly in a market announcement (pdf) back in May.

#6- Stargate announces second project: MGX-backed AI infrastructure project Stargate is planning to open a USD 1 bn data center in Norway, according to a statement. The project will initially install 100k Nvidia processors, and could see 10x expansion in the future according to demand. Developer Nscale and investment group Aker will jointly own the facility.

REMEMBER- The AI alliance between OpenAI, SoftBank, and Oracle — with contributions from MGX for the first USD 100 bn phase — recently announced its first project in the UAE, which will see a data center cluster built in Abu Dhabi, set to go live next year.

PSAs-

#1- Starting this month, parking fees will apply around Dubai’s mosques outside prayer times, as parking operator Parkin takes over 21k parking spaces at around 59 religious sites across Dubai, according to Dubai Media Office. Parking will be gratis for one hour during prayer times, but chargeable otherwise.

#2- Fuel prices are dipping slightly this month: The Fuel Price Committee left fuel prices slightly lower and raised diesel prices for August, after across-the-board increases in July, according to a post on X.

Here’s the new breakdown per liter:

  • Super 98 is now AED 2.69, down from AED 2.70 in July (-0.4%);
  • Special 95 is AED 2.57, down from AED 2.58 (-0.4%);
  • E-Plus 91 is AED 2.50, down from AED 2.51 (-0.4%);
  • Diesel is AED 2.78, up from AED 2.63 (+5.7%).

THE BIG STORY ABROAD-

It’s finally August — aka Tariff Month — and US President Donald Trump has published alist of new tariffs set to be implemented on trade partners, while leaving the global minimum reciprocal tariff at 10%.

Trading partners are sorted into three groups: Those who run a goods trade surplus with the US will be subject to a 10% tariff; while those who have reached agreements and run moderate trade deficits will see a 15% tariff, and those with large trade deficits and no trade agreements will see higher tariffs. Meanwhile, transshipped goods will be hit with a 40% tariff. The UAE — along with most of the Gulf — belongs to the first group.

Among the highest tariffs: Canada will be slapped with a 35% tariff, higher than the earlier announced 25%, as diplomatic friction between the country continues and after it said it would recognize a Palestinian state; Switzerland was slapped with a 39% tariff; and India will be subject to a 25%. The tariffs will take effect next Friday.

Market reax: Market response has been subdued, suggesting they have already priced the tariffs in. The USD reversed a small, early gain, while the CHF pared some of its gains after falling sharply on news of the tariff.

The story is everywhere in the foreign press: Bloomberg | Reuters | Financial Times | CNBC | New York Times

ALSO GETTING SOME ATTENTION- Apple and Amazon published their earnings yesterday:

  • Apple benefited from a boost in iPhone sales as customers rushed to lock in pre-tariff prices, with overall sales rising 10% y-o-y. CEO Tim Cook said the company will be hit with USD 1.1 bn in costs from the tariffs in 3Q 2025 alone. (Wall Street Journal | Reuters)
  • Amazon’s shares fell more than 7% after hours as its cloud computing unit failed to meet earnings expectations, with net income margins contracting, after rivals Microsoft and Alphabet both reported impressive performance for their cloud units. (Reuters)

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MARKET WATCH-

Opec+ will likely benefit from its decision to prioritize market share over price stability, despite initial economic strain, Bloomberg reports. Opec+ members are hoping to claw back market share ceded to US shale and other competitors, and they look to already be succeeding: Growth in oil supply from non-OPEC producers — primarily Brazil, Canada, and Guyana — is expected to slow by over 80% through 2027, according to Wood Mackenzie estimates. The slowdown stems from diminishing output in North America and aging fields in countries like Mexico, China, and Norway.

REMEMBER-The group is expected to reconvene next Sunday to review its output strategy. Oil traders anticipate further price pressure later this year, driven by rising inventories and dwindling Chinese demand.

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