Good morning, everyone. It is a relatively quiet start to the work week for us, though some big local names are still keeping the news flowing.

But first: Our big story today is the UAE’s non-oil economy breaking the AED 1 tn ceiling, and construction, tourism, and financial and ins. services remained the heavyweights.

Meanwhile, Aldar broke a regional record with a private placement issuance, and we have stories pointing to more UAE-India collaboration, with Adia eyeing backing an Indian renewable player’s IPO and G42 choosing India for its latest supercomputer build. Ships might be the next big thing to be tokenized, and the US and the UAE are partnering on more commerce collaboration.

WEATHER- It’s more of the same in Dubai and Abu Dhabi, with temperatures peaking at 29°C. Dubai will see an overnight low of 19°C, and the capital will see a low of 18°C.

Watch this space

INVESTMENT — Adia wants a piece of yet another Indian firm: The Abu Dhabi Investment Authority (Adia) aims to invest as a cornerstone backer in the IPO of India’s Clean Max Enviro Energy Solutions, alongside Singapore’s state-owned Temasek Holdings, Bloomberg reports, citing sources it says are familiar with the matter. The renewable energy developer plans to raise about INR 31 bn (USD 341 mn) in the offering. Talks are ongoing, and the final allocation details may still change.

Who else will take part? Adia will participate alongside India’s HDFC Asset Management and SBI Life Ins. Cornerstone investors will receive priority allocations in exchange for holding shares for a specified period.

The details: The company earmarked shares worth around INR 9.3 bn (USD 102 mn) for anchor investors ahead of the subscription period. Investment bankers are expected to price the anchor tranche at INR 1.05k per share, the top of the marketed range. Clean Max has already raised INR 15 bn in a pre-IPO placement last week.

Adia ❤️ India: Adia invested USD 5.5 mn in the USD 1.2 bn anchor round of ICICI Prudential Asset Management Company ahead of its IPO, adding to an earlier undisclosed stake. It also backed the INR 29 bn (USD 327 mn) IPO of Emmvee Photovoltaic Power, the INR 66.3 bn (USD 754 mn) listing of Billionbrains Garage Ventures, and was reportedly among the buyers of a 3.45% stake in RBL Bank.

IN CONTEXT- India’s capital markets have been struggling with momentum after two strong years of record proceeds. Firms raised around INR 2 tn (USD 22.4 bn) through IPOs in 2025, while so far this year, only INR 14.5 bn (USD 160 mn) has been raised. The pipeline is packed, however, with over 200 firms either awaiting or having received regulatory approval for listing this year.

DEBT — The AED curve just got longer: The Finance Ministry launched its first-ever seven-year Islamic Treasury Sukuk tranche, raising AED 550 mn as part of a broader AED 1.1 bn February auction, state news agency Wam reports. The new 2033 paper — listed on Nasdaq Dubai — marks the longest tenor issued under the monthly T-sukuk program to date.

Investors can’t get enough: Total bids for the February sale reached AED 5.9 bn, implying a 5.3x oversubscription, with the latest seven-year tranche nearly six times covered. Pricing landed at 3.779% for the tranche maturing in 2033 and 3.53% for that maturing in 2030, both below comparable US Treasuries at issuance — a sign the sovereign isn’t paying up to stretch maturities.

Our take: This is curve-building in motion. Retail onboarding last year and longer tenors now point to a deliberate strategy to widen participation, lengthen the funding curve, and entrench the AED debt market.

M&A — Dubai Aerospace Enterprise’s aircraft lessor DAE Capital is close to acquiring leasing platform Macquarie AirFinance, Reuters reports, citing two industry sources. The company has reportedly been competing with other regional bidders, namely KSA’s AviLease and Qatar’s Lesha Bank.

Data point

44% — that was the jump in Abu Dhabi real estate transaction value in 2025, with total activity reaching a record AED 142 bn across 42.8k transactions, according to the Abu Dhabi Media Office. Volumes rose 52% y-o-y in 2025. Sales and purchases accounted for AED 99.4 bn across 25.6k transfers, while mortgages contributed AED 42.7 bn from 17.2k financings, suggesting liquidity is expanding alongside end-user demand.

Foreign capital remains part of the story: Real estate FDI reached AED 8.2 bn, up 13% y-o-y, spanning investors from more than 100 nationalities. Investment zones pulled in AED 54.1 bn, up 65% in value. Add 56 new development projects and a 57.7% rise in licensed professionals to 3.6k, and the market looks less like a short-cycle surge and more like institutional depth taking shape.

Only up from here? As we’ve previously reported, 2026 could tilt further in Abu Dhabi’s favor. With Dubai cooling into single-digit growth, the capital looks poised for the next leg of the cycle. Office rents are projected to climb 20% on 93% occupancy and tight supply, while apartments are expected to outperform villas on capital gains despite constrained deliveries.

The big story abroad

Several stories dominate headlines this morning, including the killing of drug cartel kingpin Nemesio Oseguera after a raid by Mexican authorities. Oseguera was a top member of the organization known as Jalisco New Generation Cartel, which is one of the groups behind the smuggling of bns of USD worth of drugs into the US. The operation came after mounting pressure from Washington to prevent the flow of drugs across the border.

On the global stage, the European Commission said it expects Washington to stick to the joint trade agreement inked last year. The Commission demanded “full clarity” on Washington’s next steps and insisted the US honor the agreement, indicating that it will accept no increase in US tariffs. This comes after US President Donald Trump announced he is raising global tariffs to 15%.

Speaking of which, Trump’s newest tariff hike was found to benefit China and Brazil most while heralding higher costs for US allies, namely the UK, the EU, and Japan. US allies are thought to suffer most as their exports have a higher proportion of steel, aluminium, and autos, which are covered by some tariffs that remain in place.

MEANWHILE, IN MARKETS: Crude prices retreated in early trading today after Trump’s pledge to hike tariffs fueled anxieties over a potential slowdown in global economic growth and energy demand.

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