THIS MORNING: Petrofac sells UAE unit to US, UK players + Alec clinches construction contract for The Sphere

Good morning, friends. We have an M&A-heavy issue this morning, as we take a look at two major acquisitions: Uber’s acquisition of a portion of e&’s stake in Careem (which could, down the line, turn into a full acquisition) and Abu Dhabi’s Cricket & Sports Hub’s acquisition of majority control of the T10 competition.

We dive into why cricket is actually an interesting wager for Abu Dhabi — by virtue of both its massive South Asian expat community and the sport’s growing appeal — and why the Uber acquisition comes at an interesting time for the firm, in the news well below.

There’s also Abu Dhabi Investment Authority backing Israeli-founded and London-headquartered insurtech Sapiens, and news that Emaar’s Mohamed Alabbar and Abu Dhabi’s International Holding Company are both in the running for a potential acquisition of the now-troubled food producer IFFCO Group.

BUT BEFORE WE DIVE IN- Here’s where ceasefire negotiations between the US and Iran currently stand: After Tehran said it suspended negotiations with Washington due to Israel’s recent ramp up of its assault on Hezbollah in Lebanon, US President Donald Trump claimed that he brokered a truce after talks with Tel Aviv and the Iran-backed group, and that US-Iran negotiations are progressing at a “rapid pace.” Lebanon later announced a partial ceasefire, despite reports of ongoing strikes by Hezbollah.

Attacks continued to target the region yesterday: Iranian missiles targeted US forces in Kuwait yesterday. The missiles were intercepted with no injuries reported. This came after the US targeted Iranian radar and command and control sites on Saturday and Sunday.

WEATHER- It’s another hot summer day in both Dubai and Abu Dhabi, with a high of 39°C and lows between 30-31°C, according to our favorite weather app.

Earning well is not the same as investing well — and for most mid-level executives and entrepreneurs, the gap between the two is wider than they’d like to admit. The financial landscape has shifted. Regional markets are opening up, AI is rewriting how portfolios get managed, and Real Estate Investment Trusts (REITs) are entering the conversation.

And the questions that used to feel straightforward — buy or rent, fund the startup or play it safe, finance the car now or wait it out — are harder to answer than ever.

In Issue 2 of EnterpriseAM Money Matters, we get into the decisions that don’t have easy answers, because at this stage, playing it safe is the riskiest move you can make.

Tap or click here to subscribe to the Egypt edition, delivered to your inbox Wednesday, June 3.

Watch this space

ENERGY — UK-based energy services company Petrofac has completed the sale of its UAE unit, Petrofac Emirates, to a consortium led by US investment firm Mason Capital Management and London-based hedge fund manager Pearlstone Alternative, according to a press release.

The plan: The UAE business, which houses Petrofac’s core engineering and construction operations in the Emirates, will now operate as a standalone company under new ownership with a clean balance sheet. Petrofac’s UAE operations include a USD 1.2 bn Adnoc gas expansion on Das Island, a compressor plant at Habshan, and a carbon-capture facility.

BACKGROUND- Last March, Petrofac agreed to sell Petrofac Emirates to the Mason-led consortium as part of a broader restructuring plan aimed at stabilizing the group following mounting debt. Last November, its UAE operations were reported to be “continuing as normal” despite Petrofac itself carrying USD 4 bn of debt, recording years of losses, and suffering from the fallout of a bribery case years earlier. It filed for administration for its international operations to support its restructuring and M&A plans.

INFRASTRUCTURE — Final puzzle piece in place for the Sphere: Dubai-based construction firm Alec was awarded the construction of Sphere Abu Dhabi, which will open on Yas Island in 2029, in a contract valued at USD 1.7 bn, the firm said in a bourse disclosure (pdf).

BACKGROUND- The highly anticipated venue will be located between Seaworld Abu Dhabi and Yas Mall, according to recent statements from Mohamed Khalifa Al Mubarak, chairman of Abu Dhabi’s Culture and Tourism Department. It will match the 20k-seat capacity of the Las Vegas original, with DCT Abu Dhabi overseeing funding and construction. Sphere Entertainment will provide tech expertise, operational support, and creative content, earning annual fees once the arena opens.

IHC + Alabbar eye struggling IFFCO: Abu Dhabi’s International Holding Company and Dubai b’naire Mohamed Alabbar are among those circling troubled UAE-based food producer IFFCO Group as the company struggles under roughly USD 2 bn in debt and mounting insolvency pressure, Bloomberg reports, citing people it says are familiar with the matter.

Where we’re at: Currently, it’s still in the early stages with no formal bids made. However, Alabbar said that he had sent letters to IFFCO’s board and creditor banks expressing interest in acquiring the entire business. The assets could be valued at several bn USD.

The possible target: IFFCO’s brands span food production, packaging, chemicals, and logistics, and it has a presence across roughly 50 countries. It’s an especially attractive target for Emirati investors, with several manufacturing facilities in the UAE making it a key element in the Emirates’ food supply chain, which could come under strain due to the war. A takeover by Alabbar would see IFFCO added to his portfolio, which also includes Americana Restaurants.

Any serious move would likely depend on how court proceedings tied to IFFCO’s future play out in the coming months. IFFCO’s creditors include HSBC and Emirates NBD, with a creditor group recently filing for insolvency in May after restructuring talks failed last autumn.

AI — More Emirati-French AI cooperation? Abu Dhabi AI investor MGX and French state-owned investment firm Bpifrance have plans to expand their AI data center campus — set to be Europe’s largest — with a EUR 7.5 bn investment ticket, Reuters reports. The expansion would boost capacity to 3 GW, up from the 1.4 GW initially planned, as France looks to position itself as an AI hub, according to Sifted.

ICYMI- Construction for the first phase is set to begin in 2H this year, with operations slated to begin in 2028 under a massive EUR 8.5 bn investment framework. The UAE had previously signaled plans to invest USD 30-50 bn in French AI and data infrastructure, and MGX itself has ambitions to deploy as much as USD 10 bn annually in AI investments.

SPORTS — Gulf United brings on Iniesta as head coach: Former Barcelona midfielder Andres Iniesta has joined Gulf United FC as head coach, according to a press release. Iniesta — who last played with Emirates Club FC before retiring in 2024 — has secured his A Licence and is in the process of getting a Pro Coaching Licence.

PSA

Government employees in Ajman will have more flexible leave and working hours as of 1 September under a new human resources law issued by Ajman’s ruler Sheikh Humaid bin Rashid Al Nuaimi. The law introduces reduced working hours for select groups — including employees with disabilities, pregnant employees experiencing fatigue, and family caretakers with five or more children under 18 — as well as additional annual leave for newlyweds, family caretakers, people with disabilities, and entrepreneurs.

The law also introduces new employment perks, including promotions of up to three job grades for exceptional talent and high-performing employees, alongside a new Good Service Award bonus for Emirati staff.

The big story abroad

AI news is leading the conversation in the business pages this morning: Anthropic has confidentially submitted paperwork for its IPO which could happen as early as this fall, potentially putting the startup ahead of OpenAI and its listing schedule. The Claude maker did not disclose the number or price of shares to be offered.

Another tech player is looking to raise funds for AI investment: Alphabet will sell USD 80 bn worth of stock to fund investments in computing infrastructure to meet customer demand for AI products. The company intends to source the funds via underwritten offerings, a USD 10 bn investment from Berkshire Hathaway, and selling Class A and Class C shares.

A new strategy for the golden arches? McDonald’s has launched its new growth strategy to attract diners, which will include higher-quality food, restaurant upgrades, consumer-led innovation, and improved customer service. The strategy comes at a time where consumers are demanding more value for their money and competitors upgrade their offerings, CEO Chris Kempczinski said.

***

You’re reading EnterpriseAM UAE, your essential daily roundup of business, economics, and must-read news about the UAE, delivered straight to your inbox. We’re out Monday through Friday by 7am UAE time.

EnterpriseAM UAE is available without charge thanks to the generous support of our friends at Mashreq and Hassan Allam Properties.

Were you forwarded this email? Tap or click here to get your own copy of EnterpriseAM UAE.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on [email protected] .

DID YOU KNOW that we also cover Egypt, Saudi Arabia, and the MENA logistics industry?

**

Circle your calendar

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.