THIS MORNING: Botswana in talks with UAE, Oman over diamond producer takeover + Barakah nuclear plant could be in for more protection

Good morning, everyone. It’s a quieter start to the week, save for our Big Story Today of a UAE-backed USD 1.9 bn urban development in Botswana, complete with a world trade center, in what is set to be one of the biggest FDI projects in the country to date.

In other UAE-Botswana news, reports are rolling in of Botswana holding talks with the Emirates (as well as Oman) to secure backing for a takeover of diamond producer De Beers.

Closer to home, the IAEA and UAE are looking into more protection for nuclear plants against wartime disruption, while Lunate is expanding its ETF platform again.

WEATHER- It’s going to be very hot today, with a high of 42°C in Abu Dhabi and 41°C in Dubai, before it cools down to 30°C in Dubai and 31°C in the capital.

Oman vs. UAE for De Beers?

Botswana is in talks with Oman and the UAE to acquire a stake in the world’s biggest diamond producer: London-based mining multinational Anglo American is shortlisting buyers for its 85% stake in diamond producer De Beers, with the UAE and Oman both in the running to help Botswana secure a “strategic stake” in the firm, Bloomberg reports, citing Botswana's President Duma Boko.

BACKGROUND- While Botswana already owns 15% of De Beers, acquiring a larger stake would give the country more control over how its diamonds are priced and marketed. As the world’s largest rough diamond producer, accounting for around 80% of exports and a quarter of GDP, Botswana is already struggling with a downturn in diamond prices amid competition from cheaper lab-grown options and weaker demand from China, as well as a credit rating downgrade and strained state coffers.

A sovereign wealth fund from MENA would help fund the acquisition, Boko said, flagging the UAE and Oman as “trusted partners” in the diamond business and other sectors. He added that Botswana was also talking with Namibia and Angola.

IN CONTEXT- The UAE is fast emerging as a global growth engine for fine jewelry, with the wider GCC market seeing a surge in demand as luxury appetite cools in the US and China. The trend is set to persist over the next few years, rendering a foothold in the diamond sector of one of the world’s largest diamond-producing nations highly valuable for Abu Dhabi.

More protections for Barakah?

The UAE’s nuclear plants could be getting stronger protection against wartime disruption. Bloomberg reports that the International Atomic Energy Agency (IAEA) is working with Emirati authorities to assess whether the external power systems that feed Barakah’s reactors need extra safeguards — specifically, stronger protection for offsite electricity lines, backup connections, and other systems needed to keep power flowing to the plant if the grid is disrupted.

Why this matters: Barakah was targeted by a drone last month, sparking a fire near an electrical generator. Radiation levels remained normal, but the incident highlighted a critical nuclear safety risk, according to IAEA Director General Rafael Grossi: The attack showed how easily a conflict-related strike could threaten the power supply, backup power resilience, and overall emergency preparedness needed to keep reactors safe.

With conflict risk now a more central concern, Grossi said utilities and regulators need to focus more on hardening external power infrastructure, reinforcing backup systems, and planning for wartime-style disruptions.

Etihad remains bullish

Etihad is already looking beyond the war disruption and back toward growth. The Abu Dhabi carrier is placing a double-digit order for more widebody aircraft and expects to be flying about 8% more than it was a year ago by mid-June, CEO Antonoaldo Neves told Reuters. The airline has spent the past few months rebuilding its network after scaling back operations during the regional conflict, but Neves made no comment on the carrier’s postponed IPO, which was pushed back to this year.

Etihad’s current available seat kilometers is at 90% of its pre-war levels, with that set to move above 100% by mid-June, Neves told the Financial Times. Demand has rebounded strongly across key markets, particularly the US, India, and Southeast Asia.

No reduced prices for now: Etihad’s aircraft are currently around 84% full, while average fares have returned to January and February levels despite jet fuel prices doubling during the conflict. Neves dismissed suggestions that Gulf carriers would need to cut prices to lure travellers back after the ceasefire.

Jumping the jet order queue: Etihad is securing earlier delivery slots for new Airbus and Boeing aircraft by taking positions relinquished by other airlines, according to Neves. “We’re ordering planes right now to be delivered between 2028 and 2032 and we’re getting [the] position of airlines that are giving up,” he said.

ICYMI- Last month, analysts told us that the aviation sector has historically bounced back quickly from shocks, penciling in a strong recovery for 3Q and 4Q in particular. Despite this, Dubai Airports CEO Paul Griffiths had pushed back Dubai International Airport’s aim of reaching 100 mn passengers a year from 2026 to 2027.

Europe’s turn to probe Paramount

Paramount’s proposed Gulf-backed takeover of Warner Bros. Discovery is running into a new obstacle in Europe, where regulators are examining whether the agreement’s state-linked financing could distort competition — and may push the company to sell off parts of its children’s TV portfolio to get the merger over the line, Bloomberg reports.

What’s happening: The USD 110 bn Paramount-Warner Bros. Discovery takeover is being reviewed under the EU’s Foreign Subsidies Regulation, which gives Brussels the power to investigate whether foreign state support gives companies an unfair advantage in the bloc. According to Bloomberg, officials are weighing whether remedies could include divestments tied to children’s network assets as a condition for approval.

Why it matters: Any forced sale would add pressure on Paramount to line up buyers for those assets on a tight timetable, potentially weakening its negotiating position and complicating the path to closing one of the year’s biggest media tie-ups.

REMEMBER- The agreement is backed by roughly USD 24 bn from Abu Dhabi’s L’Imad, Saudi Arabia’s PIF, and the Qatar Investment Authority. That financing has already drawn political attention in Washington, with democratic senators previously calling for a “rigorous and thorough review” of the foreign investment involved, while FCC commissioner Anna Gomez separately raised concerns about foreign ownership of broadcasting assets.

What's next: Paramount faces an initial EU deadline of 7 July. Regulators can clear the move, accept remedies, or open a deeper probe that could delay one of the year's biggest media mergers by several months.

Data point

AED 5.6 tn — that’s the UAE banking sector’s total assets as of the end of April, up 0.2% m-o-m, Wam reports, citing central bank data. Gross credit expanded 0.9% to AED 2.7 tn, driven by an AED 18.5 bn increase in domestic credit. Lending to the private sector, and to individuals in particular, provided the largest boost, rising AED 6.2 bn on the back of housing and personal consumer loans. Meanwhile, credit to government-related entities increased 2.3%, and lending to the government sector saw 0.1% growth.

Total bank deposits rose 0.7% m-o-m to AED 3.5 tn on the back of growth in resident deposits, which increased to AED 3.2 tn. Non-resident deposits remained largely flat at AED 307.6 bn.

Among resident deposits, private sector balances recorded the strongest increase, rising 1.4% to AED 2.3 tn, while government sector deposits climbed 4.6% to AED 446.8 bn. However, deposits from government-related entities fell 6.6% to AED 339.3 bn, while deposits from other financial corporations declined 6.6% to AED 65.6 bn.

IN CONTEXT- The data reflects another month of credit growth, after the Central Bank of the UAE launched its resilience package to help lenders with liquidity in the wake of the regional war.

You’ve spent decades building wealth, and the question now isn’t how to make money — it’s how to make sure it survives you, works across borders, and doesn’t quietly erode while you’re not looking. The rules have changed. Egyptian real estate, once a near-guaranteed store of value, is competing with markets in Greece, Spain, and Dubai.

Whether it’s art as an asset, crowd-funding, or the tax implications quietly stacking up behind that second passport, the toolkit for serious capital deployment has expanded faster than most conventional advice — or most advisors — have.

In Issue 3 of EnterpriseAM Money Matters, we cover the decisions that matter most when you’re at the stage where capital preservation is just as important as capital growth — and where getting it wrong is no longer something you can simply recover from.

Tap or click here to subscribe to the Egypt edition, delivered to your inbox on Wednesday, June 10.

The big story abroad

Iran's first strike on Israel since the April ceasefire and Israel’s retaliatory salvo are leading today’s news cycle. The Israeli military claims to have intercepted all the missiles and no casualties have been reported. The Islamic Revolutionary Guards Corps called the barrage retaliation for Tel Aviv’s strikes on Lebanon, claiming the Israeli attacks violated ceasefire terms, and vowed to continue strikes if hostilities resume. Israel fired back by targeting western and central Iran.

Israel must accept a truce, Trump says: US President Donald Trump said that Israeli Prime Minister Benjamin Netanyahu “won’t have any choice” but to accept any resolution Washington closes with Tehran. In a phone call with Netanyahu, Trump pressed the Israeli leader not to retaliate. “Israel had its strike, and Iran had its strike. We don't need another one,” Trump was quoted as saying.

Speaking of which: Trump has publicly urged Federal Reserve Chair Kevin Warsh to cut interest rates, escalating tensions just before Warsh’s inaugural policy meeting. Trump’s demands run counter to current market expectations, which are inclined toward higher borrowing costs following a surge in US employment numbers.

A new and improved ChatGPT: OpenAI’s biggest revamp since its launch of ChatGPT will involve repositioning the chatbot into a “superapp,” which will merge coding tools and AI agents. The changes come as part of a broader evolution at the AI startup, whereby it will shift resources to secure lucrative customers and compete more aggressively with rival Anthropic.

Meanwhile, a high stakes battle unfolds in Italy’s banking sector: Italian banking giants Intesa Sanpaolo and BPER Banca teamed up to structure a joint counter-proposal to take over Monte dei Paschi di Siena (MPS) — considered to be the world’s oldest bank. The move came hours after Banco BPM floated an EUR 50 bn tie-up with MPS.

***

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.