THIS MORNING: Egypt snubs AD Ports bid for ALCN + Al Habtoor puts IPO plans on hold

Good morning, everyone. We left you on a somewhat hopeful note on Friday as US President Donald Trump — for the nth time — dangled the idea of a potential agreement on the horizon, and just one long weekend later, an interim agreement has been reached.

The agreement is not without its caveats: It’s only a “memorandum of understanding” at this point, and the agreement is not to permanently end the war but rather to extend the 60-day ceasefire one more time. Without any clarity on where negotiations have landed on Iran’s nuclear program, the unfreezing of Iranian assets by the US, or whether Israel has green-lit the agreement, there’s still a lot of uncertainty around what’s going to happen next.

All eyes are on Friday for the official signing of the agreement — and for the reopening of the Strait of Hormuz after months of disruption, according to Trump, who proclaimed on Truth Social: “Ships of the World, start your engines. Let the oil flow!”

While the international pages are full of the welcome news of a diplomatic breakthrough between the US and Iran, on the home front, the fallout from the war is bringing us some less-than-positive news.

Moody’s is penciling in a contraction for the UAE economy this year just as the World Bank is downgrading its forecast. Plus: Our IPO pipeline seems to only be shrinking, with Al Habtoor Group the latest to shelve IPO plans.

On the M&A front, L’imad is looking to close in on full control of Taqa, and Egypt is set to reject AD Ports’ offer to acquire 90% of Alexandria Container and Cargo Handling.

SPEAKING OF THE US-IRAN WAR- The UAE dismissed reports that it transferred bns of USD to Iran, saying claims that funds, including a reported USD 3 bn tranche, were released or facilitated through the country are “entirely false and unfounded,” Wam reports. The Foreign Affairs Ministry said no frozen Iranian funds had been released, transferred, or facilitated through the UAE.

IN CONTEXT- A recent Reuters report, citing unnamed sources, claimed the UAE had agreed to transfer between USD 10 bn and USD 20 bn to Iran, without specifying whether the funds were frozen Iranian funds or came from state coffers. One of the sources said the arrangement was linked to a halt in Iranian missile and drone attacks on the UAE and more economic cooperation. Releasing Iranian assets frozen under US sanctions was reported elsewhere by Reuters to be under discussion as part of an agreement between Washington and Tehran.

Reuters also cited a UAE official as saying the country’s foreign policy is focused on de-escalation and reducing tensions across the region while supporting efforts to protect the region from the consequences of conflict.

WEATHER- It’s boiling hot in Abu Dhabi, with a high of 43°C and a low of 29°C, while temperatures are cooling down in Dubai, with a high of 37°C and a low of 27°C.

Al Habtoor puts IPO plans on hold

Al Habtoor Group has shelved plans to list part of its business on the Dubai Financial Market (DFM) for now, with founder and chairman Khalaf Al Habtoor telling CNBC Arabia the company is focused on its expansion pipeline.

BACKGROUND- Public market ambitions have been part of the group’s plans. A year ago, Al Habtoor said the group was preparing an IPO of its hospitality arm, Habtoor Hospitality, on the DFM. The proposed listing would have included a portfolio of hotels in Dubai, alongside international properties in Budapest, London, Vienna, and the US.

Al Habtoor said any future listing would likely involve between 5% and 15% of the group. He noted that the group already operates under governance and management structures similar to those of a listed company.

It’s not the only one to have delayed IPO plans, and not the only one in the hospitality sector either, as the war has kept dealmaking muted in the region. The Financial Times recently reported that preparations paused on Dubai Holding’s plans to list its retail assets. The sources cited the war-induced hit to the tourism industry as behind the pushback. Al Habtoor said occupancy at the firm’s hotel currently ranges between 35-40%. Emirates Global Aluminium’s (EGA) much-anticipated IPO has also been pushed back to at least next year.

Expansion plans are on track: The group is studying acquisition windows in central Europe, where it’s already active in Austria, Hungary, and Slovenia. As for Syria, the group isn’t currently planning on getting involved in investment projects there, after a delegation traveled to the country last summer to discuss cooperation with the government and potential investments. It also scrapped its plans in Lebanon and recently launched a lawsuit against authorities for “severe and sustained harm” to its assets.

Egypt snubs AD Ports bid

EXCLUSIVE- Egypt’s Transport Ministry is set to reject AD Ports’ mandatory tender offer to acquire up to 90% of Alexandria Container and Cargo Handling (ALCN), a senior government official tells EnterpriseAM.

REFRESHER- The Emirati port operator — bidding through its subsidiary Black Caspian Logistics — offered EGP 27.47 per share last week to consolidate its control over the Egyptian maritime operator through a mandatory tender offer as part of a necessary regulatory step, sweetening its bid by 19.5% from an initial EGP 22.99 per share offer submitted late last year. The newly submitted offer will be presented at an upcoming ALCN board meeting, pending the receipt of an official decision from Egypt’s state-owned Holding Company for Maritime and Land Transport, the official says.

The state is holding the line: The Abu Dhabi wealth fund ADQ-owned AD Ports has been looking to consolidate the 51.33% indirect majority it has built in the company since 2022. But the government — which controls a combined 42.9% blocking stake of ALCN through the Holding Company for Maritime and Land Transport (35.3%) and the Alexandria Port Authority (7.6%) — is refusing to hand over the keys of its lucrative Mediterranean gateway asset.

AED 55 bn incoming for Al Maktoum

The UAE is pushing ahead with its expansion of Al Maktoum International Airport, setting aside more than AED 55 bn in contracts tied to the project to be awarded by the end of the year, Dubai Crown Prince Hamdan bin Mohammed bin Rashid Al Maktoum said on X. The first phase of commercial operations is slated for 2032.

REFRESHER- The government is investing AED 128 bn in expanding the airport, aiming to lift annual passenger capacity to 260 mn and targeting 12 mn tons of air cargo. Other aviation players have also been striking a note of confidence in the sector, with Emirates offering up ins. for travelers last week as part of its planned incentives to bring back hesitant passengers after the war triggered a drop in passenger traffic through the UAE.

France’s new wingman?

France could be looking to the UAE for help with the next iteration of its Rafale fighter jet. The Financial Times cites French Defense Minister Catherine Vautrin as saying Paris is in talks with the UAE on a potential partnership around the next-generation Rafale F5, following the collapse of a joint fighter jet program with Germany.

What’s on the table? Details remain scarce, but the UAE could potentially contribute funding and future orders for the aircraft in exchange for work for local contractors. The UAE already operates Rafale jets, and Vautrin described the country as a potential “big client” for the upgraded model.

IN CONTEXT- Defense ties between the UAE and France have been growing. UAE defense conglomerate Edge recently established its European headquarters in Paris as part of a broader push across the continent. At the same time, the UAE is pushing to localize more of its defense stack, recently acquiring a controlling stake in Italy’s CMD to strengthen its foothold in the defense supply chain.

AND- Edge is continuing to deepen its French ties: The firm signed a strategic cooperation agreement with French aerospace and defense group Safran, according to a statement, expanding collaboration after the two agreed earlier this year to co-develop advanced long-range air-to-ground weapon systems. The new agreement broadens cooperation across a wider range of aerospace and defense technologies, including unmanned systems and electronic warfare.

Happening today

The UAE has a seat at the G7 table this week, with President Mohamed bin Zayed Al Nahyan participating in the G7 Summit in France, Wam reports. The summit kicked off yesterday and runs through tomorrow as leaders grapple with an increasingly crowded agenda spanning geopolitical tensions in the Middle East, trade, security, and the global economy. We have more on what went down during day one of the summit in the news well, below.

You can survive a bad investment, but you cannot undo a severance package you never negotiated.

You're at the stage where the questions have shifted: who gets what, whether your estate survives you intact or gets tied up in courts, whether you exit on your terms or let timing decide for you.

Retirement isn't a finish line but a structure problem, and most people get it wrong. It's not because they ran out of money but because they never asked the right questions at the right time.

In the final issue of EnterpriseAM Money Matters, we cover the decisions that define how you exit: estate planning under Egyptian law, what to actually ask your lawyer before you step back, how to read a severance package, when phased retirement makes financial sense — and when cashing out your options is the smartest move you'll make this decade.

Tap or click here to subscribe to the Egypt edition, delivered to your inbox tomorrow, June 17.

The big story abroad

When will Hormuz reopen? That was the main question dominating the opening day of the G7Summit in France. While US President Donald Trump seems confident that the strait will be open to all on Friday — when the US and Iran are scheduled to sign a final agreement — others are less optimistic.

Drama at the summit: G7 members are yet to find common ground on how to handle “the situation in Iran,” one G7 official told Bloomberg. With two more days to go, we’ll be closely watching for developments from the summit.

News of the US-Iran agreement is making waves across stock markets: Equities soared yesterday as the announcement reignited investor confidence — the S&P 500 jumped 1.7% and the Nasdaq Composite rose 3.1%. The rally was further supported by SpaceX’s shares rising almost 20% yesterday — their second day of trading. Meanwhile, oil prices continued their fall, with Brent dipping 4.8% to USD 83.17.

Beware the meat wall: The Wall Street Journal is out with a piece looking at a new obstacle standing in the way of the teams playing in this year’s World Cup — the Meat Wall. In this tactic players line up to form a wall in hopes of blocking corner or free-kicks, which the WSJ says has turned “the beautiful game into a wrestling match.”

***

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?

***

Market watch

The UAE and Oman are redirecting a large wave of crude to Europe next month as Chinese imports of Gulf oil fall sharply, with at least six supertankers carrying a combined 12 mn barrels already scheduled, Bloomberg reports.

The China gap is stark: China normally takes 70-80% of Oman’s crude, but its purchases of May-loading Oman cargoes fell to just 65k bbl / d, down from some 700k bbl / d in February. It also bought no May-loading UAE crude, compared with 750k bbl / d in February, leaving more Murban, Upper Zakum, and Oman crude available for European refiners.

What’s driving the shift? Europe becoming a bigger buyer of Gulf crude is softening the blow of China’s retreat for Gulf producers, and it’s been helped by a rare trading arbitrage that opened up as China retreated. The premium of Brent futures to Dubai crude swaps (the EFS, or exchange of futures for swaps) widened to nearly USD 10 / bbl last week from USD 6.75 on 29 May, according to PVM Oil Associates — making Dubai-linked grades like Murban, Upper Zakum, and Oman crude suddenly attractive to European refiners who rarely see them in volume.

Why it matters: Europe’s ramped-up buying puts a floor under Gulf producers’ revenues even as their most important customer pulls back, and it’s a sign that the market is finding its own equilibrium — redirecting barrels west rather than leaving them stranded.

Meanwhile, Adnoc has more to offer

Adnoc has launched its third crude tender this month — offering up to 2 mn bbl of Upper Zakum, Umm Lulu, and Das crude, Reuters reports, citing trade sources. Buyers can purchase on an FOB basis from Fujairah, Zirku, or Das Island, or via ship-to-ship transfers across ranges including Fujairah to Sohar and Malaysia, with pricing set against official selling prices or the Dubai benchmark.

Adnoc is finding ways to keep exports moving — even as Hormuz’s reopening timeline remains unclear. The company has exported three LNG shipments from the Gulf on tankers that went dark while crossing Hormuz earlier this month. It also offered oil tenders this month, resumed exporting naphtha through Oman’s Sohar port, and is planning a multi-fuel pipeline to hedge against future shipping disruptions.

Circle your calendar

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