THIS MORNING: Dragon Oil in running for Egypt oil field concessions + MGX eyes USD 20 bn data center player

Good morning, wonderful people. We'd like to report that the optimism we signed off with on Friday has held up. We'd like to — but we can’t.

Iran once again said it was closing the Strait of Hormuz on Saturday following Israel’s ongoing attacks in Lebanon, and scheduled talks between the US and Iran in Switzerland seem to have been scrapped after Iranian negotiators suspended them.

Adnoc had already been preparing to ship some barrels through the strait, with its fourth crude tender this month offering up Upper Zakum, Um Lulu, and Das crude for June-August loading, with buyers able to vie for up to 2 mn barrels per cargo. The tender offered multiple loading options, including FOB liftings from Zirku and Das Island within the strait, alongside alternatives outside the chokepoint via Fujairah storage, ship-to-ship transfers between Fujairah and Sohar, and transfers around Malaysia.

And right on cue, UAE stocks felt the uncertainty and retreated on Friday after rallying earlier on Thursday following news of the agreement. The ADX lost nearly 1% on the session, and the DFM dropped 1.7%.

The one thing that’s not been susceptible to the volatility of war? Abu Dhabi sovereign wealth funds’ ongoing investments abroad. Case in point: Both Mubadala and Abu Dhabi Investment Authority backed a major take-private transaction in the UK, while individually continuing to make smaller investments (and exits) across their portfolios.

We've got the full breakdown in The Big Story Today, plus Amanat's AED 105 mn full buyout of Cambridge Health Group, FAB's oversubscribed green bond, and much more.

WEATHER- Expect a high of 42°C in Abu Dhabi today, and 41°C in Dubai, along with lows between 30-32°C, according to our favorite weather app.

MGX looks east

Abu Dhabi-backed AI investor MGX is eyeing its first Asian buyout, exploring a multi-bn-USD acquisition of Singapore-based data-center operator DayOne, Reuters reports, citing sources it says are in the know. The investor is working with an undisclosed investment bank on the potential transaction.

The price could be the sticking point: DayOne is preparing for a US IPO targeting a USD 20 bn valuation, which MGX may be unwilling to match. Talks could still fall through, with DayOne still keeping the option open to pursue a US or dual US-Singapore listing.

Why it matters: DayOne would give MGX an operating footprint across Southeast Asia, Hong Kong, Japan, and Finland as the Abu Dhabi firm builds exposure across the AI infrastructure chain. MGX is targeting more than USD 100 bn in asset investments, and it already backs OpenAI, Anthropic, and xAI.

DGCX strikes gold

Gold spot trading is available as of today on the Dubai Gold and Commodities Exchange (DGCX), the DGCX said in a statement. The Gold Spot T+0 contracts will be settled in AED, with physical delivery taking place through approved vault infrastructure.

A closer look: The roll-out allows for same-day settlement, offering a more liquid and tradeable option for retail investors looking to buy or sell the safe haven asset, compared to the traditionally longer settlement cycles. The move makes the DGCX the first GCC exchange to offer the T+0 contracts for spot gold.

ICYMI- Last week, the Dubai Multi Commodities Center’s CEO said it was eyeing rolling out T+0 gold contracts to tap into growing local market demand. Other UAE players, including fractional gold ownership firm O Gold and Dubai-based Fasset, have also made moves to facilitate trading gold.

Dewa goes global

The Dubai Electricity and Water Authority (Dewa) is setting up a new growth engine for projects beyond Dubai, launching wholly owned subsidiary Dewa International to develop conventional and clean-energy projects overseas and export the emirate’s energy and water infrastructure services, according to an X post.

What we know: While no markets, pipelines, or investment figures have been disclosed, the subsidiary will work with governments, financial entities, investors, and developers on joint projects, Gulf News reports.

Dragon Oil eyes Egypt concession

Dragon Oil is among five companies competing for three mature oil fields in Egypt’s Gulf of Suez, the Arabic press reports, citing a government official. The oil and gas producer is bidding alongside Saudi drilling contractor Ades, Cheiron Petroleum, and two other companies for the North Shadwan blocks. The proximity of the company’s production facilities to the concession areas may improve its chances of securing the concessions, which are expected to be awarded in 3Q.

Dragon Oil recently doubled down on its commitment to invest some USD 3 bn in Egypt. It remains bullish on its Gulf of Suez presence, pointing to a recent discovery at the North Safa field — the first in two decades — followed by another find at its East Crystal-1 well as evidence of the area’s investment potential. The company also recently struck oil at its South El Wasl B.B2 exploration well.

Investcorp advances Gulf M&A pipeline

Investcorp is acquiring a majority stake in UK facilities management player Smart Managed Solutions for over USD 200 mn, Bloomberg reports, citing unnamed sources. The global alternative asset management firm aims to expand the company via further acquisitions, penetrating new regions and end markets in the UK.

About the firm: Established in 2017, Smart Managed Solutions specializes in mechanical and electrical upkeep, integrating data-analytics software as well as providing engineering services for commercial properties and data centers, according to its website. It has recorded upwards of EUR 100 mn in revenue and recently expanded at a rate above 30% annually.

Why this matters: The acquisition indicates that Investcorp’s acquisition drive — bolstered recently by last week’s acquisition of a strategic stake in UAE-based Metra — is undaunted by the unrest in our region.

Happening this week

Is Rubio coming to town? Axios reported that US Secretary of State Marco Rubio is coming to the UAE this week as part of a wider regional tour that will see him visit Bahrain and Kuwait as well, though Andalou Agency said a state department official denied any travel plans at this time, citing Axios.

The visit would come in the wake of the US-Iran MoU to end the regional war, which has already been put in jeopardy after continued Israeli strikes in Lebanon, violating the first clause of the MoU and leading Iran to close the Strait of Hormuz once again.

The big story abroad

Ongoing US-Iran peace talks in Switzerland have made “encouraging progress,” establishing a 60-day roadmap for a final agreement, mediators said. The parties agreed to set up a communication line for safe shipping through the Strait of Hormuz and a “de-confliction cell” with Lebanon to help maintain the halt in military operations.

Talks had looked incredibly fragile just hours earlier. US President Donald Trump threw a wrench into the negotiations, threatening to restart strikes and demanding Tehran stop Hezbollah from “causing trouble.” The Iranian delegation reportedly paused negotiations in response to Trump’s threats.

SpaceX flunks ESG metrics: Elon Musk’s SpaceX received the lowest possible environmental, social, and governance (ESG) rating from index provider MSCI, scoring a triple C. The report found that the company is “lagging its industry based on its high exposure and failure to manage significant ESG risks,” and is indirectly involved in one or more serious controversies.

Wars are changing the way VCs look at defence startups: Defence technology startups are attracting USD bns as investors flock to the sector amid drone-heavy wars in Ukraine and the Gulf. Sector companies have raised USD 12.3 bn from VC funds so far this year, already eclipsing last year’s full-year total of USD 10 bn.

It’s shaping up to be a boom year for the box office, with estimates now expecting US theaters to rake in some USD 4.5 bn this year, the highest figure since the Covid-19 pandemic six years ago, thanks to a string of blockbusters, the latest of which is Disney’s Toy Story 5.

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