No end to the dealmaking + debt rush

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WHAT WE’RE TRACKING TODAY

THIS MORNING: MGX raises USD 49 bn + UAE-Iran trade is back

Good morning, friends, and happy Thursday. More debt is once again the headline of our issue this morning, with Mashreq and Rakbank adding their names to a UAE issuance ledger that's starting to look less like a rush and more like a stampede. Between them and Dubai Islamic Bank (twice), FAB (also twice), and Burjeel, that's six note sales in a matter of weeks.

The news that made us do a double-take this morning: a building materials company is now in the juice business. Bildco — yes, the Abu Dhabi outfit that pours concrete for a living — just bought half of a Dubai produce-and-juice trader. Your latest sign that food security diversification is having a moment.

WATCH THIS SPACE- Keep an eye on how long contractors can keep absorbing that 20-25% jump in imported material costs. Moody's says the pipeline is holding “for now” — and credits developers’ resilience to rising costs and the buffers they’ve built for it.

Also on deck today: BlueFive is back, this time closing out a cross-border tie-up we first flagged last September, which sees its asset management arm take a stake in Sidra Capital, Al Murjan’s Jeddah-based Islamic asset manager specializing in private assets, and together launch a combined platform targeting shariah-compliant investment products.

Thaw at Jebel Ali?

Direct cargo shipping lines between the UAE and Iran have resumed the same week that flights restarted between the two countries, after months during which bilateral commercial ties had effectively stalled. Iran’s Trade Development Organisation Logistics Director-General Ali Emami confirmed the resumption of shipping activity to Iran’s Mehr News Agency, saying that “trade relations are returning to normal.”

That’s big: The UAE — Jebel Ali in particular — is the dominant re-export gateway for Iranian imports of intermediate goods, raw materials, and equipment. When that corridor went dark during the conflict, Iranian importers were rerouting through Oman and Turkey at higher costs and longer lead times, and cargo was sitting stranded at Jebel Ali.

Commercial tracks are moving in step with the diplomatic ones. The resumption comes as the US and Iran are scheduled to hold talks in Doha this week — and as the UAE and Iran seem to have agreed their commercial relations are important enough to warrant an attempt to get ties back on track, with recent talks taking place between UAE and Iranian officials, and no attacks on the UAE since May, despite sporadic attacks on Bahrain and Kuwait over the past few weeks.

The AI megafund is real

MGX confirmed in a statement that it closed the near-USD 50 bn fundraise we reported last month, saying it brought in USD 49 bn for its AI investment vehicle — surpassing its initial USD 45 bn target. The vehicle, which is one of the largest dedicated AI investment vehicles ever assembled, drew institutional and private capital from the Gulf, North America, Asia, and Europe to invest across semiconductors, AI infrastructure, enabling technologies, and platforms.

It lands amid a record AI funding rush: AI companies have raised USD 416.6 bn so far this year — nearly double the total raised in 2025, CNBC reports, citing Dealroom. The raise also marks an unusually large third-party fundraising push for Abu Dhabi, whose state investors have traditionally deployed government capital.

The capital is already moving: MGX has backed 14 companies, including OpenAI, Anthropic, and xAI before its SpaceX merger, and is exploring a multi-bn-USD acquisition of Singapore-based data-center operator DayOne. It plans to deploy up to USD 10 bn annually and is also expanding its physical infrastructure footprint, including through an AI campus in France with Bpifrance and Mistral.

Settle before you litigate

DIFC Courts is offering companies a cheaper route to settle commercial disputes through a six-month mediation program with The Mediation Hub MENA, a DIFC-based nonprofit promoting mediation across the UAE and wider region, according to a press release.

How it works: Eligible businesses in the UAE and abroad will receive a complementary one-hour consultation with a registered mediator and 50% off the Mediation Service Center’s administration fees if they proceed. Sessions can be held virtually or in person, with settlements formalized and enforced through DIFC Courts where applicable.

What it covers: The program targets disputes over contracts, payment terms, operating costs, and supply-chain pressures, particularly where parties want to preserve a business relationship or keep an existing contract running. It runs through 31 December.

The UAE has been rolling out multiple new avenues for dispute resolution, including for commercial disputes in Abu Dhabi and Ras Al Khaimah, for family business disputes in Abu Dhabi, as well as a rental dispute resolution center in Ajman.

AED 18 bn growth push

Dubai has approved AED 18 bn of projects spanning transport, trade, culture, investor services, and workforce development, according to a Dubai Media Office post on X. The headline project is a 15-km elevated corridor along First Al Khail Street, running parallel to Sheikh Zayed Road and expected to reduce traffic on Sheikh Zayed Road by 51% during peak hours, according to state news agency Wam. Construction will start in 3Q 2027 and end in 4Q 2030.

Also in the pipeline: A real-time population census after Dubai’s population topped 4.58 mn at end-2025; a unified investor register covering the emirate and its freezones; a private-education strategy targeting 3k jobs for Emiratis by 2033; new customs and culture strategies, with further details undisclosed; and a global center for technology and innovation in Islamic finance.

PSA

Brace for crowds this month at DXB… Around 3 mn passengers are expected to pass through Dubai International Airport in the first half of July, with daily traffic regularly topping 200k and 12 July set to be the busiest day at more than 225k travelers, state news agency Wam reports. Departures will begin surging today as residents head off for the holidays, while transfer passengers are expected to account for around half of total traffic.

WEATHER- The mercury hits 41°C in Abu Dhabi, before cooling to 30°C, while Dubai will see a high of 40°C and a low of 31°C, according to our favorite weather app.

The big story abroad

Global dealmaking is running at its fastest pace in years: Goldman Sachs data show global M&A reached USD 2.8 tn in 1Q 2026, up 49% y-o-y, fueled by the rise of AI and US President Donald Trump's administration’s easing of antitrust guardrails. US transaction value jumped 77%, barely dented by the war, while Europe's transaction volumes fell 14.2%, which dealmakers attribute largely to the war's fallout.

Gulf entities are riding that wave too: Transaction value involving Gulf entities nearly tripled in 1H 2026 to about USD 300 bn, pushing Wall Street firms to bolster their regional teams, Bloomberg reports.

Speaking of AI: Washington lifted the export controls it slapped on Anthropic's Fable 5 and Mythos 5 just three weeks ago over security concerns — though the fight over how to regulate frontier AI is only getting started, the Wall Street Journal writes.

On the war front, two days of talks in Doha ended with no real progress — negotiators spent the session re-litigating issues both sides had already claimed to resolve in the interim agreement two weeks ago, chiefly Hormuz shipping and Iran's frozen funds. The next round waits until after Ayatollah Khamenei's funeral on 9 July. Iran still says it'll start tolling ships through Hormuz from mid-August, and oil hit a four-month low.

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Mashreq and Rakbank are the latest names to tap debt markets flooded with demand

Our friends at Mashreq and Ras Al Khaimah’s Rakbank added their names to the UAE’s swelling debt issuance ledger this week, as the market rush that began after the Iran-war-era freeze continues ahead of an expected summer lull.

Mashreq priced a USD 500 mn perpetual non-call 5.5-year AT1 at a 6.625% coupon, tightening from initial price guidance in the 6.875% area, with the final orderbook exceeding USD 1 bn, Zawya reports. Rakbank, meanwhile, raised USD 600 mn through a five-year senior unsecured note at a 5.375% coupon — priced at UST+125bps, well inside the UST+155bps area where books opened — with demand exceeding USD 1.2 bn, Zawya reports separately.

The two issuances cap a frantic few weeks for UAE debt. Dubai Islamic Bank raised USD 1 bn through a perpetual non-call six-year AT1 sukuk at a 6.25% rate, with the orderbook peaking at over USD 2.3 bn. FAB also priced USD 750 mn in Tier 2 capital securities — its second issuance in June alone, following a EUR 750 mn green bond earlier this month. Outside of the banking world, Abu Dhabi-listed healthcare group Burjeel issued a USD 500 mn sukuk — the opening tranche of a USD 1.5 bn borrowing plan it had shelved when the Iran war began in February.

Why it matters: The oversubscription ratios across all five issuances tell the same story: there is plenty of appetite to go around for UAE paper. Spread compression on both the Rakbank and Mashreq issuances — each pricing well inside initial guidance — suggests that appetite isn’t just broad but price-insensitive.

Worth noting: Mashreq’s February AT1 came at 6.25%; this week’s equivalent instrument priced at 6.625%. The timing is crucial here: The lender’s last AT1 issuance was launched ahead of the Lunar New Year break, the start of Ramadan, and an expected wave of competing supply from other UAE banks. Today, it comes amid a wave of issuances, and though the market is hungry, it’s pricing in some macro uncertainty.

What to watch: How long the window stays open, especially if geopolitical uncertainty continues, and how many corporates and banks follow with more issuances.

ADVISORS- Abu Dhabi Commercial Bank, Arab Banking Corporation, Citi, Emirates NBD Capital, First Abu Dhabi Bank (FAB), ICBC, ING, JPMorgan, Mashreq, Standard Chartered, and Rakbank acted as joint bookrunners on the Rakbank issuance. Meanwhile, ADCB, BBVA, Barclays, Bank of America, Crédit Agricole, Emirates NBD Capital, FAB, Mashreq, and Standard Chartered ran the books on the Mashreq AT1, with BofA acting as billing and delivery bank.

Abu Dhabi’s Bildco buys into food trading in a bet on the UAE’s supply chain priorities

Abu Dhabi building materials company Bildco is buying into food trading — a move that signals the company is repositioning itself as a diversified holding group, according to a press release (pdf). The company has agreed to acquire a 50% stake in Dubai-based AG Group, which trades fresh produce, runs juice production operations, and manages a logistics network that serves clients including Emirates Flight Catering, Americana, Majid Al Futtaim, and ADNH Compass.

This is Bildco making its first move beyond its core sector. The company says the transaction is part of a long-term strategy to build exposure to sectors tied to the UAE’s food security and supply chain agenda.

What we know so far: Financial terms were not disclosed, and the transaction remains subject to shareholder and regulatory approvals, independent valuation, and due diligence.

BACKGROUND- AG Group operates 22 warehouses, a fleet of 351 vehicles, and 80 loading bays. It counts more than 1k customers across fresh fruit and vegetables, agriculture, real estate, and logistics.

BlueFive buys into Sidra Capital as Saudi partner takes stake in BlueFive786

GCC investment platform BlueFive Capital and Saudi Arabia’s Al Murjan Group have closed the cross-border ownership swap that formalizes their shariah-compliant investment partnership — and are rebranding the combined entity as BlueFiveSidra, according to a press release (pdf).

The tie-up, which we first noted last September, saw BlueFive take a substantial stake in Sidra Capital, Al Murjan’s Jeddah-based Islamic asset manager specializing in private assets, while Al Murjan took a substantial stake in BlueFive786, BlueFive’s Singapore-based shariah-compliant investment arm.

The combined platform will target shariah-compliant investment products — including retirement and savings schemes — across the GCC and Southeast Asia, with a particular focus on Indonesia, Malaysia, Bangladesh, Brunei, and Singapore.

The platform has real scale behind it: BlueFive Capital manages around USD 15 bn, while BlueFiveSidra’s wider portfolio comes in at USD 3.8 bn.

On governance: BlueFive Capital founder and CEO Hazem Ben-Gacem (LinkedIn) will chair both the investment and executive committees of BlueFiveSidra following completion of the transaction. BlueFive will establish an office in Riyadh to work alongside Sidra Capital in managing and executing investments in Saudi Arabia.

It’s been a busy year already for BlueFive Capital. The firm has deployed funds at pace, taking stakes in the vehicle leasing business, backing autonomous delivery startup CargoX, providing the largest investment ticket for the consortium acquiring Porsche’s stake in Bugatti, closing a multi-bn-USD fund for US and European tech plays, and taking stakes in Tadawul-listed Gulf General Ins. and mobility firm Massar Solutions.

The UAE’s building boom survives a 25% materials shock — for now

The UAE’s construction pipeline is holding — for now. Developers are keeping projects on schedule even as imported material costs climb 20-25% from pre-war levels, Moody’s Ratings said in a report picked up by The National and Arab News. Construction is continuing “largely as planned,” with resilience so far “[exceeding] the expectations of many market observers,” the agency said.

The detour is costing more: Shipments have been rerouted through Oman, Saudi Arabia, and the UAE’s east coast to reduce reliance on the Strait of Hormuz, slowing down execution.

“Contractors are so far absorbing most of the cost inflation,” Moody’s said, as fixed-price contracts and advance purchases should limit the hit to developers’ margins and cashflow over the next 12 months.

IN CONTEXT- We previously reported that data-center and hotel construction costs could rise by about 10%, while UAE material prices had already jumped as much as 71% y-o-y as surging demand collided with shipping and freight bottlenecks.

The good news? Developers have stockpiles to fall back on. They typically hold two to six months of critical imported materials, while “as projects approach completion, developers increase buffer inventories” to avoid handover delays, Moody’s said. Many projects due through end-2026 were already advanced or sufficiently supplied when the disruption began.

Local sourcing helps too: Concrete, steel, aluminum, and ceramics are largely sourced inside the UAE. Suppliers are also adding capacity — Bildco plans to add 1 mcm of concrete production in Abu Dhabi — while the government is drawing up a list of 150 critical commodities, including industrial goods, under its new supply-chain resilience program. Products like elevators, air-conditioning systems, and MEP components remain more exposed to global supply chain disruptions.

Some developers also have an extra cushion: Binghatti, Sobha, and Emaar have more control through integrated construction arms, whereas others who rely on third-party contractors might be more exposed. Moody’s said such models provide “greater control over procurement and construction processes,” though contractors also entered the shock with stronger margins and fewer labor shortages.

The demand picture is also splitting by emirate. Abu Dhabi and Sharjah have held up best, while Dubai’s off-plan transaction values fell more than 50% in June from February. Timely handovers are therefore critical: Developers collect 20-40% of sales proceeds at completion in Dubai and Abu Dhabi, versus around 60% in Sharjah.

Paraguayan poultry heading to the UAE

Paraguayan poultry is heading to UAE shelves, with beef set to follow, as trade ties between the two countries begin translating into new food imports alongside broader cooperation on investment and infrastructure, Al Bayan reports, citing comments made by Paraguayan President Santiago Peña during the UAE-Paraguay Business Forum in Asunción.

The move comes as the UAE has increasingly been looking to diversify and shore up its food supply chain after the regional war exposed the risks associated with heavy import dependency.

Gulf SWFs deployed a record USD 53.9 bn in 1H 2026, showing no signs of slowing despite the war

The US-Iran war didn’t slow Gulf SWFs. Gulf sovereign wealth funds (SWFs) deployed a record USD 53.9 bn across 108 transactions in 1H 2026 — an all-time high in value and the fourth-most active semester on record — even as the Iran war roiled markets and oil prices, according to Global SWF’s 2026 GSR Scoreboard seen by EnterpriseAM.

Gulf funds punched above their weight. Of the 42 global mega-transactions — investments worth USD 1 bn or more — 21 involved Gulf SWFs, which have become frequent co-investors alongside other large asset owners. Mubadala led the pack, deploying USD 15.2 bn at group level. Almost half of GCC sovereign capital went to the US, followed by China and the UK, with technology the most popular sector, driven by AI funding rounds.

Why it matters: Gulf SWFs deployed at record pace, concentrated in technology and in the US, and used the volatility as cover to co-invest with global partners at scale. The question for 2H is whether the reopening of Hormuz and normalization of oil prices will sustain that appetite, or whether some funds will begin drawing down to plug domestic fiscal gaps as the reconstruction tab comes due.

REMEMBER- Some of the biggest tickets from GCC SWFs in recent months were the PIF, alongside Silver Lake and Affinity Partners, advancing Electronic Arts’ USD 55 bn acquisition. Mubadala committed USD 325 mn to Ørsted’s Hornsea 3 offshore wind farm alongside Apollo, USS, and La Caisse, and led a USD 170 mn round into Property Finder.

BUT- The Middle East’s relative share of global SWF activity slipped to 38% in 1H 2026, compared to 48% in 2H 2025, due to stronger activity from other major investors including Canada’s Maple 8 institutions and Singapore’s GIC and Temasek Holdings.

Zooming out

The global state-owned investor universe now manages an estimated USD 62.5 tn — USD 16 tn by SWFs, USD 28 tn by public pension funds, USD 17.6 tn by central banks, and USD 900 bn by royal family offices. The Iran war and associated volatility dented performance in the short term, but a rapid recovery in global stocks and bonds pushed AUM to record highs.

The industry is also on track for its most active year in terms of fresh capital deployment. Strip out PIF’s one-off USD 28.8 bn investment in EA in December 2025, and the value of transactions by state-owned investors globally in 1H 2026 was 9% higher than the prior semester — with SWFs deploying USD 83.3 bn across 188 transactions and public pension funds spending USD 60.3 bn across 178. If the pace holds, 2026 could be the most prolific year on record.

MARKETS THIS MORNING-

Asian markets are collectively in the red this morning after a chip sell-off that propagated from Wall Street. Kospi is down over 6%, while Japan’s Nikkei is down more than 2% and the Shanghai Composite is unchanged. Meanwhile, Wall Street futures are little changed.

ADX	9,789	-0.2% (YTD: -2.1%)
DFM	6,010	+0.9% (YTD: -1.7%)
Nasdaq Dubai UAE20	4,710	+0.6% (YTD: -3.7%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	3.6% o/n	4.2% 1 yr
TASI	10,857	+0.5% (YTD: +3.5%)
EGX30	50,533	+0.1% (YTD: +20.8%)
S&P 500	7,483	-0.2% (YTD: +9.3%)
FTSE 100	10,478	-0.2% (YTD: +5.3%)
Euro Stoxx 50	6,283	-0.7% (YTD: +8.5%)
Brent crude	USD 70.85	-1%
Natural gas (Nymex)	USD 3.19	-0.8%
Gold	USD 4,080.1	-0.1%
BTC	USD 60,107	+2.6% (YTD: -32.3%)
Chimera JP Morgan UAE Bond UCITS ETF	AED 3.74	0.0% (YTD: +2%)
S&P MENA Bond & Sukuk	152.12	-0.3% (YTD: +0.2%)
VIX (Volatility Index)	16.59	+0.9% (YTD: +11%)

THE CLOSING BELL-

The DFM rose 0.9% yesterday on turnover of AED 625.6 mn. The index is down 1.7% YTD.

In the green: Emirates Integrated Telecommunications Company (+3.5%), Emirates REIT (CEIC) (+3.2%), and Emaar Development (+3.0%).

In the red: BHM Capital Financial Services (-4.5%), Tecom Group (-3.5%), and Talabat Holding (-3.3%).

Over on the ADX, the index fell 0.2% on turnover of AED 958.5 mn. Meanwhile, Nasdaq Dubai was up 0.6%.

CALENDAR

JULY

28-29 July (Tuesday-Wednesday): Federal Open Market Committee (FOMC) meeting.

SEPTEMBER

1-3 September (Tuesday-Thursday: Middle East Energy, Dubai World Trade Center, Dubai.

7-9 September (Monday-Wednesday): AIM Congress, Dubai World Trade Center.

7-9 September (Monday-Wednesday): International Property Show, Dubai World Trade Center, Dubai.

12-13 September (Saturday-Sunday): Emirates International Congress on AI & Visionary Leadership in Transforming Healthcare, Adnec Center Abu Dhabi.

14-17 September (Monday-Thursday): Arabian Travel Market, Dubai World Trade Center, Dubai.

15-16 September (Tuesday-Wednesday): Federal Open Market Committee (FOMC) meeting.

29-30 September (Tuesday-Wednesday): AFCM Annual Conference, Abu Dhabi.

OCTOBER

4-10 October (Sunday-Saturday): World Space Week, Abu Dhabi.

5-7 October (Monday-Wednesday): AI Everything Global, Adnec Center, Abu Dhabi.

12-14 October (Monday-Wednesday): Airport Show, Dubai World Trade Center, Dubai.

13-15 October (Tuesday-Thursday): Annual Meeting of Global Future Leaders, Dubai.

20-22 October (Tuesday-Thursday): Future Health Summit, Adnec Center Abu Dhabi.

27-28 October (Tuesday-Wednesday): Arab Competition Forum, Dubai.

27-28 October (Tuesday-Wednesday): Federal Open Market Committee (FOMC) meeting.

30 October (Friday): Large businesses achieving annual revenues equal to or above AED 50 mn must appoint an accredited service provider for e-invoicing implementation.

Signposted to happen sometime in October 2026:

Abu Dhabi Space Week, Abu Dhabi.

NOVEMBER

2-6 November (Monday-Friday): Dubai Future Finance Week, Dubai.

4 November (Wednesday): Digital Transformation Summit, Sofitel, Abu Dhabi.

9-10 November (Monday-Tuesday): Annual government meetings, Abu Dhabi.

9-12 November (Monday-Thursday): EMEA Council on Hotel, Restaurant and Institutional Education Conference, Dubai College of Tourism, Dubai.

10-12 November (Tuesday-Thursday): Dubai International Electric Vehicle Exhibition & Conference, Dubai World Trade Center.

16-18 November (Monday-Wednesday): World Police Summit, Dubai World Trade Center, Dubai.

DECEMBER

2-4 December (Wednesday-Friday): UN Water Conference, UAE.

4-6 December (Friday-Sunday): Formula 1 Abu Dhabi Grand Prix, Abu Dhabi.

8-9 December (Tuesday-Wednesday): Capital Market Summit, Madinat Jumeirah, Dubai.

8-9 December (Tuesday-Wednesday): Federal Open Market Committee (FOMC) meeting.

8-10 December (Tuesday-Thursday): Abu Dhabi Water & Power Week, Adnec Center, Abu Dhabi.

Signposted to happen sometime in 2027:

1 January: Deadline for large businesses to implement e-invoicing;
1Q 2027: Completion of the first phase of Hassyan seawater desalination project;
1-3 February (Monday-Wednesday): World Governments Summit;
31 March: Small businesses with annual revenues of less than AED 50 mn are obliged to contract with an accredited service provider for e-invoicing implementation;
31 March: Government entities are required to appoint an accredited service provider for e-invoicing implementation;
21-22 April (Wednesday-Thursday): Token2049, Dubai;
1 July: Deadline for small businesses to implement e-invoicing;
1 October: Deadline for governments to implement e-invoicing;
Abu Dhabi’s solar and battery energy facility, combining 5.2 GW of solar capacity and 19 GWh of battery storage, is set for commissioning.

Signposted to happen sometime in 2028:

Artificial Intelligence Summit.

Signposted to happen sometime in 2029:

Sibos 2029 organized by the Society for Worldwide Interbank Financial Telecommunication (SWIFT), Dubai;
Annual Meetings of the World Bank Group and the International Monetary Fund, Abu Dhabi;
The commissioning of the seventh phase of Mohammed bin Rashid Al Maktoum Solar Park.

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