Good morning, everyone. Everyone in the UAE wants someone else’s money this morning. From sovereign wealth to sukuk, the story running through today’s issue is the same: turn a balance sheet into a fundraising platform, and get other people’s capital working alongside your own.
Mubadala is opening its USD 25 bn credit book to outside pension funds and insurers for the first time, in a move proving that even a USD 385 bn sovereign wealth fund wants a bigger asset-management fee line.
Similarly, after bankrolling its global expansion almost entirely off its own balance sheet, Arada is setting up an ADGM-based fund platform to bring in institutional LPs for the first time.
DAE isn’t waiting around either, rolling out a new USD 6 bn leasing platform with Neuberger fresh off of its tie-up with Blackstone, and Ajman Bank is joining the debt rush, marketing its first-ever AT1 sukuk. All signs point to UAE players leaning harder on outside capital to scale.
WEATHER- Once again, we’re in for a high of 41°C in both Dubai and Abu Dhabi, along with lows between 31-32°C, according to our favorite weather app.
Korea Inc. could get an Abu Dhabi base
Abu Dhabi wants Korean industry to move from partnership talk to the factory floor. UAE-based AG Company signed a strategic partnership with South Korea’s Akbar Investment Company to study setting up a Korean Industrial Zone in Abu Dhabi, with Al Ain nominated as the proposed location, state news agency Wam reports. The first phase is expected to house more than 25 factories and draw over USD 1 bn in investment — but the agreement is still in the study stage.
They’re preparing, though: The visit saw 15 undisclosed MoUs signed with Korean companies and manufacturers that were part of a wider Korean delegation led by Jung Min Kim, a member of Korea’s National Assembly, and its trade, industry, energy, SMEs, and startups committee.
IN CONTEXT- The move builds on a wider UAE-Korea industrial push. Earlier this year, the two sides signed a USD 35 bn defense cooperation MoU and agreed to reposition Mubadala’s USD 30 bn pledge toward nuclear energy, AI, advanced tech, and culture — itself building on the 2024 CEPA and 19 earlier MoUs spanning energy, defense, tech, and climate.
Ajman Bank eyes first AT1 issuance
Ajman Bank is joining the Gulf’s AT1 party. The Dubai-listed lender has mandated nine banks — our friends at Mashreq, ASB Capital, Dubai Islamic Bank, Emirates NBD Capital, FAB, JPMorgan, Morgan Stanley, Standard Chartered, and Warba Bank — to arrange a USD-denominated perpetual non-call 5.5-year AT1 capital sukuk, its first-ever capital securities transaction, Zawya reports. Investor calls kicked off yesterday ahead of a potential pricing.
SOUND SMART- This sukuk is structured as an AT1 (Additional Tier 1) — it’s subordinated, has no fixed maturity, and — under Basel III and CBUAE capital rules — counts as regulatory capital that cushions the bank against losses. Banks issue AT1 specifically to bolster their capital adequacy ratios.
Why it matters: Ajman Bank is a BBB+ lender — smaller and lower-rated than the FABs and DIBs that have dominated this year’s Gulf capital-securities calendar. Its entry into the AT1 market suggests that the appetite driving 2026’s issuance wave has broadened beyond blue-chip names to smaller regional banks testing whether investors will follow them down the credit curve.
BACKGROUND- It’s been a frantic few weeks for UAE debt. Dubai Islamic Bank raised USD 1 bn through a perpetual non-call six-year AT1 sukuk at 6.25%, more than 2x oversubscribed. FAB priced USD 750 mn in Tier 2 securities — its second issuance in June alone, after a EUR 750 mn green bond earlier in the month. Mashreq returned to the market with a USD 500 mn AT1 at 6.625%, up from the 6.25% coupon on its February AT1 — itself the first UAE bank capital trade of the year. Rakbank priced alongside it. Outside banking, Abu Dhabi’s Burjeel Holdings sold a USD 500 mn sukuk.
ADCB systems back online
After days of banking services disruptions, Abu Dhabi Commercial Bank’s (ADCB) main systems are back up and running, the lender said in a statement. This comes after ADCB customers temporarily lost access to banking services at the end of last week due to “essential system maintenance.” Core services are now back in place, and mobile app services are working for “a large portion” of customers as the lender works to restore full access.
UAE, Syria partner on food security
Food exports and supply chains are the latest sectors targeted by increasing UAE-Syria relations, with the two sides set to launch an agricultural system covering the entire food supply chain stack, Syrian state news agency Sana reports.
Who’s involved? ADX-listed investment firm Mair Group, which specializes in food retail and real estate, and UAE-based software and agri-tech player NVSSoft.
Syrian farmers will be able to export fresh produce directly to the UAE via Iraq as part of the initiative. Mair will set up four processing centers in Syria, and NVSSoft will develop a digital platform to support the plan.
IN CONTEXT- The UAE is actively looking to shore up its food supply chain after the regional war exposed risks in its food security system. Furthermore, the Emirates has moved quickly to back various stages of Syria’s reconstruction, including in the real estate and logistics sectors, with other avenues for collaboration in the works.
Market watch
One major Asian buyer is stepping up crude orders: China placed orders for at least 26 mn bbl for delivery in July or August from the UAE, Saudi Arabia, Qatar, and Iraq via tenders and one-off purchases from trading firms, the Financial Times reports, citing data from Argus. Beijing seeks to replenish domestic stocks — depleted during the regional war — that may have fallen to around 1 mn bbl / d in May and June. Beijing intentionally chose not to replace its missing Gulf oil with alternatives from elsewhere, forestalling fears of surging global prices.
The return of Beijing to Middle Eastern crude markets is a bullish signal, S&P director of oil trading research Zhuwei Wang told the FT. That said, a major rebound in Chinese crude oil purchases depends on Beijing lifting informal export restrictions on refined products like gasoline and jet fuel, Argus’ head of Asia crude pricing Fabian Ng says. These controls — put in place to protect domestic supply during the Iran war — cap the amount of raw crude China can currently import.
Data point
AED 221.3 bn — that’s the value of Dubai residential sales in 1H 2026 from nearly 79.2k transactions, according to Cavendish Maxwell insights published in a press release. The market remains large, but it has cooled from last year’s pace, with 1H transaction volumes down just under 14% y-o-y and sales values falling 15.7%.
June pointed to some resilience after a quieter May: Residential transactions rose nearly 30% m-o-m to 12.3k transactions worth AED 25.17 bn, partly as delayed post-Eid activity came through. Off-plan continued to carry the market, accounting for 76% of June transactions and AED 17.6 bn in sales.
Luxury residences still running hotter than broader market: Dubai logged a record 296 homes worth more than USD 10 mn in 1H, with the luxury transaction value rising 14% y-o-y to USD 5.1 bn, according to a Knight Frank report (pdf). But timing matters — many of those agreements were closed before the regional conflict and were registered later, meaning the real test for prime demand may come after summer.
Knight Frank’s outlook is positive: “We’re seeing daily transactions come through because the base fundamentals are still unchanged,” head of MENA research Faisal Durrani said. “The world-class infrastructure, global connectivity, ’can-do’ government mantra, pro-business environment, cosmopolitan lifestyle, and excellent education and healthcare facilities are amongst the most competitive globally.”
The big story abroad
It’s an oddly quiet Tuesday morning on the foreign front pages, with no single story dominating headlines. Among those getting top billing:
#1- Iran’s military reportedly fired at least two missiles on commercial vessels crossing the Strait of Hormuz in the early hours of the morning, two US officials told Axios. The US “is likely to retaliate with strikes against Iranian targets,” according to Axios.
#2- Vertex Pharma will acquire drugmaker Crinetics Pharma for a total equity value of approximately USD 10 bn, diversifying its access to treatments that could generate more than USD 5 bn in annual revenues. The move is the latest in a surge of pharma dealmaking, as big pharma gains confidence in navigating regulatory scrutiny while racing to offset looming patent expirations.
#3- Major banks aim to skirt limits on debit card fees: A coterie of US banks — including JPMorgan Chase, Bank of America, and Wells Fargo — are reportedly looking to bypass a federal law capping debit card fees by acquiring a network owned by the fintech player Fiserv. While these caps cost the industry bns annually, banks have long argued the limits restrict them from offering customer rewards and other services. The acquisition is still in early stages.
#4- And in the gaming world: Microsoft is letting go of 4.8k employees as part of a major restructuring of its Xbox division, as the gaming industry faces an intense hardware crisis. The company is pivoting to navigate a paradigm shift ushered in by advancements in AI.
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