THIS MORNING: CBUAE sells AED 11.6 bn M-bills + Emirates says no thanks to Boeing

Good morning, everyone. While foreign investors are pulling back from UAE markets, for now, Adnoc is doubling down.

Our big story today is news that Dubai saw the biggest foreign investor outflows in the GCC for the second straight quarter. Abu Dhabi wasn’t spared either, though selling in the capital was milder.

Meanwhile, Adnoc has given the green light to a USD 6.2 bn development of the gas cap at its Umm Shaif field, as it looks to squeeze more value out of an asset that’s been producing since 1962.

The note of confidence comes just as the International Energy Agency said it’s “closely monitoring the situation in oil markets” after Houthi threats to blockade Bab El Mandeb risk cutting off an increasingly important waterway acting as a workaround for Hormuz.

Plus: The CBUAE sold AED 11.6 bn in M-bills, and MGX and BlackRock’s GIP have closed their USD 40 bn takeover of Aligned Data Centers.

Liquidity is stabilizing

The Central Bank of the UAE (CBUAE) sold AED 11.6 bn in monetary bills (M-bills) across four tranches on Monday at yields ranging from 3.85% on the shortest tenor to 4.32% on the longest, according to Emirates NBD Research (pdf). Spreads on the newly auctioned bills landed 18-30 basis points above comparable USD benchmark rates, matching recent auction results — suggesting that systemwide liquidity conditions have steadied, according to Emirates NBD.

The CBUAE’s own auction note (pdf) had offered up to AED 13.9 bn across the four tenors, but the gap sits entirely at the short end: the 28-day tap issuance drew AED 2.7 bn against a AED 4.4 bn ceiling, and the 84-day new issuance drew AED 900 mn against a AED 1.5 bn ceiling. The 168-day tap (AED 2 bn) and 336-day new issuance (AED 6 bn) were both allotted in full. That could reflect either softer demand for short-dated paper at these yields or a deliberate CBUAE choice to lean into longer-tenor liquidity absorption.

Flight disruptions persist

Air France has delayed its Dubai and Riyadh return for a second time, missing a 20 July restart target, Gulf News reports. Dubai stays suspended through 27 July, Riyadh through 24 July, and Beirut — also pushed back — through 2 August.

None of the airlines that suspended Gulf routes this year have actually resumed them on schedule. British Airways has pushed its Dubai suspension to 25 October and Riyadh to 8 August; Lufthansa and Swiss have extended their Dubai suspensions to 13 September; and Cathay Pacific and Singapore Airlines have moved flights to late October.

REMEMBER- The European Union Aviation Safety Agency is advising airlines not to fly through Bahrain, Kuwait, Qatar, the UAE, or the western Gulf of Oman through 29 July.

Emirates says no thanks to Boeing

Emirates informed Boeing it won’t accept the first 10 aircraft from its 777X order, arguing that the early 2019 models have been so heavily modified that upgrading them to match the final certified design is no longer feasible, President Tim Clark said at the Farnborough Airshow, The Telegraph reports.

BACKGROUND- Emirates ordered 270 777X aircraft from Boeing at roughly USD 440 mn apiece and has been waiting on the jets since a 2019 static-test failure set the program back. The airline now expects its first 777-9 deliveries in 2Q 2027 — about seven years behind schedule — while US regulators aren’t expected to certify the aircraft until late 2026 or early 2027, Reuters reports.

REMEMBER- Emirates is building out its fleet: The airline ordered 65 additional 777-9s for USD 38 bn last November, taking its total aircraft orderbook to 375 units, including 323 widebodies. While it waits, the carrier has committed USD 5 bn to retrofitting its existing A380s and 777X to extend their service lives.

WEATHER- It’s warmer in Abu Dhabi today, with a high of 42°, while Dubai will see a high of 40°C, with both seeing a low of 32°C, according to our favorite weather app.

The big story abroad

No single story is dominating the front pages this morning, though a few updates are making headlines.

Israel has pulled back its forces from southern Lebanon as a US-brokered truce takes effect. The truce is premised on Beirut exerting military authority over Iran-backed Hezbollah forces. This coincides with Lebanese President Joseph Aoun’s sit-down with US President Donald Trump yesterday, the first summit between the two nations' heads of state in roughly 20 years.

SpaceX is gearing up to unlock as much as USD 116 bn in stocks, as insider trading restrictions lift on 6 August, marking one of the largest share unlocks in history. The window allows early backers and private market buyers to exit with substantial returns, while potentially creating liquidity for short sellers to capitalize on bearish momentum.

LSE open 24/7? The London Stock Exchange revealed a plan to launch a separate venue offering overnight trading in 1H 2027, which will initially be open to funds tracking the UK and US markets. The move is being billed as a way to wrest attention from 24-hour crypto platforms.

***

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.