Joining the alliance

1

WHAT WE’RE TRACKING TODAY

THIS MORNING: Dana Gas gradually restarts Khor Mor production + MENA equity issuances plunge in 1H

Good morning, everyone. Abu Dhabi’s tech ambitions keep widening, and there’s plenty of debt and energy news we’re keeping our eye on as well.

In a sign of further UAE-US AI collaboration, G42 has joined Nvidia’s new Open Secure AI alliance backing open-weight and open-source AI models and cybersecurity tools. This all comes hot on the heels of a cybersecurity incident.

On the debt side, CBD completed its AT1 reset, while Masdar is moving ahead with building out its 50/50 JV with Montenegro’s state-backed utility, targeting as much as 2 GW. Elsewhere, Dana Gas is gradually restarting production at Khor Mor once again after operations were shut down as tensions re-escalated in the region.

WEATHER- Temperatures today will hit 42°C in Dubai with an overnight low of 30°C, and 43°C in Abu Dhabi before cooling to an overnight low of 32°C, according to our favorite weather app.

Dana Gas resumes operations at Khor Mor, again

Dana Gas is gradually restarting production at northern Iraq’s Khor Mor gas field, less than two weeks after shutting down facilities over “credible security threats.” The Abu Dhabi-listed energy firm confirmed in a disclosure (pdf) that output will be carefully ramped up following high-level security assurances from both the Kurdistan Regional Government and Iraqi federal authorities.

Why it matters: The quick return to operations highlights the pressure on authorities to protect a key regional power generation asset, as Khor Mor supplies fuel for some 75% of the Kurdistan region of Iraq’s electricity generation and serves some 6 mn in the region.

More aerospace incoming in 3Q

Dubai South is set to see a new aerospace support hub in 3Q, as Mohammed Bin Rashid Aerospace Hub pushes ahead with its 16.7k Sky Support Complex for firms linked to the aerospace industry, according to a press release.

What to expect: The development within the freezone will include 14 warehouse, office, and commercial units tailored to aviation businesses in the Aerospace Supply Chain Zone. The new complex will land as the UAE pushes to establish itself as an aviation hub, building Al Maktoum International (DWC), while also doubling down on the space industry to reach its target of doubling space economy revenues.

Fuel prices to drop in August?

The UAE could see a modest drop in retail fuel prices in August, marked by a second consecutive month of cuts following volatile swings in global crude markets, Century Financial’s Vijay Valecha told Khaleej Times. However, ongoing regional tensions and shipping disruptions are keeping refined fuel expensive, meaning any retail price cuts will be small and slow to take effect.

ECM’s summer wait

MENA equity issuance had a brutal 1H, with equity and equity-linked fundraising dropping 71% y-o-y to USD 2.1 bn, the weakest first-half performance since 2020, according to LSEG data relayed by Zawya. Transaction volumes also fell 55% to 13 as the Iran war pushed GCC issuers to reassess listing and follow-on plans.

The UAE still showed up: Sharjah Islamic Bank was the region’s largest follow-on issuer, raising USD 701 mn through the AED 2.59 bn rights issue we previously flagged as a move to strengthen capital buffers and support asset growth, backed by Sharjah’s government. Emirates NBD Capital also topped the regional equity capital markets bookrunner table with a 38% share after working on three issues worth USD 779.4 mn.

IPOs took the bigger hit: The region saw just eight listings in 1H, down from 25 a year earlier, with IPO proceeds falling to USD 1.1 bn — the lowest first-half tally since 2021. We’ve already seen UAE names tap the brakes, with Dubai Holding reportedly pausing plans to list its retail assets and EGA pushing its much-anticipated IPO to at least next year.

The pipeline is not dead, just waiting for a safer window: Emirates NBD Capital’s Prasad Chari said several companies are looking at equity capital markets trades after the summer but warned it will be difficult to make up lost time in the second half — especially against last year’s chunky comparables, including ADCB’s USD 1.6 bn rights issue and Mubadala’s USD 800 mn du sell-down.

Giving AI defense capabilities some claws

The UAE and US are joining forces to accelerate military AI development, forming the Task Force Talon Synapse, according to a statement. Billed as the first bilateral task force to scale AI applications in defense, the task force will launch “in the coming weeks,” consisting of 20 US and Emirati personnel.

More defense moves: The news comes weeks after Washington granted Abu Dhabi broader license-free access to advanced US chips, satellites, and defense equipment. Approved UAE recipients for advanced computing items include local entities G42 and Core42.

A long time coming

The Guggenheim Abu Dhabi will open its doors on 11 December, two decades after it was first announced. The fourth museum in Guggenheim’s global network, the museum will focus on post-1960s art across 30 galleries. It joins other notable culture hotspots in the capital, namely Louvre Abu Dhabi, Zayed National Museum, and the Natural History Museum.

Data point

30% — that’s the y-o-y growth in the number of active registered companies in Dubai International Financial Center in 1H, pushing the total count to over 10k for the first time, according to a statement. A total of 2.3k firms joined the financial freezone in the first six months of the year, as the number of regulated financial services players grew 16% y-o-y to 1.1k.

Emirates adds crypto payments for UAE flight bookings

You can now pay for flights using crypto after Crypto.com and Emirates teamed up to integrate payment through Crypto.com to buy flights, the exchange said in a press release. The service is available to UAE residents and for flights in AED.

ICYMI- Earlier this year, the Singapore-based exchange also partnered with authorities to allow UAE residents to settle government fees using stablecoin payments.

The big story abroad

After a four-day pause in direct US-Iran hostilities, the Islamic Revolutionary Guard Corps launched an “attempted surprise attack” on US military bases in the region, the US Central Command said. A US military base in Jordan was reportedly targeted, Axios reports.

Latest on negotiations? Oman introduced a Gulf-backed proposal to Iran aimed at managing the Strait of Hormuz, which includes a provision for collecting voluntary transit fees, Reuters reports, citing a Gulf source and a Western diplomat.

FIFA is looking to sell around 20% of FIFA Forward Enterprise — a new commercial entity valued at some USD 20 bn. FIFA has enlisted JPMorgan to help raise USD 4.2 bn this year by courting external investors. The move has drawn criticism from fan groups, lawmakers, and UEFA, Europe’s governing body of football, with critics accusing the Switzerland-based non-profit of selling out.

China’s battery giant CATL is making strides into AI, power grids, and ships. As the world’s leading battery manufacturer, the company now powers AI data centers, positioning itself at the forefront of the global transition from fossil fuels to renewable energy, grid stabilization, and heavy industry electrification. Its batteries already power some 1k vessels off China’s coastline and rivers and ports.


Destination Sahel is back for a second edition — and this year, it's not just about the beach.

Gulf sovereign wealth funds are pouring billions into the North Coast, Gulf buyers keep showing up despite regional headwinds, and a new 400km master plan could reshape the whole coastline before summer’s out.

Over this season’s series, stay tuned to see who's really buying Sahel, where the money's coming from, and what could still go wrong.

Plus, the hotels, restaurants, and openings worth checking out this summer.

Tap or click here to subscribe to the Egypt edition, coming out in your inbox today.

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2

Tech

G42 joins Nvidia’s alliance for open-source AI

G42 joined Nvidia’s Open Secure AI Alliance, a new group backing open-weight and open-source AI models and cybersecurity tools, the Abu Dhabi AI firm said on X. The alliance’s inaugural members include Microsoft, IBM, Cisco, Cloudflare, CrowdStrike, Hugging Face, Palantir, Salesforce, Siemens, and SpaceXAI, according to an Nvidia statement.

Why it matters: G42 is backing Nvidia’s push to make AI security tools more open and less dependent on systems controlled by a few providers, with chief executive Peng Xiao saying open models are needed alongside closed ones, with “security, trust and sovereign control” built in from the start. So far, open AI models have mainly been produced by Chinese companies, with US firms often opting for more closed-source options.

The plan: The alliance plans to share tools that help cyber teams find vulnerabilities, test AI agents, and run defensive models on their own infrastructure — a useful pitch for governments and companies dealing with sensitive systems.

The timing is not random: Nvidia launched the alliance after a recent cybersecurity incident at Hugging Face, arguing that defenders need AI tools they can inspect, adapt, and run themselves when speed matters. While the company says open systems can be misused, it maintains that the solution is stronger safeguards and evaluation rather than blanket restrictions on open frontier AI.

It follows a string of other victories for the UAE’s AI ambitions: The US recently upgraded the UAE’s export status, opening the door for approved companies including G42 and Core42 to buy advanced chips and other sensitive US tech. Foreign Trade Minister Thani Al Zeyoudi previously said the UAE is moving faster than planned on its USD 1.4 tn US investment pledge and expects US chip imports “very soon,” with deliveries headed to UAE-US projects including the planned 5 GW data-center complex in Abu Dhabi.

G42’s own securing of advanced chips was contingent on security measures, with requirements including divesting from Huawei and severing ties with Chinese tech firms to secure the partnership with the US, as well as chip exports.

3

DEBT WATCH

CBD completes its USD 600 mn AT1 reset

Commercial Bank of Dubai (CBD) has issued USD 600 mn in Perpetual Additional Tier 1 (AT1) capital securities and redeemed an existing USD 600 mn AT1 issuance, according to a statement from advisor Dentons. The new securities carry a fixed-rate, resettable coupon of 6.625% and are listed on Euronext Dublin and Nasdaq Dubai.

This completes the replacement trade: We previously noted CBD had upsized its AT1 comeback to USD 550 mn from an initial USD 500 mn target after orders topped USD 825 mn, with pricing inside initial guidance in the low 7% area. The latest statement puts the transaction at USD 600 mn, matching the size of the AT1 CBD redeemed in April and effectively resetting that layer of the bank’s regulatory capital stack.

Zoom out: CBD is not alone in moving while the window is open. The print slots into the Gulf lender rush to lock in regulatory capital at cheaper levels, after Ajman Bank priced its debut AT1 sukuk at 6.50% earlier this month. The UAE saw a wave of AT1 issuances in June, from Dubai Islamic Bank, Mashreq, and First Abu Dhabi Bank, with similar later moves from Ajman Bank pointing to smaller, lower-rated lenders looking to take advantage of the spread rebound.

ADVISORS- Standard Chartered and Citi acted as joint structuring agents and joint global coordinators. ADCB, Barclays, Citi, CBD, Citi, Emirates NBD, FAB, and Standard Chartered were joint lead managers and bookrunners, while Dentons advised CBD.

4

RENEWABLES

Masdar kicks off Montenegro solar projects

Masdar and Montenegro's state-backed utility Elektroprivreda Crne Gore kicked off execution of their renewable energy partnership, inking agreements to build out 150 MW of solar capacity, it said in a statement.

The solar projects, 115 MW Štedim and 35 MW Krupac, are the first concrete outcomes of the 50/50 JV the two agreed to set up in April, which aims to develop as much as 2 GW in capacity. The two are also exploring developing more than 400 MW of pumped hydro energy storage in order to help balance intermittent renewable generation.

ICYMI- The April agreement also included provisions for collaboration on wind, pumped energy storage, standalone battery energy storage systems, and hybrid solutions. Production will target domestic needs in Montenegro, as well as exports to the Western Balkans and Southern Europe.

Why it matters: The Abu Dhabi-based renewables giant can now export dispatchable clean electricity into Southern Europe by addressing renewable energy's biggest challenge: grid flexibility. Montenegro's subsea power cable with Italy allows a direct route into European power markets, enabling excess renewable power to be stored and released during periods of peak demand. It builds on Masdar's growing European foothold, which now includes 100% of Greek developer Terna Energy, 49.99% of a EUR 849 mn portfolio, and a growing solar portfolio in Spain, as it eyes 100 GW of global renewable capacity by 2030.

5

EARNINGS WATCH

2Q earnings roundup: Fertiglobe, NMDC Energy, NCTH

Fertiglobe rides the price spike

Higher fertilizer prices helped Fertiglobe’s earnings as net income attributable to shareholders jumped more than fivefold y-o-y to USD 114.5 mn in 2Q 2026, while revenue reached USD 1.1 bn, almost double the USD 565.8 mn recorded the year before, according to its earnings release (pdf) and management discussion and analysis report (pdf). Adjusted net income — which strips out conflict-related costs, export duties, forex effects, and other one-offs — rose around 12.5x to USD 144.6 mn.

Prices did the heavy lifting: Benchmark ammonia prices in northwest Europe nearly doubled y-o-y to USD 866 per ton, while Egypt urea prices climbed 77% to USD 723 per ton. The gains outweighed higher logistics costs and a 3% drop in own-produced sales volumes as regional trade disruption constrained UAE exports.

On a 1H basis, revenue rose 59% y-o-y to USD 2 bn, while attributable net income more than tripled to USD 312.4 mn. Net debt fell 38% since the start of the year to USD 621 mn.

Dividend: Management proposed a payout of at least USD 150 mn, or 6.73 fils per share — up more than 20% y-o-y and scheduled for October, pending board approval.

Tensions and capex weigh on NMDC Energy’s earnings

Rising costs and regional tensions weighed on ADX-listed NMDC Energy’s 2Q bottom line, leading to a 53% y-o-y drop in net income attributable to shareholders to AED 170 mn, according to its earnings statement (pdf) and a press release (pdf). While contract revenues for the period logged a 2% uptick to AED 4.5 bn, the growth was dampened by operational challenges, cost overruns, and disruption due to regional tensions, the firm said.

It is a similar story for 1H: Net income during 1H 2026 fell 57% y-o-y to nearly AED 250 mn, despite a 16% increase in revenue to over AED 9.4 bn. Net income margins contracted sharply to 2.6% during the six-month period from 7.1% a year earlier.

Looking ahead: The contractor enters 2H with strong revenue visibility, backed by an unexecuted project backlog of AED 55.2 bn as of 30 June.

NCTH 2Q income falls despite higher revenue

National Corporation for Tourism and Hotels (NCTH) reported a 27.2% y-o-y decline in net income to AED 41.8 mn in 2Q 2026, even as revenue rose 2.4% to AED 508.9 mn, according to its financials (pdf).

The 1H picture: Net income for the first six months of 2026 dropped 41.9% y-o-y to AED 138.3 mn on revenue of AED 1.1 bn, up 5.6% from a year earlier.

What's behind it? Direct operating expenses climbed 12.2% y-o-y to AED 723.8 mn during the first half, while EBITDA declined to AED 238.3 mn from AED 362.4 mn a year earlier, according to its management discussion and analysis report (pdf). NCTH said the comparison was skewed by a one-off AED 97 mn gain on a bargain purchase booked in 1H 2025 following its reverse acquisition of Alpha Dhabi Holding’s hospitality assets. Excluding that gain, earnings were pressured mainly by higher operating costs.

6

ALSO ON OUR RADAR

Pemo is closer to expanding its offering + DTC links up to du’s cloud

Pemo is one step closer to expanding its offering: UAE-based corporate spend management platform Pemo has received in-principle approval from the Central Bank of the UAE (CBUAE) for a Stored Value Facilities license, according to a press release. Pemo is looking to roll out a digital wallet service once fully licensed, targeting its SME clients.

ICYMI- The Dubai-based fintech firm has previously received USD 7 mn in investment from the likes of UK fintech firm Augmentum Fintech, as well as Abu Dhabi-based Shorooq Partners. At the time, it was eyeing expansion into high-growth markets in the region.

DTC links core systems to du’s cloud

du has activated its National Hypercloud platform for Dubai Taxi Company (DTC), completing the UAE’s first migration of a transport operator's core systems to a sovereign national cloud, it said in a press release.

A blueprint for government entities: The project comes on the back of an MoU inked between DTC and du late last year and is set to be rolled out to more government entities and other firms, du CEO Fahad Al Hassawi told state news agency Wam. The move comes as the UAE looks to localize critical digital infrastructure and cut reliance on overseas cloud providers.

7

PLANET FINANCE

Chipmaker slump hits global markets as investors reassess AI outlook

Global stock markets suffer a chipmaker slump as investors question the outlook for AI spending. Chipmakers, which drove markets higher in 1H on expectations of huge AI investment, are now coming under pressure as investors reassess their deployments, the Financial Times reports.

What’s happening? “Worries around funding uncertainties, capex increases and Big Tech cashflow have taken center stage,” Barclays' head of US equity strategy Venu Krishna said.

The sell-off fever spread across the sector: US chip stocks suffered losses over the past couple of days. Memory products firm Sandisk, which dropped 11% on Monday, fell by the same amount yesterday, pushing the stock down more than 40% over the past month. Western Digital, Micron, Advanced Micro Devices, and Intel each lost at least 4% yesterday, while Europe’s ASML declined by 3%.

South Korean chipmakers remained at the center of the rout. The Kospi dropped more than 10% on Tuesday, with SK Hynix falling 14.7% and Samsung Electronics dropping 13.4%, leaving both stocks down more than a third in July. Oversupply concerns dropped the investment appetite for both firms after they revealed plans to each develop two new semiconductor plants to double DRAM production capacity over the next five years.

Other Asian markets were also affected by the trend: Japan’s Nikkei 225 fell 4% yesterday, with memory-chip maker Kioxia plunging more than 18%, halving its share price in July. Meanwhile, China’s memory-chip maker CXMT dropped more than 4%, following a 466% jump in its shares on Monday after raising USD 8.5 bn in its Shanghai listing.

Rising costs and liquidity constraints are fueling concerns: Investors are anticipating Big Tech 2Q earnings to see if they can keep funding their AI buildout, focusing on whether higher capital spending and borrowing levels can be sustained. Alphabet’s shares fell 7% in a single session last week after the company reported a sharp rise in outflows tied to AI infrastructure spending.

China’s AI rise is also affecting investor sentiment: The growing competition from lower-cost Chinese rivals and concerns over Western AI spending drove the sell-off in Asian technology stocks, Deutsche Bank analyst Jim Reid said. Those concerns intensified after Chinese AI startup Moonshot launched a large language model last week with capabilities close to those of leading US developers such as Anthropic.

Despite the rising caution, demand is set to remain strong. Concerns over rising capital spending and funding needs are driving the sell-off, but demand for AI remains robust, based on the earnings reported so far, State Street's head of Equity Research Marija Veitmane said. Investors are being more cautious, however, regarding the end of the AI boom, with rising credit default swap prices tied to big names serving as evidence of growing concerns, GAM Group CEO Albert Saporta said.

MARKETS THIS MORNING-

Asia-Pacific markets are mostly down in early trading as the global tech selloff continues. South Korea’s Kospi, Japan’s Nikkei, and the Shanghai Composite are all down, while the Hang Seng is trading higher.

ADX

9,835

-0.1% (YTD: -1.6%)

DFM

5,790

-0.9% (YTD: -4.3%)

Nasdaq Dubai UAE20

4,689

-0.4% (YTD: -4.1%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

3.5% o/n

4.3% 1 yr

TASI

10,678

-0.9% (YTD: +1.8%)

EGX30

53,730

+0.2% (YTD: +28.4%)

S&P 500

7,429

+0.2% (YTD: +8.5%)

FTSE 100

10,871

+0.8% (YTD: +9.5%)

Euro Stoxx 50

6,290

+0.1% (YTD: +8.5%)

Brent crude

USD 84.09

+4.8%

Natural gas (Nymex)

USD 2.63

-1.2%

Gold

USD 4,083

-0.4%

BTC

USD 63,861

+0.1% (YTD: -27.1%)

Chimera JP Morgan UAE Bond UCITS ETF

AED 3.69

+1.1% (YTD: -1.6%)

S&P MENA Bond & Sukuk

150.38

+0.1% (YTD: -1.0%)

VIX (Volatility Index)

18.21

-2.5% (YTD: +21.8%)

THE CLOSING BELL-

The ADX fell 0.1% yesterday on turnover of AED 730.9 mn. The index is down 1.6% YTD.

In the green: Orascom Construction (+4.7%), Phoenix Group (+3.0%), and United Arab Bank (+2.9%).

In the red: E7 Group Warrants (-4.7%), Invest Bank (-3.4%), and Apex Investment (-3.1%).

Over on the DFM, the index fell 0.9% on turnover of AED 415.1 mn. Meanwhile, Nasdaq Dubai was down 0.4%.


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.

17-19 September (Thursday-Saturday): International Real Estate & Investment Show (IREIS), Adnec, Abu Dhabi.

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.

14-15 October (Wednesday-Thursday): Sharjah Investment Forum, Jawaher Reception and Convention Center, Sharjah.

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.

18-19 November (Wednesday-Thursday): Touchdown Middle East 2026, Conrad Abu Dhabi Etihad Towers, Abu Dhabi.

25-26 November (Saturday-Sunday): Doers Summit, Dubai Silicon Oasis, 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:

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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