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.

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