Good morning, everyone. We have a logistics-heavy issue for you today, reporting on the likes of Adnoc, DAE, DP World, and Fertiglobe.
But first, our big story today is news that UAE sovereigns and corporates have been issuing USD and EUR-denominated debt at a record pace this year. Some M&A developments have crossed the finishing line, namely for DAE and Dubai Investments, and it’s also a busy day on the earnings front.
And the Hormuz workarounds just keep coming, and this time it’s Fertiglobe’s turn as it eyes leaning further into truck and rail routes to keep fertilizer exports moving if disruption in the strait continues.
RATE WATCH- The Central Bank of the UAE held the Overnight Deposit Facility rate at 3.65%, in line with the US Federal Reserve’s move, according to a statement (pdf). The interest rate applicable to borrowing short-term liquidity was also kept steady at 50 basis points above the base rate.
WEATHER- The mercury will hit 45°C in Dubai today, with an overnight low of 33°C, and 46°C in Abu Dhabi before cooling to an overnight low of 33°C, according to our favorite weather app.
Moving in the dark
Adnoc’s dark-mode LNG shuttle is back: An empty LNG carrier owned by Adnoc L&S appeared inside the Arabian Gulf on Wednesday after crossing the Strait of Hormuz with its AIS switched off, Bloomberg reports. Satellite imagery shows a tanker berthed at Adnoc Gas’ Das Island export terminal earlier this week, without broadcasting its position near the facility.
One tanker isn’t the whole story: Three other LNG carriers owned by or on long-term charter to Adnoc also stopped transmitting on Friday while waiting off the UAE’s east coast, potentially before entering Hormuz empty to load at Das Island.
BACKGROUND- Das Island is currently the UAE’s only LNG export plant — with a capacity of 6 mtpa. Earlier constraints had pushed output at the facility to very low levels, while restricted LNG and liquids exports helped drive a 20% y-o-y drop in Adnoc Gas’ export and traded-liquids volumes in 1Q.

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Spot crude spree
Adnoc keeps clearing spot crude at a premium: Adnoc sold at least 12 mn barrels of spot crude in its latest tender, Reuters reports, citing trade sources. The awards bring Adnoc’s sales across seven tenders issued since the beginning of June to more than 86 mn barrels, roughly a full month of the UAE’s pre-war crude exports. The country shipped 103 mn barrels in January and 95 mn barrels in February before the war blocked Hormuz.
Asian buyers pile in: China’s Unipec, PetroChina, and Sinochem each bought 2 mn bbl of Upper Zakum for September and October delivery at premiums of around USD 3-4/bbl over September’s Dubai benchmark. Indian Oil and Japan’s Idemitsu Kosan were also among the buyers. It remains unclear whether any Murban cargoes were awarded, with Adnoc reportedly seeking a premium of around USD 10 per barrel for the grade.
The Dubai shift is already taking shape: Adnoc first floated moving Upper Zakum, Das, and Umm Lulu away from Murban-linked pricing earlier this month, then used Dubai-linked prices for August cargoes collected by term buyers at Fujairah. This tender extends that migration to another round of spot sales, putting more offshore crude on a Dubai basis before any formal overhaul of Adnoc’s official pricing system.
Fertiglobe eyes rerouting away from Hormuz
Fertiglobe is diversifying UAE export routes to maintain fertilizer shipments during a prolonged Hormuz closure, CEO Ahmed El Hoshy told Bloomberg. “We still expect to export through Hormuz, but we want flexibility to continue producing and moving products if it is closed,” El Hoshy said.
REMEMBER- El Hoshy previously said that the company continued operations by trucking fertilizer cargoes overland to ports outside Hormuz before loading into ships — a workaround involving “double handling” and higher transport costs.
Rail could be next: Fertiglobe is working with Etihad Rail as it explores using trains alongside trucks and alternative ports to strengthen its export network, El Hoshy said. The talks remain at the exploratory stage, with no MoU or binding agreement disclosed. The fertilizer producer can export all of its Egyptian production through the Mediterranean, avoiding both Hormuz and the Red Sea, while its Algerian shipments remain unaffected.
Keeping the barrels — or rather, the bags — moving: The company exported volumes equivalent to 56% of its UAE production during 2Q despite the logistical constraints. It avoided disruption-related shutdowns by expanding storage across several locations, with production interruptions limited to scheduled and critical maintenance.
Dragon Oil joins race for BP’s Egypt gas assets
Dubai’s Dragon Oil is among the companies expected to submit bids this week for a stake in BP’s West Nile Delta natural gas assets in Egypt as the British energy major presses ahead with plans to streamline its portfolio and cut debt, Reuters reports.
The UAE-backed company joins private equity firm Carlyle Group, Energean, and Artemis Energy in the bidding process. Details of the offers have not been disclosed, with bids expected by the end of the week.
BP invested more than USD 35 bn in Egypt over the past six decades. Its gas production in the country fell to 518 mmcf / d last year, down around 40% from 2024 and nearly 60% from 2023. Despite the decline, the company continues to expand its upstream presence, announcing a gas and condensate discovery offshore Egypt in April and securing two new offshore exploration concessions earlier this year.
Data point
AED 228 bn — that’s the current value of Dubai’s retail sector, the Dubai Department of Economy and Tourism was quoted as saying by Al Bayan.
The big story abroad
The start-stop nature of the regional war has intensified after Iran and the US exchanged attacks in the early hours of the morning. Iran renewed its missile attacks on US forces in the Middle East before Washington responded with fresh strikes on the Islamic Republic, the US Central Command said.
Grant Thornton closed the largest accounting takeover seen in years, moving to acquire longtime rival CBIZ for USD 5 bn in an allcash transaction. The move cements Grant Thornton’s rank as the largest US audit and consulting firm, excluding the Big Four, marking a culmination of an acquisition streak kicked off two years ago.
Standard Chartered has unveiled a USD 1 bn share buyback plan, coinciding with imminent cost cuts, which will include scaling down back-office jobs and intensifying AI use. The move is backed by higher 2Q income, with pre-tax earnings rising 2% y-o-y to USD 2.3 bn — exceeding analysts’ expectations.
Meanwhile, in the banking world: Goldman Sachs is mulling a potential USD 5.4 bn debt offering — split between secured bonds and a term loan — to help raise funds for a Microsoft-tied data center backed by Blackstone. The planned bond issuance would have a five-year maturity, whereas the loan would be due in seven years.
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