THIS MORNING: Bybit sues North Korea for USD 1.5 bn hack + Moody’s places Binghatti on downgrade review

Good morning, everyone. The UAE is proving to be a relatively safe harbor for foreign investors compared to other GCC countries, even as its tourism sector takes a beating.

Foreign investors pulled funds out of every major Gulf equity market last month, but the UAE lost just USD 26 mn, far less than KSA, Kuwait, and Qatar, suggesting investors see it as relatively stable ground amid regional turmoil. Hint: Abu Dhabi is the shield.

It’s a different story for tourism. Hotel RevPar fell 31.8% YTD across the UAE in 1H as geopolitical tensions hit the summer slowdown. RAK and Dubai were the hardest hit, but Abu Dhabi’s decline was more muted.

Our earnings for you today come from Adnoc L&S, Dubai Investments, and Tabreed, whose 1H results varied greatly. Elsewhere, Moody’s has placed Binghatti’s rating on review for a downgrade after a sharp deterioration in its liquidity position, and Bybit has filed a lawsuit against North Korea over last year’s USD 1.5 bn hack.

Destination Sahel Issue III drops this week, and we’re diving into how the North Coast is adapting to a changing market.

Developers are recalibrating as buyer behavior shifts, luxury retail is carving out a bigger piece of Sahel’s economy, and the wellness and sports scene has become a summer destination on its own.

In this issue, we get into what’s actually changing on the ground, from how developers are adjusting their pitch to where to shop and how to stay active this season.

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

Bad news for Binghatti

Moody’s Ratings has placed Dubai-based developer Binghatti Holding’s Ba3 ratings on review for downgrade, reversing the stable outlook it affirmed in March, Zawya reports.

The issue? A sharp deterioration in Binghatti’s liquidity, driven by AED 1.5 bn in freecash outflows during 1H that slashed unrestricted corporate banknotes to AED 393 mn by June, down from AED 597 mn at the end of last year. Moody’s said the weaker liquidity profile leaves the developer more exposed to slower property sales, delivery delays, weaker customer collections, and reduced access to capital markets.

The risks are particularly relevant ahead of Binghatti’s early-2027 bond maturity, Moody’s said. In March, Fitch had placed Binghatti’s debt instruments on Rating Watch Negative, with the regional conflict adding uncertainty around sales and collections.

ICYMI- Binghatti was among other Dubai-based developers that were seeing parts of their credit stack tip into distressed territory earlier this year, as spreads blew past the 1k bps threshold, signaling investor concern about repayment risk after the war inflated risk premiums for the real estate sector.

Bybit sues North Korea over 2025 hack

UAE-based crypto exchange Bybit has filed a civil lawsuit against North Korea, its intelligence agency, the Reconnaissance General Bureau (RGB), and North Korea-based state-linked hacking group Lazarus Group over the February 2025 cyberattack, it said in a statement. The lawsuit was filed in the US District Court for the District of Columbia.

REMEMBER- The attack last February saw the theft of USD 1.5 bn in tokens, in what Bybit CEO Ben Zhou had called “the worst hack in financial history.” It became a major test of the crypto industry's ability to trace and recover assets following state-linked cyberattacks, particularly when stolen funds are moved across multiple wallets and jurisdictions, which analysts previously told us can happen within seconds.

What now? Bybit has secured a preliminary injunction freezing identified stolen digital assets held or moved by unidentified individuals and entities while litigation continues. The assets identified as connected to the case won’t be able to be moved while investigations are underway. Separately, US law enforcement is also conducting its own investigation.

The state of play so far: Around USD 30.5 mn worth of assets have been frozen so far, while another USD 48.4 mn of the stolen total has since been recovered. At the time of the attack, Bybit said it had “more than enough assets” to cover losses, with clients’ funds fully backed 1:1.

PSAs

Playing music in cafes, malls, hotels, and restaurants will come at a cost: The Tourism Ministry has introduced a new music licensing fee that governs the commercial use of music in restaurants, cafes, hotels, shopping malls, fitness centers, airlines, radio stations, television channels, concerts, and similar outlets, in a move to safeguard copyright protections.

The details: Two ministerial arms, the Emirates Music Rights Association and the UAE’s premier collective management organization, Music Nation, will collect the fees, with license costs depending on the nature of the music. These licenses are valid for one year and are renewable.

Who’s exempt? Educational and academic entities, along with governmental institutions, national initiatives, and any sort of personal, non-commercial use is exempt from the fees, with more exemptions to be announced later by the ministry.

Where will the money go? 10% of the collected fees will be used to support a new fund for musicians, the “Cultural Support Fund in the Field of Music,” which will be run by the authorities and aims to support new rising talent and promote cultural initiatives.

Changing your Emirates flight date to Dubai comes at no charge now: Emirates Airlines has announced unlimited no-charge date changes for customers flying to Dubai across all fares immediately. The airline has also lowered refund fees on Dubai flights to USD 50 on saver fares and special fares and USD 25 on flex fares for both the economy and business classes.

Beyond Dubai, changing flight dates to other destinations in the Emirates will also include one gratis ticket change for tickets booked from 2 April 2026, and customers can hold tickets for up to 24 hr without charge until they make up their plans.

Why this matters: The move is another bid to lure back travelers at a time when regional flight disruptions are intensifying amid continued hostilities, as airlines extend cancellations. The UAE also recently scrapped visa entry fees for Indian travelers coming to Abu Dhabi for at least three nights.

Jaywan is going global

The CBUAE domestic card scheme Jaywan is expanding globally after an MoU signed by the CBUAE’s digital payments arm Al Etihad Payments (AEP) and China’s UnionPay International, state news agency Wam reports. The agreement allows UAE Jaywan mono-badged cardholders to make payments and ATM withdrawals across more than 100 mn points of sale in 183 countries, with non-domestic transactions routed back through AEP’s national switch.

REMEMBER- The move builds on the existing Jaywan-UnionPay co-badged card framework launched last year by local financial institutions. It came after the CBUAE had executed its first cross-border transaction using the digital AED with China after linking their financial infrastructures.

IN CONTEXT- The central bank previously said that every licensed bank and financial institution in the country will start using Jaywan, with some financial players already integrating it into their banking infrastructure.

Dubai confirms public holiday

Dubai’s government confirmed that Friday, 28 August, will be a public holiday to mark the Prophet Muhammad’s birthday, state news agency Wam reports. However, government employees working in public service facilities or shift-based roles will still be on the job. The holiday means a long three-day weekend, with employees returning to work the following Monday. The UAE already announced the holiday for public and private sector workers several days ago.

WEATHER- The mercury hits 42°C in Dubai today, and 43°C in Abu Dhabi, with a low of 34°C in the former and 32°C in the capital.

The big story abroad

As the principal players in the regional war harden their stances, Pakistan’s Defense Minister Khawaja Asif has said that the US and Iran are nearing an agreement over the Strait of Hormuz. “Things are shaping up in favor of peace,” Asif said, without elaborating. Meanwhile, US forces fired on a Panama-flagged vessel transiting the Gulf of Oman, which US Central Command said was violating the blockade on Iran.

All the worse for Panama: The turmoil in Hormuz has resulted in a 16-fold price jump for transiting the Panama Canal this month, with daily auctions averaging about USD 1 mn. A warming of surface temperatures in the Pacific Ocean — known as the El Niño-Southern Oscillation — has also contributed to steeper transit costs, as the phenomenon coincides with lower water levels.

And in the AI world: US-based VC firm Accel has raised USD 3.5 bn to back emerging AI startups across the world, which will be deployed via four dedicated funds. A USD 1.35 bn global fund will target large early-stage rounds, with the remaining capital split by region — USD 800 mn for Silicon Valley, USD 800 mn for Europe and Israel, and USD 550 mn for India.

Paramount mulls Hollywood exit as Warner Bros. merger stalls: Paramount CEO David Ellison reportedly threatened to move the company out of California to pressure the state’s attorney general, who is suing to block the Warner Bros. merger. California Attorney General Rob Bonta called the bid an attempt to blackmail regulators into not resisting the transaction, a USD 110 bn buyout backed by Gulf sovereign wealth funds.

***

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.