THIS MORNING: Lulu Island is in for a revamp + Finnair is the latest airline to cancel flights to Dubai for the year

Good morning, friends. There's a split-screen quality to today's issue. On one side: UAE bond spreads that are still telling a more cautious story than the headlines about the region's stability would suggest, with Abu Dhabi corporate paper pricing wider over Treasuries than it was even in March. On the other: capital keeps finding its way into very specific, very selective wagers. The Sawiris family — through a Houston investment firm — just anchored a USD 13 mn investment in Swvl. Adnoc L&S keeps adding ships to its fleet. And Eagle Hills is about to turn a 1990s breakwater into another Abu Dhabi real estate showpiece.

The throughline, if there is one, is discernment. Masdar walked away from a green hydrogen project (also a story in our news well this morning), not because the thesis is dead, but likely because it ran the numbers and they don’t make sense at present.

The same instinct seems to be steering capital elsewhere — toward tangible assets with clear utility (vessels, islands, water infrastructure) and growth stories with credible anchors.

Destination Sahel Issue IV, the final issue in the series, drops this week, and we’re exploring how Egypt’s North Coast could become more than a summer story.

Living in Sahel year-round is moving from a seasonal idea to a serious question; an industrial push is reshaping the Coast’s economic base, and Egyptian homebuyers are weighing Sahel against Dubai, London, and other Mediterranean markets for where to put their money.

In this issue, we get into what it would take for Sahel to work beyond the summer, how industry fits into the Coast’s next chapter, and the numbers behind the Sahel-vs-everywhere debate.

Click here to subscribe to the Egypt edition, coming straight to your inbox today.

Eagle Hills takes on Abu Dhabi’s Lulu Island revamp

One of Abu Dhabi’s largely untouched islands is finally getting a makeover: Eagle Hills Properties — Emaar Properties founder Mohamed Alabbar’s other private real estate venture — has confirmed that it is leading the development of Lulu Island, a man-made island roughly 500 meters off the Corniche, The National reports. The island was initially built in the 1990s as a breakwater and is now only accessible by boat.

Background: Lulu Island isn't the only underused island in Abu Dhabi's development pipeline. We reported in May that Abu Dhabi developer Aldar is planning to revamp Fahid Island as part of a roughly 20 mn sqm development pipeline across the capital. Together, the two projects form a part of long-term urban expansion plans that include opening up land that has largely sat underdeveloped for decades.

Solar meets desalination

UAE-based renewable energy developer Amea Power is in talks with Egypt’s Housing Ministry on potential investments in solar-powered water infrastructure and desalination plants, according to a ministry statement. The talks focused on using solar plants to power drinking-water and wastewater-treatment facilities, as well as road infrastructure in new cities. No specific projects, investment tickets, or timelines were announced.

There’s a localization angle, too: The talks also covered locally manufacturing equipment and components for desalination plants, part of a broader government push for local content.

REMEMBER- Egypt's government was in advanced talks with Amea Power to develop three seawater desalination facilities with a combined capacity of up to 300k cbm per day. Two would sit on the Mediterranean coast and one on the Red Sea, with Amea expected to fund, design, build, and operate them.

Why it matters: This is another data point in Amea Power's build-out across the region's water-energy nexus, adding Egypt to a footprint that already spans solar, wind, and green hydrogen plays. Desalination and wastewater treatment are power-hungry, so bundling water infrastructure with dedicated solar generation is increasingly how developers like Amea structure these projects — the water contract comes with a built-in power project attached, widening the addressable prospect beyond generation alone.

Know your rights (issues)

Abu Dhabi Islamic Bank’s (ADIB) board of directors has signed off on a proposal to raise AED 1.75 bn via a rights issue, state news agency Wam reports. The move is subject to approval from shareholders and the Central Bank of the UAE.

A breakdown: The rights issue will consist of 106.4 mn new ordinary shares at an issue price of AED 16.45 a pop, representing a reduction of around 28.8% compared to the bank’s closing share price of AED 23.10 on the ADX last Monday. Shareholders are eligible to purchase roughly one new share per 34.14 existing shares owned.

PSA

Finnair is the latest airline to cancel flights to Dubai for the year. The company suspended its Helsinki-Dubai flights for the 2026-2027 winter season, running from 25 October 2026 through 27 March 2027, citing the unstable situation in the Middle East, according to an update on its website.

It’s not alone: Air Canada and Virgin Atlantic also won’t return to Dubai until 2027, and Dubai Airports CEO Paul Griffiths has said many foreign-based airlines have struggled to secure ins. allowing them to return to the region. The extended caution suggests insurers and long-haul carriers still see regional risk as unresolved, even as Gulf schedules elsewhere edge back to normal.

WEATHER- The mercury rises to 45°C in Abu Dhabi before cooling to 32°C, while Dubai is set for a high of 43°C and a low of 34°C, according to our favorite weather app.

The EnterpriseAM Egypt Forum is back — and we’re devoting the full day to the singular set of questions on everyone’s mind: What does AI actually mean for your company, your people, your economy, your own job — and your kids’ future?

Every session on stage answers one question: “So, what do I actually do about it?”

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The big story abroad

Taking top billing today are Canada’s retaliatory tariffs on US goods, featuring levies of up to 50% on USD 20 bn worth of imports from its southern neighbor. Effective 8 September, the tariffs target steel, dairy, and agricultural equipment and match Washington’s rates on Canadian goods.

In other geopolitical news: The Kurdish-led Syrian Democratic Forces have been dissolved as their fighters integrate into the Syrian military, the group’s leader Mazloum Abdi said. With US backing, the group helped combat the Islamic State and previously controlled parts ​of the country. The move signals a key breakthrough in President Ahmed Al Sharaa’s efforts to unite Syria’s factions.

Meanwhile, in the tech world: SpaceX aims to build a USD 100 bn spaceport in Louisiana, spanning 125k acres and marking the company’s second private launch site. SpaceX plans to begin building the base next year, targeting its initial rocket launches for 2029.

Speaking of tech, Anthropic is expected to inform investors that its total addressable market exceeds USD 30 tn, surpassing the USD 28.5 tn projection set by Elon Musk’s rocketmaker. The startup’s figure accounts for the full scope of its work that could be accomplished by AI models, and calculates the gains available if a product or service achieves 100% market share.

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