THIS MORNING: Starlink secures space services license in UAE + Taco Bell is making its return to the Emirates

Good morning, everyone. It’s officially back-to-school season, so expect traffic to be back in full force. We suggest taking to the roads as early as possible today if you’re looking to get to your office on time.

This morning, we take a look at the rise of cybersecurity costs for UAE businesses, with data breach costs at some local companies regularly topping the USD 8 mn regional average, and the total economic cost potentially reaching as high as USD 2.5 bn a year.

Meanwhile, Mubadala Capital, is taking a majority stake in US freight broker Arrive Logistics, one of North America's largest truckload brokerages, and Starlink has secured a 10-year general space services license to operate a public satellite communications network in the UAE.

Plus: Taco Bell is making a return to the UAE, courtesy of Americana Restaurants, and the UAE and Lebanon are looking to deepen private sector ties through a new joint business council.

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Economic Outcast’s first target

US officials have proposed cutting Banque Misr’s UAE branches off from correspondent banking access to US financial institutions, with Treasury Department’s Financial Crimes Enforcement Network (FinCEN) alleging that the branch processed around USD 1.8 bn between January 2024 and June 2026 for 103 companies that it claims may be linked to Iranian shadow-banking networks. The move, which has not yet been finalized, would prevent US financial institutions from opening or maintaining correspondent accounts for Banque Misr’s UAE outpost and require them to guard against processing transactions involving the branch.

The proposed sanction is limited to Banque Misr’s UAE branch and its USD transactions with correspondent banks, according to a statement from the Central Bank of Egypt. The central bank and Foreign Ministry are in contact with the US authorities over the measures, which the CBE says do not extend to Banque Misr’s operations in Egypt, its other overseas branches, or any other bank operating in Egypt. FinCEN will accept public comments for 30 days after the proposal’s publication before any final rule is issued.

The Central Bank of the UAE also said it will carry out an investigation of Banque Misr’s UAE branches, including a review of the period covered by US authorities’ allegations and of transactions involving the companies they named, according to a statement carried by state news agency Wam. The regulator said it is also assessing its options should FinCEN ultimately impose the proposed special measure, taking into account the bank’s obligations to its UAE customers.

IN CONTEXT- Banque Misr UAE is the first publicly announced financial-sector target of US Treasury Secretary Scott Bessent’s “economic D-Day” campaign against Tehran, Operation Economic Outcast — a global drive to sever Iran’s financial connections by targeting the banks, facilitators, and networks Washington says help the regime evade sanctions and generate revenue.

Starlink bags 10-year UAE license

The UAE has granted Elon Musk-owned Starlink a 10-year General Space Services License, permitting the company to establish and operate a public satellite communications network and provide broadband internet services in the country, as per a Telecommunications and Digital Government Regulatory Authority press release.

The details: The license spans individuals, businesses, and government entities, as well as satellite connectivity for the maritime and aviation sectors — adding a space-based layer to the UAE’s digital infrastructure, as the Emirates looks to build out its space economy and double revenues.

Why it matters: Rather than looking to compete with the UAE’s existing consumer telecom players, Starlink’s play likely lies more on industrial B2B applications like offshore energy sites, maritime transport, remote logistics hubs, and high-margin corporate failover redundancy.

Taco Bell is coming back to the UAE

F&B giant Americana Restaurants has inked an exclusive development pact with Taco Bell to bring the US fast-food chain to the UAE, with plans for a phased expansion into other GCC markets, as per a press release (pdf).

A new, young flavor for Americana: This is Americana’s entry into the Mexican-inspired quick-service restaurant category — extending its long-running relationship with Taco Bell owner Yum! Brands, with Americana already operating Yum’s KFC and Pizza Hut restaurants across the region.

Second time’s a charm? Taco Bell exited the UAE in 2012 after failing to build a sustainable footprint. However, in the press release, Americana Chairman Mohamed Alabbar pointed to demand among younger consumers for new and more adventurous food brands.

Hyundai dealership could change hands in the UAE

Dubai-based automotive conglomerate Al Futtaim Group is in talks to acquire the Hyundai dealership business from Al Majid Motors, although discussions are yet to reach a final stage and the two sides are still working through the terms, Al Bayan reports.

Why it matters: Al Futtaim already distributes Toyota, Lexus, and Honda in the UAE. Absorbing Hyundai — a key rival to Toyota in volume of passenger cars, taxi fleets, and commercial transport — would place two of the largest mass-market auto brands in the UAE under a single corporate roof.

UAE-Lebanon business ties get a formal channel

The UAE and Lebanon are setting up a joint business council to deepen private sector trade and investment ties, after the Federation of UAE Chambers signed an MoU with its Lebanese counterpart at a business forum in Beirut, state news agency Wam reports. The council will help companies identify investment prospects, ease market entry, and develop joint ventures. Four other economic MoUs were also signed at the forum, though details were not disclosed.

REMEMBER- Not everyone is leaning back in: UAE-based Al Habtoor Group has been scaling back its Lebanon exposure, scrapping planned investments, and taking the country to an international arbitration tribunal over USD 1.7 bn in alleged losses tied to its existing investments and inaccessible bank deposits.

PSA

WEATHER- The mercury will hit 42°C in Dubai with a low of 32°C, while Abu Dhabi will see highs of 44°C before dropping to lows of 31°C, according to our favorite weather app

The big story abroad

In the first US strike on Iran in over a month, US forces targeted two Iranian rocket launchers on Larak Island in the Strait of Hormuz. US officials called the action a preemptive strike, reporting that Iranian forces were preparing to deploy sea mines into the waterway. Iran responded by launching missiles toward Jordan, though they were reportedly intercepted.

In the M&A scene: Ins. broker and consulting firm Aon is closing in on an agreement to acquire KKR-owned ins. broker USI for around USD 17 bn, expanding Aon's ability to serve midsize businesses. The move — the latest in a spate of big exits for KKR — is projected to be accretive to earnings per share starting in 2028.

Shein’s value shrinks pre-IPO: China’s fast fashion giant Shein is on track to go public tomorrow at a valuation amounting roughly one quarter of its 2022 value of USD 100 bn. The decline coincides with ebbing investor enthusiasm for Chinese consumer IPOs, as high-profile AI debuts stole the market's attention over the past year.

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