THIS MORNING: L’imad opens an Azerbaijan investment lane + Khazna teams up with Siemens for AI infrastructure

Good morning, everyone. We’re looking at the burgeoning proptech sector in the UAE today. The sector could reach AED 53 bn in economic value, but adoption across its offerings is so far outpacing any agreed ways to measure whether they’re actually saving money.

On the ground, Dubai's retail and warehousing property market is turning more selective: new retail and warehouse leases both fell sharply in 1H, even as renewals and rents climbed — landlords with good stock keep their pricing power, but appetite to relocate or expand has cooled.

Elsewhere, XRG has acquired a stake in the Southern Gas Corridor, and Masdar is boosting its presence in Serbia's wind corridor.

What we’re watching for: AD Ports’ minority buyout hit decision day yesterday, with L’imad’s tender offer for the remaining 24.58% of the group closing and results set to come out sometime today. We’re also on the lookout for the US Federal Reserve’s rate decision later today, and the rate moves that will follow here and in the rest of the Gulf.

The EnterpriseAM Egypt Forum is less than a month away — and here's some of what’s shaping up on the agenda:

• Where AI fits on the list of topics keeping CEOs awake at night
• What AI means for your company, your team, your job, and your family
• What's the AI opportunity for Egypt
• Building the AI infrastructure

And more panels to come.

Join us on 5 October in Cairo. Attendance is by invitation only, and seats are filling up quickly.

Request your invitation here.

Dubai Etihad Rail station opens soon

Dubai’s first Etihad Rail passenger station is set to open at Al Yalayis, next to Jumeirah Golf Estates, on 30 September, adding a new option for commuters traveling between Dubai and Abu Dhabi. The wider service initially kicked off at the end of June with travel between Mohamed bin Zayed City Passenger Train Station in Abu Dhabi and Fujairah. A further seven stations will eventually be added to the first 11 that were planned.

Getting the last mile right: The journey to Abu Dhabi’s Mohamed bin Zayed City Station will take 57 minutes — a welcome alternative to a drive that can stretch to significantly longer during peak times. However, much still depends on the accessibility of stations themselves.

PLUS- Dubai is set to get a second Etihad Rail passenger station in Meydan, integrated with the planned Dubai Metro Gold Line, a Dubai Roads and Transport Authority official told The National.

REMEMBER- The metro’s Gold Line is due to open in 2032 with the prequalification deadline for contractors pushed to 9 October, while the Blue Line is scheduled for a 2029 debut.

L’imad opens an Azerbaijan investment lane

Abu Dhabi sovereign investor L’imad is partnering with Azerbaijan Investment Holding to pursue joint investments across Azerbaijan and Central Asia, targeting industrials, critical minerals and supply chains, transport infrastructure, energy, and digital connectivity, according to an Abu Dhabi Media Office statement. No investment size or timeline was disclosed.

This looks like a new deployment lane for the young sovereign fund: L’imad was expanded earlier this year when Abu Dhabi folded ADQ into the platform, bringing a large portfolio of domestic and overseas assets under one roof. Since then, much of its activity has focused on tightening control at home, including moves to take Taqa and AD Ports fully in-house.

Azerbaijan already fits the portfolio: AD Ports signed an MoU with Azerbaijan’s Azcon Holding in May to explore potential joint investments in ports, shipping, and digital trade hubs along the Middle Corridor. The UAE-Azerbaijan CEPA also entered into force in April, while non-oil trade more than doubled from USD 980 mn in 2022 to USD 2.16 bn in 2025. L’imad says it sees Azerbaijan as a gateway into Central Asia.

Yas Island gets another AED 12 bn growth spurt

Leisure and entertainment developer Miral is committing over AED 12 bn over the next five years to expand and upgrade Yas Island, adding new attractions, rides, experiences, and hotel capacity as Abu Dhabi pushes to deepen its global tourism footprint, according to an Abu Dhabi Media Office statement.

The investment is separate from the previously announced Disney project and will fund a pipeline spanning existing theme park and attraction expansions, alongside new experiences tailored to shifting visitor demand.

IN CONTEXT- Miral has also recently announced plans to add three new Harry Potter-themed lands to Yas Island across c. 63k sqm, with construction targeted for completion in 2029. They join two previously announced DC attractions in an expansion that will grow Warner Bros. World’s footprint by more than 50%. Yas is also home to SeaWorld Abu Dhabi, Yas Waterworld, Topgolf Yas Island, and Ferrari World.

Khazna teams up with Siemens for AI infrastructure

Khazna and Siemens signed an MoU in Munich to build out the technology stack for AI data centers — one of the more substantive partnerships to come out of this week’s German-Emirati Business Forum, part of President Sheikh Mohamed bin Zayed’s state visit to Germany, according to a press release (pdf). The agreement pairs Khazna, the UAE’s largest data center operator, with Siemens’ electrification, automation, and digitalization expertise across four tracks: AI-ready infrastructure strategy, digital twin technology, next-generation power architecture, and Emirati engineering talent development.

The digital twin work is the most technically ambitious piece. The two will draw on Siemens’ expertise spanning simulation, design validation, system integration, commissioning, and operational optimization — building virtual models that let Khazna test and refine facility design. On the power side, they’ll keep developing 800V DC architecture, the power-delivery standard the industry is shifting toward to handle AI chips’ electricity draw more efficiently than legacy AC systems. Siemens will also sponsor internships in Germany for nominated Emirati engineers.

What’s next: The partnership will also explore applying Siemens technology across Khazna’s international footprint — which already spans Dammam and a 500 MW site in Italy with Eni — moving from technical dialogue toward specific projects.

MEANWHILE- The Mohamed bin Zayed Water Initiative signed its own Munich MoU today with the German Water Partnership on desalination, water reuse, and digital water monitoring — its second partnership of the day after one with the World Economic Forum, state news agency Wam reports.

REMEMBER- Both MoUs land after the UAE pledged to invest some EUR 40 bn in Germany, with the two countries launching an investment council to help drive project execution.

One AWS facility is still down

Access is still down at one of AWS’ three data-hosting zones in the UAE after it was damaged in the early months of the regional conflict, Reuters reports, citing a status update. Access to AWS’ cloud computing facility in Bahrain is also not back online yet.

BACKGROUND- The UAE facility was struck in March, taking out its core S3 storage services alongside others that both small and large companies had relied on to run core operations, websites, and apps. AWS has described the operating environment as “unpredictable,” with experts telling us that events have added an element of risk and uncertainty to a region hosting significant AI infrastructure.

The current situation: AWS said the damage in Bahrain was beyond what its regional services were made to withstand, while in the UAE, it still can’t access the data and resources stored in the facility but has supported clients in restarting operations elsewhere. Another update should be coming in the next few months, while Bahrain will have to wait until next year.

The final count

AD Ports’ minority buyout hits decision day: L’imad’s tender offer for the 24.58% of AD Ports Group it does not already own closed at 3pm yesterday, with the result due today unless the offer is extended by 14 days. We’ve reported when the tender opened that the sovereign investor is offering AED 6.25 a share, valuing the minority buyout at around AED 7.8 bn.

One shareholder has already headed for the exit: IHC-controlled maritime company Al Seer Marine said yesterday that it completed the sale of AD Ports shares to L’imad subsidiary ADQ at the offer price, according to an ADX disclosure (pdf). The shares have already been transferred, although Al Seer did not disclose how many it tendered or the total value of the sale.

That leaves the freefloat question: AD Ports’ 2025 annual report shows ADQ entered the year with 75.4% of the company and Al Seer held another 7.3%, with no other 5%+ shareholder disclosed. That left around 17.3% with other investors before accounting for Al Seer’s sale — but without knowing how much of its stake Al Seer tendered, the exact remaining float is still unclear.

Most of the deal risk is already out of the way: We reported last week that L’imad had cleared every substantive condition attached to the offer apart from routine regulatory notifications, with settlement due no later than 9 October.

What we’re watching today: The acceptance tally should tell us how many minority shareholders followed Al Seer through the door — and how close L’imad now is to full ownership of AD Ports. AD Ports’ published timetable has the result due today unless the tender period is extended.

Abu Dhabi-backed IPO coming?

MGX-backed chipmaker Altera has confidentially filed for an IPO, a move that a previous report said could potentially raise over USD 2 bn as early as this year, Reuters reports. The chipmaker is looking to capitalize on Wall Street’s growing hunger for AI investments, and it aims to frame its reconfigurable chips as a companion to GPUs, offering targeted support for data center networking and lightweight AI inference tasks. Altera did not specify the number of shares to be offered or the price range for the listing.

A brief on Altera: Abu Dhabi AI investment firm MGX joined private equity firm Silver Lake as a co-investor last year in its acquisition of a majority stake in Altera, formerly Intel’s programmable chip business, which dates back to 1983, according to its website.

Adnoc goes shopping for discounted Iraqi crude

Adnoc Trading has emerged as the biggest lifter of Iraqi crude in August and September, snapping up heavily discounted barrels as the Iran war reshapes regional oil flows, Reuters reports, citing people it says are familiar with the matter. Adnoc agreed to buy 32 mn barrels for August and another 40 mn for September, with discounts ranging from USD 18 to 27 a barrel, although export constraints meant it lifted less than the full August allocation.

The trade works both ways: Adnoc plans to process most of the imported Gulf crude at Ruwais, freeing more of its own barrels for sale internationally, one source said. That fits a broader wartime strategy we’ve been tracking: Adnoc has expanded its tanker fleet, leaned on Fujairah and ship-to-ship transfers, and used its east-coast pipeline to circumvent the Hormuz disruption.

IN CONTEXT- The UAE’s workaround has been getting more elaborate as the war drags on. Adnoc has chartered roughly 15 crude carriers and committed bns to new vessels, while the government is pushing toward “zero Hormuz dependency” with additional east-coast export infrastructure.

The Iraqi purchases add another lever to that strategy: buy cheaper Gulf crude for Ruwais, then push more UAE barrels into higher-value export channels. The question is how scalable that trade becomes if Iraqi export bottlenecks persist and whether Adnoc keeps using outside crude as a way to protect its own export volumes.

PSA

Emirates will begin accepting Jaywan cards starting today for flight bookings made in the UAE, adding a homegrown payment option to its digital and retail channels, state news agency Wam reports. Customers can use Jaywan cards on Emirates’ website and at Emirates Retail stores, with eligible cardholders also getting discounted fares across all cabin classes and most fare types on journeys originating from Dubai. The fare promotion covers bookings made from 16 September 2026 through 31 August 2027 for travel through 29 February 2028.

IN CONTEXT- For Emirates, the pact adds another piece to its expanding cashless payments pitch. The airline introduced Crypto.com Pay for eligible UAE residents in July, while an earlier agreement with Dubai Finance supported the emirate’s Cashless Strategy.

WEATHER- The mercury tops out at 40°C today in both Dubai and Abu Dhabi, with the two emirates seeing a low of 31**°**C, according to our favorite weather app.

The big story abroad

Global markets are bracing for an imminent Federal Reserve rate hike, as most economists surveyed by Reuters project a rate increase today, followed by at least one additional hike before April 2027. This will mark a sharp reversal from the earlier expectation of a rate pause, which crumbled once Friday's official figures revealed persistent inflation. We’ll be watching the impact of today's decision closely, given that policymakers in Egypt and the Gulf rely significantly on Federal Reserve action to guide their own monetary policy.

Prelude to a blockbuster IPO? OpenAI is courting top investors for a major capital raise that would boost the startup to a USD 1.2 tn valuation before its public debut, seeking to leverage the success of its newest AI model. These investor talks are preliminary, and the target valuation may evolve as negotiations progress over the coming months. CEO Sam Altman said last week that a listing is unlikely before next year.

On the regional war front, the US has run up a USD 38 bn bill in its six-month conflict with Iran, which is expected to balloon by USD 3 bn every month, according to data from the Congressional Budget Office. Rapidly depleted munitions drive most costs, with the budget office projecting five years to replenish stockpiles.

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