THIS MORNING: Mubadala eyes investment in Italian gas turbine maker + a settlement to the Paramount antitrust lawsuit could be on the way

Good morning, everyone. We’re shifting our focus today to Egypt, where Adnoc Distribution could be making another sizable retail business play soon, studying a roughly USD 1 bn investment to nearly triple its Egyptian retail footprint, in the latest leg of its downstream expansion. It’s also eyeing a separate USD 50 mn push into aircraft refueling at two Egyptian airports.

We’re also keeping an eye on the UAE’s ongoing efforts to hedge its logistics network amid ongoing Hormuz disruptions, with Etihad Rail Freight and AD Ports launching a direct rail service between Abu Dhabi and Fujairah, and ongoing talks with India’s state-run Engineers India for consultancy and engineering mandates for alternative oil infrastructure.

Meanwhile, there’s more collaboration between Abu Dhabi and Seoul, this time across AI, gaming, and digital finance, as the two countries build on an existing pipeline of USD 65 bn worth of agreements from earlier in the year.

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.

London’s loss, Dubai’s gain

The exodus of UK-based wealth flocking to our neck of the woods is showing no signs of slowing down yet. Investment firm Hasma Capital Advisors, which manages a USD multi-bn portfolio for Saudi’s Juffali family office, is moving most of its staff from London to Dubai, Bloomberg reports, citing people familiar with the matter. It established a Dubai legal entity in 2025 — with CEO Mamoun Askari now listed as a UAE resident, while finance head Adrian Clear relocated to Dubai in August. The London office could be closed by mid-next year, the sources said.

No cold feet: Dubai’s appeal to family offices is holding even despite heightened regional geopolitical uncertainty. Hasma employees had sought relocation to Dubai last year, with the plans reportedly continuing even after the outbreak of the war. We have more on Dubai’s — and other regional financial centers’ — resilience in the aftermath of the conflict in this morning’s Planet Finance, below.

IN CONTEXT- The relocation comes as London’s private wealth sector is facing higher taxes, which has led to an exodus of HNWIs. The UAE has been cited as one of the places likely to capture a large portion of the outflow.

UAE, KSA already shopping for contractors for Hormuz workaround

The UAE and KSA could lean on India’s EIL for consultancy work for Hormuz workarounds: State-run Engineers India Ltd (EIL) is in early-stage talks with Saudi Arabia and the UAE for consultancy and engineering mandates as the two countries look to cut their reliance on the Strait of Hormuz. The Gulf producers are planning about USD 1 bn in pipelines, storage facilities, and export terminals to build out alternative routes for crude and petroleum products — and EIL wants a piece of the design and feasibility work that comes with it, The Hindu reports, citing chairman and managing director Atul Gupta.

Fujairah has already become the UAE’s primary oil export route, accounting for around 66% of the UAE’s total exports. Emirati players are also looking to build out their east coast presence as the UAE aims for zero reliance on the Strait of Hormuz amid the current disruption. DP World is building a new multipurpose port and two new terminals along Fujairah’s coastline, and Adnoc is accelerating construction of its West-East pipeline.

Where we’re at: The UAE is planning additional underground oil storage facilities at Fujairah, potentially opening work across engineering design, feasibility studies, project management, and construction management, Gupta says.

Paramount edges closer to settling its Warner Bros. legal fight

Paramount is working on reaching a settlement for the US antitrust lawsuit threatening its USD 110 bn Warner Bros. Discovery takeover, sources told Reuters. As it stands, California and 11 other states are seeking to block the merger over competition concerns, putting an agreement backed by nearly USD 24 bn in commitments from Abu Dhabi’s L’imad, Saudi Arabia’s Public Investment Fund, and the Qatar Investment Authority in limbo. The Gulf funds are set to hold minority, non-voting stakes in the combined company.

What could get the agreement over the line? The parties are discussing independent monitoring of CNN’s content and commitments on theatrical releases. Paramount has pledged to release 30 films annually, but one California attorney said structural remedies, such as asset sales, are preferable to promises about future conduct. Settlement talks also reportedly include the possibility of imposing a USD 30 mn fee on the company per film short of its pledge, Bloomberg reports, citing two sources familiar with the negotiations.

The clock is getting expensive: Paramount faces USD 7 mn in daily delay payments after 30 September. We reported in July that the lawsuit had pushed the takeover’s closing deadline to June 2027. The UK has since cleared the takeover after receiving assurances, but a settlement with the US states would not automatically resolve a separate challenge brought by the Writers Guild of America.

Mubadala looks beyond the chips

Mubadala is leading talks to invest in Italian gas turbine maker Ansaldo Energia, as AI-driven electricity demand boosts interest in power-generation equipment, Bloomberg reports, citing Italian newspaper Corriere della Sera. The Abu Dhabi sovereign wealth fund is the frontrunner among several Gulf investors in discussions with CDP Equity, which owns 99.6% of Ansaldo and would retain majority control. The potential investment’s size and structure remain undecided.

Ansaldo isn’t new to Abu Dhabi: The company has operated a turbine-blade repair facility in the emirate for around 30 years, employing 250 people. Its orders reached EUR 2.3 bn (USD 2.6 bn) last year.

The bigger picture: The potential investment fits the UAE’s USD 40 bn investment push in Italy and a broader wager on the power behind AI, as rising electricity demand pushes gas turbine backlogs to as much as seven years. Khazna has teamed up with Eni on a 500 MW Italian AI campus powered by a gas turbine plant, while Adia has already backed German gas-engine maker Innio through its USD 2.4 bn IPO.

Accor checks into Dubai Pearl

Global hospitality group Accor is closing in on a transaction at the long-delayed Dubai Pearl hotel, CEO of Accor’s economy, midscale, and luxury brands across the Middle East, Africa, and Asia Pacific Duncan O’Rourke told AGBI. An agreement could be finalized as soon as year-end, in a sign of renewed momentum at the site, the land for which is owned by Dubai Holding.

The timeline so far: Development of the Dubai Pearl dates back to 2002 and several different firms have taken the reins of the project since then. Around AED 2.5 bn of accumulated losses are estimated to be currently attached to the project.

Dubai’s hotel market is set for a rebound in 4Q this year, and that’s likely to come with a heavy wave of luxury supply, after the segment struggled during the tourism slowdown earlier this year. Dubai has rolled out AED 2.5 bn in support over the past months to help the hospitality sector and boost demand from customers.

SIB eyes a sukuk encore

Sharjah Islamic Bank (SIB) is lining up a potential benchmark-sized USD sukuk as UAE lenders return to international debt markets, Zawya reports. The ADX-listed lender has scheduled investor meetings ahead of a possible Regulation S offering, subject to market conditions. The exact size, pricing, and tenor have yet to be announced, though a benchmark-sized issuance usually indicates a value of at least USD 500 mn.

On the issuance: SIB has appointed our friends at Mashreq Bank, Ajman Bank, Al Rayan Bank, Arqaam Capital, Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Kuwait International Bank, QNB Capital, Standard Chartered, and Warba Bank as joint lead managers and bookrunners.

The last outing set a high bar: SIB’s November 2025 sukuk raised USD 500 mn after drawing more than USD 1.35 bn in orders. The five-year paper priced at a 4.60% yield, or 95 bps over US Treasuries.

REMEMBER- The debt window is open but investors are pickier: FAB and Mashreq both priced USD 500 mn bonds last week, while DP World issued a dual-tranche offering, with spreads tightening by 25 bps and 30 bps from initial guidance. Order books have nevertheless been thinner than in previous rounds amid regional uncertainty, putting investor appetite and pricing in focus for SIB’s potential sale.

PSA

WEATHER- Temperatures today will be staying high at 42°C in Dubai with an overnight low of 31°C, and 42°C in Abu Dhabi before cooling to an overnight low of 29°C, according to our favorite weather app.

The big story abroad

Major US banks project that the federal government will issue as much as USD 1 tn in short-term Treasury bills in the coming year, amid efforts by Treasury Secretary Scott Bessent to limit surges in long-term rates. This reliance on short-dated debt may expose Washington to increased financial risk if interest rates continue to climb, with borrowing costs reaching their highest level since 2007.

On the geopolitical front: The Trump administration is seeking to slap the International Criminal Court (ICC) with sweeping sanctions, aiming to prohibit most transactions with the institution after a grace period of six to seven months. Washington’s retaliatory action against the ICC — prompted by its arrest warrant for Israeli Prime Minister Benjamin Netanyahu — could be finalized during or shortly after this week’s UN General Assembly.

Takeover of Aussie developer falls short: Sydney-based property group Ingenia has turned down a USD 1.5 bn takeover bid by private equity giant Warburg Pincus on account of the proposal undervaluing the firm. The sweetened bid — at AUD 5.05 per share — followed an earlier proposal that valued the firm at AUD 4.75 per share.

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