Good morning, wonderful people. It’s officially the final workweek before Ramadan, so savor your morning coffees before you bid them farewell for the month.

The news cycle has slowed down over the weekend, with only a handful of stories worth your attention: The UAE is set to disburse a USD 1.5 bn loan to Kenya this week; crypto exchange Bybit faced the biggest theft in the sector yet, with USD 1.5 bn in losses; and Abu Dhabi and Shanghai inked cooperation agreements. Plus: We have some analysis for you on the macro front, with economic growth forecasts from First Abu Dhabi Bank and Fitch’s BMI, and forecasts for Dubai’s real estate sector from Deloitte.

☁️WEATHER- Expect a mostly cloudy day today with a chance of light rainfall in some areas, according to our favorite weather app and the National Center of Meteorology’s forecast (pdf). Temperatures in Dubai are hitting 30°C during the day with an overnight low of 21°C, while Abu Dhabi is expected to see highs of 23°C and an overnight low of 20°C.

WATCH THIS SPACE-

#1- Crypto exchange Bybit faces biggest hack and theft for the crypto industry yet: Dubai-based cryptocurrency exchange Bybit confirmed a theft of over USD 1.5 bn in tokens following a sophisticated cyberattack, with CEO Ben Zhou calling it the “worst hack in financial history” in an X post. Hackers gained control of an ETH cold wallet, transferring over 400k ETH to an unknown address, Zhou said separately. Bybit detected the unauthorized activity during a routine transfer, linking the breach to a potential vulnerability in the Safe.global platform.

Despite the attack, withdrawals remain active, and all other wallets are secure, Zhou later confirmed, emphasizing that Bybit, valued at over USD 20 bn, has “more than enough assets” to cover the loss, with client funds fully backed 1:1 and a bridge loan available if needed. The exchange borrowed ETH to ensure smooth withdrawals and is working with blockchain forensic experts and authorities to track the stolen funds. Bybit has also implemented measures to block hackers from offloading the stolen ETH on legitimate marketplaces.

The crypto exchange is one of the world’s largest, processing more than USD 36 bn in average daily trades, with some USD 16.2 bn in assets before the hack, Bloomberg reports, citing CoinMarketCap data. This puts the stolen ETH at roughly 9% of its total assets.

#2- Emirates eyes new China flights in mid-2025: Emirates will begin daily flights to Shenzhen, China, in mid-2025 using Boeing 777 aircraft, followed by Hangzhou a few weeks later, Bloomberg reports. The airline aims to expand its network to over 140 destinations, with proposed routes to Chengdu, Kinshasa, Brazzaville, Da Nang, Helsinki, and Siem Reap under consideration. The carrier may also operate some routes using fifth freedom rights within Asia ( without starting or ending in the UAE).

REMEMBER- The UAE and China agreed to boost flights last year beyond the current 56 flights per week ceiling. Emirates, which currently operates its maximum of 35 weekly flights to China, is among the biggest beneficiaries of the agreement, with the airline saying it plans to increase flights to the country by 40% on the back of rising demand.

#3- Abu Dhabi Airports completed a comprehensive rehabilitation of Sir Bani Yas Airport, enhancing infrastructure, safety, and sustainability to support growing tourism in Al Dhafra, according to the Abu Dhabi Media Office. The upgrades include runway and taxiway reconstruction, a revamped lighting system, and new weather observation technology for improved operational efficiency and safety. The airport can now accommodate Code 4E aircraft, which includes Boeing 747-400, Boeing 777, and Airbus A330/340.

#4- Brics on track to dominate global economy within 15 years, Russia says: Russia predicts that the Brics bloc’s GDP will surpass 50% of global economic output within the next 10-15 years, according to Deputy Prime Minister Alexander Novak, Wam reports. Speaking to Russia-24, Novak stated that Brics currently accounts for 35% of global GDP and continues to grow annually.

This projection underscores Brics’ increasing influence, especially after its 2024 expansion, which saw Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE join alongside Brazil, Russia, India, China, and South Africa. The bloc’s combined economic output already exceeds that of the G7.

#5- GCC countries are eyeing USD 188 bn in tourism revenues in 2030, Secretary General of the GCC Jassim Al Badawi told Qatari newspaper Alsharq. The target comes amid economic diversification efforts in the oil economies. Some 68.1 mn tourists visited the countries in 2023, Al Badawi said, bringing in USD 110.4 bn in revenues. More tourism projects are in the pipeline through the Gulf Tourism Strategy (2023-2030), he added.

Background: UAE tourism revenues and tourist numbers have also been on the rise, with The World Travel & Tourism Council reporting that the UAE received 29.2 mn international tourists in 2024 — a 15.5% increase from 2023.

DATA POINTS-

#1- The Dubai Integrated Economic Zones Authority’s (Diez) net income increased 35.5% y-o-y in 2024, with revenue up 18.4% y-o-y, according to a Dubai Media Office statement. The number of registered companies in Diez’s economic zones — which include Dubai Airport Freezone, Dubai Silicon Oasis, and Dubai CommerCity — grew 9% y-o-y, while the workforce across these zones expanded by 21%, bringing the total number of employees to over 84k.

#2- Dubai accounted for USD 207 bn (54%) of the GCC’s USD 383 bn real estate transactions in 2024, according to Sakan’s residential real estate market report (pdf). The emirate saw a 20% annual increase in transaction value, while Abu Dhabi saw an increase of 11%, Sharjah saw an increase of 47% and Ras Al Khaimah saw a whopping 117% increase.

By the numbers: Apartment rents in UAE neighborhoods ranged from 1.5k to 2.5k monthly, among the GCC’s highest, with Dubai rents rising by double digits and prompting a rental index to regulate prices. Dubai apartment prices rose 19.5% y-o-y, while villa rents increased 18%; Abu Dhabi saw a 10% rise in villa rents, and Sharjah transactions surged 47%, led by Emirati, Indian, and Arab buyers.

Dubai tops GCC in USD 10 mn+ home sales: Dubai reported 388 residential transactions above USD 10 mn in the year to 3Q 2024, the highest in the GCC. Branded residences, totaling 121 completed or planned units, represented 12.6% of the emirate’s 1H 2024 transaction value.

PSAs-

#1- Public sector employees will work reduced hours during Ramadan, the Federal Authority for Government Human Resources (FAHR) announced on X. Working hours will be from 9am to 2:30pm Mondays to Thursdays and from 9am to 12pm on Fridays. Flexible and remote work arrangements will continue, with up to 70% of the workforce allowed to work remotely on Fridays.

#2- Litigants in Abu Dhabi can now pay legal fees in zero-interest installments, after the Abu Dhabi Judicial Department (ADJD) became the first judicial authority in the region to introduce the service, Khaleej Times reports. The initiative covers all litigation-related costs, including court and public prosecution fees, alternative dispute resolution costs, expert and notary fees, and ADJD service subscriptions. It aims to eliminate financial barriers to litigation to ensure that cost constraints do not hinder individuals or businesses from accessing the courts.

HAPPENING TODAY-

#1- TheCleanTech Innovators Exhibition’s second cycle kicks off today at the Sustainability and Innovation Center of Dubai Electricity and Water Authority (DEWA) and ends on Wednesday, as part of UAE Innovates 2025, which started at the beginning of the month. The event will showcase the latest technologies in green hydrogen, sustainability, digital transformation, AI, solar power, and energy storage.

#2- A Dubai government delegation begins its four-day visit to Shenzhen, China today, organized by the emirate’s executive office and Dubai Chambers, state news agency Wam reports. The group will meet public and private sector leaders and tour institutions specializing in technology, innovation, digital economy, urban planning, and sustainability.

The agenda includes meetings with officials from the Shenzhen Stock Exchange to boost financial cooperation; a meeting with Shenzhen Capital Group to strengthen SME ties; one with Tencent to explore digital transformation cooperation; and another with Huawei to discuss smart government solutions and BYD. It will also aim to attract Chinese multinationals and unicorns to Dubai.

#3- Connecting Hydrogen MENA kicked off today and will wrap up on Wednesday at Madinat Jumeirah Conference Center in Dubai. The event features more than 50 sessions and 200 speakers, set to discuss clean hydrogen and ammonia. It includes networking activities and a MENA hydrogen exhibition showcasing technologies.

HAPPENING THIS WEEK-

Investopia 2025will kick off on Wednesday and will wrap up on Thursday at the St. Regis Saadiyat in Abu Dhabi. The event features over 100 speakers, including government officials, investors, entrepreneurs, economists, and major investment funds from 20 countries. It will host 2k participants and representatives from global financial and economic institutions.

THE BIG STORY ABROAD-

Germany’s critical elections are in the spotlight this morning: Center-right Christian Democrats came on top after snapping up 29% of the vote, with leader Friedrich Merz promising “independence” from an indifferent United States.

The bloc still needs one more coalition partner for majority, as far-right Alternative for Germany came in a close second with 21%, its highest share ever. Investors will be watching closely for government negotiations, hoping for a “debt brake” reform soon that will ease restrictions on fiscal spending and spur growth.

MEANWHILE-

  • The Trump administration fired 2k USAID employees and put thousands on leave starting yesterday. (NY Times)
  • Israel has sent tanks into the West Bank for the first time since 2002, saying it will not allow any displaced Palestinians to return. (CNBC)

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