Good morning, friends. It’s another quiet day of news in the UAE as we near the end of the first workweek in Ramadan, but we have several debt and investment updates worth your attention, including Al Futtaim’s investment in BYD and an asset-backed securitization facility from JP Morgan. Plus: The latest on Arab countries’ alternative plan for Gaza's reconstruction.

WEATHER- We’re in for a cloudy day with some blowing winds and dust, according to our favorite weather app and the National Center of Meteorology’s forecast (pdf). Dubai will see the mercury hit 29°C today, with an overnight low of 22°C, while temperatures will hit highs of 26°C in Abu Dhabi with an overnight low of 21°C.

So, when do we eat? Maghrib is at 6:26 pm today in Dubai and 6:30pm in Abu Dhabi. You’ll have until fajr prayers at 5:21 am in Dubai and 5:26 am in Abu Dhabi tomorrow to finish your sohour.

WAR WATCH-

Egypt’s USD 53 bn Gaza reconstruction plan receives Arab backing: Arab leaders endorsed Egypt’s USD 53 bn reconstruction plan for Gaza during yesterday’s emergency Arab League summit held in Cairo. Egypt and a handful of its Arab neighbours spent a month formulating the plan as a counter to US President Donald Trump’s plan to displace Gaza’s citizens against the backdrop of a faltering ceasefire agreement.

The plan at a glance: Under the five-year plan — outlined in a 112-page document — some 400k housing units, an airport, a commercial port, and a technology hub will be constructed, Al Qahera News wrote. The reconstruction process will happen across two phases — the USD 20 bn first phase will take two years to complete and the second USD 30 bn phase will be done in two and a half years. The Egyptian plan also proposes a medium-term ceasefire agreement between Israel and Hamas, which would mark a transitional period during which the two sides would build trust and eventually put an end to all unilateral actions.

Who will be taking charge? An independent Gaza Administration Committee — set up by officials from Egypt and Palestine — will oversee Gaza for a transitional six-month period, laying the groundwork for the return of Palestinian Authority control, President Abdel Fattah El Sisi said yesterday in his opening address (watch, runtime: 5:44:15). Meanwhile, Egypt and Jordan will help train security forces in Gaza and the proposal of having a UN-backed international peacekeeping mission on ground remains under consideration.

Gazans will stay on their land throughout: Temporary housing will be made available for the people of Gaza throughout the reconstruction process, according to the plan.

Who’s paying? A special fund will be set up for the reconstruction of Gaza, El Sisi said, calling on the leaders in attendance, as well as the regional and international communities, to contribute to it. Arab leaders pledged to provide the needed financial and political support needed in a 23-point joint statement following the summit, where they backed Egypt’s plan and pledged, rejected the forced displacement of Palestinians, and called for the necessity of parties respecting the three-phase ceasefire agreement

What’s next? Cairo will host a Gaza reconstruction conference in April in partnership with the Palestinian state and the United Nations.

Deputy Prime Minister Sheikh Mansour bin Zayed Al Nahyan attended the emergency Arab League summit, Wam reports. The UAE’s delegation also included State Ministers Sheikh Shakhboot bin Nahyan Al Nahyan and Khalifa bin Shaheen Khalifa Al Marar, and National Security Council Secretary-General Ali Mohammed Hammad Al Shamsi.

WATCH THIS SPACE-

#1- Archer Aviation will start test flights in the UAE this summer to evaluate its Midnight aircraft’s performance in high temperatures, Khaleej Times quotes CEO Adam Goldstein as saying. These trials will be followed by limited passenger survey flights ahead of full commercial operations.

Abu Dhabi Aviation (ADA) has signed on to be Archer’s first Launch Edition customer, with plans to deploy a Midnight fleet, according to a separate press release. Archer and ADA will collaborate on pilot training, flight operations, and community engagement for Abu Dhabi-based passenger services.

In 2025, Archer aims to produce 10 Midnight aircraft, including three for flight testing. The company plans early commercial deployment in Abu Dhabi, leveraging existing infrastructure with up to five nodes per vertiport.

ICYMI: Archer previously partnered with Abu Dhabi-based Falcon Aviation last year to develop a vertiport network across Dubai and Abu Dhabi, ahead of a planned launch of its flying taxi service.

#2- Iraq to tap local firm to develop new airport? Iraq is looking to award a local firm the contract to develop the infrastructure of a new airport in south central Al Diwaniyah at an undisclosed investment ticket, Governor Abbas Al Zamili told Iraqi news outlet Al Sabah (pdf). The project is set to be awarded this year, though no concrete timeline for the project has been disclosed.

The UAE is no stranger to Iraq: AD Ports Group inked a preliminary agreement back in April 2024 with the General Company for Ports of Iraq to form a joint venture to develop Iraq’s Grand Faw port and economic zone, as well as operate, finance, manage and operate the projects.

#3- DIFC to launch hedge fund hub by end-April: Dubai’s financial freezone, the Dubai International Financial Center (DIFC), will open its Hedge Funds Center by the end of April, offering short-term, plug-and-play office space for hedge fund startups exploring opportunities in the city, Bloomberg reports, citing DIFC sources. The center — set to offer more affordable rates — expects to sign 20-30 firms by year-end, filling most of its 10k sq ft space.

The hedge fund hub is already attracting interest from hedge fund managers in the US, the UK, Singapore, Hong Kong, and India, Bloomberg cites a DIFC spokesperson as saying, without disclosing their name. The demand comes following roadshows in San Francisco and New York — and on the heels of an influx of big hedge fund players over the years.

The details: The new hub, housed in DIFC’s former court building, will feature networking areas, trading-ready offices, and on-site facilities for firms that receive regulatory approval.

Firms with bases in Dubai are also looking at expanding: US-based investment management firm Barings is looking to establish an office in Abu Dhabi before the end of the year, its CEO Mike Freno told Financial News. The firm, which manages USD 421 bn in funds, has a significant number of regional clients with hundreds of mns of USD to manage.

ICYMI- Barings opened an office in Dubai last May in response to increased regional demand. The last few months have seen asset management players including BlackRock and Nuveen set up shop in the emirate, which recently added Al Reem Island to the ADGM jurisdiction to keep up with demand.

DATA POINTS-

#1- Foreign investors bought nearly AED 10 bn in UAE equities in January and February, with ADX raking in the bulk of the funds (AED 9.4 bn) and DFM pulling in the remaining AED 556.4 mn, Mubasher reports, citing market data.

The breakdown: While foreign and Arab investors were net buyers on the ADX, Gulf investors were net sellers, selling some AED 203.6 mn in equities. Over on the DFM, Arab, Gulf, and foreign investors were net buyers, buying some AED 730.1 mn in equities, while Emirati investors were net sellers.

#2- DubaiInternational Chamber attracted 51 multinationals to Dubai in 2024, marking a 55% y-o-y increase from the 33 firms drawn in 2023, according to a statement. Asia led the influx, accounting for 62.7% of MNCs setting up in Dubai, followed by Latin America and Europe (11.8% each), the Middle East and Eurasia (9.7%), and Africa and Australia (2% each).

The top five sectors — construction, trade and logistics, manufacturing, ICT, and retail and tourism — each made up 10% of the total. The mobility sector, including aerospace, space, and autonomous transport accounted for 8%, while healthcare, finance, and energy collectively made up 18%.

#3- UAE startups raised USD 203.5 mn across 15 transactions in February, accounting for over 40% of total funding in the Middle East and North Africa (MENA), according to data from Wamda and Digital Digest. Saudi Arabia led the region with 25 investments valued at USD 250.3 mn. Together, the two markets accounted for 92% of total investment in the region.

MENA rundown: Regional funding surged to USD 494 mn last month, up 457% y-o-y, as the transaction count rose to 58 from 37. Excluding debt, February investment climbed 371% m-o-m. Debt financing accounted for just 15% of total funding, down from 90% in January.

By the sector: Fintech dominated with USD 274 mn across 15 transactions, followed by insurtech at USD 55 mn and logistics at USD 28.5 mn. Investor focus also shifted toward later-stage rounds, led by Tabby’s USD 160 mn Series E, while B2B startups attracted the most capital at USD 191.6 mn across 33 transactions.

PSA-

Abu Dhabi imposes fines for abandoned and dirty vehicles: Abu Dhabi introduced new fines for abandoned or dirty vehicles in public spaces as part of new regulations issued by the Department of Municipalities and Transport, Khaleej Times reports.

Vehicle owners will face a AED 500 fine for a first violation, AED 1k for a second, and AED 2k for a third offense. Leaving just a vehicle body or frame in public areas comes with even steeper penalties, starting at AED 1k and reaching AED 4k for repeat offenses.

THE BIG STORY ABROAD-

Trump is once again dominating the international front pages: US President Donald Trump’s address to Congress — his first since returning to office — saw him outline his administration’s agenda, defend new tariffs, and address the Ukraine-Russia conflict and US policy in the Middle East. (Bloomberg | CNN | AP | The Guardian | Wallstreet Journal | Reuters)

AND IN THE BUSINESS PAGES- Markets continued to digest the latest Trump tariffs throughout trading yesterday until US Commerce Secretary Howard Kutnick suggested the US could ease tariffs on Mexico and Canada, with an announcement coming as soon as today. The news triggered a late-session rally that helped pull the Nasdaq up after it briefly dipped into correction territory — it closed down 0.4%. The S&P 500 closed down 1.2%, while the Dow Jones fell 1.6%. (Reuters | Bloomberg)

The (potential) relief comes after a series of retaliations: Trump’s tariffs — 25% on Canada and Mexico, plus a fresh hike on Chinese goods — sent stocks tumbling as all three countries hit back. Canada hit back with 25% tariffs on USD 30 bn worth of US imports, with plans to extend the levies to another USD 125 bn worth of goods in the coming weeks. China also responded by slapping 10-15% tariffs on USD 21 bn of US agricultural products while imposing export and investment restrictions on 25 American firms.

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