Good morning, friends, and happy hump day. It’s another busy newsday on the home front, with a new sukuk issuance from Sharjah developer Arada, Space42 inking an agreement to map Africa with Microsoft and Esri, and ADGM issuing new cyber risk management rules.

Plus: New data from Knight Frank on industrial and logistics space in Dubai shows a big dip in demand in 1H 2025, as rents continue to climb and supply remains limited.

WEATHER- It’s still hot out there: Daytime highs will hit 42°C in Dubai before dipping to 34°C after dark. Abu Dhabi will see a daytime high of 44°C, with nighttime lows of 33°C.

WATCH THIS SPACE-

#1- State AI firm G42’s cloud computing arm Core42 is close to securing compute from Germany’s Northern Data as it looks to expand in Europe, Bloomberg reports, citing people familiar with the matter. The firm would get data center capacity and access to 23k Nvidia GPUs, the sources said, though the details of the agreement could still change.

Northern Data? The German firm operates data centers in the US, Sweden, Norway and Portugal, and was previously offering computing capacity to cryptocurrency miners but has more recently pivoted to AI powerhouses amid rising demand from that sector.

REMEMBER- G42 recently launched a UK and Europe-focused subsidiary headquartered in London, as it looks to expand its AI infrastructure footprint across the region.The firm already has big plans in Europe, including a planned USD 1 bn investment to develop Europe’s largest AI compute deployment in Italy’s Puglia region, while G42-backed AI investor MGX is helping fund a 1.4 GW AI campus outside Paris.

#2- DLD eyes wider trading, digital currency payments for tokenization project: The Dubai Land Department (DLD) is preparing to expand its real estate tokenization project by allowing investors to participate using digital currencies, Al Khaleej quotes DLD Real Estate Policy and Innovation Director Mahmoud Al Burai as saying.

DLD aims to roll out the feature by the end of this year, and is working with Dubai’s Virtual Assets Regulatory Authority, the Central Bank of the UAE, and the Dubai Future Foundation on a regulatory framework. The law already allows tokenized real estate purchases using crypto, provided the funds are converted into stablecoin and then into AED.

There’s more: Secondary trading of tokenized shares will be available from September to investors in the project’s pilot phase, which launched in March but restricted resale activity. Dubai will also expand the model to off-plan properties and allow non-residents to participate globally.

#3- Dubai Courts is now offering judicial services from Dubai Hub London, marking the first time that the emirate’s judicial authority is operational outside the UAE, according to a post on X. The move aims to help businesses and investors looking to set up shop in the emirate.

REFRESHER- Launched in mid-July by Dubai Chambers as its first services center, the London location now hosts a suite of services from different entities, including the Dubai Land Department, the Economy and Tourism Department, and Dubai Courts — covering property registration, licensing, judicial, and administrative processes. More services are expected in future phases.

#4- New working group to bring investment to Ajman: Ajman Crown Prince Ammar bin Humaid Al Nuaimi has formed a working group of stakeholders from key investment entities in Ajman to attract funds to the emirate, state news agency Wam reports. The group will collaborate with both local and federal authorities.

The agenda: The group is tasked with identifying and promoting key markets and sectors — including infrastructure, tech, digitization, and manufacturing — to both regional and international investors. It will also develop legislative and regulatory initiatives to facilitate capital inflows from investors, and organize outreach programs and a marketing campaign.

#5- Abu Dhabi expands autonomous taxi rollout: Abu Dhabi Mobility has expanded its autonomous taxi services to include Al Reem and Al Maryah Islands, according to a statement. The project is set to be spearheaded by Abu Dhabi Mobility in collaboration with autonomous driving solutions firm WeRide, Uber, and local operator Tawasul Transport, operating under the nation’s Smart and Autonomous Systems Council’s (SASC) strategy.

Autonomous taxis are already operational in Al Saadiyat and Yas Islands, and routes to Zayed International Airport. The inclusion of Al Maryah and Al Reem expands autonomous taxi services to nearly half of Abu Dhabi’s core areas — in line with the city’s goal to transition 25% of trips in the country to rely on smart transportation by 2040.

DATA POINTS-

#1- Dubai International Airport (DXB) handled 46 mn guests on 22k flights in 1H 2025, a 2.3% increase compared to 1H 2024, according to a statement. Some 22.5 mn passengers passed through the airport in 2Q 2025, up 3.1% growth y-o-y. During this period, DXB handled 1 mn tons of cargo, only marginally up 0.1%.

The majority of passengers hailed from India, with 5.9 mn passengers passing through DXB, followed closely by Saudi Arabia with 3.6 mn, the UK with 3 mn, Pakistan with 2.1 mn, and 1.6 mn from the US. London emerged as the top destination, with 1.8 mn passengers heading there, followed by Riyadh with 1.5 mn and Mumbai with 1.2 mn.

The airport will likely see more footfall in 2H: The airport’s CEO, Paul Griffiths, now expects 96 mn passengers to come through for the year due to a late-summer rush as schools re-open, and on the back of Dubai Airshow in November.

Slowing growth: After a few years of quick growth, averaging 57.7% annually between 2021 and 2023 — on the back of a post-pandemic surge — passenger growth has slowed down as global air travel returns to normal, according to a research note from Emirates NBD. However, tourist arrivals in Dubai will continue to drive growth in numbers, with 8.7 mn overnight visitors recorded in 1H 2025, it said.

#2- The global ESG sukuk market is set to surpass USD 60 bn outstanding by the end of 2026, according to Fitch Ratings. The market reached USD 50 bn in 1H 2025, up 12% y-o-y, with the GCC accounting for more than half of this and the UAE and Saudi Arabia being responsible for the majority of outstanding issuances within the GCC.

The outlook for the rest of the year: Fitch expects a seasonal slowdown in 3Q before a rebound for the final quarter of this year — in line with trends in the wider sukuk market. Potential headwinds including geopolitical risks, oil price volatility, and greenwashing concerns could affect issuance.

The broader picture: Global sukuk issuance fell 15% y-o-y to USD 101.3 bn during the first six months of this year, according to an S&P Global report. However, foreign currency sukuk saw a 9% uptick to USD 41.4 bn, and the agency expects sukuk to be a major source of financing for countries reliant on oil revenues next year.

PSA-

There’s a new directory of family business advisors in Dubai: The Dubai Center for Family Businesses has launched a dedicated directory of family business advisors to make consulting services more accessible for family offices, according to Dubai Media Office. The directory will allow family businesses to connect with 56 different advisors, with detailed profiles listed and categorized as either professionals with practical experience in family office advising, or certified consultants.

HAPPENING TODAY-

The US Federal Reserve’s Open Market Committee wraps up its two-day meeting today, which analysts expect will see the Fed staying the course and hold rates steady despite continued pressure from US President Donald Trump. The Fed is broadly expected to gradually begin reducing interest rates starting in September.

THE BIG STORY ABROAD-

It’s relatively calm in the foreign press this morning, as we gear up for a much busier few days heading into the weekend.

What to watch out for: Today’s Fed decision and indicators for future rates decisions; a slew of corporate earnings, including from Meta and Microsoft later today and Apple and Amazon tomorrow; and a potentially big day for markets on Friday, when higher US tariffs are set to take effect.

For now, the story getting the most attention in the foreign press: The US and China have wrapped their trade talks in Stockholm with no agreement in sight yet, though US President Donald Trump said Treasury Secretary Scott Bessent felt “good” about the talks. Trump would have to give final approval on any agreement, Bessent confirmed. The 90-day pause on tariffs is set to expire on 12 August, after which Chinese exports could be subject to up to a 125% tariff — as floated by Trump earlier in the year. (Bloomberg | CNBC | Reuters | Guardian)

Speaking of tariffs: Procter & Gamble is forecasting a USD 1 bn hit on the back of US tariffs, and said it would hike prices “moderately” in the US as part of its long-term strategy. (Financial Times)

Also getting ink: AI firm Anthropic is eyeing a USD 170 bn valuation with a USD 5 bn new funding round set to be led by Iconiq Capital, with potential investments from the the Qatar Investment Authority and Singapore’s sovereign fund GIC. This comes shortly after a note to staff from Anthropic CEO Dario Amodei said he’s looking towards the region for funding despite still holding it in contempt. (Bloomberg | CNBC)

ALSO- The UK said it would recognize Palestine if Israel does not end the war by September, British Prime Minister Keir Starmer said yesterday, following in the footsteps of French President Emmanuel Macron, who said France will recognize the Palestinian state at the United Nations General Assembly in New York in September. (DW | BBC | NPR)

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