Good morning and happy hump day. It’s still somewhat busy on the home turf as we edge closer to back-to-school week and the return of traffic.

THE BIG STORY here at home is ADGM’s latest amendments to liquidity and minimum capital floor requirements, as it looks to tighten oversight while adjusting liquidity rules based on firms’ risk profiles.

On the energy front, Hatta’s new hydroelectric power plant has started exporting electricity to Dubai as it kicks off trial operations, and a Masdar-led consortium secured financing for a 3 GW solar project in Saudi Arabia.

Plus: More real estate data points to a record 2Q 2025 for residential sales in Dubai, driven by a slew of new launches and sustained demand.

WEATHER- Expect a hot, partly cloudy day with the possibility of afternoon rain in the east and south, according to the National Center of Meteorology (pdf). Temperatures in Dubai and Abu Dhabi hit 41°C in, with lows of 33°C.

MORNING MUST-READS-

#1- F1 fans, this one’s for you: McLaren Racing is putting three of its upcoming competition cars under the hammer at a Sotheby’s auction in Abu Dhabi on 5 December, the company said in a press release. The sale includes a 2026 F1 World Championship car, a 2026 NTT Indycar Series car, and McLaren’s first FIA World Endurance Championship car for 2027.

The auction marks the first time a future Formula 1 car has been sold publicly before its official debut, with successful bidders set to receive delivery after the cars have competed in their respective series.

#2- Archer completes longest piloted eVTOLs flight, while Joby tests first airport-to-airport flight: US-based electric vertical take-off and landing (eVTOL) aircraft developers Joby Aviation and Archer Aviation have reached another milestone ahead of their planned launch in the UAE, with Joby running its first flight between two public US airports, and Archer seeing its longest flight yet, according to statements here and here. Joby’s flight between Marina Municipal Airport and Monterey Regional Airport lasted 12 minutes, and saw it integrate into existing air traffic and controlled air space, while Archer saw its longest piloted flight so far with its Midnight series eVTOL covering 55+ miles in 31 minutes.

Background: Both Joby Aviation and Archer Aviation have been running test flights in the UAE this summer to test their aircrafts’ resilience to the hot Gulf weather, as Archer gears up to launch its first flights later this year and Joby launches in Dubai early next year.

#3- Core42 brings OpenAI’s latest open models to the UAE: State AI firm G42’s subsidiary Core42 has rolled out OpenAI’s latest open-weight models on its AI Cloud, according to a press release. Models like the gpt-oss-20B and gpt-oss-120B are now accessible through the Core42 Compass AI and can run on multiple silicon platforms.

The launch comes amid efforts by the UAE to cement its place as a global AI power, ranking second worldwide — just behind the US — according to TRG Datacenters. The ranking puts it ahead of the likes of China, the UK, and India, with Saudi Arabia coming in third. The UAE has more than 188k AI chips, a total computing power of 23.1 mn (H100 equivalents), and a total power capacity of 6.4k MW across eight clusters, according to the Texas-based firm.

REFRESHER- The country’s AI scene received another boost last May with the unveiling of Abu Dhabi’s planned 5 GW UAE-US AI Campus during US President Donald Trump’s visit.

WATCH THIS SPACE-

#1- Santos shares slid as much as 4% in Sydney after the Australian gas producer said its USD 18.7 bn takeover by an XRG-led consortium will face further delays, Bloomberg reports. The consortium indicated it needs at least a month to secure final corporate approvals before entering a binding agreement, which is well beyond the 22 August exclusivity period deadline, potentially opening the firm up to rival suitors.

REMEMBER- The acquisition still requires approvals from regulators in Australia, Papua New Guinea, and the US, where Santos also holds assets, but the biggest hurdle is Australia’s Foreign Investment Review Board, which is expected to be wary of handing over critical energy assets to foreign investors. Including net debt, the transaction would value Santos at an enterprise value of AUD 36.4 bn, positioning it as the largest allcash corporate takeover in Australian history, Reuters said citing FactSet.

The delay is triggering more uncertainty around the fate of the acquisition: “The market is telling you there’s increased risk and uncertainty,” Reuters quoted James Hood, Regal Funds Management’s senior energy analyst, as saying.

But it’s normal for such a big transaction to be subject to scrutiny: “This was never going to be an easy transaction to pull off with the confluence of domestic energy security and national interest considerations as well as the multitude of hard to please stakeholders involved,” the newswire reports citing Kaushal Ramesh, vice president, gas and LNG research at Rystad Energy, as saying.

#2-UAE-Philippines trade agreement incoming? The UAE and the Philippines are preparing to sign a trade and economic partnership agreement in the coming weeks, the Philippine News Agency reports, citing the UAE embassy in Manila. The agreement would be the Philippines’ first with a country in the region, covering goods and services, investments, SMEs, digital trade, customs, governance, and sustainability. The two countries began trade talks in 2022.

#3- Warburg Pincus secures Dubai license? US-based private equity firm WarburgPincus has reportedly received full authorization to operate in Dubai after obtaining a license from the Dubai Financial Services Authority (DFSA) in late June, Financial News reports, citing regulatory filings on the DFSA website.

Background: Bloomberg had reported earlier this year that the firm is planning to expand to the Gulf, tapping Viraj Sawhney from its Mumbai office to lead operations in the region. It had already had a fundraising presence in the region, led by a Dubai executive.

DATA POINTS-

#1- Issuers from the UAE accounted for 8.7% of all emerging market (EM) USD debt in 1H 2025, trailing only behind Saudi Arabia (18.9%) and Brazil (10.6%), Fitch Ratings said in a statement. The GCC as a whole represented 35.5% of issuances, with the region’s debt capital market surpassing USD 1 tn in outstanding issuance as economic diversification strategies, incoming maturities, and financing needs drove demand for financing. Total EM USD debt, excluding China, stood at USD 2.5 tn.

Sukuk made up 21.9% of the UAE’s outstanding DCM, while across EMs sukuk accounted for 13.7% of all issuances in 1H 2025, up from 12% last year.

REMEMBER- Companies and banks in EMs, excluding China, sold about USD 250 bn in international bonds between January and July — the fastest pace since the 2021 post-pandemic boom — with sovereigns accounting for over USD 160 bn, led by Saudi Arabia. Falling borrowing costs and expectations of Fed rate cuts fueled the surge, with JPMorgan projecting issuances to reach USD 370 bn this year, just shy of the 2021 record.

#2- Some 85% of UAE retail investors are currently invested in local equities, according to eToro’s UAE Retail Investor Beat survey. The survey of 1k investors showed 39% hold Abu Dhabi stocks, 28% hold equities listed on the DFM, and 18% hold both. Confidence in the local economy is behind the figures, with some 63% of respondents saying they are “very confident” in the UAE’s current performance.

By the sector: Around 55% of investors identified real estate as the most promising sector for the next 12 months, while 48% were bullish on tech stocks, and 37% were confident in the financial services and energy sectors. Nearly half of the respondents expect strong gains in the UAE’s stock markets this year.

However, 90% expect tariffs and trade wars to significantly impact their portfolios this year, with 89% having already adjusted or planning to adjust allocations. Gold and precious metals are viewed as the most resilient assets (49%), followed by crypto (45%), which remains the most widely held asset class overall at 54%.

PSAs-

#1- No more centralized final exams? The Education Ministry has canceled centralized second semester exams for students in grades 5 to 12, in an effort to reduce stress caused by traditional assessments, Gulf News cites Education Ministry Undersecretary Mohammed Al Qasim as saying. The tests will be replaced with continuous, more holistic assessments — part of broader reforms moving away from high-pressure testing.

More schools, more AI: Nine new public schools are opening at the start of the new academic year, the news outlet quoted Education Minister Sarah Al Amiri as saying at a press conference. Some 1k teachers are also set to teach AI this year, the ministry added, as part of its move to introduce AI classes into the education system.

#2- Citizens in Dubai now have a resolution center to hash out home construction disputes: Dubai Courts is establishing a Citizens’ Home Construction Dispute Resolution Center at Al Manara dedicated to disputes between citizens and contractors over housing projects, according to Dubai Media Office. The center aims to cut litigation times and reduce court backlogs.

THE BIG STORY ABROAD-

There’s a hodge podge of stories out there this morning, none of which are dominating headlines across the international business press. Among the stories of note:

The White House is “ironing out the details” of a potential acquisition of a 10% stake in chipmaker Intel, White House Press Secretary Karoline Leavitt confirmed yesterday, following reports of the potential agreement over the past few weeks. Leavitt’s confirmation also comes after SoftBank announced earlier this week that it’s acquiring a 2% stake in the chipmaker in an agreement worth USD 2 bn. The government appears to be looking to get the stake in Intel in exchange for grants the company received under the Biden administration, with Treasury Secretary Scott Bessent saying, “The stake would be a conversion of the grants and maybe increase the investment into Intel to help stabilize the company for chip production here.” (Reuters | Financial Times)

Air Canada is gradually resuming its flight operations after reaching an agreement with flight attendants over their pay, ending a four-day strike that caused the Canadian air carrier to cancel flights and retract its full-year earnings guidance. Air Canada reportedly agreed to compensate flight attendants for their work on the ground prior to the start of a flight — including boarding passengers — and will also enact immediate pay increases for flight attendants. (CBC | Reuters)

The US and NATO are working on putting together a package of security assurances for Kyiv after the end of Ukraine’s war with Russia, after Ukraine’s Volodymyr Zelensky met with US President Donald Trump in Washington earlier this week. The package could take shape as early as this week, ahead of a potential meeting between Zelensky and Russian President Vladimir Putin. (Reuters | Bloomberg)

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OIL WATCH-

Extra Russian oil to China pressures Dubai crude: Chinese refiners have booked at least 15 cargoes of Russian Urals and Varandey crude for October and November delivery, a shift that could dent demand for Middle Eastern grades priced USD 2-3 per barrel higher, Reuters reports, citing analysts. The extra supply lands as the Dubai market is already softening on weaker seasonal demand and rising arbitrage flows.

Behind the shift: India, until now the main buyer of discounted Russian crude, has cut imports by some 600k-700k bbl/d as markdowns narrowed — prompting some refiners, including Reliance, to pivot back to MENA barrels like Abu Dhabi’s Murban. That opened space for Chinese state-owned and independent refiners, who snapped up the cargoes earlier this month. Even so, Beijing’s Russia intake remains modest at about 50k bbl/d y-t-d, as the grade is not a baseload feedstock for its majors.

CIRCLE YOUR CALENDAR-

The Spring/Summer edition of Dubai Fashion Week will run from Monday, 1 September until Saturday, 6 September at Dubai Design District (d3), ahead of the New York, London, Milan, and Paris fashion weeks. The edition will showcase more than 30 brands from the UAE, Europe, India, and beyond, with runway shows, private events, and an expanded buyers’ program.

BTC MENA Conferencewill take place on Monday, 8 December and Tuesday, 9 December at the Adnec Center Abu Dhabi. Headlined by Michael Saylor, co-founder and executive chairman of Strategy, the event will feature talks, workshops, and exhibitions focused on BTC and digital finance. Last year’s debut drew global names, including Saifedean Ammous and Eric Trump, and attracted backing from Binance, eToro, and M2.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

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