Dubai’s first corporate IPO raises AED 1.4 bn

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Gulftainer eyes USD 1 bn in investments in Egyptian ports + UAE investors eye acquisition of port in Bangladesh

Good morning, friends. It’s nearly the weekend, but there’s no calming down the news flow. Today’s issue features plenty of M&A news, with KKR buying into Adnoc’s gas pipeline assets and several updates on mergers and acquisitions we’ve been tracking. On the debt front, US private equity firm Davidson Kempner bought USD 1.4 bn in distressed loans from Abu Dhabi Commercial Bank.

ALSO- A recent Global SWF report shows that Mubadala was the most active sovereign wealth fund from the region in 9M 2025, deploying USD 17.4 bn. And in the real estate sector, Dubai’s 3Q data shows sales were up 19% y-o-y during the quarter, and prices are up 8-10%.

We also have plenty of updates from the Global Rail Transport Infrastructure Exhibition and Conference, below…

WEATHER- Warm by day, humid by night: Dubai will see a high of 37°C and a low of 28°C, while temperatures in Abu Dhabi are set to peak at 38°C, easing to 29°C overnight, with high humidity in both emirates.

WATCH THIS SPACE-

#1- Gulftainer eyes USD 1 bn investment in Egypt’s ports: Sharjah-based port operator Gulftainer is planning to invest USD 1 bn in Egypt’s container terminal management and port logistics services, according to an Egyptian Commercial Representation Service statement. This came during a meeting between Egyptian Transport Minister Kamel El Wazir and company officials on the sidelines of the World Maritime Day Parallel Event in Dubai. The company is looking at managing and operating container terminals in East Port Said, Alexandria, or Damietta.

ALSO- UAE maritime players are in active talks with Bangladeshi officials for potential investments in Bangladeshi ports, including Bangladesh's Chittagong port, shipping advisor to the Bangladeshi government Sakhawat Hussain told state news agency Wam. Initial discussions already took place with several undisclosed Emirati players to acquire a major Bangladeshi port and manage its operations, Hussain noted, without providing any specific details.

UAE majors have been eying Chittagong: AD Ports inked an MoU in 2024 to explore the development and operation of a multi-purpose terminal in Chittagong port. Dubai-based port operator DP World was also linked to Chittagong, with reports last January saying the firm is exploring investing in a new terminal.

#2- Etihad Rail will launch a bonded rail corridor linking Abu Dhabi’s Khalifa Port to Fujairah port terminals, after signing an MoU with Abu Dhabi Customs, Fujairah Customs, AD Ports Group, Fujairah Terminals, and Noatum Logistics, according to a statement. The rail project will also connect the two ports to their adjacent freezones, forming a “customs corridor” that could help reduce clearance times through coordinated customs operations.

The rail route will begin pilot operations in 4Q, with CEO Shadi Malak noting that the first freight trip — which would also link DP World in Dubai with the other emirates — could happen within two weeks, Zawya reports.

#3- Dragon Oil eyes three new projects in Egypt: Emirates National Oil Company’s (Enoc) subsidiary Dragon Oil is weighing three new potential investments in Egypt, along with others in Iraq, acting CEO Abdulkarim Al Mazmi told Asharq Business (watch, runtime: 6:55). The firm allocates some USD 1.6 bn annually across Egypt, Iraq, and Turkmenistan, and is also looking to enter Southeast Asia in the future.

So far in Egypt: Dragon Oil entered Egypt’s upstream scene in 2020 after acquiring BP’s Gulf of Suez assets, replacing it as Egyptian General Petroleum Corporation's (EGPC) partner. The company agreed to merge its concession agreements in the Gulf of Suez under a unified framework with EGPC back in April, and had previously committed USD 500 mn in investments to the country this year. It inked a USD 40.5 mn agreement with EGPC in September to drill two new wells at the East Al Hamd oil field off the Gulf of Suez, with around USD 30 mn in initial investments, and secured the North July oil field concession northeast of the Gulf of Suez.

#4- Ducab’s Salalah plant to lift output by 10%: Dubai Cable’s (Ducab) purchase of Oman’s National Cable Factory will add more than 20k tons of output, an extra 10% of its current capacity of 200k-250k tons, CEO Charles Milaji told CNBC Arabia (watch, runtime: 02:46). The acquisition is also expected to support UAE-Oman trade, which already exceeds USD 15 bn annually.

ICYMI- Ducab acquired the Salalah-based factory earlier this week for an undisclosed sum, tying Oman’s manufacturing base to its UAE operations to bolster energy infrastructure and drive high-value exports to Oman and the wider East African region.

#5- Ignyte, Binance to launch platform for entrepreneurs: Dubai International Financial Center’s startup-focused platform Ignyte has partnered with Binance, the world’s largest cryptocurrency exchange, to launch a regional blockchain and crypto innovation platform to support entrepreneurs, according to a press release.

On offer: Ignyte and Binance will support blockchain startups through access to developer tools, training programs, blockchain infrastructure, and mentorship from both parties’ networks and partners.

First up, a hackathon: The alliance will kick off with a competitive hackathon for regional developers. Finalists will be able to pitch to investors, corporate leaders, and policymakers at a demo day to gain access to funding, mentorship, and potential market entry.

#6- Dubai’s Virtual Assets Regulatory Authority (Vara) is deploying an AI-powered monitoring system to police digital asset markets in real time, Arabian Gulf Business Insight reports. The Vara Connect tool will plug directly into the systems of licensed exchanges and service providers, allowing regulators to track live transactions and flag suspicious activity instantly, rather than rely on periodic reviews.

How it will work: The system is designed to sift through data — from customer records to blockchain transactions — and detect red flags such as flows from high-risk jurisdictions or wallets tied to scams and hacks. Licensed virtual asset service providers will be required to connect through an API, consolidating financial, customer, and on-chain data submitted to the regulator.

HAPPENING TODAY-

#1- The Global Rail Transport Infrastructure Exhibition and Conference is on its final day at the Adnec Center Abu Dhabi. The conference gathers industry leaders, government officials, and operators to discuss rail technologies and network expansion.

#2- The Water, Energy, Technology, and Environment Exhibition (Wetex) also wraps today at the Dubai World Trade Center. The exhibition showcases innovations in clean energy, water, and sustainability, and hosts panels on the energy transition and climate action.

#3- The Energy Markets Forum is on its final day in Fujairah. The event will bring together more than 300 participants, including senior officials, experts, and executives from local, regional, and international energy and industry entities to discuss supply security, global economic shifts, and sector risks and potential.

#4- The World Green Economy Summit is on its second day and will run till Friday this week at the Dubai World Trade Center. Organized by the World Green Economy Organization, in partnership with Dubai Electricity and Water Authority and Dubai Supreme Council of Energy, the summit focuses on green economy, sustainability, and climate action. The forum convenes policymakers, business leaders, academics, and civil society to discuss climate solutions and sustainable economic models.

#5- The Zawya GCC Capital Markets Forum will take place today at the Fairmont in Dubai. The forum will bring together GCC corporates from traditional wealth exporters to growing capital market participants to address how capital markets are evolving, as well as their surrounding macro environment. The forum will feature C-suite speakers from banks and leading financial institutions including HSBC, Standard Chartered Bank, Emirates NBD, and EFG Hermes.

#6 The Central Bank of the UAE’s International Operational Risk Working Group conference concludes today in Abu Dhabi, according to a press release (pdf). The event brings together representatives from global financial institutions — including the International Monetary Fund, the European Central Bank, and the Bank for International Settlements — to exchange knowledge and develop innovative tools aimed at enhancing financial stability and addressing global operational risks.

THE BIG STORY ABROAD-

All eyes are still on the US shutdown, which began early yesterday morning, as well as on Israel’s interception of vessels from the Gaza aid flotilla.

The shutdown is expected to last at least three days, with the Senate out of session today for Yom Kippur and only expected to meet again on Friday. During this time, White House Budget Director Russell Vought reportedly said the government plans to terminate workers, while some USD 26 bn in funding for Democratic states has been frozen. US President Donald Trump had warned that he would use the funding gap to target “Democrat things.” (Reuters | Bloomberg | CNBC)

Israel intercepted a number of vessels from the Global Sumud Flotilla, which was on its way to Gaza to deliver aid, moving some of the activists on board to an Israeli port. The passengers also said Israel was using “active aggression” on their fleet and trying to sink one of the boats. (Reuters | Guardian)

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Alec’s Dubai IPO closed 21x oversubscribed, raises AED 1.4 bn

Alec Holdings priced its Dubai IPO at the top of its range at AED 1.4 a share, raising AED 1.4 bn in gross proceeds and giving it a market cap of AED 7 bn, according to a press release (pdf). The offer drew some AED 30 bn in orders from local, regional, and international investors, closing more than 21x oversubscribed. The final pricing also implies a 7.1% dividend yield for FY 2026.

Alec’s listing marks the UAE’s largest-ever construction IPO by valuation and size, ending a 15-year drought in the sector, the company said. It also drew one of the highest levels of foreign participation seen in a Dubai government-linked offering in recent years.

It’s nearly showtime for the stock: Alec’s shares are scheduled to start trading on the DFM on Wednesday, 15 October.

What they said: “This is a clear vote of confidence in [Alec’s] distinct value proposition and disciplined operating model. The strong response also signals broader investor conviction in the region’s construction sector, underpinned by ambitious national agendas and a strong pipeline of transformational projects,” CEO Barry Lewis said.

REFRESHER- Alec marketed 1 bn existing shares, or 20% of its total capital, in Dubai’s first corporate IPO of the year. It is also the seventh company to list under Dubai’s privatization program, following in the footsteps of Parkin, Dewa, Dubai Taxi, Salik, Tecom, and Empower.

ADVISORS- Our friends at EFG Hermes are acting as joint bookrunners on the transaction alongside Abu Dhabi Commercial Bank. They’re joined by Emirates NBD Capital and JP Morgan as joint global coordinators and bookrunners, while Moelis is acting as independent financial adviser. Gibson, Dunn & Crutcher, and Ibrahim & Partners are providing counsel.

Emirates NBD is the lead receiving bank, alongside ADCB, ADIB, Al Maryah Community Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic, First Abu Dhabi Bank, Mashreq, and Wio Bank.

ALSO IN THE PIPELINE-

Amanat Holding secured regulatory approval to list 30% of its education unit in Saudi Arabia’s Tadawul; with potential plans to also float its healthcare arm ;
Binghatti was the latest to join the UAE real estate IPO frenzy earlier this month, joining Arabian Construction and property and classifieds platform Dubizzle.
Emirates Global Aluminium could be reviving plans for a potential IPO that could rank among the region’s largest;
ADQ-backed Etihad Airways highly-anticipated IPO was expected to kick off after Eid Al Fitr but could be delayed to 2026 ;
Abu Dhabi conglomerate International Holding Company’s investment arm 2PointZero is gearing up for an IPO on the ADX;
Dubai Holding plans to float two of its property portfolio units;
Abu Dhabi Investment Group is eyeing listings for its financial unit and energy subsidiary this year;
Hospitality group Five Holdings also tapped advisors for a potential listing;
Shisha producer Advanced Inhalation Ritual is also rumored to potentially IPO.

KKR buys into Adnoc’s gas pipeline network

KKR nabs minority stake in Adnoc’s gas pipelines: US private equity firm KKR nabbed a minority stake in Adnoc’s gas pipeline network — Adnoc Gas Pipeline Assets — for an undisclosed sum, as the New York-born private equity firm looks to deepen its regional footprint, according to a press release. The investment was made through KKR’s managed accounts.

Adnoc Gas Pipeline Assets links the company’s upstream production to local off-takers here at home, operating 38 pipelines and two export terminals across the country, CNBC wrote. While KKR is buying into the financial structure, pipeline ownership and operational management remain within Adnoc, allowing the state oil firm to retain control over critical national infrastructure.

A familiar playbook: The move echoes KKR’s 2019 investment in Adnoc’s oil pipeline business, which marked the first-ever foreign investment in Adnoc’s midstream network. The transaction catalyzed a wave of similar infrastructure partnerships and was unwound last year when KKR and BlackRock sold their combined 40% stake to Lunate.

This is also KKR’s second acquisition in the UAE this year, after the firm bought into Dubai’s Gulf Data Hub in January. The private equity giant has been building a larger Middle East franchise, naming former CIA director and ex-US general David Paraeus as chairman of its Middle East unit in April.

KKR’s venture plays into a broader Gulf push to monetize midstream assets. BlackRock struck a USD 11 bn leaseback with Aramco’s Jafurah gas network earlier this year, while Kuwait Petroleum is weighing a similar move to help fund a USD 65 bn investment plan, Bloomberg reports.

The story was also picked up by Reuters.

IN OTHER M&A NEWS-

Fertiglobe completes Wengfu Australia acquisition: Adnoc-owned urea and ammonia producer and exporter Fertiglobe closed its acquisition of Wengfu Australia’s distribution assets, it said in an ADX disclosure (pdf). The takeover was financed through short-term facilities to be repaid within four months. The company said the agreement will have minimal impact on leverage and no effect on dividend capacity.

Looking ahead: Fertiglobe expects the assets to add around USD 23 mn in annual EBITDA by 2030. The agreement — executed through newly created Fertiglobe Australia — adds eight warehouses across five ports handling 700-800k tons of fertilizer annually, with capacity to scale up to 1.1 mn tons.

REFRESHER- Fertiglobe announced the transaction in May, agreeing to pay net asset values plus an USD 8 mn premium. The acquisition diversifies its portfolio into non-nitrogen fertilizers and expands its Asia-Pacific footprint.

Network International, Magnati finalize merger

Network International + Magnati complete merger under Brookfield-led ownership: Dubai-based digital payments firm Network International and First Abu Dhabi Bank’s (FAB) payments arm Magnati have completed their strategic merger, according to a press release. The new entity, which will eventually take Network International’s name and brand, is owned by a consortium led by Canada's Brookfield Asset Management. The two businesses will integrate in phases, with their respective brands staying independent for now.

An expanded offering: The combined entity will offer services including digital payments, SME lending, and financial security solutions — operating across 56 markets. It is also set to collaborate with governments on regional financial inclusion and digital transformation initiatives.

ICYMI- Regulatory clearance for the merger came in July of this year, after the Central Bank of the UAE greenlit Brookfield’s USD 2.8 bn takeover of Network International in 2024 — an acquisition which was finalized in September that year. Brookfield and FAB then said they planned to merge Network International with Magnati — a year after Brookfield acquired a 60% stake in Magnati.

ADVISORS- PJT Partners is the financial adviser to Network for the transaction, while Citi and JP Morgan acted as both financial advisers and corporate brokers. Morgan Stanley is the financial adviser for Bidco and Brookfield.

Mubadala leads MENA sovereign investment activity in 9M 2025, deploying USD 17.4 bn

Mubadala led MENA sovereign investment activity in 9M 2025, deploying USD 17.4 bn, according to a Global SWF report. The fund was followed by the Abu Dhabi Investment Authority (Adia), which invested USD 9.6 bn during the first nine months of the year; the Public Investment Fund (PIF), which invested USD 6.2 bn; and ADQ with USD 4.8 bn.

Since its establishment, Mubadala has also recorded the highest total outbound investments by a MENA state-owned investor (SOI), deploying USD 261.8 bn across 459 transactions. Qatar Investment Authority ranks second with USD 251.3 bn, while PIF ranks third with USD 200 bn from 216 transactions, and Adia is fourth with USD 162.7 bn across 337. ADQ rounds out the top six with USD 46.8 bn deployed across 110 transactions. The Investment Corporation of Dubai (ICD) has deployed USD 23.8 bn across 24 transactions, while the Dubai Investment Fund has invested USD 23.2 bn across 27.

In terms of regional inbound activity, ADQ ranks second among MENA SOIs since its creation, having committed USD 9.5 bn across 27 transactions. PIF leads with USD 15.9 bn from 12 transactions, followed by Mubadala in third with USD 9.3 bn from 27. ADIA ranks seventh with USD 3.4 bn, while ICD is eighth with USD 2 bn. SOIs invested a total of USD 10 bn across 27 transactions in the MENA region in 9M 2024.

Abu Dhabi still tops Global SWF’s 2025 World City Ranking for sovereign wealth fund assets, with USD 1.81 tn of the USD 14 tn managed worldwide. Riyadh follows with USD 1.07 tn, and Dubai with USD 567 bn. MENA SWFs collectively manage USD 5.6 tn in assets in total, projected to rise to USD 8.8 tn by 2030, reflecting a 10% compound annual growth rate.

MENA sovereign investors deployed USD 56.3 bn across 97 transactions in 9M 2025, accounting for 40% of investments from global state-owned investors — unchanged from 2023-2024. More than a third of flows went to the US (34%), 28% to Europe, and 16% stayed domestic. Over a third of flows went to the US (34%), 28% to Europe, and 16% remained domestic.

Typically, 75% of capital deployed by MENA funds goes abroad, with the US (34%) and UK (14%) together capturing nearly half. China, including Hong Kong (5%), India, and Egypt have also gained traction. By sector, MENA funds tend to allocate 40% to real estate and infrastructure, 22% to financials, and 12% to technology.

Foreign inflows lag far behind outflows: While MENA sovereign investors have deployed a total of USD 1.1 tn, the region has only attracted a third of that from global peers, including just USD 77 bn from funds outside their home markets. On the other hand, Asian players have increased interest in the GCC, reflecting shifting global capital flows amid US tariffs and weak European growth.

Davidson Kempner buys USD 1.4 bn in distressed loans from ADCB

US-based hedge fund and global institutional investment firm Davidson Kempner Capital Management reportedly acquired around USD 1.4 bn in distressed loans from Abu Dhabi Commercial Bank (ADCB), Bloomberg reports, citing people it says are familiar with the matter. The portfolio is said to include a mix of secured and unsecured assets.

Distressed debt transactions are heating up in the GCC: The latest sale, which was first reported to be in the works in April, underscores growing appetite from global investors for distressed debt in the region as local lenders look to manage legacy exposures while international funds search for yield. Similar transactions include Deutsche Bank’s acquisition of USD 800 mn in bad loans from First Abu Dhabi Bank earlier this year. Meanwhile, in Saudi Arabia, several banks are said to be considering similar moves, with National Commercial Bank expected to close a transaction before year’s end, the business news service said.

This marks the second such transaction between Davidson Kempner and ADCB, which offloaded a USD 1.1 bn distressed portfolio to Davidson Kempner two years ago in what was seen as a landmark transaction for the region.

In context: The bank has been looking to clean up its balance sheet in the wake of major corporate defaults in recent years, including NMC Health.

Dubai real estate sales up 19% y-o-y in 3Q 2025

Dubai’s real estate market logged AED 237 bn across 74.7k transactions in 3Q 2025, up from AED 200 bn for the same period a year earlier, Al Khaleej reports, citing Dubai Land Department (DLD) data. Sales contributed AED 169.2 bn, up 19% y-o-y, while mortgages were up 17% y-o-y, to AED 49.2 bn. Residential prices rose 8-10% on average despite minor declines in some luxury pockets, according to the data

Ready units and apartments dominated activity, with some AED 86.4 bn in ready unit sales from nearly 19k transactions, just ahead of AED 81.5 bn in off-plan sales. Apartments accounted for the bulk, with a total of 50k units sold for AED 95.5 bn, compared with AED 10.8 bn from 2.5k villa and building transactions. Land also remained a major segment, totaling AED 61.6 bn from some 5.8k plots.

By area: Business Bay led activity with values of AED 11.6 bn, followed by Dubai Investments Park 2 (AED 7.7 bn), Jumeirah Village Circle (AED 6.7 bn), Wadi Al Safa 3 (AED 6.7 bn), and Palm Jumeirah (AED 5 bn).

9M tally nears AED 500 bn: Between January and September, sales reached AED 496 bn, marking a 32.6% y-o-y increase. Including mortgages and grants, total transactions climbed 23% to AED 668 bn.

REMEMBER- This follows a record 1H 2025, when transactions rose 25% y-o-y to AED 431.2 bn across 123.3k transactions. Despite the record activity, most analysts expect prices to moderate slightly in 2H 2025. Fitch Ratings expects a moderate correction of up to 15% to Dubai home prices, while Moody’s and Deloitte also forecast a slowdown or stabilization in price and rent growth. Supply is also surging, with nearly 250k new homes set for completion in the next few years, a 30% jump, as scores of new developers enter the fray.

DFSA relaxes some crypto rules, including suitability checks and investment caps for funds

The Dubai Financial Services Authority (DFSA) issued a consultation paper(pdf) proposing major changes to its crypto token regime, shifting responsibility for determining which tokens are suitable away from the regulator and onto firms. Public comments are open until 31 October.

IN CONTEXT- Currently, only DFSA-recognized tokens — such as BTC, ETH, and LTC — can be used in financial services from the Dubai International Financial Center (DIFC).

Suitability test moves to market players: Under the new proposals, firms would be required to conduct their own suitability assessments against criteria including liquidity, governance, and technology. They would need to publish a list of approved tokens on their websites, monitor them on an ongoing basis, and halt activities if a token falls short.

Stablecoins remain under DFSA watch: Fiat-backed tokens will remain subject to DFSA review, reflecting systemic and AML risks flagged by international bodies. A forthcoming policy statement will set out the regulator’s assessment criteria and publish a list of approved stablecoins.

New reporting duty: Firms would also need to file monthly returns on crypto token activity, covering their lists of suitable tokens, trading volumes, and client exposure. Late filings would trigger fixed penalties.

Funds get more leeway: The DFSA is proposing to remove thresholds and restrictions on how much DIFC, external, or foreign funds can invest in crypto. Fund managers would be able to market or manage funds investing directly or indirectly in tokens, provided they carry out suitability assessments and maintain custody and disclosure safeguards.

Other easing measures: The regulator is also proposing technical changes to lighten compliance, including:

Scrapping the concept of recognized jurisdictions for crypto oversight;
Getting rid of the need to provide a key fact document for tokens;
Allowing all crypto assets to count toward professional investor thresholds;
Removing application fees for token recognition.

Transition period: Tokens currently on the DFSA’s recognized list will remain deemed suitable for three months once the new rules take effect. After that, firms must have completed their own assessments. The DFSA will then remove its recognized token list entirely.

ICYMI- The ADGM’s Financial Services Regulatory Authority is simultaneously advancing its own crypto agenda, launching a consultation earlier this week on new rules for staking virtual assets.

Citi names Sara Ali as head of MEA platforms, data services

Citi has appointed Sara Ali (LinkedIn) as its Middle East and Africa (MEA) platforms and data services head, according to a press release. Ali previously served as Citi’s cluster services technology head for MEA, where she oversaw compliance with regulatory changes. She also led modernization and digital transformation initiatives like the rollout of OnePay.

ADFD provides financing for GSU’s Uzbekistan acquisition

FINANCE-

ADFD backs Global South Utilities’ Uzbekistan expansion: The Abu Dhabi Fund for Development (ADFD) inked an agreement with UAE-based Global South Utilities (GSU) to finance the company’s acquisition of a 51% stake in Uzbek solar project developer Yashil Energiya, according to a press release. GSU secured the stake last month, marking its entry into the Commonwealth of Independent States region. The Uzbek energy player developer is set to boost its current 50 MW portfolio by tens of MW using funds from the acquisition.

STARTUPS-

#1- Upfront secures USD 10 mn for SME cashflow: Dubai-based fintech startup Upfront raised USD 10 mn in a pre-seed funding round to boost cashflow efficiency for Mena SMEs, according to a press release (pdf). The funding came in a mix of debt and equity, with Saudi Arabia’s Palm Ventures and Azerbaijan’s Sabah.fund leading the round, and strategic angel investors participating.

Post funding round: The startup will use the fresh funds to hire across its UAE operations and accelerate product development. It is also planning to expand into Saudi Arabia. Upfront’s platform works with firms’ accounting programs to give real-time financial analytics, facilitate payments, and automate receivables to reduce cashflow issues in sectors like manufacturing and FMCG.

A strong track record: Launched in May, the fintech’s founding team of Anas Qudah (LinkedIn), Abdullah Alghadouni (LinkedIn), and Mahmoud Abdel-Fattah Moursy (LinkedIn) has experience working with firms such as Careem, Dubizzle, and Property Finder. The startup has already inked an agreement with embedded finance platform CredibleX to gain access to more flexible capital structures for small and medium businesses.

#2- UAE-based startup Climaty AI secured USD 2 mn in early stage funding led by global venture capitalist Turbostart, with AI experts and angel investors also taking part, according to a press release. The firm will use the funding to scale its agentic AI marketing platform.

About Climaty AI: Founded in 2024 by Neel Pandya (LinkedIn), the startup’s platform uses four AI-powered media agents to automate media campaigns. So far it has tested its systems in the edtech, consumer healthcare, automotive, and FMCG sectors. The firm plans to expand across regions including APAC, EMEA, the UK, and North America.

AGRICULTURE-

Silal + LVS establish JV to advance crop sustainability R&D: Abu Dhabi-based agritech food firm Silal partnered with Limagrain Vegetable Seeds (LVS) — the vegetable seed division of international seed group Limagrain — to establish the Center of Excellence for Abiotic Resilience and Crop Genomics (ARC-GEN) in Al Ain, according to Abu Dhabi Media Office. The facility is aimed at enhancing crops’ ability to withstand climate volatility, advancing crop genomics, and developing new vegetable varieties.

About ARC-GEN: Located in the Silal Innovation Oasis, the facility aims to produce sustainable vegetable genomes to strengthen agricultural production through two units. A plant physiology unit will identify the most adaptable plants to environmental stress, and a gene editing unit will refine plant genes to produce stronger varieties.

BACKGROUND- In June, ADQ was in talks to acquire a 35% stake in LVS. A JV focusing on adapting crops to desert climates was also on the table.

REAL ESTATE-

Source of Fate launches AED 2.6 bn luxury development on Al Marjan Island: The real estate arm of Dubai-based conglomerate Wheel of Fate — Source of Fate — unveiled an AED 2.6 bn luxury residential development on Al Marjan Island, Ras Al Khaimah, according to a press release. The waterfront project, Miraggio, will be located on the island’s central islet and include 810 residential units. The developer did not disclose the project’s construction timeline.

BACKGROUND- Last year, the company announced plans to pour AED 10 bn into new developments, with five projects on the horizon — two in Dubai and three on Al Marjan Island.

Investors sell into small-cap surge amid trust deficit

With a strong September comes an unexpected small-cap streak: The small-cap Russell 2000 has climbed to an all-time high after its longest run of weekly gains in nearly five years, boosted by US Federal Reserve rate cuts and a resilient US economy, Bloomberg reports. The small-cap index — which is historically seen as a “risky corner” of the US stock market — is outperforming as Wall Street unexpectedly recorded a positive September. Typically a negative month for equities, all three major US indices closed September in the green, marking their best September in 15 years.

Record outflows from iShares Russell 2000 ETF: Despite the rally, the iShares Russell 2000 ETF has seen USD 5.4 bn in outflows this year, putting it on track for its largest-ever annual withdrawal. While September inflows signaled some optimism, they were not enough to reverse the broader drawdown.

Not all small-cap indexes are keeping pace: The Russell’s breakout was not matched by higher-quality benchmarks like the S&P Small Cap 600, which excludes weaker firms, Ned Davis Research noted.

Lower borrowing costs boost appeal: Small caps typically do well in a strong economy with low interest rates, as many need to borrow to fund their operations. With the Federal Reserve now lowering rates and the economy on track for over 3% growth, investor confidence is tentatively returning, leading to positive fund inflows in September.

However, confidence has been eroded by repeated setbacks: Small caps have lagged behind large peers since the pandemic, struggling in 2022’s bear market and missing out on much of the AI-fueled rally that lifted the Nasdaq 100 by 50%. The Russell 2000 needed four years to reclaim a record high, underscoring the gap with tech-heavy indexes. Years of “false dawns” have left investors cautious, with many locking in gains quickly amid fears the rally won’t last, said Bloomberg Intelligence’s Athanasios Psarofagis.

Fundamentals still a headwind: Meanwhile, slow Fed rate cuts and weak earnings prospects for small companies continue to weigh on fundamentals, with Wells Fargo analysts suggesting the rally may already be “over,” while Sykon Capita’s Todd Stankiewicz argued that only a more supportive business environment will bring sustained inflows.

Long road to regain trust: It could take months, or a year, of consistent outperformance for small caps to regain investor trust, said Fulton Breakefield Broenniman’s Michael Bailey. For now, investor preference remains tilted toward large caps and high-risk alternatives like AI stocks or crypto ETFs until the business environment turns more favorable, Stankiewicz and Wells Fargo said.

MARKETS THIS MORNING-

It’s a positive morning so far for Asian markets, with South Korea’s Kospi leading the pack as Samsung Electronics and SK Hynix rallied in early trading. The two firms announced a partnership overnight with OpenAI to supply memory chips. Meanwhile, Japan’s Nikkei and Hong Kong’s Hang Seng Index are both in the green.

Meanwhile, Wall Street looks set to shrug off the government shutdown and extend its rally, with futures suggesting the S&P 500, Dow Jones, and Nasdaq will all open in the green later today as investors are expecting the shutdown to be short-lived.

ADX	10,028	+0.1% (YTD: +6.3%)
DFM	5,888	+0.8% (YTD: +13.2%)
Nasdaq Dubai UAE20	4,788	+0.9% (YTD: +15.0%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	3.9% o/n	3.8% 1 yr
TASI	11,529	+0.2% (YTD: -4.4%)
EGX30	36,769	+0.3% (YTD: +23.6%)
S&P 500	6,711	+0.3% (YTD: +14.1%)
FTSE 100	9,446	+1.0% (YTD: +15.6%)
Euro Stoxx 50	5,581	+0.9% (YTD: +14.0%)
Brent crude	USD 65.73	+0.6%
Natural gas (Nymex)	USD 3.45	-0.7%
Gold	USD 3,884	-0.3%
BTC	USD 118,363	+3.8% (YTD: +26.4%)
Chimera JP Morgan UAE Bond UCITS ETF	AED 3.75	+0.8% (YTD: +7.7%)
S&P MENA Bond & Sukuk	15.79	+0.1% (YTD: +7.8%)
VIX (Volatility Index)	16.29	+0.1% (YTD: -6.1%)

THE CLOSING BELL-

The DFM rose 0.8% yesterday on turnover of AED 531.2 mn. The index is up 13.2% YTD.

In the green: National General Ins. (+8.0%), GFH Financial Group (+7.0%), and Emirates Investment Bank (+6.7%).

In the red: Taaleem Holdings (-3.3%), Talabat Holding (-2.7%), and BHM Capital Financial Services (-1.8%).

Over on the ADX, the index rose 0.1% on turnover of AED 1.2 bn. Meanwhile, Nasdaq Dubai was up 0.9%.

CORPORATE ACTIONS-

Parkin to distribute AED 312 mn in interim dividends: Dubai’s public parking operator Parki n will pay shareholders an interim dividend of AED 312 mn for 1H 2025, according to a disclosure (pdf).

Trace pacts with Malaysia, Australia come into effect

UAE-Malaysia trade pact takes effect: Malaysia and the UAE’s trade and economic partnership agreement between the UAE and Malaysia has come into force, state news agency Wam reports. Signed earlier this year, the pact aims to more than double bilateral trade to USD 13.5 bn by 2032 through cutting tariffs, streamlining customs, and expanding private sector cooperation. This is Malaysia’s first trade agreement with a Gulf state.

Sectors on target: The agreement extends beyond goods to cover services, investment, and the Islamic economy, with provisions supporting joint growth in healthcare, AI, renewable energy, logistics, and sustainable development.

REMEMBER- The two sides concluded negotiations in late 2024 and have since also inked MoUs on maritime and food security — including plans to develop a multipurpose terminal at Malaysia’s Bagan Datuk Port to serve as a food export hub to China, ASEAN, and the GCC.

The UAE’s trade pact with Australia has likewise taken effect, aiming to raise annual trade from 2024’s USD 4.2 bn to more than USD 10 bn by 2032, Wam reports. Signed in November 2024, the agreement is Australia’s first with a MENA country, and reduces tariffs, eases market access, and targets investment in renewable energy, food security, infrastructure, and technology.

REMEMBER- The UAE’s Cepa program underpins its goal of pushing foreign trade to USD 1 tn by 2031. Non-oil foreign trade jumped 24% y-o-y to nearly AED 1.7 tn in 1H 2025, with trade contributing 15.6% of non-oil GDP in 1Q 2025. The sector is now on track to hit AED 4 tn by 2027 — four years ahead of the original 2031 target.

UAE, Russia partner on tax administration: The Federal Tax Authority signed a cooperation agreement with Russia’s Federal Tax Service to collaborate on digital tax systems, training, and participation in international forums and working groups, according to a press release.

CALENDAR

OCTOBER

30 September-2 October (Tuesday-Thursday): Global Rail Transport Infrastructure Exhibition and Conference, Abu Dhabi.

30 September-2 October (Tuesday-Thursday): The Water, Energy, Technology, and Environment Exhibition (Wetex), Dubai World Trade Center.

1-2 October (Wednesday-Friday): World Green Economy Summit (WGES), Dubai World Trade Center.

1-2 October (Wednesday-Thursday): The Energy Markets Forum, Fujairah.

2 October (Thursday): Zawya GCC Capital Markets Forum, Fairmont, Dubai.

3-16 October (Friday-Thursday): Dubai Home Festival.

4 October (Saturday): Syria Recovery and Investment Forum, Adnec Center, Abu Dhabi.

5-7 October (Sunday-Tuesday): Najah Exhibition, Dubai World Trade Center, Dubai

6-7 October (Monday-Tuesday): AgraME, Dubai World Trade Center, Dubai

6-7 October (Monday-Tuesday): Forex Expo 2025, Dubai World Trade Center, Dubai

6-8 October (Monday-Wednesday): AccessAbilities Expo, Dubai World Trade Center, Dubai

7 October (Tuesday): Enterprise Egypt Forum 2025.

7-9 October (Tuesday-Thursday): The International Symposium on the System of Radiological Protection, the Ritz-Carlton Abu Dhabi, Grand Canal.

8-9 October (Wednesday-Thursday): Quantum Maritime Conference, Mussafah, Abu Dhabi

9 October (Thursday): Family Office Summit, Park Hyatt, Dubai.

9-11 October (Thursday-Saturday): European Arab Medical Congress (EAMC 2025), Abu Dhabi Energy Center, Abu Dhabi

9-15 October (Thursday-Wednesday): IUCN World Conservation Congress, Abu Dhabi.

12-15 October (Sunday-Wednesday): Expand North Star, Dubai Harbor.

13-17 October (Monday-Thursday): GITEX Global, Dubai World Trade Center, Dubai

14-16 October (Tuesday-Thursday): Global Future Councils, Dubai.

14 October (Tuesday): Dubai Safari Park, Dubai

15 October (Wednesday): Alec Holding’s shares to begin trading on the DFM.

15-18 October (Wednesday-Saturday): Middle East Electric Vehicle Show, Expo Center Sharjah.

15-18 October (Wednesday-Saturday): The Future Mobility Expo and Conference, Expo Center Sharjah.

15-18 October (Wednesday-Saturday): Evolve Future Mobility Show, Expo Center Sharjah.

21-22 October (Tuesday-Wednesday): HR Summit & Expo 2025, Dubai World Trade Center, Dubai

21-23 October (Tuesday-Thursday): International Family Med. Conference and Exhibition, Dubai World Trade Center.

21-23 October (Tuesday-Thursday): Annual Radiology Meeting (ARM), Dubai World Trade Center, Dubai

21-23 October (Tuesday-Thursday): Healthcare Future Summit 2025, Dubai World Trade Center, Dubai

22 October (Wednesday): Reuters NEXT Gulf Summit, The St. Regis Saadiyat Island Resort, Abu Dhabi.

22-23 October (Wednesday-Thursday): Alternative Investment Summit, Jumeirah Emirates Towers, Dubai.

22-24 October (Wednesday-Friday): World Investment Conference, Expo Center Sharjah.

23 October (Thursday): S&P Global’s annual Islamic Finance Conference, DIFC Atrium, Dubai.

27 October (Monday): The UAE Africa Tourism Investment Summit, Dubai.

27-29 October (Monday-Wednesday): Future Hospitality Summit, Madinat Jumeirah, Dubai.

27-29 October (Monday-Wednesday): Asia Pacific Cities Summit, Dubai Exhibition Center.

28-29 October (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

29 October (Wednesday): The Brand Residences Forum, Dubai.

NOVEMBER

1-2 November (Saturday-Sunday): Women's Empowerment Convention (WE Convention), Atlantis The Royal, Dubai.

4-6 November (Tuesday-Thursday): Annual government meetings, Abu Dhabi.

4-6 November (Tuesday-Thursday): ARABAL International Aluminum Conference, Dubai

4-9 November (Tuesday-Saturday):Dubai Design Week, Dubai.

10-15 November (Monday-Saturday): SASC organizes Abu Dhabi Autonomous Week, Abu Dhabi.

10 November (Monday): SASC organizes The Abu Dhabi Autonomous Summit, Abu Dhabi

11-17 November (Tuesday-Monday): International Council of Museums (ICOM) General Conference, Dubai.

12 November (Wednesday): Dubai Business Forum, Cipriani South Street, New York City.

12-17 November (Wednesday-Monday): RoboCup Asia-Pacific, Khalifa University, Abu Dhabi.

13-15 November (Thursday-Saturday): International Financial Markets (ICA) Conference and Exhibition, Conrad Dubai.

15-17 November (Saturday-Monday): Myplant & Garden Middle East Green Expo, Dubai Exhibition Center, Expo City.

17-21 November (Monday-Friday): Dubai Airshow, Al Maktoum International Airport, Dubai.

18-19 November (Tuesday-Wednesday): Dubai Future Forum, Museum of the Future, Dubai.

19-20 November (Wednesday-Thursday): Investment and Business Summit, Al Hamra International Exhibition and Convention Center, Ras Al Khaimah

19-23 November (Tuesday-Sunday): Abu Dhabi Art, Manarat Al Saadiyat, Abu Dhabi

24-27 November (Monday-Thursday): Big 5 Global Exhibition, Dubai World Trade Center, Dubai

26-27 November (Wednesday-Thursday): DATE (Digital Acceleration & Transformation Expo), Dubai

DECEMBER

1-3 December (Monday-Wednesday): Eid Al Etihad (UAE National Day).

2-5 December (Tuesday-Friday): Sotheby’s Abu Dhabi Collectors’ Week, Abu Dhabi.

1-5 December (Monday-Friday): The World Congress of Neurosurgery, Dubai World Trade Center.

7-14 December (Sunday-Sunday): Asian Youth Para Games, APC headquarters, Dubai.

8 December (Monday): DeFi Technologies Insights Global Symposium, Emirates Palace, Abu Dhabi.

8-9 December (Monday-Tuesday): BTC MENA Conference, Adnec, Abu Dhabi.

8-9 December (Monday-Tuesday): Global AI Show 2025, Abu Dhabi.

8-10 December (Monday-Wednesday): The Bridge Summit, Adnec Center, Abu Dhabi.

8-11 December (Monday-Thursday): Abu Dhabi Finance Week, Al Maryah Island.

9-10 December (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

9-11 December (Tuesday-Thursday): Automechanika Dubai Trade Show, Dubai World Trade Center.

13-15 December (Saturday-Monday): Mobile Developers Week, Abu Dhabi.

18-23 December (Thursday-Tuesday): Games of the Future, Adnec, Abu Dhabi.

29-30 December (Monday-Tuesday): World Sports Summit, Dubai.

Signposted to happen sometime in 2025:

e& will complete Adnoc’s private 5G network
Executive Committee Meeting (EXCOM 2025) conference of the World Smart Sustainable Cities Organisation (WeGO)

Signposted to happen sometime in 2H 2025:

Closing of XRG's acquisition of Covestro

JANUARY 2026

1 January: Client asset regime changes in Dubai International Financial Center take effect.

9-11 January (Friday-Sunday): 1 Bn Followers Summit, UAE.

13-15 January (Tuesday-Thursday): FESPA Middle East, Dubai Exhibition Center, Dubai

28-29 January (Wednesday-Thursday): IBA Arbitration Day Conference, Abu Dhabi.

28-30 January (Wednesday-Friday): World Customs Organization Technology Conference, Adnec Center, Abu Dhabi.

FEBRUARY 2026

3-5 February (Tuesday-Thursday): The World Governments Summit.

12-15 February (Thursday-Sunday): The Society for Incentive Travel Excellence Global Conference, Abu Dhabi.

9-13 February (Monday-Friday): The World Health Expo (WHX), Dubai.

MARCH 2026

31 March - 2 April (Tuesday-Thursday): Arab Media Summit, Dubai.

26-28 March (Thursday-Saturday): Social Capital Conference, Dubai.

JUNE 2026

15 June-15 September (Monday-Thursday): Dubai Mallathon, Dubai.

JULY 2026

31 July (Friday): Large businesses achieving annual revenues equal to or above AED 50 mn must appoint an accredited service provider for e-invoicing implementation.

Signposted to happen in 2026:

13-15 April ( Monday-Wednesday) : The International Glass Manufacturing Show, Dubai.
14-16 April: (Tuesday-Thursday): the International Property Show, Sheikh Zayed Rd, Dubai.
11-13 May (Monday-Wednesday): AI Everything Global, Adnec Center.
The UAE to host the Arab Competition Forum
Dubai to host the Arab Actuarial Conference
United Nations Water Conference
Dubai Future Finance Week
Investopia Global Talks, Tashkent

Signposted to happen sometime in October 2026:

Abu Dhabi Space Week, Abu Dhabi.

Signposted to happen sometime in 2027:

1 January: Deadline for large businesses to implement e-invoicing.
1Q 2027: Completion of the first phase of Hassyan seawater desalination project.
31 March: Small businesses with annual revenues of less than AED 50 mn are obliged to contract with an accredited service provider for e-invoicing implementation
31 March: Government entities are required to appoint an accredited service provider for e-invoicing implementation.
1 July: Deadline for small businesses to implement e-invoicing.
1 October: Deadline for governments to implement e-invoicing.
Abu Dhabi’s solar and battery energy facility, combining 5.2 GW of solar capacity and 19 GWh of battery storage, is set for commissioning.

Signposted to happen sometime between 2027 and 2029:

Sibos 2029 organized by the Society for Worldwide Interbank Financial Telecommunication (SWIFT), Dubai.
The commissioning of the seventh phase of Mohammed bin Rashid Al Maktoum Solar Park.

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