MGX now backs Anthropic, xAI, and OpenAI

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Two DP World partners pause future investments + Two DP World partners pause future investments + Adia stays firm on selling Vier Gas stake

Good morning, everyone. We’re entering the final stretch before Ramadan, but as we’ve learned from years past, that doesn’t mean that the news will be slowing down — what it does mean is we learn to work on (much) less caffeine.

AI is a big theme in today’s issue, as Abu Dhabi investor MGX backs yet another global AI player, this time Anthropic. This means it has completed a hattrick of sorts with investments in all three major AI players: OpenAI, xAI, and Anthropic. We break down what the investor stands to gain from this and more on its playbook in the news well, below.

Our Planet Finance also looks at AI startup investments last year in the MENA region — and the numbers show that interest has catapulted across both the UAE and Saudi Arabia, and other markets in the region.

Energy and logistics news is also aplenty in today’s issue, as AD Ports expands its international footprint via a key gateway to Central Africa, and Adnoc’s XRG is making moves on its Argentina LNG project.

We also have some exclusive color on Presight’s 2025 earnings, along with updates from a plethora of other players.

Watch this space

LOGISTICS — Two DP World int’l partners suspend future investments in the company: British International Investment (BII) and Canadian pension fund Caisse de Dépôt et Placement du Québec (CDPQ) suspended future investment deployments into DP World projects after DP World CEO Sultan Ahmed bin Sulayem was named in the files related to the late financier and [redacted] offender Jeffrey Epstein, released earlier this week by the US Department of Justice.

Why this matters: Both BII and CDPQ are key partners to several DP World projects, with USD bns in pledged investments. CDPQ holds 45% of DP World’s Canada-based subsidiary and has pledged more than USD 8.7 bn for joint projects since 2016, including USD 5 bn in UAE-based assets. Meanwhile, government-owned development finance player BII pledged USD 720 mn back in 2021 for a joint Africa-focused platform, which is currently involved in at least five port projects in Africa, including Egypt’s Sokhna Port.

What’s next? It’s not clear how much of previously committed investments are yet to be deployed, but both investors said the suspension will remain until necessary measures are taken by DP World.

DIVESTMENT WATCH — Adia remains keen to sell OGE stake despite setback: Abu Dhabi Investment Authority’s (Adia) subsidiary Infinity Investments still plans to divest its 24.99% stake in Vier Gas Holdings, the owner of German gas transmission operator Open Grid Europe (OGE), Bloomberg reports, citing sources familiar with the matter. Other shareholders, British Columbia Investment Management (32.2%) and Meag Munich Ergo Asset Management (18.7%), are also weighing potential exits.

This isn’t the fund’s first divestment attempt: Infinity Investments was close to selling its stake to energy infrastructure firm Snam for EUR 920 mn last year, but German regulators blocked the transaction over unmet requirements from Snam. Bloomberg had cited partial Chinese ownership as posing security fears for authorities.

What’s next? The involved parties are in discussions regarding a potential sale, with nothing set in stone for now. The identity of possible buyers and the transaction’s size were not disclosed.

M&A WATCH — UAE-based Trueledger Technologies has expressed preliminary interest in acquiring an up to 20% stake in Mumbai-based IT firm Silverline Technologies, according to a regulatory filing (pdf). The non-binding offer is subject to regulatory approval and open to further negotiations.

Silverline? The company offers software and enterprise solutions to global clients. It recently debuted a beta version of its in-house AI chatbot and productivity tool, Silver AI, slated for commercial rollout this month.

Why it matters: Gulf capital has shown an increased appetite for Indian AI platforms as firms chase scalable, product-led technology players beyond traditional IT services. Silverline is attempting a pivot from legacy IT services toward a high-margin AI product play.

ECONOMY — The UAE economy is on track to grow by more than 5% this year, fueled by a non-oil sector slated to expand by a 5.5% clip, Economy Minister Abdulla bin Touq Al Marri told state news agency Wam. Non-oil activities are also expected to account for 78% of the country’s GDP — a feat the minister attributes to a massive legislative overhaul that saw more than 40 laws and regulations updated to streamline the business ecosystem.

The trend to watch: The number of registered companies in the UAE has more than doubled over the last five years, jumping from 650k to over 1.45 mn today. The ministry expects this figure to hit 2 mn by 2031. This expansion has been supported by new regulatory and legislative updates like amendments to the Commercial Companies Law, which Al Marri notes has specifically positioned the UAE as a preferred global hub for family businesses to manage international operations.

How this compares with other forecasts: The Central Bank of the UAE (CBUAE) is more optimistic, with growth penciled in at 5.2% for 2026. The IMF is also projecting 2026 growth to come in at 5.0%, while the World Bank holds the most conservative outlook at 4.8%.

!_InsterLine_!

TELECOMS — Another subsea route plugs into the UAE: Du is joining the Singapore-India-Gulf (SING) submarine cable system, partnering with Cyprus-based Datawave Networks to land the network in the UAE, Zawya reports, citing a press statement. The addition carves out another long-haul corridor into the country’s fast-growing connectivity map.

About the system: SING will link six hubs — Kalba, Muscat, Mumbai, Chennai, Kedah, and Singapore — creating a fresh east-west pathway between Southeast Asia, South Asia, and the Gulf. The cable is expected to enter into service in 2030, with Kalba serving as the UAE landing point.

The move comes amid a wider subsea build-out at home: Most recently, we covered e&’s integration of the 45k-km 2Africa cable into live service at its UAE SmartHub data center, bringing the world’s largest subsea system directly into the local market. The projects cement the UAE’s role as a primary landing and routing hub for traffic moving between Asia, Africa, and Europe — not just a transit stop in global data flows.

PSA

Ramadan hours land soon: Federal employees will work from 9am to 2:30pm from Monday to Thursday during Ramadan, while Fridays will see the day wrap up at 12pm, according to a post on X by the Federal Authority for Government Human Resources. Ministries and federal entities will apply flexible work hours during the month, the statement said. They may also permit remote work on Fridays for up to 70% of the workforce, subject to existing rules.

Meanwhile, private sector staff will see their workday shortened by two hours, Wam reports.

🌞WEATHER- The heatwave is reaching its peak, with the mercury reaching a high of 31°C in Dubai today, before cooling to an overnight low of 19°C, while Abu Dhabi will see a high of 32°C and a low of 17°C.

The big story abroad

Markets are still dominating the conversation in the international business press, with all eyes on the tech rout that continues to hit US stocks, after the tech-heavy Nasdaq fell 2% yesterday and the S&P 500 fell 1.6%. This came as Cisco’s share price fell 12.3% after it missed its earnings targets, reigniting concerns around the impact of AI on existing industries.

In another sign that AI is becoming too big to ignore, Anthropic has now raised the second largest private tech fundraising round on record, with a USD 30 bn round raised at a USD 380 bn valuation, following OpenAI’s USD 40 bn round last year. The round was co-led by US investment firm Coatue and Singapore sovereign wealth fund GIC, as well as other investors like ICONIQ and Abu Dhabi AI investor MGX, and includes previous allocations from Microsoft and Nvidia.

Also: The US administration repealed Obama-era policies that required automakers to measure and report their greenhouse gas emissions, with US President Donald Trump claiming it’s a “disastrous” policy that “severely damaged the American auto industry and drove up prices for American consumers.”

AND CLOSER TO HOME- Saudi Arabia replaced its investment minister, appointing Fahad Al Seif, head of investment strategy and global capital finance at the Public Investment Fund, at the helm of the ministry, and removing his predecessor Khalid Al Falih, who held the role since 2020. The move came as part of a wider cabinet reshuffle that also saw changes in the judicial and grievances spheres. It also comes as the Kingdom reassesses its spending priorities and continues to prioritize attracting investments for the purposes of economic diversification.

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Market watch

The International Energy Agency (IEA) has cut its 2026 global oil demand growth forecast to 850k bbl / d, a 80k bbl / d drop from last month, due to economic uncertainty and higher oil prices, Reuters reports, citing the agency’s latest monthly report. Supply growth was also trimmed to 2.4 mn bbl / d from 2.5 mn bbl / d, but still runs far ahead of demand.

The gap: The agency now sees global supply exceeding demand by 3.73 mn bbl / d this year, close to last month ’s projection and equal to roughly 4% of global demand.

Opec is telling a different story — as usual: The group held its demand growth outlook steady, penciling in a rise of 1.38 mn bbl / d, Reuters reported, citing the group’s latest monthly report (pdf). That’s some 530k bbl / d in disagreement with the IEA, according to our calculations.

But even Opec’s own numbers point to near-term softness for its barrels. Demand for Opec+ crude is expected to fall by 400k bbl / d in 2Q, with group demand averaging 42.2 mn bbl / d, down from 42.6 mn bbl / d in 1Q.

Why this matters: This all comes as we wait for Opec+’s decision for supply after 1Q ends and the pause they said they would take seemingly expires, especially as any abrupt hikes risk turning a manageable surplus into a price problem.

Circle your calendar

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

MGX’s hattrick

Abu Dhabi AI investor MGX was among several investors co-leading a USD 30 bn series G funding round for AI startup Anthropic, making it now a backer of three major AI rivals: OpenAI, xAI, and Anthropic. The investment was also co-led by D.E. Shaw Ventures, Dragoneer, Founders Fund, and Iconiq.

The investment puts MGX at a massive advantage, with a stake in not one but three of the world’s top AI players, at a time when backing of one or the other is often seen as a matter of “taking sides.” Prior to this round, the Qatar Investment Authority was the only known Middle Eastern backer of Anthropic, after participating in its USD 13 bn fundraise last year, while MGX backed both OpenAI and xAI.

It also puts MGX among the stakeholders of two companies set to pull the trigger on what could be the two largest IPOs of all time. Both OpenAI and Anthropic are in the running for public listings this year, with OpenAI rumored to potentially make the move later this year.

Bns are at stake: Anthropic is already seeing massive growth, with its run-rate revenue growing over 10x annually over the past three years to now hitting USD 14 bn.

Our take

MGX’s investment playbook is very much a mirror of the UAE’s own, showing a neutral, agnostic investor and partner to all. The move to back major AI players comes as the UAE looks to become a global AI hub, with Stargate UAE — a massive data center cluster led by OpenAI, Oracle, Nvidia, and Abu Dhabi’s G42 — being an anchor of that ambition.

What to watch: While it’s not yet clear, if MGX’s backing of these AI companies involves gaining a seat on their boards, it would give it unprecedented visibility and access into some of the world’s biggest AI players.

AD Ports lands 30-year Douala terminal concession

AD Ports Group is taking a majority stake in a 30-year concession to develop a new dry bulk terminal at Cameroon’s Douala Port, according to a press release (pdf). The port giant will plan, construct, and operate the terminal, with construction slated to start this year and be completed in 2028. AD Ports is working with the Port Authority of Douala on the project, which marks a major expansion of its footprint in Cameroon.

Douala? Handling about 80% of the country’s bulk cargo and 85% of national trade volumes, Douala is Cameroon’s largest maritime gateway. It acts as a transit point for landlocked markets in Central Africa.

The ownership structure: The ADX-listed operator, along with two other unspecified UAE investors, will have a 60% stake in the eventual firm operating the port. Africa Ports Development, which previously inked a concession agreement for construction of a terminal at Douala, will take the remaining 40% stake. The structure gives AD Ports 51% effective interest, the statement said.

AD Ports expects to commit around AED 320 mn for the first phase. The initial build-out will include two berths and about 450 meters of quay wall, designed to handle roughly 4 mn tonnes of cargo a year including clinker, gypsum, fertilizer, and grain.

Why it matters

The move builds on the firm’s expansion in Africa — adding to its existing logistics portfolio in Egypt, Angola, Tanzania, and the Republic of Congo. Just this month, it agreed to explore developing and operating a multipurpose terminal at Matadi Port — the Democratic Republic of Congo’s (DRC) primary Atlantic gateway — as it looks to deepen its footprint in the continent.

XRG inks JDA for Argentina’s LNG

Adnoc’s International investment arm XRG, Argentina’s YPF, and Italy’s Eni will start front-end engineering design and related work for an Argentina LNG project under a joint development agreement, according to a statement from Eni. The move steps up the non-binding agreement inked back in November to explore joining the venture.

The total financing needed for the project is pegged at USD 12.5 bn, according to Reuters ’ earlier reporting. The next milestone is lining up offtake and financing, clearing the path for a final investment decision.

The plan: The project is set to export gas from the Vaca Muerta formation, the world’s second-largest unconventional natural gas reserve, through a pipeline, and will involve the installation of liquefaction units. The initial phase of the project is expected to deliver 12 mn tonnes per annum (mtpa) of LNG production capacity through two 6 mtpa FLNG vessels.

Could we see another Latin American move? Bloomberg previously reported that Adnoc is considering a potential entry — via XRG — into Venezuela’s oil market through a partnership with another international energy firm, though any move would depend on clear regulatory and financial structures for investments in the country and coordination with the US.

Organic growth powers Presight, but M&A is now in focus

Presight’s 4Q growth holds as mix shifts: AI-powered data analytics firm Presight AI Holding reported net income after tax of AED 345.5 mn in 4Q 2025, up 5.6% y-o-y, on revenue of AED 1.3 bn, up 23.6%, according to its management discussion and analysis report (pdf) and earnings release (pdf). EBITDA rose 11.3% to AED 407.6 mn as margins narrowed on a shift in its deployment mix.

FY revenue also outpaces bottom line: For 2025, net income increased 8.6% y-o-y to AED 665.5 mn, while revenue climbed 36.9% to AED 3.0 bn. On a comparable 9% tax basis, earnings would have grown 16.7%, underscoring the impact of the UAE’s new 15% corporate domestic minimum top-up tax. Full-year EBITDA margin eased to 25.9% from 28.7% a year earlier.

What’s squeezing margins?

Scale is the short answer: “What was historically a software-led business is now evolving into a broader platform deployment,” Senior Director of Investor Relations Roger Tejwani told EnterpriseAM UAE, referring to AIQ, Adnoc’s AI joint venture with G42, in which Presight acquired a 51% stake for USD 350 mn in June 2024. The rollout of AIQ’s multi-year ENERGYai platform for Adnoc includes infrastructure and professional services alongside software, weighing temporarily on margins during the deployment phase — with additional drag from lower interest income and the higher tax rate, he said.

AIQ also now accounts for a quarter of earnings: AIQ contributed 27.4% of 4Q revenue and 33% of quarterly EBITDA, cementing its weight in group results.

But the focus is on diversification: While energy remains central, Tejwani stressed diversification beyond legacy mandates, saying that the company is “broadening its portfolio both domestically and internationally,” pointing to new engagements in Indonesia, Colombia, and adjacent robotics-linked applications — moves that help mitigate vertical concentration risk as the energy platform scales.

International momentum builds

International revenue keeps climbing: Revenue from outside the UAE surged 130% y-o-y to AED 1.2 bn, representing 38.5% of total revenue, up from 23.0% a year earlier. In 4Q alone, international revenue accounted for 46.5% of the total, up from 37.1% in 2024.

This isn’t one-off growth: Some 93% of 2025 revenue came from multi-year contracts. Tejwani noted that early international mandates signed in 2021 are entering renewal phases, where infrastructure is already deployed and revenue becomes more software-weighted, meaning the mix “tends to be more favorable.”

Continued expansion into markets including Malaysia, Azerbaijan, and Tajikistan suggests margin normalization will come — but gradually, Tejwani said.

Execution and capacity

Backlog keeps pace with execution: Presight secured AED 3.4 bn in new orders in 2025 and ended the year with a backlog of AED 3.4 bn as well, up 13% y-o-y and effectively replenishing what it delivered.

Management doesn’t see a delivery ceiling: Headcount has expanded from roughly 250 at IPO to more than 800 employees, largely technical. While hiring and research investment will continue, Tejwani indicated the pace will moderate as platforms become increasingly repeatable across jurisdictions.

Looking ahead

Guidance lifted on organic strength: Presight upgraded its outlook through to 2029, guiding for 20-25% annual revenue growth and 21-26% annual earnings growth. Management stressed the targets are organic and exclude acquisitions, supported by backlog depth and international momentum.

M&A is in focus going forward. With AED 2.2 bn in banknotes and no debt, capital allocation is tilting toward acquisitions. The company has reviewed 80-90 potential investments over the past 12-18 months but is staying selective in light of elevated AI valuations and rapid technology cycles, according to Tejwani.

Orascom, Taqa, Emaar, e&, Adnoc Drilling, Dubai Taxi turn in earnings

Taqa maintains net income growth despite oil and gas revenue dip

Taqa’s revenues fell flat in 2025 at AED 54.8 bn, as growth in its utilities business helped offset a decline in oil and gas revenues, and net income grew 5.6% y-o-y to AED 7.5 bn, according to its management discussion and analysis report (pdf). The decline in oil and gas revenues came amid lower oil prices and the halting of oil production at several UK facilities.

On a 4Q basis, net income grew 84.9% y-o-y to AED 1.4 bn, while revenues inched down 9% to AED 12.1 bn.

Taqa’s global generation capacity also hit more than 70 GW by the end of the year, with renewables accounting for 64% of capacity. The company has a goal of achieving 150 GW of gross power capacity by the end of the decade — two-thirds of which should be from renewables.

Adnoc Drilling closes another record year

Strong local demand and international expansion underpins record year for Adnoc Drilling: Adnoc Drilling’s net income rose 6% y-o-y in 4Q 2025 to USD 389 mn, as performance throughout the year was driven by solid growth in its drilling and oilfield services segment and strong demand for its onshore services, according to its earnings release (pdf). On a full year basis, the company’s revenues grew 22% y-o-y to USD 4.9 bn, while net income grew 11% y-o-y to USD 1.4 bn.

The company also expanded its global footprint during the year, acquiring Oman’s MB Petroleum Services and closing its JV with Schlumberger Middle East in Kuwait and Oman, helping unlock new earning streams, the company said.

Dividends: The company will pay out USD 250 mn in dividends in April, bringing the year’s total dividends to USD 1 bn.

Momentum and high handover volumes boost Emaar earnings

Emaar Properties reported AED 17.6 bn in 2025 net income attributable to shareholders, a 30.2% y-o-y increase, according to the company’s financials (pdf). Revenues were up 39.6% y-o-y to AED 49.6 bn, reflecting higher property handovers and sustained momentum across the group’s diversified portfolio.

Emaar’s property sales were up 16% y-o-y to more than AED 80 bn in 2025, supported by demand for homes in flagship master-planned communities, including Dubai Hills Estate, The Oasis, and Dubai Creek Harbour. The group’s revenue backlog from property sales reached AED 155 bn, including joint ventures, providing strong visibility on future earnings and cashflows.

Recurring revenue businesses: Spanning retail, hospitality, and leisure, the sector rose by more than 13% to AED 10.5 bn, benefiting from higher footfall, improved hotel performance, and the resilience of Dubai’s tourism and retail sectors. Strategic investments also supported growth, including the ongoing expansion of Dubai Mall and the addition of three new hotels with more than 750 keys during the year.

Emaar sees the “structural strength” of the UAE’s real estate sector and Dubai’s appeal as a global investment and lifestyle destination as underpinning a positive outlook for 2026. Growth is expected to be supported by population expansion, strong investor confidence — particularly in the luxury segment — and ongoing digital transformation initiatives, the company said.

e& records 33.6% growth in FY 2025 net income

Emirates Telecommunications Group (e&) posted AED 14.4 bn in 2025 net income, up 33.6% y-o-y, according to its preliminary financials (pdf). Revenues rose 23.1% to AED 72.9 bn, with the company attributing the top-line rise to growth across all its verticals. In the UAE, performance was supported by bundle offerings, network quality, customer experience, and macro conditions. Internationally, expansion was driven by the consolidation of e& PFF Telecom group, growth in its Egypt and Pakistan markets, and appreciation of Morocco’s MAD against the AED.

Dubai Taxi sees a 13% revenue surge from fleet expansion and tourism growth

A bigger fleet and more demand boosted Dubai Taxi Co’s 2025 financial results, with the firm’s net income rising 7.5% in 2025 to AED 356.1 mn, according to its preliminary financials (pdf). The bottom-line growth was supported by a 12.6% y-o-y hike in revenue, climbing to AED 2.5 bn, as the company capitalized on the emirate’s rising population growth and record tourism. The group’s performance was also underpinned by an expanded fleet, which led to an increase in total trips during the year. Its balance sheet also strengthened, with total assets rising to AED 2.4 bn.

Orascom Construction sees growth in FY2025 net income, with USD 9 bn in backlog

A strong 4Q boosted ADX and EGX-listed Orascom Construction’s 2025 results, with a 74.1% y-o-y uptick in final quarter revenues to USD 1.6 bn, bringing its full-year top line to USD 5.1 bn — a 55.4% y-o-y increase, according to its preliminary financials (pdf). Net income leapt 65.3% y-o-y to USD 195 mn in 2025, driven by robust margins and improved performance across all business segments.

US project awards boosted the new pipeline last year, with Orascom inking USD 3.5 bn worth of awards across the pond — primarily for the data center sector. Closer to home, it secured USD 2.1 bn in new projects. Regional activity was the main top line driver, accounting for 57% of total revenues this year. Orascom’s backlog stood at USD 9 bn at the end of the year, up 18.9% from the year before.

Several acquisitions in the works, a new BlueFive subsidiary, CBUAE and Hong Kong link up, and RAK gets a new AED 25 bn development

Bluefive Capital turns to Oman, aircraft, and a USD 1 bn fund

Bluefive Capital launches aircraft leasing unit in Muscat: Abu Dhabi-based private equity firm Bluefive Capital rolled out a Muscat-based aircraft leasing and asset management platform, Bluefive Leasing, in partnership with an unnamed Omani sovereign institution, according to a press release. The venture is one of the first dedicated aircraft leasing entities in the GCC and aims to capitalize on rising air travel demand across the region.

The details: The platform will manage a diversified portfolio of narrow-body and wide-body aircraft. Fundraising for its first investment vehicle, BlueFive Wings Fund I, is targeting over USD 1 bn for commercial aircraft assets. The platform will be based out of its new Oman office, which was established in October.

Ascentium acquires ADGM-licensed Clara

Legaltech startup Clara gains international market access via Ascentium: Singapore-based business services platform Ascentium acquired ADGM-licensed legaltech startup Clara, according to a press release. The acquisition significantly expands Ascentium’s foothold in the Middle East, providing global businesses with a gateway to the region through Clara’s ADGM and DIFC footprints.

And for Clara: With Ascentium’s platform, Clara gains access to a significantly expanded international market of over 60k clients. It’ll also get an operational leg-up, boosting its core offering of providing regulatory expertise to SMEs, government-related entities, VC firms, and investors.

Singapore’s CapitaLand Investment rolls out a DIFC office

Another asset manager plants its flag in DIFC: Singapore-based asset manager CapitaLand Investment (CLI) is launching a new office in Dubai International Financial Center (DIFC), according to a press release. The new outpost looks to extend the firm’s investment advisory services to institutional clients in the UAE, managing diverse asset classes across logistics and industrial, lodging and living, offices, and data centers.

UAE links into Hong Kong’s bond plumbing

The Central Bank of the UAE (CBUAE) has joined Hong Kong’s Central Moneymarkets Unit (CMU) — the city’s central securities depository for debt instruments — linking the UAE more directly to Chinese mainland bond markets, state news agency Wam reports.

Why it matters: The CMU clears and settles fixed-income securities and anchors Hong Kong’s offshore RMB-denominated infrastructure, making it a key gateway into China’s debt markets. The connectivity gives UAE-based investors “more direct and cost-effective access” to Chinese mainland capital markets and financial assets, Reuters cites the Hong Kong Monetary Authority (HKMA) as saying.

More in the pipeline: The move follows wider discussions between the CBUAE and HKMA covering cross-border debt connectivity, digital assets and tokenization, central bank digital currencies, stablecoin regulation, and supply chain finance.

Beyond brings AED 25 bn build to RAK

Dubai-based real estate developer Beyond Developments is launching an AED 25 bn mixed-use project in Ras Al Khaimah’s Marjan Beach named Evermore, according to a press release. The firm is working with state-backed developer Marjan on the plan, which the latter said would be the second-largest project in its portfolio.

The details: Beyond — which is part of development group Omniyat — says the build’s total value will come in at upwards of AED 25 bn and include over 7 mn sq ft of total floor area. The Evermore project will include residential, hospitality, retail, and leisure facilities.

MENA AI funding hits USD 858 mn in 2025, led by the UAE and Saudi Arabia

MENA AI venture funding climbed to USD 858 mn in 2025 as AI-native ventures dominated investments and Gulf markets anchored momentum, capturing 22% of total VC funding, according to a Magnitt report. AI-native firms — companies that embed AI in their core operations and framework — pulled in 69% of total AI funding, or USD 589 mn. AI-enabled ventures, which use AI as a tool to boost their systems, accounted for the rest, raising USD 269 mn.

The top players: The UAE captured 60% of the region’s total AI funding at USD 519 mn, a 267% surge y-o-y, with AI-native startups accounting for USD 392 mn. Saudi Arabia followed with USD 235 mn in investments, representing 27% of total AI funding and climbing 248% y-o-y, anchored by USD 170 mn in AI-native capital. Egypt raised USD 73 mn across 15 transactions, up 88% y-o-y and accounting for 8% of regional AI funding.

The sectoral breakdown: Sports and fitness topped AI funding, pulling in USD 250 mn — driven entirely by Xpanceo’s USD 250 mn Series A — and accounting for 29% of total AI investment. Fintech followed with USD 157 mn, up 198% y-o-y, while enterprise software attracted USD 104 mn, a 131% increase y-o-y. IT solutions raised USD 63 mn and real estate secured USD 56 mn, largely due to Nawy’s USD 52 mn Series A.

Deployments were balanced between early-stage ventures and more mature companies across the region, which is a sign of a maturing market that is looking towards larger ticket sizes and growing AI ventures but also maintains a focus on early-stage firms, Magnitt’s Research Department Manager Farah El Nahlawi told EnterpriseAM. Investment ticket sizes were varied, with AI transactions ranging from as low as USD 3 mn to Xpances’s USD 250 mn — a mix of large outliers and smaller rounds.

Case in point: Pre-seed and seed AI transactions rose 56% y-o-y to 117 transactions. Meanwhile, Series A activity scaled, with transaction count increasing to 10 from six and funding surging to USD 485 mn. This performance points to a maturing pipeline, involving a strong early formation alongside a growing cohort of AI startups advancing toward commercial scale.

Strong activity across every stage of the startup pipeline was Saudi Arabia’s main highlight this year, supporting a more resilient AI ecosystem, El Nahlawi told us. This is evidenced by a 79% surge in AI transaction volume (reaching 68 transactions) and widespread support for early and mid-stage companies.

Egypt’s AI sector is more skewed towards utility and addressing needs, El Nahlawi said. The country’s relatively smaller market size and liquidity constraints, compounded by currency and macro challenges, are making it a regional hub for applied AI. Funding is directed toward solutions that meet immediate demand, such as proptech and fintech, rather than areas with more uncertain growth.

What’s next? The AI and VC ecosystem outlook is positive for the UAE and KSA this year thanks to strong capital flows, sovereign support, and rising international interest, El Nahlawi told us. Despite risks from higher interest rates, weaker oil prices, and geopolitical tensions, current low rates and market optimism support growth. With regional AI funding up fivefold since 2021, continued investment and ecosystem development position AI as a pillar of the region’s venture growth in 2026.

MARKETS THIS MORNING-

Asian markets are mostly in the red, with AI jitters hitting US stocks also reaching sentiment in the region. Both Japan’s Nikkei and Topix fell around 0.6%, while Hong Kong’s Hang Seng is down 1.4% South Korea’s Kospi was the only outlier, adding 0.5%.

ADX	10,689	+0.3% (YTD: +7.0%)
DFM	6,715	+0.4% (YTD: +11.0%)
Nasdaq Dubai UAE20	5,552	+0.6% (YTD: +13.6%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	3.4% o/n	3.7% 1 yr
TASI	11,252	+0.8% (YTD: +7.3%)
EGX30	50,490	+1.6% (YTD: +20.7%)
S&P 500	6,833	-1.6% (YTD: -0.2%)
FTSE 100	10,402	-0.7% (YTD: +4.7%)
Euro Stoxx 50	6,011	-0.4% (YTD: +3.8%)
Brent crude	USD 67.52	-2.7%
Natural gas (Nymex)	USD 3.21	+0.3%
Gold	USD 4,936	-0.3%
BTC	USD 65,860	-1.5% (YTD: -25.8%)
Chimera JP Morgan UAE Bond UCITS ETF	AED 3.79	+0.3% (YTD: +3.3%)
S&P MENA Bond & Sukuk	152.37	-0.2% (YTD: +0.3%)
VIX (Volatility Index)	20.82	+18% (YTD: +38.9%)

THE CLOSING BELL-

The ADX rose 0.3% yesterday on turnover of AED 1.3 bn. The index is up 7.0% YTD.

In the green: Ins. House (+14.9%), Aldar Properties (+5.5%), and Americana Restaurants International (+5.3%).

In the red: Hayah Ins. (-7.1%), Fertiglobe (-3.2%), and AD Ports Group (-2.9%).

Over on the DFM, the index rose 0.4% on turnover of AED 653.7 mn. Meanwhile, Nasdaq Dubai was up 0.6%.

CALENDAR

FEBRUARY

Signposted to happen sometime this month: Investopia, Lagos, Nigeria.

11-13 February (Wednesday-Friday): MedTech World Middle East, Dubai.

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

17-19 February (Tuesday-Thursday): First day of Ramadan.

MARCH

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

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

28-29 March (Saturday-Sunday): Emirates International Congress on AI & Visionary Leadership in Transforming Healthcare, Adnec Center Abu Dhabi.

30 March – 2 April (Monday-Thursday): IAAPA Middle East Exhibition and Conference, Adnec Center, Abu Dhabi.

31 March-2 April (Tuesday-Thursday): Investopia 2026, Abu Dhabi.

APRIL

7-9 April (Tuesday-Thursday): Future Health Summit, Adnec Center Abu Dhabi.

13-15 April (Monday-Wednesday): AIM Congress, Dubai World Trade Center.

13-15 April (Monday-Wednesday): The International Glass Manufacturing Show, Dubai.

14-16 April: (Tuesday-Thursday): the International Property Show, Sheikh Zayed Rd, Dubai.

21-23 April (Tuesday-Thursday): UITP Public Transport Summit, Dubai.

MAY

4-8 May (Wednesday-Saturday): Make It in the Emirates, Adnec Center, Abu Dhabi.

11-15 May (Monday-Friday): Dubai Future Finance Week, Dubai.

11-13 May (Monday-Wednesday): AI Everything Global, Adnec Center, Abu Dhabi.

12-14 May (Tuesday-Thursday): Airport Show, Dubai World Trade Center, Dubai.

19-20 May (Tuesday-Wednesday): Capital Market Summit, Madinat Jumeirah, Dubai.

19-22 May (Tuesday-Friday): Abu Dhabi Water and Energy Week, Adnec Center, Abu Dhabi.

JUNE

3-4 June (Wednesday-Thursday): Annual MENA Investor Conference, Ritz-Carlton DIFC, Dubai.

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

JULY

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 sometime in October 2026:

Abu Dhabi Space Week, Abu Dhabi.

NOVEMBER

9-10 November (Monday-Tuesday): Annual government meetings, Abu Dhabi.

OCTOBER

4-10 October (Sunday-Saturday): World Space Week, Abu Dhabi.

DECEMBER

2-4 December (Wednesday-Friday): UN Water Conference, UAE.

Signposted to happen in 2026:

The UAE to host the Arab Competition Forum;
Investopia Global Talks, Tashkent.

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;

1-3 February (Monday-Wednesday): World Governments Summit.
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 in 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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