Al Ruwais gets hit

1

WHAT WE’RE TRACKING TODAY

THIS MORNING: Markets close in green for first time since war began + Logistics giants launch land bridge to bypass port disruption

Good morning, everyone. Despite US President Donald Trump signaling the war will end “very soon,” and the Emirates seeing the volume of attacks slow down, the country yesterday took a hefty hit after Iran struck Adnoc’s main oil refinery, halting operations.

In other not-so-good news, Oxford Economics is the latest to shave off a few percentage points from our economic growth forecast due to its exposure to ongoing disruptions in the Strait of Hormuz and an expected hit to tourism.

We still have some bright spots to cover, with the DFM and ADX closing in the green yesterday for the first time since the war began, and DP World and AD Ports setting up land bridges to bypass the ongoing disruptions at the Strait of Hormuz.

Other players are also showing optimism, with Azizi Developments set to invest AED 75 bn in developing hotels (primarily in Dubai), Adia doubling down on follow-on investments, and ICICI Prudential Asset Management opening its new DIFC office.

PLUS- Fitch Solutions’ BMI sees the government stepping in to prop up the retail sector should consumer confidence take a hit and tourism inflows decline, as is expected.

UAE markets closed in the green yesterday for the first time since the start of the war, with the DFM rising nearly 2% and the ADX gaining 1.4%. This comes after a rocky start to trading for both indices after a two-day suspension last week to ease the impact of the war, which saw the DFM lose more than 11% from its last close before the war, and the ADX fall around 5.7%.

“We believe that the market may be reassessing the risk premium assigned to the [banking sector], leading to the recent correction,” Chiro Ghosh, head of research at Sico, tells EnterpriseAM. He cautioned that an increase in delinquencies could emerge in segments tied to real estate, tourism, and hospitality.

Real estate stocks continued to weigh on the ADX with a 3.5% decline, but utilities (+4.51%), healthcare (+3.12%), and technology (+2.97%) helped drive gains.

Dubai’s rally was driven primarily by financials (+5.60%) and consumer discretionary (+5.64%), while real estate (-2.29%) remained under pressure. Emaar is now down 22.7% for the month and 9.3% YTD.

Watch this space

TOURISM — The UAE is among the MENA countries most exposed to a hit to its tourism sector from the regional war, with Dubai especially vulnerable due to its proximity to Iran and reliance on international visitors, according to Capital Economics’ MENA Economics Update (pdf). History shows that crises can wipe out 30-40% of arrivals, sometimes more, and recovery often takes years.

IN CONTEXT- Tourism is a top contributor to the Emirates’ economy, bringing in AED 257.3 bn in 9M 2025, or about 13% of output.

Some comfort comes from intra-GCC travel, which makes up 27% of Gulf tourism and could help cushion declines. The UAE’s strong balance could also absorb short-term shocks, though the conflict still threatens the sense of safety that could impact the Gulf’s long-term tourism hub ambitions.

TECH — The Central Bank of the UAE reportedly granted banks short-term permission to run key cloud functions through overseas data centers following the recent disruption to local server infrastructure, The Banker reports, citing local sources.

REMEMBER- A series of drone strikes last week hit two Amazon Web Services (AWS) data centers in the UAE and one in Bahrain, causing structural damage. Several local banks were impacted by the outage, including Abu Dhabi Commercial Bank, Emirates Islamic, and First Abu Dhabi Bank.

The decision is a rare move, effectively signaling that CBUAE is doing emergency plumbing in a market where data residency is usually a hard rule.

Meanwhile, hyperscalers are reportedly rerouting Gulf data traffic eastward: The escalating war has reportedly prompted hyperscale cloud providers like AWS and Microsoft Azure to begin redirecting data center workloads from the UAE and Oman to India and Singapore, The Economic Times reports, citing unnamed sources. To maintain the low latency required for critical traffic, especially banking, companies are reportedly securing immediate capacity in Mumbai, Chennai, Hyderabad, and Kochi.

LOGISTICS — DP World launches a bonded land bridge to bypass port disruptions: DP World enacted a temporary contingency arrangement to allow customers to reroute import containers from Khorfakkan and Fujairah ports to Dubai’s Jebel Ali via bonded road transit, according to a statement. Under the new system, DP World will coordinate the trucking movement of both import and freezone shipments to ensure cargo continues to flow despite the current regional situation. Final customs clearance and duty payments on the goods will remain centralized at Jebel Ali.

So did Abu Dhabi Ports, which yesterday shared a notice (pdf) informing its customers of the temporary operational arrangement allowing them to reroute containers from Khorfakkan and Fujairah ports to Abu Dhabi’s Khalifa Port through customs bonded transit by truck or rail.

Why this matters: The UAE is using its internal road infrastructure to minimize trade disruptions. By moving goods under bond, DP World allows companies to offload cargo at the country’s eastern ports — just outside the Strait of Hormuz — while maintaining the administrative and customs convenience of Jebel Ali.

Alternative gateways are emerging through the haze: Oman’s Salalah port remains a key safe transshipment hub as it sits outside the strait — Maersk and Hapag-Lloyd continue to call at Salalah, despite dropping Jebel Ali.

REMEMBER- Major shipping giants MSC, Maersk, Hapag-Lloyd, Cosco, and CMA CGM have all suspended new transits in the Persian Gulf, diverting Gulf-bound vessels.

COMMODITIES — UAE cracks down on unjustified price hikes with AED 207k fines: The Economy Ministry has intensified market oversight in response to the ongoing regional conflict to maintain food price stability, the ministry said in a statement on X. These regulatory sweeps, averaging 700 per day, have identified 567 violations primarily involving unjustified price hikes. In response, authorities issued 449 warnings and imposed AED 207.3k in financial penalties on traders, suppliers, and retail outlets found in breach of consumer protection laws.

To mitigate supply chain risks, the ministry said it is using its international network of trade partners to secure essential imports and pivot to alternative markets, if needed. Consumers are urged to avoid hoarding and report excessive pricing.

Inflation watch

The UAE’s annual headline inflation climbed to 1.61% in November 2025, up from the 1.23% recorded during the same month last year, according to data (pdf) from the Federal Competitiveness and Statistics Center. The Consumer Price Index (CPI) hit 110.50 points.

Data breakdown: On a y-o-y basis, it was almost a broad-based growth with housing, water, and electricity leading the surge with 3.98%. Recreation and culture followed, jumping 3.51%, while household supplies rose 2.90%, and ins. and financial services went up 2.87%. Transportation (-1.42%) and textiles and clothing (-5.10%) were the only sectors that cooled down.

On a monthly basis: While the headline figure reflects a y-o-y increase, the monthly trend in November showed a slight deflationary cooling of 0.19% compared to October, primarily driven by a 2.57% drop in transportation costs and a 2.31% dip in clothing and footwear.

Oil watch

Following Monday’s drop, oil prices eased further yesterday after the Wall Street Journal reported that the International Energy Agency is considering releasing more than 182 mn barrels of oil to curb the surge in prices seen since the outbreak of the US-Israel-Iran war. A decision on the motion is anticipated today. The plan requires unanimous approval for immediate adoption, otherwise the process could be stalled.

Prices fell on the news, with Brent futures dropping 0.26% to USD 87.57 a barrel and West Texas Intermediate dipping 0.44% to USD 83.08.

This could be a double-edged sword for the UAE. By introducing artificial supply to the market, the IEA reduces the global sense of urgency, discouraging buyers from pursuing expensive Gulf oil during the war. At the same time, stable oil prices protect the long-term viability of the UAE’s broader economy, a big pillar of which is oil.

Data point

AED 73.2 bn — that was the value of residential sales in Abu Dhabi last year, after 22.4k homes changed hands, up 55% y-o-y, making 2025 the capital’s busiest year on record, according to Cavendish Maxwell’s latest market report (pdf). But this wasn’t just a volume story — transaction value climbed 70%, a sign that prices were rising almost as quickly as buyers were signing.

Off-plan stayed firmly in the driver’s seat, accounting for 71% of all transactions and AED 57.1 bn of total sales as developers kept demand humming with fresh launches, flexible payment plans, and incentives. The ready market was hardly quiet either, clocking 6.5k transactions worth AED 16.1 bn — evidence, as Director Andrew Laver puts it, of a “broad market base” rather than a one-track rally.

Apartments did most of the heavy lifting, making up two-thirds of all transactions, while prices rose 15.1% and rents climbed 12.5%, adding urgency for tenants deciding whether to keep renting or buy before the next renewal notice lands. Villas lagged slightly behind, with 12.2% yearly price growth and a more moderate 5.5% rental growth.

Supply is rising, but not fast enough to cool the mood: 15.9k units are due this year, though actual handovers are expected to come in lower at 6.5-9k units if recent delivery patterns hold.

PSA

Gov’t says this is no time for leisurely drone use: Due to ongoing hostilities and regional tensions, the General Civil Aviation Authority has issued a total ban on all drone operations and light sports aircraft across the UAE, effective immediately, according to a statement on X .

Scope of prohibitions: The ban covers all unmanned aerial vehicles, gliders, paragliders, and recreational and light sports aircraft. All previously issued flight permits are currently suspended. Any violation will be met with immediate judicial action.

Dubai is tightening building safety rules: A new law now requires building owners across Dubai — including in freezones such as DIFC — to secure a quality and safety certificate after completion, based on a full structural and technical inspection conducted by a licensed engineering office, according to Dubai Media Office.

In other words, compliance now stretches well beyond construction: Owners must fix defects flagged in inspections, keep up ongoing maintenance even after certification, and renew certificates every 10 years for buildings under 40 years old — or every five years once they cross that threshold. Dubai Municipality will also maintain a digital building database and can suspend permits, freeze transactions, or halt lease certifications until violations are corrected.

The penalty ladder climbs fast: Fines start at AED 100k and can reach AED 1 mn, with repeat violations within two years triggering penalties of up to AED 2 mn.

Despite regional airlines tentatively resuming operations, British Airways isn’t so sure. The carrier canceled all flights to Abu Dhabi until later this year, while journeys to Dubai, Amman, Bahrain, Tel Aviv, and Doha are paused until later this month, according to a post on X.

WEATHER- And yet more rain: Dubai could see another passing shower in the morning before sunshine reigns for the rest of the day, with the mercury reaching a high of 29°C and a low of 22°C. Over in Abu Dhabi, it’s a somewhat cloudy day with a high of 28°C and a low of 22°C.

The big story abroad

It’s another morning with the front pages all about the US and Israel’s continued campaign against Iran, which saw the most intense night of aerial bombardment on Tuesday. Earlier today, Iran retaliated by launching attacks on central Israel and US military sites in Bahrain.

That said, Washington urged Israel not to launch further strikes on Iranian energy facilities, especially oil infrastructure, three unnamed sources told Axios. The Trump administration reportedly argued that such attacks would harm the Iranian public and jeopardize future US cooperation with Iran’s oil sector post-conflict. Washington also cautioned that these strikes could provoke retaliatory strikes against Gulf allies and their own energy sites.

Meanwhile on Wall Street: Microsoft has cemented its support for Anthropic’s lawsuit against the Pentagon, arguing that moves to punish the AI startup would be detrimental to the broader US tech scene.

The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.

Subscribe here

***

You’re reading EnterpriseAM UAE, your essential daily roundup of business, economics, and must-read news about the UAE, delivered straight to your inbox. We’re out Monday through Friday by 7am UAE time.

EnterpriseAM UAE is available without charge thanks to the generous support of our friends at Mashreq and Hassan Allam Properties.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on UAE@enterpriseAM.com .

DID YOU KNOW that we also cover Egypt, Saudi Arabia, and the MENA logistics industry?

***

Circle your calendar

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

Al Ruwais gets hit

Another oil facility hit in the UAE: Adnoc halted operations at its Ruwais oil refinery — one of the world’s largest — following a drone strike that resulted in a fire at the Ruwais Industrial Complex, where the refinery is located, Bloomberg reports, citing people it says are familiar with the matter. Abu Dhabi authorities said they were trying to contain the blaze as of midday yesterday, according to a post on X. No injuries have been reported so far.

IN CONTEXT- The refinery is the UAE’s largest and the only one in Abu Dhabi, with a processing capacity of over 900k bbl / d of oil. The rest of the UAE’s refining capacity is located at the Enoc refinery in Dubai and smaller plants in Sharjah and Fujairah, which primarily process heavy crudes and fuel oil.

This follows a series of attacks last week and earlier this week on the Fujairah Oil Industry Zone.

The complex is also home to a host of Adnoc’s facilities, including those of chemical maker Borouge and fertilizer producer Fertiglobe. Adnoc is also currently building a massive LNG export terminal at the site. T’aziz — a JV between Adnoc and ADQ — is also developing a wider chemicals complex and transition fuels site there, which is expected to contribute some AED 183 bn to the economy — targeting 4.7 mn tons in annual capacity.

Iran’s drone strikes triggered a wave of energy asset disruptions across the Gulf last week, with Saudi Arabia temporarily suspending operations at its largest refinery and Qatar halting liquefied natural gas exports.

With ongoing disruptions and the Strait of Hormuz still closed, refineries might need to “reduce their production to the level required to meet domestic demand,” Justin Alexander, director of Khalij Economics and GCC analyst for GlobalSource Partners, tells EnterpriseAM.

Targeting oil facilities could also mean a slower recovery once the Strait reopens: “Any serious damage [to refineries] could impact the restart time to normal operations once the Strait reopens. The shut in of exports, beyond what can be piped or trucked to Fujairah, remains the main economic impact from the war.”

The disruptions have already forced oil producers across the region to slash output — a move aimed at delaying a complete shutdown as storage fills up, Bloomberg reports, citing a person it says is in the know. Meanwhile, Adnoc said it was “managing offshore production” due to storage constraints while still using export capacity that bypasses the Strait of Hormuz to continue exports, alongside its global storage network.

The UAE, Saudi Arabia, Iraq, and Kuwait are together estimated to have cut production by some 6.7 mn bbl / d — shaving around 6% off global oil supply, Bloomberg reports, citing people it says are familiar with the matter. The UAE reportedly cut some 500k-800k bbl / d, while Iraq trimmed 2.9 mn bbl / d, Saudi Arabia dialed back on 2.5 mn bbl / d, and Kuwait removed about 500k bbl / d off the market. For Saudi, the UAE, and Kuwait, that translates to roughly 20-25% below February output levels.

Aramco’s CEO is sounding the alarm: “While we have faced disruptions in the past, this one by far is the biggest crisis the region’s oil and gas industry has faced,” Aramco CEO Amin Nasser said during a conference call.

In less horrible news: The pace of attacks has continued to slow down, with nine ballistic missiles and 35 drones detected yesterday, according to a statement on X.

But disruptions in nearby waters are being reported: The UK Maritime Trade Operations (UKMTO) issued an emergency alert following a suspected attack on a bulk carrier 36NM off the coast of Abu Dhabi, it said in post on X. UKMTO authorities are currently investigating the event, which, if confirmed as an attack, would mark an expansion of maritime threat to the capital.

AND- Our overseas embassies are also being targeted: The Foreign Ministry said an Iranian drone struck its consulate in Iraqi Kurdistan’s Erbil, condemning the attack as an “unprovoked terrorist attack and a flagrant violation of international norms and laws,” according to a press release. The strike resulted in material damage, with no injuries reported.

Defense supplies are still coming in

Australia and the UK are sending defense equipment our way: Australia is sending an E-7A Wedgetail airborne surveillance aircraft and advanced medium-range air-to-air missiles, Prime Minister Anthony Albanese said in a presser (watch, runtime:15:03). Meanwhile, the UK has deployed military aircraft to provide “additional capacity,” operating alongside Emirati and French fighter jets based in the region.

A closer look: The Wedgetail, staffed by around 85 Australian Defense Force personnel, will operate in the Gulf for an initial period of four weeks to bolster airspace security and assist in the collective self-defense of Gulf nations, Bloomberg reports. The aircraft is set to be operational in the Gulf by the end of the week.

This follows help from France, which has stepped in with deployments to help intercept Iranian missiles, and South Korea, which also reportedly expedited the delivery of 30 Cheongung-II surface-to-air guided missiles to the UAE earlier this week, following an urgent request from Emirati officials.

Another growth forecast downgrade

Oxford Economics slashed our 2026 growth forecast by 3.2 percentage points as the escalating US-Iran conflict takes its toll on trade and tourism, according to a research note (pdf). The escalation of the conflict has triggered an effective closure of the Strait of Hormuz, upending the UAE’s status as a global trade and tourism hub, the note says.

How is the UAE uniquely exposed to the strait’s effective closure? As the region’s second-largest oil exporter, the UAE’s alternative Habshan-Fujairah pipeline can only handle an additional 400k bbl / d, leaving some 1.7 mn bbl / d of production without alternative routes — unlike Saudi Arabia, which can pivot up to half of its exports to Red Sea ports, the note explains. This logistical bottleneck, combined with a sharp decline in luxury goods spending and reduced consumer confidence, makes the UAE one of the primary drags on regional growth.

This downgrade follows a recent downward revision from S&P Global, which cut the UAE’s growth forecast by 2.5 pps to 2.2%. The agency also slashed Abu Dhabi’s expected growth rate to 2.2%, down from the 5.3% recorded in 2025.

The GCC at large

Oxford Economics trimmed the wider GCC forecast by 1.8 pps to 2.6%, citing “lower oil production exports, tourism, and domestic demand.” We saw the second largest downgrade in the region after Qatar, which saw its forecast revised down 7.25 pps.

Things could look up next year: While growth is expected to hit 2.3% in 2Q 2026, a gradual recovery is anticipated in the second half of the year, “before catch-up growth starts in 2027,” for which the growth forecast has been raised by 1 pp.

The tourism hit: The sector, which is a major non-oil contributor to regional growth, is expected to see a big hit this year, with passenger arrivals expected to decline 11% this year, down 19 pps from pre-war estimates, as airspace closures and security concerns halt the Gulf stopover model.

The inflation forecast: Annual GCC inflation is now expected to come in at 2.5% this year, up 0.2 pps from previous estimate. While governments are regulating prices for essentials (fuel, dairy, meat), the prices of non-essential goods are expected to rise due to supply shortages and the higher costs associated with rerouting cargo around the conflict zone.

Shopping might not keep pace in the wake of the war, but the gov’t could step in

If confidence wobbles, expect the government to act before shoppers feel it. Federal and emirate authorities are likely to step in if the conflict drag persists, using fiscal firepower to cushion retailers through direct support and subsidies for essential goods and services, according to an article from Fitch Solutions’ BMI. The agency is explicit that this will help largely mitigate short-term risks to retail.

Direct subsidies could be on the table: Any inflationary risks — which are possible due to rising shipping costs, delayed transport, and risk surcharges — will “likely be mitigated by intervention from the UAE government, which has substantial fiscal capacity to provide direct support to businesses and subsidize essential goods and services,” BMI says. How far they will go will depend on the duration and severity of the conflict, it added.

…as could be more incentives for expats: One of the biggest concerns for the retail sector is a softening of expat inflows due to the tarnishing of the UAE’s “safe-haven” appeal. But BMI expects policymakers to lean harder on the same toolkit used before — more visa liberalization, visible security spending, and lifestyle incentives to keep expat inflows steady.

Still, lower tourism footfall will be an issue: The UAE could lose around 5.9 mn tourists at the lower end of a projected 20-45% decline in footfall this year, and up to 13.3 mn at the higher end, potentially costing the economy mns of USD in lost tourist inflows — particularly impacting the luxury sector, which has been booming in recent years.

Our take

The initial consumer pullback and disruptions across stores — both physical and e-commerce — are hardly felt if you go for a stroll through the mall. Yes, some luxury stores temporarily shut and staffing thinned in the first days of strikes, but malls are near full capacity once again, Amazon operations have largely normalized, and the feared retail freeze has so far looked more like a brief interruption than a lasting pullback.

The trouble comes if shipping disruptions persist. While airspace disruptions have let up a bit, with airlines gradually bringing scheduled flights back, it’s still not at full capacity, and a prolonged war would mean significant delays in shipments and higher surcharges that are bound to be passed on to consumers.

Sidara completes Wood Group takeover after two-year pursuit

Our friends at Sidara have completed their takeover of Wood Group — a rare take-private of a UK public company by a privately-held UAE firm. The Dubai-headquartered planning, design, engineering, and project management giant closed its acquisition of Aberdeen-based John Wood Group for c.GBP 210 mn, after a nearly two-year pursuit.

By the numbers: The transaction makes Sidara one of the world’s largest privately held engineering and consulting businesses, with a combined workforce north of 55k professionals and revenues north of USD 8.5 bn — split as roughly 40% from North America and 20% from each of Europe, the Middle East and Africa, and Asia-Pacific.

Why it matters: The transaction gives Sidara a serious upgrade in energy and materials capabilities at a moment when Gulf states — Saudi Arabia in particular — are pouring capital into energy infrastructure, industrial buildouts, and decarbonization. Wood’s technical depth there makes it a strategic prize.

It’s not every day that a private company swallows a publicly listed one, rather than the other way around. Sidara Chairman and CEO Talal Shair called it “without a doubt the most ambitious venture in the history of Sidara, driving forward a long-term critical strategy of expanding and elevating our energy offering.”

Wood will retain its brand and operate as a standalone business within Sidara alongside Dar, Perkins & Will, TYLin, and Currie & Brown. Hat tip to our friend Nader Aboushadi (LinkedIn), Sidara’s group chief treasurer, who was instrumental in putting together the transaction and leading it to a close. Regular readers of EnterpriseAM will recognize Nader from his numerous appearances on our stage at various EnterpriseAM forums (read or listen, runtime: 45:58). We also caught up with him a little while back for our My Morning Routine column.

Adia ramps up exposure to follow-on investments with Ardian tie-up

The Abu Dhabi Investment Authority (Adia) is doubling down on the secondaries market, just as the market looks poised for a “reset.” An Adia subsidiary partnered with the French investment firm Ardian to roll out a new real estate secondaries platform, according to a press release. The platform aims to pursue prospects in the “current market environment,” where valuations are shifting, and liquidity is in higher demand. Adia declined to provide further details when we reached out.

Uh, Enterprise, what are secondaries? Think of it as a secondary market for “pre-owned” stakes in property funds. If an investor needs a quick exit — maybe to cover losses elsewhere or rebalance their portfolio — that’s where a buyer like the new Adia-Ardian platform steps in. The buyer usually gets the assets at a haircut, and the seller gets immediate liquidity. The global secondaries market is growing, after reaching a record USD 20 bn in 2025, the statement said.

The sovereign fund is ramping up its exposure to follow-on investments. Adia was an anchor investor in a USD 770 mn continuation vehicle (CV) for CDH Investments’ flagship fund in January. The fund also invested alongside PAI Partners in a single-asset CV for ice-cream company Froneri, and backed GL Capital’s CV for SciClone Pharma.

And Ardian? Ardian invests in private equity, real assets, and private credit, with 22 offices around the world, including in Abu Dhabi, according to its website. It manages or advises about USD 200 bn globally and is a leading player in the secondaries market, raising about USD 30 bn for a secondaries fund last year, according to a press release. It also has partnerships with Mubadala Investment on private asset investments.

Azizi to throw AED 75 bn at hospitality market despite hazy outlook

Azizi is doubling down on the country’s hospitality sector: Azizi Developments will invest AED 75 bn in developing 151 hotels through its subsidiary Azizi Hospitality, Khaleej Times reports. Over 90% of the new portfolio will be concentrated in Dubai, with some 60k rooms added to the emirate’s hospitality sector. Eight of the hotels are currently under construction, CEO Farhad Azizi said.

This investment plan comes as the UAE is bracing itself for a structural shock to its tourism industry. Inbound arrivals to the region are expected to contract by as much as 27% y-o-y this year, according to a research note from Tourism Economics seen by EnterpriseAM. Confidence in travel to the Middle East could remain weak through 2Q, even in a short-conflict scenario, with gradual improvement into 3Q.

REMEMBER- The developer has several megaprojects in the pipeline, including one of Dubai’s largest mixed-use community developments — worth AED 75 bn in value — and an AED 3 bn investment in a Dubai-based medical complex.

DP World taps new regional CEO for GCC

DP World names new GCC CEO: DP World ap pointed Ahmed Al Hassan (LinkedIn) as CEO and managing director for the GCC. Al Hassan will lead the group’s regional portfolio — including ports, terminals, logistics, marine services, and trade solutions. Al Hassan previously served as chief financial officer for DP World’s GCC business and earlier led finance for the company’s Asia Pacific operations.

The ports giant recently shuffled its leadership team, appointing longtime executive Yuvraj Narayan as group CEO, with the former CFO stepping into the role after Sultan Ahmed bin Sulayem resigned.

Shorooq backs AMI Labs’ USD 1 bn funding round + ICICI Prudential Asset Management opens in DIFC

Shorooq backs high-profile AI startup founded by former Meta exec

Abu Dhabi-based investment manager and VC firm Shorooq Partners joined a high-profile roster of global investors pouring funds into AMILabs, the new AI venture from Meta’s former chief AI scientist Yann LeCun (LinkedIn), according to a press release (pdf). The startup closed a USD 1.03 bn round, valuing the company at roughly USD 3.5 bn pre-money. Shorooq did not disclose the size of its investment when asked by EnterpriseAM, but other big names including Nvidia and Bezos Expeditions were also involved in the funding round.

More on AMI Labs: The startup offers a range of AI solutions for different businesses, with its specialized areas including machine learning applications, predictive analytics, compute vision, and natural language processing. The startup uses “world model architectures,” which rely on spatial and real-world data as opposed to text and images, and have the potential to unlock more advanced reasoning and “shape the next generation of artificial intelligence systems,” Bilal Baloch, partner at Shorooq, told EnterpriseAM.

ICYMI- Shorooq said it was planning on increasing its AI investments this year. Its early 2026 moves include launching a USD 200 mn fund backed by the Qatar Investment Authority and choosing the first cohort for its USD 100 mn AI fund with Presight.

ICICI Prudential Asset Manager rolls out DIFC office

ICICI Asset Manager bridges India-GCC capital flows: ICICI Prudential Asset Management, one of India’s largest asset managers, rolled out its new office in Dubai International Financial Center (DIFC), targeting institutional and wealth investors across the GCC and Africa, according to Dubai Media Office. The new base will act as a hub for family offices, wealth funds, and private banks seeking exposure to Indian equities, fixed income, and multi-asset investments.

IN CONTEXT- The Middle East has been emerging as a hot investment base for India, bolstered by a raft of agreements inked earlier this year. The Abu Dhabi Investment Authority bought an undisclosed stake in ICICI Prudential Asset Management at the end of last year as part of a pre-IPO placement.

IMF warns Middle East conflict could add 40 bps to global inflation

The IMF is sounding the alarm on a potential oil-led inflation spike, with the Fund's Managing Director Kristalina Georgieva warning on Monday that a sustained 10% increase in oil prices throughout the year would result in a 40 bps rise in global inflation, Reuters reports. “We are seeing resilience tested again by the new conflict in the Middle East,” Georgieva said, urging policymakers to “think of the unthinkable and prepare for it.”

Oxford Economics also sees global inflation rising by 0.3-0.4% in 4Q 2026, accompanied by a 0.1 percentage point dip in global growth. While energy price trajectories remain volatile, Oxford Economics anticipates that Brent crude will average USD 79 / bbl in 2Q 2026 — a USD 15 upward revision from February estimates — before potentially retreating as supply conditions normalize, according to a report seen by EnterpriseAM.

The most exposed regions: The UK and the Eurozone, due to their exposure to gas prices. The agency sees rising energy prices pushing UK inflation up by 0.5 percentage points in 4Q compared to previous forecasts.

What’s the prognosis on rate cuts? The Bank of England will likely avoid cutting interest rates at its March meeting — or beyond if energy prices remain elevated for long — though rate cuts could resume in April or June if energy prices retreat quickly. In the Eurozone, the European Central Bank (ECB) is expected to maintain interest rates at 2% throughout the year. The ECB might raise rates by 25-50 bps if the energy shock persists.

As for the US Federal Reserve, Oxford Economics’ forecasts remain unchanged, pointing toward potential interest rate cuts of 25 bps in June and September, given the energy shock is less likely to impact inflation.

MARKETS THIS MORNING-

It’s another morning with Asia-Pacific markets opening in the green as oil prices dipped further on hopes that the International Energy Agency will release its largest-ever stock to keep prices under control. The Kopsi is leading gains, up 3.4%, with the Nikkei trailing behind.

ADX	9,997	+1.4% (YTD: 0.0%)
DFM	5,867	+2.0% (YTD: -3.0%)
Nasdaq Dubai UAE20	4,829	+2.0% (YTD: -1.2%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	3.3% o/n	3.8% 1 yr
TASI	10,930	+0.9% (YTD: +4.2%)
EGX30	47,773	+2.9% (YTD: +14.2%)
S&P 500	6,781	-0.2% (YTD: -0.9%)
FTSE 100	10,412	+1.6% (YTD: +4.8%)
Euro Stoxx 50	5,837	+2.7% (YTD: +0.8%)
Brent crude	USD 87.80	-11.3%
Natural gas (Nymex)	USD 3.05	+1.1%
Gold	USD 5,204	-0.7%
BTC	USD 70,056	+1.3% (YTD: -20.1%)
Chimera JP Morgan UAE Bond UCITS ETF	AED 3.68	+0.6% (YTD: 0.3%)
S&P MENA Bond & Sukuk	151.48	-0.2% (YTD: -0.3%)
VIX (Volatility Index)	24.93	-2.2% (YTD: +66.8%)

THE CLOSING BELL-

The DFM rose 2.0% yesterday on turnover of AED 4.1 bn. The index is down 3.0% YTD.

In the green: Ekttitab Holding Company (+14.7%), International Financial Advisors Holding Company (+13.7%), and Al Ramz Corporation Investment and Development (+13.3%).

In the red: BHM Capital Financial Services (-4.8%), Emirates REIT (-4.3%), and Emaar Properties (-4.1%).

Over on the ADX, the index rose 1.4% on turnover of AED 3.4 bn. Meanwhile, Nasdaq Dubai was up 2.0%.

UAE, Vietnam talk energy security + investments

UAE and Vietnam touch base on energy security: President Mohamed bin Zayed Al Nahyan and Vietnamese Prime Minister Pham Minh Chinh discussed expanding cooperation in energy security, trade, and investment on a phone call two days ago, Vietnamese state agency Voice Of Vietnam reports. Energy security featured prominently, with Al Nahyan saying the UAE is ready to support Vietnam’s immediate and long-term energy needs as both sides acknowledged the potential impact of the regional conflict on global supply.

The leaders also explored expanding economic ties, including potential investments in Vietnam’s planned international financial center and cooperation in high-tech industries, infrastructure, and logistics. They agreed to accelerate negotiations on a GCC-Vietnam trade agreement and work toward reaching USD 10 bn in bilateral trade.

BACKGROUND- Energy also came up in the UAE’s talks with Japan last week. During a visit to Tokyo, Industry and Advanced Technology Minister Sultan Al Jaber reaffirmed the UAE’s commitment to supporting Japan’s oil supply as concerns grow over disruptions in the Strait of Hormuz. He was quoted elsewhere saying there is little the country can do if the Strait of Hormuz continues to face disruption.

CALENDAR

MARCH

19-20 March (Thursday-Friday): Eid Al Fitr, public holiday.

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): Arab Media Summit, Dubai.

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

APRIL

6-9 April (Monday-Thursday): Dubai AI Week, Dubai.

7-8 April (Tuesday-Wednesday): Dubai AI Festival, Dubai World Trade Center, Dubai.

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

7-9 April (Tuesday-Thursday): Middle East Energy, Dubai World Trade Center, Dubai.

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): International Property Show, Sheikh Zayed Rd, Dubai.

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

28-29 April (Tuesday-Wednesday): Innovation Summit Middle East & Africa, Abu Dhabi.

29 April (Wednesday): Digital Transformation Summit, Sofitel, Abu Dhabi.

MAY

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

8-24 May (Saturday-Sunday): Dubai Esports and Games Festival, Dubai.

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

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

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.

20-21 May (Wednesday-Thursday): Arab Competition Forum, Dubai.

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.

OCTOBER

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

Signposted to happen sometime in October 2026:

Abu Dhabi Space Week, Abu Dhabi.

NOVEMBER

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

10-12 November (Tuesday-Thursday): Dubai International Electric Vehicle Exhibition & Conference, Dubai World Trade Center.

DECEMBER

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

Signposted to happen in 2026:

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 2028:

Artificial Intelligence Summit.

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.

Sections

About

Privacy & Support

Get EnterpriseAM daily

Al Ruwais gets hit

An independent publication supported by

Today at a glance

THIS MORNING: Markets close in green for first time since war began + Logistics giants launch land bridge to bypass port disruption

Related

This publication is proudly sponsored by

Al Ruwais gets hit

Related

Another growth forecast downgrade

Related

Shopping might not keep pace in the wake of the war, but the gov’t could step in

Related

Related

Sidara completes Wood Group takeover after two-year pursuit

Related

Adia ramps up exposure to follow-on investments with Ardian tie-up

Related

Azizi to throw AED 75 bn at hospitality market despite hazy outlook

Related

Related

DP World taps new regional CEO for GCC

Related

Shorooq backs AMI Labs’ USD 1 bn funding round + ICICI Prudential Asset Management opens in DIFC

Related

IMF warns Middle East conflict could add 40 bps to global inflation

Related

UAE, Vietnam talk energy security + investments

Related

CALENDAR

Related

About

Privacy & Support

My EnterpriseAM

Sign in

Check your email! We've sent you a magic link to sign in.

Sections

About

Privacy & Support

Get EnterpriseAM daily

Al Ruwais gets hit

An independent publication supported by

Today at a glance

Get Enterprise daily

Related

This publication is proudly sponsored by

Related

Related

Related

Related

Related

Related

Related

Related

Related

Related

Related

Related

CALENDAR

Related

An independent publication supported by

About

Privacy & Support

My EnterpriseAM

Sign in

Check your email! We've sent you a magic link to sign in.