Good morning, everyone. While Ramadan has slowed things down — somewhat — in our neck of the woods, the international news flow isn’t stopping. In another development in the Gaza reconstruction plan, the UAE is reportedly providing the funding for a housing compound to be built for displaced Palestinians in Gaza.

Meanwhile, on UAE soil, India’s Zoho is looking to expand its UAE data center presence, Edge is partnering with a Spanish player to localize weapons production, and CBUAE is setting up a sovereign financial cloud for the banking system.

ALSO- The US implemented its 10% global tariff on Tuesday, a few days after US President Donald Trump said he plans to hike it to 15%. It’s not clear whether he still plans to raise the rate, but the 10% tariff is now in effect for 150 days as of Tuesday.

REMEMBER- The UAE wouldn’t need to be too worried about the possibility of a higher 15% tariff, with analysts saying it would have limited impacts, any of which would be indirect. The UAE’s logistics, re-export, and value-added hub status means it is not as reliant on exports to a specific country (particularly the US) as others are. Plus: Its Cepa run, which has seen it ink dozens of trade and economic partnership agreements, is set to continue, with a potentially bigger focus on Asia and Africa.

WEATHER- Expect a slightly cooler day today, with the mercury peaking at 28°C in Dubai and Abu Dhabi, while Dubai will see a low of 20°C and the capital will see a low of 18°C.

Watch this space

BANKING — The UAE is putting its banking system on its own cloud: The Central Bank of the UAE is building what it describes as the world’s first sovereign financial cloud — a digital infrastructure designed specifically for the country’s licensed financial institutions, according to a press release (pdf). The regulator is partnering with G42’s subsidiary Core42 on the ecosystem, which will integrate advanced analytics and workflow automation, and will keep financial data within a dedicated, isolated environment under a nationally governed framework.

The why: The central bank says the system is designed to strengthen data sovereignty, tighten cyber resilience, and give institutions a cleaner way to manage multiple cloud services under one structure.

AIRPORTS — Dubai will start screening microbes alongside luggage: A consortium led by the University of Birmingham Dubai secured a AED 1.5 mn Dubai research, development, and innovation grant to deploy AI-driven metagenomic surveillance at DXB, aiming to detect emerging microbial and antimicrobial resistance threats before they spread, according to a press release.

How it works: The project, Prevent-DXB, will analyze samples from airport surfaces, air, and wastewater, feeding genomic data into predictive AI models to flag high-risk patterns early. No rollout timeline was disclosed.

Why DXB? As one of the world’s busiest travel hubs, DXB is a natural gateway for fast-moving pathogens — making it a high-stakes testbed for shifting from reactive outbreak response to predictive biosecurity, the statement said.

AI — From compute to consulting for G42: Abu Dhabi-based AI heavyweight G42 signed an MoU with global digital transformation firm Publicis Sapient — the tech and consulting arm of France’s Publicis Groupe — to explore launching an AI-first services joint venture targeting the UAE and the Global South, according to a statement. If finalized, the JV is slated for launch by mid-2026.

AI-first services? The idea is to combine G42’s sovereign AI infrastructure and foundation models with Publicis Sapient’s enterprise platforms, including Sapient Slingshot and Sapient Bodhi, to move clients from AI pilots to scaled deployment. The scope spans cloud modernization, intelligent agents, and embedding AI into day-to-day operations rather than leaving it in experimentation mode.

TECH — More UAE-US cooperation in the cards: Foreign Minister Abdullah bin Zayed met US Commerce Secretary Howard Lutnick in Washington to deepen trade cooperation, with advanced tech and AI high on the agenda, state news agency Wam reports. The talks included collaboration under the US-led Pax Silica initiative — which the UAE joined in January — focused on securing supply chains for silicon and critical minerals critical to chips and advanced computing.

The meeting builds on a more concrete step for Pax Silica earlier this month: As we’ve noted, the UAE and the US signed a critical minerals framework to fast-track projects from extraction to advanced manufacturing, with financing expected within six months. The broader aim is sustained sector alignment — already helping clear the way for G42 to secure 35k Nvidia Blackwell chips for infrastructure projects, including the planned 5 GW UAE-US AI campus in Abu Dhabi, even as Washington tightens scrutiny over tech supply chains.

Data point

29% — that’s the y-o-y rise in the number of economic licenses registered with the Abu Dhabi Registration Authority last year, according to Abu Dhabi Media Office. More companies are also staying put in Abu Dhabi, with license renewals up 20% y-o-y and total active licenses up 13.5%.

The growth was broad-based: Industrial licenses increased by 20%, followed by tourism at 10%. Professional and commercial licenses saw 28% growth each, while agriculture-related activities grew 12%. Geographically, license numbers were up 31% in Abu Dhabi city, 29% in Al Ain, and 16% in Al Dhafra.

The big story abroad

A single story is dominating headlines this morning: Nvidia’s latest earnings came in above analyst expectations, calming investor fears about a potential AI slowdown. The most valuable company in the world reported record revenues of USD 68.1 bn for the three-month period ending in January, up 73% y-o-y, driven by data center revenues.

Looking ahead: The company penciled in USD 78 bn in sales this quarter, excluding any income from China data centers, as the company remains unsure whether it will be able to do business in the country.

Markets reax: Nvidia shares gained 3% in after-hours trading following the news, pushing Wall Street up. “It’s clear from Nvidia’s latest numbers and [investors’] forecast that concerns about an AI slowdown simply are not showing up yet,” TECHnalysis Research’s Bob O’Donnell told Reuters.

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Market watch

Opec+ is looking into raising its oil output for April by 137k bbl / d, a move that would end the pause in output hikes that the group stuck to for 1Q of this year, Reuters reports, citing sources it says are familiar with the matter.

What this means: An output hike would allow producers like the UAE and Saudi Arabia to regain market share, as other countries like Russia and Iran contend with US sanctions.

ICYMI- Earlier this year, Opec+ stuck to its policy of delaying another output hike until the second quarter. The group had agreed to increase production by 137k bbl / d in October, November, and December last year, before pausing in the new year. The 1Q 2026 pause gave the group around 1.2 mn bbl / d to restore from its current supply tranche.

Any output hike would come amid uncertain international demand. The International Energy Agency has recently cut its 2026 global oil demand growth forecast by 80k bbl / d to 850k bbl / d, citing higher oil prices and economic uncertainty. Opec+ was more optimistic, penciling in a 1.38 mn bbl / d rise for this year, though it also predicted softness in near-term demand.

Saudi Arabia is already making contingency plans, activating a short-term production hike in anticipation of US-Iran tensions causing market disruption.

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