A final push for Orascom’s OCI takeover

1

WHAT WE’RE TRACKING TODAY

THIS MORNING: UAE to begin talks to join CPTPP trade pact + e-invoicing’s pilot phase in starting

Good morning, friends. We hope the weekend treated you well — Friday's momentary panic notwithstanding.

About that panic: At 5:17pm on Friday, every phone in the UAE simultaneously received a missile threat alert, instructing residents to seek shelter immediately. Within minutes, the Interior Ministry sent an all-clear, before sending a third message asking everyone to disregard the previous warning. NCEMA later confirmed it was a “sudden technical malfunction in the early warning system.”

The sequence was, in that order, panic, relief, mild existential irritation. For a country that has intercepted thousands of missiles, drones, and cruise missiles over the past four months, the bar for what sends the heart rate up has dropped considerably.

It was a false alarm in the UAE, but Bahrain and Kuwait did see an escalation for the first time in weeks. Iran launched attacks against the countries and threatened a “complete halt” in negotiations to end the war if Washington continues its attacks on Iran. The US’ attacks came after Iran struck a commercial ship in the Strait of Hormuz for taking a route that it said was unsanctioned.

UAE Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan also took a call from Iranian FM Abbas Araghchi — a rare direct conversation that touched on the Islamabad MoU, Hormuz, and regional stability. It came days after Secretary of State Rubio landed in Abu Dhabi to reaffirm US security commitments.

But back to business… here’s what’s on our radar this morning: Nassef Sawiris is making a final push to break the OCI takeover deadlock. Nigeria has started drawing down the first tranche of a USD 5 bn facility from First Abu Dhabi Bank. Emirates NBD is raising USD 1.5 bn in a private placement. And the UAE’s e-invoicing pilot is officially live — something all businesses will need to keep an eye on.

Pilot phase of e-invoicing is here

E-invoicing is now in the pilot phase: The Finance Ministry and the Federal Tax Authority (FTA) launched the pilot phase for e-invoicing ahead of a wider rollout across the business community, according to a press release.

REFRESHER- The new system will apply to all B2B and business-to-government transactions, aiming to streamline invoicing processes to enable immediate exchanges and tax reporting to the FTA. Companies subject to the regime can now select accredited providers through the EmaraTax platform by 30 October, with the initial phase targeting businesses with annual revenues of AED 50 mn or more. Smaller firms and government entities will be subject to the new rules from next year.

DIVE DEEPER- Check out our explainer of the UAE’s upcoming phase-in of e-Invoicing. Voluntary adoption of the system will start in July 2026, followed by a hard mandate from January 2027 for businesses with annual revenues exceeding AED 50 mn. The requirement will include smaller firms in later stages.

UAE advances in push to join CPTPP trade pact

The UAE has moved a step closer to joining one of the world’s biggest trade blocs. Members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreed to kick off preparatory discussions with the UAE, opening the door to what could eventually become formal accession talks, according to a statement (pdf).

Next up, senior officials will launch preliminary discussions and report back to ministers. However, the process is still in its early stage, and any future accession would still require unanimous backing from all CPTPP members.

IN CONTEXT- The UAE has been on a drive in recent years to expand its trade ties, aiming to reach AED 4 tn in total foreign trade by 2031 after already hitting 75% of that target in 2024. The Emirates’ ever-expanding CEPA network has been a major driver of growth, with several agreements already secured so far this year, including with Ecuador, Nigeria, and the Philippines.

Carbon credit crunch to hurt Emirates most

A looming carbon credit shortage could cost Emirates USD 8 bn by 2035, wiping out a fifth of its 2025 operating revenue and hitting the carrier harder than any other airline, the Financial Times reports, citing a report by MSCI Carbon Markets. The carrier is likely to be the largest user of carbon credits owing to its focus on long-haul flights through Dubai.

A better-case scenario? While a surge in airline demand could drive carbon credit prices up eightfold to USD 100 a ton by 2035, a more optimistic outlook limits Emirates’ total compliance cost to an estimated USD 2 bn over the same period, MSCI said.

Data point

2.8k — that’s the number of new firms joining Sharjah Chamber of Commerce and Industry in 1H, according to state news agency Wam. The chamber recorded some 26.1k membership renewals across commercial, industrial, and professional sectors.

Trade ties with the Gulf remained particularly strong. Saudi Arabia retained its position as Sharjah’s largest export destination, with export and re-export activity to the Kingdom exceeding AED 1.5 bn during the period. Kuwait, Iraq, Qatar, and Ethiopia rounded out the list of the emirate’s top export markets.

PSA

Dubai is offering businesses a chance to wipe out most of their outstanding customs penalties. Under a temporary scheme introduced by Dubai Customs, companies can secure an 80% reduction on eligible customs fines issued before 28 February — part of a broader economic support package aimed at easing financial pressures on traders and keeping goods moving through the emirate, according to a notice (pdf) on its website. Companies must submit applications to Dubai Customs before 31 December, and the authority is offering the option to pay in installments for duties issued between the start of March and the end of July.

Refresher: Dubai has been on a run of trade-easing measures, including customs duty waivers as part of its economic support package, which extended data grace periods from 30 to 90 days and waived duties on art imports.

WEATHER- Another hot June morning: The mercury rises to 41°C today, with a low of 31°C in both Dubai and Abu Dhabi, according to our favorite weather app.

The big story abroad

The US and Iran have reportedly agreed (once again) to cease strikes, following a spate of attacks over the weekend, with the two sides planning to resume talks in Doha tomorrow to resolve their dispute over the Strait of Hormuz. Hostilities reportedly reignited over contradicting interpretations of the MoU signed by both sides earlier this month to secure an interim peace.

Meanwhile, sovereign funds may be getting bolder: One-third of sovereign funds surveyed by US investment management firm Invesco say they plan to double down on riskier, unlisted assets like private credit, private equity, and infrastructure this year — around one-fifth want to reduce exposure to stocks. The trend dovetails into the AI-led paradigm shift in investment, as lenders pivot from concentrated stock markets to wagering on data centers and associated energy sources.

But… is private credit on a stable path? Major private credit players like Blue Owl, KKR, and Elliot Investment Management are pumping USD bns into buy now, pay later (BNPL) models, providing a major windfall to platforms like PayPal. While the credit sector continues to swell on the back of BNPL, auto, and student loans, it has been seen by some as incentivizing a dangerous uptick in consumer debt — not unlike the levels seen before the 2008 mortgage crisis.

Is defense heading towards mass production? Because standard US munitions are both costly and slow to manufacture, some defense contractors are developing modular workshops to rapidly produce affordable missiles during wartime. Defense group Co-Aspire has designed missiles that can be built with off-the-shelf parts in a bid to capitalize on major order requests from big US spenders, the Pentagon and US Air Force.

***

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.

Were you forwarded this email? Tap or click here to get your own copy of EnterpriseAM UAE.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on [email protected].

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.

Egyptian b’naire Sawiris moves to break OCI take-private deadlock

Another push for Orascom’s OCI takeover: NNS Holding, the Cyprus-incorporated arm of Egyptian b’naire Nassef Sawiris’ family office — which backs ADX and EGX-listed Orascom Construction — intends to launch a voluntary allcash public offer for all of OCI Global’s issued and outstanding shares, according to a filing to Euronext Amsterdam. NNS says the offer is designed to break the deadlock over OCI’s proposed merger with Orascom Construction.

Take it or leave it: In a follow-up filing two days later, NNS confirmed EUR 4.10 is its final offer and signaled it would sell its own OCI stake if a third party came in with a bid that delivered more value to all shareholders. The price tag is an almost 2% premium to OCI’s Friday close of EUR 4.02, and values the firm at around EUR 866.6 mn.

REFRESHER- Orascom Construction and OCI Global have been trying to merge into what they're billing as "a global infrastructure and investment platform," based out of Abu Dhabi, with a USD 14 bn backlog. Orascom's shareholders gave its board the green light for the deal at the start of the year — but a Dutch court blocked OCI Global from voting on its own side, handing effective veto power to court-appointed independent board members who have sat on the decision ever since.

What’s happening as of now: OCI’s board — excluding Nassef and Nadia Sawiris, who sat out all deliberations — backs the offer, but said its support is conditional on the bid being combined with the Orascom Construction transaction. OCI’s board had previously concluded minority shareholders must keep the option to participate in the infrastructure-platform merger rather than be cashed out. The court-appointed independent board members, who have effectively held up the merger since January, have not yet said whether they support the offer.

The current ownership structure has Sawiris owning 49.21% of OCI Global, with the wider Sawiris family’s total holding coming in at 58.28%, leaving 41.72% in minority shares to bid for.

What’s next? NNS is set to file a draft offer memorandum with the Dutch financial markets watchdog next week, with the formal offer to follow shortly after approval.

Nigeria taps FAB for first USD 1.5 bn under USD 5 bn financing agreement

Nigeria has drawn around USD 1.5 bn from a proposed USD 5 bn financing facility with First Abu Dhabi Bank (FAB), Bloomberg reports, citing people familiar with the transaction. The first tranche was accessed over the past two weeks through a total return swap.

REFRESHER- Nigeria’s National Assembly approved the USD 5 bn facility in April. The six-year agreement is priced at 395-400 bps over SOFR and backed by collateral worth 133.3% of the financing, making it cheaper than Nigeria’s eurobonds, whose 2034 notes were yielding close to 8%.

What the money is for: Nigeria plans to refinance costlier debt and fund infrastructure as lower oil prices and USD demand tighten financing conditions.

But the structure is under scrutiny. Limited disclosure around the swap’s terms has raised concerns from the likes of the IMF and Fitch over fiscal risk and foreign exchange pressures.

That marks a different approach from FAB’s earlier Nigeria financing. Earlier this year, it underwrote USD 626 mn of a USD 1.1 bn facility with Afreximbank for part of the Lagos-Calabar coastal highway, using an ICIEC credit-ins. wrapper to reduce sovereign-risk exposure.

ENBD raises USD 1.5 bn in private issuance

Another private placement offering: Emirates NBD has raised USD 1.5 bn through a five-year senior unsecured bond in a private placement offering priced at 5.125%, Zawya reports. The lender had previously reopened the region AT1 market back in April, with orders of more than three times the issuance size signalling confidence in UAE capital markets which had seen a quieter-than-usual 1Q due to the regional war.

IN CONTEXT- The transaction isn’t the only recent pivot to private debt markets — Abu Dhabi turned to private debt placements earlier in April, raising USD 2.5 bn after the war with Iran triggered disruptions in public bond issuances and pushed issuers toward private funding.

BACKGROUND- It comes amid a recent rush back to debt markets in the UAE we’ve been tracking recently. First Abu Dhabi Bank has already raised USD 700 mn through a five-year sukuk in May, seen over EUR 1.1 bn in orders for its EUR 750 mn green bond earlier this month, and has been marketing fresh Tier 2 securities. Dubai Islamic Bank has already tapped debt markets twice this month.

It’s not just the lenders: ADX-listed healthcare provider Burjeel is moving ahead with its debt sukuk after hitting pause on a benchmark-sized five-year Reg S senior unsecured issuance in April after the war pushed spreads wider.

More to come? Analysts previously told us that Gulf firms and sovereigns were making a cautious return to debt markets and penciled in a continued uptick in activity for June before the summer lull. Spreads for investment-grade names were already back at pre-war levels, they told us, despite there still being a premium for some banks and real estate players.

ADVISORS- ENBD and JPMorgan were joint bookrunners for ENBD’s latest issuance.

RTA links up with Chinese players + Abu Dhabi partners with US biotech firms

Dubai’s Roads and Transport Authority (RTA) has teamed up with Chinese transport and infrastructure players for support on its Metro Blue Line and railway projects, according to the Dubai Media Office. Agreements were inked with railway signal systems developer Casco Signal and tech giant Huawei.

The details: Casco will establish an R&D center and testing laboratories in Dubai focusing on signaling and communication systems for the Dubai Metro Blue Line and possible future projects. With Huawei, the RTA will organize joint workshops and proof-of-concept trials for emerging tech and AI solutions tailored to transport, traffic flow, and metro systems.

From genomes to cures

Abu Dhabi is building a pipeline to turn its population-scale genomic data into gene-editing treatments for rare and inherited diseases. The Health Department signed three agreements spanning therapy development, clinical research, specialist care, and future manufacturing, drawing on the Emirati Genome Program — which helped make the UAE home to the world’s largest genomic database last year, according to Abu Dhabi Media Office.

Behind the ink: Abu Dhabi healthtech group M42 and US-based biotech firm Mammoth Biosciences will work on next-generation treatments, clinical research, and advanced-therapy manufacturing. Children’s Hospital of Philadelphia will help build expertise in treating metabolic, clotting, urea-cycle, and central nervous system disorders, while US gene-editing biotech Arbor Biotechnologies will explore research, clinical development, and future biomanufacturing.

Bond investors are questioning the AI boom as spending heads toward USD 5.5 tn

Tech companies are raising equity like it’s the dot-com era again — and bond investors are getting nervous. Alphabet sold USD 85 bn of stock this month, while SpaceX followed its record USD 75 bn IPO with a USD 25 bn bond sale, Bloomberg reports.

Why the nerves? Companies that already generate strong cashflow are still raising fresh capital, suggesting they are preparing for heavier AI spending than investors had expected. OpenAI could pursue an IPO as soon as next year, while Anthropic and Meta are weighing equity raises. “It’s telling us that the amount of capital expenditure that they’re going to do is probably going to go up,” Columbia Threadneedle’s Tom Murphy said.

The bill keeps getting bigger: JPMorgan now expects AI and data center-related spending to reach USD 5.5 tn by 2030, up USD 400 bn from its November forecast. It also expects USD 2.1 tn of data center financing to be raised in high-grade bond markets over the next five years, up from USD 1.5 tn previously.

Bond markets are already blinking: SpaceX’s USD 25 bn bond sale weakened shortly after trading began, leaving investors with roughly USD 360 mn of paper losses relative to Treasuries, while spreads on US investment-grade tech bonds widened to 79 bps this month from 74 bps at the end of May.

The risk is duration as much as debt. Bondholders are being asked to take decades of AI obsolescence risk, with SpaceX and Nvidia both selling 20- and 30-year bonds this month and Alphabet selling 100-year GBP bonds in February. That makes the downside more awkward for credit investors: shareholders get the upside if the AI wager works, but bondholders are left holding the bag if it does not.

That is exactly the kind of risk the Bank for International Settlements (BIS) is worried about. The BIS warned in its annual report (pdf) that the AI boom is becoming increasingly reliant on debt and complex funding structures, while supply bottlenecks and intense competition could trigger the kind of overinvestment seen in previous boom-and-bust cycles.

The warning goes beyond AI: The BIS also flagged record public debt, sticky inflation risks, and fragile bond markets, warning of a new “sovereign-financial stability nexus” that could amplify shocks, Reuters reports. “Policymakers must act now,” BIS General Manager Pablo Hernández de Cos said. “Delay will only make the necessary adjustments more costly.”

MARKETS THIS MORNING-

Asia-Pacific markets are mixed in early trading this morning, as regional developments continue to weigh on investor sentiment. Japan’s Nikkei and South Korea’s Kospi are both down, while the Hang Seng is looking at gains. Over on Wall Street, stocks are set to open higher, with futures in the green.

ADX	9,880	0.0% (YTD: -1.1%)
DFM	6,018	-0.1% (YTD: -0.5%)
Nasdaq Dubai UAE20	4,756	+0.2% (YTD: -2.7%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	3.4% o/n	4.2% 1 yr
TASI	10,908	-0.2% (YTD: +4.0%)
EGX30	50,344	-2.1% (YTD: +20.4%)
S&P 500	7,354	-0.1% (YTD: +7.4%)
FTSE 100	10,508	-0.2% (YTD: +5.8%)
Euro Stoxx 50	6,222	-0.7% (YTD: +7.3%)
Brent crude	USD 72.48	+0.7%
Natural gas (Nymex)	USD 3.30	+0.6%
Gold	USD 4,080	-0.4%
BTC	USD 59,538	-1.1% (YTD: -32.1%)
Chimera JP Morgan UAE Bond UCITS ETF	AED 3.74	+0.3% (YTD: -0.2%)
S&P MENA Bond & Sukuk	152.60	0.0% (YTD: +0.5%)
VIX (Volatility Index)	18.41	-2.5% (YTD: +23.1%)

THE CLOSING BELL-

The ADX remained flat on Friday on turnover of AED 1.0 bn.The index is down 1.1% YTD.

In the green: Ins. House (+6.3%), Gulf Cement Co. (+4.0%), and National Corporation for Tourism & Hotels (+2.7%).

In the red: GFH Bank (-4.9%), Invest Bank (-3.3%), and Aram Group (-2.4%).

Over on the DFM, the index fell 0.1% on turnover of AED 707.8 mn. Meanwhile, Nasdaq Dubai was up 0.2%.

CALENDAR

JULY

28-29 July (Tuesday-Wednesday): Federal Open Market Committee (FOMC) meeting.

SEPTEMBER

1-3 September (Tuesday-Thursday: Middle East Energy, Dubai World Trade Center, Dubai.

7-9 September (Monday-Wednesday): AIM Congress, Dubai World Trade Center.

7-9 September (Monday-Wednesday): International Property Show, Dubai World Trade Center, Dubai.

12-13 September (Saturday-Sunday): Emirates International Congress on AI & Visionary Leadership in Transforming Healthcare, Adnec Center Abu Dhabi.

14-17 September (Monday-Thursday): Arabian Travel Market, Dubai World Trade Center, Dubai.

15-16 September (Tuesday-Wednesday): Federal Open Market Committee (FOMC) meeting.

29-30 September (Tuesday-Wednesday): AFCM Annual Conference, Abu Dhabi.

OCTOBER

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

5-7 October (Monday-Wednesday): AI Everything Global, Adnec Center, Abu Dhabi.

12-14 October (Monday-Wednesday: Airport Show, Dubai World Trade Center, Dubai.

20-22 October (Tuesday-Thursday): Future Health Summit, Adnec Center Abu Dhabi.

27-28 October (Tuesday-Wednesday): Arab Competition Forum, Dubai.

27-28 October (Tuesday-Wednesday): Federal Open Market Committee (FOMC) meeting.

30 October (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

2-6 November (Monday-Friday): Dubai Future Finance Week, Dubai.

4 November (Wednesday): Digital Transformation Summit, Sofitel, Abu Dhabi.

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

9-12 November (Monday-Thursday): EMEA Council on Hotel, Restaurant and Institutional Education Conference, Dubai College of Tourism, Dubai.

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

16-18 November (Monday-Wednesday): World Police Summit, Dubai World Trade Center, Dubai.

DECEMBER

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

4-6 December (Friday-Sunday): Formula 1 Abu Dhabi Grand Prix, Abu Dhabi.

8-9 December (Tuesday-Wednesday): Capital Market Summit, Madinat Jumeirah, Dubai.

8-9 December (Tuesday-Wednesday): Federal Open Market Committee (FOMC) meeting.

8-10 December (Tuesday-Thursday): Abu Dhabi Water & Power Week, Adnec Center, 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;
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;
21-22 April (Wednesday-Thursday): Token2049, Dubai;
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;
Annual Meetings of the World Bank Group and the International Monetary Fund, Abu Dhabi;
The commissioning of the seventh phase of Mohammed bin Rashid Al Maktoum Solar Park.

Sections

About

Privacy & Support