Good morning, everyone. We have a string of welcome news for you today as non-oil activity came in at an 11-month high in January, just as FAB pencils in economic growth of 5.6% for us this year, and FDI inflows hit a record high last year. Speaking of foreign investment — ADFD is backing Tajikistan’s 3.4 GW hydroelectric project.
Plus: We’re tracking some interesting developments in the energy sector. Adnoc is reported to be eyeing a maiden dim sum offering for as much as USD 2 bn, Germany is sounding out our energy offerings as it looks to diversify its energy import sources, and the price of Murban is ticking up next month. Also, earnings are out for Borouge and Dubai Aerospace Enterprise, Menzies Aviation has been tapped for a task in India, and another AI startup has secured more funds.
Watch this space
Adnoc is said to be weighing a move into China’s offshore debt market, potentially raising up to CNY 14 bn (USD 2 bn) through a maiden dim sum offering, Bloomberg reports, citing people it says are in the know. The transaction could see the state-owned oil giant issue multiple tranches with five-, 10-, and 30-year maturities as early as this month. There’s no publicly available information about initial price thoughts. Adnoc recently raised up to USD 11 bn in project financing, drawing what sources described as the largest Chinese bank participation seen in the region.
The UAE is set to be the region’s growth engine in 2026. First Abu Dhabi Bank (FAB) expects the economy to expand by 5.6% next year, comfortably outpacing projected global growth of 3.1%, and exceeding projected growth across both the GCC and Egypt, according to the bank’s Global Investment Outlook 2026 report (pdf).
Growth drivers: The UAE’s diversification push is fueling momentum alongside a robust real estate sector in Dubai, which saw property transactions jump 49.6% y-o-y as of November 2025, while Abu Dhabi recorded a 43.3% increase as of September. Strong growth across tourism, hospitality, and travel activities is also underpinning GDP growth.
How it compares: FAB’s forecast is slightly more upbeat than those of the IMF and the World Bank, both of which see growth coming in at 5.0% in 2026, and broadly in line with the Central Bank of the UAE’s 5.3% projection.
The UAE is a key stop in Berlin’s latest energy recalibration, as German Chancellor Friedrich Merz is set to arrive in Abu Dhabi this week as part of a Gulf pivot aimed at lessening reliance on US LNG and widening Europe’s supply options, Bloomberg reports. With the US explicitly linking energy to tariff negotiations, high dependency becomes a problem, pointing to the risk of geopolitical blackmail.
The numbers explain the anxiety: LNG makes up some 13% of Germany’s total imports, with roughly 94% of that coming from the US. Across Europe, dependence has surged even faster, with the bloc pledging some USD 750 bn in purchases through 2028.
However, contracts are signed with companies, not governments, and the US system remains reliable — but portfolio risk needs managing, Uniper’s CCO Carsten Poppinga told Reuters, adding that diversification is still required, with the Middle East explicitly on the list. The message was echoed by Sefe’s CEO Egbert Laege, whose company locked in agreements from Adnoc’s Das Island facility last year and the Ruwais LNG project (alongside Germany’s EnBW) in 2024.
The friction point sits with contract length. Gulf LNG exporters typically push for long-term contracts of 20 years or more, while Germany’s climate policy bans LNG imports beyond the end of 2043. For the UAE, contract flexibility is the competitive edge — underscored by Sefe’s three-year supply agreement from Das Island.
DIPLOMACY — Trilateral talks between Ukraine, Russia, and the US are on their second day in Abu Dhabi, Reuters reports. The second round of negotiations is mediated again by the US, with key issues including the fate of the Zaporizhzhia nuclear power plant and territory disputes over the Donetsk region.
BACKGROUND- The first round of negotiations were held last month in Abu Dhabi, and the latest talks come after Ukrainian President Volodymyr Zelenskyy accused Russia of using a temporary truce aimed at protecting energy infrastructure last week to stockpile munitions before launching an overnight attack on Tuesday.
INVESTMENT — CedarBridge capital incoming? Private equity firm CedarBridge Partners has started deploying capital from its third fund, CedarBridge High Growth III, targeting platform investments across healthcare, education, wellness, pet care, and essential consumer services in the GCC, according to a press release.
The state of play: The fund reached its first close last November and is targeting USD 150 mn overall. It will deploy most of the capital regionally, with up to 35% earmarked for select UK and European transactions.
ICYMI- CedarBridge’s existing Gulf investment presence includes GCC early education provider Kids First and The Grooming Company Holding — the latter of which it sold in 2024 to Multiply Group.
AVIATION — Emirates could consider a larger A350 if Airbus moves ahead with a new wider model, the airline’s President Tim Clark told Reuters. Both Airbus and Boeing have said they’re studying production of their largest aircraft yet, amid Emirates’ long-standing call for larger planes. So far, the airline hasn’t bought the A350-1000 — Airbus’ largest model currently — due to concerns over engine durability in Gulf conditions. Any new deliveries would take a while, as the two manufacturers have a current combined backlog of more than 11 years.
Data point
54.9 — that’s the seasonally adjusted Purchasing Managers’ Index (PMI) figure for the UAE in January, according to S&P Global’s latest UAE PMI (pdf). The reading marks a sharp improvement in the health of the non-oil private sector, rising from 54.2 in December to reach its highest level in 11 months.
The breakdown: Growth gained more momentum at the start of the year, with new order volumes increasing at their fastest pace in about two years, driven primarily by domestic demand and new product rollouts. To keep pace, firms ramped up purchasing activity at the quickest rate in six and a half years, shoring up inventories and significantly slashing supply chain lead times.
This rapid expansion pushed input costs to an 18-month high amid strong demand, but firms largely absorbed these pressures to stay competitive, leading to only a modest uptick in selling prices. Hiring remained cautious as capacity pressures eased, with backlogs rising at their slowest pace in two years. Meanwhile, business sentiment for the year ahead climbed to a 15-month high.
Dubai mirrored the national trend, with PMI data pointing to robust operating conditions. New business growth hit a 22-month high, with sales growing at the sharpest rate since March 2024. Although overall activity growth eased from December, it remained steep enough to prompt a rise in employment and stocks. Cost inflation in the emirate also reached an 18-month peak, though price hikes were minimal.
Happening today
PropTech Connect Middle East is wrapping up today in Dubai, bringing investors, developers, and property-tech firms together to discuss AI, data, blockchain, and digital tools reshaping real estate markets across the region.
The International Arab Actuarial Conference is running until Friday in Dubai, bringing together actuaries, insurers, regulators, and banks from across MENA. Sessions will focus on AI, health ins., cyber risk, catastrophe modeling, and pension sustainability.
TheWorld Governments Summit is finishing up today in Dubai under the theme Shaping Future Governments. Government leaders, international organizations, and private-sector executives will focus on governance reform, technology, and global policy challenges.
The big story abroad
The US and Iran agree to talks — with no set agenda: The US and Iran agreed to meet on Friday in Oman. Washington insists that negotiations zero in on Iran’s missile arsenal, its backing of proxy groups in the region, and its response to protests at home. The Islamic Republic is only willing to discuss its nuclear program.
MEANWHILE, IN MARKET NEWS- The tech selloff continues: Fears that rapid advances in AI could undermine software business models have resulted in USD 1 tn in losses over the past week. Stocks and bonds of Silicon Valley players of all sizes saw hundreds of bns in losses in just two days.
^^ We have more on the software selloff in the news well, below.
Amid AI hubbub Alphabet steps up spending: Google parent Alphabet is doubling its capex for the year to up to USD 185 bn as it doubles down on AI, it said in its latest earnings release (pdf). The figure is well above the USD 120 bn penciled in by analysts and the USD 91 bn spent last year.
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Market watch
Adnoc raises Murban price for March: Adnoc has set the official selling price for Murban at USD 63.99 / bbl for March, up from USD 63.06 / bbl in February, Reuters reports. The move signals confidence in the grade picking up, as just weeks ago, Asian refiners were actively ditching Murban after its premium over Dubai crude hit USD 2.24 / bbl, more than double late-2025 levels, sending buyers toward cheaper alternatives.
Circle your calendar
TheForbes Middle East Top Advisors & Investors Summit is taking place on Tuesday, 10 February and Wednesday, 11 February at the Conrad Etihad Towers in Abu Dhabi, convening investors and advisors to examine global capital flows, wealth management, and financial innovation. The event, organized with MENA-focused financial services provider Beltone Holding, will focus on investment strategy, fintech, and the growing role of AI in asset management.
Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.



