Abu Dhabi set for 2.5% growth this year. PLUS: More local banks pile into Formosa bonds

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Taqa eyes acquisitions in the US + Bin Butti joins race for Italian refiner IP

Good morning, friends, and happy hump day. It’s still relatively quiet on the home front this morning as we inch closer towards the weekend, and towards a very welcome shortened workweek…

It’s official — Eid Al Adha is expected to fall on Friday, 6 June, the UAE’s moon sighting committee confirmed yesterday, meaning our public holiday will most likely begin on Thursday for Arafat Day and last until Sunday, 8 June. We’ll be waiting for confirmation on the public holiday for the private and public sectors from the Human Resources and Emiratization Ministry.

The big story at home today is S&P Global’s forecast for Abu Dhabi’s economy this year — which it sees growing 2.5%, on the back of increased oil production and structural reforms. Plus: Abu Dhabi Commercial Bank eyes second USD 600 mn Formosa bond sale this year, Sports consulting firm Elevate acquires Dubai-based Rise Group, and Adnoc Drilling lands a USD 1.15 bn offshore rig contract.

⛅️WEATHER- Hot days, humid nights: Dubai will see daytime highs of 40°C and overnight lows of 30°C today, while Abu Dhabi is set for a high of 34°C and an overnight low of 29°C. Humidity levels are expected to reach 73% in Dubai and 77% in Abu Dhabi overnight, potentially leading to fog in some inland and coastal areas, according to the National Center of Meteorology (pdf).

FACT CHECK- No, ChatGPT Plus is not gratis for all UAE residents: Recent headlines claiming that all UAE residents now have access to ChatGPT Plus for no charge are inaccurate, Gulf News reports. While OpenAI confirmed a partnership with Abu Dhabi’s G42 last week to roll out Stargate UAE, neither the announcement nor other official statements mention complimentary personal subscriptions to the premium ChatGPT services, despite what’s on the rumor mill.

What’s actually happening: The UAE will become the first country to enable nationwide ChatGPT access, meaning OpenAI tools will be integrated into sectors like government services, healthcare, and education. While residents may interact with ChatGPT through public platforms and through the no-charge version, ChatGPT Plus, which includes GPT-4 access, still comes with a USD 20 per month price tag for now.

IN CONTEXT- Stargate UAE is part of a USD 500 bn AI infrastructure initiative led by OpenAI, G42, Oracle, and SoftBank, and is the first international deployment of Stargate’s infrastructure. The Abu Dhabi-based cluster will deliver 1 GW of computing power, with the first phase expected to go live in 2026.

WATCH THIS SPACE-

#1- State-owned Abu Dhabi National Company Taqa is eyeing acquisitions globally, with a strong focus on the US market, CEO Jasim Husain Thabet told Reuters in an interview. Calling the US a “key market,” Thabet said the company is particularly interested in acquiring a fully integrated utility with generation assets and a “pipeline of growth.” Last year Taqa’s Masdar acquired a 50% stake in one of the largest independent renewable energy producers in the US, Terra-Gen.

IN CONTEXT- Taqa is looking to ramp up its capacity to 150 GW by 2030, up from 56 GW today, with USD 20 bn earmarked for expansion. The UAE is also looking to ramp up energy investments in the US, with investments set to come in at USD 440 bn by 2035, as part of a bigger USD 1.4 tn investment pledge in the US.

Who’s footing the bill: Taqa closed a USD 1.75 bn bond issuance late last year, but says it may return to the debt market if a major M&A transaction materializes despite not being under immediate pressure to raise more debt.

MEANWHILE- He also confirmed that talks to acquire a stake in Spain’s Naturgy are officially off the table, contradicting a recent Bloomberg report that hinted at renewed negotiations.

#2- Abu Dhabi’s Bin Butti joins race for Italian refiner IP: Abu Dhabi-based diversified conglomerate Bin Butti Group is lining up a binding offer for Italian oil refiner Italiana Petroli (IP), Reuters reports, citing people it says are familiar with the matter. The potential transaction — for which IP tapped UniCredit as its advisor — could value IP at EUR 2.3-2.5 bn.

Bids are expected next week, with other bidders including State Oil Company of Azerbaijan (SOCAR), along with global commodity traders Gunvor and Glencore. SOCAR is reportedly a frontrunner, while Bin Butti only recently joined talks, Italian outlet la Repubblica reports, citing unnamed sources.

About IP: The refiner has a total refining capacity of 200k barrels a day, and a network of 4.6k fuel stations.

#3- The Abu Dhabi Investment Authority (Adia) is reportedly in late-stage discussions to invest in Indian medical device maker Micro Life Sciences, as the company prepares for an IPO, Mint reports, citing sources it says are in the know. Singapore’s Temasek Holdings is also expected to join the current fundraising round, which sources estimate to be in the range of USD 250–300 mn. The IPO is likely to take place within 12 to 18 months.

Bids are expected next month, with investment firms currently individually evaluating the potential investment, one source said. Micro Life’s expected valuation stands at approximately AED 28.6 bn — translating to over 40x its earnings before interest, taxes, depreciation, and amortization (EBITDA).

REMEMBER- Adia has been steadily ramping up its investments in India. Most recently, its subsidiary Platinum Invictus acquired a 5.10% stake in IDFC First Bank for around USD 310 mn (INR 26.2 bn) in April. The sovereign wealth fund also invested USD 750 mn in the debt of infrastructure firm GMR. In 1H 2024, Adia deployed nearly AED 3.67 bn across Indian assets.

#4- DoE taps Presight, AIQ to advance Abu Dhabi’s digital energy infrastructure: The Abu Dhabi Energy Department (DoE) signed an MoU with Presight and AIQ to boost AI integration and digital transformation in the UAE’s energy sector, according to a press release. The agreement includes the development of a new AI-powered control center platform that will provide live data analytics for energy and utility operations across Abu Dhabi. The platform will enable real-time insights and sector-wide performance monitoring, according to a separate filing (pdf).

An “AI Lab-as-a-Service” model will also be developed under the agreement, enabling local energy firms to test, validate, and implement AI solutions across various applications, tailored to use across the energy value chain. The agreement also mandates the creation of the AD e-data hub — a sovereign data infrastructure that will serve as the central repository for all data governed by the DoE and affiliated sector companies.

Background: Adnoc-Presight JV AIQ also partnered with World Wide Technology to advance AI in the global energy sector last year. The collaboration will streamline the transition from concept to large-scale implementation and expand AI innovation through their AI Lab as a Service program.

#5- The UAE agreed to support South Africa’s launch of a national satellite, state news agency Wam quotes South African Deputy Communications and Digital Transformation Minister Mondli Gungubele as saying. No further details were disclosed on the type of support the UAE will offer or the timeline for their cooperation.

REMEMBER-The UAE and South Africa discussed teaming up on infrastructure earlier this year, with ministers from both countries meeting to discuss smart cities, AI-driven solutions, and green building tech. Private Emirati firms have also been on a roll in South Africa, with Amea Power securing energy storage projects and Edge Group set to cooperate with a local firm on vehicle production. Dubai International Chamber also opened a new office in Cape Town earlier this month.

#6- UAE and Philippines eye CEPA signing next month: The UAE and the Philippines plan to sign a trade and economic partnership agreement next month, Philippine news agency PNA reports, citing officials. An agreement would mark the Philippines’ first trade pact in the Middle East, officials confirmed last week.

DATA POINT-

The UAE’s federal export credit company Etihad Credit Ins. (ECI) saw its insured turnover reach AED 16.2 bn in 2024, up 15.7% y-o-y, according to a press release citing its annual report. The federal insurer saw strong demand from UAE exporters across 17 sectors, with over 60% of beneficiaries being SMEs. Key destinations for ECI-backed exports included Saudi Arabia, which accounted for 7% of total exports, alongside MENA countries, India, and Singapore.

PSAs-

#1- Companies won’t be penalized immediately if a UAE national resigns or if a contract is terminated abruptly, Gulf News reports, citing the Human Resources and Emiratisation Ministry (MoHRE). Employers will have a two-month grace period to recruit a replacement before financial penalties kick in. The same grace period applies if a UAE national hired at the start of the year doesn’t complete a full year of work.

ICYMI- Emiratization checks for private sector companies are set to start on 1 July through a digital inspection system. Companies with 50 or more employees must have a workforce of at least 7% Emiratis by 30 June as part of the national mandate to hit 10% by the end of 2026.

#2- No minimum balance hike for bank accounts — for now: The Central Bank of the UAE (CBUAE) has issued a circular ordering banks to suspend a planned increase in the minimum balance requirement until further notice, Al Khaleej reports.

REMEMBER-Banks were set to raise the threshold to AED 5k, up from AED 3k, starting 1 June, under updated Central Bank regulations tied to personal loan eligibility. The change would have triggered monthly fees of AED 25-105 for non-compliant accounts. Al Khaleej earlier reported that some banks had already begun charging monthly fees of up to AED 26.25 for failing to meet minimum balance requirements.

What now? No new timeline has been announced, and it remains unclear whether the policy will be revised or scrapped entirely.

HAPPENING TODAY-

#1- The Arab Media Summit is on its third and final day at the World Trade Center in Dubai. Sessions will discuss public media, strategies for collaboration with the private sector, public communication, and digital platforms. The inaugural Film and Gaming Forum will take place as part of the summit, in a bid to spotlight the region’s creative economy, with a focus on digital storytelling, gamification, and women-led content. The forum will explore shifts in tech integration, new media formats, and talent development.

#2- The Dubai Chamber of Commerce is on a trade mission to the Philippines and Thailand that will last until Friday, Wam reports. The delegation will include representatives of companies operating in sectors like food and beverages, automotive, and electronics, who will participate in meetings and sessions with their counterparts in Thailand and the Philippines to explore collaboration prospects.

#3- The World Utilities Congress is on its second day, and will be running until Thursday at the Adnec Center in Abu Dhabi. The conference will gather global decision-makers, utilities executives, and technology leaders to explore how innovation is shaping the future of energy and water sectors. This year’s edition will spotlight tech-driven solutions for improving energy and water security, and advancing decarbonization.

#4- The Emirates Agriculture Conference and Exhibition 2025 kicks off today and runs until Saturday at the Dubai World Trade Center, bringing together policymakers, researchers, and industry leaders to explore the future of sustainable farming in the UAE. The event will tackle themes including climate-smart agriculture, water scarcity, food security, and agritech innovation. There will also be a market selling locally-made produce and exhibitions for agricultural technology.

#5- The INDEX, Workspace, and The Hotel Show exhibitions are on their second day, and run until tomorrow at the Dubai World Trade Center. Workspace will bring together over 33k visitors and more than 920 exhibitors, will showcase new technologies and interior designs for office spaces and commercial real estate. Index and The Hotel Show showcase innovations in interior design, architecture, and hospitality, and connect buyers with exhibitors.

#6- Dubai Residential REIT begins trading on the DFM today under the ticker DUBAIRESI. Dubai Holding’s REIT raised AED 2.1 bn (c. USD 584 mn) after pricing its IPO at the top of the range at AED 1.10 per unit, giving it a market cap of AED 14.3 bn (c. USD 3.9 bn). The offering was upsized to offer a 15% stake after being more than 26x oversubscribed, with demand exceeding AED 56 bn (c. USD 15 bn). The selling shareholder is subject to a 180-day lock-up period.

THE BIG STORY ABROAD-

The Trump administration is pressing ahead with its crackdown on international students, halting new visa interviews and preparing to expand social media vetting. The push — which has targeted Harvard and other Ivy League schools with more and more restrictions — is framed as an effort to combat anti-Semitism, following last year’s widespread pro-Palestinian protests in US universities.

ALSO- Trump and friends are doing business as usual: Trump Media, largely owned by US President Trump and the parent company of Truth Social, announced it will raise USD 2.5 bn to invest in BTC, by selling 58 mn shares as convertible bonds. Meanwhile, Elon Musk’s brain-mapping startup Neuralink reportedly raised USD 600 mn in a funding round that put its valuation at USD 9 bn.

CLOSER TO HOME- Germany is considering restricting military exports to Israel, citing concerns about targeting civilians. “The massive military strikes by the Israeli army in the Gaza Strip no longer make any sense to me,” Chancellor Friedrich Merz said yesterday.

The shift in tone from allies of Israel coincides with a chaotic first day for the US and Israel-backed Gaza Humanitarian Foundation, which saw thousands of Palestinians overrunning aid sites in Rafah, shots fired in the air and private security officials fleeing the scene. The little-known foundation’s operations were widely expected to be disastrous, mired in the last few days by a shady contracting process with Tel Aviv and multiple resignations of senior staff.

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OIL WATCH-

Opec+ moves oil meeting up by a day: Eight Opec+ countries that pledged voluntary production cuts will now meet on 31 May, a day earlier than previously scheduled, Reuters reports, citing sources. The meeting is expected to finalize July output levels, with earlier reports pointing to another potential 411k bbl/d increase. The group had already agreed to accelerate supply hikes in both June and April.

Nothing set in stone yet: Russian Deputy Prime Minister Alexander Novak said the group has yet to formally discuss a production hike, Reuters reported, citing Russian news outlet RIA.

Opec+ is “doing its best to balance the market,” though UAE Energy and Infrastructure Minister Suhail Al Mazrouei warned that rising demand could catch the market off guard and called on oil producers to step up investment, Reuters quotes Al Mazrouei as saying during a forum.

Abu Dhabi Investment Authority AIQ artificial intelligence banking Central Bank of the UAE Dubai Holding Human Resources and Emiratisation Ministry infrastructure M&A oil and gas OPEC+ OpenAI Presight Holdings renewables space Taqa trade UAE-India relations UAE-South Africa ties WHAT WE’RE TRACKING TODAY

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ECONOMY

S&P sees Abu Dhabi’s GDP growing 2.5% this year

S&P pegs Abu Dhabi economy growth at 2.5% this year: S&P Global Rating sees Abu Dhabi’s real GDP growth coming in at 2.5% in 2025, and 3.5% over the next three years, buoyed by non-hydrocarbon activity edging up 3% a year, S&P Global said in a report seen by EnterpriseAM. Projected growth would be well below the 3.8% figure recorded in 2024, which was driven by a 6.2% expansion of the nonhydrocarbon sector.

Driving the growth: “We expect Abu Dhabi’s oil production will increase gradually since OPEC+ quotas are partially lifted and state-owned oil producer, refiner, and distributor ADNOC increases its capacity to 5 mn bpd by 2027 from 4.85 mn bpd currently. Over the next few years, we expect the Ghasha gas and Ruwais LNG projects to significantly enhance Abu Dhabi’s gas production capacity,” the agency said.

Background: The agency’s sovereign credit rating for Abu Dhabi is currently at AA/Stable/A-1+, with a stable outlook, with the agency citing strong fiscal buffers, growing non-oil sector contributions, increasing oil production and expanding domestic capital markets. “The stable outlook reflects our expectation that Abu Dhabi's fiscal and external positions will remain strong over the next two years, amid continued prudent policymaking and our hydrocarbon sector price assumptions,” the report said. A downward revision could occur if the emirate’s fiscal assets deteriorate sharply, while improved monetary policy and fiscal transparency could spur an upgrade.

Structural reforms conducted by the UAE and Abu Dhabi will also improve business environment and lure foreign investment, which the agency says will “boost labor market flexibility and increase investment and foreign worker inflows.” These measures include personal and family law liberalization, an FDI law that grants 100% ownership of businesses in various sectors by foreign investors, in addition to golden visas, which help support talent retention.

How this compares to others: The International Monetary Fund (IMF) expects Abu Dhabi’s economy to grow at a faster pace than Dubai’s this year, projecting 4.2% growth for the former and 3.3% for the latter. Abu Dhabi’s economy is expected to grow a further 5.8% next year, while Dubai’s could grow 3.5%. The IMF expects the UAE’s economy to grow 4% for 2025 and 5% for 2026 — making it among the fastest growing in the GCC this year. Non-oil GDP was projected to grow by 4.5%, driven by tourism, construction, public spending, and financial services.

On the fiscal front: Abu Dhabi’s fiscal surplus is projected to narrow from 6.7% of GDP in 2024 to 2.8% of GDP in 2025 before widening to about 6.0% on average over 2026-2028, according to S&P’s forecast.

RAS AL KHAIMAH’S GDP SEEN GROWING 3.3%-

ALSO- S&P Global sees Ras Al Khaimah’s economic growth easing to 3.3% in 2025 and 2026, on the back of increased external headwinds, before accelerating to 4.3% in 2027 and 2028, driven by real estate, manufacturing, mining, and tourism, Arab News reports, citing an S&P Global report. The emirate also benefits from wider federal financial backing from Abu Dhabi.

Background: The ratings agency recently upgraded Ras Al Khaimah to an A sovereign credit rating with a stable outlook, citing strong tourism-driven growth, infrastructure investment, prudent fiscal management, and solid returns from state-owned entities

Steady on the surplus side: The emirate’s fiscal surpluses are expected to remain modest, averaging 2% of GDP through to 2028. With a net asset position of 21% of GDP, S&P said RAK is well-positioned to maintain stability even as infrastructure spending rises thanks to stable revenues and low leverage. The emirate posted a fiscal surplus of AED 2.9 bn in 2024 — 6.5% of GDP — supported by land sales, municipal revenues, and restrained capital spending.

ADCB eyes second USD 600 mn Formosa bond sale this year

ADCB kicks off second Formosa bond sale this year: ADX-listed Abu Dhabi Commercial Bank (ADCB) has reportedly opened books on a benchmark USD 600 mn five-year floating-rate Formosa bond, priced at a spread of 100 bps over the secured overnight financing rate (SOFR), Zawya reports. The bonds will be listed on the Taipei Exchange and Euronext Dublin, with the coupon paid on a quarterly basis. The move comes three months after the state-backed lender sold its first Formosa bonds this year in February, valued at USD 600 mn.

SOUND SMART- Formosa bonds are issued in Taiwan but are denominated in a non-Taiwanese currency. Other Emirati issuers in Taiwan's bond market include Mubadala, which raised USD 750 mn in Formosa bonds last year, and First Abu Dhabi Bank (FAB), which raised USD 800 mn in July 2024. Emirates NBD also took a USD 700 mn issuance to market in Taiwan this year.

About the offering: The senior unsecured notes are Reg S compliant, making it easier for foreign institutions to buy in. The issuance, which falls under ADCB’s USD 15 bn global medium term note program, was rated A+ with a stable outlook by both S&P Global and Fitch.

Use of proceeds: The bank will use net proceeds from the debt sale for general corporate needs and to finance or refinance eligible green loans, Zawya wrote.

ADCB has been somewhat regulatory tapping debt markets: In addition to its recently-closed Formosa bond issuance, the lender was reportedly considering a USD 500 mn tier two sale, last September.

ADVISORS- HSBC and Standard Chartered were appointed joint managers on the transaction.

IN OTHER DEBT NEWS-

FAB taps Taiwan’s debt market again: First Abu Dhabi Bank (FAB) listed a fresh USD 750 mn five-year floating-rate bond offering on the Taipei Exchange yesterday, according to a bourse announcement. The notes were priced at par with a coupon set at 97 bps above SOFR and are subject to certain selling restrictions. No further details were given.

Sports consulting firm Elevate enters Middle East with Rise Group acquisition

Global sports consulting firm acquires Rise Group: US-based global sports and entertainment consulting firm Ele vate Sports Ventures has acquired Dubai-headquartered commercial consultancy Rise Group, marking its regional entry and expanding operations to Riyadh, Jeddah, Abu Dhabi, and Dubai. The transaction — pending regulatory approval — adds 60 Rise staff to Elevate’s global workforce and brings clients like Neom, Qiddiya, and the Saudi Pro League under Elevate’s umbrella, the company said in a statement.

Post-acquisition plans: Rise’s founders will take leadership roles within the group, with the combined entity set to lead regional activations for the NFL’s San Francisco 49ers as part of the league’s Global Market Program. Rise will also be rebranded and folded into Elevate over the next few months, Rise co-founder and managing partner Seth Holmes said on a podcast (listen, runtime: 35: 27).

Elevate’s global footprint: Elevate has deployed its capital across a strong profile of minority shares in sports franchises globally, including with UK premium league teams and US NFL and NBA teams like Golden State Warriors and the Philadelphia 76ers. Elevate’s CEO Al Guido (LinkedIn) is also president of the San Francisco 49ers, while 49ers Enterprises own the UK’s Leeds United football club.

Rise has a substantial footprint as well, having worked with regional big hitters including Neom and the Dubai Sports Council, and Abu Dhabi’s Department of Culture and Tourism. Currently its workforce is split between Dubai, Abu Dhabi, Riyadh, and Jeddah.

Behind the takeover: The acquisition points to global interest and investment in the commercialization of sport in the region, and in Saudi Arabia in particular, Holmes said, pointing to KSA’s sports investment drive, including a successful world cup bid, as attracting international firms to the region.

OTHER M&A NEWS-

Newly-formed Al Ain Farms Group has completed the acquisition of GCC poultry product farm operator Arabian Farms, according to a press release. Arabian Farms is a joint venture between Bugshan Investment, the investment arm of the Bugshan family office, and Saudi Arabia’s Sedco Holding, and the transaction will see the two exit the JV.

Background: In July, Ghitha subsidiary Al Ain Farms for Livestock Arabian Farms, acquired Arabian Farms for AED 240 mn.

ADVISORS- Arabian Farms tapped Ernst & Young Corporate Finance as lead financial advisor for the transaction, and EY Law LLP served as its legal counsel.

Sound familiar? Launched at the Make it in the Emirates Forum 2025 last week, Al Ain Farms Group brings together five UAE brands — Al Ain Farms, Marmum Dairy, Al Ajban Chicken, Al Jazira Poultry Farm, and Saha Arabian Farms — under one umbrella. The group is backed by Ghitha Holding and Yas Holding, and is aiming to expand its regional footprint.

Adnoc Drilling lands USD 1.15 bn offshore rig contract

Adnoc to expand offshore ops: Adnoc Drilling has secured a USD 1.15 bn, 15-year contract from Adnoc Offshore to operate two jack-up rigs to support its offshore expansion plans, according to a press release (pdf). The two new rigs were prepared at Lamprell’s shipyard in Sharjah and are described as next-gen jack-ups equipped with advanced digitalization systems, real-time data analytics, and AI technologies.

The timeline: Both rigs are scheduled to begin operations toward the end of 2Q 2025, with Adnoc Drilling expecting revenue contributions to kick in during 2H 2025.

REMEMBER- Adnoc Offshore awarded Adnoc Drilling a USD 806 mn long-term contract for three newbuild island rigs earlier this month, along with a USD 1.6 bn five-year contract for integrated drilling services (IDS) earlier in April.

Big goals ahead: Adnoc Drilling expects to operate more than 151 rigs by 2028 and reach USD 5 bn in revenue in FY 2026. The company’s CFO Youssef Salem said it will allocate between USD 350 mn and USD 550 mn of the USD 1 bn it earmarked for investments this year, to add rigs and oil field service equipment in the UAE. The company could explore acquisitions of rigs or drilling businesses in Kuwait and Oman, after being pre-qualified for operations in both markets.

Five Holdings turns to the black in 1Q 2025

Hospitality group Five Holdings reported a net income of AED 34.8 mn in 1Q 2025, after incurring a loss of AED 3.7 mn during the same period last year, according to the company's financial statement (pdf). The hospitality group saw its top line grow 39.6% y-o-y to AED 495.9 mn.

Behind the growth: Revenues from its hospitality segment saw a 24% y-o-y uptick, making up AED 322 mn of total revenues, according to a separate earnings release (pdf). An 84% y-o-y increase in real estate revenues added AED 174 mn to the top line. Expanding operations and strengthening market position were cited as reasons behind the strong results for the firm, whose portfolio spans the UAE, Spain, and Switzerland.

Mashreq is now the first UAE bank to offer instant payments for SMEs

PAYMENTS-

Mashreq rolls out Aani instant payments for SMEs: Our friends at Mashreq have launched Aani Instant Payments for SME clients, allowing businesses to collect payments in real time via QR codes or links, without the need to enter an IBAN, according to a LinkedIn post. Merchant QR codes will also be available through the Mashreq Biz app from 9 June. Mashreq is the first UAE bank to offer Aani to SMEs.

EDUCATION-

Schneider rolls out AED 100 mn initiative + opens its first impact building in Dubai: Schneider Electric has launched an AED 100 mn education initiative in the UAE and has set up its new regional HQ in Dubai Silicon Oasis, state news agency Wam reports. The five-year education initiative, which will be rolled out in phases, will modernize engineering labs with energy and automation technologies, provide mentorship programs, and fund applied research through partnerships with universities and industry leaders.

About the HQ: The Nest is Schneider's first impact building — a smart building equipped with integrated digital solutions — and the 10k sqm office in Dubai Silicon Oasis houses 1k employees, according to a press release. The site features a training center for customers and partners, and aims to cut energy consumption by 37% and reduce CO2 emissions by 572 metric tons annually.

TRANSPORT-

Pony.ai to launch robotaxi trials in Dubai this year: Dubai’s Roads and Transport Authority (RTA) has signed an MoU with China-based autonomous vehicle developer Pony.ai to deploy its robotaxi fleet in the city, according to a press release. Supervised trials will start this year, with fully driverless operations slated to begin in 2026. Pony.ai aims to eventually integrate its robotaxis with Dubai’s metro, tram, and water transport systems.

RTA is going all in on robotaxis, having also signed an MoU with Baidu’s autonomous ride-hailing arm Apollo Go in April to launch a fleet of driverless taxis in Dubai, starting with 50 vehicles in the next few months and gradually scaling to 1k autonomous cabs by 2026.

RETAIL-

Dubai Future Foundation and Majid Al Futtaim test retail robotics in mall: Dubai Future Foundation (DFF) and Majid Al Futtaim have launched a robotics pilot program at City Center Mirdif mall, deploying two avatar-style robots to assist shoppers with navigation, according to a press release.

The bigger picture: The trial is part of a research collaboration between Dubai Future Labs and Japan’s Osaka University under the Moonshot Research and Development Program, which targets widespread robotic avatar use by 2050.

REAL ESTATE-

Dalands, Marriott to launch W Residences on Al Marjan Island: UAE-based Dalands Holding has signed an agreement with Marriott International, backed by Ras Al Khaimah developer Marjan, to launch W Residences Al Marjan Island, according to a press release. The 201-unit beachfront residential project is set to open in 4Q 2027, and will sit alongside the W Al Marjan Island hotel in Ras Al Khaimah.

ENERGY-

#1- ENEC, GE Vernova Hitachi to explore deployment of small modular reactors: The Emirates Nuclear Energy Corporation (ENEC) and GE Vernova Hitachi Nuclear Energy (GVH) have signed an agreement to evaluate the global deployment of BWRX-300 small modular reactor (SMR) technology both in the UAE and internationally, according to an Abu Dhabi Media Office statement. The agreement builds on a 2023 MoU signed during COP28.

The details: The partners will develop a roadmap covering site selection, licensing, investment, commercialization, and supply chains. SMRs are gaining traction, especially for powering energy-intensive data centers.

ICYMI- ENEC has been actively expanding its international portfolio, inking agreements in recent years with French-Italian nuclear operator Newcleo, China National Nuclear Corporation, and Moltex Flex and Ultra Safe Nuclear Corporation on nuclear technology.

#2- Snoc and AUS partner on decade-long innovation fund: Sharjah National Oil Corporation (Snoc) and the American University of Sharjah (AUS) have established an AED 10 mn fund to support research, sustainable initiatives, conferences and workshops addressing energy and environmental challenges, Sharjah24 reports. The Snoc Energy, Environment, and Innovation will be distributed over 10 years.

UTILITIES-

Taqa, Emsteel team up to boost utilities for Abu Dhabi industry: Abu Dhabi utility and energy firm Taqa subsidiary Taqa Distribution has signed an MoU with steel and building materials manufacturer Emsteel to explore delivering integrated power and water solutions across Abu Dhabi’s industrial zones, according to a press release (pdf). The agreement covers end-to-end electricity and water network design, operations, and maintenance, as well as ready-for-use technical teams

AI-

More AI agents courtesy of CNTXT AI and Beam AI: UAE-based AI infrastructure and data governance firm CNTXT AI has signed an MoU with autonomous AI agent platform Beam AI to provide AI agent solutions for GCC governments and corporations, according to a press release. The partnership will deploy Beam AI’s agents on CNTXT AI’s infrastructure in the GCC, including in the UAE and Saudi Arabia. Applications include automating tenant inquiries and lease underwriting in real estate, invoice analysis and transaction monitoring in finance, structured data extraction in data management, and citizen queries and permit processing in government sectors.

CRYPTO-

Changer and Bitgrit partner on blockchain project in Abu Dhabi: Digital asset custodian Changer and AI startup Bitgrit have signed an MoU to develop blockchain-based AI solutions under Abu Dhabi’s distributed ledger technology foundation, Khaleej Times reports. Changer will act as custodian for Bitgrit’s BGR tokens, and later on for secure AI models tokenized on Bitgrit’s BGR Network — a blockchain ecosystem for tokenizing and trading AI datasets.

DEBT-

DIB loans USD 150 mn to Turkcell for digital infrastructure: Dubai Islamic Bank has signed a USD 150 mn shariah-compliant Murabaha facility with Turkish telecoms and technology services provider Turkcell, according to a statement. The five-year facility will support investments in data centers, cloud services, and renewable energy, and help expand the telco’s digital infrastructure.

Abu Dhabi ADGM ALSO ON OUR RADAR Barakah nuclear plant Blockchain CRYPTO Dubai Future Foundation Dubai Islamic Bank Education Emirates Nuclear Energy Corporation Emsteel infrastructure investment M&A Majid Al Futtaim Mashreq nuclear energy payments Ras Al Khaimah retail Roads and Transport Authority Saudi Arabia Taqa tech transport

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PLANET FINANCE

Giant US retailers mull going private as tariff tensions bite

Several major retailers are currently in talks to sell to investment firms and companies after US President Donald Trump's trade war wreaked havoc on their valuations, writes Reuters. The rapidly-changing tariff announcements left retailers in a limbo and unable to provide earnings guidance amid trade policy instability. Investment bankers think that we could soon see more retailers aggressively pursuing private deals if Trump does not lock down a clear trade policy soon.

Going private is becoming an increasingly attractive option for retailers, as they will become more immune to the unpredictable fluctuations in the market. They can also shield their earnings because they will no longer have to answer to financial reporting requests and other regulatory restrictions.

Public retailers are not overplaying the impact of market turmoil. Shoe company Skechers, acquired earlier this month by 3G Capital, saw its market value dip to USD 7.4 bn in late April, down from USD 11.85 bn in January, one day before Trump announced tariffs against China. Like Sketchers, many retailers manufacture their goods overseas, making them more prone to downsides of tariff announcements.

Some retailers may find going private easier than others because a company structure drastically influences the signing of these agreements. Companies with a single investor or family companies like Skechers don’t need a broad shareholder approval, meaning that public companies with a similar structure in the retail sector could go private sooner than we think.

US tensions with China flared up again shortly after they cooled things off during recent talks in Geneva that led to monetary calming of global markets. The two countries struck a fragile truce to roll back tariffs for an initial period of 90 days. The US’ repeated warnings to its companies to avoid using AI chips manufactured by China’s Huawei provoked the ire of the Chinese who said that such warnings “undermine” the Geneva talks, casting doubts on whether the 90-day truce will continue its full course.

MARKETS THIS MORNING-

Asian markets are mixed in early trading this morning. Japan’s Nikkei is looking at gains of 0.5% and the Kospi is up 1.8%. Meanwhile, both the Shanghai Composite and the Hang Seng are in the red, down 0.1% and 0.3%, respectively.

ADX	9,674	+0.2% (YTD: +2.7%)
DFM	5,505	+0.4% (YTD: +6.7%)
Nasdaq Dubai UAE20	4,527	+0.5% (YTD: +8.7%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.0% o/n	4.1% 1 yr
TASI	10,925	-1.4% (YTD: -9.4%)
EGX30	32,397	+1.5% (YTD: +8.9%)
S&P 500	5,922	+2.1% (YTD: +0.7%)
FTSE 100	8,778	+0.7% (YTD: +7.4%)
Euro Stoxx 50	5,415	+0.4% (YTD: +10.7%)
Brent crude	USD 64.29	-0.7%
Natural gas (Nymex)	USD 3.40	+1.9%
Gold	USD 3,328	-2.0%
BTC	USD 109,158	0.0% (YTD: +16.4%)
BONDAE	USD 3.57	+0.0% (YTD: +0.1%)
S&P MENA Bond & Sukuk	143.0	+0.1% (YTD: +2.2%)
VIX (Volatility Index)	18.96	-7.8% (YTD: +9.3%)

THE CLOSING BELL-

The DFM rose 0.4% yesterday on turnover of AED 602.4 mn. The index is up 6.7% YTD.

In the green: Dubai Refreshment Company (+14.5%), Amlak Finance (+5.6%) and Al Salam Bank (+1.9%).

In the red: National Industries Group Holding (-7.7%), Emirates Reem Investments (-5.1%) and BHM Capital Financial Services (-2.3%).

Over on the ADX, the index rose 0.2% on turnover of AED 1.3 bn. Meanwhile, Nasdaq Dubai was up 0.5%.

CORPORATE ACTIONS-

IHC extends AED 5 bn share buyback program: International Holding Company (IHC) has received regulatory approval from the Abu Dhabi Securities Exchange to extend its AED 5 bn share repurchase program until 31 December 2025, according to an ADX disclosure (pdf). The program was initially set to run for one year, ending in June, following its announcement in May 2024 and board approval in June.

REFRESHER- The buyback allows IHC to repurchase up to AED 5 bn worth of shares — equivalent to 0.6% of its total share capital — with all repurchased shares to be cancelled. The program aims to enhance shareholder value by increasing earnings per share. IHC has so far completed a first tranche worth AED 1.8 bn and launched a second AED 1.5 bn tranche in March.

CALENDAR

MAY

26-28 May (Monday-Wednesday): Arab Media Summit, World Trade Center, Dubai.

26-28 May (Monday-Wednesday): Film and Gaming Forum, World Trade Center, Dubai.

26-30 May (Monday-Friday): Dubai Chamber of Commerce is set to go on a trade mission to the Philippines and Thailand.

27-29 May (Tuesday-Thursday): INDEX, Workspace, and The Hotel Show, Dubai World Trade Center.

27-29 (Tuesday- Thursday): The World Utilities Congress, Adnec, Abu Dhabi.

28 May (Wednesday): The Dubai Residential REIT will ring the bell.

28-31 May: The Emirates Agriculture Conference and Exhibition, Adnec Center Al Ain, Abu Dhabi.

31 May (Saturday): Opec+ meeting, expected to decide on July output levels.

JUNE

17-18 June (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

17-18 June (Tuesday-Wednesday): Abu Dhabi Infrastructure Summit, Abu Dhabi Energy Centre.

24-25 June (Tuesday-Wednesday): Middle East Rail, Dubai World Trade Center.

27 June (Friday): Islamic New Year.

Signposted to happen sometime in 2H 2025:

Closing of XRG's acquisition of Covestro

JULY

6-7 July (Sunday-Monday): BRICS Summit, Rio de Janeiro.

29-30 July (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

SEPTEMBER

1-6 September (Monday-Saturday): Dubai Fashion Week, Dubai Design District.

8-10 September (Monday-Wednesday): DigiHealth exhibition, World Trade Center, Dubai.

8-19 September (Monday-Wednesday): WHX-Tech Expo, Dubai World Trade Centre.

12-14 September (Friday-Sunday): The International Real Estate and Investment Show, Abu Dhabi.

16-17 September (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

24-25 September (Wednesday-Thursday): Mohammed Bin Rashid Leadership Forum, Mohammed Bin Rashid Center for Leadership Development, Dubai.

24-25 September (Wednesday-Thursday): Dubai World Congress for Self-Driving Transport, Dubai.

OCTOBER

1-2 October (Thursday-Friday):World Green Economy Summit (WGES), Dubai World Trade Centre.

30 September - 2 October (Tuesday-Thursday): The Water, Energy, Technology, and Environment Exhibition (WETEX), Dubai World Trade Centre.

3-16 October (Friday-Thursday): Dubai Home Festival.

7-9 October (Tuesday-Thursday): The International Symposium on the System of Radiological Protection, the Ritz-Carlton Abu Dhabi, Grand Canal.

9-15 October (Thursday-Wednesday): IUCN World Conservation Congress, Abu Dhabi.

14-16 October (Wednesday-Friday): Global Future Councils, Dubai.

27-29 October (Monday-Wednesday): Future Hospitality Summit, Madinat Jumeirah, Dubai.

27-29 October (Monday-Wednesday): Asia Pacific Cities Summit, Dubai Exhibition Center.

28-29 October (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

NOVEMBER

12-17 November (Wednesday-Monday): RoboCup Asia-Pacific, Khalifa University, Abu Dhabi.

15-17 November (Saturday-Monday): Myplant & Garden Middle East Green Expo, Dubai Exhibition Centre, Expo City.

17-21 November (Monday-Friday): Dubai Airshow 2025, Al Maktoum International Airport, Dubai.

18-19 November (Tuesday-Wednesday): Dubai Future Forum, Museum of the Future, Dubai.

DECEMBER

1-3 December (Monday-Wednesday): Eid Al Etihad (UAE National Day).

1-5 December (Monday-Friday): The World Congress of Neurosurgery, Dubai World Trade Center.

8-9 December (Monday-Tuesday): BTC Mena Conference, Adnec, Abu Dhabi.

8-10 December (Monday-Wednesday): BRIDGE media summit, Abu Dhabi.

9-10 December (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

Signposted to happen sometime in 2025:

The Middle East Electric Vehicle Show, Expo Center Sharjah.
e& will complete Adnoc’s private 5G network.
Executive Committee Meeting (EXCOM 2025) conference of the World Smart Sustainable Cities Organisation (WeGO)
The International Civil Aviation Organization’s Global Implementation Support Symposium, Abu Dhabi.
Universal Postal Congress 2025, Dubai.

Signposted to happen sometime in the fall of 2025:

2025 Games of the Future, Dubai.
ICOM General Conference 2025, Dubai

Signposted to happen sometime in 2026:

9-11 January (Friday-Sunday): 1 Bn Followers Summit’s fourth edition, UAE.
28-29 January (Wednesday-Thursday): IBA Arbitration Day Conference, Abu Dhabi.
3-5 February (Tuesday-Thursday): The World Governments Summit.
12-15 February (Thursday-Sunday): The Society for Incentive Travel Excellence Global Conference, Abu Dhabi.
11-13 May (Monday-Wednesday): AI Everything Global, Adnec Center.
The UAE to host the Arab Competition Forum
Dubai to host the Arab Actuarial Conference
United Nations Water Conference 2026, UAE
The first edition of Dubai Future Finance Week.

Signposted to happen sometime in October 2026:

Abu Dhabi Space Week, Abu Dhabi.

Signposted to happen sometime in 2027:

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 between 2027 and 2029:

The commissioning of the seventh phase of Mohammed bin Rashid Al Maktoum Solar Park.

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