Adnoc Drilling marks entry into Oman and Kuwait with acquisition of SLB unit. PLUS: Dubai property price correction this year?

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Low economic risk this year, Fitch says + Dubai’s first ever tokenized real estate asset was fully funded in the first day

Good morning, friends, and happy FRIDAY. We wrap the week with a busy issue, led by Adnoc Drilling’s acquisition of SLB’s Omani and Kuwaiti drilling business, marking its entry into the two Gulf countries. Also: Azerbaijan’s state oil fund invested in Adnoc Gas Pipeline Assets, Amea Power and Spain Cox formed a new JV, and Fitch expects a 15% Dubai real estate price correction in 2H 2025.

ALSO- Private sector Eid holiday confirmed: Private sector employees in the UAE will receive a paid holiday from Thursday, 5 to Sunday, 8 June 2025 for Arafat Day and Eid Al Adha, the Human Resources and Emiratization Ministry confirmed. The public sector was recently confirmed to have the same days off for the holidays.

💨WEATHER– It’s another hot day today, with Dubai set to see highs of 41°C and lows of 29°C over night, while Abu Dhabi will peak at 36°C with overnight lows of 31°C. Add in around 70% humidity and it’ll feel even hotter across both Emirates.

Temperatures are expected to ease over the weekend, though increasing winds and blowing dust may reduce visibility, according to the National Center of Meteorology (pdf)..

WATCH THIS SPACE-

#1- The UAE’s political and economic risk will stay low in 2025 thanks to its stable domestic environment and economic strength, according to a recent report from BMI, which gave the country a score of 32.7 in its proprietary Political Risk Index. Abu Dhabi’s foreign policy — built on economic goals and deescalation — shields it from broader fallout, alongside its improved ties with Tehran and a neutral stance on the Red Sea conflict, though a flare-up between Iran and the US or Israel could still pose a risk.

Washington’s latest tariffs aren’t expected to shake Abu Dhabi’s relationship with the US, and Trump’s return is unlikely to affect bilateral military and economic ties. The UAE’s role in the Abraham Accords, its investment footprint in the US, and its historical reliance on American security all help lock in the alliance. Tariffs may create some economic headwinds, but BMI says they’ll be “manageable” even if oil prices remain under pressure.

Ties with China could grow, but to a limited extent: BMI also sees space for the UAE to grow ties with Chinese firms amid US-China tensions, pointing to China National Offshore Oil Corporation’s LNG offtake from Adnoc. However, reliance on US defense and tech cooperation will limit just how far the country can push that relationship. G42 has already distanced itself from China-based firms in favor of deeper ties with Microsoft. The tariffs could also push the UAE closer to other partners as talks on a UAE-EU freetrade pact continue.

#2- The Abu Dhabi Department of Energy rolled out a new strategic framework for the energy and water sector that aims to attract up to AED 400 bn in FDI by 2050, Wam reported. The roadmap also aims to raise local content in core supply chains to 65%, along with a target of 100% Emiratization of critical roles across the sector.

The strategy rests on four main objectives: Ensuring a secure and sustainable supply of energy and water, optimizing efficiency in supply and demand, supporting decarbonization through cost-effective solutions, and boosting the economic value of both energy and water resources. Other initiatives in the framework include expanded AI investments, digital transformation, international partnerships, and regulatory reforms to draw in private capital and international investors.

#3- Dubai’s first ever tokenized real estate asset was fully funded within 24 hours of launch, according to a statement from Prypco, the proptech firm offering the investment platform for Dubai’s real estate tokenization project, which launched earlier this week. The offering drew 224 investors from over 40 nationalities — 70% of whom were first-time buyers in Dubai property — highlighting strong appetite for the new fractional model, the statement said. Average ticket sizes came in at AED 10.7k.

What’s the asset? A Damac Maison Prive unit, according to a photo circulating on LinkedIn of the first property token ownership certificate.

REMEMBER- Damac revealed in January plans to tokenize at least USD 1 bn worth of assets in partnership with blockchain startup Mantra. Prypco is also led by Amira Sajwani, who is also the managing director of sales and development at Damac.

#4- The new UAE-Oman trade zone is already getting interest from UAE firms: Several UAE-based firms have inked a letter of interest (LOI) to explore areas of investment in Al Rawda Special Economic Zone — an industrial and logistics zone being developed between the UAE and Oman, Al Khaleej reports. Companies range from logistics players such as Indu Logistics, Oriental General Trading, and Palmon Group to manufacturers, including Al Bayader, Camtech Manufacturing, Conares, and New East. Retail players like Apparel Group and Spinneys — were also among those expressing interest.

ICYMI- DP World and Oman’s Public Authority for Special Economic Zones signed an agreement to develop and operate the first phase of the Al Rawdah Special Economic Zone in Mahadha in Oman earlier this week. In the rollout of its first phase, the zone will focus on vehicle sector manufacturing, textiles, clothing, steel, and logistics. The first phase of the project is expected to see nearly USD 2 bn in investments.

#5- Gridora inks MoU to fast-track AED 35 bn Abu Dhabi transport projects: Abu Dhabi-based infrastructure platform Gridora has signed its first MoU with the Abu Dhabi Projects and Infrastructure Center to accelerate the rollout of transport infrastructure projects worth at least AED 35 bn, according to a press release (pdf). The two will now establish a working committee to identify pilot projects.

REMEMBER- Gridora was launched last month by ADQ, Modon Holding, and IHC to expedite procurement and execution processes as well as increase public-private partnerships.

#6- Sobha Realty eyes Texas for US expansion debut: Dubai real estate developer Sobha Realty is entering the US market with initial focus on Dallas, Houston, and Austin, Chairman Ravi Menon told Arabian Business. Sobha would manage the entire development cycle and manufacture critical components in-house, but did not disclose an investment figure for the expansion.

HAPPENING TODAY-

#1- The Dubai Chamber of Commerce is on a trade mission to the Philippines and Thailand that wraps today, Wam reports. The delegation includes representatives of companies operating in sectors like food and beverages, automotive, and electronics, who are participating in meetings and sessions with their counterparts in Thailand and the Philippines to explore collaboration prospects.

#2- The Emirates Agriculture Conference and Exhibition 2025 is on its third day 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 tackles themes including climate-smart agriculture, water scarcity, food security, and agritech innovation. The event also features a market selling locally-made produce and exhibitions for agricultural technology.

THE BIG STORY ABROAD-

One big story is dominating headlines this morning, and that’s US President Donald Trump’s reciprocal tariffs getting reinstated after a federal appeals court granted the Trump administration a temporary reprieve from an earlier ruling blocking the duties, saying that Trump had exceeded his authority in imposing them. The new tariffs — which do not include sector-specific ones — are now back on the table, and await a response from the plaintiffs next week and from the administration on 9 June.

Markets largely shrugged off the news, with the S&P 500 up narrowly, though the USD lost some ground against the JPY and CHF. (Bloomberg | Reuters | CNBC | Wall Street Journal)

ALSO- The US said that Israel has signed off on a Gaza ceasefire proposal, while Hamas is currently studying it, though senior Hamas officials have said the proposal does not meet its demands on aid or withdrawal of troops. (Reuters)

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MARKET WATCH-

Opec+ to set 2027 output baselines: The 22-member group will set up a mechanism for determining oil production baselines for 2027, tasking the Opec Secretariat with assessing each member country’s maximum production capacity, according to a statement. The baseline figures are expected to serve as a reference point for output policy once the current set of production cuts expire, Reuters reports.

Baselines and quotas have been a source of tension among the group, with countries including the UAE and Iraq increasing their production capacity, further pressing the case for higher quotas, while some African members have seen capacity declines and risk being sidelined, Reuters added.

REMEMBER- Opec+ is set to meet tomorrow to discuss a further output hike for July. The next Opec+ Ministerial Meeting is scheduled for 30 November.

MEANWHILE- Trading activity in the UAE’s Murban crude futures contracts reached a record high this month, Bloomberg reported. Open interest across the full curve in Murban futures climbed to an all-time high of 81k lots earlier in May, Bloomberg added, citing ICE Futures Abu Dhabi data. About two-thirds of the 34 cargo deliveries recorded so far this month in the S&P Global Commodity Insights pricing window were Murban, up from around half of the 32 trades logged in April.

The spike in activity comes amid broader market weakness in light crude grades, driven by higher UAE supply after Opec+ upped its production quota, along with refinery outages that dented demand, Energy Aspect’s oil analyst Richard Jones told Bloomberg.

Murban continues to develop into one of the most relevant benchmarks in global crude pricing, ICE oil markets head Jeff Barbuto told Bloomberg. It is traded against Brent, US oil contracts as WTI, and Dubai crude as the market adapts to shifting dynamics in supply and demand.

Adnoc Drilling to acquire 70% of SLB’s Omani and Kuwaiti rigs business

Adnoc Drilling inked a USD 112 mn agreement to acquire a 70% stake in the land drilling business of US oil and gas wells drilling company Schlumberger Middle East (SLB) in Kuwait and Oman with a mechanism in place to acquire SLB’s remaining 30% stake over time, according to a joint statement (pdf). The transaction is expected to close in 1Q 2026.

This marks Adnoc Drilling’s first inorganic expansion outside the UAE, underscoring the company’s ambition to evolve from a domestic giant into a regional player in the integrated drilling services market. The move comes as part of a broader strategy to diversify geographically and capitalize on a growing GCC energy services market. It follows the company’s USD 1.7 bn Enersol JV with SLB and Patterson to tap into unconventional resources.

The details: The transaction establishes a joint venture with SLB and grants the state-owned oil company immediate operational control of eight active rigs — two in Kuwait and six in Oman — already under long-term contracts with national oil companies. The rigs are fully operational, and the contracts extend into 2028, contributing an estimated USD 120 mn this year in revenue and EBITDA margins of over 38%. The agreement was made at an implied valuation of 4x EBITDA.

The JV will be a “highly complementary and value-accretive addition” to Adnoc Drilling’s portfolio, CEO Abdulrahman Abdulla Al Seiari said. The new agreements will boost revenues to over USD 5 bn by 2026, CFO Yousef Salem told Asharq Business (watch, runtime: 1:46).

Payment terms: Adnoc will pay an earn-out of USD 21 mn linked to the overall business performance, and USD 91 mn excluding potential earn-out, with the company planning to finance the transaction through its existing debt capacity. The final purchase price is subject to adjustments based on the net debt position (total debt minus cash) at the time of closing.

Big goals ahead: Adnoc Drilling expects to operate more than 151 rigs by 2028. The company has been eyeing drilling businesses in Kuwait and Oman for a while since it was pre-qualified for operations in the two countries. The company had also earmarked USD 350 mn for acquisitions through its JV with Alpha Dhabi, Enersol, in 2H 2025 as part of USD 1 bn in planned capital expenditure for inorganic growth, which will include some USD 150 mn in acquisitions of rigs overseas in Kuwait and Oman, and another USD 500 mn for rigs and equipment inside the UAE, Salem told us previously.

Market reax: Adnoc Drilling’s shares were up 1.7% to AED 5.3 at yesterday’s close.

OTHER M&A NEWS-

Investcorp Capital exits USD 550 mn in US multifamily assets: ADX-listed alternative asset manager Investcorp Capital has exited 12 US multifamily real estate assets across five states for a total of USD 550 mn, the company said in an ADX disclosure (pdf). The portfolio, which included a 432-unit apartment community in Atlanta, was sold at a premium despite softer market conditions. The assets were 94% occupied on average and located in key rental markets in Atlanta, Philadelphia, Missouri, and Florida.

The sale marks another sale by Investcorp Capital as it aims to realize gains while reallocating capital into new assets. It follows the company’s USD 360 mn exit from its US industrial portfolio in April and its full divestment earlier this week from Indian budget fashion chain Citykart, which delivered a 4x return. More exits are expected from its Indian portfolio, and it also expanded into the Italian market through a takeover of payments firm Epipoli.

AND- ICD offloads its stake in Corporación América Italia: Dubai’s investment arm, the Investment Corporation of Dubai (ICD), sold its 25% stake in airport operator Corporación América Italia (CAI) to the Corporación América Airports (CAAP), according to a press release. CAAP now fully owns CAI following this transaction.

The details: The transaction took place through a share swap agreement, with CAAP providing over 1.9 mn newly issued shares to ICD as consideration for the 25% interest in CAI

Azerbaijan’s state Oil fund invests USD 50 mn in Adnoc’s gas pipeline unit

SOFAZ invests USD 50 mn in AGPA through Lunate: The State Oil Fund of the Republic of Azerbaijan (SOFAZ) invested USD 50 mn in Adnoc’s gas pipeline unit, Adnoc Gas Pipeline Assets (AGPA), through a Lunate -managed investment fund, according to a press release. The gas pipeline infrastructure network is subject to a long-term usage agreement between AGPA and Adnoc.

AGPA might see new investors come on board this year, after US-based investment fund Global Infrastructure Partners (GIP), the unit’s largest foreign stakeholder, was said to be working with advisors to gauge interest in acquiring its holding in AGPA, with Lunate mentioned as a potential buyer. A GIP-led consortium had acquired 49% of the company back in 2020 in a transaction that valued the entire network, including debt, at almost USD 21 bn.

Lunate ♥️ Adnoc: Abu Dhabi-based alternative asset manager Lunate was reportedly set to acquire a 6% stake in the gas pipeline unit from Italian gas network operator Snam SpA through Lunate’s Long-Term Capital Fund I. The value of the acquisition wasn’t disclosed, but Italian investment bank Mediobanca estimated that the stake could be valued at USD 200 mn, with a book value of EUR 135 mn. It had previously acquired a 40% stake in Adnoc’s oil pipeline asset network from BlackRock and KKR & Co back in 2024.

About Adnoc Gas Pipelines: The Adnoc subsidiary’s portfolio includes a network of 38 gas pipelines spanning 982 km across the UAE, including 12 pipelines dedicated to sales, 15 for gas injection, and 11 for natural gas liquids.

Amea Power + Spain’s Cox launch infrastructure-focused JV

Amea + Cox shake hands: Spain’s Cox and renewables firm Amea Power have formed a JV to co-develop and manage water and energy infrastructure projects across the Middle East, Africa, and Asia, according to a press release. The partnership aims to leverage both firms’ technical and financial capabilities to address resource challenges in high-demand regions.

REMEMBER- Amea Power holds a 3.76% stake in Cox, acquired during the latter’s IPO last November. Amea Power was lining up plans to invest at least USD 100 mn in a desalination project in Morocco through Cox last December.

Amea Power has invested about USD 2.5 bn so far in Africa across 20 countries, USD 2 bn of which is in Egypt alone, with plans to expand its investments in Asia. The company also has plans to go public during the next two to three years.

About Cox: Headquartered in Spain, Cox is a water and energy company with a current concession portfolio of 5 water assets for up to 945k cubic meters per day, six energy generation projects and two transmission line concessions, according to the press release. Cox operates under a concession-based business model, and is complemented by engineering, procurement, and operations & maintenance services.

Fitch forecasts 15% correction for Dubai home prices

Fitch forecasts Dubai home price correction: Fitch Ratings expects Dubai residential real estate prices to undergo a moderate correction in the second half of 2025 after peaking in 2024, according to a research note. The agency expects prices to decline, though not by more than 15%, and expects any declines to be absorbed by developers and banks to avoid rating downgrades. This is helped further by improved leverage from developers and lower levels of real estate financing among banks, which have improved capital cushions.

We’ve been expecting this: This month, Fitch Ratings’ Paul Gamble also forecast that real estate could see a “modest correction” in prices owing to the amount of supply coming to the market, but the government is expected to be able to manage the supply effectively. Multiple other agencies have forecasted a moderation in price growth, including Knight Frank, which forecast an 8% price increase in properties for 2025, down from double-digit growth in 2024. Moody’s also expects a price dip or stabilization over the coming 12-18 months.

Prices for residential units increased approximately 60% between 2022 and 1Q 2025. This demand stemmed from post-pandemic immigration and increased investor interest.

Expect price corrections to affect properties outside of prime locations, with those in prime locations usually showing more resilience during periods of correction, Fitch said.

The record number of new projects in the pipeline since 2023-24 are expected to add about 250k units to supply. Deliveries will spike in 2026, with the 120k units planned for handover dwarfing the 30k units delivered in 2024 and 90k in 2025. Fitch expects new units to cause an average 16% annual increase in housing supply between 2025 and 2027, outpacing expected population growth of around 5%.

New supply is expected to add pressure on rental yields, which have already declined 30 basis points between 2H 2024 and 1Q 2025 to 7.4%.

DFM-listed firms outpaced Abu Dhabi’s in terms of earnings growth in 1Q 2025

Dubai-listed companies saw their net income jump 35.5% y-o-y to AED 29.2 bn in 1Q 2025, outpacing Abu Dhabi, where ADX-listed firms posted a 10.2% y-o-y increase to AED 34.2 bn, according to Kamco Invest’s latest corporate earnings reports from the DFM (pdf) and ADX (pdf).

Main drivers: In Dubai, the financial, real estate, and telecom sectors together contributed over 88% of the total earnings — a more diversified mix than in Abu Dhabi, where growth was more narrowly driven by the banking sector, as well as strong contributions from Emirates Telecom, Adnoc Gas, and Alpha Dhabi Holding.

Dubai’s banking sector remained the single largest earnings contributor, with financials up 50.7% y-o-y to AED 19.5 bn. Gains at Commercial Bank of Dubai (+18.1%), Dubai Islamic Bank (+9.2%), and Emirates Islamic Bank (+24.4%) helped offset a 7.3% drop at Emirates NBD to AED 6.2 bn, which was weighed down by higher impairments.

Real estate earnings climbed 34% y-o-y to AED 6.1 bn, led by Emaar Properties (AED 3.7 bn, +27%) and Emaar Development (AED 1.9 bn, +48.3%). Tolling and parking revenues from Salik and Parkin helped bolster the industrial segment’s revenues.

Abu Dhabi’s banking sector was its main driver of earnings growth, with financials rising 31.1% y-o-y to AED 12.6 bn, accounting for nearly 37% of ADX earnings. First Abu Dhabi Bank led with AED 5.1 bn (+23.5%), while Abu Dhabi Islamic Bank reported gains of +20.6% to AED 1.5 bn and Abu Dhabi Commercial Bank reported a 17.3% uptick to AED 2.2 bn.

Telecom earnings rose 99.8% to AED 6.5 bn, thanks primarily to Emirates Telecom (e&), which posted AED 5.4 bn, a 129.9% y-o-y increase. Real estate also performed well, up 62.7% y-o-y to AED 1.6 bn, driven by Aldar’s 25.7% earnings increase. Energy earnings rose 11.2%, led by Adnoc Gas (+7%) and Adnoc Drilling (+24.2%).

But not all sectors fared well: In Dubai, utilities (-20.9%) and consumer discretionary (-52%) weighed on earnings, dragged down by Dewa and Talabat. In Abu Dhabi, industrials slumped 64%, tempering broader index gains.

THE REGIONAL PICTURE-

GCC-listed companies saw aggregate earnings rise 2.0% y-o-y to USD 58.6 bn in 1Q 2025, driven by continued strength in banking, telecoms, and real estate, according to the GCC earnings report (pdf). Banking sector earnings hit USD 16 bn (+10% y-o-y) — a record high — led by strong growth in Saudi Arabia, Abu Dhabi, and Bahrain.

Telecoms were the breakout sector, with earnings up 45.3% y-o-y to USD 3.5 bn, thanks to Emirates Telecom, STC, and Zain Group. Real estate followed with a 55.5% y-o-y gain to USD 2.9 bn, bolstered by strong contributions from UAE and Saudi developers.

Still, the energy sector remained a drag, with earnings falling 5.7% y-o-y to USD 28.3 bn amid weaker oil prices and a 7.5% decline in Saudi Aramco’s earnings. Stripping out Aramco, GCC earnings rose 10.7%, underscoring the resilience of the region’s non-oil economy.

Credit demand sustains strong growth in 1Q 2025 -CBAUE

Credit demand in the UAE upheld robust growth in 1Q 2025, driven by an improved economic outlook and favorable investment climate, according to the Central Bank of the UAE’s (CBUAE) 1Q 2025 Credit Sentiment Survey (pdf). The survey, based on 290 responses from senior credit officers at licensed financial institutions across Abu Dhabi, Dubai, and the Northern Emirates, highlights rising credit activity across all emirates and sectors.

Business loan demand gained more momentum in 1Q, with 58.3% of respondents reporting higher demand, while only 4.5% noted a decline. Abu Dhabi saw the strongest growth, with demand rising moderately across all emirates. The growth was fueled by “robust economic conditions, working capital needs, and solid investment,” according to the survey. Interest rates were also a key driver of credit demand since they were cut in December.

All sectors witnessed an increase in loan demand, with large firms taking the lead, followed by SMEs and government-related entities (GREs). The retail and wholesale trade saw the highest growth rate, followed by construction, manufacturing, property development, and electricity, gas & water sectors.

Looking ahead, business credit demand is expected to continue to see gains over 2Q 2025, led by large firms. “All economic sectors are expected to see higher demand growth, with the most significant increases in construction, retail and wholesale trade, manufacturing, and property development,” according to the survey.

Personal loan demand also rose during 1Q, with Dubai taking the lead, boosted by strong economic conditions, rising incomes and a favorable interest rate influence. Housing loans, credit cards and personal loans saw the highest demand. “Financial institutions’ willingness to extend personal loans has been primarily driven by a positive economic outlook, alongside improving bank asset quality and stable borrower creditworthiness,” according to the survey.

Positive outlook: Financial institutions anticipate further growth in loan demand, with robust economic conditions and rising incomes expected to support future demand, particularly for credit cards, personal, housing, and car loans.

Premiums on riskier loans, maximum LTV/LTI ratios, and non-interest fees & charges for personal loans rose during the quarter, while the spread of loan rates over the cost of funds narrowed marginally.

The share of rejected personal loan applications also saw a marginal increase during the quarter, as greater rejection rates in credit card applications and car loans outweighed the drop in housing-related loan rejections. Despite this, financial institutions showed an increased appetite for lending, supported by a strong economic outlook, improved asset quality, and stable borrower creditworthiness.

Mubadala, Taqa complete acquisition of majority stakes in Uzbekistan power plant

M&A-

Mubadala and Taqa snap up stake in Uzbekistan power plant: Abu Dhabi sovereign wealth fund Mubadala and Abu Dhabi National Energy Company (Taqa) have completed the acquisition of an 875 MW gas-fired power plant at Uzbekistan’s Talimarjan Power Complex, according to a press release (pdf).

Ownership breakdown: The partners each hold 40% stakes in the TPP1 plant through the newly established Talimarjan Power Plant 1 — with Uzbekistan’s JSC Talimarjan Issiqlik Elektr Stansiyasi (TIES) retaining the remaining 20% stake. Talimarjan Operations and Maintenance, an entity established to operate the plant, is under the same ownership structure. The plant operates under a 25-year Power Purchase Agreement with JSC Uzenergosotish, and comes amid the ongoing privatization of Uzbekistan’s energy sector.

Taqa is active in Uzbekistan: Taqa Water Solutions inked an MoU earlier this year with Uzbekistan’s New Tashkent City Directorate to develop a 65 km raw water pipeline and a water treatment plant.

IN OTHER TAQA NEWS- Taqa distribution inked an MoU with Abu Dhabi Airports to explore joint work on energy and water infrastructure across the capital’s airports, according to a press release (pdf). The partnership aims to bring public network standards and smart technologies to private utility operations, including maintenance tools and CRM systems. Taqa also recently partnered with Emsteel to provide utilities work across Abu Dhabi’s industrial zones.

REAL ESTATE-

#1- Emaar earns Baa1 upgrade from Moody’s: Moody’s has upgraded Emaar Properties’ long-term issuer rating to Baa1 from Baa2, with a stable outlook, according to a report seen by EnterpriseAM UAE. The upgrade reflects Emaar’s AED 127 bn sales backlog, which it says provides strong revenue visibility over the next three years, alongside a growing recurring income portfolio expected to reach nearly AED 10 bn by 2027. Moody’s also pointed to the company’s conservative financial profile — marked by low leverage, ample liquidity, and strong interest coverage — as key credit strengths.

Also upgraded: Emaar Sukuk Limited’s backed senior unsecured bonds were raised to Baa1, and its medium-term note program to (P)Baa1, with a stable outlook maintained for both.

What could move the rating: Moody’s flagged Emaar’s concentrated exposure to Dubai’s real estate market, intensifying competition, and execution risks linked to large-scale projects as potential constraints.

#2- Meraas awards AED 300 mn Elara contract to Al Sahel: Meraas, part of Dubai Holding Real Estate, has awarded a contract worth over AED 300 mn to Al Sahel Contracting Company for Elara, which is phase seven of the Madinat Jumeirah Living (MJL) masterplan, according to a press release. The contract comes following Al Sahel’s handover of the first four phases and near-completion of phase five.

What’s coming: Scheduled for delivery in 4Q 2026, Elara will comprise three residential towers offering 234 units, including one- to three-bedroom apartments and four-bedroom penthouses, along with amenities.

DECARBONIZATION-

Emsteel + Finland decarbonization collaboration: Emsteel has inked an agreement with Finland’s decarbonization firm Magsort to advance decarbonized cement production, according to a press release. The partnership builds on a pilot completed in February, where the two companies processed 10k tonnes of steel slag at Emsteel’s Al Ain site for cement production.

The model uses waste from Emsteel’s operations in Abu Dhabi as input for cement production, creating a circular system. A dedicated production line is being built at Al Ain plant to refine steel residue and produce low carbon cement at scale.

MANUFACTURING-

Delta Coatings has broken ground on a new global headquarters and manufacturing hub at Dubai Industrial City, set to triple its current output and warehouse space, according to a press release. The facility — scheduled for completion by December 2025 — will be partially powered by renewables and include a new R&D lab focused on polyurea coatings for harsh climates, and training and service hub for Graco HPCF spray equipment. The site will feature warehouses with digital inventory systems, open-plan workspaces, and customer demo zones.

ENERGY-

Ta’ziz taps Wood for methanol plant consultancy: Ta’ziz — a joint venture between Adnoc and ADQ — awarded UK-based global consulting and engineering company Wood Group a project management consultancy contract for the UAE’s first methanol production facility, according to a press release.

The facility in Al Ruwais Industrial City will produce 1.8 mn tons of methanol annually using clean energy technology, making it one of the world’s largest methanol plants. Construction is expected to wrap in 2028. Approximately 40 Wood consultants will support Ta’ziz’s engineering, procurement, and construction contractor.

The same Wood? Wood Group has been the target of a proposed takeover by Dubai’s Sidara for the past year following a series of on and off bids. Sidara had until 15 May to submit a formal takeover offer, but the deadline was extended another time to 12 June as they continue to work on the offer’s pre-conditions.

UTILITIES-

Esyasoft to boost Abu Dhabi groundwater management: The Abu Dhabi Energy Department has signed an MoU with Dubai-based, IHC-backed tech firm Esyasoft to advance technical cooperation in groundwater management, state news agency Wam reports. The agreement will focus on deploying smart monitoring and analytics tools — including field sensors, cloud computing, data dashboards, and connected devices — to track and model underground and surface water more efficiently.

SUSTAINABILITY-

Abu Dhabi + GCFC sign MoU on climate finance: The Abu Dhabi Energy Department and Global Climate Finance Center (GCFC) have signed an MoU to support the implementation of Abu Dhabi’s finance strategy, Wam reports. The agreement enables capacity building, knowledge exchange, and financing for energy and water efficiency projects.

The details: Areas of cooperation include developing financing instruments for energy and water infrastructure, capital structuring tools, technical support for regulators, developers, and financial institutions, investment-focused policy, and meetings for pipeline development. GCFC will also head up the Finance Track of the 2026 UN Water Conference.

MANUFACTURING-

#1- Kerno launches enterprise servers post-AED 100 mn investment: Emirati enterprise IT infrastructure manufacturer Kerno invested AED 100 mn in its first production-ready enterprise server units, according to a press release. Its OKAM servers, using Intel and AMD chipsets, target corporate data centers and cloud services, while its UQLEAD systems are used for AI model training and high-performance computing. The servers serve regional and international markets.

#2- Adio, Metal Park to launch advanced industries center in Kezad: The Abu Dhabi Investment Office (Adio) and local metal player Metal Park will set up a 5 mn sq ft “center of excellence for advanced industries” at Kezad, according to a press release. The hub will provide infrastructure and digital ecosystems to help companies prototype, test, and scale technologies including AI, robotics, and autonomous logistics. It is slated to open in 4Q 2025.

ALSO- The two sides also inked an earlier agreement to build an Industry 4.0 Competence Center, also in Kezad, focused specifically on digitizing the metals manufacturing value chain.

REMEMBER- Metal Park launched phase one of its AED 110 mn storage facility in Kezad earlier this year, with direct access to Khalifa Port, Etihad Rail, and major UAE highways.

RAIL-

Itaminas taps Hafeet Rail to expand its regional iron exports: Hafeet Rail inked a cooperation agreement with Brazilian iron ore producer Itaminas Comerico de Minerios (Itaminas) to support iron and steel supply chains in Brazil, Oman, and the UAE, Times of Oman reports. The pair aim to establish a network for the transportation of iron ore through Hafeet’s Rail infrastructure and Sohar Port. Iraminas is aiming to expand its exports to the region via Brazil’s Sudeste Port — which currently boasts a 6.5 mn ton annual production capacity.

Background: The UAE’s Etihad Rail, Mubadala, and Oman’s Asyad Group launched a new entity — Hafeet Rail — to work on a railway connecting the UAE to Oman. The rail link is set to cut travel between Abu Dhabi and Sohar to 100 minutes, with freight trains moving at 120 km/h and passenger trains carrying up to 400 people at 200 km/h.

BUSINESS-

Tourmaline opens DIFC office: US-based outsourced trading firm Tourmaline Partners has opened its first Middle East office in Dubai International Financial Center (DIFC) as part of its global expansion strategy, according to a DIFC statement. The new office will serve as a regional hub, offering buy-side firms tailored trading solutions across equities, derivatives, and ETFs. Kish Desai (LinkedIn), formerly based in the firm’s London office, will serve as senior executive officer.

AVIATION-

Azorra taps DAE for 49 jets: US-based aircraft lessor Azzor will uptake 49 Embraer E-Jet aircrafts and two general electric CF-34 engines from homegrown Dubai Aerospace Enterprise (DAE), according to a statement. The aircraft are earmarked for lease to 12 global customers, says the statement, without disclosing further details. DAE inked agreements to offload 75 air carriers to Azzora and another undisclosed party this week — with the latter party slated to acquire 25 off-production jets.

M&A activity surged in the region in 1Q 2025

MENA dealmaking surged in 1Q, with M&As jumping 66% y-o-y in value to USD 46 bn across 225 transactions (up 31% y-o-y) driven by “regulatory reforms, policy shift and a favorable macroeconomic outlook,” EY MENA Leader Brad Watson said in the firm’s latest M&A insights report. The UAE dominated the region’s M&A league table as the top target country in 1Q with 63 transactions totaling USD 20.3 bn, followed by Kuwait (USD 2.3 bn).

Cross-border activity hit a five-year high in 1Q, driving the bulk of growth. M&As with companies based in different countries accounted for 81% of the region’s total transaction value and 52% of volume across 117 plays in the first three months of the year.

The value of domestic transactions hit USD 8.7 bn, up 5x y-o-y. Transactions in the technology sector accounted for 37% of total domestic M&As value, and 27% of their volume. G42’s USD 2.2 bn acquisition of a 40% stake in Khazna Data Centers was the region’s largest domestic M&A last quarter.

The quarter saw more M&A capital outflows than inflows: Outbound M&A activity hit USD 19.7 bn, representing 43% of total transaction value in the region. Saudi Arabia and the UAE alone made up 77% of outbound activity by volume and 94% by value. The UK was the region’s top target country by dealcount in 1Q, while Canada and Peru led in outbound value, thanks to Adnoc and OMV’s joint acquisition of Canada’s Nova Chemicals for USD 6.3 bn.

Inbound M&A value clocked in at USD 17.6 bn last quarter, representing a 7x y-o-y increase.The UAE captured the bulk of inbound funds into the region, accounting for 53% of all inbound transactions and nearly all of the total value (99%) fueled by the USD 60 bn merger of Adnoc and Austrian energy giant OMV’s polyolefin businesses. Austria topped the investor chart, making up 94% of the UAE’s total inbound value.

Keep an eye on these sectors: The MENA M&A pipeline looks strong for the rest of 2025, with more action expected in consumer, tech, and energy. And with AI set to shake up how value is created, it’s expected that more investment will flow into the tech space, said Anil Menon, EY’s head of M&A and Equity Capital Markets.

ANOTHER AREA THAT COULD SEE MORE CONSOLIDATION- The banking sector in the GCC, according to Fitch Ratings, which expects sustained lower oil prices and weaker global demand to put pressure on GCC bank operating environments, “leading to weaker profitability and acting as a catalyst for M&A as banks seek to diversify their revenues and increase scale,” the ratings agency said in a report. Fitch argues that smaller banks may be on the M&A radar, citing their “weaker franchises, and often higher funding costs and thinner capital buffers.”

Most GCC banking sectors are “overbanked,” with a big number of banks operating relative to population size — more than 150 banks operate across the region, half of which are domestic commercial banks. A lot of the banks have common shareholders.

While the majority of GCC bank M&As have been domestic, Fitch expects “a gradual shift towards regional transactions, citing Kuwait Finance House’s takeover of Ahli United Bank as an example. A few GCC banks have also expressed their interest in expanding beyond the region, but Fitch warns that this may entail additional risks, “especially for acquisitions in more macroeconomically volatile markets, such as Turkey and Egypt.”

The UAE could see more consolidation of Islamic banks: “The UAE’s ambitious domestic Islamic finance strategy may lead to further M&A involving Islamic banks,” Fitch said, also citing Dubai Islamic Bank’s 2020 acquisition of Noor. Other local Islamic banks have been acquired by Emirates NBD and Abu Dhabi Commercial Bank, with the aim of supporting financing and deposit growth.

MARKETS THIS MORNING-

Asian markets are in the red this morning amid uncertainty over the fate of US tariffs, as well as inflationary pressures in Japan and fears of a slowing US economy. Japan’s Nikkei led declines, while mainland China’s CSI 300 was flat at the open. Over on Wall Street, futures are little changed following a good day for US indexes.

ADX	9,745	+0.0% (YTD: +3.5%)
DFM	5,493	-0.6% (YTD: +6.4%)
Nasdaq Dubai UAE20	4,545	-0.5% (YTD: -9.1%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.0% o/n	4.1% 1 yr
TASI	10,990	-0.6% (YTD: -8.8%)
EGX30	32,697	+0.6% (YTD: +9.9%)
S&P 500	5,912	+0.4% (YTD: +0.5%)
FTSE 100	8,716	-0.1% (YTD: +6.7%)
Euro Stoxx 50	5,371	-0.1% (YTD: +9.8%)
Brent crude	USD 64.11	-0.1%
Natural gas (Nymex)	USD 3.55	+0.8%
Gold	USD 3,339	-0.2%
BTC	USD 106,305	-1% (YTD: +12.5%)
Chimera JP Morgan UAE Bond UCITS ETF	USD 3.65	+0.0% (YTD: +2.4%)
S&P MENA Bond & Sukuk	143.3	+0.1% (YTD: +2.4%)
VIX (Volatility Index)	19.18	-0.7% (YTD: +11%)

THE CLOSING BELL-

The ADX remained flat yesterday on turnover of AED 1.7 bn. The index is up 3.5% YTD.

In the green: Sudatel Telecommunications Group (+12.5%), Emirates Ins. Co (+9.6%), and Abu Dhabi National Co. for Building Materials (+3.4%).

In the red: Ins. House (-6.2%), Alef Education Holding (-2.5%) and National Corporation for Tourism & Hotels (-2.2%).

Over on the DFM, the index fell 0.6% on turnover of AED 844.3 mn. Meanwhile, Nasdaq Dubai was down 0.5%.

My Morning Routine: Mark Chahwan, group CEO and co-founder at Sarwa

Mark Chahwan, group CEO and co-founder at Sarwa: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Mark Chahwan (LinkedIn), group CEO and co-founder at Sarwa. Edited excerpts from our conversation:

I’m Mark Chahwan, co-founder and group CEO of Sarwa. I grew up in between Montreal and Beirut. I studied finance at McGill University, and had a deep interest in investing early on. I worked in management consulting for a couple of years, and then started Sarwa with my best friends in 2017, where the mission is to help people invest and make money outside of their salary. Outside of Sarwa, I recently became a dad and I enjoy fitness and surfing.

We always hear “don’t mix business and friends” but for us, it’s been the best thing. It’s very scary to launch something on your own. When the idea of Sarwa came, I was in Montreal and a lot of people who would move to Dubai would ask me how they should invest their money. I found that people didn’t know their options, whereas in Canada, we had investment platforms that were helping people get started. I felt that there was a gap, and we realized that the banks weren’t doing a good job at making investing accessible.

We’re not taught how to invest in school or about money in general. We felt like there was a big problem to solve, because people want to do things on their own and we want to allow them to control their own experience with investing to match their values and interests, as opposed to getting certain products pushed to them so a salesperson can meet their target.

Several things make us stand out. The first one is the simplicity of Sarwa, from the name to the educational content to the onboarding experience and design and language we use. I think it comes from the young team we have that wants to build something that reflects the expectations of today’s world. The second one is choice. There’s a lot available on the platform — people can buy and sell stocks, or crypto, or options, or they can have a higher yield savings account or invest in private companies. The kind of product offering that Sarwa has built is very extensive, so that you don’t need to have many different apps.

We’re also profitable and count Mubadala among our backers, and I think that’s something that a lot of people care about more as they grow their wealth, especially with situations like in Egypt, and Lebanon where there’s been a lot of wealth destruction from poor governance. I think ultimately the value we bring in terms of educational content and community events also signals that we will go that extra mile to help people ultimately get better returns on their investments.

The worst thing you can do in times of volatility is to panic sell. Volatility is inevitable, and I view these moments as an opportunity for Sarwa to educate people about similar periods in the past and show them how resilient the stock market is. And I think it’s working — in April, we’ve seen a record amount of deposits, because people have almost rewired their thinking from panic-driven selling to thinking we should actually buy while markets are falling and prices are down.

US equities are still doing really well in terms of inflows. We’ve also seen increased investments in broad-based ETFs, which made a comeback in April, probably because there was confusion around which companies will be impacted by the volatility, so people started to diversify more than usual.

What also gained popularity is options trading, which is driven by a need for protection against sharp rises or sharp falls. Crypto and gold were also popular in May. There’s a very good balance, which I really like at the moment, between risky assets and protection against downturns. That’s really positive behavior, especially because a lot of our customers are super young. 80% are millennials and Gen Z, so they have a risk appetite, but they’re doing it responsibly.

I’ll typically gravitate towards one team a month. What’s good is that we have identified a leader for each team so they’re not relying on me to progress; it’s more about where I can add value.

One thing that’s a constant each week is that we have a Slack channel where we say what we’re going to work on for the week ahead. I think that’s important to make sure you’re doing what you said you were going to do.

On a good day, I aim to have some focus time, like a couple of hours in the morning — which is why I try not to book meetings early in the day — just to leave time for explorations, thinking about strategy, or a campaign or product, and about how to improve things. I’m usually woken up by my son in the morning, I make coffee and then he follows me around the house. Typically, I like to read a bit — usually some fiction – or hit the gym. And sometimes, more so on the weekend, I’ll go for a surf. There’s Sunset Beach in the UAE, but I’ll also take advantage of good surf spots outside of the UAE when I’m traveling, like in Portugal now or back in Lebanon.

My favorite book to recommend is Antifragile by Nassim Nicholas Taleb. It’s a very complete book combining a lot of wisdom and philosophy from thousands of years. It has very useful insights on how to avoid some pitfalls. I’ve been reading almost once a year for the last couple of years.

On a professional level, the short-term goal is to reach more than USD 1 bn in assets; we’re at USD 600 mn as of April. I think a big part of our impact is in how much people are saving and how much is being put on the platform, so I think five years from now, that should reach USD 5-10 bn. Profitability was a big one that we reached last year, and now it’s more about unlocking more ways to reinvest that income for customers, employees, and shareholders.

On a personal level, my goal is to keep up with the growth of the company, because to have managed and started Sarwa with just a handful of people and an MVP, to now a very different company, it’s important to scale the company while staying lean, and using technology and AI to do a better job at that.

A few pieces of advice I’ve cherished: Give the benefit of the doubt — a colleague of mine told me this when it comes to seeing something you don’t like, to look at why something may have happened before assuming the worst. Another one is to attack the problem, not the person. This is really important at a startup, because a lot of times, when someone isn’t doing well, they just haven’t been set up for success.

CALENDAR

MAY

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

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

1 June (Sunday): The International Businesswomen’s Conference, Bab Al Qasr Hotel, Abu Dhabi.

5 June (Thursday): Arafat Day, public holiday.

6-9 June (Friday-Tuesday) Eid Al Adha, public holiday TBD.

11-13 June (Wednesday–Friday): China Home Life Expo, Dubai World Trade Center.

11-13 June (Wednesday–Friday): International Appliances and Electronics Show, Dubai World Trade Center.

12 June (Thursday): Deadline for Sidara to submit a formal takeover bid to Wood Group.

17-18 June (Tuesday–Wednesday): Middle East Event Show, Dubai World Trade Center.

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 Center.

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

24-25 June (Tuesday-Wednesday): Solar & Storage Live, Dubai World Trade Center.

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

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.

18-23 December (Thursday-Tuesday): Games of the Future, Adnec, Abu Dhabi.

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:

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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