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1

WHAT WE’RE TRACKING TODAY

THIS MORNING ADIC backs ExodusPoint’s USD 2 bn capital raise + more dual listings could be coming to Abu Dhabi

Good morning, everyone. We kick off today’s issue with plenty of activity in debt markets: Abu Dhabi reopened previous issuances, raising another USD 2.5 bn offering, while Dubai Islamic Bank is the latest Gulf bank to price its AT1 issuance yesterday, drawing in orders north of USD 2.3 bn. Meanwhile, DP World is meeting with investors to reassure them that it’s good to pay its debt.

Deployment is equally active, with BlueFive Capital making yet another acquisition in the mobility space, ADIC backing New York-based hedge fund ExodusPoint’s USD 2 bn capital raise, and another L’imad reshuffle happening as the sovereign wealth fund acquires 2PointZero’s stake in Taqa.

On the downside: Fitch is turning much more bearish on the region’s credit, citing lasting security and business risks due to ongoing geopolitical tensions, and turning its sovereign outlook from neutral to deteriorating.

BUT BEFORE WE DIVE IN- Iran launched strikes in Bahrain targeting the US Fifth Fleet — Bahrain’s Interior Ministry sounded the alarm and told the public to seek shelter. Shortly after, Kuwait said it was intercepting aerial targets.

It does not appear the attacks have reached the UAE as of dispatch time — we’re yet to hear from our Defence Ministry, but we’ll be closely watching our phones over the coming few hours for any public safety alerts.

This came after the US launched a fresh wave of attacks on Iran last night and threatened to continue the attacks if Tehran doesn’t sign the peace agreement. US President Donald Trump said Iran would “pay the price” for dragging out negotiations.

The state of Hormuz is unclear, with contradicting reports from Iran and the US. State-run Iranian media said the waterway has been closed to all vessels, while the US said commercial ships are continuing to transit.

WEATHER- Look for a high of 41°C in Dubai and Abu Dhabi, while the former will see a low of 29°C and the capital a low of 31°C.

Emirates’ Tim Clark goes on PR offensive

Emirates will offer “all sorts of incentives other than price” to lock in hesitant travelers, including safety assurances and contingency arrangements for stranded passengers, CEO Tim Clark told Reuters on the sidelines of an industry summit in Berlin — his first interview with a global news agency since the conflict began in late February. Clark said ticket prices can't come down while oil is fluctuating, but predicted that once crude falls from around USD 90 to USD 70, “we’ll be back.”

The broader industry picture is grimmer. Middle Eastern airlines are expected to swing to a collective USD 4.3 bn loss in 2026 — the only region projected to slip into the red this year, per the IATA — with passenger demand forecast to drop 11.4% as airspace closures, longer routings, and elevated fuel costs bite. Gulf carriers’ heavy dependence on east-west transfer traffic through Dubai, Doha, and Abu Dhabi makes the connectivity hit particularly costly.

Both UAE carriers are nonetheless pushing a growth narrative. Etihad is placing a double-digit order for widebody aircraft and expects to be flying about 8% more than a year ago by mid-June, while Emirates — heavily hedged on fuel — had three-quarters of its flights operating at pre-conflict capacity as of May.

ADIC keeps deploying

Abu Dhabi capital is continuing to flow into hedge funds despite the regional backdrop: New York-based multistrategy hedge fund ExodusPoint Capital Management raised USD 2 bn in fresh capital, with the Abu Dhabi Investment Council (ADIC) among the backers, Bloomberg reports, citing people it says are familiar with the matter. The fundraising boosts ExodusPoint’s assets under management to USD 14.5 bn and marks its first capital raise since 2023.

Why now? The fundraising follows ExodusPoint’s strongest year on record, with returns of 18% in 2025, as the firm expanded its equities business alongside its fixed-income operations.

IN CONTEXT- The investment comes as ADIC ramps up its exposure to alternative assets under CEO Saeed Al Mazrouei. The Mubadala-owned fund, which manages roughly USD 160 bn, has been expanding into areas including hedge funds, private credit, ins., and secondaries while looking to deploy more than USD 10 bn over the next three years.

DP World moves to reassure investors

DP World is trying to reassure bond investors it can weather the war. The company’s management has been meeting local and international fund managers ahead of an EUR 750 mn bond maturing in September, Bloomberg reports, citing people familiar with the matter. The company has the money to repay it outright, but would prefer to refinance in the market if conditions allow.

It has numbers to support it: Jebel Ali volumes dropped 30% y-o-y in 1Q 2026, though that only captures one month of full Hormuz disruption. Fitch expects DP World to manage its USD 2.6 bn in 2026 maturities through a combination of capital markets access and available liquidity.

More dual listings for Abu Dhabi

ADX expects between two and three companies to pursue dual listings before year-end, with technology and healthcare firms currently working through regulatory approvals in their home markets, CEO Abdulla Al Nuaimi told the Arabic press (watch, runtime: 06:01).

Who could be next? ADX hasn’t identified the companies, but Hong Kong-listed biotech firm Insilico Medicine was previously reported to be planning a secondary listing in Abu Dhabi. The exchange has also been stepping up efforts to attract overseas issuers, including through a partnership with Hong Kong Exchanges and Clearing focused on dual listings and cross-border financing.

Why now? Foreign investors accounted for more than 47% of trading value on the ADX during the first four months of 2026, according to Arabian Gulf Business Insight, while Abu Dhabi-listed companies reported USD 10.6 bn in 1Q earnings.

Data point

The UAE's federal government ended 2025 with an AED 17.4 bn surplus, KhaleejTimes reports, citing final accounts approved by the Federal National Council. Revenues reached AED 86.3 bn last year against expenditure of AED 68.9 bn, with operational revenues accounting for 61% of the total.

Why it matters: The surplus offers a snapshot of the fiscal strength the UAE brought into 2026. That resilience has helped underpin recent ratings affirmations from both Moody's and S&P despite a more challenging regional backdrop.

Where the money came from: Government company earnings generated AED 12.1 bn, while identity, visa, and residency services brought in AED 12 bn. Work permits and labor cards contributed another AED 9.8 bn, while telecommunications concession fees generated AED 6.9 bn.

The balance sheet remains strong: Federal assets stood at AED 569.8 bn at year-end, with net assets of AED 429 bn.

Where it went: Salaries and benefits accounted for AED 29 bn of spending, while public services received AED 19.3 bn and education AED 16.3 bn. Healthcare spending reached AED 5.6 bn and social protection expenditure totaled AED 7.1 bn.

The big story abroad

Global headlines are focused on the latest exchange of attacks between the US and Iran, which we dive into in the news well, above.

Looking at the markets: Oil jumped on the news, with Brent crude rising over 2% to USD 95.14. Asian markets opened lower — extending losses initially triggered by a tech selloff — and in the US, equities are on track to open in the red with futures down in response to the attacks.

Speaking of US markets: The country saw inflation pick up in May, recording 4.2% — its highest level in three years — on the back of rising energy costs, making a rate hike from the Federal Reserve appear increasingly likely. Commenting on the figure, Trump said, “I love the inflation,” promising that “oil [will] drop to where it was before [the war].”

The 2026 World Cup kicks off tonight with a showdown between South Africa and Mexico starting at 10pm. To better acquaint yourself with the players, check out The Athletic’s list of 200 players to watch at the 2026 World Cup.

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2

THE BIG STORY TODAY

Abu Dhabi returns to debt market via new tap issuances

Abu Dhabi has returned to debt markets with another USD 2.5 bn offering. The emirate raised the funds through two bond reopenings on 15 April, according to Department of Finance notices (pdf, pdf). The issuance included USD 1.5 bn of 5.0% notes due 2034 and USD 1 bn of 4.875% notes due 2029.

Both tranches were consolidated into existing bond series under Abu Dhabi's global medium-term note program, bringing each to USD 3 bn outstanding. The 2029 series has now three taps since April 2024, while the 2034 series has seen two over the same period.

SOUND SMART- Issuing existing lines makes it easier to roll over maturing bonds and quicker to re-invest since it's directed to current bondholders, many of whom are institutional, economist Hamzeh Al Gaood tells us.

REFRESHER- The issuance comes months after Abu Dhabi raised USD 3 bn from its first bond sale of 2026, a dual-tranche offering that attracted more than USD 12.7 bn in orders.

Why keep issuing? Abu Dhabi isn’t short on liquidity. Rather, “the bond issuance follows the pre-war pattern of issuing debt regardless of fiscal position, to help inject more capital without eroding reserves,” Al Gaood says. The emirate has increasingly used debt sales to maintain a benchmark yield curve and support the development of local and international debt markets, he previously told us. Government debt stood at just 17.4% of GDP at the end of 2024, well below peer medians.

The war impact: The debt management strategy has not shifted; rather, its end goal has shifted from purely diversifying sources of capital to injections aimed at mitigating some of the war's effects on the economy, he added.

The fiscal backdrop remains strong: Fitch has recently reaffirmed the emirate's AA sovereign rating with a stable outlook, citing “very strong fiscal and external metrics” and sovereign net foreign assets equivalent to around 291% of GDP. The agency expected borrowing to rise as Abu Dhabi increases support for key projects and government-related entities, but still views its balance sheet as among the strongest globally.

3

DEBT WATCH

DIB becomes second UAE bank to price an AT1 issuance since the war

Dubai Islamic Bank priced a USD 1 bn perpetual non-call six-year AT1 sukuk yesterday, drawing a book north of USD 2.3 bn, according to a disclosure (pdf) — a day after mandating the issuance. It was priced at a profit rate of 6.25%, or a reset spread of 191.10 bps over the interpolated US treasury rate, tightened slightly from initial price thoughts of 6.625%. The mudaraba paper will list on Euronext Dublin and Nasdaq Dubai.

The accelerated roadshow was deliberate: DIB credited a one-day virtual roadshow, launched Monday through a series of investor calls updating accounts on recent quarterly performance, to keep execution risk low in what it described as a volatile market environment. DIB is rated A3/A by Moody’s and Fitch.

Geographically, MENA investors took the lion’s share at 83%, with the UK, Europe, and other international investors absorbing the remaining 17%. By investor type, banks and private banks accounted for 77%, fund managers 21%, and ins. companies, pension funds, and sovereign wealth funds the remaining 2%.

ADVISORS- Our friends at HSBC and KFH Capital were joint leads on the transaction, alongside Arqaam Capital, ASB Capital, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, Mizuho, Sharjah Islamic Bank, Standard Chartered Bank, and Warba Bank.

In context

This is the latest signal that GCC paper is still in demand, despite ongoing geopolitical uncertainty and a slight premium still evident in most issuances. Two months into the ceasefire, three major UAE banks have already returned to debt markets — Emirates NBD with an AT1 issuance and First Abu Dhabi Bank with a USD 700 mn sukuk — and all three issuances saw oversubscription rates of more than 2x.

DIB is also the fifth Gulf bank into the AT1 pool since the war began, by our math, following Emirates NBD (USD 750 mn), Saudi Investment Bank (SAR 1.85 bn), Alinma Bank (twin SAR and USD issuances), and Oman Arab Bank (USD 400 mn).

4

M&A WATCH

L’imad ups Taqa stake

Abu Dhabi’s L’imad has increased its stake in Taqa, with one of its indirect subsidiaries — Abu Dhabi Power Corporation (AD Power) — taking over International Holding Company’s investment arm 2PointZero’s entire stake in the firm, according to bourse disclosures from the seller (pdf) and the target company (pdf).

The details: The takeover saw AD Power buy just shy of 9.1 bn shares in Taqa, which would value the transaction at AED 21.5 bn, according to our calculations based on Taqa’s’ closing price yesterday.

Post-transaction: Taqa said the transaction will increase Abu Dhabi Power’s stake by 8.09%, taking L’imad's ownership to 98.12% of the utility’s issued share capital.

Why does it matter? 2PointZero said the sale is part of its ongoing portfolio-optimization strategy. The move continues the group’s active reshaping of its investment portfolio following the merger of Multiply, Ghitha, and 2PointZero last year into a listed platform focused on the energy and consumer sectors.

One consolidation move after another: Since L’imad joined the sovereign wealth fund scene towards the end of last year, Abu Dhabi has been consolidating assets under the investor. It folded ADQ into L’imad at the start of the year, after a similar move with state-backed mobility investor Cyvn Holdings. L’imad has also wasted no time getting involved on the international investment scene, taking part in Paramount’s takeover of Warner Bros, as well as an infrastructure investment fund with BlackRock’s GIP and Adnoc.

2PointZero has also stayed busy on the dealmaking front, acquiring a majority stake inItaly’s Isem Packaging, agreeing to buy US-based Midstream Partners in a USD 2.3 bn transaction, and entering India's renewables market through a joint venture with Adani Green Energy. The Taqa exit suggests capital could be redeployed into the next phase of that strategy.

5

M&A WATCH

BlueFive Capital secures 49% stake in LeasePlan Emirates

Abu Dhabi-based alternative investment platform BlueFive Capital acquired a 49% stake in LeasePlan Emirates, giving it a foothold in a business that manages around 7k vehicles across the country, according to a press release.

The details: BlueFive bought the stake from French mobility company Ayvens via its Reef PE Fund I, but the exact price wasn’t disclosed. Post-transaction, ownership of LeasePlan is looking like an entirely Emirati affair, with Mubadala-owned consultancy Solutions+ remaining the majority shareholder with a 51% stake.

LeasePlan Emirates? The firm provides leasing and fleet management services to corporates, government entities, and individual customers in the UAE. The investment platform is looking to grow the business and pursue potential expansion in the region.

BACKGROUND- The acquisition is the latest transaction from BlueFive as it pushes ahead with its buy-and-build strategy since its 2024 launch. Some of its more recent high-profile transactions have been in the mobility sector. Earlier this month, the firm led a USD 250 mn funding round for UAE-based autonomous delivery startup CargoX, while last month, it agreed to acquire a 49% stake in fleet management company Massar Solutions from Taqa. It was also the largest investor in a consortium acquiring automaker Porsche’s stake in supercar brand Bugatti in April.

IN CONTEXT- Despite a recent push, BlueFive’s strategy seems to remain very much globally-focused, with plays in Saudi, China, the US, and Europe. The firm is pointing towards making defense its next big focus, working on raising USD 3 bn to invest in aerospace and defense.

6

MOVES

Bank of Singapore taps veteran banker as Middle East lead

Bank of Singapore tapped Lim Leong Guan (LinkedIn) as head of private banking for the Middle East, South Asia & International, as well as CEO of the bank’s DIFC branch, according to a press release. The appointment will come into effect on 1 July.

Lim is a private banking veteran with 35 years of industry experience. He most recently served as Bank of Singapore’s global head of financial intermediaries, family office, and wealth advisory, and his career includes tenures at OCBC Bank and UBS.

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ALSO ON OUR RADAR

AHS plans AED 25 bn mixed use project

AHS goes big on Dubai

Dubai-based developer AHS Properties has acquired the Shangri-La Dubai on Sheikh Zayed Road for AED 1.1 bn (USD 300 mn), The National and CoStar report. The 42-story mixed-use property includes a hotel, offices, residences, and F&B outlets, and comes amid a wider shift from Emirati developers toward recurring-income portfolios, as market uncertainty and geopolitical tensions reinforce demand for steadier cashflow.

An AED 25 bn mixed-use project is also in the pipeline, with AHS CEO Abbas Sajwani saying the developer plans to launch the project in 3Q. The development will include residential, office, and hospitality units, and would bring the company's total portfolio to around AED 50 bn.

The acquisition comes even as parts of Dubai’s property market show signs of cooling and regional tensions weigh on sentiment. Sajwani acknowledged a “natural slowdown” linked to the conflict but said demand remains resilient.

More solar energy incoming

The UAE is set to see more solar energy for residential and commercial projects after solar panel and energy storage player Ecohope Solar (which also has a UAE presence) linked up with China-based photovoltaic firm Trina Solar, according to a press release. The plan will see Ecohope buy and distribute 600 MW worth of the Chinese player’s solar PV modules for use in projects across the GCC and wider MENA region, as well as Southeast Asia.

IN CONTEXT- The UAE and China have recently collaborated on a number of solar energy projects. Masdar secured 2 GW of solar modules for Abu Dhabi’s first round-the-clock renewable energy project in May, while China’s Sepco3 secured the EPC contract for Abu Dhabi’s 1.5 GW Khazna Solar PV project at the end of last year.

CBD launches gold-backed working capital loans for bullion businesses

Commercial Bank Dubai is bringing gold directly into the credit equation with a new working capital product aimed at companies operating in the precious metals space, linking financing to the same asset they trade to reduce exposure to price swings and simplify liquidity management, according to a press release.

The idea: The bank’s specialized Gold Metal Loan facility allows firms to borrow and repay in gold rather than traditional currency to better fit with inventory cycles. Transactions are processed electronically through approved bullion trading patterns, and loans are denominated in ounces of gold and priced using global gold lease rates, adjusted according to each borrower’s credit profile.

ICYMI- Gold is increasingly being used in financing and investment platforms, with the likes of O Gold, Oro Labs, and Botim launching gold-based trading and ownership options so far.

Al Bayader to invest AED 180 mn in Dubai packaging and logistics hub

Dubai-based food packaging manufacturer Al Bayader International is putting AED 180 mn behind a new manufacturing and logistics hub in Dubai to boost local packaging production for GCC customers, according to Dubai Media Office.

The plan: The development will combine manufacturing, distribution, warehousing, and a fulfillment center, and also serve as the firm’s headquarters. Construction is scheduled to begin in 2026, with full operations expected by early 2028. Once operational, the 678k sq ft facility will produce up to 30k tons of packaging per year.

More in the pipeline? Additional production lines for aluminum- and bio-based packaging solutions will be introduced over time to serve regional and international markets.

8

PLANET FINANCE

Resilient — for now

Fitch turns bearish: Fitch revised its 2026 global sovereign sector outlook to “deteriorating” from the “neutral” stance held in its late-2025 report, citing the economic and security fallout from the US-Iran war, according to the ratings agency’s mid-year outlook report shared with EnterpriseAM. The revision covers every major region Fitch tracks (except for China) — and the Middle East bears the brunt of the damage.

Ratings watch for most in the region, including Qatar and Ras Al Khaimah, has turned negative, with no positive outlooks regionwide, Fitch says.

The agency’s base case is where the Strait of Hormuz begins to reopen around July on the back of a US-Iran understanding, with oil production recovering quickly, given that infrastructure has largely escaped serious damage. Brent is now penciled in at USD 87 / bbl for 2026, up sharply from USD 68.3 / bbl last year — a windfall for Gulf exporters but a headache for import-dependent economies like Egypt and Jordan in the broader region.

This is despite GCC ratings remaining resilient so far through the war. “Most GCC sovereign ratings have been resilient to the war due to generally very strong sovereign balance sheets backed by alternative export channels (Oman, Saudi Arabia and UAE/Abu Dhabi) or prospects for additional support (Bahrain),” Paul Gamble, head of Middle East/Africa sovereigns at Fitch, said.

The outlook is still pretty bleak for the region: “Security conditions will continue to test this near-term resilience and there will be a lasting adverse impact on the security and business environment,” Gamble said.

ADX

9,577

+0.2% (YTD: -4.2%)

DFM

5,757

-0.5% (YTD: -4.8%)

Nasdaq Dubai UAE20

4,429

-0.4% (YTD: -9.4%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

3.4% o/n

4.1% 1 yr

TASI

11,013

-0.9% (YTD: +5.0%)

EGX30

51,257

-2.1% (YTD: +22.5%)

S&P 500

7,267

-1.6% (YTD: +6.2%)

FTSE 100

10,255

+0.3% (YTD: +3.3%)

Euro Stoxx 50

6,010

-0.7% (YTD: +3.7%)

Brent crude

USD 94.66

+1.7%

Natural gas (Nymex)

USD 3.20

+0.4%

Gold

USD 4,110

-0.6%

BTC

USD 62,138

+0.7% (YTD: -29.1%)

Chimera JP Morgan UAE Bond UCITS ETF

AED 3.71

+0.3% (YTD: -1.1%)

S&P MENA Bond & Sukuk

151.51

+0.1% (YTD: -0.3%)

VIX (Volatility Index)

22.22

+11.8% (YTD: +48.6%)

THE CLOSING BELL-

The DFM fell 0.5% yesterday on turnover of AED 845.3 mn. The index is down 4.8% YTD.

In the green: Ekttitab Holding Company (+3.8%), Al Firdous Holding (+2.6%), and Talabat Holding(+2.3%).

In the red: Taaleem Holdings (-5.0%), Dubai Refreshment Company (-4.6%), and Al Ramz Corporation Investment and Development (-4.5%).

Over on the ADX, the index rose 0.2% on turnover of AED 785.6 mn. Meanwhile, Nasdaq Dubai was down 0.4%.


JUNE

1-12 June (Monday-Friday): Subscription period for Emirates NBD’s mandatory open offer for 26% of India’s RBL Bank.

15 June-15 September (Monday-Thursday): Dubai Mallathon, Dubai.

17 June (Wednesday): Investopia Global Talks, Tashkent, Uzbekistan.

22-24 June (Monday-Wednesday): The International Glass Manufacturing Show, Dubai.

SEPTEMBER

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

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

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

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

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

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

OCTOBER

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

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

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

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

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

30 October (Friday): Large businesses achieving annual revenues equal to or above AED 50 mn must appoint an accredited service provider for e-invoicing implementation.

Signposted to happen sometime in October 2026:

  • Abu Dhabi Space Week, Abu Dhabi.

NOVEMBER

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

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

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

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

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

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

DECEMBER

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

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

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

Signposted to happen sometime in 2027:

  • 1 January: Deadline for large businesses to implement e-invoicing;
  • 1Q 2027: Completion of the first phase of Hassyan seawater desalination project;
  • 1-3 February (Monday-Wednesday): World Governments Summit;
  • 31 March: Small businesses with annual revenues of less than AED 50 mn are obliged to contract with an accredited service provider for e-invoicing implementation;
  • 31 March: Government entities are required to appoint an accredited service provider for e-invoicing implementation;
  • 21-22 April (Wednesday-Thursday): Token2049, Dubai;
  • 1 July: Deadline for small businesses to implement e-invoicing;
  • 1 October: Deadline for governments to implement e-invoicing;
  • Abu Dhabi’s solar and battery energy facility, combining 5.2 GW of solar capacity and 19 GWh of battery storage, is set for commissioning.

Signposted to happen sometime in 2028:

Signposted to happen sometime in 2029:

  • Sibos 2029 organized by the Society for Worldwide Interbank Financial Telecommunication (SWIFT), Dubai;
  • Annual Meetings of the World Bank Group and the International Monetary Fund, Abu Dhabi;
  • The commissioning of the seventh phase of Mohammed bin Rashid Al Maktoum Solar Park.
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