Debt maturities for UAE corporates by 2030 sit at USD 136.2 bn

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1

BUDGET WATCH

Sharjah posts new 2026 budget at AED 44.5 bn

Sharjah gov’t approves record budget for next year: Sharjah ruler Sultan bin Mohammed Al Qasimi approved the emirate’s 2026 general budget, setting total expenditure at a record high of AED 44.5 bn, up 3% y-o-y, state news agency Wam reports.

New year, new record: The previous budget for 2025 was set at AED 42 bn, marking a 2% increase as well as the emirate’s largest budget to date at the time.

The breakdown: Some 35% of total expenditure will go towards capital projects, while salaries and wages will see 30%, according to Wam. Operating expenses are set to receive 25%, the subsidies and aid budget is 12% of the total, and 15% will go to loan repayments and interest — down 1 percentage point from last year.

Once again, the infrastructure sector is getting the largest share of total expenditure at 35%, albeit at a 6 percentage point decrease y-o-y. The economic development sector follows at a close second with 30%, up 3 percentage points, while social development spending stands at 23% (+1 pp). Government administration, security, and safety account for the remaining 12% (+2 pp).

Where will the inflows come from? Sharjah projects a 26% increase in total public revenues in 2026. Operative revenues make up 69% of total income, while capital revenues account for 10%, up 35% y-o-y. Tax revenues are set to rise sharply, doubling compared to 2025 and representing 16% of total revenues, while customs contribute 3%. Oil and gas remain at 2%.

The wider take: In October, the UAE’s cabinet greenlit a record AED 92.4 bn budget for next year, earmarking a 29.2% y-o-y leap in expenditures as revenues are set to hold steady at AED 92.4 bn.

2

UAE IN THE NEWS

Dubai is building the region’s data-center economy by design, not scale

Dubai is building the region’s data-center economy by design, not brute force, JLL’s Data Center Lead Priyanka Nagpal said on Live, Work & Play in Dubai (watch, runtime: 30:00). Rather than chasing headline MWs, the emirate is prioritizing connectivity, government regulation, and infrastructure that can support cross-border data flows as AI scales and data-localization rules tighten.

Geography is the edge: Dubai’s dense web of submarine cable landing stations linking Europe, Africa, and Asia has turned it into what Nagpal called a “digital bridge,” allowing operators to serve multiple jurisdictions without sacrificing latency, and positioning Dubai as a key driver of regional growth.

PLUS- When AI rewrites the plumbing, Dubai adapts: Power-hungry workloads are pushing higher rack densities and forcing new approaches to cooling and efficiency, widening the field beyond hyperscalers, Nagpal said. Renewables are part of the emirate’s pitch, anchored by the Mohammed bin Rashid Al Maktoum Solar Park, now in its seventh phase.

Background: Dubai’s design-first strategy is already translating into concrete buildout. UAE data-center capacity is forecast to jump 165% by 2028, according to previous Emirates NBD research. Recent moves we’ve covered include:

3

ALSO ON OUR RADAR

Bank of Palestine to roll out ADGM office with FSRA license

Bank of Palestine secures ADGM approval:

Bank of Palestine expands into Abu Dhabi: Bank of Palestine received in-principle approval from ADGM’s Financial Services Regulatory Authority for a Category 1 banking license, according to a press release. The license will allow the bank to accept deposits and arrange investment agreements from ADGM when it is up and running in 2H 2026, as it seeks to scale its reach to the Palestinian diaspora. The bank tapped Linda Tarazi (LinkedIn) as chief executive of the new ADGM-based entity, and already has a representative office in the UAE through its DIFC office.

4

PLANET FINANCE

AI startups lock in years of runway as investors brace for turbulence

AI startups are stockpiling liquidity. Global AI companies raised a record USD 150 bn in 2025, building multi-year funding cushions to brace against a possible sector downturn as investors grow wary that the boom could falter, the Financial Times reports.

The buffers aren’t evenly spread: A handful of mega-rounds — OpenAI’s USD 41 bn round, Anthropic’s USD 13 bn round, and Meta’s USD 14 bn investment into Scale AI — did most of the work, concentrating firepower among a small group of perceived outperformers, as investors look to tap into more certain ventures.

Those leaders now sit on four to five years of runway, far above historical norms, after locking in capital at peak valuations. Rather than the usual break of several years between funding rounds, AI heavyweights have only been waiting a few months recently before raising more capital — partially as a result of costly operational needs.

The playbook has shifted from scaling fast to staying above water. Investors are pushing founders to raise early and raise big, even at the cost of dilution. “When the market is providing the option, build a fortress balance sheet,” said Lucas Swisher of Coatue.

Liquidity doubles as leverage: Deep war chests let top firms outspend rivals on talent, compute, and infrastructure — and move fast on consolidation if sentiment turns. “It’ll be like an acquisition a week the minute there’s a spook in the public markets,” said Jeremy Kranz of Sentinel Global.

Why this caution makes sense: The AI boom rests on fragile plumbing, from self-reinforcingBig Tech financing loops to off-balance-sheet infrastructure funding that obscures leverage.

MARKETS THIS MORNING-

Asia-Pacific markets are having another mixed morning on the second-to-last trading day of the year. Japan’s Nikkei is slightly in the red in early trading, while Hong Kong’s Hang Seng Index is in the green, and the Shanghai Composite is essentially flat. Across the pond, it’s looking decidedly more red, with US futures suggesting the Dow Jones, S&P 500, and Nasdaq will all open lower later today.

ADX

10,061

+0.3% (YTD: +6.8%)

DFM

6,137

+0.1% (YTD: +18.9%)

Nasdaq Dubai UAE20

4,933

+0.3% (YTD: +18.5%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

3.7% o/n

3.6% 1 yr

TASI

10,490

+0.7% (YTD: -12.9%)

EGX30

41,732

+0.3% (YTD: +40.3%)

S&P 500

6,906

-0.4% (YTD: +17.4%)

FTSE 100

9,867

0.0% (YTD: +20.7%)

Euro Stoxx 50

5,752

+0.1% (YTD: +17.5%)

Brent crude

USD 61.94

+2.1%

Natural gas (Nymex)

USD 3.95

-0.9%

Gold

USD 4,357

+0.3%

BTC

USD 87,125

-1.3% (YTD: -6.7%)

Chimera JP Morgan UAE Bond UCITS ETF

AED 3.81

+1.3% (YTD: +9.4%)

S&P MENA Bond & Sukuk

151.73

+0.1% (YTD: +8.4%)

VIX (Volatility Index)

14.20

+4.4% (YTD: -18.2%)

THE CLOSING BELL-

The DFM rose 0.1% yesterday on turnover of AED 314.1 mn. The index is up 18.9% YTD.

In the green: Al Salam Sudan (+14.9%), United Foods Company (+5.8%) and Dubai Islamic Ins. and Reins. Co. (+2.9%).

In the red: Watania International Holding (-4.8%), Islamic Arab Ins. Company (-4.0%) and Takaful Emarat (-3.2%).

Over on the ADX, the index rose 0.3% on turnover of AED 2.6 bn. Meanwhile, Nasdaq Dubai was up 0.3%.


DECEMBER

29-30 December (Monday-Tuesday): World Sports Summit, Dubai.

2026

JANUARY

1 January (Thursday): New Year, public holiday.

1 January: Client asset regime changes in Dubai International Financial Center take effect.

1 January: Amendments to the Tax Procedures Law and the UAE VAT Law come into effect.

9-11 January (Friday-Sunday): 1 Bn Followers Summit, UAE.

11-12 January (Sunday-Monday): IRENA Assembly, Adnec Center, Abu Dhabi.


11-15 January (Sunday-Thursday):
Abu Dhabi Sustainability Week, Adnec Center, Abu Dhabi.


11-15 January (Sunday-Thursday):
ADSW Dialogues, Adnec Center, Abu Dhabi.


11-15 January (Sunday-Thursday):
WiSER Forum, Adnec Center, Abu Dhabi.

12-15 January (Monday-Thursday): Dubai International Project Management Forum, Madinat Jumeirah, Dubai.

12-15 January (Monday-Thursday): SteelFab, Expo Center, Sharjah.


13-15 January (Tuesday-Thursday):
World Future Energy Summit, Adnec Center, Abu Dhabi.

13-15 January (Tuesday-Thursday): FESPA Middle East, Dubai Exhibition Center, Dubai.


14 January (Wednesday):
Global South Utilities Forum, Adnec Center, Abu Dhabi.


15 January (Thursday): Global Climate Finance Center Annual Meeting, Adnec Center, Abu Dhabi.


15 January (Thursday):
Green Hydrogen Summit, Adnec Center, Abu Dhabi.

21-24 January (Wednesday-Saturday): Acres Real Estate Exhibition, Expo Center, Sharjah.

28-29 January (Wednesday-Thursday): IBA Arbitration Day Conference, Abu Dhabi.

28-30 January (Wednesday-Friday): World Customs Organization Technology Conference, Adnec Center, Abu Dhabi.

31 January - 7 February (Saturday-Saturday): Mubadala Abu Dhabi Open, International Tennis Center, Zayed Sports City.

FEBRUARY

3-5 February (Tuesday-Thursday): The World Governments Summit, Dubai.

4-6 February (Wednesday-Friday): Arab Actuarial Conference, Millennium Plaza Downtown Hotel, Dubai.

12-15 February (Thursday-Sunday): The Society for Incentive Travel Excellence Global Conference, Abu Dhabi.

9-12 February (Monday-Friday): World Health Expo (WHX), Dubai.

10-11 February (Tuesday-Wednesday): Top Advisors and Investors Summit, Abu Dhabi.

MARCH

31 March - 2 April (Tuesday-Thursday): Arab Media Summit, Dubai.

26-28 March (Thursday-Saturday): Social Capital Conference, Dubai.

28-29 March (Saturday-Sunday): Emirates International Congress on AI & Visionary Leadership in Transforming Healthcare, Adnec Center Abu Dhabi.

30 March - 2 April (Monday-Thursday): IAAPA Middle East Exhibition and Conference, Adnec Center, Abu Dhabi.

APRIL

7-9 April (Tuesday-Thursday): Future Health Summit, Adnec Center Abu Dhabi.

13-15 April (Monday-Wednesday): AIM Congress, Dubai World Trade Center.

13-15 April (Monday-Wednesday): The International Glass Manufacturing Show, Dubai.

14-16 April: (Tuesday-Thursday): the International Property Show, Sheikh Zayed Rd, Dubai.

21-23 April (Tuesday-Thursday): UITP Public Transport Summit, Dubai.

MAY

11-15 May (Monday-Friday): Dubai Future Finance Week, Dubai.

11-13 May (Monday-Wednesday): AI Everything Global, Adnec Center.

19-20 May (Tuesday-Wednesday): Capital Market Summit, Madinat Jumeirah, Dubai.

19-22 May (Tuesday-Friday): Abu Dhabi Water and Energy Week, Adnec Center, Abu Dhabi.

JUNE

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

JULY

31 July (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.

DECEMBER

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

Signposted to happen in 2026:

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;
  • 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;
  • 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 2029:

  • Sibos 2029 organized by the Society for Worldwide Interbank Financial Telecommunication (SWIFT), Dubai;
  • The commissioning of the seventh phase of Mohammed bin Rashid Al Maktoum Solar Park.
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