DFSA shifts crypto oversight responsibilities onto firms

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Somalia cancels ports, defense contracts with the UAE + Emirates NBD tees up debut AED-denominated DNN notes

Good morning, lovely people. The big theme this morning is looking back at 2025 — from IPOs and venture capital trends to real estate sales and prices in Dubai. But the big story of the day is a major regulatory change from the Dubai Financial Services Authority, which has done away with its recognized crypto token list and has shifted responsibility for crypto token “suitability” onto firms. Plus: It removed crypto investment caps for fund managers.

The move allows firms and funds a lot more flexibility to hike (and diversify) crypto exposure, but this comes with a much heftier compliance burden.

Happening today

Abu Dhabi Sustainability Week kicked off earlier this week and runs until Thursday, 15 January at the Adnec Center, bringing together global leaders to discuss sustainability action across interconnected systems. Heads of state including Philippines’ Ferdinand Marcos Jr, South Africa’s Cyril Ramaphosa, and Nigeria’s Bola Tinubu are among those expected to attend.

The week’s program includes:

The World Future Energy Summit, which runs from today until Thursday;
The ADSW Dialogues and Wiser Forum, which kicked off Sunday and run through to Thursday;
The Global South Utilities Forum, taking place tomorrow;
The Global Climate Finance Center Annual Meeting and Green Hydrogen Summit, which close the summit on Thursday.

Other conferences coming up this week:

Industrial trade show SteelFab kicked off yesterday and runs through Thursday at the Expo Center Sharjah;
The Dubai International Project Management Forum kicked off yesterday and runs through Thursday in Dubai;
Fespa Middle East begins today and runs until Thursday at the Dubai Exhibition Center.

WEATHER- Near-zero visibility? Be careful while driving this morning — a thick fog is expected in the early hours of the morning across the UAE, according to the National Center of Meteorology. Meanwhile, the mercury is set to peak at 25°C in Dubai and Abu Dhabi, with Dubai seeing an overnight low of 17°C, and the capital seeing a low of 15°C.

Watch this space

PORTS — Somalia’s government said it is annulling all of its contracts for ports, defense, and security with the UAE over what its Council of Ministers said were “actions undermining [its] national security,” Reuters reports, citing a government statement.

DP World has been working on developing the port of Berbera in Somaliland, a breakaway region in Somalia, the independence of which was recently recognized by Israel in a move condemned by the UAE and other countries as attacking Somalia’s sovereignty.

DEBT — Emirates NBD is teeing up an issuance of digitally native notes (DNN), in what would be its first-ever offering of the kind, Zawya reports. The DFM-listed lender tapped banks for an AED-denominated, Reg S three-year fixed-rate note to be issued under its USD 20 bn Medium-Term Note (EMTN) program. This comes a little less than a week after the lender raised USD 1 bn split between blue and green bond tranches that were over 2x oversubscribed.

Sound smart: For investors, a DNN looks and behaves like any other fixed-rate note; for issuers, the advantage lies in faster settlement and more efficient post-trade processing.

ADVISORS- Our friends at Mashreq alongside Emirates NBD Capital, First Abu Dhabi Bank, and Standard Chartered are joint lead managers and bookrunners on the transaction, with Emirates NBD Capital and Standard Chartered acting as joint DNN structurers.

FX — The USD is on track for another weak year in 2026 as political pressure on the Federal Reserve and internal policy splits cloud the greenback’s outlook, according to a recent Emirates NBD research note. For the UAE, whose currency is pegged to the USD, this a tailwind for non-oil exports that offsets the sting of more expensive European imports.

Unlocking liquidity: Regional central banks are expected to mirror a projected 75 bps Fed rate cut in 2026. This easing is anticipated to stimulate domestic demand by freeing up corporate capital for capex and investment that was previously sidelined by high borrowing costs. The region’s solid credit standing is likely to buffer against potential US Treasury volatility, keeping borrowing costs stable and fueling non-oil economic expansion.

BANKING — CI Capital bullish on UAE banks: UAE banks face an “upbeat” mid-term outlook, driven by solid fundamentals and a favorable macro environment, according to a CI Capital report picked up by Zawya.

The scorecard: Abu Dhabi Commercial Bank takes the regional top spot for its growth profile, while Emirates NBD replaces First Abu Dhabi Bank due to margin tailwinds from its Turkish operations. Saudi National Bank remains the firm’s “top fundamental pick” in MENA, joined by Al Rajhi Bank, which stands to benefit from the removal of foreign ownership limits on the Tadawul exchange. Saudi Awwal Bank and Kuwait’s NBK also made the top-tier cut.

INVESTMENT — GFH Partners is targeting an increase in its assets under management by at least USD 1 bn over the next 12 months, aiming to reach USD 7.5 bn by year-end, CEO Nael Mustafa told CNBC Arabia (watch, runtime: 4:40). The firm also plans to open three new funds in 1Q, and is set to acquire income-generating assets in Saudi Arabia, as well as launch a new storage facility development in Riyadh.

JOBS — Some 72% of professionals plan to switch jobs in 2026, even as 65% say finding a role has become harder over the past year, according to LinkedIn data cited by Gulf News. That follows a strong hiring run in 2Q (up 4% q-o-q) and 3Q 2025 (up 3% q-o-q) — the fastest pace in the GCC.

Competition is the choke point: An overcrowded candidate pool is now the biggest hurdle for 63% of jobseekers, with the squeeze most acute in tech, finance, marketing, aviation, hospitality, and healthcare.

GO DEEPER: This overcrowding is also starting to show up in pay trends: As we’ve previously reported, Cooper Fitch expects UAE salary growth to cool to 1.6% in 2026, as labor supply outpaces demand, though CEO Trefor Murphy says this won’t derail hiring or the UAE’s pull for global talent.

The hiring process is getting murkier: Some 35% of jobseekers say they receive no response at all after applying — as AI also tightens the funnel. While 81% of professionals say they’re confident using AI at work, 56% don’t understand how it affects their visibility, and 46% aren’t sure how to stand out when algorithms screen applications. On the hiring side, 68% of recruiters aren’t fully grasping how AI is affecting the hiring process.

Pressure cuts both ways: Three in four hiring professionals say it’s harder to find qualified talent, pointing to a widening mismatch between roles on offer and skills in demand — leaving a market that’s active, selective, and increasingly unforgiving on both sides.

The big story abroad

The escalation of US President Donald Trump’s fight against US Federal Reserve Chair Jerome Powell via a criminal probe has drawn pushback from Republican senators as well as former Central Bank governors, as the move threatens to backfire and lead to wider support of the Fed chair. Senator Thom Tillis, a Republican on the Banking Committee, which vets Fed nominees, vowed to oppose any Trump nominees to the Fed until the matter is resolved, while several other senators have spoken out against threats to the Fed’s independence.

Some analysts have also said the move will likely push Powell to stay on the Board of Governors, where his term ends in 2028, in defiance and in order to protect the Fed’s independence.

Meanwhile, former Fed Chairs Janet Yellen, Ben Bernanke and Alan Greenspan wrote a statement denouncing the move, saying:” This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly.”

Even US Treasury Secretary ‍Scott Bessent told Trump on Sunday that the investigation “made a mess” and could be bad for financial markets, Axios reported on Monday, citing two sources.

Markets have so far shrugged off the drama, with Wall Street notching record highs, while yields on US 10-year notes and gold prices surged before steadying slightly, and the USD fell.

^^The must-read on the topic: Trump administration probe of Fed’s Powell sparks pushback

If that wasn’t enough drama for Trump, he has also threatened credit card issuers that charge high interest rates, calling for a 10% cap, and threatened a 25% tariff on countries that “do business” with Iran. White House Press Secretary Karoline Leavitt has also said the US is “unafraid to use military force” with Iran, echoing statements made against Greenland earlier last week.

Meanwhile, other business headlines getting attention:

Paramount Skydance has now sued Warner Bros for more information on Netflix’s takeover bid after Warner Bros’ board rejected its Gulf-backed bid last week. (Reuters)
Apple will use Google’s Gemini for its revamped Siri in a major vote of confidence for Google in the ongoing AI race. The agreement prompted a 1% rise in Google owner Alphabet, pushing its market cap past the USD 4 tn mark. (Bloomberg)

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DFSA hands crypto oversight to firms

The Dubai Financial Services Authority (DFSA) has formally dismantled its central Recognized Crypto Token list, shifting responsibility for crypto token suitability squarely onto regulated firms in a structural reset that liberalizes market access while sharply increasing firm-level liability, according to a disclosure. The new rules have taken effect as of yesterday.

ICYMI- The move follows a consultation paper issued last October, which proposed shifting responsibility for determining whether tokens are suitable for use in the Dubai International Financial Center (DIFC) away from the regulator onto firms.

How did it work before — and how will it work now? Previously, the regulator curated and held a list of approved tokens, but now firms can only engage with tokens they have internally assessed as suitable. Fiat-referenced crypto tokens remain subject to DFSA-level sc rutiny under a separate policy framework.

Who should do what: Boards and senior management are now directly accountable for conducting and documenting due diligence on the provenance and governance of a token, its status in other jurisdictions and whether other regulators have greenlit it, its liquidating and trading activity, and general compliance with DFSA legislation.

Funds rules have also been materially loosened: The DFSA has removed thresholds and structural restrictions on the amount funds can invest in crypto tokens, provided managers carry out appropriate suitability assessments and apply robust risk, custody, and disclosure controls, opening the door for significantly higher crypto exposure for investors.

Safeguards tighten as flexibility expands: Firms are now required to maintain ongoing monitoring and reporting obligations, though it’s not clear exactly how often they are required to file returns. The consultation paper had proposed monthly returns, with fixed penalties for late filings.

Implemented largely as proposed: While the main proposals of shifting responsibility and fund liberalization went ahead, the new updates stopped short of specifying a fixed reporting frequency, as opposed to the monthly requirement proposed in the consultation paper. The DFSA described the reporting obligations instead as “proportional” and “risk-based,” but did provide suitability guideli nes.

Why it matters

This is a decisive transfer of risk and responsibility. The responsibility shift increases operational burden and exposure for firms, but allows more flexibility for crypto exposure and investments. For the DIFC, the move aligns the regime more closely with global regulatory approaches that favor principles-based oversight over prescriptive asset lists.

What’s next

Timeline: The consultation paper had said that tokens previously recognized by the DFSA were set to remain suitable for a limited transition period, noting that firms must complete and document their own suitability assessments by 12 April, after which the DFSA’s recognized list will fall away entirely.

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

The UAE saw the third highest VC funding flows across emerging venture markets

The UAE is becoming a regional liquidity hub for venture capital, securing the third-highest VC funding among emerging venture markets (EVMs) in 2025, according to Magnitt’s annual report and a separate press release (pdf). Startups in the country raised USD 1.6 bn across 231 transactions, marking a 67% y-o-y increase. The performance was driven by growth in both later-stage mega-transactions and earlier-stage, non-mega transactions.

The country is shifting from a startup magnet to an exit engine, with some 17 exits taking place through M&A — the highest among EVMs — signaling a transition to more sophisticated liquidity.

UAE investors portfolios now account for 4% of all capital flowing into EVMs, with Abu Dhabi-based firm +VC ranking third globally among VC investors in EMVs by transaction count, deploying USD 6.3 mn across 49 transactions.

The return of mega-rounds and an AI focus defined the year. UAE-based XPanceo’s USD 250 mn Series A round and Airalo’s USD 220 mn Series C ranked third and fourth among the largest EVM transactions by funding in 2025. The country witnessed USD 653 mn in mega-transactions by 9M 2025 after none were recorded in 2024. It was also the MENA region’s biggest market for AI funding in 1H 2025, with USD 125 mn raised across 35 transactions.

Zooming out

The Middle East raised an all-time high of USD 3.4 bn in 2025 and was the only region among emerging venture markets to see an increase in transaction volume — which grew 13% to 581 transactions — surpassing Southeast Asia for the first time.

Saudi Arabia took the lead, securing USD 1.7 bn in investments, trailing only Singapore globally, which raised USD 3.1 bn. The region saw a record USD 1 bn in mega-transactions, supported by the return of late-stage liquidity, stronger diplomatic ties, and rising investor confidence. Overall, the MENA region raised USD 3.8 bn in VC funding.

This came down to both regional strength and weakness in Southeast Asia, where early-stage transactions fell 46% y-o-y to their lowest level in over a decade, Magnitt Research Department Manager Farah El Nahlawi told EnterpriseAM. Early-stage pipelines in the GCC stayed active due to domestic capital and government-backed programs, while late-stage liquidity returned through several very large rounds, El Nahlawi said. Events like Leap, FII, and Abu Dhabi Finance Week also helped attract investors and sustain momentum.

Where did the money go? The fintech sector took the regional lead in 2025, with funding reaching USD 1 bn. E-commerce came in second with USD 494 mn raised, followed by sports and fitness (USD 309 mn), telecommunications (USD 236 mn), and enterprise software (USD 184 mn). Meanwhile, MENA AI-related company funding jumped 204% y-o-y to USD 817 mn.

The region’s capital is becoming selective, with global VCs leading more rounds

MENA venture and broader private capital became more selective in 2025, with due diligence shifting from a focus on momentum to fundamentals, scale, and clear routes to liquidity, Magnitt CEO Philip Bahoshy said. On the M&A front, a recent rise in activity points to a more mature ecosystem and a desire to acquire tech capabilities rather than build them internally, TaylorWessing Partner Abdullah Mutwai said.

Global VCs began leading more rounds in the region, especially from Series A onward, as risk is becoming clearer, El Nahlawi told us. Institutional investors gained confidence in enforcement, shareholder protections, and downside outcomes, particularly in the UAE and Saudi Arabia. Meanwhile, faster-scaling founders, stronger governance, and increasingly tangible exits reduced execution risk. That confidence was reinforced geopolitically by US President Donald Trump’s first visit to Saudi Arabia and the UAE, signaling long-term US commitment and stability.

What’s next

Looking ahead, the outlook for the UAE in 2026 is for consistency rather than dominance, with transaction activity expected to remain stable, El Nahlawi told us. Total funding is expected to fluctuate year to year, reflecting the nature of large growth rounds and broader global risk appetite.

Regionally, the Middle Eastern VC ecosystem is entering a more mature and competitive phase, where the focus shifts from capital availability to where it concentrates, how risk is priced, and whether liquidity pathways begin to open.

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Real estate sales rise to near AED 1 tn mark in Dubai amid strong demand for ultra-prime homes

AED 917 bn — This was the value of Dubai’s 270k real estate transactions in 2025, putting the emirate within striking distance of its AED 1 tn target (which Dubai hopes to reach by 2033) well ahead of schedule, Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum said in an X post. Transaction volumes and values were both up 20% y-o-y, while the number of new resident investors was up 23% y-o-y, and foreign investors accounted for 14% of total real estate investments.

Luxury is doing much of the heavy lifting: Some 500 USD 10 mn+ homes were sold in Dubai last year, putting the luxury residential market at an all-time high, according to a Knight Frank press release (pdf). The results make Dubai the busiest market globally for USD 10 mn+ homes.

This figure includes a record 68 homes transacting for over USD 25 mn, representing a 45% y-o-y jump. The total value of high-end transactions rose 27.7% y-o-y to USD 9.1 bn, and 4Q saw 143 transactions closed — up 39% q-o-q.

What’s driving the sales? Analysts have attributed this meteoric rise — surging from just 300 sales in 2020 — to the influx of international high-net-worth individuals permanently settling in Dubai.

The market is now primarily dominated by user-end activity, moving beyond speculative investment, with Dubai’s real estate market transitioning to an “established” market, Knight Frank said. While the five-year price rally is slowing, prime values are still forecast to expand by a further 3% this year.

Demand has yet to abate, with “sales happening faster than the stock is being replenished,” Knight Frank MENA’s head of research Faisal Durrani told EnterpriseAM UAE.

By district: Palm Jumeirah saw the most sales, with 28 USD 10 mn+ transactions, although the upcoming Palm Jebel Ali followed close behind with 22. The quarter also saw a new record for a UAE penthouse purchase, with an apartment in Business Bay’s Binghatti Residences selling for AED 550 mn (USD 149.7 mn).

The good news for prospective home buyers is: Prices are cooling despite the momentum. Price growth across the emirate has eased to 10% in 3Q of last year, down from 3Q 2024’s 16% high and suggesting the market is past its peak, Faisal Durrani told us. He chalks this up to regular cyclic price changes, though, saying that “while moderation in house price growth rates is inevitable, the structural drivers of demand — population expansion, wealth migration, and economic diversification — remain firmly intact.”

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

HSBC launches onshore funds

HSBC goes onshore in the UAE with 10 SCA-registered funds: HSBC has become the first global asset manager to launch a fully onshore fund platform in the UAE, registering 10 new investment funds with the Securities and Commodities Authority (SCA) and opening a dedicated Dubai branch for the platform, according to a statement (pdf).

Why it matters: The move marks a shift from the lender’s offshore, DIFC-only model to UAE-domiciled funds, which reduce tax and compliance friction compared with offshore vehicles. The new onshore funds span multiple asset classes, from US income to shariah multi-asset and India fixed income, to target both retail and institutional investors.

James Grist (LinkedIn) has been appointed general manager of the new entity, responsible for developing the platform and expanding regional investment capabilities

The move comes against the backdrop of a wider restructuring that has seen the bank scale back its operations in some countries to focus more on growth areas in regions like Asia and the Middle East.

It also comes after the Securities and Commodities Authority began encouraging domestic funds after prohibiting foreign-domiciled funds from being publicly offered to retail investors, encouraging asset managers to launch onshore or feeder funds instead.

Barjeel Geojit launches UAE feeder fund

SPEAKING OF — Non-banking financial services firm Barjeel Geojit launched a new feeder fund after receiving a mainland investment fund management license from the SCA, according to a press release.

The details: The Barjeel Geojit India Opportunities Fund (BGIOF), a UAE-regulated mainland umbrella fund, is a USD-dominated fund, with a minimum investment of USD 5k, designed to provide investors of all nationalities — except those in the US — with diversified exposure and managed access to 10 Indian equity sub-funds. Each subfund is invested in a single, UCITs-regulated master fund centered on Indian equities. Subscription to the fund is open from 14 January to 13 February.

REFRESHER- Feeder funds are a set of sub-funds that democratize retail investors’ access to hard-to-reach global investments by pooling capital into one master fund as a single institutional block. Recent launches include those from Pimco and DIFC-based Aditum Investment Management last July, as well as Franklin Templeton.

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Why AI in finance is a people story

The UAE’s visionary AI Strategy 2031 is the blueprint for our country’s next economic era. As His Highness Sheikh Mohammed bin Rashid Al Maktoum rightly stated, “The future belongs to those who can imagine it, design it, and execute it.” This sentiment perfectly captures the challenge and opportunity for embedding AI into how we work and make decisions. Since 2024, the UAE has already invested bns in AI and continues to accelerate these efforts.

Investments are coming largely from global technology leaders, like Microsoft, which has committed USD 15.2 bn to AI and cloud infrastructure in the UAE through 2029. The UAE also established a dedicated AI investment vehicle, MGX Fund Management Limited, targeting USD 100 bn in AI-related assets. In parallel, the UAE-US AI Acceleration Partnership enables access to advanced AI semiconductors for Emirati AI company G42, strengthening high-performance computing capabilities. Additionally, the UAE recently launched the USD 1 bn ‘AI for Development’ initiative to expand AI infrastructure and services across Africa. Collectively, these efforts underscore the UAE’s ambition to become a global AI leader by 2031.

For the financial sector in the UAE, this represents a clear call to action to accelerate AI adoption and actively design the future.

At Mashreq, this vision is driving a fundamental transformation of the bank. We aim to continue our growth path with our current global workforce. Digitalization, fueled by AI, is simplifying and scaling processes, improving information quality and controls, enhancing client experience, and enabling faster, better business decisions. This progress is reflected in award-winning, in-house AI platforms, including Eagle Eye, our financial crime and compliance investigations system, and Cypher, an AI-powered reconciliation investigation platform.

The next phase will move beyond performance management based on historical data towards predictive insight and early intervention. AI-driven analytics is reshaping the financial function by enabling real-time forecasting and complex risk scenario analysis, delivering improved accuracy and shorter planning cycles. Most importantly, it frees finance teams from manual reconciliation, allowing a shift towards higher-value strategic advisory.

While AI’s technical capabilities are compelling, the true integration challenge is human. It rests on three pillars: data quality, system fragmentation, and skills readiness. Strong governance and a unified data strategy are essential. But technology alone is not transformative; people are.

Our teams must excel in data interpretation, storytelling, and digital literacy. My focus is on equipping our talent to translate advanced analytics into sound commercial judgment, while maintaining the rigorous governance that defines a resilient financial institution.

Looking ahead, the most significant trend will be AI’s evolution from automation to augmentation. Institutions that invest early in people, redesign roles, and strengthen governance will lead this transition, proving that in the age of AI, the human element remains the decisive advantage.

Norman Tambach

Group Chief Financial Officer, Mashreq

New Abu Dhabi investor on the block L’imad appoints board

L’imad names Abu Dhabi crown prince as chairman: Abu Dhabi officially formed the board of L’imad Holding Company, its newly established sovereign investment platform, and named Abu Dhabi Crown Prince Khaled bin Mohamed bin Zayed Al Nahyan as its new chairman, according to a statement.

Who else is on the board: Jassem Al Zaabi (LinkedIn) — who also chairs Abu Dhabi’s Finance Department and telecoms group e& — will serve as managing director and CEO. He is joined by representatives from Mubadala Investment Company, including Group CEO Khaldoon Al Mubarak.

We still know very little about L’imad, but the statement said it will invest in priority sectors within the UAE and internationally, including “infrastructure and real estate, financial services and asset management, advanced industries and technologies, urban mobility, and smart cities.”

Background: The investment platform recently acquired a 42.5% stake in real estate and infrastructure development firm Modon Holding by purchasing shares from IHC and ADQ. The platform dominated global headlines in December as one of the major Gulf backers in the USD 108.4 bn hostile-bid takeover by Paramount for Warner Bros, alongside Saudi’s PIF and the Qatar Investment Authority.

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

Adnoc Distribution launches largest EV charging station in the MENAT region + Hub71 rolls out venture studio

New 60-point EV charging hub on E11

Adnoc Distribution is scaling EV charging: The company has launched a 60-point superfast EV charging hub on the E11 between Abu Dhabi and Dubai — the largest in the Middle East, North Africa, and Turkey region and one of the largest globally, according to a statement (pdf).

Not a one-off: Adnoc Distribution plans to electrify UAE highways with 20 charging hubs by end-2027, with 15 set to come online next year. This marks a move from city-based chargers to intercity infrastructure built for long-distance travel.

Zooming out: As we’ve previously reported, the fuel retailer is targeting 500 fast EV chargers across the UAE by 2028. The company has also flagged plans to enter Egypt’s EV charging market — alongside new integrated service stations — following its acquisition of a 50% stake in TotalEnergies’ Egyptian fuel retail arm.

Adnoc Distribution is not alone: This is part of a broader UAE-wide push to scale EV charging infrastructure:

Enoc has partnered with Ion to deploy ultra-fast DC EV chargers at high-traffic Enoc service stations in Sharjah, with scope to expand across the emirate;
Dewa is planning 100 new chargers with Parkin, alongside a 208-charger rollout with Dubai Taxi;
Parkin is rolling out 200 DC fast chargers under an agreement with e&;
BYD is planning ultra-fast 1 MW charging units ;
UAEV is targeting 10k chargers nationwide by 2030.

Hub71 adds a venture-building lane

Abu Dhabi tech hub Hub71 is adding a venture-studio track under a new partnership with MENA-focused AI venture builder Fikra Ventures, enabling AI-native companies to be built in-house and through joint ventures with select global firms scaling into the region, according to a statement. The move is aimed at speeding up commercialization and market entry — persistent execution bottlenecks for AI startups.

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

The GCC IPO party took a breather in 2025

After a multi-year high, the region’s IPO market came back down to earth last year. Total proceeds from public listings across the GCC declined 61% y-o-y to USD 5.1 bn in 2025, with the number of offerings also cooling to 40 from 53 the year prior, a recent report (pdf) by Kuwait Financial Center (Markaz) showed.

It was an all-Saudi show: The Kingdom accounted for a massive 79% of all IPO proceeds raised during the year (USD 4.1 bn), leaving the UAE a distant second with just 11% (USD 545 mn). Oman followed with the USD 333 mn raised from Asyad Shipping, accounting for 7% of the regional total, and Kuwait contributed the final 3% (USD 180 mn), also from a single IPO.

The private sector did the heavy lifting: Unlike previous years dominated by massive state sell-downs, corporate issuers drove the market in 2025. Private companies accounted for USD 3.9 bn — or 76% of total proceeds — across 37 listings. Government-related entities raised the remaining USD 1.2 bn through just three offerings.

Industrials claimed the top spot, raising USD 1.9 bn (37% of the total), largely on the back of flynas’ USD 1.1 bn listing on Tadawul. Real estate followed with USD 1.2 bn (23%) across seven IPOs, concentrated in Saudi Arabia with listings including Umm Al Qura and Dar Al Majed. Healthcare rounded out the top three, raising USD 508 mn (10%).

Why it matters: Investors became significantly more discerning in 2025. While some listings like Ratio Specialty Company gained 190% post-IPO, the market punished perceived overvaluation. Several new listings, including Shmoh Almadi and Service Equipment Co., ended the year down 60%, and the Saudi Tadawul index itself closed the year down 12.8%.

What’s next: The pipeline for 2026 is already stacking up. The slowdown looks to be temporary, with Markaz forecasting a rebound in activity driven by stable interest rates and a roster of big-ticket listings. The pipeline includes the long-awaited Etihad Airways listing on ADX, alongside Saudi medical procurement giant NUPCO and Oman India Fertilizer Co.

** Want to go deeper into last year’s performance? Check out our capital markets year in review reports for Saudi, the UAE, and Egypt.

(** Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

MARKETS THIS MORNING-

Asia-Pacific markets are firmly in the green in early trading, buoyed by Japan’s Nikkei, which is up more than 3% so far in its first trading day of the week after being closed for a holiday. The index is getting a boost from expectations that the country’s leading party will move to call snap elections next month. South Korea’s Kospi, China’s CSI 300, Hong Kong’s Hang Seng Index, and the Shanghai Index are all also trading up. Meanwhile, futures suggest a more muted open in Wall Street later today, with futures trading near the flatline.

ADX	10,008	-0.0% (YTD: +0.2%)
DFM	6,268	+0.7% (YTD: +3.7%)
Nasdaq Dubai UAE20	4,952	+0.3% (YTD: +1.3%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	3.6% o/n	3.6% 1 yr
Tadawul	10,745	+1.3% (YTD: +2.4%)
EGX30	43,404	+1.2% (YTD: +3.8%)
S&P 500	6,977	+0.2% (YTD: +1.9%)
FTSE 100	10,141	+0.2% (YTD: +2.1%)
Euro Stoxx 50	6,016	+0.3% (YTD: +3.9%)
Brent crude	USD 64.18	+0.5%
Natural gas (Nymex)	USD 3.34	-2.1%
Gold	USD 4,589	-0.6%
BTC	USD 91,366	0.0% (YTD: +4.3%)
Chimera JP Morgan UAE Bond UCITS ETF	AED 3.79	+0.3% (YTD: +1.1%)
S&P MENA Bond & Sukuk	151.71	+0.1% (YTD: -0.1%)
VIX (Volatility Index)	15.12	+4.4% (YTD: +1.1%)

THE CLOSING BELL-

The DFM rose 0.7% yesterday on turnover of AED 561.6 mn. The index is up 3.7% YTD.

In the green: Ekttitab Holding Company (+15.0%), National Cement Company (+14.9%), and Al Mal Capital REIT (+11.1%).

In the red: GFH Financial Group (-5.4%), Chimera S&P UAE Shariah ETF- Share class B – Income (-4.4%), and Gulf Navigation Holding (-2.9%).

Over on the ADX, the index held steady at AED 1.0 bn. Meanwhile, Nasdaq Dubai was up 0.3%.

CALENDAR

JANUARY

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.

4-5 February (Wednesday-Thursday): PropTech Connect Middle East, Grand Hyatt 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:

The UAE to host the Arab Competition Forum;
Investopia Global Talks, Tashkent.

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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