Good morning, lovely people. It’s a quieter start to the week after what has been a very busy month of news, what with Trump’s visit to the UAE, Make It in the Emirates, and the many regulatory updates that have been announced.

THE BIG STORY at home today is DP World inking an agreement to develop a special economic zone at Oman’s border, with the first phase alone set to require some USD 2 bn in investments. Plus: Ghitha’s Invictus is acquiring a majority stake in an Angolan fertilizer blending business.

WATCH THIS SPACE- We might soon get confirmation on the days off we’ll be getting for Eid Al Adha, with the UAE Council for Fatwa planning its moon sighting this evening. If the moon is spotted, marking the start of Dhu Al Hijjah, we will likely be getting Thursday, 5 June off for Arafat Day, and a four-day long weekend. If it’s not spotted tonight, the Eid holiday shifts forward one day, with Friday, 6 June, and Monday, 9 June, off.

💨WEATHER- Expect another drop in temperatures today — a welcome breather after the weekend’s 51°C scorcher — along with some wind and blowing dust, according to the National Center of Meteorology (pdf). In Dubai, the mercury will hit a high of 39°C before dropping to 30°C overnight, according to our favorite weather app. Abu Dhabi will see a daytime high of 35°C and an overnight low of 29°C, though it will likely feel much warmer with humidity of around 70% later in the evening.

REGULATION UPDATE- Vara clears path for RWA tokenization: Dubai’s Virtual Assets Regulatory Authority (Vara) has formally authorized the tokenization of real-world assets (RWAs) under its updated rulebook, Mazen Boustany, partner at Baker McKenzie in the UAE, told EnterpriseAM UAE. The change stems from refinements to Category 1 virtual asset (VA) issuance definitions, which now explicitly cover asset-referenced virtual assets (ARVAs).

ICYMI- Vara released the second edition of its VA rulebook last week, tightening oversight on margin trading, token distribution, and custody arrangements, while harmonizing compliance standards across all VA activities. Licensed virtual asset service providers must comply with the updated framework by 19 June.

Under the revised framework, VAs are now classified into three categories — Category 1, Category 2, and Exempt VAs — each with its own licensing and distribution requirements, Boustany noted.

• ARVAs and fiat-referenced VAs fall under Category 1 and can only be issued by licensed entities;
• Non-Vara licensed players may only distribute Category 2 or Exempt VAs — such as non-transferable or closed-loop tokens — and only via a Vara-licensed broker-dealer.

IN CONTEXT- The move to integrate RWA tokenization aligns with the Dubai Land Department ’s push to boost real estate tokenization, including through an MoU to update regulatory frameworks with Vara. The DLD rolled out a pilot project, launched last week, which is being led by tokenization platform Ctrl Alt and aims to drive AED 60 bn in tokenized real estate transactions by 2033. It enables fractional property ownership via blockchain, with title deed tokens minted on the XRP Ledger and investment entry points starting from AED 2k.

WATCH THIS SPACE-

#1- Sharjah Islamic Bank hits the road for a new AT1 sukuk sale: ADX-listed Sharjah Islamic Bank is sounding out investors for a potential benchmark-sized USD-denominated additional tier one (AT1) sukuk issuance, it said in a filing (pdf) to the exchange. The AT1 offering, which is subject to market conditions, would be perpetual and non-callable for six years. It comes as the lender — which is rated A- by S&P and BBB+ by Fitch — looks to shore up its capital base.

ADVISORS- The bank tapped our friends at Mashreq, and HSBC along with Arqaam, Dubai Islamic Bank, Emirates NBD Capital, FAB, Kamco Invest, and Standard Chartered as joint lead managers and bookrunners on the transaction.

#2- DAE’s USD 2 bn Nordic Aviation takeover gets Philippines thumbs up: The Philippine Competition Commission cleared Dubai Aerospace Enterprise’s (DAE) takeover of Irish aircraft leasing company Nordic Aviation Capital (NAC), concluding that the move won’t harm competition in the local aircraft leasing market, it said in a news release. The USD 2 bn transaction, backed by the Government of Dubai and Nordic parent company NAC Holdings, wrapped up earlier this month.

#3- Fitch Ratings has revised down its forecast for growth in the GCC in 2025 to 3.7%, from 4.2% previously, on the back of lower oil prices — which the agency believes “will impact public spending” while weaker global growth will “affect foreign investment and external demand,” according to Fitch Ratings’ MENA Monthly Outlook Report (pdf). This is still higher than the 2% growth achieved by the GCC in 2024, which the agency says is down to the phasing out of Opec+ restrictions on oil production, which will cause a “rebound in oil output,” the report reads.

The agency also cut its growth forecast for the MENA region down to 3% from 3.4% previously, citing US tariffs’ impact on global demand and oil prices. This puts the region four percentage points off from emerging markets’ expected average growth level for the year, the report reads.

How this compares to other forecasts: The IMF expects GCC economies to outperform the region with 3% growth in 2025, the Fund wrote in its Regional Economic Outlook earlier this month. Meanwhile, the World Bank sees the GCC growing at 3.2% in 2025 and 4.5% in 2026, with both years’ figures revised down by just 0.1 percentage points from the bank’s January estimates, it wrote back in April.

PSAs-

#1- Air Arabia customers can now pay for flights using AE Coin, the UAE’s first AED-pegged stablecoin, via Al Maryah Community Bank’s AEC Wallet app, according to a press release. The airline partnered with the bank to integrate the payment option, and is the first regional airline to accept payments in stablecoin.

REMEMBER- The Central Bank of the UAE greenlit the launch of the AE coin back in December, making it the only authorized stablecoin in the country as of yet. IHC, ADQ, and First Abu Dhabi Bank (FAB) are reportedly planning a new new AED-backed stablecoin, while ADX-listed crypto miner Phoenix Group and cryptocurrency giant Tether — owner of the world’s biggest stablecoin, USDT — are also planning to launch an AED-pegged stablecoin.

#2- New Abu Dhabi-Seychelles route: Air Seychelles now operates six weekly passenger flights between Seychelles International Airport and Zayed International Airport in Abu Dhabi, according to a press release. The route includes a codeshare partnership with Etihad Airways. Flights also link to Mauritius three times weekly and offer domestic transfers to Praslin, the Seychelles’ second-largest island.

#3- Academic qualification verification for private sector goes digital: The Human Resources and Emiratization Ministry (MoHRE) and the Higher Education and Scientific Research Ministry (MoHESR) have launched a new digital service enabling private sector employers to verify workers’ academic qualifications electronically, the MoHRE said in a statement.

The details: Initially, the project will verify degrees issued abroad, targeting private sector employees at skill levels 1 to 4, and a second phase will cover UAE-issued academic degrees. The service is available through MoHRE’s website, app, and business service centers.

HAPPENING TODAY-

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

#2- Forbes Middle East’s Building the Future Summit is on its second and final day at Berklee Abu Dhabi. The event brings together regional and global real estate developers, investors, architects, and urban planners for discussions on smart cities, sustainable infrastructure, and future-ready housing.

#3-The GCC-ASEAN Summit and the ASEAN-GCC-China Summit are on the second and final day in Kuala Lumpur, Wam reports. Ras Al Khaimah Ruler Sheikh Saud bin Saqr Al Qasimi is leading the UAE delegation to the meetings, which look to deepen cooperation across economic, political, and development sectors between the GCC, ASEAN, and China.

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

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

HAPPENING THIS WEEK-

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

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

THE BIG STORY ABROAD-

France and Vietnam inked agreements valued at USD 10 bn yesterday during President Emmanuel Macron’s visit to Hanoi, including purchasing 20 Airbus planes, as well as partnerships on nuclear energy and defense. Macron will be heading to Indonesia and Singapore next, in a similar bid to bolster trade relations and get ahead of US trade agreements that could come at the expense of EU countries.

OVER IN GAZA- Deadly airstrikes continued on schools-turned-shelters and more targets in Gaza yesterday, with death tolls — estimated to be in the dozens overnight — increasingly hard to calculate due to the virtual collapse of medical services.

Efforts to secure the ceasefire are facing increasing uncertainty, with Reuters reportingearlier Hamas accepted a proposal for a temporary truce by US special envoy Steve Witkoff, only for Witkoff himself to deny it later, calling the group’s response “unacceptable.”

ALSO- The Swiss-based Gaza Humanitarian Foundation announced it begandistributing food to people in the enclave through its distribution hubs yesterday. The US and Israel-backed private group is already facing setbacks after its executive director Jake Wood resigned, stating that “it is not possible to implement this plan while also strictly adhering to the humanitarian principles of humanity, neutrality, impartiality, and independence.” Its chief operating officer, David Burke, reportedly resigned as well.

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