ENBD doubles down on Egypt

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Adnoc is scrapping its old pricing system + L’imad is wrapping up its Taqa takeover

Good morning, everyone. It’s a big day for overseas plays, with Emirates NBD expanding its footprint in Egypt as Adia keeps finding investment windows in India.

ENBD Egypt is snapping up HSBC’s retail business in Egypt, in the latest of HSBC’s global retail exit moves. Meanwhile, Adia showed up as an anchor investor for India’s Manipal IPO, one of the largest listings India has seen so far this year.

On the real estate front, demand for industrial and logistics space in Dubai was up in 1H, with manufacturing and logistics tenants leading the demand drive. Earnings are in from DFM, 2PointZero, Borouge, PureHealth and Emsteel, and L’imad is closing in on full control of Taqa.

L’imad is wrapping up Taqa takeover

Abu Dhabi sovereign wealth fund L’imad is moving to acquire the remaining 1.88% of Abu Dhabi National Energy Company (Taqa) via its subsidiary Abu Dhabi Power Corporation (ADPower), as per an ADX disclosure.

ICYMI- ADPower already controls 98.12% of Taqa and kicked off the process to take over the remaining 1.88% of the emirate’s primary power and water utility that it doesn’t already own via a mandatory acquisition notice issued in June.

The timeline: Taqa’s final trading day on the ADX will be Thursday, 6 August, with trading suspended from 7 August. The remaining minority shares will be transferred to ADPower on 13 August, with the minority shareholders slated to receive proceeds on 18 August.

Why it matters: The squeeze-out closes the final chapter of Abu Dhabi's utility consolidation strategy. By acquiring the remaining shares, L'imad gains complete control of Taqa, giving the sovereign wealth fund greater flexibility over long-term capital allocation and investment strategy while keeping critical energy assets fully under state ownership. It comes as a growing number of assets have been consolidated under L’imad.

Fuel prices tick up in August

The UAE Fuel Price Committee has set August fuel rates, hiking prices across the board, according to a post on X. The changes follow price cuts of up to 16.9% in July, but come at a more modest rate than those seen after the outbreak of the war, when diesel spiked by 72.4% in April.

Super 98 is now AED 3.60, up from AED 3.40 in July (+5.9%);
Special 95 is AED 3.49, up from AED 3.29 (+6.1%);
E-Plus 91 is AED 3.41, up from AED 3.21 (+6.2%);
Diesel is AED 3.80, up from AED 3.60 (+5.6%).

The modest reductions align with expectations that lower crude prices would filter through to UAE pump prices, though regional tensions and shipping disruptions have kept refined fuel costs elevated.

Earnings lift UAE stocks despite regional headwinds

UAE equity markets capped off last week on a higher note on Friday, driven by higher investor confidence amid solid corporate earnings, with Abu Dhabi leading the uptick. Abu Dhabi’s benchmark index rose 0.4% — marking its second straight session of gains — to lock in a 0.9% gain for the week, while Dubai’s DFMGI edged up 0.1%, breaking a three-week losing streak to end the week 0.2% higher, according to Reuters.

Who led the growth: Over in Abu Dhabi, Adnoc Drilling gained 1.2% after topping analyst consensus with a 2% y-o-y increase in 2Q net income to USD 359 mn, and conglomerate Alpha Dhabi advanced 1.5% ahead of its 2Q earnings release.

Meanwhile, in Dubai, Commercial Bank of Dubai surged 5.9%, and toll-gate operator Salik gained 1%. The gains in Dubai were capped by real estate and banking heavyweights, with Emirates NBD slipping 0.7% and Emaar Properties down 0.5%.

REMEMBER- During 2Q, foreign investors continued to head for the exits on UAE stock markets, with Dubai posting the GCC’s largest foreign outflows for the second straight quarter as regional tensions kept investors on edge. During the period, total capital outflows from the Emirates reached USD 828.8 mn. This was driven by foreign investors offloading a net USD 641.5 mn worth of Dubai-listed shares, while Abu Dhabi registered USD 187.3 mn in net foreign selling.

Cutting the cord from Murban

Adnoc is scrapping the pricing system it built five years ago: Every grade of Adnoc crude, including flagship Murban, will price off the regional Platts Dubai benchmark instead of ICE Futures Abu Dhabi's Murban contract, starting 1 November, the company said in a statement. Pricing will also be set a month before loading, rather than two months out, tightening the window between price and delivery.

This follows a two-step rollout: Adnoc first consulted with refiners and traders on repricing three offshore grades — Upper Zakum, Das, and Umm Lulu — against Dubai in late June, with no timeline attached. By mid-July, those same three grades were being priced against Dubai for ship-to-ship cargoes transferred outside Hormuz at Fujairah, while cargoes picked up at the usual terminals stayed priced at parity with Murban.

IN CONTEXT- The Murban contract was Abu Dhabi's signature play to become a global pricing benchmark. That contract cracked wide open in March, when Hormuz disruptions sent Murban futures above USD 160 a barrel at one point, even as Brent stayed below USD 130.

REMEMBER- Adnoc's August Murban price, set under the old system, came in at USD 80.01 a barrel, a cut of more than USD 21 from July, itself a sign the benchmark was struggling to hold a stable read on the market even before this week's move.

What’s next: ICE will wind down Murban futures, suspending contracts with no open interest immediately and letting the rest run to expiry, meaning a benchmark barely five years old effectively shuts down by the time Adnoc's new system takes effect in November.

Monday morning kudos

A shoutout is in order for our friends at EFG Hermes, whose securities brokerage division ranked first across five MENA markets in 1H 2026, according to a press release (pdf). EFG Hermes secured the top spot in Egypt, Kuwait, and the UAE, topping the EGX, Boursa Kuwait, Dubai Financial Market, Abu Dhabi Exchange, and Nasdaq Dubai, the company said, citing official market share data. The brokerage also ranked number 10 in Saudi Arabia, with its market share rising to 6.5%.

“Ranking first across five MENA markets in the first half of 2026 is a powerful endorsement of the trust our clients place in EFG Hermes and the strength of the platform we have built across the region. This is not a one-market story; it is the result of years of investment in talent, technology, execution quality, and deep client relationships across our footprint,” EFG Hermes Group Head of Brokerage Ahmed Waly said.

PSAs

Those looking to build on agricultural land can now secure a loan from Abu Dhabi authorities to do so, after the Abu Dhabi Housing Authority expanded its housing construction loan system to cover subdivided agricultural land, according to the Abu Dhabi Media Office. Eligible applicants will be able to secure as much as AED 1.75 mn in financing, as well as an AED 250k grant, opening the door for more citizens to build homes on inherited or allocated land plots.

ICYMI- Abu Dhabi has been focusing on the state of housing in the emirate as of late, including by expanding its affordable housing segment and freezing rents across residential, commercial, and industrial properties.

WEATHER- The mercury hits 46°C today in Dubai, with a low of just 34°C, and 46°C in Abu Dhabi, with a low of 33°C, according to our favorite weather app.

The big story abroad

The regional war may be looking at another halt with US-Iran negotiations set to resume today, US President Donald Trump said, without confirming a deadline for an agreement. Trump said he called off a planned strike against Iran, characterizing it as the “biggest attack since World War II.” Iran’s state media reported that Foreign Minister Abbas Araghchi spoke with Saudi and Pakistani officials to coordinate diplomatic efforts.

One of the world’s largest pharma groups may be on the way, as UK-based AstraZeneca conducts talks to merge with US drugmaker Bristol Myers Squibb. The resulting entity would be valued at around USD 400 bn. The companies have discussed a potential tie-up in recent months and could reach an agreement soon, though talks may still be delayed or fall apart.

Apple has put a cap on incoming software bug submissions from researchers after its defense system was swarmed with AI-generated reports that hallucinate non-existent risks. The iPhone maker says it is facing an industry-wide challenge as generative AI tools reshape cybersecurity.

Hollywood has another hit on its hands, as Sony Pictures’ Spider-Man: Brand New Day opened to some USD 927 mn in global box-office revenues, becoming the second-biggest film debut ever. The web-slinger’s latest is well positioned to overtake the year’s other major hits, namely Toy Story 5, The Odyssey, and The Super Mario Galaxy Movie.

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HSBC to sell Egyptian retail portfolio to Emirates NBD

HSBC is exiting retail banking in Egypt after 44 years in the market but has no intention of pulling back from corporate and institutional banking, which account for the lion’s share of its business here. The lender said yesterday that it has reached a definitive agreement with Emirates NBD Egypt that will see it hand over its entire retail business for an undisclosed sum, according to statements from both banks released after banking hours yesterday (here and here, pdf).

It’s the second significant regional move this summer for Emirates NBD after its USD 2.8 bn acquisition in June of a 60% stake in India’s RBL Bank. The group operates in 13 countries with more than 25 mn active customers and some USD 360 bn in total assets. ENBD, led in Egypt by Amr El Shafei, is majority controlled by the Emirate of Dubai through the Investment Corporation of Dubai and Dubai Holdings, which together hold almost 56% of the bank’s shares.

If it goes through, the transaction will make Emirates NBD the sixth or seventh-largest retail franchise in Egypt, by our maths, behind heavyweights NBE, Banque Misr, CIB, Banque du Caire, and QNB Al Ahli.

The sale is the latest in a string of retail exits globally as HSBC refocuses under Group CEO Georges Elhedery. The transaction includes all of HSBC Egypt’s retail loans, deposits, accounts, branches, ATMs, and the staff that support the business unit. HSBC Egypt will continue to serve corporate clients.

The transaction is still subject to regulatory approvals from the Central Bank of Egypt and the usual conditions precedent for a transaction like this — don’t expect it to close before 2H 2027. Neither party said how much the transaction was worth or put a number on how many accounts would be transferred to Emirates NBD, although HSBC said the agreement is expected to generate a pre-tax gain of around USD 300 mn for HSBC Group.

REFRESHER- The lender put its retail business in Egypt under strategic review last October, making clear at the time that its corporate and institutional banking activities weren’t going anywhere. By February, HSBC was reportedly weighing bids from at least four suitors for the portfolio, including Emirates NBD, QNB Al Ahli, and EGX-listed heavyweight CIB. Four institutions, including CIB, ultimately did due diligence on HSBC Egypt’s retail portfolio.

Egypt itself has seen a version of this play out before — think Citi’s sale to CIB. (More on that in a moment, below.)

What happens next

The Central Bank of Egypt will review whether Emirates NBD has the capital, liquidity, and operational capacity to absorb the new accounts and liabilities without straining its own financial health. The regulator also requires the two banks to devise a customer transition plan covering everything from account continuity to how loyalty points get handled.

It’s business as usual for HSBC Egypt’s clients, staff, and branches, at least for now, HSBC says, and the precedent for how these transactions play out backs that up. “There are no immediate changes for HSBC Egypt’s retail customers and their HSBC products,” the release read.

“Clients won't feel the impact of the transaction on announcement day,” banking and finance analyst Hany Abou El Fotouh tells EnterpriseAM. “But the transfer of this mass of deposits, loans and customers could change the competitive map between banks.” He puts HSBC Egypt’s active retail customer base at around 330k. Heading into the transaction, HSBC’s retail deposit base was a bit more than 1.5x the size of ENBD’s and its loan book about 80% of the size of ENBD’s, Abou El Fotoh says.

HSBC is selling a strong business

The retail business sits firmly in the black, posting an EGP 948.4 mn bottom line in 1Q 2026, despite being down 8.8% from EGP 1.04 bn a year earlier, per its 1Q results (pdf). Retail banking accounted for a little under 16% of the EGP 6.0 bn in net income HSBC made here in the first quarter of this year. Corporate banking accounted for nearly 70% of the bank’s bottom line, while investment banking and other activities delivered c. 15%.

What we know is in the book: HSBC Egypt’s retail arm held roughly EGP 142.8 bn in deposits against loans of EGP 18.9 bn in 1Q — a loan-to-deposit ratio of around 13%, making this a funding base more than a lending business. Personal loans accounted for EGP 13.6 bn of that, while credit cards stood at EGP 5.2 bn. The credit quality is pristine, with provisions against bad debt running at roughly 0.5% of the portfolio.

This isn’t a verdict on Egypt

HSBC’s move is part of a global retreat from retail banking that extends well beyond Egypt. The process traces back to mid-2023, when then-CFO Georges Elhedery put 12 countries on an exit watchlist in a pivot toward Asia, where the group generated 87.2% of its net new money in 1Q 2026, up from 78% in 2023. Elhedery was named group CEO in 2024, and months later the bank said it would simplify and restructure its organization into four core businesses: Hong Kong; the United Kingdom; corporate and institutional banking; and international wealth and premier banking.

While that meant retail was taking a back seat, HSBC says it’s very focused on the wholesale banking side of the business here in Egypt. HSBC Egypt’s CEO Todd Wilcox told us in February the bank is “squarely focused on the needs of our corporate and investment banking clients” here, pointing to roadshows and reverse roadshows connecting local issuers with investors in China, Singapore, and the UK, and to an inflow of Chinese and Turkish manufacturers drawn by Egypt’s cost advantages.

Zooming out: “This sequence of decisions places Egypt inside a broader rearrangement of capital and geographic spread at the group, and weakens any reading of the [agreement] as a standalone judgement on the Egyptian market,” Abou El Fotouh tells us.

Where else is HSBC pulling back?

HSBC has fully exited retail banking in Canada, France, South Africa, Bahrain, and Sri Lanka as part of what it calls the “ongoing simplification of HSBC Group.” It sold its Argentina retail operations to Grupo Financiero Galicia for USD 550 mn, and is in mid-transition in Indonesia and Australia, where a USD 25.3 bn mortgage and loan book is going to Blackstone, while the remaining retail business winds down by 1H 2027. Bangladesh is being closed outright rather than sold, while Malta remains under review. In the US, HSBC narrowed its retail footprint in 2021 and is now also exiting its business banking unit.

HSBC isn’t alone: Multinational banks are “right-sizing” their emerging market operations, shedding capital-intensive retail arms to double down on higher-margin institutional and wealth management businesses.

We’ve been here before, too: Back in August 2015, Citi’s Egypt unit sold its retail portfolio to EGX-listed CIB — Egypt’s largest private-sector institution — handing over client accounts, its credit card portfolio, book of personal loans, and network of branches and ATMs. Many of Citi’s 900 employees joined CIB at the time, moving over at the same time as some 100k accounts, 90k credit cards, and nine branches. Neither bank disclosed a price at the time, and the transaction wrapped up over the course of 2016 and into 2017 as the CBE shepherded the pair through the process.

Who the exit (eventually) affects and how

HSBC Egypt runs three retail tiers, including a basic current account requiring a monthly gross salary of EGP 10k, Advance at EGP 500k in average monthly balances or EGP 30k in monthly salary, and Premier at EGP 2 mn or EGP 70k. The bars for the top two tiers have climbed steeply in recent years as the EGP has slid against the greenback: The minimum balance for Premier nearly tripled from EGP 750k in June 2024, and the threshold to be classified as Advance doubled from EGP 250k in May 2025.

OUR TAKE- That puts a more concentrated, higher-balance book in Emirates NBD’s hands than HSBC was running two years ago.

News of the sale is just the beginning: “The consequential details will come later: fees, interest rates, account and card numbers, and the mechanism for transferring service from one bank to another,” Abou El Fotouh tells us. “These details are the real test, because they touch the daily relationship between customer and bank, not just the sign on the branch.”

Where that leaves the rest of the market

Egypt’s banking industry is simultaneously crowded and top-heavy. We have 37 licensed banks: Standard Chartered arrived in 2023, and OneBank registered as a digital bank this January, but the so-called Big Five hold 69.7% of sector assets, 67.2% of deposits, and 73.1% of loans. Large portfolios changing hands tend to reinforce that concentration, including FAB’s acquisition of Bank Audi and Bank ABC’s purchase of Blom Egypt. What distinguishes this transaction, Abou El Fotouh notes, is that what’s transferring is a segment inside an existing bank, not the bank itself.

“The real value of the transaction will not be measured by portfolio size alone, but by the market’s ability to turn a transfer of ownership into better service and wider competition for the customer,” Abu El Fetouh tells us.

The fine print

HSBC by the numbers: The bank opened here in 1982 as the Hong Kong Egypt Bank and today has roughly 1.5k staff and more than 40 branches. Egypt is also home to an HSBC “global service center” that provides support to HSBC operations globally.

What’s next: HSBC Group will publish its 1H results tomorrow, which could give us more color on the transaction, though the bank isn’t required to put a figure on the deal while the transaction is still pending regulatory approval.

Adia is back at India’s public offering market

The Abu Dhabi Investment Authority (Adia) isn’t taking its foot off the India investment pedal, turning up as an anchor investor in the USD 934 mn (AED 3.4 bn) IPO of Indian hospital network Manipal Health Enterprises, as per the company's anchor allocation filing (pdf).

Adia was allotted 3.4 mn equity shares — representing 4.8% of Manipal’s total order book — for a total investment of INR 1.99 bn (USD 20.9 mn).

The offering: Priced among one of India’s largest healthcare listings, Manipal Health raised INR 41.7 bn (USD 436.8 mn) from its anchor investors ahead of its public issue. The public offering raised USD 960.4 mn, Reuters reports, making it the second largest IPO in India this year. The hospital operator runs 38 hospitals with 10.7k licensed beds across 14 Indian states.

Manipal has seen UAE sovereign backing before: The hospital operator is already backed by Mubadala which, alongside two other funds, purchased a minority stake of 8% in Manipal Health from Singapore’s Temasek in 2024 for an undisclosed amount. The fund said it would not be selling any of its stake during the IPO.

Why it matters: The investment extends Adia's recent run of anchor commitments in India's capital markets, following its participation in SBI Funds Management's IPO earlier this month, which was the largest Indian IPO so far this year. The sovereign fund has also backed infrastructure deployments in a sign of continued conviction in India's long-term healthcare, financial services, and energy transition sectors.

IN CONTEXT- Adia recently backed Kotak Alternate Asset Managers’ USD 1 bn India real estate fund with a commitment of more than USD 675 mn. It also backed KRN Heat Exchangers’ USD 36.8 mn QIP and participated in Acme Solar’s USD 328 mn equity raise. It also bought into India’s RBL Bank prior to ENBD taking a controlling stake.

More to come?

UAE sovereign wealth funds and companies are preparing a new wave of investments into India, undersecretary at the UAE’s Investment Ministry Mohammad Alhawi told the Economic Times.

When and where? Announcements can be expected in the coming months across sectors like AI, logistics, food security, and infrastructure, according to Alhawi. Emirati investors are “actively” and “very seriously” looking at prospects in India, he said.

The UAE has invested nearly USD 25.6 bn in India between 2000 and 2026, making up around 70% of all Gulf investments into the country.

Why it matters: Alongside traditional segments such as infrastructure and logistics, AI and defense have emerged as priority areas for cooperation, with the UAE providing long-term capital and computing infrastructure while India contributes engineering talent and scale. This includes G42's collaboration with India’s advanced computing arm to build an 8-exaflop supercomputing cluster.

Demand for industrial, logistics space in Dubai rises 7% y-o-y 1H amid regional headwinds

Demand for industrial and logistics space in Dubai rose 7% y-o-y to 12.3 mn sq ft during 1H 2026, up from 11.5 mn sq ft the same period last year, as new buildings give tenants more options and help stabilize the market, according to a Knight Frank press release (pdf).

Manufacturing and logistics took the lion’s share: Manufacturing and industry emerged as Dubai’s primary demand drivers during 1H 2026, accounting for 35.1% of total demand. Meanwhile, logistics occupiers represented 15.5%, bringing the combined total of both sectors to over half of all demand.

Tenants were also looking for larger footprints: Facilities exceeding 100k sq ft captured 27% of requirements, marking a 7.8% rise from 2H 2025, while units between 10k and 50k sq ft made up 35.5%, and spaces between 50k and 100k sq ft accounted for 32.2%.

Activity was hit amid regional headwinds: While activity was strong in January and February, decision-making slowed from March onward due to regional conflict and shipping disruptions through the Strait of Hormuz, prompting occupiers to reassess supply chains, expansion plans, and costs.

Dubai’s industrial hubs saw a rise in rental growth rates: Al Quoz remained Dubai’s most expensive industrial spot, with Grade A rents rising 6% y-o-y to average AED 90 per sq ft. Meanwhile, Dubai South saw the highest annual rental growth across the emirate, rising 22% y-o-y to AED 55 per sq ft. Dubai Industrial City rents climbed 16% y-o-y.

It’s a similar story over in Abu Dhabi: Kezad Mussafah (ICAD) was the most expensive submarket in Abu Dhabi, with average rents climbing 15% y-o-y to AED 630 per sq m, followed by Al Markaz at AED 400 per sq m (up 7% y-o-y).

However, Northern Emirates moved the opposite way, with over 10 mn sq ft of marketed warehouse space opened up across the Northern Emirates — including 5.2 mn sq ft in Umm Al Quwain — cementing downward pressure on local rents, which fell 18.5% over the past year. This reverses last year’s trend where the first half of last year saw displacement drive a 40% rise in local industrial rents in the Northern Emirates due to a supply crunch in Dubai and Abu Dhabi.

The outlook: Dubai industrial rents are expected to stabilize over the next 12 months into 2H 2027, provided regional conflict eases. Also, the upcoming supply of industrial and logistics space is largely expected to land this year, after which new project completions are anticipated to see a slowdown throughout 2027 and 2028. Meanwhile, slow construction and high pre-leasing will likely keep top-tier space scarce for now.

DFM, Borouge, 2PointZero, PureHealth, Emsteel report earnings

DFM sees a quiet 2Q

DFM’s trading boom masks a quieter earnings picture: The Dubai Financial Market (DFM) saw a 60.7% y-o-y drop in net income to AED 229.6 mn in 2Q 2026, according to its latest financial results (pdf). The dip was largely down to a one-off gain of AED 462.2 mn in 2Q 2025, which stemmed from an investment property sale.

1H told a similar story, with net income declining 42.8% y-o-y to AED 407.4 mn, according to a separate earnings release (pdf). Operating revenue climbed to AED 384.8 mn in the six-month period, up from AED 266.5 mn the year before, lifting total consolidated revenue to AED 557 mn from AED 888.9 mn on account of the one-off gain.

Average daily trading value jumped 45.1% to AED 1 bn in the first half of the year, while total traded value rose 40.4% to AED 119.5 bn. Momentum held through most of the period, even as market capitalization declined 1.4% y-o-y at AED 981.6 bn.

Borouge holds firm in 2Q after Ruwais recovery

Restoration of operations at Borouge’s Ruwais industrial facility and swift supply-chain rerouting drove the firm’s 2Q results, leading 2Q net income to reach USD 191 mn, up 1% y-o-y and 23% q-o-q, according to its management discussion and analysis (pdf). Revenue went up 8% y-o-y to AED 1.4 bn.

For 1H, Borouge’s bottom line fell 27% on a yearly basis to USD 347 mn, while its top line recorded a more muted 5% dip to USD 2.6 bn. It maintained its dividend guidance of 16.2 fils per share.

ICYMI- Borouge’s Ruwais complex was partially shut down in April following damage to the facility from falling debris and subsequent fires, with the firm noting in an earnings release (pdf) that it had repaired its assets ahead of schedule.

Behind the results: The company used alternative shipping routes and supplemented volumes with additional inventory to help sales volumes reach 900k tons during the quarter and export its entire 2Q output. However, higher logistics costs and propylene feedstock prices partially offset the gain from higher average prices.

2PointZero posts blowout 1H results in first post-merger earnings

Abu Dhabi’s 2PointZero Group kept momentum going into 1H 2026 following its mega-merger, with a 2,301% y-o-y increase in net income to AED 7.7 bn, according to its earnings release. The results were chalked up to the merger and consolidation of Tendam. Margins held steady at 29%, pointing to consistent underlying operational performance across its core holdings.

Revenue jumped 114% y-o-y on a pro forma like-for-like basis to AED 21.9 bn, driven by the full consolidation of Spanish fashion retailer Tendam alongside the continued adoption of AI tools and cost optimization measures. Revenue remained diversified across consumer, mining, energy, and investments.

The group maintained a strong war chest of AED 13.7 bn as it expanded its international footprint during the period. Deployments were anchored by the AED 21.5 bn allcash acquisition of US-based Traverse Midstream Partners via subsidiary ePointZero. The group also entered European packaging through a 60.8% stake in Italy’s ISEM and expanded into African financial services via Baobab Group.

REMEMBER- The Multiply-Ghitha-2PointZero merger created a newly listed investment platform last November focused on energy, consumer, and technology sectors.

PureHealth’s overseas expansion boosts 1H earnings

Healthcare giant PureHealth recorded a 20% y-o-y rise in net income in 1H 2026 to AED 1.2 bn, driven by the integration of higher-margin international assets and steady growth across its ins. footprint. Group revenue rose 9% y-o-y to AED 14.9 bn, while EBITDA, outpacing top-line growth, jumped 24% y-o-y to AED 2.9 bn, according to its latest earnings release.

The international side brought growth: Revenue from the group’s overseas healthcare portfolio rose 56% y-o-y to AED 5 bn, with overseas operations accounting for 33% of total group revenue. The surge was anchored by the consolidation of Hellenic Healthcare Group (HHG) in Greece and Cyprus, in which it holds a 60% stake, alongside procedural growth at UK-based Circle Health, which it acquired in 2024. EBITDA for the international segment expanded 65% y-o-y to AED 1.1 bn, lifting segment margins to 22.2%.

A stable domestic base with ins. backing: Domestic UAE healthcare revenue registered AED 5.8 bn, backed by a 7% y-o-y increase in outpatient volumes, a 10% gain in inpatient admissions, and hospital bed occupancy reaching 75%. The cover (ins.) vertical saw revenue rise 10% y-o-y to AED 4.1 bn on higher premiums and a growing member base.

Emsteel rode the higher selling prices wave in 2Q

Abu Dhabi-based manufacturer Emsteel delivered a sharp margin expansion in 2Q as higher selling prices, resilient domestic demand, and tight cost controls helped offset rising raw material and logistics expenses, according to its latest earnings release (pdf). Net income climbed 157% y-o-y to AED 261.8 mn in 2Q amid a downturn in expenses, it said in its financials (pdf).

On a 1H basis: Quarterly revenue rose 11.4% y-o-y to AED 2.4 bn, lifting 1H group revenue by 6% y-o-y to AED 4.6 bn. Its bottom line came in at AED 560.5 mn for 1H, up from AED 188 mn the year before as expenses dipped.

The steel division revenue grew 9% y-o-y in 2Q to AED 2.1 bn, supported by a 10% increase in average selling prices for finished steel products that pushed segment EBITDA margins up to 18.2%. The cement division continued to gain momentum, with revenue rising 29% y-o-y to AED 287 mn as sales volumes from cement and clinker climbed 28% to 1.1 mn tons and average cement selling prices rose 30%.

Adnoc adds crude tankers to its fleet

Adnoc is spending nearly USD 1 bn to bring more of its export chain under its own control. Adnoc Logistics & Services has acquired five large crude carriers from Frontline for nearly USD 590 mn — two vessels at roughly USD 115 mn each and three vessels at roughly USD 120 mn apiece, three sources familiar with the matter told Reuters. The company also bought three very large gas carriers for a combined USD 345 mn. The company declined to confirm the acquisitions, saying it doesn’t comment on market speculation.

Why it matters: Disruptions in the Red Sea and at Hormuz have tightened tanker availability — pushing Adnoc to charter around 15 crude carriers to maintain shuttle movements and customer deliveries. Adnoc has also offered cargoes from Fujairah, Zirku Island, and Das Island, and through ship-to-ship transfers between Fujairah and Sohar, giving buyers more ways to lift barrels despite disruption around Hormuz.

OUR TAKE- Acquiring five VLCCs gives Adnoc greater control over shipping capacity and could reduce its reliance on spot charters when regional disruptions tighten vessel availability — though it does not remove the risks facing facilities inside Hormuz.

Joint US-Japan currency intervention buys Tokyo time for a September rate hike

Tokyo and Washington are jointly stepping in to arrest the JPY’s slide to 40-year lows, but the intervention is merely buying time for a fix that currency purchases alone cannot deliver: a Bank of Japan (BOJ) rate hike, now penciled in for as early as September. Finance Minister Satsuki Katayama is expected to confirm the joint action today, according to two Japanese officials cited by Reuters, marking the first such coordinated move since 2011.

The mechanics of the rescue: Japan bought JPY and sold USD in New York hours on Thursday, with BOJ data suggesting a massive outlay of up to USD 58.97 bn, though confirmed figures won’t be out for another month. Tokyo intervened again in New York hours on Friday. The US side was executed quietly: the Treasury told banks on Friday to stand ready, and the New York Fed sold EUR for JPY on the Treasury’s behalf through Goldman Sachs and Morgan Stanley, according to the Financial Times, but no amount was disclosed.

A highly visible “To Do” list: While the exact US spend wasn’t disclosed, Treasury Secretary Scott Bessent accidentally flashed his notepad during a televised Camp David cabinet meeting on Friday. The top item? “To Do: Buy Japanese Yen (JPY) USD 5-10 bn.”

Does this actually work? Japan has intervened alongside the US or other G7 partners five times since 1985 and gone it alone eight times, according to an analysis by currency strategist Brent Donnelly of Spectra Markets, separately cited by Reuters. His analysis shows most of the joint interventions coincided with an actual turn in the USD/JPY trend. However, Nomura currency strategist Dominic Bunning remains skeptical, calling the current move “tacit support more so than explicit coordinated intervention,” rather than 2011-style coordination.

Why September matters more than today: The BOJ held its rate at 1% on Friday but warned for the first time that underlying inflation could exceed its target, marking the clearest signal yet that a hike is coming as soon as next month. Pundits think intervention won’t help the JPY in the longer term unless the BOJ actually follows through, and unless US rates move lower too.

South Korea is also playing defense: Seoul sold USD alongside Japan on Thursday, briefly lifting the KRW 2% to a nine-month high. But the KRW’s broader 7.5% surge this month is coming from a different source entirely: Korean companies repatriating USDs, not intervention.

OUR TAKE- Washington is helping prop up the JPY because the alternative isn’t appealing.

Japan is one of the largest foreign holders of US government debt. If Tokyo is forced to sell down its Treasury holdings to fund a unilateral JPY rescue, it could trigger a selloff in US debt and cause an unwelcome spike in US yields. Japan’s Finance Ministry posted on X over the weekend that it has “a broad range of tools,” including access to the Fed’s Foreign and International Monetary Authorities (FIMA) Repo Facility, which lets it raise USD liquidity without selling its Treasury holdings outright.

MARKETS THIS MORNING-

Asian markets kicked off the month in the red, led by a sharp decline in South Korea’s Kospi, which dropped 4.5% in early trading, capping off a turbulent July during which it slumped 22%. The drop-off coincided with a sell-off among heavyweight chipmakers, driven by mounting headwinds that include rapid advancements in China’s AI and semiconductor sectors. Japan’s Nikkei wasn’t too far behind, slipping 2.2%.

ADX	9,915	+0.4% (YTD: -0.8%)
DFM	5,796	+0.1% (YTD: -4.2%)
Nasdaq Dubai UAE20	4,716	+0.2% (YTD: -3.5%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	3.5% o/n	4.3% 1 yr
TASI	10,706	+1.1% (YTD: +2.1%)
EGX30	54,286	+1.6% (YTD: +29.8%)
S&P 500	7,490	+0.7% (YTD: +9.4%)
FTSE 100	10,868	-0.3% (YTD: +9.4%)
Euro Stoxx 50	6,358	+0.2% (YTD: +9.7%)
Brent crude	USD 83.64	-4.9%
Natural gas (Nymex)	USD 2.73	-0.6%
Gold	USD 4,126	+0.5%
BTC	USD 63,421	+1.0% (YTD: -27.6%)
Chimera JP Morgan UAE Bond UCITS ETF	AED 3.61	0.0% (YTD: -3.7%)
S&P MENA bond & sukuk	149.83	0.0% (YTD: -1.4%)
VIX (Volatility Index)	15.99	-6.4% (YTD: +7.0%)

THE CLOSING BELL-

The DFM rose 0.1% on Friday on turnover of AED 588.2 mn. The index is down 4.2% YTD.

In the green: Commercial Bank of Dubai (+5.9%), Al Salam Sudan (+4.7%), and National International Holding Company (+4.5%).

In the red: Ekktitab Holding Company (-2.5%), Amlak Finance (-1.7%), and Ithmaar Holding (-1.6%).

Over on the ADX, the index rose 0.4% on turnover of AED 1.2 bn. Meanwhile, Nasdaq Dubai was up 0.2%.

CALENDAR

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.

15-16 September (Tuesday-Wednesday): Federal Open Market Committee (FOMC) meeting.

17-19 September (Thursday-Saturday): International Real Estate & Investment Show (IREIS), Adnec, Abu Dhabi.

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.

14-15 October (Wednesday-Thursday): Sharjah Investment Forum, Jawaher Reception and Convention Center, Sharjah.

13-15 October (Tuesday-Thursday): Annual Meeting of Global Future Leaders, Dubai.

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

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

27-28 October (Tuesday-Wednesday): Federal Open Market Committee (FOMC) meeting.

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.

18-19 November (Wednesday-Thursday): Touchdown Middle East 2026, Conrad Abu Dhabi Etihad Towers, Abu Dhabi.

25-26 November (Saturday-Sunday): Doers Summit, Dubai Silicon Oasis, 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.

8-9 December (Tuesday-Wednesday): Federal Open Market Committee (FOMC) meeting.

8-10 December (Tuesday-Thursday): Abu Dhabi Water & Power Week, Adnec Center, Abu Dhabi.

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:

Artificial Intelligence Summit.

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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