Global uncertainty weighs on non-oil activity growth

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WHAT WE’RE TRACKING TODAY

THIS MORNING: UAE-USD AI megaproject stalling?

Good morning, wonderful people, and welcome to the start of another week. We hope you had a restful long weekend — and that those of you who chose to spend your Eid break around the country enjoyed the surprisingly pleasant weather.

THE BIG STORY AT HOME is the UAE’s non-oil activity growing at its slowest pace in nearly four years last month, with output weighed down by global economic uncertainty. Still, non-oil private sector continued to record growth during the month, while employment grew at its strongest rate this year.

WATCH THIS SPACE-

#1- Security concerns stall UAE-US AI megaproject: Ongoing security concerns over how to prevent the diversion of advanced American technology mean a USD multi bn agreement to build one of the world’s largest AI data center hubs in Abu Dhabi is still “far from” being finalized, Reuters reports, citing unnamed sources. There is still no clear enforcement framework in place to restrict Chinese tech or personnel at the site, and the US has yet to define the conditions under which the chips can be exported, the sources say.

ICYMI- The 5 GW project is the centerpiece of a USD 200 bn US-UAE investment pact — spanning AI, critical minerals, and energy — signed during Trump’s visit to the UAE last month. The facility is designed to be the largest data infrastructure site outside the US, and will host American-managed services and serve as a regional AI hub if the remaining hurdles can be cleared. The first phase of the complex, Stargate UAE, is set to come online in 2026.

REMEMBER- Security talks have dragged on: Both the Biden and Trump administrations have voiced persistent concerns over the UAE’s historic ties to China. In response, G42 divested all its holdings in Chinese firms last year to “reassure” US partners. The move helped unlock access to US tech, including via Microsoft’s USD 1.5 bn investment in G42.

What now? Four sources told Reuters that there is currently no timeline for concluding the agreement, and that final terms could still evolve, with expected provisions including strict bans on Chinese nationals and technologies, and full alignment with US security protocols.

#2- Five Holdings eyes London or New York IPO: Dubai-based hospitality group Five Holdings is exploring a listing in London or New York, Reuters reports, citing people with knowledge of the matter. Last year its chairman Kabir Mulchandani said a dual listing was on the cards for the firm, which is set to start the listing process by late 2025. The group reportedly tapped Citi and Deutsche Bank last year to work on its planned initial public offering on the DFM.

#3- Hong Kong-based real estate PE fund manager Gaw Capital is looking to focus on real estate assets in the UAE and Saudi Arabia as it ramps up its investments in the Middle East, Managing Principal and Global Head of Capital Markets Christina Gaw told Reuters. The firm is on track to finalize an undisclosed transaction in the region in 2H 2025 and is also planning to set up a dedicated vehicle for its ventures in the Middle East. Gaw Capital’s first investment in the UAE was an AED 586 mn residential building bought from Aldar Properties. The firm had USD 34.4 bn in AUM by the end of 2024.

#4- London-based hedge fund Arini is reportedly planning to set up an Abu Dhabi office by September, with regulatory approvals in the process, Bloomberg reports, citing sources familiar with the matter. Arini, which was founded by former Credit Suisse trader Hamza Lemssouguer (LinkedIn), manages USD 9 bn in assets. Jeysson Abergel (LinkedIn), Arini’s London head of trading, will head up operations in the emirate.

#5- DP World is looking to acquire new projects in Turkey and Eastern Europe, the region’s executive VP Kris Adams told The National. The firm is exploring the possibility of entering the markets, which due to its fragmented nature, requires some consolidation, Adams added. The firms’ revenues from the region are on the up, despite geopolitical tensions, as it looks to tap further into Turkey’s USD 92 bn logistics market. Currently, the firm’s regional presence includes operating terminals in Romania, Bulgaria, Moldova, Albania, Montenegro, Serbia, Cyprus and Greece.

PSAs-

Dubai’s Roads and Transport Authority will roll out traffic improvements at 40 locations between June and September this year, covering 22 major roads, nine school zones, and key development areas like Al Khawaneej 2 and Nad Al Sheba, according to a statement.

Work will focus on easing congestion and improving safety, with upgrades across roads such as Ras Al Khor, King Salman Street, and Al Meydan. Internal roadworks and pedestrian paths are also planned in Tolerance District and Al Quoz Creative Zone.

HAPPENING THIS WEEK-

Investopia Global - Mediterranean is happening tomorrow in Cyprus. The event brings together policymakers, business leaders, and investors to discuss economic growth in various sectors across the UAE and Mediterranean region. Key topics include trade, energy transition, and regional collaboration.

The China Home Life Expo is taking place from Wednesday until Friday at the Dubai World Trade Center. The event will showcase a wide range of Chinese consumer products including building materials, textiles, consumer materials, and will connect manufacturers and buyers from across the region.

The International Appliances and Electronics Show will also be kicking off on Wednesday and running until Friday at the Dubai World Trade Center. The exhibition showcases the latest advancements in home appliances and consumer electronics, featuring product launches, technology showcases, and networking chances.

THE BIG STORY ABROAD-

The international press is squarely focused this morning on ongoing protests in California against immigration raids around the US led by the country’s Immigration and Customs Enforcement (ICE). The demonstrations — which saw clashes between protesters and ICE officials — took another tense turn on Sunday as US President Donald Trump ordered the deployment of the National Guard in California. The story is leading the front pages of Reuters, CNBC, Bloomberg, the Financial Times, and the Wall Street Journal.

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Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

UAE’s non-oil business activity growth creeps to four-year low in May

Non-oil activity sees slowest growth in nearly four years in May: The UAE’s non-oil activity expanded at the slowest pace since September 2021, as “global economic uncertainty linked to US tariffs [...] negatively affected output,” according to the S&P Global UAE PMI (pdf). The headline figure came in at 53.3 in May, down from 54.0 in April.

REMEMBER- The all-important 50.0 mark is the threshold separating contraction from growth. Anything above 50 denotes expansion, while anything below indicates contraction.

New orders slowed, while employment ramped up: The new orders subindex fell to 56.2 in May, down from 56.9 in April, in what is the softest pace of new order growth in seven months, according to Reuters. However, the continued growth in new orders was attributed to “favourable demand conditions, good relationships with clients, new marketing strategies and diverse product ranges.” Meanwhile, employment grew at its strongest rate in a year, with rising new orders creating elevated workloads.

Output increased, but at a comparatively slower rate: The output sub index for output fell to 57.3 in May from 59.4 in April, in what is the lowest reading since September 2021. However, the expansion in output was still “sharp,” supported by demand conditions remaining strong throughout the month. The drop in output growth was partially attributed to “global

economic uncertainty,” following “a particularly robust sequence of growth.”

Input purchases saw a record decrease during the month, with companies looking to “streamline holdings amid slowing momentum.” Growth in backlogs also dropped to a 16-month low during the month. However, this came with a drop in input price inflation, which fell to its lowest since December 2023 due to “due to the modest increase in raw material prices and staffing costs,” NBK Senior Economist Issa Hijazeen told EnterpriseAM. Still, output prices increased for the fifth consecutive month. “The sharp cutback in stocks (which was the fastest on record) and the broadly subdued outlook for activity suggest that firms are gearing up for softer growth,” S&P Global’s David Owen said.

Business sentiment has slowed down: “Businesses gave a modest assessment of their activity prospects in May. Optimism eased to its lowest since January, with nearly 10% of companies anticipating an expansion in the year ahead,” the report reads.

MEANWHILE, IN DUBAI-

Business conditions in Dubai remained unchanged from the previous month, with the Dubai PMI remaining at 52.9 in May, in what is the emirate’s joint-lowest reading since the beginning of 2022. Still, businesses continued to receive increased levels of new orders, with the rate of growth ticking up to a four-month high on the back of “improved client confidence” coupled with “positive impacts from marketing strategies and competitive pricing.”

On the flipside, input purchases decreased for the first time this year, and job creation was mild during the month, according to the report.

IRH acquires majority interest in Congo tin mine firm for USD 367 mn

Abu Dhabi’s IRH acquires majority stake in Congo tin miner: State-owned International Holding Company’s mining investment arm International Resources Holding (IRH) entered into a definitive agreement to buy a 56% stake in Alphamin Resources, one of the world’s largest tin producers, according to a press release. The transaction will see IRH purchasing 719 mn shares for a total of USD 367 mn.

Who’s involved? The agreement transfers control of the stake to IRH from Mauritius-based Tremont Master Holdings, a subsidiary of US private equity firm Denham Capital and Alphamin’s majority shareholder, which will retain a 0.8% stake. Alphamin is Mauritius domiciled, and listed on both Toronto’s TSX Venture Exchange and the Johannesburg Stock Exchange.

Behind the acquisition: Alphamin owns the Bisie tin mine operation in the Congo — one of the world’s largest tin mines, according to Bloomberg. It produced over 17k tons of tin in 2024, representing 6% of global supply, according to Reuters, and is planning on expanding its capacity to upwards of 20k tons. Demand for tin is on the rise as it is a key component used for renewable energy tech, EVs and electronics like semiconductors. Operations halted temporarily in March following Rwandan-backed rebel group activity near the site; however, the US pushed for an agreement to restart operations in April, Reuters reported.

Background: IRH engaged in discussions last year to acquire an indirect interest in Alphamin Resources. It was reported that IRH might invest in a new entity that majority shareholder Denham Capital would establish to hold the stake.

REMEMBER- IRH is doubling down on securing critical minerals supplies, having acquired a 51% stake in Zambia’s Mopani Copper Mines for USD 1.1 bn in 2024. It also inked joint venture agreements for iron mining in Angola, and was in advanced discussions to mine nickel in Burundi, along with metals in Tanzania and Kenya. It is also eyeing a majority stake in Zambia’s Lubambe Copper Mine.

IN OTHER M&A NEWS-

EU regulators suspended their review of Abu Dhabi National Oil Company's (Adnoc) EUR 14.7 bn acquisition of German chemicals firm Covestro, pending additional information from the two companies, Reuters reports. The transaction which was approved under EU merger rules last month, is now being reviewed under the bloc's foreign subsidies regulation, which examines potentially unfair government support to companies.

NMDC LTS completes 70% acquisition of Emdad to enter UAE oilfield operations

NMDC LTS completes 70% stake acquisition in Emdad: NMDC Group’s newly launched logistics arm, NMDC LTS, finalized its acquisition of a 70% stake in Abu Dhabi-based oilfield services firm Emdad, according to an ADX disclosure (pdf ). The transaction was financed through a mix of debt and equity, though the value was not disclosed.

A long time coming: NMDC first made a binding offer for Emdad in July 2024 after completing due diligence, with final regulatory and stakeholder approvals coming through in December. The move came shortly after NMDC unveiled LTS, its logistics and technical services subsidiary, tasked with expanding into marine and offshore services.

What Emdad brings to the table: The acquisition is expected to add recurring revenues from Emdad’s portfolio of oilfield and marine services, including well intervention, coil tubing, waste management, and offshore logistics. Emdad reported over AED 600 mn in revenues last year, the statement reads, with major clients including Adnoc, Borouge, and Emirates Global Aluminum.

NMDC’s wider strategy: The transaction comes as the firm looks to diversify revenue streams and expand its regional footprint in energy services. “Emdad stands out as an industry leader with robust capabilities and deep sector expertise. By combining its strengths with NMDC’s scale and commitment to innovation, we now have a powerful platform to unlock long-term value,” Group CEO Yasser Zaghloul said. NMDC LTS also said earlier this year that it is planning to IPO once it is more established.

ADVISORS- A&O Shearman acted as counsel to NMDC Group, with PricewaterhouseCoopers as financial advisor. Clyde & Co advised Emdad on legal matters, while KPMG Lower Gulf served as its financial advisor.

Mubadala’s GlobalFoundries to invest USD 16 bn in its US chipmaking

Semiconductor manufacturer GlobalFoundries will invest USD 16 bn to expand its US chipmaking, the company said in a statement. The New York-headquartered manufacturer — in which Abu Dhabi sovereign wealth fund Mubadala holds a majority stake — is allocating USD 13 bn to grow capacity at its New York and Vermont facilities, with an additional USD 3 bn earmarked for US-based R&D in areas like advanced packaging.

Big name partners: The manufacturer will work with major firms like Apple, Qualcomm, GM, and SpaceX, which are looking to move production of the semiconductors they use to the US and shore up supply chain security.

Why now? CEO Tim Breen said the investment responds to a clear uptick in demand for geographically diversified supply chains. “Supply security matters,” he told Bloomberg, adding that requests for US-based production have accelerated over the past six months. The move is also a response to the AI sector’s growth, which is fueling demand for power-efficient, high-bandwidth chips used in data centers and comms equipment, the firm said.

A shift in investment posture: The plan marks a major departure from GlobalFoundries’ historically cautious stance, Bloomberg notes. The firm has averaged just USD 1.4 bn in annual capex over the past five years — a fraction of what peers like Intel and Samsung have spent — and typically tied new investment directly to confirmed demand.

GlobalFoundries isn’t the only UAE player going long on US tech: The investment comes as the UAE commits up to USD 1.4 tn to the US across AI infrastructure, semiconductors, energy, and manufacturing under a 10-year bilateral investment framework announced during US President Donald Trump’s recent meetings with Sheikh Tahnoon bin Zayed. Damac Properties also committed USD 20 bn to US data centers.

About GlobalFoundries: GlobalFoundries operates fabrication facilities in the US, Germany, and Singapore, focusing on so-called essential chips — components for power management, data routing, and radio frequency (RF), rather than leading-edge silicon. It has carved out niches in RF, embedded memory, and gallium nitride-based power chips, betting that demand for trailing-edge semiconductors will remain robust in the AI era.

REMEMBER- The company is majority-owned by Abu Dhabi’s Mubadala Investment Company, which reduced its stake in GlobalFoundries to 81.63% in 3Q 2024, down from 85%. The divestment followed a May share sale aimed at raising USD 950 mn on the Nasdaq.

Taqa commits 80% of planned capex by 2030 to energy transformation

Abu Dhabi National Energy Company (Taqa) is earmarking over 80% of its planned capital expenditures through 2030 for energy transition projects, Group CEO Jasim Thabet told Al Etihad. The company is planning to deploy AED 75 bn in capex by 2030 — including AED 40 bn for transmission and distribution, and AED 35 bn for power generation and water desalination — and already deployed AED 27 bn of that figure by the end of 2024. It is eyeing upping its electricity generation capacity to 150 GW by 2030 as well.

International expansion remains a focus, Thabet added. Taqa recently secured two new power projects with a combined 3.6 GW capacity and a AED 1.5 bn water infrastructure contract in Saudi Arabia’s Makkah region. Its acquisition of Transmission Investment marked its entry into the UK’s offshore electricity transmission sector. Thabet also previously described the US as a “key market” for future acquisitions.

IN OTHER ENERGY NEWS-

Masdar eyes construction on Azerbaijan wind farm before year-end: Masdar plans to begin construction on the 240 MW Absheron-Garadagh onshore wind farm in Azerbaijan by the end of the year, Azerbaijani media outlet Report quotes Business Development and Investment head Maryam Rashed Al Mazrouei as saying. The company’s solar projects in Azerbaijan are already under construction, with power generation expected to kick off within the next year.

This goes way back: The Absheron-Garadagh wind farm is part of a broader 1 GW portfolio of wind and solar projects developed by Masdar and Azerbaijan’s state oil company Socar. Masdar has a pipeline of 10 GW of clear energy capacity in Azerbaijan. The two also inked an MoU, alongside Saudi’s Acwa Power, to jointly develop 3.5 GW of offshore wind projects in the Caspian Sea.

Green exports also on the radar? The company is prepared to take part in the design and implementation of projects aimed at exporting renewable electricity to regional neighbors and European markets, Al Mazrouei said.

AMEA Power + Japan’s Kyuden International to develop green projects: Dubai-based AMEA Power signed an MoU with Japanese energy company Kyuden International Corporation to jointly develop clean energy and green hydrogen solutions, according to a press release. The MoU includes a cooperation framework for large-scale projects.

Multiply consolidates 3 UAE outdoor ad assets under new unit MMG

Multiply Group consolidates three assets under Multiply Media Group: Abu Dhabi-based investment firm Multiply Group launched Multiply Media Group (MMG), unifying its out-of-home portfolio companies BackLite Media, Viola Media, and Media 247, according to a press release (pdf). Out-of-home companies operate advertising in public spaces like on public transport and in malls.

The target: Although the new entity is headquartered in the UAE, it will target expanding its regional and international advertising footprint in Saudi Arabia, the US, the UK, and Europe.

MMG will operate 3k advertising units across the UAE, including over 75 premium assets on Dubai's Sheikh Zayed Road. The group holds long-term partnerships with Dubai's Roads and Transport Authority (via Mada Media) and Abu Dhabi's Department of Municipalities and Transport.

ICYMI- The launch follows Multiply Group's joint venture agreement with Saudi Arabia's Al Arabia for investments in global out-of-home advertising in April, according to a separate press release (pdf), and the signing of another MoU with Saudi Media Company.

DFSA appoints new COO + Al Futtaim has a new retail president

DFSA has a new COO: The Dubai Financial Services Authority (DFSA) appointed Juma Thani Alhameli (LinkedIn) as its Chief Operating Officer, effective from 10 June, according to a press release. He will also serve on the executive committee. Alhameli has over 20 years of experience in the technology, financial services, and aviation sectors. He previously served as group CTO at First Abu Dhabi Bank (FAB) and chief communications officer Abu Dhabi Global Market (ADGM).

Al Futtaim Group appointed Wassim Arabi (LinkedIn) as president of its retail division, according to a press release. Arabi, who previously held senior positions at Alshaya Group, brings more than 30 years of experience in regional retail and mall operations and was most recently Group CEO of Emaar Malls.

Global SWF spotlights Abu Dhabi’s USD 1.7 tn sovereign wealth machine

Abu Dhabi is drawing fresh global attention for its outsized role in sovereign finance, with Global SWF founder Diego Lopez reminding CNBC (watch, runtime: 04:47) that the capital now manages USD 1.7 tn in sovereign assets across the Abu Dhabi Investment Authority (Adia), Mubadala, and ADQ, ranking it as the world’s top city for sovereign wealth. Lopez pointed to the emirate’s model, which includes specialized funds and offshoots like Lunate, MGX, and XRG.

Fragmentation by design: Abu Dhabi’s six sovereign entities aren’t a coordination problem but a strategic choice, Lopez said. Unlike Saudi’s centralized PIF, Abu Dhabi’s federated model allows each fund to pursue its own mandate, whether it’s global co-investments, local infrastructure, or frontier market expansion. Some now report to the same chairman, but many still operate independently, offering both flexibility and focus.

Where is the money going? The funds have all global bases covered, with Adia remaining active in the US and Europe, but starting to shift more attention to Asia, with high-level trips to China and Vietnam in recent months. Mubadala is “everywhere, all at once,” Lopez said, continuing to raise and deploy capital globally. Meanwhile, ADQ is focused on domestic plays like Modon and international bets across Egypt, Turkey, and Vietnam.

Plus, new capital is in motion: Abu Dhabi’s Central Bank has also emerged as a quiet force, with foreign reserves reaching a record USD 250 bn last month, reinforcing the scale of the emirate’s financial firepower, according to Lopez.

Mashreq lists USD 500 mn sukuk on Nasdaq Dubai

DEBT WATCH-

Our friends at Mashreq listed their USD 500 mn sukuk on Nasdaq Dubai on Wednesday, according to a statement. The sukuk was issued under Mashreq’s USD 2.5 bn trust certificate program, carrying A rating from S&P, in line with the bank’s A3/A/A investment-grade profile from Moody’s, S&P, and Fitch. The issuance — the bank’s first since 2024 — also marks the first public CEEMEA issuance to price since the US announced new trade tariffs in April. The five-year sukuk issuance drew USD 2.9 bn in orders, making it 6x oversubscribed and the most heavily subscribed issuance in the bank’s history.

MINING-

EGA eyes Ghana bauxite play: Emirates Global Aluminium (EGA) signed an agreement with the Ghana Integrated Aluminium Development Corporation to explore the joint development of bauxite-related projects in Ghana, according to a statement. The agreement includes potential offtake agreements and cooperation on rail and port infrastructure to expand production. It comes as EGA aims to increase its bauxite production and diversifying upstream supply, with CEO Abdulnasser Bin Kalban calling Ghana’s 900+ mn tonnes of reserves a strategic window.

SOUND SMART- Bauxite is a rock that contains a relatively high concentration of aluminium, making it the world’s primary source of the metal, as well as a major source of gallium.

ICYMI- Other recent Emirati-Ghana developments include a tech-focused MoU signed between Dubai’s PCFC, G42-backed Presight AI, and the Ghanaian government, whilst other firms have pledged investments in Ghana’s renewable energy, AI, education, health, aviation, and defense sectors, Ghanaian Foreign Minister Samuel Okudzeto Ablakwa said in May.

LOGISTICS-

Kezad could get a new e-Methanol bunkering facility: AD Ports Group inked an agreement with Masdar, Rotterdam-based energy storage Advario, and French shipping giant CMA CGM to explore setting up an e-methanol bunkering and export facility in Abu Dhabi’s Khalifa Port and Khalifa Economic Zones Abu Dhabi (Kezad), according to a statement. The facility will support commercial e-methanol production for off-takers, including CMA CGM, to accelerate the move to decarbonisation in the global shipping industry.

REMEMBER- AD Ports Group signed a heads of terms agreement with Advario to mull a joint venture to develop and operate green energy and liquid bulk storage projects in the UAE and internationally, last month. The proposed JV would be 51% owned by AD Ports and 49% by Advario.

BUSINESS-

Dubai overhauls MAF governance to resolve succession gridlock: The Dubai government has stepped in to restructure the governance of Majid Al Futtaim (MAF), one of the Gulf’s largest private conglomerates, to resolve a long-running succession impasse and stabilize the group’s future, Financial Times reports, citing people with knowledge of the details. A special judicial committee has reconstituted the board of parent entity MAF Capital and converted it into a public joint stock company with a lower decision-making threshold.

The rationale: The move follows years of shareholder tensions that, according to sources, began to weigh on the group’s performance. It marks Dubai’s third major intervention in MAF’s affairs — the first was in the 1990s, when then-Crown Prince Sheikh Mohammed mediated a family split, followed by another in 2022, after the founder’s death.

The new structure: The new board of MAF Capital is chaired by Emirati financial regulator Fadel Al Ali, with five government and four family representatives. MAF Holding, the group’s operating company, remains independently governed under a board led by Sir Michael Rake, former chair of KPMG International. “These changes do not affect the operations or governance of [operating company] MAF Holding,” MAF said in a statement to the salmon-colored paper.

IPO ahead? “The company now has a period of stability that could pave the way for a listing,” one source told the FT.

HEALTHCARE-

Burjeel Holdings will manage and operate Adnoc’s Das Hospital at Das Island, after the two sides signed an agreement, according to a disclosure (pdf) to the ADX. The contract will see Burjeel oversee the clinical and administrative operations of the health care facility which includes outpatient clinics and a blood bank in its medical offerings.

ICYMI- Back in February, Burjeel Holdings secured AED 225 mn in operations and management healthcare contracts for UAE, Sudan and Chad healthcare facilities, with a contract to operate Adnoc Das Hospital on Das Island being among them.

REAL ESTATE-

Pakistan’s BT Properties to build Eiffel Tower in Dubai: Pakistan’s largest private developer, BT Properties, has entered the UAE market with a USD multi-mn project in Dubai South, anchored by a resized Eiffel Tower and a life-size Istanbul mosque, Khaleej Times reports. The master-planned community, Waada, will feature residential units along with retail, wellness, education, and community spaces, according to a statement. Completion is slated for 4Q 2028.

INS.-

Ins. provider Transamerica Life Bermuda comes to DIFC: Global high-net-worth life insurer Transamerica Life Bermuda will operate in Dubai International Financial Centre (DIFC) after securing a license from the Dubai Financial Services Authority (DFSA), according to a statement. The new office — which will act as a regional hub — will be headed up by Adnan Ladki (LinkedIn).

AVIATION-

Emirates adds Vietnam and Cambodia routes via Bangkok: Emirates Airlines expanded its East Asia network to 23 destinations with new flights to Vietnam’s Da Nang and Siem Reap in Cambodia, Emarat Al Youm reports. Both routes pass through Bangkok and are operated by Boeing 777s.

Etihad sets its sights on China: Etihad Airways inked a codeshare agreement with Taipei-based Starlux Airlines, boosting its customer reach across Northeast Asia, according to a statement. Abu Dhabi’s flagship airline will begin operating direct flights between Abu Dhabi and Taipei from 7 September. Under the partnership, Abu Dhabi has new links to Japanese cities — including Nagoya, Sapporo, and Fukuoka — via Taipei.

Etihad Cargo also signed an agreement with China’s Ezhou Huahu Airport to boost its cargo links in Asia, according to a separate statement. Etihad’s logistics arm will increase its presence at the airport — a gateway to access the broader Chinese market, including Shanghai and Shenzhen. Under the partnership, the pair will look to increase flight frequencies, launch new routes and expand collaboration for cross-border supply chain transactions.

Air Arabia introduces new route to Kazakhstan: Budget friendly carrier Air Arabia is launching a new route connecting Abu Dhabi to Almaty in Kazakhstan, Wam reports. Flights will begin from 3 June and run three times a week.

ENVIRONMENT-

Abu Dhabi launches integrated waste management monitoring system: The Abu Dhabi Environment Agency (EAD) has launched a unified system to manage and monitor waste activities across the emirate, according to an Abu Dhabi Media Office statement. The platform integrates three tools: an inspection and patrolling system, an occupational health and safety system for waste sector workers, and an electronic system to track and monitor waste transfers.

REMEMBER-EAD has mandated environmental reporting for licensed entities, covering resource use and emissions, with submissions starting each 1Q. A carbon pricing mechanism is also in the works, requiring major emitters to begin submitting third-party verified emissions data from 2026.

Long-dated yields surge, complicating fiscal and monetary policy

Governments around the world are having an increasingly hard time selling long-term sovereign-issued bonds, the Financial Times reports. Recently, a US government issuance fell flat, while Japanese sovereign prices dipped as yields rose, with investor appetite waning just as governments ramp up issuance to fund persistent fiscal deficits.

A global “mismatch” between supply and demand is at the heart of the issue, a T Rowe Price portfolio specialist told the Financial Times. The governments are issuing more debt — often with longer maturity dates — and central banks are selling off their bond holdings just as appetite from traditional buyers like pension funds and insurers starts to dampen.

This combination is pushing long-yields toward multi-decade highs, with refinancing and borrowing costs rising along with them, throwing the question of debt sustainability to the forefront of political and fiscal debate, rather than inflation or economic growth.

“The bond market has never been more powerful, because we’ve never had so much debt,” economist Ed Yardeni told the Financial Times. Across the OECD, debt costs are now at their highest since at least 2007 with many countries running substantial deficits. US President Donald Trump’s tax and spending bill could add an extra USD 2 tn to US debt, while UK 30-year borrowing costs climbed to highs not seen since 1998, and France is expected to shell out EUR 62 bn on servicing its debt this year.

The private sector isn’t in the clear: Corporate debt costs, often benchmarked against sovereign bonds, are on the rise as well — particularly for long-dated maturities. “[T]he less control the central banks have on the long end, the more pressure that puts on the private sector,” Man Group’s Mike Scott told the FT.

And neither are creditors: With May being 2025’s busiest month so far for debt issuances, distressed debt exchanges and creditors jostling for priority in the repayment queues also saw an uptick, the Financial Times reported elsewhere.

Long or short? The spread between yields on two- and 30-year treasuries is at its widest in years, creating an issue for sovereigns, which rely on issuing a range of maturities to protect against market swings in interest rates, cater to different investors, and spread its refinancing risk.

The options? Central banks holding off on bond sell offs is an option, as is sovereigns opting for more short-term debt, although this exposes them more to market shocks and refinancing risk. However, keeping a lid on runaway spending is key, Royal London Asset Management’s Craig Inches told the salmon-colored paper.

ADX	9,735	+0.5% (YTD: +3.4%)
DFM	5,536	+0.3% (YTD: +7.3%)
Nasdaq Dubai UAE20	4,538	+0.8% (YTD: +9.0%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.2% o/n	4.2% 1 yr
TASI	11,005	+1.6% (YTD: -8.7%)
EGX30	32,678	+1.0% (YTD: +9.9%)
S&P 500	6,000.36	1.0% (YTD: +2.0%)
FTSE 100	8,838	+0.3% (YTD: +8.1%)
Euro Stoxx 50	5,430	+0.4% (YTD: +11.0%)
Brent crude	USD 66.44	-0.05%
Natural gas (Nymex)	USD 3.74	-1.2%
Gold	USD 3,323.60	-0.7%
BTC	USD 105,683.89	+0.2% (YTD: +11.9%)
Chimera JP Morgan UAE Bond UCITS ETF	AED 3.64	0% (YTD: +2.4%)
S&P MENA Bond & Sukuk	143.93	-0.1% (YTD: +2.9%)
VIX (Volatility Index)	16.77	-9.3% (YTD: -3.3%)

THE CLOSING BELL-

The ADX rose 0.5% on Wednesday on turnover of AED 1.4 bn. The index is up 3.4% YTD.

In the green: E7 Group PJSC Warrants (+14.9%), Fujairah Cement Industries (+14.9%) and Abu Dhabi Ship Building (+13.5%).

In the red: National Bank of Fujraiah (-9.5%), Eshraq Investments (-4.4%) and Finance House (-4.3%).

Over on the DFM, the index rose 0.3% on turnover of AED 930.9 mn. Meanwhile, Nasdaq Dubai was up 0.8%.

UAE delisted from Brazil’s preferential tax regime list

The UAE has been removed from Brazil’s list of jurisdictions with preferential tax regimes, following technical coordination and alignment on tax transparency and investment standards, Wam reports. The Finance Ministry called the move a springboard for expanding trade, investment, and strategic cooperation with Latin America’s largest economy. Bilateral trade topped USD 4.3 bn in 2024, with the UAE ranked as Brazil’s top Arab export destination.

REFRESHER- The UAE is overhauling its tax landscape to meet global standards: Recent reforms included allowing unincorporated partnerships to opt into corporate tax treatment and expanding exemptions to foreign entities fully owned by exempt persons.

US, UAE eye bilateral trade agreement amid metals tariff: The US and UAE are preparing to launch talks on a potential bilateral trade agreement that could ease tariffs on Emirati steel and aluminium exports, Reuters reports, citing sources familiar with the matter. The discussions took place during US President Donald Trump’s visit to Abu Dhabi last month, as Emirati officials sought relief from mounting trade pressures, including a 25% tariff on aluminium and steel that the Trump administration now plans to double to 50%. The UAE was the second-largest exporter of steel and aluminium to the US in 2024, supplying 8% of total US consumption.

What to expect: While a full-fledged freetrade agreement appears unlikely at this stage, sources said Washington is open to a limited pact that could still be framed as a Comprehensive Economic Partnership Agreement (Cepa) — the UAE’s preferred format. UAE officials stressed their ability to move quickly on trade negotiations.

CALENDAR

10 June (Tuesday): Investopia Global - Mediterranean, Cyprus.

11-13 June (Wednesday–Friday): China Home Life Expo, Dubai World Trade Center.

11-13 June (Wednesday–Friday): International Appliances and Electronics Show, Dubai World Trade Center.

12 June (Thursday): Deadline for Sidara to submit a formal takeover bid to Wood Group.

17-18 June (Tuesday–Wednesday): Middle East Event Show, Dubai World Trade Center.

17-18 June (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

17-18 June (Tuesday-Wednesday): Abu Dhabi Infrastructure Summit, Abu Dhabi Energy Center.

24-25 June (Tuesday-Wednesday): EVCharge Live Middle East, Dubai World Trade Center.

24-25 June (Tuesday-Wednesday): Solar & Storage Live, Dubai World Trade Center.

24-25 June (Tuesday-Wednesday): Mobility Live Middle East, Dubai World Trade Center.

24-25 June (Tuesday-Wednesday): Middle East Rail, Dubai World Trade Center.

27 June (Friday): Islamic New Year.

Signposted to happen sometime in 2H 2025:

Closing of XRG's acquisition of Covestro

JULY

6-7 July (Sunday-Monday): BRICS Summit, Rio de Janeiro.

29-30 July (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

SEPTEMBER

1-6 September (Monday-Saturday): Dubai Fashion Week, Dubai Design District.

8-10 September (Monday-Wednesday): DigiHealth exhibition, World Trade Center, Dubai.

8-19 September (Monday-Wednesday): WHX-Tech Expo, Dubai World Trade Centre.

12-14 September (Friday-Sunday): The International Real Estate and Investment Show, Abu Dhabi.

16-17 September (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

24-25 September (Wednesday-Thursday): Mohammed Bin Rashid Leadership Forum, Mohammed Bin Rashid Center for Leadership Development, Dubai.

24-25 September (Wednesday-Thursday): Dubai World Congress for Self-Driving Transport, Dubai.

OCTOBER

1-2 October (Thursday-Friday):World Green Economy Summit (WGES), Dubai World Trade Centre.

30 September - 2 October (Tuesday-Thursday): The Water, Energy, Technology, and Environment Exhibition (WETEX), Dubai World Trade Centre.

3-16 October (Friday-Thursday): Dubai Home Festival.

7-9 October (Tuesday-Thursday): The International Symposium on the System of Radiological Protection, the Ritz-Carlton Abu Dhabi, Grand Canal.

9-15 October (Thursday-Wednesday): IUCN World Conservation Congress, Abu Dhabi.

14-16 October (Wednesday-Friday): Global Future Councils, Dubai.

22-24 October (Wednesday-Friday): World Investment Conference, Expo Centre Sharjah.

27-29 October (Monday-Wednesday): Future Hospitality Summit, Madinat Jumeirah, Dubai.

27-29 October (Monday-Wednesday): Asia Pacific Cities Summit, Dubai Exhibition Center.

28-29 October (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

NOVEMBER

12-17 November (Wednesday-Monday): RoboCup Asia-Pacific, Khalifa University, Abu Dhabi.

15-17 November (Saturday-Monday): Myplant & Garden Middle East Green Expo, Dubai Exhibition Centre, Expo City.

17-21 November (Monday-Friday): Dubai Airshow 2025, Al Maktoum International Airport, Dubai.

18-19 November (Tuesday-Wednesday): Dubai Future Forum, Museum of the Future, Dubai.

DECEMBER

1-3 December (Monday-Wednesday): Eid Al Etihad (UAE National Day).

1-5 December (Monday-Friday): The World Congress of Neurosurgery, Dubai World Trade Center.

7-14 December (Sunday-Sunday): Asian Youth Para Games, APC headquarters, Dubai.

8-9 December (Monday-Tuesday): BTC Mena Conference, Adnec, Abu Dhabi.

8-10 December (Monday-Wednesday): BRIDGE media summit, Abu Dhabi.

9-10 December (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

18-23 December (Thursday-Tuesday): Games of the Future, Adnec, Abu Dhabi.

Signposted to happen sometime in 2025:

The Middle East Electric Vehicle Show, Expo Center Sharjah.
e& will complete Adnoc’s private 5G network.
Executive Committee Meeting (EXCOM 2025) conference of the World Smart Sustainable Cities Organisation (WeGO)
The International Civil Aviation Organization’s Global Implementation Support Symposium, Abu Dhabi.
Universal Postal Congress 2025, Dubai.

Signposted to happen sometime in the fall of 2025:

ICOM General Conference 2025, Dubai

Signposted to happen sometime in 2026:

9-11 January (Friday-Sunday): 1 Bn Followers Summit’s fourth edition, UAE.
28-29 January (Wednesday-Thursday): IBA Arbitration Day Conference, Abu Dhabi.
3-5 February (Tuesday-Thursday): The World Governments Summit.
12-15 February (Thursday-Sunday): The Society for Incentive Travel Excellence Global Conference, Abu Dhabi.
11-13 May (Monday-Wednesday): AI Everything Global, Adnec Center.
The UAE to host the Arab Competition Forum
Dubai to host the Arab Actuarial Conference
United Nations Water Conference 2026, UAE
The first edition of Dubai Future Finance Week.

Signposted to happen sometime in October 2026:

Abu Dhabi Space Week, Abu Dhabi.

Signposted to happen sometime in 2027:

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 between 2027 and 2029:

The commissioning of the seventh phase of Mohammed bin Rashid Al Maktoum Solar Park.

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