Greenfield FDI down slightly in 1H 2025. Plus: PE activity cools down in MENA

1

WHAT WE’RE TRACKING TODAY

THIS MORNING: Adnoc Drilling eyes another acquisition in Kuwait and Oman + Fuel prices are down marginally in August

Good morning, friends, and happy FRIDAY. We wrap this busy week with another packed issue, led by news that the UAE has already seen some USD 5.4 bn in greenfield FDI in 1H, though that’s down slightly from the same time last year. We also have a stream of earnings from e&, Borouge, PureHealth, and more, and another investment from Mubadala.

JUST IN- Israel has pulled most of its diplomatic staff from the UAE, Reuters reports, amid what it said were concerns over Israelis’ safety as more “terrorist organizations” — it said in reference to Hamas, Iran, and others — increase efforts to “harm Israel,” the government said in a statement.

WEATHER- Dubai will hit a scorching 46°C today, cooling to a humid 32°C overnight. Abu Dhabi will see a slightly milder 45°C, with humidity sticking around as temperatures settle to 36°C this evening.

WATCH THIS SPACE-

#1- ADX-listed Adnoc Drilling is eyeing a second acquisition in Kuwait and Oman this year or in early 2026, Bloomberg reports citing CFO Youssef Salem. Salem said the transaction would be similar in size and structure to the May USD 112 mn purchase of the land drilling businesses of US oil and gas wells drilling company Schlumberger Middle East (SLB) in Kuwait and Oman, which means it could also include an earnout clause.

Also in the pipeline: He also noted that Adnoc Drilling is on track to close two more acquisitions for technology-linked services companies by year-end, valued at around USD 350 mn, through its Enersol joint venture with Alpha Dhabi Holding.

ICYMI- Adnoc Drilling’s 2Q earnings beat estimates: The firm’s net income rose 19% y-o-y to USD 351 mn in 2Q 2025, while revenue for the quarter climbed 27.9% y-o-y to USD 1.2 bn, supported by continued rig fleet expansion and rising demand for onshore and oilfield services.

#2- Gulf Capital eyes three or four more exits over the next year and a half: Gulf Capital is working on three to four exits in the healthcare and fintech sectors worth over USD 1 bn, the firm’s managing director of private equity Hazem Abu Khalaf told Asharq Business (watch, runtime: 4:45). The exits can be expected within the next 18 months, he said, and come after the firm offloaded its majority stake in Art Fertility earlier this week.

Same strategy, new fund: The firm is planning to soon launch its fourth private equity fund in the range of USD 800 mn to 1 bn, which will acquire majority stakes in consumer, healthcare, and fintech firms. The firm’s strategy is to hold investments for five to six years — enough time to ensure it’ll see a significant return, Al Khalaf said.

#3- Dubai-based investment firm Beyond One’s planned acquisition of Telefónica’s Mexican unit for about EUR 520 mn (USD 610 mn) could see some delays and conditions on the regulatory approvals front, but is unlikely to face much pushback, according to a note from Fitch Solutions ’ BMI.

The rationale: Beyond One owns Virgin Mobile Latin America, which has operations in Mexico and Colombia. The combined 22.5 mn subscribers of Virgin Mexico and Telefónica merely put the merged entity on par with AT&T, leaving Mexico's dominant mobile network operator Telcel’s 83.3 mn users unchallenged, Fitch’s BMI said. Regulators could impose conditions such as job preservation, the appointment of Mexican managers, or even a local stock market listing for the Dubai-owned buyer, Fitch Solutions said.

#4- Arab Investment Co. plans USD 1.2 bn portfolio pivot: The Arab Investment Company is looking to sell off its entire USD 1.2 bn legacy portfolio to shift toward private markets, Bloomberg reports. The state-backed investor, owned by 17 regional governments, will reallocate the majority of its assets to private equity — with venture investments also receiving some allocations, as part of a change in direction under CEO Abdullah Bakhraibah, who took over last year. The firm will focus on the healthcare, education, industrials, and technology sectors, including AI investments, and is planning 20 transactions this year across its shareholder nations.

Where does the UAE come in? The Emirati government invested USD 142.6 mn into the firm with a 13.5% ownership stake, making it the third-largest contributor after Saudi Arabia and Kuwait, each with USD 173.8 mn in the fund and 16.4% ownership.

The restructuring mirrors Gulf sovereign funds' broader move toward higher-yield assets, a strategy similar to that of Saudi Arabia's Public Investment Fund and Abu Dhabi wealth funds.

#5- Nasdaq Dubai’s first-ever BTC fund delists: Canada-based investment firm 3iQ Corp has officially pulled its BTC Fund, the first-ever crypto vehicle to list in the Middle East, from Nasdaq Dubai. The fund, which was also previously listed in Toronto, was removed yesterday from the Dubai Financial Services Authority’s (DFSA) official list of securities, according to a bourse disclosure. The voluntary delisting was approved by 3iQ’s board and shareholders earlier this month and marks the end of its four-year run on the exchange.

Trading was suspended last week, after the fund manager said that maintaining the Dubai listing had become too costly in a market announcement (pdf) back in May.

#6- Stargate announces second project: MGX-backed AI infrastructure project Stargate is planning to open a USD 1 bn data center in Norway, according to a statement. The project will initially install 100k Nvidia processors, and could see 10x expansion in the future according to demand. Developer Nscale and investment group Aker will jointly own the facility.

REMEMBER- The AI alliance between OpenAI, SoftBank, and Oracle — with contributions from MGX for the first USD 100 bn phase — recently announced its first project in the UAE, which will see a data center cluster built in Abu Dhabi, set to go live next year.

PSAs-

#1- Starting this month, parking fees will apply around Dubai's mosques outside prayer times, as parking operator Parkin takes over 21k parking spaces at around 59 religious sites across Dubai, according to Dubai Media Office. Parking will be gratis for one hour during prayer times, but chargeable otherwise.

#2- Fuel prices are dipping slightly this month: The Fuel Price Committee left fuel prices slightly lower and raised diesel prices for August, after across-the-board increases in July, according to a post on X.

Here’s the new breakdown per liter:

Super 98 is now AED 2.69, down from AED 2.70 in July (-0.4%);
Special 95 is AED 2.57, down from AED 2.58 (-0.4%);
E-Plus 91 is AED 2.50, down from AED 2.51 (-0.4%);
Diesel is AED 2.78, up from AED 2.63 (+5.7%).

THE BIG STORY ABROAD-

It’s finally August — aka Tariff Month — and US President Donald Trump has published alist of new tariffs set to be implemented on trade partners, while leaving the global minimum reciprocal tariff at 10%.

Trading partners are sorted into three groups: Those who run a goods trade surplus with the US will be subject to a 10% tariff; while those who have reached agreements and run moderate trade deficits will see a 15% tariff, and those with large trade deficits and no trade agreements will see higher tariffs. Meanwhile, transshipped goods will be hit with a 40% tariff. The UAE — along with most of the Gulf — belongs to the first group.

Among the highest tariffs: Canada will be slapped with a 35% tariff, higher than the earlier announced 25%, as diplomatic friction between the country continues and after it said it would recognize a Palestinian state; Switzerland was slapped with a 39% tariff; and India will be subject to a 25%. The tariffs will take effect next Friday.

Market reax: Market response has been subdued, suggesting they have already priced the tariffs in. The USD reversed a small, early gain, while the CHF pared some of its gains after falling sharply on news of the tariff.

The story is everywhere in the foreign press: Bloomberg | Reuters | Financial Times | CNBC | New York Times

ALSO GETTING SOME ATTENTION- Apple and Amazon published their earnings yesterday:

Apple benefited from a boost in iPhone sales as customers rushed to lock in pre-tariff prices, with overall sales rising 10% y-o-y. CEO Tim Cook said the company will be hit with USD 1.1 bn in costs from the tariffs in 3Q 2025 alone. (Wall Street Journal | Reuters)
Amazon’s shares fell more than 7% after hours as its cloud computing unit failed to meet earnings expectations, with net income margins contracting, after rivals Microsoft and Alphabet both reported impressive performance for their cloud units. (Reuters)

***

You’re reading EnterpriseAM UAE, your essential daily roundup of business, economics, and must-read news about the UAE, delivered straight to your inbox. We’re out Monday through Friday by 7am UAE time.

EnterpriseAM UAE is available without charge thanks to the generous support of our friends at Mashreq and Hassan Allam Properties. Tap or click here to get your own copy of EnterpriseAM UAE.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on UAE@enterpriseAM.com .

DID YOU KNOW that we also cover Egypt, Saudi Arabia, and the MENA logistics industry?

***

MARKET WATCH-

Opec+ will likely benefit from its decision to prioritize market share over price stability, despite initial economic strain, Bloomberg reports. Opec+ members are hoping to claw back market share ceded to US shale and other competitors, and they look to already be succeeding: Growth in oil supply from non-OPEC producers — primarily Brazil, Canada, and Guyana — is expected to slow by over 80% through 2027, according to Wood Mackenzie estimates. The slowdown stems from diminishing output in North America and aging fields in countries like Mexico, China, and Norway.

REMEMBER-The group is expected to reconvene next Sunday to review its output strategy. Oil traders anticipate further price pressure later this year, driven by rising inventories and dwindling Chinese demand.

The UAE secured USD 5.4 bn in greenfield FDI in 1H 2025

Greenfield foreign direct investment into the UAE reached USD 5.4 bn in 1H 2025, spread across 613 projects, according to an Emirates NBD report (pdf). That’s down around 9% from the same period last year, which saw FDI come in at AED 21.85 bn.

The geographical breakdown: Dubai remained the country’s dominant FDI hub, attracting USD 3 bn in capital across 526 projects — accounting for 86% of the national total. Sharjah ranked second, drawing in USD 1.5 bn from only 24 projects, pointing to a concentration of high-value inflows. Abu Dhabi raked in USD 595.8 mn across 42 projects, while Ras Al Khaimah brought in USD 188.6 mn from six projects.

Kuwait leads on capital, UK tops project count:

Kuwait emerged as the largest investor by capital, committing USD 955.7 mn in 1H, nearly all of it linked to a AED 3.5 bn mixed-use real estate development in Sharjah by Kuwait Real Estate Company;
The US ranked second in investment volume at USD 889.5 mn across 94 projects;
India followed with USD 677.9 mn across 101 projects;
China and Italy also featured among the top contributors, with China investing USD 413.2 mn across 16 projects, and Italy USD 387.6 mn across 18 projects;
On a project-count basis, the UK led with 120 greenfield projects.

By the sector: The real estate sector attracted the largest capital share, reaching USD 1.1 bn from 29 projects. Transportation and warehousing followed with USD 770.4 mn, while business services accounted for USD 687.2 mn. Communications drew USD 359.5 mn, and software and IT services accounted for USD 298.9 mn. In terms of project volume, business services led with 183 projects, followed by software and IT services (108), financial services (65), transportation and warehousing (42), and industrial equipment (39).

1H 2025 saw some big FDI-led tech + sustainability projects: Microsoft and Core42 announced plans to build sovereign AI cloud infrastructure in Abu Dhabi. Meanwhile, Abu Dhabi AI giant G42 is partnering with OpenAI to build Stargate UAE. Sustainability-linked investment also gained momentum, with Italy’s Greenthesis and the UAE’s Beeah committing USD 346.6 mn to develop the region’s first polyethylene film recycling facility in Sharjah.

Freezones attracted USD 1.6 bn in greenfield FDI across 107 projects — just 17.5% of all projects but 29.9% of total capital.

REMEMBER- The value of UAE greenfield FDI projects fell 33% y-o-y to USD 14.5 bn in 2024, accounting for 36% of GCC projects, trailing only Saudi Arabia, while the number of projects rose 2%. The UAE aims to attract AED 1.3 tn in FDI from 2025 to 2031.

Mubadala joins USD 150 mn funding round for AI startup Anaconda

Abu Dhabi's Mubadala Capital participated in a USD 150 mn funding round for AI tools provider Anaconda, according to a statement. The funding round was led by NYC-based VC firm Insight Partners and pushed the startup's valuation to USD 1.5 bn, Bloomberg reports, citing a source familiar with the matter. This marks a significant jump from its USD 222 mn valuation in 2021. The size of Mubadala’s investment has not been reported.

More on Anaconda: The US-based company, founded in 2012, provides Python-based development tools for AI systems and data scientists. Currently, it is expanding its executive team and product offerings while also searching for a permanent CEO. The company aims to develop into a comprehensive AI platform as demand for Python-based AI tools grows globally.

CBUAE's T-Sukuk for July oversubscribed 5x

The Central Bank of the UAE's (CBUAE) AED 1.1 bn T-Sukuk auction in July was nearly 5x oversubscribed, receiving AED 5.4 bn in bids, with participation from eight primary investors, according to a Finance Ministry statement on X and state news agency Wam.

The details: The auction included two tranches — the first tranche is set to mature in August 2028, offering a yield of 3.88%, while the second tranche will mature in 2030 with a yield of 3.95%. The yields are on par with comparable US Treasuries.

July’s auction builds on successive oversubscribed auctions over the past months, including one in June seeing 5.6x in demand and one in May which saw 6.3x in demand and received AED 6.9 bn in bids. April’s auction drew AED 6.1 bn in bids, February’s auction was 6.5x oversubscribed, and January’s AED 6.9 bn gave it a subscription rate of 6.3x.

More 2Q earnings roll in

e&-

Emirates Telecommunications Group’s (e&) net income attributable to owners grew 9.7% y-o-y to AED 3.5 bn in 2Q 2025, while revenues jumped 28.1% to AED 18 bn, according to its financials (pdf). The company posted similarly strong 1H results, with its bottom line rising 60.7% y-o-y to AED 8.8 bn, while its top line rose 23.3% y-o-y to AED 34.9 bn as its subscriber base grew 13% y-o-y to 198 mn.

Behind the numbers: The uptick in revenues came as the group consolidated e& PFF Telecom after acquiring a controlling stake in PPF Telecom Group, and its telecom and digital segments continued to perform well, it said in a separate earnings release (pdf). Its UAE operations contributed AED 17.1 bn in revenues in 1H, up 3.9% y-o-y, while earnings from its international segments jumped 52.3% y-o-y to AED 15.2 bn.

The board approved a 43 fils per share interim dividend for 1H 2025. The firm paid a final dividend of 41.5 fils per share for FY 2024 in May.

NATIONAL BANK OF FUJAIRAH-

The National Bank of Fujairah (NBF) saw its net income rise 67.6% y-o-y to AED 318.6 mn in 2Q 2025, according to its financials (pdf). The bank’s operating income also saw an uptick, this time of 15.9% y-o-y, to reach AED 684.1 mn.

NBF reported its highest 1H net income on record, posting AED 625.4 mn for the period, according to a press release (pdf). The results represent a 41.8% increase from the same period last year. The bank's total operating income grew 12.9% y-o-y to AED 1.4 bn. NBF attributed its strong performance to disciplined balance sheet growth, reduced impairment provisions, and effective cost management despite ongoing geopolitical and trade uncertainties.

DUBAI FINANCIAL MARKET-

The Dubai Financial Market (DFM) saw its net income reach AED 584.6 mn in 2Q 2025, a jump of 537% y-o-y, according to the DFM's financial statements (pdf). Its total income increased to AED 702.4 mn, up sharply from the AED 157.6 mn posted in the same period the year before.

On a 1H basis, the market reported a bottom line of AED 711.7 mn — up from AED 181.4 mn the year before — while its topline saw a 190.8% yearly boost to reach AED 888.9 mn. Robust trading activity and a strong income mix, alongside a one-off boost from an investment sale, drove topline growth, according to a separate earnings release (pdf). Total market capitalization grew 9.7% y-o-y to AED 995 bn and the total traded value grew to AED 85 bn, up 77% y-o-y and driven by institutional investors who accounted for 71% of activity.

REMEMBER- DFM divested a 10.2k sqm plot in Business Bay to Creek Views Real Estate Development for AED 826.7 mn, as it looked to reallocate capital to higher-growth prospects. The transaction resulted in a AED 499.7 mn investment gain.

BOROUGE-

Adnoc petrochemicals JV Borouge posted a net income of USD 193.2 mn in 2Q 2025, down 37.2% y-o-y, according to its financials (pdf). Revenues declined 13.2% to USD 1.3 bn during the quarter. Despite the bottom line dip, the group said the results outperformed market expectations and were buoyed by steady sales volumes and a robust sales mix, in a separate earnings release (pdf). The firm completed its Borouge 3 turnaround ahead of schedule during the quarter, which is set to boost its margins in the long term.

For the six-month period, net income came in at USD 474.2 mn, falling 18.3% y-o-y, as revenues edged down 2.9% to USD 2.7 bn. The company reaffirmed its plan to pay a full-year 2025 dividend of 16.2 fils per share — up from 15.88 fils in 2024 — with an interim dividend of 81 fils to be paid in September.

All eyes are now on 2026, when Borouge is set to complete its merger with the polyolefins business of Austria’s OMV and bring Borouge 4 fully online. The merger between Adnoc’s and Austrian OMV’s polyolefins subsidiaries to form Borouge International will add 1.4 mn tons of annual capacity and see the two acquire Nova Chemicals for USD 13.4 bn. The combined USD 60 bn group will be headquartered in Austria with a regional hub in Abu Dhabi, and will remain listed on ADX with a planned dual listing in Vienna Stock Exchange. A capital increase of up to USD 4 bn is slated for 2026 to help secure an investment-grade rating and MSCI index inclusion.

PUREHEALTH-

Abu Dhabi-based PureHealth saw its net income inch up 1.9% y-o-y in 2Q 2025 to AED 523.6 mn, according to its financials (pdf). Revenues rose 9.5% to AED 7 bn during the quarter. The firm’s 2Q expansion included its ins. arm Daman’s entry into the property and casualty market.

On a six-month basis, net income climbed marginally by 2.4% y-o-y to AED 1.0 bn. Income margins, however, tightened slightly as the impact of the corporate tax and expansion weighed on profitability, according to a separate earnings release (pdf). Revenues rose 8.6% to AED 13.6 bn during the same period on the back of robust performance from its ins. arm Daman, which saw a 56% rise in net income, an uptick in patient volumes, and expanded capacity across its network.

DEYAAR DEVELOPMENT-

Dubai-based developer Deyaar Development’s net income rose by 18.4% y-o-y to AED 137 mn in 2Q 2025, according to its financials (pdf). Revenue surged by 46.3% to AED 492.4 mn in the second quarter. For the six-month period, its bottom line rose to AED 248.6 mn, clocking a 31.8% increase y-o-y. The firm’s revenues recorded similar robust growth, with a 39.3% y-o-y increase to AED 925.4 mn.

Behind the figures: Bottom line growth was driven by strong operational efficiency in project execution and robust investor appetite in the UAE’s real estate market, the firm said in an accompanying earnings release (pdf). The revenue growth is set to continue with Deyaar planning to hand over five major projects — 2k units in total — in 2H.

PHOENIX-

Crypto miner PhoenixGroup swung to a USD 29.2 mn net loss in 2Q 2025, down from a net income of USD 56.1 mn a year earlier, as the ADX-listed crypto infrastructure company booked unrealized losses of USD 23.7 mn on digital assets and sharply increased depreciation under a new accounting policy, according to its financials (pdf) and a separate earnings release (pdf). Revenues fell 43.1% y-o-y to USD 29.1 mn during the quarter, mainly due to reduced hosting and trading activity, which it deliberately held back to shift focus to self-mining amid BTC’s price rally

During the first half of the year, Phoenix posted a USD 182.8 mn net loss, compared to a bottom line gain of USD 122.3 mn in the same period last year. Revenues for 1H halved y-o-y to USD 60.4 mn, while digital asset revaluations drove over USD 166 mn in unrealized losses.

UNION PROPERTIES-

Dubai-based developer Union Properties saw its net income for 2Q 2025 fall by 52% y-o-y to AED 8.7 mn, according to financial statements (pdf). The decline was attributed to “front-loaded investments in development activities and infrastructure upgrades,” the company said in its earnings release (pdf). Revenues from contracts with customers increased by 19% y-o-y to AED 152.4 mn. In 1H 2025, revenues climbed 18.8% y-o-y to AED 316 mn, while net income fell 58% y-o-y, reaching AED 14.56 mn.

REMEMBER- Union Properties is currently working to address legacy debts. Just last week, the developer signed a conditional agreement to sell a real estate asset in Motor City for AED 700 mn that is set to wrap its debt repayments. The firm had slashed its debt by more than AED 150 mn in 1Q and reduced its legacy debt to AED 575 mn by the end of 2024 — down from AED 1.5 bn in 2022.

Al Tamimi taps new partner for Casablanca Office + CFI appoints new marketing lead

Law firm Al Tamimi and Co. tapped Omar Zizi (LinkedIn) as its partner in Casablanca, according to a press release (pdf). Zizi brings with him a decade of experience, most recently serving as a partner at KZ and Partners in Casablanca. He was previously a partner at KZ & Partners, a boutique firm in Casablanca. The law firm opened its office in Casablanca in 2022.

Online trading firm CFI appointed Omar Khaled (Linkedin) as chief marketing officer, according to a press release. He will oversee brand strategy, digital marketing, and customer engagement as the company expands globally. Khaled previously served as CFI’s global marketing director and has 15 years of experience in the fintech and trading sectors.

Chinese marketplace operator Zhuanzhuan comes to DAFZ

RETAIL-

Dubai Airport Freezone partners with Chinese secondhand goods giant: The Dubai Airport Freezone (DAFZ) inked an MoU with Chinese online marketplace operator Zhuanzhuan Group to establish a cross-border supply chain for secondhand consumer goods, according to Dubai Media Office. The tie-up aims to boost Dubai’s position as a logistics and trade gateway, granting DAFZ access to the Chinese firm’s partner network.

More on the agreement: Zhuanzhuan will set up its regional headquarters in DAFZ, a facility that will handle recycling, quality checks, sorting, and packaging operations. The Dubai Integrated Economic Zones Authority is also involved and will support Zhuanzhuan’s operations and coordination with local authorities, along with DAFZ.

AI-

The UAE, Malaysia, and Rwanda are teaming up to accelerate AI adoption in the Global South, according to a press release. An MoU will see the three collaborate on developing AI governance frameworks, talent exchanges, and other joint initiatives to support sustainable development in emerging economies.

IN CONTEXT- The collaboration falls under the Center for the Fourth Industrial Revolution’s global network — initially set up by the UAE and Rwanda at the 2024 World Economic Forum in Davos, and now including Malaysia.

CAPITAL MARKETS-

CBUAE revokes Gomti’s license: The Central Bank of the UAE (CBUAE) revoked the license of Gomti Exchange and removed its name from its register, according to a press release (pdf). It revoked the exchange house’s license after an investigation found that Gomti had failed to comply with anti-money laundering and anti-terrorism financing frameworks.

Gomti isn’t the first to have fallen foul of the central bank’s standards this week. The bank also revoked Al Nahdi Exchange’s operating license and removed it from its financial institutions register.

FINANCE-

CBUAE gives Spare preliminary approval to join Open Finance Framework: The Central Bank of the UAE (CBUAE) granted in-principal approval for open finance infrastructure company Spare to operate under the country's Open Finance Framework, according to a press release (pdf). Spare — which operates across Saudi Arabia, the UAE, Bahrain, and Kuwait — plans to offer account-to-account payment processing and financial data services through its API platform.

ICYMI- Pay10 became the first authorized firm under the CBUAE’s Open Finance Framework — which aims to standardize secure transactions and cross-sector data sharing — back in April, while Lean was the latest to receive approval earlier this week.

REAL ESTATE-

Giorgio Armani launches first branded villas in RAK: Italian luxury fashion house Giorgio Armani — in partnership with RAK Properties and SIE Group — will launch its first-ever branded beach villas on Raha Island in Ras Al Khaimah, according to a press release (pdf).

LOGISTICS-

AD Ports Group eyes Egypt's oil storage network: AD Ports Group signed a MoU with Egypt’s Oil Ministry and Dubai-based TCM Project Management to explore joint development of Egypt’s crude oil storage infrastructure, according to a press release. The strategic network serves domestic and international energy markets.

MENA PE activity cools down in 1H 2025 — but it’s mostly good news amid signs of a maturing market -Magnitt

Private equity dealmaking in the region took a dip in 1H 2025 as investors recalibrated to focus on bigger transactions with strong fundamentals. Some 29 private equity transactions worth USD 2.9 bn were recorded in the first half of the year, marking a 38% y-o-y decline by count and an 11% drop in value, according to Magnitt’s 1H MENA PE report. This is the third consecutive half-year of cooling PE activity in the region.

General partners are adopting a more risk-averse stance, pivoting toward fewer, higher-conviction transactions on scale-ready platforms with strong fundamentals, according to the report. This explains why the y-o-y drop in PE transaction value is less significant than the decline in volume.

PE transactions in the region skewed larger, with the two biggest size brackets hitting five-year highs in 1H. Transactions in the USD 500 mn to 1 bn range accounted for 29% of total volume, and 42% of total value, while those over USD 1 bn comprised 14% of the count and 36% of the overall value. Smaller buyouts (under USD 50 mn) fell to a record low of 14%, while the USD 100-500 mn bracket nearly doubled y-o-y to 29% of total PE activity by count, and 18% by value. The report does not provide comparative figures for 1H 2024, only the whole of 2024.

A sign the market is maturing: The slowdown reflects a strategic recalibration in the region’s PE market rather than a retreat. “The MENA region’s PE recalibration is being led by scale-ready SMEs and high-conviction strategies, not withdrawal. The growing dominance of USD 100 mn+ transactions signals a maturing landscape ready to absorb larger pools of capital,” El Nahlawi said in a press release (pdf).

Growth capital and buyout transactions were nearly evenly split in 1H, with growth transactions slipping to 52% of total activity as buyouts gained ground despite tighter credit markets, El Nahlawi told us. The trend points to investors favoring plays where they can take a more hands-on role in operations and actively drive value creation, aiming for exits via trade sales or strategic mergers, she added.

SOUND SMART- Growth transactions involve minority investments in established but expanding companies, providing capital to fuel new markets, products, or acquisitions without taking control. Investors rely primarily on the company’s organic growth for returns, with exits typically via IPOs or secondary sales. Buyouts, by contrast, involve acquiring a majority or full stake, often using leverage to gain operational control, drive restructuring or efficiency improvements, and create value through active ownership. While growth transactions are about accelerating expansion, buyouts are about taking charge to unlock value and position the business for strategic sales or mergers.

The period also saw a rise in syndicated transactions, with four of the top five PE plays involving co-investments between local and international investors. These co-investments are enabling deeper due diligence, better risk-sharing, and stronger operational oversight, El Nahlawi said. She explained that partnerships between global funds and local players are leading to tighter valuation discipline and more sophisticated transaction terms, including performance-linked earnouts and tiered exit provisions, as foreign investors balance protection with access to local market expertise.

KSA bucks the PE downturn: Combined, Saudi Arabia and the UAE captured 86% of all private equity activity in the region. KSA was home to 13 transactions in the first half of the year, up 8% y-o-y, accounting for the lion’s share (45%) of total activity in the region, supported by local investor appetite. The UAE recorded 12 transactions (41%) over the same period, down 25% y-o-y, with more capital flowing in from international buyers. Egypt (down 89%) and Jordan (down 50%) each saw one transaction in 1H.

Sustainability and fintech emerged as standout sectors in 1H, with sustainability-related transactions accounting for 57% of disclosed funding, fueled by large transactions tied to energy transition initiatives, El Nahlawi told us. These sectors combine scale potential with strong alignment to regional policy priorities, making them prime targets under today’s selective capital deployment, she said. SMEs outside this scale-ready bracket face a widening funding gap, as smaller ventures without clear exit routes or policy backing may struggle to draw investor interest unless supported by accelerators, development funds, or niche positioning, she added.

The overall outlook: El Nahlawi noted that despite global macro uncertainty, the GCC — particularly Saudi Arabia and the UAE — continues to show structural strength and investor confidence. She added that with sovereign backing, a pipeline of maturing SMEs, and supportive regulation, the region is well-positioned to capture future private equity growth.

MARKETS THIS MORNING-

It’s a sea of red across Asian markets this morning, led by a decline in South Korean stocks — which fell over 2% — as investors mulled the impact of the US’ tariffs on the region. Over on Wall Street, futures are also slipping after the big tariff announcement last night, and as investors await a key jobs report later today.

ADX	10,371	+0.2% (YTD: +9.9%)
DFM	6,159	-0.8% (YTD: +19.4%)
Nasdaq Dubai UAE20	5,141	+0.2% (YTD: +23.4%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.1% o/n	4.2% 1 yr
TASI	10,920	+0.1% (YTD: -9.3%)
EGX30	34,198	+1% (YTD: +15%)
S&P 500	6,339	-0.4% (YTD: +7.8%)
FTSE 100	9,133	-0.1% (YTD: +11.7%)
Euro Stoxx 50	5,320	-1.4% (YTD: +8.7%)
Brent crude	USD 72.53	-1%
Natural gas (Nymex)	USD 3.10	-0.4%
Gold	USD 3,337.80	-0.3%
BTC	USD 116,620	-0.8% (YTD: +22.9%)
Chimera JP Morgan UAE Bond UCITS ETF	AED 3.53	0.0% (YTD: +1.4%)
S&P MENA Bond & Sukuk	146.69	-0.1% (YTD: +4.8%)
VIX (Volatility Index)	16.72	+8% (YTD: -3.6%)

THE CLOSING BELL-

The ADX rose 0.2% yesterday on turnover of AED 1.5 bn. The index is up 9.9% YTD.

In the green: Umm Al Qaiwain General Investment Co. (+14.2%), United Arab Bank (+7.3%) and Commercial Bank International (+6.7%).

In the red: National Bank of Umm Al Qaiwain (-6.5%), Abu Dhabi National Co. for Building Materials (-4.4%) and Agility Global (-2.5%).

Over on the DFM, fell 0.8% on turnover of AED 731.9 mn. Meanwhile, Nasdaq Dubai was up 0.2%.

My Morning Routine: Sid Bhatia, general manager and area VP for Middle East, Turkey, and Africa at Dataiku

Sid Bhatia, general manager and area VP for Middle East, Turkey, and Africa at Dataiku: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Sid Bhatia (LinkedIn), general manager and area VP for Middle East, Turkey, and Africa at Dataiku . Edited excerpts from our conversation:

My name is Sid, or Siddhartha, which actually means having clarity when it comes to goals and objectives. It’s interesting because I've always had a lot of clarity in terms of what I want to do and achieve. I've led some large startups in the region; I was the first person on ground for Cloudera back in 2016, and the first person on ground for Dataiku almost six years back. I've always been somebody who's good at building — whether it’s a business, a team, or company culture.

Having spent the last 20 years in the data and AI space and dealing with a lot of customers, you tend to know what's coming up next. I worked for IBM and SAP back in the day, and I saw this whole big data wave back in 2016, so I latched onto that wave before anybody else could.

Dataiku is a market leader when it comes to data science and machine learning, as well as AI agents. We have the ability today to do anything and everything related to AI, but our platform targets not just coders, but everyone across an organization. Given the advancements in the last 12-24 months in the LLM space, we developed the LLM Mesh, a gateway that allows access to features across LLMs from some of the largest generative AI firms in the world.

Dataiku today has about 75 large customers cutting across all industries, be it public sector, retail, banking, ins., telecoms, manufacturing, or oil and gas. Every business would have their own unique use cases — they could be around customer analytics, risk mitigation, or operational efficiency. We have our own roster of solutions but everything gets customized to the customer.

Sales is in my blood, but as you go up the ladder, I think, you have to strike the right balance in terms of how hands-on you can be while ensuring that, from a strategy perspective, the organization is heading the right direction. My responsibilities do involve me being heavily involved in the selling side of things, but I also have to make sure that all the cross-functional teams are aligned.

Everyone over the past six to 12 months has been interested in AI agents — it probably makes up around 95% of conversations around AI. That is where the industry is headed, because there are huge gains that you can get if you get it right. The problem with that is that every company, AI or not, is selling AI these days. It’s getting very competitive and is moving very fast, so it’s easy to build AI agents through smaller firms or with larger platforms. But the issue is not building the agents — it’s controlling them, governing them, making sure they are aligned with your organizational policy, putting in place the right guardrails and security policies, and preventing hallucinations.

There’s also still a lot of value to be gained from traditional AI use cases, and I would say that 90% of the customers are still implementing those traditional AI use cases as opposed to just generative AI and agents.

The past five years have been a huge success story, so now we want to focus on growing while staying grounded. We want to make sure we maintain our daily discipline in terms of staying close to our customer, but also ensure we really capture the market and scale the business.

At our weekly meetings, we look at our numbers and what we’re doing on a daily basis, but I always have a slide focusing on what I call “10x” — just to look at what we can do that takes us at least 10 years forward or grows the business by 10x. I use this to try to push people around me to think out of the box and come up with crazy ideas that people laugh at, and then see how we can actually make it happen.

The company is investing big into the Middle East, which is one of the fastest growing markets for Daiku worldwide. We have a large team here in Dubai, and one in Saudi Arabia as well, and we’re hiring across functions right now, with a big focus on post-sales roles to ensure that once customers buy our software, they’re actually seeing the value of it. We’re also growing our partner ecosystem, and want to expand it further into other territories like Turkey, Egypt, Bahrain, and Qatar.

I sleep late and get up early. The first thing I do in the morning is have coffee, and do some reading. I love reading, and I love following influential leaders on LinkedIn, so I really spend a lot of time looking at the latest AI trends, reading books on leadership, and writing articles.

At 8am, I’m ready for my first calls with customers. I love calling them early in the morning because they tend to get very busy after that. I also like to get my emails out of my inbox in 30 minutes, and then I'm in the office, with the team, trying to solve the biggest problems of the day, delegate and make sure I'm as involved as I can be. I tend to meet as many customers as I can, and then I’m out of the office usually by 7pm to spend some time with my family.

Whenever I get time, I go for a quick game of golf. I also love camping over the weekends.

Regardless of what the weather pattern looks like, eight times out of 10 I'll be camping on the weekends with my friends or family, getting people together. I find it to be a great way to disconnect before getting ready for another Monday morning.

One book I love is Never Split the Difference. It has helped me with negotiations with partners, customers, and in my personal life as well. It really emphasizes the importance of active listening and being empathetic in negotiations, and not just focusing on the financial aspects of things. I’ve asked my team to read that book as well.

One important piece of advice that somebody gave me, and I wish I got it earlier, is to think big. A lot of people think they’re not ready to take risks or that this is something for a person at a different level or stage in their lives, but the advice I got was to have no fear and take the bigger risks in life. The bigger risk would mean a bigger reward as well.

CALENDAR

AUGUST

8-15 August (Friday-Friday): Expected trading window for Al Mal Capital REIT’s new units on the DFM.

SEPTEMBER

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

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

8-10 September (Monday-Wednesday): WHX-Tech Expo, Dubai World Trade Center.

8-19 September (Monday-Friday): Universal Postal Congress, Dubai World Trade Center.

8-18 September (Monday-Thursday): BHM Capital Financial Services’s AED 200 mn rights issue will be open for subscriptions.

10-11 September (Wednesday-Thursday): MENA Public-Private Partnership Forum, Dubai.

10-20 September (Wednesday-Saturday): IFMA Youth World Muay Thai Championship, Abu Dhabi.

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.

23-24 September (Tuesday-Wednesday): MENA EV Show, The Agenda, Dubai Media City.

24-25 September (Wednesday-Thursday): The KT UniExpo, The H Dubai.

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 Center.

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

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 October (Thursday): Family Office Summit, Park Hyatt, Dubai.

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

12–15 October (Sunday-Wednesday): Expand North Star, Dubai Harbor.

14-16 October (Tuesday-Thursday): Global Future Councils, Dubai.

15-18 October (Wednesday-Saturday): Middle East Electric Vehicle Show, Expo Center Sharjah.

20 October (Monday): Reuters NEXT Gulf Summit, The St. Regis Saadiyat Island Resort, Abu Dhabi.

22-24 October (Wednesday-Friday): World Investment Conference, Expo Center 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

4-9 November (Tuesday-Saturday):Dubai Design Week, Dubai.

11-17 November (Tuesday-Monday): International Council of Museums (ICOM) General Conference, Dubai

12 November (Wednesday): Dubai Business Forum, Cipriani South Street, New York City.

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 Center, Expo City.

17-21 November (Monday-Friday): Dubai Airshow, 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.

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

Signposted to happen sometime in 2025:

e& will complete Adnoc’s private 5G network.
Executive Committee Meeting (EXCOM 2025) conference of the World Smart Sustainable Cities Organisation (WeGO)

Signposted to happen sometime in 2H 2025:

Closing of XRG's acquisition of Covestro

JANUARY 2026

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

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

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

FEBRUARY 2026

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

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

Signposted to happen in 2026:

31 March - 2 April (Tuesday-Thursday): Arab Media Summit, Dubai.
13-15 April ( Monday-Wednesday) : The International Glass Manufacturing Show, Dubai.
14-16 April: (Tuesday-Thursday): the International Property Show, Sheikh Zayed Rd, Dubai.
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
Dubai Future Finance Week
Investopia Global Talks, Tashkent

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:

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

Sections

About

Privacy & Support

Get EnterpriseAM daily