Inflation cools in Abu Dhabi + Dubai in April

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WHAT WE’RE TRACKING TODAY

THIS MORNING: TSMC is reviving potential plans for a USD multi-bn advanced chip factory in the UAE

Good morning, ladies and gentlemen, and welcome to the first workweek of a new month. We’re starting off the week with what we like to call a Goldilocks issue — not quite a slow cycle, certainly not an overwhelmingly busy Monday morning.

Leading the news well this morning: Fresh figures out of Abu Dhabi and Dubai point to cooler inflation in both emirates in April, with a steep decline in transport prices in Abu Dhabi helping to keep inflation in check.

ALSO- Mubadala invested in a new USD 1.7 bn convertible bond issuance from popular messaging platform Telegram, along with other major institutional investors such as BlackRock.

^^ We have chapter and verse on these stories and more in this morning’s newswell, below.

WATCH THIS SPACE-

#1- UPDATE- DFM-listed district cooling heavyweight Tabreed and Luxembourg-based PE firm CVC are reportedly in exclusive negotiations to acquire the cooling arm of ADX-listed Multiply Group — Pal Cooling Holding — in a transaction expected to exceed USD 1.1 bn, Reuters reports, citing sources it says are familiar with the matter. Bilateral talks have commenced, the sources said, implying that the consortium is positioned ahead of other bidders including KKR, Investcorp, and ADX-listed Taqa.

#2- TSMC’s UAE chip plant plans are back on the table: Taiwanese chip manufacturer TSMC is again considering a potential multi-bn USD advanced chip factory in the UAE, Bloomberg reports, citing people familiar with the matter. The proposed site will reportedly be a “gigafab” — a complex of six factories — but it’s unlikely that TSMC would break ground on the complex for “several years.”

Behind the scenes: TSMC — a big player in the semiconductor supply chain providing for the likes of Nvidia — has reportedly held multiple meetings with the US’ Middle East Special Envoy Steve Witkoff and Abu Dhabi AI fund MGX in recent months, as any facility would require US administration approval. Talks were shelved under the previous administration following US security concerns. They have since resumed under Trump amid growing UAE-US AI ties.

ICYMI- Last September, TSMC and Samsung were both reportedly exploring UAE chip facilities last year, holding early talks with UAE officials. Mubadala was said to be in talks to fund the projects, which faced hurdles from water scarcity to managing geopolitical sensitivities, especially with Washington and Beijing. OpenAI CEO Sam Altman had also reportedly met with UAE figures, including Sheikh Tahnoon, to explore launching a chip venture for his firm in partnership with TSMC.

#3- Emirates plans to continue operating its fleet of more than 100 Airbus A380s until the end of the next decade, Bloomberg quotes the president of the country’s flagship carrier Tim Clark as telling journalists. The carrier will introduce another round of first-class cabin upgrades as part of a USD multi-bn refresh as it waits on the delivery of aircraft to replace the A380, which carries with it high operational costs.

REMEMBER- Emirates began receiving Airbus A350s earlier this year, with up to 15 more set to arrive this summer. The airline is holding off on ordering the A350-1000 due to concerns over engine durability, and it is still awaiting the delayed Boeing 777X, now expected between late 2026 and 1Q 2027, Clark said. It is also retrofitting dozens of Airbus and Boeing aircraft under a USD 5 bn upgrade program, and aims to expand its fleet with 315 new aircraft by 2032 — including 65 A350s, 240 Boeing 777X and 787s, and 10 cargo planes.

ALSO- Clark criticized Boeing and Airbus for prolonged supply delays that are holding back fleet upgrades, Reuters reports, citing comments made by Clark on the sidelines of the IATA airline summit. He highlighted the six-year delay of the 777X delivery.

#4- An undisclosed shareholder in First Abu Dhabi Bank (FAB) is offloading a 1% stake (good for 113 mn shares) at a fixed price of AED 15.5 apiece — 3.7% lower than Friday’s close — Bloomberg reports, citing terms it had seen. The lender’s share price rose to a two-year high on Thursday, before shedding 3.2% to settle at AED 16.1 apiece on Friday’s close. The price values the transaction at AED 1.75 bn. Citi is the sole arranger on the transaction.

#5- Adani pulls the plug on its Emaar play: Adani Group’s real estate arm reportedly decided to walk away from a potential acquisition of Emaar Group’s India operations, after the two sides failed to agree on valuation, Bloomberg reports, citing sources it says are familiar with the matter. The business information service said in March that the transaction could see an unlisted Adani unit invest USD 400 mn in equity in Emaar India at an enterprise value of USD 1.4 bn.

#6- UAE customers bear the brunt of heightened container prices: UAE buyers are facing price hikes amid a surge in shipping costs driven by the US-Sino trade war and export scramble, Vice Chairman of Danube Group Anis Sajan told Khaleej Times. “Shipping costs have more than doubled over the past 10 to 15 days. We used to pay between USD 1k to USD 1.4k per container, but now we’re being quoted USD 2k to USD 3k,” Sajan added. The hike will likely impact firms that will not be able to sustain the high costs, indicating that UAE residents are likely to “see prices increase in certain goods, particularly imported building materials and essential items,” Sajan noted.

Traders struggle to find availability: A temporary relaxation of tariffs between the two countries has not only shot up prices, but also tightened container availability. “In some cases, we’re willing to pay double, but we still can’t secure containers,” he added. Small and Medium Enterprises (SMEs) are particularly vulnerable, with the spike in costs and delays damaging supply chains.

PSAs-

#1- Fuel prices are more or less staying the same in June: The Fuel Price Committee left most fuel prices unchanged from May, with only diesel seeing a slight decline, according to a post on X.

The new breakdown per liter:

Super 98 is AED 2.58, unchanged from May;
Special 95 is AED 2.47, also unchanged;
E-Plus 91 remains at AED 2.39;
Diesel is AED 2.45, down from AED 2.52 last month.

#2- RTA to revamp Umm Suqeim Street, expand Al Qudra corridor: Dubai’s Roads and Transport Authority (RTA) will upgrade the section of Umm Suqeim Street between Jumeirah Street and Al Khail Road, according to a Dubai Media Office statement.

Upgrade will include pedestrian walkways, cycling tracks, and direct metro access to nearby communities. Six major roads, including Sheikh Zayed road and Al Khail road, will see upgraded intersections, and the RTA will build four bridges and three tunnels. It will increase vehicle capacity to 16k vehicles per hour and reduce travel time between Jumeirah Street and Al Khail Road from 20 minutes to six.

Al Qudra Road works also in the pipeline: The RTA will also upgrade key intersections along Al Qudra Road by building 2.7k meters of bridges, widening 11.6 km of road, and building 3k of services roads alongside Sheikh Zayed bin Hamdan Al Nahyan street.

THE BIG STORY ABROAD-

Hopes for a breakthrough in Ukraine’s war with Russia faded further yesterday after both sides exchanged some of their most intense strikes of the conflict. Ukraine launched its longest-range drone assault of the war, hitting five Russian airfields — including in Murmansk and deep into Siberia — in an attack Kyiv says damaged more than 40 aircraft. The operation, which involved 117 drones had been in the works for more than a year, President Volodymyr Zelenskyy said. Moscow responded with its largest aerial barrage since the war began, firing 472 drones and seven missiles overnight. At least 18 locations were hit, including a military training base in eastern Ukraine that killed 12 soldiers and wounded more than 60.

The strikes come on the eve of direct ceasefire talks in Istanbul, where Ukraine will present a proposal today calling for a full truce monitored by the US, the return of abducted children, and no recognition of Russia’s territorial claims. Despite recent diplomatic overtures, both sides remain far apart on core issues, with Ukrainian officials warning that Moscow has yet to provide its own written peace terms. (Reuters | Associated Press | New York Times | Financial Times)

And in election news, nationalist candidate Karol Nawrocki in Poland’s presidential election is leading with a razor-thin lead over pro-EU Warsaw mayor Rafał Trzaskowsk. A Nawrocki win, if confirmed, could derail current Prime Minister Donald Tusk’s reform agenda, deepen political gridlock, and shift Poland’s stance away from the EU and its support for Ukraine. (Financial Times | Guardian)

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Oil WATCH-

Opec+ will accelerate oil production for the third month in a row, adding 411k barrels per day (bbl / d) in July, according to a statement. That’s a three-month worth of supply increments that will be delivered all at once next month.

The oil group once again cited healthy market fundamentals as the driver behind the decision, adding it provides countries a new possibility to speed up overproduction compensation.

Not everyone is on board, it seems: Russia, Algeria, and Oman reportedly called for a pause in the production increases, citing concerns regarding the speed of unwinding cuts, unnamed delegates told Bloomberg. The big increases drove down oil prices this year, hovering around the USD 65 / bbl level.

The next meeting: Member countries agreed to meet again on 6 July to address production levels for the month of August.

Abu Dhabi + Dubai inflation cools in April

Abu Dhabi’s consumer price index fell by 0.1% y-o-y in April 2025, down from a 0.1% rise in March, according to data from the Abu Dhabi Statistics Center. Inflation was at its lowest level in the emirate since November 2024, NBK Senior Economist Issa Hijazeen told EnterpriseAM. On a monthly basis, inflation remained unchanged, after it had recorded a 0.5% drop a month before.

The annual picture: Prices rose at least slightly in the majority of categories in April on an annual basis, led by a 14.4% price jump in the ins. and financial services basket, and a 8.4% rise in recreation and culture. However, this was offset by an 11.2% decline in transport prices, as well as a 0.2% decline in the prices of household furnishings. The drop in transport prices came “in line with the decline in domestic pump fuel prices,” Hijazeen said.

On a monthly basis, the recreation and culture segment saw the sharpest m-o-m rise with a 6.3% increase, followed by restaurants and hotels with a 2.1% rise. Meanwhile, transport prices fell by 3.1% on a monthly basis.

Meanwhile, in Dubai: Dubai’s annual inflation also dipped in April, coming in at 2.31% y-o-y, compared to 2.79% in March, and extending a softening trend since January’s peak of 3.22%. The decline was mostly due to a “meaningfully lower petrol price offsetting still elevated upwards pressure on housing,” Emirates NBD said in its research note.

How the UAE’s overall inflation is expected to play out this year: The IMF now expects the UAE’s inflation figure to come in at 2.1% in 2025, in what is a slight upward revision from the fund’s earlier estimate of 2% inflation for 2025. This puts the IMF’s prediction just above that of the Central Bank of the UAE, which penciled in a 2.0% inflation rate for the country this year. “Overall inflation is expected to remain subdued in 2025 due to the decline in oil prices and the expected gradual decline in global inflation,” Hijazeen said.

Mubadala invests in Telegram’s USD 1.7 bn convertible bond issuance

Mubadala was among the institutional investors backing a USD 1.7 bn convertible bond issuance from Telegram, joining other existing backers such as US-based BlackRock, Bloomberg reports. Telegram, the widely used messaging app, previously secured investment from Mubadala in its 2021 bond sale. The latest issuance moved forward despite mounting legal scrutiny facing CEO Pavel Durov in France.

The five-year notes, priced at a 9% yield, give holders the option to redeem at 80% of the IPO price if Telegram lists before maturity — similar to terms in its 2021 offering, according to undisclosed sources familiar with the matter.

A portion of the proceeds will be used to repurchase USD 955 mn of its debt maturing in 2026, while the remainder of the issuance will see Telegram raising USD 745 mn in new financing. “With this new funding, we now have more than enough resources to repay the remaining portion of our 2026 bonds,” Durov said.

ICYMI- Durov, who returned to Dubai earlier this year, faces preliminary charges in France of failing to assist authorities investigating unlawful activity on the platform. Durov sought special permission to travel to the US for talks with investors last month but French prosecutors rejected the request, The Wall Street Journal reports. The company was also fined USD 80k by a Moscow court for allegedly for not removing content it says promoted terrorist attacks, pro-Ukrainian actions, and calls for anti-government protests.

Mubadala — the most active sovereign wealth fund last year — continues expanding in private credit. Its private credit portfolio reached USD 20 bn bn in 2024, with the asset class delivering its strongest performance for a third year running.

Hong Kong-based HPH + Ajman Port and Customs to invest AED 1 bn into port revamp

Ajman Port to get an AED 1 bn revamp: The Department Of Ports and Customs Ajman inked an MoU with Hong Kong-based logistics firm Hutchison Port Holdings (HPH) to expand and establish the infrastructure at the port, according to a statement. The pair will foot the bill together for the project’s AED 1 bn investment. The timeline for the project was not disclosed.

What we know so far: HPH will operate, manage, and develop the port under a 15-year concession period. Under the agreement, the two parties will develop a strategic plan for the project to boost performance, safety, operational efficiency, and attract new shipping lines. The project will also aim to integrate AI-powered programs to streamline operations at the port.

Longtime friends: The Hong Kong-based operator first inked an agreement with Ajman Port Authority to operate the port’s container terminal for a 10-year concession period under its subsidiary Hutchison Ajman International Terminals (HAJT) back in 2011. HAJT took over management at the port effective from 2012.

About Ajman Port: The port — nestled nearly 25 km from Dubai and 10 km from Sharjah — serves as a key maritime hub for local export and import flows and hosts prominent manufacturing and trading firms. The container terminal spans some 12.9 hectares and has a total quay length of 1.25k meters.

Not HPH’s first port development venture in UAE: The firm inked a 25-year concession agreement with Ras Al Khaimah Ports (RAK) to develop a 350k TEU capacity container terminal at Saqr Port back in 2017. RAK extended HPH’s contact last month — with the firm set to continue offering its services at the port until 2037.

IN OTHER LOGISTICS NEWS-

UAE + Malaysia ink maritime, food security MoUs: The Investment Ministry inked an MoU with Malaysia’s Perak State Development Corporation to develop a multipurpose terminal at Began Datuk Port and collaborate in the reinforcement of global food security, according to a statement released on Thursday. The agreement was signed by Investment Minister Mohamed Hassan Al Suwaidi and Perak State Development Chairman Yab Dato’ Seri Mohamed during the ASEAN-GCC Economic Forum held in Malaysia.

The multipurpose terminal is set to operate as a key gateway for Malaysia’s food exports, located as a link between China, ASEAN states, and the GCC, Wam reported on Friday. The agreement also pertains to the development of a Halal Industries and AI hub at the port, Edge Malaysia reported on Thursday.

Background: The UAE signed a comprehensive economic partnership agreement (CEPA) with Malaysia in March. The project looks to build on the pair’s existing non-oil trade, with the UAE standing out as Malaysia’s second-biggest trading partner in the region — accounting for 32% of the nation's total trade with the region. Bilateral trade hit USD 4.9 bn in 2023 and USD 4 bn in the first nine months of 2024, Wam added.

Austria’s OMV exits Ghasha concession

Austria’s OMV has exited Abu Dhabi’s Ghasha concession, after selling its 5% stake to Russia’s Lukoil for USD 594 mn, minus a USD 100 mn transaction fee, according to a press release. The transaction doubles Lukoil’s stake in the project to 10%.

After the shuffle, Adnoc remains the majority stakeholder with a 70% share, following its acquisition of 15% from Italy’s Eni, which now holds 10%. Russia’s Lukoil now owns 10% after doubling its stake through OMV’s exit, while Thailand’s PTTEP holds the remaining 10% after acquiring Germany’s Wintershall Dea’s share last June.

The Ghasha concession includes a cluster of offshore oil and gas fields, such as Hail, Ghasha, Dalma, Nasr, Sarah al Razboot, Bu Haseer, Shuweihat, and Mubarraz sour gas fields.

BACKGROUND- Adnoc and its partners awarded nearly USD 17 bn in EPC contracts for the Hail and Ghasha development project in 2023 — one of the largest single-project investments for the Abu Dhabi energy giant. The USD 20 bn gas concession is expected to come online with a daily production capacity of 1.5 bn cbf of gas and 120k barrels of oil and condensates, Bloomberg reports. Adnoc and OMV also agreed terms of an agreement to merge their polyolefins business in March, with the merger set to be completed in 1Q 2026.

Mashreq eyes digital trade products + unsecured instant lending as it doubles down on SME financing this year

Our friends at Mashreq are targeting 100k SME customers by the end of the year, up from 70k currently, as the Emirati lender doubles down on SME financing through new flexible financing products and more digitization, head of business banking and NeoBiz, Rajeev Chalisgaonkar, told EnterpriseAM UAE. Within the bank’s retail banking group, SMEs currently

account for a significant part of revenues and profits, Chalisgaonkar said.

The bank is piloting several SME-focused initiatives to reach that target, including introducing unsecured lending, soft tokens, and more trade financing products on its new SME-focused business banking app, Mashreq Biz. The app has already become the top-rated business banking app in the UAE, averaging a 4.9 rating across both iOS and Android app stores since its launch in February, Chalisgaonkar told us.

Mashreq Biz is also key to Mashreq’s plans to secure more clients and retain existing ones. Among the metrics they use to measure success? The number of calls to their contact center, which on average take around 6.5 minutes. “That number used to be 400 per 1k customers — it is now down to 309,” Chalisgonkar said. That means a reduction of around 25% since the launch of the app. The goal is to take that number down further to 180, he added. Other transactions like fund transfers are also taking less time than before, down from 10-15 minutes to half a minute, he added.

Soft tokens, set to be rolled out by the end of this quarter, will replace one-time passwords (OTPs), which are a lot less reliable, especially if a client is traveling which can impact deliverability, Chalisgonkar explained. Instead, soft tokens — like digital certificates planted on your device — will be reliable so long as you have your phone on you.

The bank also plans to introduce three or four more trade finance products to the app, Chalisgonkar said. Currently, SME clients can request letters of credit or letters of guarantee directly through the app, but clients want more. “Dubai is a massive trade hub,” he said. “Almost every company here is doing something internationally… it’s a heavily externalized economy, which means that the biggest demand is for simple and easy cross-border transaction products,” he added.

There’s also increased demand for more flexible working capital. “We recognize that, especially in segments like NeoBiz, there are lots of companies that were set up two or three years back, and they’re getting to a stage where they are growing fast and need working capital, but don't necessarily have any kind of property or other assets to offer,” he explained.

The bank plans to introduce unsecured lending for small tickets in the lower single-digit mns, with an eye to pilot the new initiative in the next two months and launch it later this year, Chalisgaonkar said. The goal is to allow SMEs to receive approval for their financing in less than a day. “Open banking will play a role because that will allow us to get all that data digitally, like VAT statements and corporate tax data, for example,” he said.

This is not the only way Mashreq is helping SMEs secure working capital faster — the lender recently partnered with NeoPay — and Network International before that — to introduce PoS lending tailored to merchants in the UAE. Lending can go up to AED 4 mn per transaction, and the facility is approved solely based on PoS sales data, with in-principle approval taking 15 minutes, Chalisgaonkar said.

How much can PoS data tell you? A lot. “It’s not just about the AED 2 mn received through the machine last month — we look at whether or not they are regular payments, what the variability of flows are like, how often there are funds returned to customers — so there’s around 10 different data points we look out for,” he explained.

To mitigate risks of default, “we make sure to do KYC on merchants, and we run a report on the individuals running the company to see their credit scores, because there is a very clear correlation between personal behavior of SME owners in financial terms and the company's financial behavior,” he added.

Mashreq is also planning on expanding NeoBiz outside of the UAE: The bank is preparing to launch the SME digital banking proposition in Egypt this year, following the conclusion of piloting and testing, which is currently underway, and pending approvals from the Central Bank of Egypt, he told us. Pakistan would follow with a launch later this year or early next year.

Dubai’s Bybit sets up EU HQ in Vienna

CRYPTO-

Bybit secures MiCAR license, sets up EU headquarters in Vienna: Dubai-based crypto exchange Bybit received a markets in crypto-assets regulation (MiCAR) license from Austria’s Financial Market Authority, according to a press release. The license means it can legally operate as a crypto-asset services provider across the 29 European Economic Area countries.

M&A WATCH-

EgyFert shareholders sell to Nas in partial response to MTO: Shareholders in EgyFert agreed to sell 1.8 mn shares to UAE-based Nas Investment Holding, following a mandatory tender offer to acquire up to 57.5% of the company at EGP 102 per share, according to an EGX bulletin (pdf). The shares tendered represent 33% of the stake Nas was targeting, bringing its total holding in EgyFert to 51.4%, according to our calculations. Nas had sweetened the offer last week, raising its offer from EGP 95 per share. There’s no publicly available information about the minimum acceptance level.

ADVISORS- Nas enlisted Al Ahly Pharos as broker on the transaction, while MHR & Co and White & Case are legal advisors.

REAL ESTATE-

#1- Sky AD is getting a piece of Egypt’s Ras El Hekma: Emirati real estate developer Sky Abu Dhabi (Sky AD) has acquired a 450-feddan plot in Egypt’s ADQ-backed Ras El Hekma project, where it will develop a fully integrated residential and tourism project, the company said in a statement (pdf). The developer is targeting EGP 240 bn (c. USD 4.8 bn) in sales from the project, which comes as the company plans to double investments in Egypt.

REFRESHER- Last July, the real estate developer said that it was in talks with the Madbouly government over a 200-600 acres plot of land in the North Coast.

#2- Amlak sells Dubai plots to Emaar for AED 2.9 bn: Amlak Finance’s board approved the sale of its lands in Dubai’s Ras Al Khor to Emaar Developments, according to a DFM disclosure (pdf). This follows a general assembly resolution in March approving the sale and authorizing the board to conclude it. The sale transaction is valued at AED 2.9 bn and expected to close by 31 July 2025.

The moves comes as part of a wider repayment agreement as the firm looks to shore up greater financial flexibility and meet a commitment to settle its outstanding debts of AED 1.4 bn by October 2026. As of last December it had reduced its liabilities by AED 800 mn and also floated the idea of exiting the real estate financing sector to strengthen its balance sheet.

#3- Egypt’s Madinet Masr expands to UAE: Egyptian real estate developer Madinet Masr is setting up a subsidiary in Dubai — called Cities of the World — to manage all its projects outside of Egypt, according to a press release (pdf). The move is “a key part of Madinet Masr’s strategic expansion plan, which aims to strengthen the company’s regional and international presence and unlock new [prospects] across a range of real estate development sectors,” according to the statement. The UAE-based company will serve as the company’s international holding company, which will have under its wings dedicated entities to each target market, a company representative told EnterpriseAM.

We had an idea this was coming: CEO Abdallah Sallam mentioned in March that the developer was in talks with potential partners in the UAE and Saudi Arabia for its planned GCC expansion. The developer’s Senior Vice President of Product Development Mohamed Lashien (LinkedIn) will serve as managing director of the newly-established subsidiary following its official launch.

AVIATION-

DAE to lease 2 aircraft to Royal Air Maroc: Dubai Aerospace Enterprise (DAE) signed an agreement with Morocco's state-owned airline, Royal Air Maroc, to lease two Boeing 737-8 MAX aircraft, Asharq Business reports. DAE delivered the first aircraft on Friday, with the second to follow soon. This marks Royal Air Maroc's first aircraft lease agreement with a Gulf lessor, however the transaction value wasn’t disclosed.

This comes as part of a wider fleet shuffle from DAE, having offloaded 75 air carriers to Azzora and another undisclosed party last week, as well as acquiring 17 aircraft in March and selling 7 in January.

MANUFACTURING-

#1- EGA to almost double solar aluminum supply to Hyundai Mobis: Emirates Global Aluminium inked an expanded supply agreement with auto parts maker Hyundai Mobis to increase deliveries of its CelestiAL aluminium from the 8k tonnes provided this year to up to 15k annually by 2026, the company said in a press release. CelestialAL is aluminum produced using solar power.

And more: Both sides also plan to explore a post-2026 framework covering value-added products like billets, primary foundry alloys, and recycled aluminum. They will also co-develop new alloys tailored to automotive use.

#2- Dubai-headquartered Gold Metal DMCC opened a specialized facility at Dubai Investment Park 2, establishing the UAE’s first integrated operation for refining, recovering, and recycling precious metals, Al Bayan reports. The center’s main services include refining, secure storage, precious metals trading, and certified laboratory analysis. The facility uses Italian-manufactured equipment and houses internationally certified laboratories.

DISPUTES-

Shuaa files AED 260 mn claim against former executives: Dubai-based investment platform Shuaa Capital initiated legal action against members of its former management team, seeking AED 260 mn in damages over alleged misconduct that the firm says contributed to its financial losses, according to a disclosure (pdf).

The lawsuit follows disclosures in August 2024 and last February, where Shuaa flagged its intent to pursue legal proceedings to recover losses and protect shareholder interest after it dodged an AED 22 mn payout in a lawsuit filed by one of the same former executives. Shuaa said it will inform the market and shareholders of any material updates.

ENERGY-

The Abu Dhabi Department of Energy (DoE) has launched phase two of its Demand Response Pilot Project, in partnership with Energy Pool and consultant Guidehouse, state news agency Wam reports. The project allows major industrial and commercial users to manage electricity demand during peak hours using advanced digital tools and improve grid flexibility.

What’s new in phase two? A year-long pilot phase will see 30 industry and commercial players pool 250 MW of flexible demand capacity and assess their load-shedding capabilities using smart monitoring tools. The move builds on a successful pilot in 2024, where 12 major industrial and commercial players reduced peak demand by an average of 106 MW across 10 events — with a maximum cut of 210 MW, demonstrating the viability of demand-side flexibility as a scalable energy resource in Abu Dhabi.

STARTUPS-

Sheraa + Continuous Ventures partner for startup funding: Sharjah Entrepreneurship Center (Sheraa) signed an MoU with US-based venture capital firm Continuous Ventures Capital to expand funding access for Emirati early-stage startups, according to a LinkedIn post. The agreement, focusing on pre-seed and seed stage firms, was signed on the sidelines of an investor conference attended by backers with a total capital pool of USD 671 mn, including Global Ventures, Oraseya Capital, Wamda Capital, Beco Capital, and Shorooq Partners, Sharjah24 reports.

BUSINESS-

Dubai Chamber opens Thailand office: Dubai International Chamber has opened an office in Bangkok, its 36th internationally, according to a Dubai Media Office statement. The office will work to attract Thai businesses to Dubai while assisting Dubai-based companies entering the Thai market.

By the sector: The chamber cited rental services, renewables, freight and medical tourism as promising Thai sectors for Emirati companies, while Emirati exports of fertilizer, metals, and livestock feed sectors could have potential in the Thai market.

TRADE-

The UAE-Serbia comprehensive economic partnership agreement (CEPA) has entered into force, adding to the 27 existing agreements, Wam reports. The pact eliminates or reduces customs duties on over 96% of tariff lines, and is expected to contribute USD 351 mn to UAE GDP by 2031. Priority sectors for collaboration include renewable energy, agriculture, logistics, and technology.

Abu Dhabi Energy Department agriculture agritech ALSO ON OUR RADAR Aviation Bybit Climate Change and Environment Ministry CRYPTO Dubai Aerospace Enterprise Dubai Chambers Egypt Emirates Global Aluminium Emirates Growth Fund energy gold investment MANUFACTURING Real estate Sharjah Sharjah Entrepreneurship Centre Shuaa Capital startups

8

PLANET FINANCE

Proposed sukuk reforms may risk fracturing USD 1 tn Islamic debt market

Planned sukuk reforms could fracture a USD 1 tn market: A proposed overhaul to Shariah Standard 62 by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is raising concerns across the Islamic finance sector, with market players warning it could destabilize the sukuk market — a major funding source across the MENA region and beyond, the Financial Times reports. Recent estimates see global sukuk volumes surpassing USD 1 tn in 2025, having represented 12% of all emerging market USD-denominated debt in 2024 and 25% of total USD debt capital market issuances in the GCC, Malaysia, Indonesia, Turkey, and Pakistan.

The planned revisions aim to make sukuk less like conventional interest-bearing debt, and more in line with Islamic Shariah principles. It would mean moving from an asset-based model to a stricter asset-backed structure, where sukuk holders would gain full legal ownership of the underlying assets and expose them to additional risks like defaults. It could also increase costs and red tape for issuers through additional asset transfer and legal documentation.

The returns: Currently, sukuk holders receive periodic distributions and their initial investment back at maturity, while the asset itself stays under the issuer’s name. Under the new setup, the asset might be transferred to a special purpose vehicle (SPV) controlled by investors who would get monthly returns and eventually resell the asset to the issuer.

The shift could blur the line between sukuk and an equity investment, potentially making them less attractive to investors seeking shariah-compliant fixed-income instruments. It also presents practical challenges for major issuers like the UAE, Saudi Arabia, and Indonesia, where handing over legal ownership of state assets can be difficult.

The number of foreigners holding sukuk could also dip on the back of legal restrictions regarding the ownership of property and land. Uneven application across jurisdictions could also lead to fragmented practices, greater legal ambiguity, and reduced market liquidity.

Fitch Ratings warned last March that the proposed sukuk could fall outside the scope of traditional credit rating systems — a red flag for institutional investors like sovereign wealth funds that depend on rated instruments to allocate capital.

Currently the AAOIFI is still consulting stakeholders, with the finalized standard expected sometime in 2025. Many advocate for a gradual rollout, dialogue with rating agencies to ensure sukuk remain viable for institutional portfolios, and flexibility to make legal amendments if needed.

MARKETS THIS MORNING-

It’s a sea of red across Asian markets this morning, following an announcement from US President Donald Trump at the end of last week that steel import tariffs will be doubled to 50% as of this Wednesday. South Korea’s Kospi is timidly in the green in early morning trading, while the Nikkei and Hang Seng are down. Futures suggest markets across Europe and North America will follow suit at the opening bell later today.

ADX	9,685	-0.6% (YTD: +2.8%)
DFM	5,481	-0.2% (YTD: +6.2%)
Nasdaq Dubai UAE20	4,492	-1.2% (YTD: +7.9%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.0% o/n	4.2% 1 yr
TASI	10,825	-1.5% (YTD: -10.2%)
EGX30	32,500	-0.6% (YTD: +9.3%)
S&P 500	5912	-0.01% (YTD: +0.5%)
FTSE 100	8772	+0.6% (YTD: +7.3%)
Euro Stoxx 50	5367	-0.1% (YTD: +9.6%)
Brent crude	USD 63.87	+1.7%
Natural gas (Nymex)	USD 3.53	+2.3%
Gold	USD 3315.40	-0.9%
BTC	USD 105,170.50	+0.3% (YTD: +12.4%)
Chimera JP Morgan UAE Bond UCITS ETF	AED 3.65	+0.0% (YTD: +2.4%)
S&P MENA Bond & Sukuk	143.56	+0.1% (YTD: +2.6%)
VIX (Volatility Index)	18.57	-3.2% (YTD: +7.0%)

THE CLOSING BELL-

The DFM fell 0.2% on Friday on turnover of AED 3.6 bn. The index is up 6.2% YTD.

In the green: Amlak Finance (+14.3%), Dubai Refreshment Company (+10.9%) and Emirates Investment Bank (+6.0%).

In the red: Amanat Holdings (-2.8%), Emirates Central Cooling Systems Corporation (-2.5%) and Emirates NBD (-2.4%).

Over on the ADX, the index fell 0.6% on turnover of AED 4.6 bn. Meanwhile, Nasdaq Dubai fell 1.2%.

CORPORATE ACTIONS-

Fertiglobe purchased 600k of its shares on the ADX, according to an ADX disclosure (pdf). The shares represent 0.0072% of issued capital and were acquired at an average price of AED 2.48 per share.

IN CONTEXT- This transaction is part of a buyback program approved in May to buy back up to 2.5% of its issued shares. To date, Fertiglobe has bought back 38.8 mn shares, or 0.4674% of its issued capital.

CALENDAR

5 June (Thursday): Arafat Day, public holiday.

6-9 June (Friday-Tuesday) Eid Al Adha, public holiday TBD.

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.

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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