Non-oil sector continues to show signs of weakening demand. PLUS: G42 to sell 2% stake in Presight

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WHAT WE’RE TRACKING TODAY

Another hiccup in Adnoc’s Covestro takeover + Opec+ to weigh another supply hike on Sunday?

Good morning, friends, and happy THURSDAY (aka the final day before the long weekend). We wrap this short workweek with yet another packed issue, as September brings the news cycle back to full throttle.

We have a handful of big stories here at home, including the latest purchasing managers’ index showing continued growth, despite an ongoing trend of weakening demand; and another secondary sale, this time from G42, which is selling down a 2% stake in Presight.

Plus: Mubadala is acquiring a stake in Romania’s Rezolv Energy; Khazna Data Centers has lined up USD 2.62 bn in debt from local banks to fund its expansion; and the Finance Ministry issued new decisions to broaden the scope of freezone activities exempt from corporate tax.

***A QUICK PROGRAMMING NOTE- EnterpriseAM UAE will be taking tomorrow off in observance of the Prophet Muhammad’s birthday. We’ll be back in your inboxes bright and early on Monday with everything you have missed over the long weekend.

☀️WEATHER- Temperatures in Dubai will peak at 42°C today, before dipping to 32°C overnight, while Abu Dhabi will see highs of 44°C and lows of 31°C. Expect more light winds and a chance of rainfall in some areas, the National Center of Meteorology says (pdf).

WATCH THIS SPACE-

#1- EU set to pause probe into Adnoc’s Covestro buy, causing further delays: EU antitrust regulators are preparing to temporarily halt their investigation into Abu Dhabi National Oil Company’s (Adnoc) EUR 14.7 bn (USD 17.2 bn) acquisition of German chemicals company Covestro, Reuters reports, citing a person with direct knowledge of the matter. The pause would give the European Commission more time to gather information ahead of its 2 December deadline, the source said.

XRG is not happy about the delay: A spokesperson from Adnoc’s international investments arm and the acquiring entity was cited by Reuters as saying that some of the Commission's requests for information seem irrelevant to the transaction and “too broad,” adding that they would be “very disappointed” about the temporary halt in the investigation. Still, it plans to continue constructive discussions to move forward, the source said.

REFRESHER- The Commission opened a probe in July over concerns about potential UAE state subsidies, including an unlimited state-guarantee and a committed capital increase by Adnoc. Talks on possible remedies were held this week, the source added. Before the probe, the takeover was under review for several months — with the review also briefly suspended and resumed later — after which the EU approved it under its merger regulations.

#2- UAE official warns Israel of “red line”: Israel’s planned annexation of the West Bank would be a “red line” for the UAE, Assistant Minister for Political Affairs and Envoy of the Minister of Foreign Affairs of the UAE Lana Nusseibeh told several outlets, including Reuters. Nusseibeh called on the Israeli government to suspend its plans for a long-delayed settlement that would annex four-fifths of the West Bank and cut it off from East Jerusalem, and said it would mark the “death knell of the two-state solution.” Israeli Prime Minister Benjamin Netanyahu is expected to meet with his cabinet this week to discuss the plans.

#3- US-based private markets investment manager Adams Street Partners has opened its first GCC office in ADGM, according to a press release (pdf). The office will be headed by Leila Kaissi (LinkedIn), who joined as principal. The new presence aims to provide GCC investors with access to options across the global venture capital, growth equity, buyout, and private credit markets, according to the statement. Adams Street manages about USD 62 bn in assets across primary, secondary, growth equity, credit, and co-investment strategies, with investments in more than 30 countries.

#4- ICD’s Kerzner expands One&Only brand with new resorts in Fiji and US: Investment Corporation of Dubai’s (ICD) hospitality arm, Kerzner International Holdings, is expanding its One&Only luxury brand beyond home, Bloomberg reports. The company will develop a resort and USD 10 mn serviced residences on 127 acres along Fiji’s Nacula Island, as well as a property in Big Sky, Montana in the US scheduled to debut in November, followed by a Hudson Valley resort expected in 2028.

The group currently has about 600 private homes under its belt and plans to add 400 more in the next five years, both within resorts and as standalone properties, according to One&Only Resorts president Mark Kirby.

#5- Dubai developer Binghatti Group is developing around 20k housing units, after delivering 1.4k in 1H 2025, Chairman Muhammed Binghatti told CNBC Arabia (watch, runtime; 06:44). The company will launch a major AED 3 bn residential project in Downtown Dubai on 6 September and is close to acquiring some 80 mn sq ft of land — almost doubling its existing 90 mn sq ft portfolio. Outside of Dubai, the firm’s focus will be on Abu Dhabi, Riyadh, and London, he added.

REMEMBER- Binghatti recently acquired freehold land in Dubai’s Meydan district for an AED 25 bn development and launched another AED 2.1 bn residential development in Dubai’s Jumeirah Village Triangle. The firm is also exploring real estate tokenization and recently launched its USD 1 bn asset management arm, Binghatti Capital.

HAPPENING TODAY-

#1- The annual Abu Dhabi International Hunting and Equestrian Exhibition is running till Sunday at the Adnec Center. The event, organized by the Adnec Group in cooperation with the Emirates Falconers’ Club, gathers local and international participants from 15 different sectors, including hunting tools, outdoor gear, equestrianism, conservation, arts, and heritage, according to a press release.

#2- The Spring/Summer edition of Dubai Fashion Week is on its fourth day and runs until Saturday, 6 September at Dubai Design District (d3), ahead of the New York, London, Milan, and Paris fashion weeks. The edition will showcase more than 30 brands from the UAE, Europe, India, and beyond, with runway shows, private events, and an expanded buyers’ program.

THE BIG STORY ABROAD-

The S&P and the Nasdaq Composite inched up on Wednesday, with tech stocks buoyed by the court decision allowing Google to keep its Chrome browser. Economic data weighed on the indexes, however, after new US job numbers fell below 7.2 mn in July for the second time since the end of 2020, sparking fears that tariffs might have significant ripple effects on the economy.

Meanwhile, US President Trump is doubling down on his tariff plan, asking the Supreme Court to take on and expedite ruling on a recent lower court decision that blocks most of his blanket tariffs. Courts have been handing Trump nothing but defeats recently, with the most recent ruling siding with Harvard University in its battle to restore USD 2 bn in research funding frozen by the White House earlier this year.

ALSO- A strongman show in Beijing: China’s President Xi Jinping hosted Russia’s Vladimir Putin and North Korea’s Kim Jong Un in Beijing. Over 50k people gathered in Tiananmen Square to witness the huge military parade — marking 80 years since China’s victory over Japan — that saw the unveiling of laser weapons, robotic wolves, and nuclear missiles. Xi used the parade to deliver strong statements on “the choice” between peace and war, while Putin and Kim met for over 2 hours, discussing North Korea’s participation in the war on Ukraine.

Speaking of peace and war: The US conducted a strike in the southern Caribbean targeting what it claimed is a drug vessel that departed from Venezuela. The strike came a day after Venezuela's President Nicolas Maduro warned he would respond to any military action with an “armed fight.”

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MARKET WATCH-

Opec+ could weigh another output hike when it meets on Sunday, Reuters reported yesterday, citing two sources familiar with the matter. This stands in contrast to Bloomberg’s survey, which found a strong consensus that Opec+ would hold supply steady. Seventeen respondents expected no change, while only six predicted a modest increase. Analysts said Riyadh was unlikely to push more barrels into the market immediately, as the Kingdom seeks to balance its market-share play against the risk of adding to a surplus and pressuring prices further.

Some analysts and an Opec+ source also told Reuters the cartel may hold off on fresh increases for October, Reuters added, clarifying that a final decision has yet to be made.

Another hike now would accelerate the unwinding of an additional 1.65 mn bbl / d of cuts — equal to 1.6% of global demand — more than a year ahead of schedule. The bloc has already added some 2.5 mn bbl / d since starting output hikes in April, reversing its 2023 supply curbs. Crude has stayed near USD 70/bbl, supported by Western sanctions on Russia and Iran, and by Opec+ supply falling short of pledges.

Non-oil sales weaken as demand continues to lose momentum in August

The UAE's non-oil private sector continued to lose momentum in August, as total sales intakes expanded at the slowest rate in more than four years. However, output growth picked up during the month, pushing the S&P Global PMI (pdf) to increase to 53.3 in from July’s 49-month low of 52.9.

“The slowdown added to concerns of fading growth momentum and meant that output was increasingly reliant on backlogs of work,” S&P Global Senior Economist David Owen wrote in the report.

Output growth strengthened to a six-month high: The country’s PMI reading gained partial support from a sharper rise in output levels, which marked the fastest increase in activity for six months and was slightly higher than the survey's long-run trend. Firms pointed to greater sales, ongoing project work, and growth in local markets as key drivers of the increase in activity.

..but new orders saw a significant slowdown: The seasonally adjusted New Orders Index fell to its lowest level since June 2021, marking a softer rise in firms' sales. Companies cited competitive pressures and supply chain challenges, including customs delays, as key obstacles to completing sales. Tariffs were also noted as a factor contributing to the slowdown to new export orders, according to a research note (pdf) from Emirates NBD.

Firms cut back purchasing for the first time in over four years: In response to softer demand, businesses scaled back their input purchases in August for the first time in more than four years. This pullback led to another contraction in stocks of purchases, as businesses' input requirements and appetite for inventory building were “sapped” by slower sales growth.

Input cost inflation accelerated for a second straight month, hitting its highest level since February. This rise was largely attributed to wage increases, with many firms boosting salaries to address cost-of-living pressures and performance incentives. This came alongside a slight increase in employment.

In turn, firms hiked their selling prices at the sharpest rate: While modest overall, the increase was the steepest in five months and ranked among the highest in the survey’s history. “While purchase price inflation came down in August, this was counteracted by an upsurge in wage inflation as recruitment activity remained healthy and cost-of-living rises drove salary demands higher,” Owen noted.

On a positive note, business confidence has hit its highest since October. Output expectations strengthened in August, with business confidence jumping to its highest level since last October. Many firms pointed to stable domestic economic conditions and solid client relationships as key factors to support growth in the upcoming year.

Expect more moderation to non-oil sector activity ahead: Looking ahead, non-oil sector activity across much of the Gulf is forecast to moderate, Capital Economics’ James Swanston noted in a recent research note seen by EnterpriseAM. “Low oil prices will more than offset rising output volumes and, in turn, export receipts will be weaker this year than last,” Swanston wrote, adding that “current account and budget balances will deteriorate, prompting officials to make fiscal policy less supportive.”

OVER IN DUBAI-

Another good month is here for Dubai: Dubai’s non-oil private sector recorded another firm improvement in August, with its headline PMI slightly increasing to 53.6 during the month, up from 53.5 in July, indicating a strong upturn in the non-oil private sector sector.

Stronger client demand + higher project activity were the key drivers: Firms increased their output at the fastest pace in seven months, largely driven by stronger client demand and higher project activity. Total new orders also posted an increase, though the rate of growth was not as much as recorded in July.

Input costs inched up for the second month in a row, though the increase was milder than those observed across the country. In the meantime, selling charges were also increased, stretching the ongoing rise to nine months. Supply chain disruptions in August caused delivery times to increase for the first time since March 2024. This, along with lower demand for new inputs, resulted in the fastest contraction in inventories in over a year.

Sectors seeing the best performance include the travel and tourism sector, as business activity recovered following regional tensions, and wholesale and retail trade, which was the strongest segment despite its PMI contracting m-o-m to 54.5, Emirates NBD noted. The construction index, meanwhile, saw weaker orders and higher input costs.

ELSEWHERE IN THE REGION-

In Saudi Arabia, Non-oil business activity saw a robust improvement, boosted by new orders, with the seasonally adjusted figure coming in at 56.4 (pdf) ;
Egypt saw a modest contraction in its non-oil private sector (pdf), with the headline PMI coming in at 49.2, marking a slight acceleration in contraction from July’s 49.5;
Kuwait’s non-oil private sector saw further improvement in business conditions, albeit at a slower pace, with the headline PMI coming in at 53.0 (pdf).

G42 to sell 2% stake in Presight AI in secondary sale

State AI firm G42 is offloading about 2% of its stake in data analytics firm Presight AI via an accelerated offering to qualified institutional investors, according to a statement. G42, which holds 70.5% of Presight, will retain a c.68.5% stake in the firm following the sale, and has committed to a 180-day lockup period on remaining shares.

Books are already fully covered after orderbooks opened yesterday, according to terms of the transaction seen by Bloomberg, with the sale valued at around USD 100 mn.

The details: Final terms are due today and settlement is expected around 10 September. The transaction is open to institutional investors both in the UAE and overseas, with some other investors outside of the UAE also included.

The sale is intended to broaden Presight’s investor base, improve liquidity, and support its potential inclusion in the FTSE Emerging Market Index. Presight was added last month to the FTSE Midcap, All-Cap, All-World, and Total-Cap indices after a rise in its market cap, which now stands at AED 20.5 bn. The company posted a breakout 1H 2025, with revenues up 80% y-o-y to AED 1.1 bn.

The secondary sale comes amid a wave of follow-on offerings in the UAE: Adnoc recently offloaded an additional 3% stake in Adnoc Logistics & Services after raising USD 2.8 bn from a 4% sell-down in Adnoc Gas in February. Mubadala is also reportedly preparing to pare back its USD 1 bn stake in telecom operator Du, while Dubai Taxi could return to the DFM with a secondary sale if market conditions permit.

ADVISORS- First Abu Dhabi Bank and Jefferies are joint global coordinators and bookrunners. International Securities is also serving as joint bookrunner.

Mubadala invests in Romania’s Rezolv Energy

Abu Dhabi sovereign wealth fund Mubadala Investment Company is investing in Romanian renewables developer Rezolv Energy, Profit.ro. Actis, the UK-based sustainable infrastructure investor that launched Rezolv in 2022, will continue to operate and manage the renewables developer. The European Commission cleared the transaction (pdf) last week. The value of Mubadala's investment was not disclosed.

Rezolv is active across Central and Eastern Europe, with a 2.5 GW portfolio spanning Romania, Croatia, the Czech Republic, Luxembourg, Bulgaria, and Slovakia.

Rezolv’s pipeline: The firm is developing the 1.04 GW Dama Solar project in Romania’s Arad County — set to become Europe’s largest solar park — alongside a 500 MW battery storage unit. Its domestic portfolio also includes a 600 MW wind farm in Constanța and a 461 MW wind project in Buzău, and it has secured four contracts for difference (CfD) totaling 951 MW in the country’s first two state-run auctions.

REMEMBER- Mubadala has been expanding its European infrastructure footprint this year, including investments in German facility manager Apleona, UK biotech Juvenescence, and school operator Nord Anglia Education, as well as MoUs with Hungary’s 4iG Group to explore digital infrastructure.

** EDITOR'S NOTE- This story was corrected on 8 September, 2025 to show that Mubadala is investing in Rezolv Energy and is not entering a joint venture agreement with Actis as part of the transaction, as a source with knowledge of the matter informed us.

Khazna Data Centers lines up USD 2.62 bn in debt from ADCB, FAB to scale at home and abroad

G42-owned Khazna Data Centers secured a USD 2.62 bn financing facility from Abu Dhabi Commercial Bank and First Abu Dhabi Bank, according to a statement. The 10-year facility will fund the company’s expansion in the UAE and internationally, including new sites in Abu Dhabi, Dubai, and the country’s first AI-enabled data center in Ajman.

The company aims to cement its domestic lead — with a 73% share of the UAE data center market — while pushing into new regional markets, the statement said.

Khazna has been keeping busy: The Dubai-based company signed a head of terms agreement with Italian energy firm Eni in July to establish a JV to develop data centers in Italy, with the goal of establishing up to 1 GW of IT capacity in Italy. The firm is also making moves into Turkey, Saudi Arabia, and Egypt, and is partnering with international heavyweights including Nvidia to build data centers in the region.

REMEMBER- G42 acquired 40% of Khazna Data Centers from e& earlier this year, marking the region’s largest domestic acquisition in 1H 2025.

IHC’s RIQ to offer Adnoc USD 500 mn in risk coverage

IHC’s RIQ to provide USD 500 mn in reins. cover for Adnoc: International Holding Company (IHC)’s new reins. platform, Reins. Intelligence Quotient (RIQ), signed an agreement with Abu Dhabi National Oil Company (Adnoc) to provide it with more than USD 500 mn in risk coverage over the next decade, state news agency Wam reports.

The details: RIQ will structure capital-efficient cover across Adnoc’s operational, climate-related, and specialty risks, using AI-driven modelling and analytics to tailor protection for industrial and energy exposures.

REFRESHER- RIQ was launched in May by IHC in partnership with BlackRock and Lunate. Backed by USD 1 bn in equity commitments, the platform spans property and casualty, life, and specialty lines, and is in the final stages of regulatory approval from ADGM’s Financial Services Regulatory Authority to be authorized as a reinsurer.

The bigger picture: With this Adnoc agreement under its belt, RIQ’s committed premiums are set to come in at upwards of USD 1 bn over the coming decade, following IHC’s earlier pledge to transfer USD 500 mn in reins. Premiums through the platform. Ultimately, RIQ has a target of writing USD 10 bn in liabilities per year.

Household consumption growth in the UAE to outpace that of global peers in the next six years -Oxford Economics

The UAE could see real household consumption growth averaging 3.5% annually for the next six years, outpacing global peers, according to a recent report (pdf) from Oxford Economics. This is in line with other GCC countries including Kuwait and Qatar, while Saudi Arabia is set for a 3% growth rate during the next six years — giving the region an average growth rate of 3.4%, significantly outpacing the 1.7% growth expected in advanced economies.

Why does it matter? “The household sector and the prospects for consumers to outperform their international peers is important for the region's governments as they continue to focus their efforts to diversify activity away from oil and gas revenues,” the report read, adding that this is also “crucial for companies that are looking to invest in consumer-facing sectors.”

What’s behind the momentum? Rising living costs often weigh on economies, as households usually tighten their belts. However, inflation in the GCC — despite experiencing significant cost increases in recent years, especially during the pandemic — was less severe than elsewhere, according to the report. “This means that the erosion of GCC households' spending power was much lower than in advanced economies, helping to support strong consumption growth.”

Looking ahead, Oxford Economics expects inflation in the UAE to see a slight and moderate increase in 2026, before falling back in 2027 and beyond.

REFRESHER- In June, the Central Bank of the UAE (CBUAE) slightly lowered its 2025 inflation forecast for the UAE by a 0.1 percentage point to 1.9% — just below that of the IMF, which now expects inflation in the UAE to come in at 2.1% this year.

Falling unemployment also plays a role: Healthy labor markets are expected to boost household consumption growth in the region, with unemployment rates consistently falling across the GCC, after surging during the pandemic. This positive trend is supported by “removals of trading restrictions and buoyant domestic demand.”

Unemployment in the UAE is expected to rise in the country this year, though it will likely top out and be followed by a series of downturns in the years ahead, Oxford Economics said. As for the GCC countries, unemployment is expected to continue to decline.

Expanding credit access in the region is also helping drive household consumption, especially as GCC governments are now including non-citizens in their credit initiatives, which results in a significant increase in demand. Personal loans in the UAE have increased 17.8% y-o-y in the three months leading to April 2025, driven by the relaxation of lending standards for both citizens and expats in the country, according to the report.

REMEMBER- Credit demand growth in the UAE moderated on a q-o-q basis in 2Q 2025, but remained in the positive territory, largely supported by robust economic conditions, higher household incomes, and an encouraging investment climate. Meanwhile, financial institutions’ lending appetite was supported by a “solid economic outlook, strong competition from other banks and financial institutions, improving bank asset quality and stable borrower creditworthiness.”

Further interest rate cuts could boost demand further: Oxford Economics expects the US Federal Reserve to resume the easing cycle this month, projecting cumulative rate cuts of 125 bps by the end of 2026. GCC central banks are seen following suit by gradually lowering interest rates, providing an additional boost to domestic demand. Late in July, the CBUAE decided to hold interest rates steady for the fifth time in a row, following in the footsteps of the US Federal Reserve.

Risks ahead: Exposure to oil prices means that a deep downturn could affect consumer demand, though at the moment, it expects Brent crude to fall by 6% over the next four quarters before rebounding later. A 10% drop, however, would erode the level of real consumption by 0.74% per year, the report said.

FinMin expands scope of freezone activities exempt from corporate tax

The Finance Ministry has broadened the scope of activities eligible for exemption from corporate tax in freezones to include industrial chemicals, environmental commodities, and by-products , state news agency Wam reports. The requirement that commodities be traded in raw form has been removed, though they must still carry a quoted price on a recognized exchange or price reporting agency.

REFRESHER- Under the Federal Tax Authority’s Qualifying Freezone Person Regime, eligible firms can claim a 0% corporate tax rate on qualifying income from freezone operations, versus the standard 9% rate.

ALSO- Treasury and financing services may now include self-investment for related parties or the taxpayer’s own account, the ministry said. Plus: Distribution from designated zones to public benefit entities will not affect the de minimis threshold.

Taqa + partners reach financial close on Saudi power plants

Taqa, Jera, Saudi’s Albawani reach financial close on power plants: A consortium led by Abu Dhabi National Energy Company (Taqa), Japan’s biggest power producer Jera, and Saudi’s Albawani Capital reached financial close on two greenfield combined-cycle gas turbine (CCGT) power plants in Saudi Arabia, according to a press release (pdf).

About the plants: The Rumah 2 and Al Nairyah 2 plants will add 3.6 GW of capacity — 1.8 GW each — to the Kingdom’s grid under a 25-year power purchase agreement inked with the Saudi Power Procurement Company. Special purpose entities owned by the consortium will carry out building works.

The projects are valued at around USD 4 bn, with senior debt and equity bridge loans covering more than 80% of total costs. Banks providing funding included First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Al Rajhi Bank, Riyad Bank, Saudi Awwal Bank, Saudi National Bank, APICORP, and Bank of China.

Who is doing what? Taqa holds a 49% stake in the projects, whilst Jera has 31%, and AlBawani holds 20%. China’s Harbin Electric International and China Tiesiju Civil Engineering Group were awarded engineering, procurement, and construction (EPC) contracts, with Siemens Energy supplying turbines and equipment under long-term service agreements.

REFRESHER- In November, Taqa, Jera, and Al Bawani were awarded contracts on a build, own, and operate basis for the two plants, with Taqa acting as the managing and technical lead, and Jera serving as a technical member.

Timeline: Simple cycle operations are set to begin in 2027, with full operations slated for 2028.

Majid Futtaim, Etihad Airways post bottomline growth in 1H 2025

MAJID AL FUTTAIM-

Majid Al Futtaim sees 1H bottom line of AED 1.3 bn: Majid Al Futtaim’s net income — excluding valuation and tax — rose 23% y-o-y to AED 1.3 bn in 1H 2025, according to its earnings release. The group’s revenues came in at AED 17.3 bn, a 3% increase y-o-y.

By the segment: The lion’s share of the group’s top line came from its retail segment, which saw AED 11.5 bn in revenues, down 1% y-o-y amid softness in its brick-and-mortar business and dampened consumer sentiment amid “geopolitical tensions” — which has led to boycotts across several global brands. Its property revenues rose 14% y-o-y to AED 4.3 bn, followed by asset management activities (AED 2.4 bn), development and residential communities (AED 2 bn), and digital retail (AED 1.6 bn).

Behind the growth: Robust leasing activity, a strong tenant mix, and consumer demand helped deliver strong results for its asset management segment, while strong sales in Ghaf Woods and Tilal Al Ghalf boosted inflows to its development portfolio. 1H also saw the group launch its AED 5 bn Mall of the Emirates upgrade project.

ETIHAD AIRWAYS-

Etihad Airways reported a 32% y-o-y increase in its net income to AED 1.1 bn in 1H 2025, according to an earnings release. The company’s top line also rose 16% y-o-y AED 13.5 bn due to strong performance across both passenger and cargo operations. This marks the carrier’s best-ever half-year performance, the release said.

The breakdown: Passenger revenue reached AED 11.3 bn on the back of network expansion and strong demand, while cargo revenue rose 9% y-o-y to AED 2 bn due to improved capacity and yield, the release said.

Fleet updates: The airline’s operating fleet grew to 106 jets, up from 98 in 1Q — meaning the carrier added eight aircraft during 2Q. Etihad is aiming to add 22 aircraft to its fleet this year, part of its push to reach 170 jets by 2030, CEO Antonoaldo Neves said earlier this year.

REMEMBER- Etihad Airways secured five new aircraft in July, receiving one jet each of Airbus’ A321LR, A350-1000, and A320 models, as well as two Boeing 787 Dreamliners — the carrier’s highest monthly delivery rate.

REMEMBER: Etihad Airways has put off plans for a USD 1 bn IPO on the ADX, according to reports earlier this year. With the firm confident about liquidity and financing for expansions, the matter is in the hand of shareholders, Neves has said.

Drilling kicks off at EOG Resources-operated shale block in the UAE

ENERGY-

Drilling works are underway at US-based hydrocarbon exploration firm EOG Resources’ UAE shale oil exploration project, Reuters reports. Adnoc has successfully initiated horizontal drilling and surface well-testing at the EOG-operated shale block in Al Dhafra region — right on schedule with EOG’s expected start in 2H 2025, CEO Ezra Yacob told the newswire.

REMEMBER- EOG was granted a new oil exploration concession back in May as part of a wider USD 60 bn worth of energy agreements inked between the UAE and US to expand the Emirates’ oil and gas production and explore new fields.

LOGISTICS-

Emirati ports operator Gulftainer has launched the UAE’s first bonded inland container depot in Sharjah, according to a statement. The facility — strategically located some 20 km from Sharjah Port and 140 km from Khorfakkan Port — will offer multimodal transport services from inland markets to ports.

FINANCE-

Stronghold Capital secures DFSA approval to operate as a hedge fund in DIFC: Dubai Financial Services Authority (DFSA) has authorized Emirati multi-strategy hedge fund Stronghold Capital Management to operate as a hedge fund manager in the Dubai International Financial Center (DIFC), according to a press release.

REMEMBER- DIFC saw a record 1H — partly due to a hedge fund rush, with the number of hedge funds up 72% y-o-y to reach 85 by the end of the period. The number of active companies was up 25% y-o-y jump to 7.7k.

USD under pressure on Fed cuts and independence doubts

The USD is set to remain under pressure in the coming months as markets weigh further Fed rate cuts and questions over the Fed’s independence, a Reuters FX poll shows. The greenback has already shed nearly 10% y-t-d against a basket of peers — the weakest performance among major currencies — as the short-USD trade has dominated since late March.

Survey respondents expect the trend to persist, with nearly 80% of strategists seeing net short positions rising or holding steady. “The [USD] will face some pressure to soften into the end of the year,” said HSBC’s Paul Mackel.

Over in Asia, the INR has been among the hardest hit, with the currency touching a record low of 88.33 against the USD on Monday before stabilizing after the Reserve Bank of India used part of its USD 690 bn in reserves to intervene, Reuters separately reported. It has fallen about 3% this year on USD 15 bn in equity outflows, compounded by Trump-era tariffs on Indian goods and tensions over Russian oil imports.

Some near-term relief has emerged: The INR has gained for two sessions, closing at 88.07 yesterday, supported by a softer USD index and stronger local equities, Reuters reports separately. A Reuters poll put the median forecast at 88.04 by month-end, though about one-third of analysts warn it could drift towards 90 if the 50% US tariff on Indian goods remains in place.

Longer-term projections are split: Many expect the INR to hold around 88 over the next year, but top forecasters at Nirmal Bang and HDFC see fresh lows near 90. “The RBI's role would be to prevent panic selling rather than defend any particular level,” said HDFC’s Sakshi Gupta, who projects 89.5 by this time next year.

For now, traders caution that positioning is heavily skewed against the USD, leaving both the USD and INR vulnerable to sharp swings if inflation surprises or trade tensions escalate. “A big risk is the fact everybody seems to think the [USD] is likely to weaken,” Rabobank’s Jane Foley warned.

OTHER PLANET FINANCE NEWS-

Global bonds stayed under pressure yesterday, with the US 30-year Treasury yield briefly hitting 5% for the first time since July before easing to 4.97%, the Financial Times and Reuters report. UK 30-year gilts touched 5.75%, while Japan’s equivalent rose to a record 3.29%. The sell-off was fueled by heavy sovereign issuance — including a record GBP 14 bn UK syndication on Tuesday — stubborn inflation, and political strains.

ICYMI- Government bond markets have been gripped by a global rout, with yields at multi-year highs on swelling debt loads, tariff uncertainty, and political turmoil across Europe, the US, and Japan.

MARKETS THIS MORNING-

Asian markets are in the green, tracking Wall Street gains that came on the back of a tech rally. The only outlier, Hong Kong’s Hang Seng, is currently in the red, despite trading in the green in early trade. Meanwhile, Wall Street futures largely point to another strong open despite jitters about the US economy following a weak jobs report — though the Dow Jones, which fell yesterday, could open in the red.

ADX	10,051	+0.2% (YTD: +6.7%)
DFM	5,974	-0.6% (YTD: +15.7%)
Nasdaq Dubai UAE20	4,823	-0.3% (YTD: +15.8%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.2% o/n	4.1% 1 yr
TASI	10,619	-0.5% (YTD: -11.9%)
EGX30	34,762	-1.1% (YTD: +16.9%)
S&P 500	6,448	+0.5% (YTD: +9.6%)
FTSE 100	9,178	+0.7% (YTD: +11.1%)
Euro Stoxx 50	5,325	+0.6% (YTD: +8.8%)
Brent crude	USD 67.60	-2.2%
Natural gas (Nymex)	USD 3.08	+0.4%
Gold	USD 3,613.70	-0.6%
BTC	USD 112,109	+1% (YTD: +18.7%)
Chimera JP Morgan UAE Bond UCITS ETF	AED 3.62	+2% (YTD: +3.9%)
S&P MENA Bond & Sukuk	148.24	-0.2% (YTD: +5.9%)
VIX (Volatility Index)	16.35	-4.8% (YTD: -5.8%)

THE CLOSING BELL-

The ADX rose 0.2% yesterday on turnover of AED 937.4 mn. The index is up 6.7% YTD.

In the green: RAK Co. for White Cement & Construction Materials (+4.8%), Apex Investment (+4.3%) and Phoenix Group (+4.2%).

In the red: Oman & Emirates Investment Holding Co. (-9.9%), Abu Dhabi National Takaful Co. (-7.5%), and Abu Dhabi National Co. for Building Materials (-3.4%).

Over on the DFM, the index fell 0.6% on turnover of AED 575.1 mn. Meanwhile, Nasdaq Dubai was down 0.3%.

UAE president discusses cooperation with Saudi crown prince + Bissau-Guinean counterpart

President Mohamed bin Zayed Al Nahyan hosted his Bissau-Guinean counterpart, Umaro Sissoco Embalo, to discuss expanding bilateral trade, economic cooperation, and development, state news agency Wam reports. The two previously met in February, when Al Nahyan presented Embalo with the Order of Zayed in recognition of his efforts to enhance bilateral relations.

He also met with Saudi Crown Prince and Prime Minister Prince Mohammed bin Salman bin Abdulaziz Al Saud to discuss strategic cooperation, as well as regional and international issues including the ongoing developments in Gaza, Wam reported separately.

ALSO- Foreign Trade Minister Thani Al Zeyoudi met with the South African Business Council in the UAE to discuss ways to increase trade, investment, and private sector partnerships, Wam reports. This includes projects in sectors like related to food security, logistics, infrastructure, tourism, and renewable energy in South Africa and across the continent, Al Zeyoudi said.

CALENDAR

SEPTEMBER

30 August-7 September (Saturday-Sunday): Abu Dhabi International Hunting and Equestrian Exhibition, Adnec Center, Abu Dhabi.

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

7 September (Sunday) Opec+ meet to discuss production policy for October.

9 September (Tuesday): Envision 2025, Atlantis, The Royal, Dubai.

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.

10-11 September (Wednesday-Thursday): Annual International Government Communication Forum, Expo Center Sharjah.

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.

17-18 September (Wednesday-Thursday): SHRM MENA hosts its Annual Conference + Expo, Madinat Jumeirah, Dubai.

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.

25-27 September (Thursday-Saturday): International Congress of Medical Excellence in Dermatology and Aesthetic Med, Dubai World Trade Center.

30 September (Tuesday): Africa Debate Conference, Dubai.

30 September (Tuesday): Dubai Podfest, Dubai.

OCTOBER

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

30 September-1 October (Tuesday-Wednesday): MENA Investment Congress (MENA ICON), Abu Dhabi.

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

1 September-5 October (Monday-Saturday): DMCC Web3 Unleashed applications

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

7 October (Tuesday): Enterprise Egypt Forum 2025.

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.

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

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

23 October (Thursday): S&P Global’s annual Islamic Finance Conference, DIFC Atrium, Dubai.

27 October (Monday): The UAE Africa Tourism Investment Summit, Dubai.

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

1-2 November (Saturday-Sunday): Women's Empowerment Convention (WE Convention), Atlantis The Royal, Dubai.

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

10-15 November (Monday-Saturday): SASC organizes Abu Dhabi Autonomous Week, Abu Dhabi.

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.

13-15 November (Thursday-Saturday): International Financial Markets (ICA) Conference and Exhibition, Conrad Dubai.

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).

2-5 December (Tuesday-Friday): Sotheby’s Abu Dhabi Collectors’ Week, Abu Dhabi

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 December (Monday): DeFi Technologies Insights Global Symposium, Emirates Palace, Abu Dhabi.

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

8-9 December (Monday-Tuesday): Global AI Show 2025, Abu Dhabi.

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

8-11 December (Monday-Thursday): Abu Dhabi Finance Week, Al Maryah Island.

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

13-15 December (Saturday-Monday): Mobile Developers Week, Abu Dhabi

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.

28-30 January (Wednesday-Friday): World Customs Organization Technology Conference, Adnec Center, 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.

9-13 February (Monday-Friday): The World Health Expo (WHX), Dubai.

JUNE 2026

15 June-15 September (Monday-Thursday): Dubai Mallathon, Dubai.

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:

1Q 2027: Completion of the first phase of Hassyan seawater desalination project.
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.

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