Non-oil trade was up 24% y-o-y in 1H. Plus: Gulf Capital offloads Art Fertility stake

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WHAT WE’RE TRACKING TODAY

THIS MORNING: CBUAE holds rates steady, again + ADGM proposes amendments to expand authority for tighter oversight

Good morning, wonderful people. It’s another busy newsday as we inch closer to the weekend, with a lot of M&A and regulatory updates — plus plenty of analysis into the region’s equity and debt capital markets’ performance this year.

The big story of the day is the latest trade figures for 1H 2025, which saw another strong showing for non-oil exports. Plus: Gulf Capital wrapped a successful exit for Art Fertility’s operations in the Middle East, selling it to a KKR-backed fertility network. And, for the social media influencers among you, the Media Council is now making it mandatory for all content creators with promotional content to obtain an advertising permit.

BUT FIRST- The Central Bank of the UAE held interest rates steady for the fifth time in a row, following in the footsteps of the US Federal Reserve, according to a statement (pdf). The base rate applicable to the overnight deposit facility remains at 4.4%, while the rate applicable to borrowing short-term liquidity was kept at 50 bps above the base rate for all standing credit facilities.

We have more on the Fed’s decision in Planet Finance, below, and a deep dive into the outlook for debt and equity markets ahead of the potential resumption of its easing cycle later this year in this morning’s Capital Markets section.

WEATHER- The mercury in Dubai peaks at 45°C, dropping to a sticky 34°C after sunset. Abu Dhabi will also see temperatures reach 45°C, with a humid night ahead at 34°C.

WATCH THIS SPACE-

#1- Dubai Taxi open to a follow-on offering on DFM: State-backed and DFM-listed mobility provider Dubai Taxi may return to the Dubai bourse with an additional stake sale if conditions align, CEO Mansour Al Falasi told Asharq Business in an interview (watch: runtime:12:05), adding that any move would hinge on regulatory and shareholder sign-off, without providing a possible timeline.

ICYMI- The taxi operator, which floated a 25% stake on the DFM in 2023 in a listing that raised USD 315 mn, posted strong 2Q results with its bottom line rising 32.8% y-o-y to AED 105.4 mn.

It’s been a quiet year for IPOs, with just one listing each so far in Dubai and Abu Dhabi. Dubai Residential REIT raised AED 2.1 bn in its IPO, while Alpha Data’s ADX debut had raised AED 600 mn earlier in the year.

Also in the pipeline: Dubai Holding is said to be mulling a second IPO for a portfolio of commercial real estate assets, including malls, hotels, and theme parks; ADQ-backed Etihad Airways and Abu Dhabi conglomerate International Holding Company’s investment arm 2PointZero are also planning to hit the ADX; family-owned property developer Arabian Construction Company (ACC) reportedly enlisted HSBC and First Abu Dhabi Bank to advise on its IPO due in 2H; and Dubizzle and Property Finder were gauging investor appetite ahead of potential listings.

#2- ADGM wants to expand the scope of its authority with new amendments: The ADGM Financial Services Regulatory Authority (FSRA) launched a public consultation on proposed updates to expand the scope of its power as it looks to tighten security and oversight, according to a press release. The Consultation Paper (pdf) will be open to industry feedback until 27 August.

Proposed changes include:

An explicit prohibition on misleading conduct relating to regulated activities, investments, virtual assets, fiat currency and tokens, and spot commodities;
Expanding its authority to allow it to suspend financial service permits temporarily if investigations are warranted, and to apply restrictions on certain permits or additional monitoring requirements on a case-by-case basis;
and requiring all firms offering funds — even those who are not incorporated as fund managers — to issue a complying prospectus to investors.

#3- UK’s Tyrus Capital relocates to Abu Dhabi: UK-based hedge fund Tyrus Capital is moving to Abu Dhabi as it shuts down its London operations, Bloomberg reports. The firm’s ADGM entity is already incorporated, and comes as more firms are looking to take advantage of the Emirates’ tax environment, favorable timezones for trading, and deep capital pools from sovereign wealth funds and family offices.

The UK’s loss is the UAE’s gain: Tyrus joins a stream of companies leaving the UK following tax hikes and the removal of tax breaks for non-domiciled residents. Some 2.6k UK-based companies opened offices in Dubai last year, a 14.2% increase from the previous year, according to data from the Dubai Chamber of Commerce. The UAE is also set to be the biggest beneficiary of a wealth exodus from the UK this year, with the UK set to see a historic net outflow of 16.5k high-net-worth individuals (HNWIs) — the largest ever recorded globally — and the UAE set to welcome some 9.8k m’naires this year.

#4- Arabian Drilling sets up shop in Sharjah: Saudi's Arabian Drilling launched a new Sharjah branch to serve as its regional operations hub, according to a disclosure to Saudi’s Tadawul. The firm is looking to expand outside of the Kingdom to bypass long-term offshore suspensions, CEO Ghassan Mirdad told Al Arabiya (watch, runtime: 8:08). The company is adopting a two-pronged expansion approach, including direct contracts — with one already under its belt — and an alliance with Shelf Drilling, which resulted in eight to 10 additional tenders.

#5- Applications for the Dubai Land Department’s Reach Middle East accelerator program are now open, according to a press release. The eight-month program will provide 10 startups with USD 250k in seed capital each, along with mentorship and networking with strategic investors and real estate developers and government departments to pilot and commercialize projects. The DLD also partnered with Second Century Ventures for the program. Have a proptech and looking for extra funding and support? You can apply here.

THE BIG STORY ABROAD-

The US’ latest trade agreements ahead of tomorrow’s deadline are still getting top billing in the foreign press, along with a handful of Big Tech earnings and fresh sanctions on Iran.

#1- The US and South Korea reached a trade agreement, setting a 15% tariff on South Korean exports to the US, in exchange for USD 350 bn in investments in US-owned projects selected by US President Donald Trump, Trump said on Truth Social. This is in addition to USD 100 bn in energy investments in the US. This follows a similar structure to the agreement with the UK and Japan, which also pledged investments in exchange for lower tariffs. (Reuters | Bloomberg | Financial Times | Politico | Axios)

Not yet as lucky? India, which could face a 25% tariff on its exports to the US as of tomorrow if ongoing talks end with no agreement. (Bloomberg | Guardian)

ALSO- The US economy rebounded in 2Q 2025, growing 3% after contracting in the first quarter of the year, on the back of strong consumer spending and a turnaround in the trade balance. (CNBC | Wall Street Journal | Bloomberg)

#2- Microsoft and Meta are both spending big on AI, after reporting strong quarterly earnings. Microsoft, which is set to become the second company to reach a market cap of USD 4 tn, is penciling in USD 30 bn in capital expenditures in its first quarter of its fiscal year, while Meta pledged to spend more from its advertising revenues well into 2026. Both companies’ shares rose more than 9% in afterhours trading on the news. (CNBC | Financial Times | Bloomberg | Reuters)

#3- The US doubled down on its pressure campaign on Iran with sweeping new sanctions on 115-linked Iranian individuals and businesses, broadly targeting the shipping business of Hossein Shamkhani, the son of senior adviser to Supreme Leader Ayatollah Ali Khamenei. (Bloomberg | Reuters)

#4- ALSO- Canada is now the latest to pledge recognition of the Palestinian state at September’s UN summit, following in the footsteps of France and the UK. (Bloomberg)

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Non-oil trade surges 24% y-o-y to hit AED 1.7 tn in 1H 2025

Non-oil foreign trade surged 24% y-o-y in the 1H 2025, reaching nearly AED 1.73 tn during the period, driven by a boom in non-oil exports, according to an X post from Dubai Ruler and Prime Minister Mohammed bin Rashid Al Maktoum.

The breakdown: Non-oil exports hit a historic high in 1H this year, reaching AED 369.5 bn. This remarkable achievement represents a growth rate exceeding 44.7% y-o-y, a first for the country, Dubai Media Office said in a statement yesterday. They contributed 21.4% of the UAE’s total non-oil foreign trade, marking an increase from 18.4% in the first half of 2024.

Meanwhile, non-oil imports reached AED 969.3 bn, giving the UAE a trade surplus of around AED 761 mn, according to the statement. Re-exports reached AED 389 bn, up 14% y-o-y.

Top trade partners: Trade with Switzerland surged by an impressive 120% y-o-y, followed by Turkey (41%), India (33%), the US (29%), and Saudi Arabia (21.3%).

Looking ahead, the UAE’s non-oil foreign trade is now expected to hit AED 4 tn by 2027 — four years ahead of the original 2031 target, Dubai Media Office said earlier in June.

Background: Non-oil foreign trade rose 18.6% y-o-y to AED 835 bn in 1Q 2025, and exceeded AED 2.8 tn in 2024, with non-oil exports growing 29.3% y-o-y, while re-exports grew by 3.8%, and imports climbed by 13.5%. This performance came on the back of an expansion in the UAE’s trade and economic agreements with several countries last year.

Non-oil GDP outlook: Fitch’s BMI sees non-oil growth coming in at 4.2% this year rather than 4.7% — down from the 5% growth seen last year. Meanwhile, the Central Bank of the UAE (CBUAE) predicted a slowdown to 4.5% this year, and the IMF sees the UAE’s non-oil GDP growing by 4.5% this year, with tourism, public spending, construction, and financial services driving growth.

Gulf Capital offloads majority stake in Art Fertility to KKR-backed group

Gulf Capital offloads stake in Art Fertility to KKR-backed medical group: Abu Dhabi-based private equity firm Gulf Capital sold a majority stake in IVF center Art Fertility Clinics to Spain-based medical group IVI-RMA Global for an undisclosed sum, according to a press release (pdf). IVI-RMA Global, which is backed by US private equity firm KKR & Co, is one of the world’s largest medical institutions dedicated to assisted reproduction. The story got ink from Bloomberg.

Not a full exit…: The sale, which followed a competitive auction process, covers Art Facility’s Middle East operations, namely three clinics in the UAE and one in Saudi Arabia, though it excludes its 11 clinics in India, which Gulf Capital will continue to own.

…but a big-cash-in: While the transaction value and exact returns were not disclosed, Gulf Capital said the sale is expected to generate “a significant return on invested capital,” naming it as one of the firm’s most successful exits.

Five years in the making: Gulf Capital acquired Art Facility in 2020 and expanded it from a UAE-focused operator to a regional platform of 15 clinics, before it was reported to be looking for an exit earlier this year. The PE firm claims the IVF center’s bottom line in the Middle East quadrupled during its ownership, without disclosing figures.

IN CONTEXT- This is Gulf Capital’s fourth recent exit, following the sale of AmCan in January 2024, its divestment from EGX-listed Middle East Glass to Mena Glass Holdings later that year, and the transfer of its entire stake in energy services provider Kuiper Group to India’s Asian Energy Services in April of this year.

Two more to come? CEO Karim El Solh told EnterpriseAM UAE earlier this year that 2025 was shaping up to be “a productive year for Gulf Capital in terms of exits,” adding that the firm was working on three large divestments to be announced over the following two quarters. With the ART Fertility sale now completed, that pipeline may have narrowed to two major exits still to come.

ADVISORS- Moelis & Company quarterbacked the transaction as both Gulf Capital and Art Fertility’s M&A advisor, with A&O Shearman providing counsel.

OTHER M&A NEWS-

Adia backs India’s NSDL IPO: The Abu Dhabi Investment Authority (Adia) invested INR 140 mn (AED 5.9 mn) for a 1.17% stake in India’s National Securities Depository as part of its INR 40.1 bn (AED 1.7 bn) IPO, according to a disclosure (pdf). The offer opened for public subscription yesterday, and fully sold within hours of launch.

Other major anchor investors include the Life Ins. Corporation of India, which secured the largest allocation at 11.99%, followed by the Smallcap World Fund with 8.33%.

This move follows a series of substantial India-focused investments by Adia in 2025. The fund invested USD 200 mn in medical device manufacturer Micro Life Sciences, through a subsidiary, and 41.3 crore (c. AED 17.7 mn) in the USD 395 mn (AED 1.5 bn) IPO of drugmaker Anthem Biosciences. Adia also invested USD 310 mn (AED 1.1 bn) for a 5.1% stake in IDFC First Bank.

UAE’s new council regulates social media advertising with license requirements

The UAE’s Media Council is making it mandatory for social media content creators generating paid or unpaid promotional content online to get advertiser licenses, according to a statem ent. This also means that businesses can only engage licensed individuals for social media promotions. The permit requirement will come into effect within three months.

The good news is: You don’t have to pay — for now. All new permits, including renewals, will be granted without charge for three years.

Travel vloggers be mindful: The regulation also extends to visiting content creators, who will need a Visitor Advertiser Permit — valid for three months — to promote content in the UAE. Visitors will be expected to register through a licensed, Council-approved advertising or talent management agency in the UAE. Visitor permits can only be extended once for another three months.

Who’s exempt? Social media users promoting their own products or their own firms through personal accounts are exempt. Similarly, individuals under 18 who generate educational, athletic, cultural, or awareness content also won’t need the permit.

Hand of law extends: Permit holders must stick to the UAE’s media content standards and display their permit numbers on social media profiles. All advertisements must be published through an individual's registered and permitted account, and account holders can’t allow others to advertise using their account.

Abu Dhabi office market stays tight as Grade A demand outpaces supply

Abu Dhabi's office market maintained tight conditions in 1H 2025, with strong demand and limited Grade A availability driving occupancy rates to record highs, according to a recent Savills report (pdf).

ADGM’s 1Q 2025 expansion to Al Reem Island added 500k sqm of premium office inventory to the market. Business activity saw a significant uptick on the back of this, with the financial freezone now housing 2.8k operational firms — a 43% increase from the previous year.

The expansion also led to an uptick in activity on Al Reem and Al Maryah islands. The completion of Saas Business Tower in 2Q delivered an additional 130k sq ft of Grade A space to Reem Island, while Al Maryah Island's workforce expanded 17% to surpass 29k professionals.

Who led the demand? Leasing demand remained concentrated in the banking, financial services, and ins. (BFSI) sector, alongside growing requirements from hedge funds, consulting firms, and tech companies. Most transactions focused on mid-sized units between 10k-20k sq ft. As Grade A shortages persisted, secondary locations — including the Corniche and Downtown areas — saw increased interest in Grade B properties.

Average rents in ADGM are now upwards of AED 3.5k per sqm, as rental growth accelerated across all submarkets. Central business district (CBD) properties recorded 42% y-o-y increases in 2Q, while rents outside CBD areas grew a more moderate 18%.

The outlook: Pre-leasing commitments from the likes of Aldar and Mubadala indicate that the office market will continue to expand, though limited Grade A availability will maintain upward pressure on rents as Abu Dhabi continues to attract corporations, family offices, and high-net-worth individuals this year.

Behind the DFM's performance this year, the slowdown in IPOs, and what's in store for 2H 2025

Understanding what’s driving regional capital markets — and what signals we should watch in the back half of the year: Saudi’s IPO market made a strong showing in terms of volume and value in the first half of the year, the EGX is outperforming its regional peers year-to-date, and the UAE is holding steady despite regional volatility and weaker oil prices. Altogether, it’s been a strong year so far for regional capital markets.

We sat down with EFG Hermes' head of investment banking, Mostafa Gad, to break down what’s behind the momentum, what foreign investors are looking for, and how to know we’re on the right track for greater depth in capital markets. Gad also walked us through some of the stepping stones that helped the region’s most active markets drive success.

Edited excerpts from our conversation:

Gad sees equity capital markets (ECM) activity in the region as part of a multi-year trend rather than just a 1H 2025 phenomenon. The current cycle, he says, has been running strong for the past three to four years, fueled by structural reforms across the region.

IN CONTEXT- Saudi Arabia’s main index is down over 9% YTD, while Dubai’s benchmark rose 20%, and ADX is up more than 9%. EGX is up nearly 14% YTD.

The fundamentals in the region are far stronger than many expect, according to Gad. Perceived risk is the biggest misconception foreign investors have about the region. Gad says the perception is far worse than the reality. From afar, the region might seem unstable — but their confidence in the region rises quickly once they actually visit and engage with the market directly.

Despite a rocky geopolitical landscape, Gad is cautiously optimistic about the second half of the year. Even with global headwinds such as the Trump administration’s trade policies, Gad isn’t too concerned about the impact of these developments on regional markets. In fact, he expects geopolitical tensions to ease, rather than intensify, in the near term. Markets have shown resilience, and if that holds, 2H could shape up nicely. Looking ahead, the pipeline for IPOs in the second half is expected to surpass that of the first half.

EFG has a packed calendar for the remainder of the year. The firm is preparing several issuances in Saudi, the UAE, and Kuwait. On the equity side, they’ve already closed four transactions and aim to complete another three to five before year-end. M&A and DCM pipelines are also very active.

THE LOCAL STORY-

What’s holding back the IPO pipeline in the UAE compared to regional peers? Saudi Arabia simply has a larger and more developed private sector than the UAE, according to Gad. Even without the big government listings, there are more companies ready to go public in Saudi. The UAE’s private sector, while dynamic, is smaller, hence fewer IPO candidates.

Authorities here understood that to build a vibrant and liquid equity market, they needed to list successful state-owned enterprises. Landmark IPOs such as DEWA and Salik helped attract investor attention, injected liquidity, and laid the groundwork for increased private-sector participation down the line.

Diversification is a key driver of resilience on DFM: The exchange has shown resilience in its YTD performance largely because the market has somewhat decoupled from oil prices, thanks to its diversified economic drivers, Gad said. People have historically seen a strong correlation between real estate and oil prices. But that relationship seems to have been tested again this year, and it’s not holding up the way it used to.

The economy remains vibrant, with strong performance across key sectors including real estate, services, logistics, tourism, and real estate. All of these verticals are thriving, which may explain the divergent performance between the DFM and other regional markets.

ELSEWHERE IN THE REGION-

Saudi’s ECM now offers remarkable diversity, Gad said, explaining that investors can tap into a wide range of sectors, from energy and infrastructure to healthcare and consumer goods. Each company brings a different story, management style, and growth potential, making the market both deep and dynamic.

Now the results speak for themselves: The Saudi market has been averaging around 20 listings per year — figures that were virtually unheard of in the past, he said, explaining that many of these offerings have been substantial in size, reflecting growing investor confidence and interest.

Tadawul has had some muted debuts, mostly due to stretched valuations, Gad said, adding that a correction may actually be a healthy development. This correction is viewed positively as a breather that allows for a reset toward more normalized valuation multiples. It also helps in creating more sustainable market capitalizations for listed companies.

And over in Egypt, the EGX is still lagging on listings — mostly thanks to a lack of deep domestic institutional capital. Big IPOs typically require foreign participation, and that had been on pause due to FX uncertainty and repatriation concerns.

What foreign investors want from Egypt: “Growth, plain and simple.” To attract foreign interest, Egyptian companies need to show robust growth, particularly in an inflationary environment, he explained, adding that with interest rates above 20%, dividend yields alone won’t cut it. Why invest in a stock when you can get a 20% zero-risk return? Gad says foreign investors are now looking for high-growth businesses with strong fundamentals and the resilience to withstand currency shocks.

Could Egypt see more listings this year? Possibly, but don’t hold your breath. It will likely take another 6-12 months before the EGX sees larger offerings again. Investor confidence is building, but it takes time to translate that into action.

Fed cuts could unlock GCC bond rally + fuel equity gains

GCC debt and equity markets stand to gain if the US Fed resumes its easing cycle in the back half of the year, Vice President and Head of Fixed Income at Mashreq Capital Amol Shitole told EnterpriseAM. Lower yields and tighter credit spreads would lift fixed income returns and spur issuance from both sovereigns and high-grade corporates looking to lock in cheaper funding.

It’s all about the context: If the Fed chooses to resume its rate-cutting cycle due to a mild slowdown in economic growth in the US, the cuts would support regional equities through stronger liquidity without undermining oil prices, he said. On the flip side, cuts triggered by a sharp US recession would be less supportive, as weakening global demand would pressure oil prices and curb credit appetite.

Mashreq expects the Fed to cut rates twice before year-end, in line with most analysts’ expectations, followed by at least four more reductions in 2026. Shitole said this outlook reflects expectations of moderating US growth, the long-term deflationary effects of tariffs, and the emergence of a more dovish Fed leadership next year.

REMEMBER- Fed Chair Jerome Powell’s run as chair ends in May 2026, and with the US President Donald Trump’s administration recent frustrations with him and his objections to the slow pace of rate cutting, speculation over who will be his successor — with names like Treasury Secretary Scott Bessent in the ring — abound.

A best-case scenario would see the Fed’s resumption of rate cuts drive high single-digit returns in GCC fixed income, supported by strong oil prices, tighter spreads, and robust investor demand, Shitole said. GCC equities would also benefit as lower borrowing costs stimulate credit demand.

The worst-case outcome would involve falling oil prices and a weaker USD eroding fiscal firepower, widening spreads, and dampening credit appetite, he noted. For GCC economies with currencies pegged to the USD, a weaker USD could also push up import prices, creating inflationary pressures.

OUTLOOK INTO 2026 -

Mashreq remains constructive on MENA fixed income, expecting mid-to-high single-digit total returns with carry (yield c.5.7%, 60 bps above the five-year average) as the main driver amid tight valuations.

Low default rates compared with emerging market peers also reinforce the region’s appeal. Shitole pointed to Egypt, Oman, and Morocco as standouts on reform momentum and improving credit metrics, while Saudi bonds are favored in the belly and front end, with the UAE and Qatar offering defensive value.

On equities, Shitole sees structural reforms in Saudi Arabia, Oman, UAE, and Kuwait supporting investments and capital flows in energy, IT, real estate, and hospitality.

Adnoc Drilling, Ghitha, Emsteel, Americana and Alef report 1H results

ADNOC DRILLING-

Adnoc Drilling’s net income rose 19% y-o-y to USD 351 mn in 2Q 2025, according to its financials (pdf). 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, according to its management discussion and analysis report (pdf). The board approved a USD 216.8 mn dividend for the quarter, equivalent to 4.98 fils per share, according to a separate earnings release (pdf).

For the six-month period, net income reached USD 691.9 mn, up 21.5% y-o-y, while revenues rose 29.9% y-o-y to USD 2.4 bn. Oilfield services saw the most growth, with revenues more than doubling to USD 689 mn due to increased contributions from the unconventional drilling segment and expanded integrated drilling services, according to a separate earnings release (pdf). Its onshore services brought in the lion’s share of revenues with USD 1 bn.

1H growth was further underpinned by some USD 4.8 bn in new contracts — its strongest ever backlog expansion. Adnoc Drilling also moved to acquire a 70% stake in SLB’s land rig businesses in Kuwait and Oman.

Looking ahead, 2H is set to outperform 1H, CFO Youssef Salem said in an earnings call yesterday. The firm raised the lower end of its 2025 revenue and earnings guidance to USD 4.65 from USD 4 bn, with net income expected to land between USD 1.375-1.45 bn.

The firm also upped its refinancing target from USD 1 bn to USD 1.5 bn, citing strong demand from banks, Salem told Asharq Business (watch, runtime: 8:59).

The M&A pipeline for its JV with Alpha Dhabi, Enersol, is healthy, with several transactions expected to be signed this year, and most of its USD 380 mn equity stake likely to be deployed in 2026.

AMERICANA-

ADX and Tadawul-listed F&B giant Americana Restaurants reported a net income of USD 92.5 mn in 1H 2025, up 15.7% y-o-y with revenues growing 15.6% to USD 1.2 bn, according to an earnings release (pdf). The growth came on the back of an increase in like-for-like sales, strategic expansion, product innovation, and continued cost discipline. The company maintained last year’s net income margin of 7.6% despite some USD 8.2 mn in new taxes in its main markets in 2025.

The firm expanded its footprint by opening 36 new stores and integrating 46 Pizza Hut outlets in Oman, bringing the company’s total store count to 2.6k locations across 12 countries. Americana also signed an exclusive franchise agreement with Greek food and beverage brand carpo earlier this month with rights in Kuwait and Qatar, and further expansion planned in Bahrain and Saudi Arabia. It is also in talks to buy a stake in Dubai-based Cravia, the MENA operator of Five Guys, Cinnabon, and Zaatar w Zeit.

GHITHA-

GhithaHolding saw its net income drop to AED 2 mn in 2Q, down from AED 106.8 mn the year before, according to its financials (pdf). This is due to a AED 71.8 mn boost from gains on a bargain purchase during 2Q 2024, while 2Q 2025 saw it take an AED 105.4 mn hit from discontinued operations. On the other hand, the Abu Dhabi-based food manufacturer’s revenues rose 8.9% to AED 1.3 bn during the quarter.

Its bottom line for the six-month period came in at AED 54.6 mn, well below the AED 2.8 bn figure reported in 1H 2024, which included substantial one-off gains. Once again, revenues performed better — rising 6.7% y-o-y to AED 2.6 bn. The company attributed its top line growth to recent acquisitions, including Al Jazira Poultry in 1H and Arabian Farms last year, according to a separate earnings release (pdf).

EMSTEEL GROUP-

EmsteelGroup posted AED 101.7 mn in net income for the second quarter of 2025, up 119.9% y-o-y, according to its financials (pdf). Revenues rose 17.8% to AED 2.1 bn during the quarter. For the six-month period, its bottom line reached AED 188 mn, up 7.7% y-o-y, while its top line saw a 8.7% y-o-y uptick to come in at AED 4.3 bn.

The growth was driven by improved operational and cost efficiency, which helped offset margin pressures, according to a separate earnings release (pdf). The firm’s steel division contributed AED 3.9 bn in revenues for 1H, up 7% y-o-y despite a 4% y-o-y dip in steel prices, while its cement segment brought in AED 428 mn, up 21% y-o-y. The group also shifted its focus from semi-finished to finished products.

ALEF EDUCATION-

Alef Education recorded a 3.4% y-o-y increase in net income to AED 117 mn in 2Q 25, according to the firm's financial statements (pdf). Revenues remained largely flat, at AED 177.6 mn for the quarter, compared to AED 177.5 mn the year before.

On a six-month basis: The firm’s bottom line saw 2.7% growth y-o-y to reach AED 232.3 mn, and revenues inched up 0.9% to AED 357.3 mn on the back of stable contributions from Alef’s core UAE portfolio, according to a separate earnings release (pdf). The six months also saw robust growth in other business and government contracts outside of its partnership with the Abu Dhabi Department of Education and Knowledge (ADEK).

Dividends: Alef Education will distribute a total dividend of AED 209 mn to shareholders, according to an ADX disclosure (pdf).

NMDC-

NMDC had a good 2Q: The National Marine Dredging Company (NMDC) Group saw its bottom line hike up 18% y-o-y to AED 971 mn in 2Q 2025, while revenues increased 5% y-o-y to AED 7.1 bn, according to an earnings release (pdf). This was driven by enhanced cost efficiency, increased operating margins, and robust operational control, according to a separate earnings release.

In 1H terms: The ADX-listed firm recorded a 20% y-o-y boost in its net income to AED 1.8 bn, while its revenues rose 10% y-o-y to AED 13.4 bn during the same period. The firm attributes the increase to its expansion into regional markets and ongoing infrastructure development projects, the statement adds.

Operational highlights: The total value of the firm’s projects under development hit AED 66.2 bn — with AED 15.1 bn awarded in 2Q alone. It’s also participating in AED 100 bn worth of ongoing tenders. NMDC Group’s newly launched logistics arm, NMDC LTS, also finalized its acquisition of a 70% stake in Abu Dhabi-based oilfield services and logistics firm Emdad last month.

Sukoon Ins. CEO steps down

Sukoon Ins. confirmed Jean-Louis Laurent Josi's (Linkedin) departure as CEO after seven years of leadership, according to a press release (pdf). The disclosure did not specify a reason for the departure but thanked him for his leadership. The board appointed CFO Hammad Khan (Linkedin) as interim CEO effective immediately.

Enec inks another nuclear collaboration, this time with Samsung

ENERGY-

ENEC + Samsung eye nuclear collaboration: The Emirates Nuclear Energy Company (ENEC) and South Korea’s Samsung C&T Corporation signed an MoU to partner on civil nuclear development and international investments, according to a press release. It inked similar agreements with Hyundai and US-based nuclear power firm Westinghouse Electric earlier this week.

Under the MoU, the two firms will look to invest in the US nuclear industry — focusing on building new plants, restarting old ones, engaging in mergers and acquisitions of brownfield plants, and backing nuclear service and equipment companies. They will also explore deploying small modular reactor technology in the UAE, US, and other international markets, look into nuclear-powered hydrogen production in South Korea, and develop a nuclear plant in Romania.

INVESTMENT-

Emirati VC Nuwa Capital participated in a USD 39 mn extension of Riyadh-based meal plan startup Calo’s series B funding round, bringing the total raised through the round to USD 64 mn and surpassing its initial target of USD 50 mn, according to a press release. The extension was led by Aljazira Capital, with participation from Nuwa and other recurring investors including STV, Khwarizmi Ventures, and Al Faisaliah Group, and Oraseya Capital.

Where will the funds go? Calo — which also operates in the UAE, Bahrain, Qatar and Kuwait — plans to use the funds to expand its product line into retail with long-life snacks and frozen meals for retail shelves, CEO Ahmed Alrawi told Bloomberg. Calo also plans to develop an on-demand delivery service, which will require setting up dark kitchens — commercial cooking spaces supported by a logistics network.

More in the works: Calo is expanding its product offerings by introducing new meal segments for athletes and lifestyle customers and launching a new line of healthy consumer packaged goods. The company is also piloting Calo Black, an AI-powered private chef experience to generate personalized menus.

REAL ESTATE-

DMDC launches property investment arm: Dubai-based interior design and construction firm DMDC established a new property investment division — DMDC Estates — with an initial AED 70 mn commitment, according to a press release (pdf). The fully-owned subsidiary will acquire, renovate, and sell premium residential properties across Dubai, beginning with projects in Arabian Ranches, Jumeirah Golf Estates, and Emerald Hills. DMDC plans to invest an additional AED 30 mn into the division later this year, the statement says.

FINANCIAL SERVICES-

CBUAE revokes Al Nahdi Exchange license: The Central Bank of the UAE (CBUAE) canceled Al Nahdi Exchange's operating license and removed it from the financial institutions register, according to a press release (pdf). The decision follows regulatory examinations that found failures in anti-money laundering and counter-terrorism financing compliance.

AVIATION-

Air Arabia will introduce direct flights from Ras Al Khaimah to two Russian cities starting October 2025, according to a press release. A weekly service to Yekaterinburg begins on 27 October, followed by flights to Kazan on 31 October.

AI-

Hexnode launches Amazon-powered data center in the UAE: Unified endpoint management solution firm Hexnode established a new data center in the UAE, hosted on Amazon Web Services, according to a press release. The infrastructure will support regional data residency requirements while improving performance for Middle Eastern customers in regulated sectors like finance, healthcare, and government.

DISPUTES-

Al Mazaya subsidiary sues over Dubai construction defects: A subsidiary of DFM-listed Kuwaiti firm Al Mazaya Holding filed a lawsuit in Dubai against a contracting company, subcontractors, and a consulting firm, alleging structural defects in buildings they developed, according to a DFM disclosure (pdf).

The details: Al Mazaya is seeking AED 82 mn for repairs, along with 5% interest, and an additional AED 23.2 mn from other defendants. It is also requesting an additional AED 40 mn in punitive damages, citing negligence.

The Fed keeps rates steady at 4.25-4.50%, despite a rare dissent

The Federal Reserve decided to hold its benchmark rate steady at 4.25-4.50%, marking a fifth consecutive meeting with no change, according to a press release (pdf). Wobbling net exports did not hinder the Fed’s decision, and the Fed left no hints on possible future rate cuts — at least until the trajectory of the Fed’s dual mandates, jobs and inflation, are clearer.

The rationale: Despite a low unemployment rate at 4.1%, a solid labor market, and moderate economic growth, inflation remained high in 1H this year, adding to the uncertainty of the economic prospect. Data provided limited justification to deviate from the cautious “wait-and-see” policy, which the Fed adopted since Trump took office.

“You have to think of this as still quite early days. There's quite a lot of data coming in before the next meeting. Will it be dispositive? [...] It is really hard to say,” Chair Jerome Powell said in a press conference. Investors seem to have taken Powell’s comments as a signal that the Fed might wait a little longer before it resumes its easing cycle, reducing the probability of a rate cut in September to less than 50%, Reuters reported.

Patience over haste: “We believe that the current stance of monetary policy leaves us well positioned to respond in a timely way to potential economic developments,” Powell said in June. Powell noted that trade policy uncertainty — especially around tariffs — continues to cloud the outlook and could fuel inflationary pressures if sustained.

Not all governors were on board: Yesterday’s meeting saw a rare dissent against the tight monetary policy from two governors — both appointed by President Trump. Vice Chair for Supervision Michelle Bowman and Christopher Waller — who are potential nominees to succeed Powell next May — were in favor of lowering the interest rates by 0.25 percentage points, according to the newswire.

The last time a Fed’s meeting saw an objection from two of its governors was over 30 years ago, reigniting fears of Trump’s public pressure affecting the work of the independent institution. Trump has been vocal in attacking Powell at every turn, demanding interest rate cuts and mounting a campaign against the Fed for alleged corruption and spending bns on renovations.

MARKETS THIS MORNING-

Asian markets are trading mixed this morning, after the US cemented a 15% blanket tariff on South Korea. Hong Kong’s Hang Seng is down 1.4% and the Shanghai Composite is down 0.8%, while Japan’s Nikkei is going in the opposite direction with an 0.9% increase. Meanwhile, Wall Street futures are rising on positive earnings from Meta and Microsoft.

ADX	10,353	+0.1% (YTD: +9.9%)
DFM	6,208	+0.5% (YTD: +20.3%)
Nasdaq Dubai UAE20	5,133	-0.3% (YTD: +23.3%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.2% o/n	4.1% 1 yr
TASI	10,914	+0.8% (YTD: -9.3%)
EGX30	33,860	-0.7% (YTD: +13.8%)
S&P 500	6,363	-0.1% (YTD: +8.2%)
FTSE 100	9.137	+0.0% (YTD: +11.8%)
Euro Stoxx 50	5,393	+0.3% (YTD: +10.2%)
Brent crude	USD 73.51	+0.4%
Natural gas (Nymex)	USD 3.02	-0.7%
Gold	USD 3,337.40	-0.5%
BTC	USD 117,105	-0.4% (YTD: +24%)
Chimera JP Morgan UAE Bond UCITS ETF	AED 3.53	-1.4% (YTD: -1%)
S&P MENA Bond & Sukuk	146.79	+0.3% (YTD: +4.9%)
VIX (Volatility Index)	15.48	-3.1% (YTD: -10.8%)

THE CLOSING BELL-

The DFM rose 0.5% yesterday on turnover of AED 569.2 mn. The index is up 20.3% YTD.

In the green: United Foods (+15.0%), Dubai Taxi (+3.4%) and Islamic Arab Ins. (+2.1%).

In the red: International Financial Advisors (-5.5%), National Cement (-3.2%) and National General Ins. (-2.4%).

Over on the ADX, the index rose 0.1% on turnover of AED 1.2 bn. Meanwhile, Nasdaq Dubai was down 0.3%.

UAE, Egypt to form joint working group for energy

UAE and Egypt’s energy ministers to improve collaboration: The UAE’s Energy and Infrastructure Minister Suhail Al Mazrouei and Egypt’s Oil Minister Karim Badawi agreed to form a working group for energy cooperation during bilateral talks in Abu Dhabi, according to a Facebook post by Egypt’s Oil Ministry. The talks come in light of Egypt’s focus on securing energy resources through regional and international collaboration.

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.

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.

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