Good morning, friends. We write to you for the first time after another eventful weekend, which saw a significant escalation in the conflict in Iran with the US launching strikes on three Iranian nuclear strikes — Fordow, Natanz, and Isfahan — early yesterday. US President Donald Trump said the sites were “totally obliterated” in a televised address (watch, runtime; 4:12), and warned that future attacks would be “far greater, and a lot easier” unless Iran agrees to peace.

UN Secretary-General António Guterres called the strikes a “dangerous escalation in a region already on the edge,” warning that the conflict risks spiraling without a diplomatic resolution.

The UAE evacuated several citizens and residents from Iran on Friday amid the escalation of violence in coordination with Iranian authorities, state news agency Wam reports. The Federal Authority for Nuclear Regulation (FANR) said there is no current impact on the UAE from the US military strikes on Iranian nuclear facilities, and that it is currently monitoring the situation, state news agency Wam reports.

UAE president continues diplomatic push for de-escalation: President Mohamed bin Zayed spoke by phone with the leaders of Kuwait, Qatar, and Saudi Arabia to discuss the fallout from the strikes on Iranian nuclear sites, and their potential to destabilize the region, Wam reports. The leaders called for restraint and stressed the importance of diplomacy and peaceful resolution to avoid further escalation.

The Foreign Ministry echoed those concerns in a separate statement, expressing its “profound” concern over risks posed by the ongoing tensions and the targeting of nuclear facilities. It urged “immediate de-escalation to avoid serious repercussions and spare the region from being pulled into deeper levels of instability” and called on the international community — particularly the UN and its Security Council — to intensify efforts for a comprehensive settlement that avoids further conflict and promotes long-term regional stability.

Regional airspace disruptions have also yet to let up: Multiple UAE carriers have canceled regional services throughout June due to regional security concerns, The National reports. Etihad has suspended Tel Aviv flights until 15 July, while Emirates has stopped journeys to Tehran, Baghdad, and Basra until 30 June. Flydubai is also halting flights to Iran, Iraq, Israel, Syria, and St Petersburg until the end of the month, and Air Arabia is suspending its services to regional and eastern European destinations for the rest of the month.

ALSO- British Airways halted all Sunday flights to Dubai and Doha, while Singapore Airlines canceled two flights between Singapore and Dubai, including return trips, Daily Mail reports.

The question everyone is trying to answer is: what happens next? Regional security and the global economic outlook now depend on how Tehran decides to respond, with the possibility of Iran choosing to close the Strait of Hormuz or target US assets and personnel already prompting a slew of diplomatic efforts and sending energy markets into a spin — although not by as much as some had feared.

So far, Iran’s response has been limited to continuing to exchange missiles with Israel. Iranian Supreme Leader Ayatollah Ali Khamenei has allegedly decided not to retaliate against the US directly and “risk a harsher response that wreaks more destruction on the republic,” Iranian government insiders told the Financial Times .

But if Iran does decide to close the Strait of Hormuz, crude oil prices could soar past USD 130 per barrel, with the cutting off about 30% of the world’s daily oil supply and 20% of global LNG trade violently ramping up energy costs across the globe, according to Bloomberg analysts. In response to Iranian state TV reports that the country’s parliament had voted to approve the closing of the energy corridor, US Secretary of State Marco Rubio urged Beijing to pressure Iran to keep the passage open. (Bloomberg | Reuters | New York Times | Financial Times | Wall Street Journal | Guardian)

Things at home were a lot calmer, with the government shuffle and introduction of a Foreign Trade Ministry being the big story over the weekend.

WEATHER- Expect a rise in humidity today as the mercury peaks at 40°C in Dubai, before dipping to an overnight low of 30°C. Over in Abu Dhabi, the mercury peaks at 35°C, before cooling to 31°C overnight.

WATCH THIS SPACE-

#1- Gulf IPOs + debt offerings might need to wait for calmer waters: Deutsche Bank (DB), which has quarterbacked several of the region’s high-profile capital market plays, is advising its clients to hold off on equity and bond offerings in this part of the world until regional markets regain stability, the lender’s MENA CEO Jamal Al Kishi told Asharq Business in an interview (watch: runtime: 1:30). The bank is encouraging issuers to take a wait-and-see approach given recent market jitters. It’s already been a subdued year for IPOs here at home, with only one listing on the DFM, courtesy of Dubai Residential REIT, and another on the ADX courtesy of Alpha Data.

Bearish on the near-term, bullish on the long run: While Gulf exchanges, particularly Saudi Arabia’s and the UAE’s, have been among the most active IPO venues globally in recent years, Al Kishi expects a slight slowdown in the near-term. That said, he still anticipates strong momentum for public offerings over the next two to three years.

IN CONTEXT- Investment bankers have said that IPO pipelines in the GCC remain intact, noting that there’s been no material pullback following the Israel-Iran flare-up. Emirates NBD Capital said that its fall pipeline remains unchanged, though no summer listings are expected. Market watchers say smaller, domestically focused IPOs are moving ahead, while larger, government-backed offerings could face delays if regional volatility persists.

#2- SCA considers allowing board chairs to double as MDs: The Securities and Commodities Authority (SCA) is weighing amendments (pdf) to its corporate governance guide that would permit board chairs at public joint-stock companies to also serve as managing director and/or company director — a dual mandate that is currently prohibited. The proposed changes are open for public comment until 26 June, the regulator said in a statement.

The move would come with safeguards: Companies would need to appoint an independent vice chairperson to lead performance reviews of executive management, ensure that at least 75% of board members are independent, and disclose the rationale for the combined role to shareholders. The chairperson would also be barred from taking part in the board’s annual self-assessment.

#3- Dubai’s Roads and Transport Authority (RTA) and Emaar Properties plan to expand capacity at the Burj Khalifa/Dubai Mall Metro Station by 65%, according to a statement. The project will nearly double the station’s hourly capacity to 12.3k passengers from 7.3k, while enlarging its area to 8.5k sqm, up from 6.7k sqm. Once completed, the station will accommodate up to 220k passengers per day.

The rationale: The project looks to address growing passenger demand during peak times as demand for the metro continues to rise, averaging an annual increase of 7.5% over the past five years, RTA Chairman Mattar Al Tayer said. The move also comes as the mall undergoes a AED 1.5 bn expansion, set to introduce 240 new stores and F&B outlets to the world’s second largest mall.

DATA POINT-

Gross bank assets rose 1.9% m-o-m to reach AED 4.7 tn in March, according to the Central Bank of the UAE’s latest monetary and banking developments report (pdf). Meanwhile, gross credit increased 1.6% to AED 2.2 tn, driven by a rise of AED 19.5 bn in domestic credit and AED 16.2 bn in foreign credit. Within domestic lending, credit to non-banking financial institutions grew by 1.9%, lending to the private sector rose by 1.4%, and 0.2% to government-related entities. These increases offset a 0.3% decline in credit extended directly to the government.

Total bank deposits climbed 2.3% to AED 2.9 tn, with resident deposits rising 2.4% to AED 2.7 tn and non-resident deposits increasing 0.4% to AED 248.6 bn. Among resident deposit categories, non-banking financial institutions led with a 5.1% rise, followed by a 4.3% increase from government-related entities and a 3.1% uptick from the private sector. Government deposits declined by 2.3%.

Sahel – what was once Egypt's summer escape has become an economic hub, social ecosystem, and regional travel hotspot. And we’re going to help you decode its rapid evolution with EnterpriseAM Destination Sahel.

In this special four-part summer series we’re taking the insights you’ve come to expect of us seaside. Think everything from Ras El Hekma's impact and investment opportunities to exclusive interviews with key players. And it wouldn’t be Sahel season without a sprinkling of what’s shaking up socially.

Subscribe to our Egypt edition to get the scoop delivered to your inbox tomorrow

See you, Sahel-side.

PSAs-

#1- The UAE introduced more flexible residency measures for Sudanese nationals, allowing them to renew their visa and issue Emirates IDs even if their passports have less than six months of validity, Khaleej Times reports. The Federal Authority for Identity, Citizenship, Customs, and Port Security (ICP) implemented the policy effective 19 May 2025, through 31 December 2025.

The details: The policy follows an earlier May decision waiving all outstanding residency fines for Sudanese citizens.

#2- Al Qudra Road diverted for 5 months: Dubai’s Roads and Transport Authority (RTA) have implemented a major traffic diversion at the Arabian Ranches junction — which started yesterday — to make way for bridge construction works, RTA said in a post on X. The five-month diversion is part of broader infrastructure enhancements to improve traffic flow and intersection efficiency on Al Qudra Road.

#3- The Education Ministry has made it mandatory for kindergartens in private schools to teach Arabic, Islamic studies, and social studies as of the upcoming school year, state news agency Wam reports. Arabic will be taught for 40 minutes daily initially, rising to hour-long lessons by 2027/2028.

HAPPENING TODAY-

UAE + European Parliament hold dialogue session: The UAE Federal National Council and the European Parliament are meeting in Abu Dhabi today for an official dialogue session, state news agency Wam reports. Discussions will focus on parliamentary cooperation and alignment on regional and international issues.

HAPPENING THIS WEEK-

#1-EVCharge Live Middle East arrives at the Dubai World Trade Center on Tuesday and Wednesday, spotlighting EV charging infrastructure. Event highlights include a conference with over 150 speakers, an EV and charging exhibition, and networking meetings.

#2- Solar & Storage Live is also happening on Tuesday and Wednesday at the Dubai World Trade Center. The solar energy and battery storage exhibition will see over 10k attendees meet for talks and exhibitions on technology focused on the green transition.

#3- Mobility Live Middle East returns to Dubai on Tuesday and Wednesday at the Dubai World Trade Center, spotlighting future transport. The trade event will bring together regional mobility leaders for keynotes, panel sessions, and an expo featuring autonomous tech, smart cities, and public transport.

#4- Middle East Rail will run in parallel on Tuesday and Wednesday at Dubai World Trade Center, bringing together transport ministries, rail operators, and tech firms for discussions and exhibitions on high-speed networks, digitalisation, and transit infrastructure.

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