AGP Executive Report

Gulf Security: Iran defended strikes on Kuwait and Bahrain as “self-defense” tied to U.S.-linked military sites, as Kuwait reported drone damage to its main airport and Bahrain said it intercepted missiles and drones—raising fresh risks for regional travel and trade. UAE Business & Markets: UAE lenders and banks were seen staying resilient amid volatile trading, while the CBUAE and CBB governors pushed deeper financial and monetary cooperation. Trade Policy: The U.S. proposed new Section 301 forced-labour tariffs covering 60 economies, with knock-on compliance pressure for exporters across the region. Energy & Infrastructure: EWEC awarded the Taweelah C 2.6GW IPP contract to a Taqa-led consortium, aiming to balance grid stability with decarbonisation. AI & Mobility: WeRide and Uber plan a Madrid robotaxi pilot, building on UAE operations, while Momenta secured permits for high-level autonomous driving demos in Wuxi. Finance & Investment: Arqaam Capital opened its MENA Investor Conference in Dubai, with Sheikh Nahyan highlighting UAE market leadership and capital scaling. Tech & Sanctions: A U.S.-Iranian tech CEO, Jamshid Ghomi, was arrested over alleged sanctions-busting sales of U.S. networking and encryption gear to Iran—an enforcement signal for cross-border procurement. Real Estate Capital: Kotak Alts closed its 14th India real estate fund at $1bn, backed by ADIA.

UAE Policy & Governance: Dubai issued new rules on body camera use by enforcement officers, tightening when footage can be recorded, how it’s stored and encrypted, and banning filming in highly private places. Power & Infrastructure: EWEC awarded the 2.6GW Taweelah C independent power producer (IPP) contract to a TAQA-led consortium, with a PPA running to 2050 and potential future carbon capture use. Life Sciences & Health Tech: M42 and Arcera signed an MoU to advance biopharma localisation in Abu Dhabi, using genomics data to support clinical development for genetic and rare diseases. Finance & Markets: Gulf stocks slipped on Iran war jitters, while Bank Indonesia moved to defend the rupiah as it weakened to around Rp17,900 per USD. Business Expansion: Danube Properties opened a new Central London sales office in Knightsbridge to market Dubai real estate to UK investors. Trade & Tariffs: The US proposed up to 12.5% additional tariffs under Section 301 after forced-labour findings, putting pressure on trade talks involving India and other economies. Venture Capital: du launched du Ventures, a $50m fund managed by Shorooq, to back startups and emerging tech in the UAE.

Dubai Enforcement Cameras: Dubai’s Executive Council issued a resolution setting rules for using cameras to document violations and judicial executions, with encrypted storage and strict access controls to protect privacy. Abu Dhabi Rent Relief: ADREC announced a temporary rent freeze in Abu Dhabi, cutting the allowed annual increase from 5% to 0% for renewals “until further notice,” while new contracts must match the prior rent. Mawarid Finance x Fimple: Mawarid Finance signed with Fimple to build Banking-as-a-Service via a composable “side core banking” layer, aiming to speed up new digital products and embedded finance. Abu Dhabi Testing Data Platform: ADQCC launched Mawthooq, a cloud platform linking labs to automate accreditation, audits and non-conformities, creating a trusted digital record of testing results. Oil Price Watch: ADNOC’s sales and trading chief said August could be a turning point for higher oil prices if the Iran war supply disruption persists, with full normalization possibly taking until mid-2027. UAE Nuclear Safety: IAEA DG Rafael Grossi praised the UAE’s peaceful nuclear programme after a Barakah plant visit, stressing continued cooperation on safety and security. AI Leadership Pressure: Dataiku research says UAE CEOs increasingly face investor and board pressure to deliver measurable AI outcomes by end-2026. UAE Business Resilience Push: DMCC unveiled a targeted acceleration package with licence renewal incentives, fee waivers and regulatory flexibilities to improve cash flow and reduce operating costs.

AI Infrastructure & Sovereign Cloud: Core42 (G42) expands its U.S. AI compute at Lake Mariner, boosting capacity from 18MW to 60MW with added NVIDIA and AMD resources, aiming to scale heterogeneous AI workloads. Payments & Fintech Expansion: OpenFX agrees to acquire Amsterdam-based Embed, adding EEA/UK payments infrastructure and licences, with closing expected in Q3 2026. Autonomous Logistics Funding: UAE driverless delivery firm CargoX raises $250m led by BlueFive Capital and appoints Tomaso Rodriguez as CEO to scale operations across Abu Dhabi and Dubai and beyond. Insurance & DIFC Growth: Allied World opens a regional office in DIFC to expand Middle East (re)insurance coverage, citing strong premium growth in the hub. Real Estate Development: DHG Properties starts work on Helvetia Marine, a premium Dubai Islands waterfront project targeting Q1 2028 delivery. Energy Markets Watch: OPEC+ is likely to raise July output targets despite delivery disruptions tied to the Strait of Hormuz and the UAE’s exit. UAE Policy & Cost of Living: Abu Dhabi rent-hike freeze rules are set to affect tenants, while Abu Dhabi also rolls out number-plate-based free-flow parking payments. SME Trade Support: DWTC Free Zone partners with DHL Express to help SMEs export via DHL GoTrade training and market access.

UAE Social Policy Update: Sheikh Mohammed bin Rashid has issued a law creating Dubai’s Community Development Authority, tasked with regulating and expanding the emirate’s social services, protecting vulnerable groups (including children and people of determination), and supporting volunteer work and community centres. Capital Markets Integration: Jordan’s Amman Stock Exchange and Abu Dhabi Securities Exchange launched an electronic trading link via Tabadul, aiming to broaden the investor base and boost cross-border trading efficiency. Smart Mobility & Payments: Abu Dhabi unveiled automatic parking payments using number-plate recognition, with fees deducted from the Darb e-wallet on exit under a Free Flow Parking System rollout. UAE Legal & Youth Rights: A new federal law took effect reducing the age of majority to 18 and allowing 18-year-olds to manage contracts, bank accounts, lawsuits and company formation independently. Energy & Trade Risk: Oil prices jumped above $94 as US-Iran talks and Strait of Hormuz disruption fears kept markets tense. Business & Finance: Uber is set to buy a controlling stake in UAE’s Careem for $100m, while Dubai’s real estate market saw 250 new projects launched worth Dhs75bn in early 2026. Regional Security Watch: US and Iran trade strikes continued, with Iran warning it could halt indirect talks and keep pressure on Hormuz.

Mobility & Trade: Dubai Taxi Company (DTC) signed an MoU with Ajman’s AJ Industries to expand mobility services in Ajman, combining local know-how with DTC’s digital platforms and transport operations. Smart City Finance: Dubai RTA said digital channels generated AED 5.3bn revenue in 2025 (+20.6%) with 628m transactions and 96% digital adoption. Energy Security: ADNO C plans to accelerate a West-East pipeline to Fujairah, aiming to bypass the Strait of Hormuz and lift exports toward ~3.3m bpd, targeting operations in 2027. Circular Economy Push: UAE launched the “Naseej” initiative to reshape the textile sector toward a circular economy. AI & DIFC: Positron AI opened its first international office in DIFC to scale AI inference infrastructure. Corporate Moves: e& agreed to sell a 12.5% stake in Careem Technologies to Uber for $100m, keeping 37.53% after completion. Fuel Prices: UAE petrol rose for June (Super 98 to Dh3.95/litre) while diesel fell to Dh4.33/litre. Business Expansion: AESG opened a new 25,000 sq ft Dubai headquarters as its project pipeline and headcount grow.

UAE-Serbia Dealmaking: Sheikh Mohamed bin Zayed spoke with Serbia’s President Aleksandar Vučić by phone, reaffirming long-term cooperation under a Comprehensive Economic Partnership Agreement, with focus on the economy, development and renewable energy. UAE Law & Youth Finance: A new UAE civil transactions law lowering the age of adulthood to 18 takes effect June 1, expanding financial control for young people and supporting entrepreneurship. Energy & Shipping Watch: With U.S. guidance helping vessels navigate, Strait of Hormuz transits are rising again, while Fitch says Middle East ratings have stayed resilient despite disruption risks. Renewables Push: UAE renewables are being cited as a global model for resilience, highlighting large-scale solar and battery storage benchmarks. Cross-border Business: ADIA-backed INNIO targets up to $20.25bn valuation in its IPO, while SoftBank plans up to €75bn for AI data centers in France. Trade Flows: UAE-Nigeria non-oil trade hit $5bn in 2025, with plans for Abu Dhabi First Bank in Lagos and Etihad flights to Abuja. Regional Security: Bahrain detained 41 suspects over alleged IRGC-linked network activity.

UAE Macro: The Federal Competitiveness and Statistics Centre says UAE real GDP rose 6.2% in 2025 to AED 1.9tn, with non-oil GDP up 6.8% to AED 1.5tn; construction led growth (11.1%), followed by finance/insurance (10.4%), real estate (7.9%) and transport/storage (7.8%). UAE Trade & Investment: UAE strengthens economic ties at the Eurasia Economic Forum 2026, with officials citing rising non-oil trade with EAEU states and new route-building priorities. Energy & Security: UN nuclear chief Rafael Grossi warns of a growing pattern of attacks on nuclear plants, pointing to the Barakah incident in Abu Dhabi. Regional Shipping: Strait of Hormuz traffic is edging up as US forces share navigation advice; shipowners report suspected Iranian fast-boat approaches being deterred. AI & Data Infrastructure: Asprofin Bank is evaluating a sovereign AI data centre programme across three UAE sites, targeting 750–1,280MW over 10–15 years. Business & Legal: UAE-linked financial allegations surface in India’s CMRL–Exalogic case, while Circle blacklisted Zama’s cUSDC contract, freezing about $12.6m amid a broader crypto dispute.

VAT on Mobility: Dubai motorists will pay 5% VAT on Salik road tolls and Parkin parking fees from Monday, lifting peak tolls from Dh6 to Dh6.30 and off-peak from Dh4 to Dh4.20, with Salik tag prices rising to Dh105 in-person and Dh126 online. UAE Growth Snapshot: The UAE economy hit Dh1.9tn real GDP in 2025 with 6.2% growth, while non-oil GDP grew 6.8%; trade (16.9%) and finance/insurance (13.2%) led non-oil contributions. Heat Risk Forecasting: Scientists say an AI model can predict UAE heatwaves with 96% accuracy, as heatwave frequency has accelerated since 2010. Currency Talks: UAE trade minister Thani Al Zeyoudi said the UAE is discussing a currency swap line with the US as part of an “elite group,” aimed at boosting trade and investment. Hormuz Shipping Alert: US and UK maritime authorities warned vessels to exercise extreme caution in the Strait of Hormuz due to ongoing military operations north of Oman’s Musandam. Business & Investment Angle: Abu Dhabi is pitching itself as a stronger global investment magnet by attracting companies through stability, incentives and diversification policies. Digital Finance Trend: China is pushing wider digital yuan use at home and abroad, including cross-border payments—an approach that contrasts with US policy.

UAE-Iran Tensions: A Wall Street Journal report says the UAE carried out dozens of coordinated airstrikes on Iranian targets with the US and Israel, underscoring rising Gulf risk for energy and trade. Middle East Energy Shock: Japan’s crude imports plunged 66% in April as Strait of Hormuz disruptions cut Middle East supply flows, with knock-on effects for refiners. Digital Finance Push: India’s RBI plans to expand the digital rupee into welfare payments and test cross-border use, while circulation falls as pilots widen. AI Investment in Abu Dhabi: MGX says it joined Anthropic’s $65bn Series H, backing Claude’s compute and safety work—another sign of UAE’s growing AI capital role. Aviation MRO Boost: Emirates broke ground on a $5.1bn aircraft engineering facility in Dubai South, aiming to scale global maintenance capacity. Trade Integration: UAE trade minister Thani Al Zeyoudi highlighted new routes and paperless logistics at the Eurasia Economic Forum in Astana. Court Ruling: A Dubai court ordered a woman to repay a Dhs100,000 loan to a company, citing signed acknowledgment and cheque records. Fintech Licensing: Decentro secured a PSP licence for GIFT City, targeting regulated cross-border payments. Eid-Era Consumer/Business: UAE coffee suppliers say Iran-war logistics are forcing them to protect flavour consistency amid freight and insurance cost spikes.

UAE–Global Energy & Trade: The IEA flags a $3.4tn energy investment surge this year, with big money flowing into electricity and renewables—while Middle East shipping risk keeps energy markets jittery. Ceasefire Watch: Reuters reports the US and Iran have reached a tentative ceasefire extension framework, aiming to keep Strait of Hormuz shipping open—key for global oil flows. Sanctions & Shipping: The US expands sanctions on Iran’s oil and petrochemical trade, naming firms and vessels across multiple jurisdictions, including UAE-linked operators. UAE Diplomacy at UN: The UAE condemns Iran’s attacks on civilian infrastructure and warns against threats to maritime security, calling for de-escalation. Digital Finance in the Region: RBI expands India’s e-rupee CBDC pilots into subsidy programmes and tokenised certificates of deposit; separately, the US rules out a digital dollar. UAE Business & Economy: Dubai launches “3 Days of Big Cuts” with discounts up to 90% across 2,500 stores and a “Win Your Home in Dubai” draw; UAE hotel guest numbers rise to 32mn in 2025. ADNEC Abu Dhabi: ADNEC Centre Abu Dhabi wins five Eventex 2026 awards, including sustainability and convention centre honours. UAE Corporate Moves: ADNOC offshore unit Zakher Marine explores US Gulf opportunities as it builds a North America footprint.

UAE Leadership & Eid: Sheikh Mohammed received Eid Al Adha well-wishers at Za’abeel Majlis in Dubai, exchanging greetings with officials, business leaders and citizens as he wished continued security and prosperity for the UAE. UAE Travel Readiness: Dubai Customs said it has boosted operational readiness at airports and ports for Hajj return and Eid Al Adha travel, using smart systems to speed up customs checks and cut waiting times. Middle East Trade & Aviation: Etihad will add a sixth daily Abu Dhabi–Tel Aviv flight from mid-June, making Tel Aviv its busiest route, with demand up sharply in Q1 2026. Iran Oil & Sanctions: The US imposed fresh sanctions on Iran’s military oil trade and targeted shipping and entities linked to oil sales, even as a 60-day ceasefire extension is reportedly pending Trump approval. Crypto & Enforcement: The FBI seized a record $8bn in cryptocurrency in a crackdown on “scam compounds,” including arrests tied to organized crime networks. Business Finance: Medline closed an upsized secondary share offering at $37 per share, with Abu Dhabi Investment Authority-affiliated sellers among the selling stockholders.

UAE Trade & Transport: Etihad will add capacity on its Abu Dhabi–Tel Aviv route, lifting to 42 weekly flights from June 15 as passenger demand rises and the airline sets fares for Bangkok. Energy & Shipping: Freight costs tied to Middle East supply constraints are pushing Asian buyers to cancel some US LPG cargoes, while Strait of Hormuz disruption risks keep oil and inflation worries alive. AI Infrastructure & Finance: Core42 (G42) secured US$550m in structured trade finance with HSBC to expand AI cloud and compute deployments from its UAE base. Cybersecurity: ESET flagged China-aligned APT activity targeting maritime, energy and Gulf-linked sectors, including a UAE defense firm. Digital Payments: Central banks are testing “always-on” cross-border payments via the BIS-led Agora project, aiming for 24/7 settlement. UAE Business & Economy: Zayed International Airport fully reopened with normal operations after airspace recovery, and UAE e-invoicing and digital finance initiatives continue to reshape transactions. Regional Risk: Kuwait reported a missile/drone attack amid US-Iran strikes and tense ceasefire talks, underscoring volatility for regional trade and jobs.

Eid Al Adha in the UAE: Thousands of worshippers gathered across Dubai mosques for Eid prayers, with families using the first morning to reconnect and share breakfast after sunrise. Strait of Hormuz fallout: Three months into the Strait of Hormuz disruption, explicit shortages are hitting developing economies, with job and growth risks rising as oil, gas and key derivatives become harder to source. UAE trade push: Dubai Chambers held meetings in Addis Ababa with Ethiopia’s industry ministry and investment bodies to expand trade and joint investment links. Healthcare & pharma: The UAE approved oral obesity drug Foundayo (orforglipron), positioning it as a shift toward long-term, non-injection obesity care. Gaza funding questions: Reports say Trump’s “Board of Peace” Gaza fund remains empty at the World Bank account level, with donors routing money elsewhere amid stalled reconstruction plans. Robotaxi growth: Pony.ai reported a record Q1 for Robotaxi revenue and raised 2026 targets, pointing to faster fleet expansion. Business & markets: Fitch reaffirmed the UAE’s AA- rating with a stable outlook, while UAE banks said they’re ensuring smooth transfers during Eid.

UAE Trade Resilience: At GLOBSEC Forum in Prague, UAE Foreign Trade Minister Dr. Thani Al Zeyoudi said the country is compressing years of logistics redesign into months, activating eastern ports (Fujairah, Khorfakkan), air-freight bridges for time-critical cargo, and new corridors plus a Dhs1bn SME support fund to keep trade moving amid the Iran war. Eid Safety Push: UAE police renewed warnings ahead of Eid Al Adha, urging parents to closely supervise children and avoid illegal fireworks that can cause burns and eye injuries. Regional Flashpoints: Iran hit back at US strikes calling them “bad faith,” while Seoul said an Iranian-developed anti-ship missile was likely behind an attack on a South Korean vessel in the Strait of Hormuz. Finance & Travel: The Central Bank told UAE banks to keep transfer systems running during Eid, and Dubai International Airport is set to close permanently by 2035 as flights shift to Al Maktoum International. Tech & Media: Sennheiser launched its HD 480 PRO closed-back studio headphones, and Hong Kong overtook Switzerland as the top offshore wealth hub.

U.S.-Iran Talks Under Strain: Fresh U.S. strikes and Iran’s vow of retaliation are rattling fragile ceasefire efforts, even as negotiators keep working in Qatar and hopes for a deal to reopen the Strait of Hormuz persist. Markets & Energy Mood: Stocks stayed mixed as investors weighed the prospect of détente against higher oil and inflation pressure; gold is still seen as supported, with near-term sideways moves possible. UAE Trade & Logistics: Crown Prince Hamdan visited Jebel Ali Port to review operations and multimodal corridors, highlighting DP World’s push to keep regional trade moving. Eid Consumer Moves: Dubai’s Parkin announced Eid-related free parking rules, while UAE clean mobility continues to make EV ownership easier for drivers. Digital Finance Push: UAE experts say Open Finance and the Digital Dirham are building “rails” for faster, more connected financial services. Corporate Spotlight: Zuari Industries reported a sharp FY26 turnaround to profit as margins improved. Maritime Incident: A Greek-managed tanker was hit by an explosion off Oman; crew were safe and the vessel continued onward.