Non-oil business activity steady in April + Dubai Holding to IPO 12.5% of Dubai Residential REIT

Non-oil activity remains unchanged in April: The UAE’s non-oil activity saw growth levels remaining largely unchanged from the previous month, with robust business activity indicating “a solid strengthening of operating conditions,” according to S&P Global UAE PMI (pdf). The headline figure came in at 54.0 during the month, remaining unchanged from March.

REMEMBER- The all-important 50.0 mark is the threshold separating contraction from growth. Anything above 50 denotes expansion, while anything below indicates contraction.

New orders and employment were up: The new orders subindex rose slightly to 56.9 in April, up from 56.3 in March, partially driven by the strongest upturn in international demand for five months, which came in tandem with increased domestic clients, Reuters writes. Meanwhile, hiring went up to its highest level in nearly a year, with the subindex for employment registering a reading of 51.4 as firms “increased hiring to manage work backlogs and support future business activity,” National Bank of Kuwait's Issa Hijazeen told EnterpriseAM UAE. However, “employment growth was still modest overall, adding to suggestions that some firms may be struggling to recruit,” S&P Global senior economist David Owen said

Business activity also continued to rise, but it did so at its slowest pace in seven months, with firms indicating that they faced difficulties with completing existing work amid payment delays.

Meanwhile, input purchases saw a considerable increase during the month, with companies reporting growing demand for materials and components. However, the growth in input purchases slowed from March’s 68-month high. Stock levels also mostly remained unchanged, as growth in the stocks of some firms was offset by reductions elsewhere.

Input prices were also on the rise, with firms reporting upticks in both purchasing and staff costs. Output prices rose in tandem with this increase, but they did so at a slower pace than March, as companies looked to lower prices amid strong competition.

Business sentiment remains positive: “Looking ahead, surveyed firms remained confident that sales pipelines and resilient market conditions would support activity going forward. The degree of confidence ticked up for the third month running and was the best recorded in 2025 so far,” the report reads. “Firms are also hopeful that elevated demand levels and strong pipelines, as characterised by steeply rising backlogs, should propel activity higher in the coming months," Owen said.

MEANWHILE, IN DUBAI-

Business conditions in Dubai improved at a slower pace in April, with the Dubai PMI slipping to a low of 52.9 in April, down from 53.2 in March, with firms reporting the “the slowest pace of growth since last October,” the report reads. However, order book volumes continued to increase, with output levels increasing slightly from the three-and-a-half-year low recorded in March. Employment also expanded during the month, as firms looked to bring up their capacity.

On the flip side, confidence is taking a hit: Contrary to overall UAE sentiment, “[Dubai] companies showed a lower degree of confidence towards future activity levels. In fact, expectations were among the weakest on record,” according to the report.

Dubai Holding eyes IPO of residential REIT on DFM: State-owned investment conglomerate Dubai Holding is looking to list 12.5% of its Dubai Residential REIT on the DFM in what would be Dubai’s first IPO of the year, according to the prospectus (pdf). The vehicle is set to be the first pure-play residential leasing REIT to list in the GCC and the largest by assets.

Dubai Holding is seeking up to USD 500 mn from the offering, sources told Reuters. The listing would be the first in Dubai this year, and the second in the UAE, following Alpha Data’s AED 600 mn IPO in February. It’s also the first to take place since volatility hit global markets following the US’ introduction of sweeping tariffs last month. ADQ-backed Etihad Airways had pushed its highly anticipated IPO to after Eid Al Fitr, but we haven’t heard anything yet, while Dubizzle and Property Finder are gauging investor appetite ahead of potential listings.

About the fund: The AED 1.3 bn REIT manages some 35.7k residential units across 21 communities with a gross asset value of AED 21.6 bn. It’s a closed-ended, income-generating real estate investment fund, with assets last year reaching an occupancy level of 97%.

A two-tranche offering: Some 1.63 bn REIT units will be up for grabs in an offering open to both retail and institutional investors, with Dubai Holding Asset Management (DHAM) — a wholly owned subsidiary of Dubai Holding — raking in all of the proceeds from the secondary unit sale. The institutional tranche of the offering (90%) is Reg S compliant making it easier for foreign institutions to buy in, while retail investors will be allocated the remaining 10%.

Books open next week: The subscription period will run from 13-20 May, during which each institutional investor can book orders without limits, while retail buyers must commit to at least 2k units each. The final offer price will be announced on Wednesday, 21 May, along with the allocation of units. The Dubai Residential REIT will ring the bell on the DFM on Wednesday, 28 May.

A sweetener for investors: The REIT is targeting semi-annual dividend payouts starting September of this year, with its first two distributions expected to total at least AED 1.1 bn or 80% of its FY 2025 profit — whichever is higher. The REIT intends to maintain the 80% payout threshold in future years.

The timing is strategic: “The REIT...is actually a defensive investment vehicle,” CEO of Dubai Holding Asset Management Malek Al Malek said at a media briefing. “So with this volatility, investors usually look for some of these very clear government stories that can yield outcomes," Malek said.

A snapshot of its financial performance: The Dubai Residential REIT’s net income dipped roughly 21.8% y-o-y to AED 2.64 bn in 2024. Its revenues were up 8.9% to AED 1.8 bn over the same period, according to the ITF document (pdf).

ADVISORS- Emirates NBD Capital, Morgan Stanley and Citigroup are quarterbacking the transaction as joint global coordinators, with Abu Dhabi Commercial Bank, Arqaam Capital and First Abu Dhabi Bank acting as joint bookrunners on the transaction. Deloitte & Touche is auditor, while Ibrahim & Partners is legal counsel. Receiving agents include Emirates NBD Bank, Mashreq Bank, First Abu Dhabi Bank, and Emirates Islamic Bank, among others.cu

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.

The story also got ink from Bloomberg.

Imagine a world where your personal AI agent is able to help you plan, book and pay for everything from a highly-customized weekend getaway, to a business trip, or even your child’s birthday party — all in a matter of minutes. That’s the future the financial services giant imagines with a suite of products and services it unveiled at a global product drop in San Francisco last week.

Welcome to what Visa is calling “Visa intelligent commerce,” which it said will allow AI agents to find and buy products and services for their human masters. EnterpriseAM was there as Visa CEO Ryan McInerney and Chief Product and Strategy Officer Jack Forestell showcased the products they think will drive the next wave of AI-driven commerce and money movement.

The promise: Give the bot your credit card, your size, and the cut and color you want, and it will go find that perfect pair of jeans for you. “As new ways to pay emerge, they need to run on a network that is always on — that is safe, secure, scalable and relentlessly innovating,” said McInerney. “We are taking the power of our network and our decades-long expertise to bring new products and solutions that will transform commerce and bring trust and security to AI-enabled payments,” he added.

Roll-your-own AI commerce: A key focus of the gathering was Visa Intelligent Commerce, through which Visa is opening its payments network to developers and engineers building the first generation of AI commerce.

Visa thinks AI commerce could have an impact on the same magnitude as e-commerce itself: “We believe that the shift to AI driven-commerce will rival the level of impact that e-commerce had,” said Forestell. “E-commerce relieved us of the burden of having to physically go out and find merchandise, but we still have to find ways to comb through and compare every available product on earth before making a purchasing decision.”

How? AI agents. “AI agents have the potential to remove that cognitive burden and to save the user an extraordinary amount of time, but in order for AI driven commerce to work, we have to solve the payment problem which is largely rooted in trust.”

SOUND SMART- Boosters of the technology see an AI agent as smart software “unleashed”: It can “see” its digital environment, roam the web, make decisions, and act on its own to achieve specific goals you set for it.

The promise? Big boosts in efficiency by automating complex workflows 24/7, hyper-personalized customer interactions at scale, and freeing up people for higher-value work. Imagine streamlining everything from logistics to financial analysis.

The catch? AI agents are very much in their infancy. They’re complex and costly to build and integrate. Ensuring they operate safely, ethically, securely, and reliably — without going off-script — is the key challenge. Then there’s managing data privacy and figuring out who’s responsible if things inevitably get complicated or go awry.

Visa says its network is key to getting businesses and developers to build AI commerce on a foundation of trust. “Visa will bring trust to AI commerce by providing a simple way for our partners — AI platforms, tech players, banks, fintechs, merchants and more — to access the Visa network. This is the next step in Visa’s journey to connect even more buyers and sellers through seamless, secure digital payments,” explained Forestell.

Also in Visa’s pipeline: AI-ready cards, which involve upgrading Visa cards with tokenization and authentication to ensure secure transactions with AI agents. Simple and secure AI payments will be facilitated through new services like payment instructions and payment signals, providing trust, transparency, and control for all parties involved, the company says. And AI-powered personalization could inject insights from bns of payment transactions — provided the privacy implications can get sorted out.

Also in the news: The San Francisco event also featured updates on Visa's broader product roadmap, including advancements in digital identity, flex credentials, and stablecoins. The company also launched Visa Pay and Visa Accept, two new products designed to expand access to the Visa network for consumers and sellers.

In context: Visa’s tech is still in the early testing phase. Mastercard says it’s working on something it is calling “Agent Pay” that will also integrate payments into AI chatbots, and PayPal showed off an agentic AI toolkit last week

Want a taste? Catch Visa’s teaser for the event here.

Another rig contract for Adnoc Drilling: Abu Dhabi National Oil Company (Adnoc) Drilling has nabbed a USD 806 mn long-term contract for three newbuild island rigs as part of the Zakum development project from Adnoc Offshore to expand its operations at the site, according to an ADX statement (pdf). The three new rigs will come in addition to three ordered back in July 2024, and will be located on Adnoc’s pioneer artificial islands Upper Zakum — home to the world’s five longest wells — including a record-breaking 53k ft well.

Full rig mode: The new generation of rigs will be built through a strategic partnership between Adnoc Drilling and China-based drilling rig exporter Honghua Group, and are set to gradually enter into operation between 2027 and 2028. The rigs will be utilized for reach drilling services, which will be capable of drilling nearly 16 km from the seabed. They will feature built-in AI to provide real-time analytics in a bid to boost both safety and performance across Adnoc’s offshore operations.

The bigger picture: The addition will boost Adnoc Drilling’s total fleet to over 151 rigs by 2028 — hosting 98 onshore and 53 offshore rigs —positioning it as the largest regionally and one of the biggest globally, CFO Youssef Salem said in a statement on LinkedIn.

REFRESHER- What is Upper Zakum? Upper Zakum is the world’s second-largest offshore oilfield and consists of four artificial islands: Al Ghallan, Umm Al Anbar, Ettouk, and Asseifiya. The first phase of the project was launched in 2019, with the main USD 825 mn EPC contract going to UAE-based Target Engineering Construction Company. The oilfield is also set for further expansion: Adnoc Offshore awarded a USD 500 mn contract to Target Engineering Construction Company for the second phase of the expansion of Upper Zakum offshore field back in November 2024, with the target of increasing increase oil production at Upper Zakum to 1.2 mn barrels per day.

The Dubai Multi Commodities Center (DMCC) has introduced two new license categories for special purpose vehicles (SPV) and holding companies to provide flexible, low-cost structures for investors, multinational firms, and family offices, the freezone said in a statement. The licenses allow companies to manage assets, hold investments, and oversee regional operations without needing a physical office or operational setup.

Who will benefit? The SPV license caters to investors and businesses in asset holding, securitization, and structured finance, while the Holding Company license is designed for businesses consolidating ownership or managing subsidiaries, including regional headquarters, family offices, and investment groups, looking to streamline tax procedures and governance.

IN CONTEXT- The UAE’s tax overhaul is fueling demand for simplified structures: The Finance Ministry has been working to ease corporate tax requirements, including through the introduction a number of new amendments that exempt Qualifying Investment Funds (QIFs) and Qualifying Limited Partnerships (QLPs) from paying corporate tax under certain conditions. The ministry also issued amendments in November to ease administrative and tax compliance requirements for domestic businesses, foreign partnerships, and family foundations.

ADNOC GAS-

Adnoc Gas reported a 7% y-o-y increase in net income to USD 1.3 bn in 1Q 2025, “significantly [exceeding] market expectations” and marking one of its strongest quarters since listing, according to its earnings release (pdf). Revenues edged up 1.5% y-o-y to USD 6.1 bn, while EBITDA grew 4% y-o-y to USD 2.2 bn, supported by resilient gas demand and tighter execution of maintenance schedules.

Sales volumes rose 1% y-o-y despite planned shutdowns, as the company optimized turnaround times to unlock additional production, according to a separate financial presentation (pdf). Domestic gas margins improved to USD 1.09/mmbtu — above guidance — while Adnoc Gas capitalized on a favorable pricing window by locking in the forward bulk of FY 2025 LNG spot cargo sales early in the quarter.

LPG — now contributing 27% of total revenues — traded stronger than Brent during the quarter, further boosting margins, CFO Peter Van Driel said at a media briefing.

PLUS- Brent-linked exposure will have limited impact on financials down the line, Van Driel said in a separate interview with Bloomberg (watch, runtime: 05:35), as roughly two-thirds of Adnoc Gas’ volumes are sold domestically under fixed-price contracts — shielding earnings from oil price volatility, including a 4% drop in Brent during the quarter.

Capex rose 43% y-o-y to USD 555 mn as the company continued to invest through the cycle, in line with its revised five-year capex plan of USD 15 bn. Van Driel confirmed that the plan includes newer projects like IGD-E2 and MERAM, but excludes the larger Rich Gas Development (RGD) and Bab Gas Cap projects.

RGD alone could exceed USD 5 bn in total cost if the company proceeds with additional processing and fractionation trains, alongside the planned USD 4 bn debottlenecking phase, Van Driel said. A final investment decision is expected this summer, with Train 7 at Habshan and a new unit at Ruwais under review.

Looking ahead: The company expects to be included in the MSCI index next month, and on FTSE in September, following its February 2025 secondary offering, which increased its freefloat from 5% to 9%.

ALPHA DHABI HOLDING-

Alpha Dhabi Holding reported a net income of AED 2.1 bn for 1Q 2025, a decline of 54.5% compared to the same period last year, according to its financials (pdf). The company saw its revenues grow 22.8% y-o-y, reaching AED 17.4 bn. The group’s total assets stood at AED 185.3 bn at the end of the period.

Market fluctuations and changes in the fair market value of certain public investments accounted for the dip in its bottom line, according to a separate earnings release (pdf). In January, it upped its stake in National Corporation for Tourism and Hotels to 73.73%. The group credited its diversified portfolio in high-growth sectors for boosting its top line.

DU-

du’s bottomline increases 19.8% y-o-y to AED 722.5 mn: Emirates Integrated Telecommunications Company’s (du) reported a 19.8% y-o-y increase in net income to AED 722.5 mn in 1Q 2025, according to its financials (pdf). Revenues rose 7.4% y-o-y to AED 3.8 bn, with its mobile segment accounting for the largest portion of the top line with AED 1.7 bn in revenues, followed by its fixed segment with AED 1.1 bn.

What drove growth? The company attributed the strong performance to higher service revenues, a better revenue mix, operational efficiency, and a gain in market share, according to a press release. du’s mobile customer base grew 5.5% y-o-y to 9.1 mn, while fixed-line subscribers rose 13.8% y-o-y to 701k. The firm also cited effective cost controls and capital spending discipline.

Strategic moves: In a bid to diversify its revenue streams, du signed a strategic partnership with Microsoft to develop a hyperscale data center in the UAE, part of its pivot into high-growth digital infrastructure.

Archer Aviation has appointed Cristiano Tartaglione (LinkedIn) as COO for its operations in the UAE, according to a press release. The retired Brigadier General will oversee the launch of Archer’s Midnight eVTOL aircraft and the development of operational infrastructure. Tartgalione previously served as Italy’s defense attaché to the UAE and held a leadership role with the Italian Air Force.

Emirates Ins. Company has named Abhay Gupta (LinkedIn) as its chief distribution officer, according to a press release (pdf). Bringing over 20 years of experience, Gupta was previously head of distribution for the UAE, and was also head of Zurich Ins. Middle East’s broker channel.

Dubai-headquartered financial services firm Klay has appointed Cheryl Wong (LinkedIn) as its new COO, according to a LinkedIn post. She will spearhead the expansion of Klay’s wealth management, and brings with her over 30 years of experience in risk management, compliance, operations, and transformation. Her previous roles include COO of Deutsche Bank’s Southeast Asia and Global South Asia arm and head of compliance at Standard Chartered Bank Singapore.

ADX-listed Eshraq Investments's Fahad Al Qassim (Linkedin) chairman stepped down to focus on other professional roles, including his positions as a board member of logistics firm Aramex and chairman of Islamic insurer Salama, according to an ADX disclosure (pdf). Al Qassim is also the director general of the Endowments and Minors Funds Authority in Abu Dhabi and was previously CEO for healthcare and life sciences at ADQ.

M&A-

#1- Egyptian electrical company Elsewedy Electric acquired a 60% stake in Dubai-based Thomassen Service as the company expands its global footprint and diversifies its capabilities in the energy sector, according to a statement (pdf). The acquisition consists of Thomassen’s Middle East and Africa business unit, filters manufacturing, and its African business affiliate and marks Elsewedy’s expansion into the oil and gas industry.

What they said: “This acquisition is a strategic step toward delivering fully integrated, end-to-end solutions in the energy business. We are reinforcing our position as a comprehensive energy partner capable of executing projects from inception to long-term operation with unmatched efficiency and reliability,” said Elsewedy Electric Senior Vice President Wael Hamdy.

#2- UAE-based logistics platform Canater has secured USD 1 mn from regional investment firm Foras in exchange for a 10% equity stake, according to a press release. The funding will be used to scale its digital infrastructure, expand across different sectors, and strengthen collaboration with regulators to streamline export processes.

Canater? Founded in 2024 by Khamis Soliman (LinkedIn), Canater provides AI-powered supply chain and cross-border trade tools for manufacturers in the MENA region. Its platform offers digital contracts, financing, warehousing, logistics, and real-time shipment tracking, with an initial focus on consumer-packaged goods which has a global market value of USD 11 tn.

#3- Tadawul-listed ins. firm Walaa Cooperative Ins. is closing in on its SAR 68 mn acquisition of Dubai’s Aspire Underwriting Agency, having lined up final clearances from the Dubai Financial Services Authority (DFSA), it said in a filing to the Saudi bourse. The transaction, which had been pending DFSA approval, grants Walaa an 88% stake in the DIFC-based ins. company, as part of its strategy to expand its inbound reins. Footprint.

E-COMMERCE-

LuLu, FinMin partner on digital procurement: Lulu Group is connecting its corporate e-commerce platform, LuLuOn, with the federal government’s digital procurement system, according to a press release. The two sides signed a strategic agreement to allow federal entities to purchase directly from LuLu’s catalog through the federal e-procurement platform.

The integration aims to reduce procurement cycles from 60 days to minutes as well as improve cost control. Federal agencies will access LuLu’s products, including food, groceries, and operational supplies at corporate pricing.

STARTUPS-

Dubai SME’s market accelerator iAccel GBI has partnered with Dubai International Financial Center’s start-up focused platform Ignyte to enhance support for high-potential startups in the UAE and GCC, according to a press release. The partnership will provide integrated access to cross-border networks, investor visibility, and mentorship.

The structure: Startups in iAccel GBI’s portfolio will gain access to Ignyte’s network of investors, corporate partners, and marketplace offers. Ignyte’s startups will leverage iAccel GBI’s market-entry expertise for Middle East expansion. Phased onboarding of iAccel GBI startups onto Ignyte’s platform is currently underway.

REAL ESTATE-

Global real estate tokenization platform ForteXchain launches: Capital Investment Holding, digital asset platform Fasset, and Emirati digital bank Zand Bank have launched ForteXchain, a blockchain-powered platform that allows investors to buy tokenized shares in real estate projects, according to a press release. The platform targets both retail and institutional investors with a minimum investment threshold of USD 1.

The assets: An inaugural issuance round is expected to present assets in the UAE’s Centurion developments, as well as in Indonesia, Spain, and Malaysia. Additional projects are set to be announced in the coming weeks, and expansion to Bahrain, Turkey, and South America is planned in later phases.

ICYMI- Zand Bank received approval from Dubai’s VARA last December to launch institutional-grade digital asset custody services. Earlier this year, it partnered with Web3 platform Klickl to streamline financial management, and also signed an MoU with blockchain firm Mantra to support the tokenization of USD 500 mn in real estate assets.

FINANCE-

The Maldives’s government plans to build a USD 8.8 bn financial center with the support of Dubai-based Qatari family office MBS Global Investments, according to a press release. The Maldives International Finance Center (MIFC), set to be completed by 2030, will be located in the capital Male and offer no corporate tax and tax-free inheritance. The center aims to address the country’s debt crisis.

BUSINESS-

Ajman Bank taps Yubi to digitize SME trade finance: Ajman Bank has partnered with Yubi MENA to enhance SME access to trade working capital and supply chain finance through a fully digital platform, according to a press release. The collaboration will activate Yubi’s Enterprise Credit Market platform, enabling Ajman Bank clients to secure corporate loans and financing digitally via its platform.

About Yubi: Founded in 2020 by CEO Gaurav Kumar (LinkedIn), Yubi is valued at USD 1.5 bn and operates a full-stack, interoperable debt platform serving over 17k enterprises and 6.2k investors and lenders. Backed by investors like Peak XV and Insight Partners, it has facilitated USD 16 bn in debt volumes to date.

Chinese exporters are rerouting shipments through third countries in an attempt to avoid the steep US tariffs of up to 145% imposed on incoming Chinese goods, the Financial Times reports. The tactic — known as place-of-origin washing — conceals where shipments actually come from by shipping goods to another country, repackaging them, and then issuing a new certificate of origin before being sent to the target market.

Social media sites in the world’s factory are full of posts advertising export washing services, indicating that this hard-to-quantify issue may be larger than we think. “The US has imposed tariffs on Chinese products? Transit through Malaysia to ‘transform’ into Southeast Asian goods,” the salmon-colored paper quotes one online advert as saying.

Some of these third countries are already fighting back, including South Korea, which uncovered USD 21 mn worth of falsely labeled products — the majority of which came from China — in the last month alone. Vietnam and Thailand are also ramping up efforts to introduce stricter measures to prevent this practice.

But the problem seems to be getting worse, with South Korea’s customs agency “seeing a sharp increase in recent cases…because of the US government’s trade policy change.”

There are also other schemes exporters are using to get around US tariffs, including putting higher cost items with lower cost items in a bid to falsely claim a lower overall shipment cost, a shipping consultant told the paper.

The practice is also causing concern for US importers, as they will be the ones having to pick up the tab if US customs picks up on a mislabeled shipment. One senior executive at a major Amazon seller said they had seen altered origin documents and are now reluctant to work with Chinese suppliers.

MARKETS THIS MORNING-

Asian markets are in the green this morning — the Shanghai Composite is up 0.6% and the Hang Seng is up 0.4%. Korea’s Kospi is closed in observance of Vesak Day and Japan’s Nikkei is closed as the country observes Greenery Day.

THE CLOSING BELL-

The DFM rose 1.0% yesterday on turnover of AED 377.1 mn. The index is up 3.6% YTD.

In the green: National Cement (+7.4%), Commercial Bank of Dubai (+6.9%) and Emirates Reem Investments (+4.0%).

In the red: Agility The Public Warehousing Company (-5.7%), National International Holding Company (-5.1%) and Orascom Construction (-3.4%).

Over on the ADX, the index fell 0.1% on turnover of AED 2 bn. Meanwhile, Nasdaq Dubai was up 0.2%.

UAE, Croatia eye deeper economic ties: Economy Minister Abdulla bin Touq Al Marri met with Croatian Economy and Sustainable Development Minister Ante Šušnjar to discuss expanding bilateral cooperation in tourism, renewables, logistics, and creative industries, Wam reports. The meeting took place during Al Marri’s European tour.

UAE, Cyprus discuss deeper economic ties, water aid: President Sheikh Mohamed bin Zayed and Cypriot President Nikos Christodoulides discussed strengthening bilateral cooperation during a phone call, with a focus on economic and development sectors, state news agency Wam reports.