Happy Monday everyone!

The UAE Supreme Court has barred banks from charging compound interest, ruling total interest cannot exceed the loan’s principal — a major win for borrower protection. Emirates NBD will invest $3.05 billion for a 60% stake in India’s RBL Bank, marking the largest foreign investment in India’s financial sector and strengthening cross-border banking ties. Meanwhile, Lana Sawiris, daughter of billionaire Naguib Sawiris, called Moniify’s pre-appointment layoffs “unfair,” after nearly 100 staff were dismissed under former CEO Michael Peters.

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UAE Supreme Court Bans Compound Interest, Capping Total Bank Interest at Loan Value

🔹 What Is It About

The UAE’s Federal Supreme Court has ruled that banks cannot charge compound interest on loans, reaffirming that total interest payable must not exceed the original loan amount. The judgment overturns a prior appellate decision that required a borrower to pay Dh1.55 million on a Dh700,000 loan, citing unlawful accumulation of interest. While banks may continue to apply contractual or market-rate interest on outstanding balances before account closure, only simple interest is allowed thereafter.

🔹 Why It Matters

This ruling strengthens borrower protections and sets a landmark precedent for the UAE’s financial sector, ensuring fairer lending practices and greater transparency. It also aligns with the UAE’s long-standing approach of balancing financial innovation with consumer protection, potentially impacting how banks structure personal and business loan products going forward. Analysts note that it could influence credit risk management and profit models across local lenders.

🔹 What’s Next

The case has been sent back to the Court of Appeal for reconsideration under the new interpretation. Financial institutions are expected to review their loan agreements and interest calculation methods to ensure compliance. Regulators may issue further guidance or circulars to standardize implementation across the banking sector.

Emirates NBD to Buy 60% of India’s RBL Bank in $3 Billion Deal

🔹 What Is It About

Dubai’s largest bank, Emirates NBD, will invest $3.05 billion to acquire a 60% stake in India’s RBL Bank, marking the largest foreign investment in India’s financial sector. The deal includes a mandatory open offer for up to 26% of RBL’s public shares, as required under Indian takeover rules. Once finalized, Emirates NBD’s India branches will merge into RBL Bank, strengthening the latter’s balance sheet and Tier-1 capital ratio.

🔹 Why It Matters

The move deepens the UAE’s financial footprint in India, reinforcing ties built through the 2022 CEPA trade pact. It follows similar Gulf investments, including Abu Dhabi’s IHC $1B deal for Sammaan Capital. The acquisition positions Emirates NBD to tap into India’s fast-growing banking sector and support trade and infrastructure projects across the India–Middle East–Europe Economic Corridor (IMEC).

🔹 What’s Next

The merger will enable RBL to expand its branch network and customer base, while Emirates NBD gains a stronger foothold in South Asia. Analysts expect this deal to accelerate Gulf–India financial integration and set a precedent for future cross-border banking investments.

‘It’s Unfair to My Father’: Lana Sawiris Breaks Silence on Moniify Layoffs

🔹 What Is It About

Lana Sawiris, daughter of Egyptian billionaire Naguib Sawiris and CEO of Dubai-based media startup Moniify, has publicly addressed the company’s mass layoffs for the first time. In an interview with Noorhan Abusamra, she called the situation “unfair” to both employees and her father, saying, “He would never have allowed something like this to happen. I just think the wrong people were trusted.” Nearly 100 employees, including Moniify’s entire newsroom, were dismissed under former CEO Michael Peters, who had previously co-founded Euronews with Naguib Sawiris.

🔹 Why It Matters

The remarks shed new light on one of the region’s most controversial media shakeups. Launched in late 2024 with $50 million in funding and a glitzy debut at the Museum of the Future, Moniify’s rapid rise and sudden layoffs highlight the volatility of venture-backed media in the Middle East — where aggressive scaling often precedes painful corrections.

🔹 What’s Next

Since taking charge in March 2025, Lana Sawiris has repositioned Moniify with a video-first strategy focused on financial literacy for Gen Z audiences. Analysts are watching whether her leadership can restore the platform’s credibility and turn the brand into a sustainable digital media player in the Gulf.

👨‍💻From Smashi Business’ Desk

• Sinner Wins $6 Million at Six Kings Slam in Riyadh as Saudi Sports Investments Hit New Heights.

• UAE’s Hadban Twins Among First 25 Creators Honoured With Instagram Rings in New York.

• Turki Al-Sheikh Teases ‘Big Surprises’ With Shah Rukh Khan, IShowSpeed, and Global Stars Following $1.07B Entertainment Deals.

• Uptown Dubai has officially sold out, DMCC Chairman announced.

• Saudi Arabia’s SSC Channels Go Off Air After Losing Football Rights to Thmanyah.

• Dubai-based Huda Beauty founder Huda Kattan condemned Israeli forces after reports of Greta Thunberg’s mistreatment in detention, calling them “sick people” in a strongly worded Instagram post.

🔍In other news…

• Saudi Arabia in Advanced Talks for Landmark U.S. Defense Pact.

• Dubai Court Slams NMC Founder’s ‘Parade of Lies,’ Orders BR Shetty to Repay Dh168.7m.

• Saudi Industrial Free Zones Target $27 Billion in New Investments.

• Rebuilding Gaza Faces an $80 Billion Logistics Hurdle.

• IMF Says Lebanon Loan Agreement Will Take Time to Conclude.

🏦 Crypto Corner

• Crypto data reveals UAE has mined bitcoins worth $700m

• Michael Saylor — Executive Chairman of MicroStrategy and one of Bitcoin’s most vocal corporate advocates — will make his first-ever appearance in the UAE at Bitcoin MENA in Abu Dhabi.

• Hut 8, part of a American BTC which is partially owned by Donald Trump Jr. and Eric Trump, Gets Approval to Operate in Dubai Financial Hub.

• Abu Dhabi Judicial Department now accept AE Coin.

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