Happy Tuesday everyone!

Global crude oil prices climbed sharply on late Monday after authorities reported a fire at the Fujairah Petroleum Industries Zone (FOIZ) caused by a drone attack originating from Iran.

Meanwhile, HH Sheikh Hamdan has launched a two-year program to drive self-executing AI across Dubai’s private sector, establishing new incubators and training for business councils. Meanwhile, following the UAE's exit from OPEC, Sultan Al Jaber announced that ADNOC will accelerate 200 billion dirhams in oil-project awards to reach a production capacity of 5 million barrels a day by 2027.

In the wake of developments in the region, we hope everyone stays safe. At this critical moment, it is essential to remain united and follow guidance issued by official authorities from your country.

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Markets

Oil Markets Surge as Drone Strike Triggers Regional Security Concerns

What Is It About?

Global oil prices extended significant gains on Monday following reports of a fire at the Fujairah Petroleum Industries Zone (FOIZ), which authorities attributed to an Iranian drone strike, while maritime incidents off the UAE coast further heightened regional tensions.

US crude futures surged more than $3 per barrel, while Brent crude climbed over $5 as markets reacted to the disruption at the critical petrochemical hub. The Fujairah Industrial Zone, one of the region's largest oil processing facilities, reported the incident around 10pm local time.

"Competent authorities in the Fujairah Emirate confirmed the occurrence of a fire in the Fujairah Industrial Zone resulting from targeting a drone originating from Iran," according to an official statement from the Government of Fujairah Media Office.

Civil Defense teams responded swiftly to contain the blaze, with authorities emphasizing that their efforts remained ongoing. Officials urged the public to rely solely on official sources for information and to avoid circulating unverified reports.

The incident came amid heightened maritime activity in the region. The United Kingdom Maritime Trade Operations (UKMTO) reported two separate fire incidents involving cargo vessels off the UAE coast on the same evening.

One vessel reported a fire in its engine room approximately 36 nautical miles north of Dubai, with all crew members accounted for and safe. In a second incident, another vessel caught fire approximately 14 nautical miles west of Mina Saqr in Ras Al Khaimah. The causes of both maritime fires remain under investigation, with no environmental damage reported thus far.

ADIO Rebrands as ‘Beyond Capital’ to Drive Abu Dhabi’s Falcon Economy Vision

Abu Dhabi is signalling that its next growth chapter is about more than attracting investment.

The Abu Dhabi Investment Office has unveiled its new “Beyond Capital” brand, marking a strategic shift from simply drawing capital into the emirate to activating it at scale across high-priority sectors.

The rebrand aligns with Abu Dhabi’s Falcon Economy vision and reflects ADIO’s growing role in building long-term economic value through sector-specific clusters including SAVI, HELM, AGWA and FIDA.

The focus: creating integrated ecosystems that combine infrastructure, regulation, innovation, talent and supply chains to help businesses not just enter Abu Dhabi, but scale globally from it.

The move underscores Abu Dhabi’s broader ambition to position itself as a global platform for future industries, export growth and resilient supply chains.

It’s less about being a destination for capital and more about becoming a launchpad for global economic transformation.

HH Sheikh Hamdan Announced a New Two-Year Initiative to Move Dubai’s Private Sector Towards Agentic AI

What Is It About?

HH Sheikh Hamdan has introduced a two-year initiative to move Dubai’s private sector toward agentic AI. Unlike basic chatbots, these systems can execute tasks and manage operations without constant human input. The program includes specialized training for Dubai Chamber business councils, the creation of new startup incubators, and dedicated funds to support companies shifting to an AI-first model.

Why It Matters?

This isn't just about new software; it's a move to change how business is done. By helping companies adopt self-executing AI, the government wants to raise productivity and lower costs across the board. It complements a wider goal for the UAE to run 50% of government services on AI within two years, signaling that the entire economy is being built around autonomous technology.

What’s Next?

Watch for the first wave of "AI-native" startups to enter the new incubators. The success of this push will depend on how quickly local businesses can retrain their staff to manage these autonomous systems rather than just using them for simple tasks.

ADNOC Speeds Up AED 200 Billion Investment After Historic Exit from OPEC and OPEC+

What Is It About?

Following the UAE’s exit from OPEC, ADNOC CEO Sultan Al Jaber announced an acceleration of AED 200 billion ($55 billion) in oil and gas project awards. This is part of a larger plan to reach a production capacity of 5 million barrels a day by 2027. By leaving the group, the UAE has regained full control over its output, allowing it to invest and expand based on its own national priorities.

Why It Matters?

Leaving OPEC is a massive shift that allows the UAE to spend its capital more freely. Al Jaber noted that this move isn't against anyone but serves the country’s long-term economic goals. For the energy market, it means the UAE can now respond faster to global demand without waiting for group-wide production quotas, potentially changing the balance of power in global oil pricing.

What’s Next?

The AED 200 billion in awards will roll out between 2026 and 2028. Expect a wave of contracts for local and international engineering firms as ADNOC pushes to hit its 2027 capacity targets. This spending will likely boost the local industrial sector, especially through initiatives that favor UAE-made products and services.

👨‍💻From Smashi Business’ Desk

• Exclusive: Bezos’ $38 Billion “Project Prometheus” AI Play, Which Has a Quiet Gulf Angle

• The Gulf box office is telling a bigger story than just the strong debut of Michael.

• Saudi Arabia’s first Hollywood-scale blockbuster Desert Warrior has opened modestly at the US box office.

• Despite a market cap of just $15.7 million — well below Nasdaq’s $35 million threshold — Swvl Holdings Corp is not on the brink of delisting.

• UK universities under fire after reports of £440k spent spying on pro-Palestine student activity⁠

🔍In other news…

• HH Sheikh Mohammed inaugurates work for Dubai Metro Blue Line tunnels

• Ali al-Zaidi, businessman named Iraq’s prime minister-designate, comes into focus

• Saudi Arabia and UAE to develop new data centres after $2bn foreign investment inflow

• UAE calls for immediate reopening of Strait of Hormuz amid maritime tensions

• US military signals Qatari jet is on track for Air Force One role

🦄 World of Startups

• Dubai gifting marketplace Udora secures $10M

• Saudi fashion platform Aya secures $7m to scale real time production

• Jordan-based Tamatem has acquired Istanbul-founded Playable Factory, strengthening its push into performance marketing and user acquisition.

• Egypt’s Lucky Raises USD 23M Series B. Its Consumer Credit Model is Expanding Into North Africa

• “We Got Funded!” Maison Safqa Raises US$620,000 in Pre-Seed Funding to Expand Luxury Flash-Sale Platform Across GCC

• Via Separations, US-based deeptech startup, raised $36M in funding from Aramco Ventures (Saudi), and other global investors.

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