Gulf

1. Iran to ‘administer’ Hormuz
2. Qatar’s deadly gas tragedy
3. MGX raises $50B in AI push
4. Gulf markets rally…
5. … but remittances down
6. MAF’s big Cairo project

The buildup to WrestleMania.

Iran seeks lasting role in Hormuz

As talks in Switzerland between Iran and the US turn to technical matters in search of a final deal, two conflicting signals are emerging from the Gulf: More ships are moving through the Strait of Hormuz, yet Tehran is still angling for a permanent, monetized role in the waterway.

Iran’s chief negotiator said Tehran will “administer” Hormuz, while Lloyd’s List reported that vessels may be required to buy Iranian insurance, in effect creating a toll system. At the same time, traffic is recovering: Several ships, including fully laden supertankers, have recently transited the strait, and Kuwait has issued a tender requiring buyers to collect naphtha cargoes from its ports, Bloomberg reported.

Meanwhile, Iran’s negotiating team traveled to Oman immediately after the Switzerland talks to meet with the sultan and discuss a new framework for Hormuz. Muscat has repeatedly affirmed its support for free navigation through the chokepoint. Separately, US Secretary of State Marco Rubio is meeting with counterparts in Bahrain, Kuwait, and the UAE over the next three days as the Trump administration looks to shore up support for its Iran deal.

At least 13 dead in Qatar gas blast

Qatar’s Energy Minister Saad Sherida Al Kaabi said 13 Indian and Pakistani workers died in Sunday’s blast at a domestic gas-processing facility in Ras Laffan. Dozens more were injured in the explosion — one of the deadliest oil and gas accidents in the Gulf in more than two decades — which officials say will not affect the country’s efforts to restart LNG exports. While the Barzan plant sustained the most extensive damage, the explosion also caused injuries and material damage at some nearby facilities, according to a person with direct knowledge of the situation.

— Mohammed Sergie

MGX secures $50B for AI deals

Abu Dhabi’s MGX has raised around $50 billion for AI investments, making it one of the biggest global funds dedicated to the technology. The firm raised the money from regional sovereign wealth funds and global investors, Bloomberg reported. The scale of the fund, and the involvement of multiple international partners, illustrates Abu Dhabi’s ambition to use AI to help diversify its economy, and its credibility as an investor.

MGX was launched in 2024 and is chaired by Sheikh Tahnoon bin Zayed, the UAE’s national security adviser. It was initially backed by two other Abu Dhabi funds, Mubadala and G42, and has already invested in funding rounds for OpenAI, xAI, and Anthropic.

Peace talks prompt a market rally

The more positive diplomatic atmosphere between Iran and the US has given regional stock markets a lift — offering a timely boost a few weeks before financial results for the second quarter of the year start to emerge.

The interim deal between Tehran and Washington prompted an uptick over several days in the Abu Dhabi and Dubai markets. Dubai’s DFM General Index broke through the 1 trillion dirham ($272 billion) market capitalization barrier on June 17; the following day, both it and Abu Dhabi’s ADX General Index hit their highest levels since the war broke out. Although the momentum has since faded, the markets have held onto most of the gains.

Both UAE markets are still below their prewar levels, as are the exchanges in Bahrain and Qatar, but bourses in Kuwait, Oman, and Saudi Arabia are above that threshold. Two big factors are likely to dictate the future direction of travel: Progress in the US-Iran talks could prompt further gains, but Q2 results could contain some unwelcome surprises about the extent to which the conflict has harmed economic activity.

War hits Gulf remittances

The Iran war has put billions of dollars in remittances from the Gulf at risk, potentially dealing a major blow to some of the world’s poorest nations as they grapple with the economic consequences of the conflict. The roughly 30 million foreign nationals working in the region — most from Africa and South Asia — sent home an estimated $124 billion in remittances in 2024. However, those have slumped since the war began: Kenya’s central bank said cash transfers from the Gulf had dropped by 18% in April compared to the previous month, while the average transfer value on Onafriq, one of Africa’s largest digital payments platforms, fell significantly. “There are clear signs of financial strain,” Onafriq’s CEO told Bloomberg.

MAF to build massive New Cairo project

One of Dubai’s largest family-owned conglomerates signed a deal with an Egyptian state-linked developer to build a $3.1 billion real-estate project in Egypt’s New Cairo district, days after a visit by the UAE president to the country. Dubai’s Majid Al Futtaim, which owns some of the region’s largest malls and retail brands, signed a deal with Egypt’s MIDAR for Investment and Urban Development to build around 6,000 residential units, hotels, and commercial spaces.

UAE government-linked firms have provided billions of dollars of investment to shore up the Egyptian economy in the past few years, most notably a 2024 agreement to invest $35 billion to develop Ras El Hekma into a Mediterranean tourist destination. Egypt has responded with help in the other direction, sending a squadron of fighter jets to the UAE during the Iran war as part of efforts to demonstrate support.

— Matthew Martin

Wall Street fell in love with your life insurance. Should you be worried? Anant Bhalla had a front-row seat to Wall Street’s transformation of the life insurance industry. Now, he believes it has gone too far. On this week’s episode of Compound Interest, presented by Amazon Business, the former CEO of American Equity joins Liz and Rohan to discuss the rise of “zombie” insurers, ratings shopping, and what comes next as life insurance has evolved into a multitrillion-dollar investment engine.

Deals

• Qatar Investment Authority has backed two deals in Europe: participating in a $380 million funding round by Dutch semiconductor technology company Nearfield Instruments, and supporting German utility RWE’s acquisition of €3.6 billion ($4.1 billion) worth of shares in electricity grid operator Amprion.
• A high-powered meeting of Abu Dhabi officials reviewed investment opportunities emerging from this year’s geopolitical turmoil, and the performance of oil company ADNOC and sovereign wealth funds ADIA, L’IMAD Holding, and Mubadala. The meeting of the emirate’s Investment Affairs Council was chaired by Deputy Ruler Sheikh Tahnoon bin Zayed, with Vice President Sheikh Mansour bin Zayed, and Crown Prince Sheikh Khaled bin Mohamed bin Zayed also at the table. — The National

Healthcare

• Aliph Capital, an Abu Dhabi-based private equity firm, has agreed to invest in medical school owner Al Rayan National Co. to enhance medical education in Saudi Arabia. The financing will be used to fund partnerships with foreign universities, upgrade facilities, and expand the range of specializations on offer in the kingdom.

Sports

• Newcastle United, the soccer team controlled by Saudi Arabia’s Public Investment Fund, held talks with Arctos Partners about a potential investment in the club, as part of plans to raise funding for the redevelopment of its stadium or the construction of a new one. — Bloomberg

Saudi Arabia will host WWE’s Night of the Champions this weekend, one of the first big international sports events to come to the country since the Iran war. The meet, which will be followed by WrestleMania 43 in Riyadh in January, comes as Saudi Arabia continues its drive to host major global entertainment and sports events. WWE has made Saudi Arabia a key part of its international expansion, with the kingdom hosting many WWE events outside the US for the first time. One of the biggest draws confirmed for June 27 in Riyadh is six-times world champion Seth Rollins against Bron Breakker in a steel cage match.