Happy Thursday everyone!

Israel-Iran Conflict has entered day 7 and oil is hovering at $72/barrel, a safe haven that is gold is at $3400+/ounce, while the Middle Eastern stock markets are in the red.

Big stories for today: Flynas' IPO debut on Saudi's Tadawul got off to a volatile start, reflecting both the high demand and risks involved in public offerings. Meanwhile, the UAE is making waves by pledging a massive $440 billion into U.S. energy to meet the growing demand for power driven by AI. Lastly, the UAE continues to attract hedge funds, with more firms moving operations to Dubai and Abu Dhabi, drawn by tax incentives and a booming market for tech and finance.

But before that: For quick daily updates, follow us on Instagram, and you can watch our Smashi Business Show live every weekday from 10AM onwards (UAE time). Also, you can join our Whatsapp channel to receive updates from the business world.

Flynas IPO Debut: Volatile Start for Saudi Airline on Tadawul

What is it about?

• Flynas, Saudi Arabia’s low-cost airline, made its trading debut today, June 18, 2025, on Tadawul, the Saudi Stock Exchange.

• The airline's shares were priced at SAR 80 each, the top end of the IPO's indicative range.

• The stock opened at SAR 77.50, slightly below the IPO price, and experienced significant price fluctuations throughout the day.

Why it matters

• Despite its volatile debut, Flynas' IPO was oversubscribed by nearly 350%, showing strong investor interest.

• The stock experienced active trading, with 27,657,621 shares traded and a total value of SAR 2.18 billion.

• The debut marked the largest IPO in the Middle East this year and the first airline IPO in the region in nearly two decades.

• The mixed performance highlights the ongoing market challenges, with broader regional instability and geopolitical tensions influencing investor sentiment.

What’s next

• Flynas plans to use the proceeds from its IPO to expand its fleet and services, focusing on enhancing travel options for Hajj and Umrah pilgrims.

• The airline's future growth is aligned with Saudi Arabia's Vision 2030, which aims to boost tourism and diversify the economy.

• Investors and analysts will closely monitor Flynas' performance in the coming weeks to gauge investor confidence in the company and its long-term prospects.

Markets

UAE Pledges $440B Into US Energy to Support AI Demand

What is it about?

• Abu Dhabi National Oil Company (Adnoc) CEO Sultan Al Jaber announced plans to invest $440 billion into the U.S. energy sector over the next decade.

• Al Jaber, who is also the UAE’s Minister of Industry and Technology, revealed this at the Atlantic Council’s Global Energy Forum in Washington.

• The investment aims to address the growing demand for energy driven by the rapid expansion of artificial intelligence (AI) in the U.S.

• AI is increasing the need for power, with projections estimating a demand for 50 to 150 gigawatts of new energy capacity in the next five years.

• Al Jaber emphasized that adapting the energy grid to meet the needs of AI-driven technology is a major challenge and opportunity.

Why it matters

• The U.S. is facing a massive power demand surge due to AI, and many existing grids are not prepared for the load.

• Al Jaber stressed that modernizing power generation and distribution is key to supporting the growing AI infrastructure.

• Investments of up to $300 billion per year are needed to address bottlenecks in energy infrastructure, with a significant portion of global energy capacity waiting for grid connections.

• The UAE’s commitment to investing in both traditional and renewable energy sources—ranging from fossil fuels to nuclear—supports the global transition to cleaner energy while addressing growing power needs.

• Al Jaber’s remarks come at a time of heightened regional tensions, underscoring the UAE's stance for “de-escalation and diplomacy” amidst conflicts like the Israel-Iran confrontation.

What’s next

• XRG, the global investment arm of Adnoc, plans to expand its investments in U.S. energy, with ongoing projects such as the largest LNG plant in Texas.

• Adnoc’s renewable energy subsidiary, Masdar, has already developed 5.5GW of energy production and storage capacity across the U.S.

• The UAE has opened an office in Washington, D.C., to lead these new investment initiatives and strengthen its ties with the U.S.

• UAE officials, including Mariam Almheiri, CEO of 2PointZero, emphasized the urgency of scaling up AI infrastructure quickly to meet the growing demand.

• The UAE’s focus is on investing across the entire AI supply chain, from critical minerals to cable manufacturing, and the country is also eyeing a stock market listing for 2PointZero later this year.

• The UAE's involvement in the U.S. energy sector signals the country's increasing role in shaping global energy and tech infrastructure.

Why Hedge Funds Are Moving to Dubai and Abu Dhabi

Originally reported by Bloomberg

In late 2023, Danny Yong, a hedge fund manager, faced an unexpected problem. He was trying to hire a top trader for his firm, Dymon Asia Capital, based in Singapore. The problem wasn’t that the trader wasn’t interested in working for him—it was that the trader wanted to move to a rival firm in Dubai instead.

This made Yong realize that if talented traders wanted to move to Dubai, he needed to follow them. So, Dymon opened an office in Dubai in October 2023. They even rented a bigger space and set a goal of hiring 10 new people by the end of the year.

What Is a Hedge Fund?

Before we dive into why these firms are moving to Dubai, let’s explain what a hedge fund is. In simple terms, a hedge fund is a type of investment firm that pools money from rich people or big institutions to try to make more money. They use high-risk, high-reward strategies to invest in things like stocks, bonds, and real estate. Hedge funds are usually not available to regular people because they require a lot of money to get involved.

Why Are Hedge Funds Moving to the UAE?

Dubai and Abu Dhabi in the UAE have become hot spots for hedge funds, and there are a few reasons why:

• Tax Benefits: One of the biggest attractions is that the UAE doesn’t charge personal income tax. That means hedge fund workers don’t pay taxes on the money they earn, unlike in cities like London or New York.

• A Rich Lifestyle: Dubai and Abu Dhabi offer a lifestyle that appeals to wealthy professionals, with luxury shopping, top restaurants, and year-round sunshine.

• A Strategic Location: The UAE is located in a perfect spot that connects both Eastern and Western time zones. This makes it easier for hedge funds to do business with both Asia and Europe.

Even though there are political risks in the region, like the tensions between Israel and Iran, many hedge funds are still making the move. They’re being pulled by the UAE’s benefits but also pushed by their workers, who are demanding the chance to move there.

Why Are Hedge Funds Flocking to the UAE?

For years, cities like London and New York have been the go-to places for hedge funds. But now, the UAE is catching up fast. In fact, the UAE has attracted a large number of hedge funds, especially from places like London. Many traders from India and other countries find the UAE a more attractive destination due to its proximity to home, zero taxes, and more relaxed rules.

One of the reasons this is happening is that, after the pandemic, the UAE opened its doors when many other countries were still in lockdown. Since then, more and more hedge funds have decided to move, making Dubai and Abu Dhabi major players in the finance world.

What’s the Future for the UAE?

Even though the UAE is attracting a lot of hedge funds, it’s not yet the global financial hub like New York or London. The region still faces some challenges, like high office rents and finding enough space to grow. Some hedge funds are also wondering if the country can provide enough investment opportunities for them to fully thrive.

But overall, most people believe the UAE’s rise as a financial center is not a passing trend. As more hedge funds open offices in Dubai and Abu Dhabi, the country is slowly becoming a place that many hedge funds can’t afford to ignore.

What’s Next?

The future looks bright for the UAE, as more firms are expected to set up offices in Dubai and Abu Dhabi. The country’s tax benefits, prime location, and high-end lifestyle continue to pull in hedge funds and investors. However, it’s still uncertain if the country will become a permanent home for the world’s biggest financial firms, or if they’ll return to places like London or New York in the future.

For now, the UAE is thriving as a finance hub, but how long it can sustain this growth remains to be seen. Still, it’s clear that hedge funds are not only moving there for the money — they’re doing it because the country offers a new lifestyle and opportunity that’s hard to resist.

🔍From Smashi Business’ Desk

• "Take the money." — That’s the no-nonsense advice from Hasan Haider, Managing Partner at Bahrain’s +VC.

• Kris Fade just revealed his healthy snack brand Fade Fit has grown 33% year-to-date.

• Emirati billionaire Khalaf Al Habtoor calls for peace as tensions escalate between Iran and Israel.

• Dreamers: From selling lashes with her sisters to building a million-dollar fragrance empire — Mona Kattan is reshaping what modern luxury smells like.

🔍In other news…

• Dubai Billionaire Hussain Sajwani Doubles Down On Indonesia With $2.3 Billion Data Center Project.

• Careem has decided to exit Pakistan next month.

• DWTC events made $6 Billion for Dubai economy.

• Boeing equipped to meet historic Gulf orders.

• Saudi Arabia, France discuss $2.6bn aviation sector investment potential amid flurry of deals.

• Energy security is not a luxury but key to inclusive growth, says Saudi minister.

• UAE advances to 5th globally in 2025 IMD Competitiveness Ranking: Sheikh Mohammed reflects on nation’s progress.

• Aramex uses AI to teach customers how to spot fake messages.

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