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Dubai has begun trial operations of its pumped-storage hydroelectric plant in Hatta, delivering electricity into the city’s grid. The facility, which has already generated more than 17,900 MWh during testing, will free up surplus power beyond Hatta’s 39 MW local demand for export. Emirates 247 cites HE Saeed Mohammed Al Tayer, MD & CEO of the Dubai Electricity and Water Authority, confirming the start of electricity exports from the plant during his site visit.

The Hatta plant boasts a 250 MW generation capacity, 1,500 MWh of storage, and is designed to last up to 80 years—backed by a Dh1.42 billion investment. Underground construction includes two 110-tonne water valves, a command-and-control centre and an upper dam spanning 210,000 sqm, built with compressed concrete walls measuring 72 m and 37 m high.

DEWA’s scheme aligns closely with emirate-wide initiatives under the Clean Energy Strategy 2050 and the Net-Zero Carbon Emissions Strategy 2050, which aim for 100 percent clean energy supply by mid-century.

Trial operations of this pioneering project began earlier in the year, with operational tests launched in January 2025. DEWA confirmed the plant was 96.82 percent complete around that time and anticipated beginning energy exports in April 2025.

The hydropower station employs a cyclic system: during off-peak hours, clean electricity from the Mohammed bin Rashid Al Maktoum Solar Park is used to pump water from the lower reservoir to the upper dam. When demand spikes, water flows back through a 1.2 km tunnel, converting stored potential energy into kinetic energy to drive turbines. The conversion process delivers electricity to the grid in as little as 90 seconds, with a turnaround efficiency of 78.9 percent.

Hatta lies roughly 140 km south-east of central Dubai in the Hajar Mountains. The project includes an innovative design featuring two 125 MW Francis-type pump turbines capable of reversible operation—a technical solution by a consortium led by ANDRITZ Hydro, STRABAG and ÖZKAR, contracted in 2019.

This pumped-storage facility is the first of its kind in the Gulf region and a flagship example of how heat-resistant hydropower systems may outperform large-scale battery storage in desert climates.

During his visit, Al Tayer toured the station’s subterranean power station, inspected the upper dam’s compressed concrete walls, and oversaw functional tests of the pumping and generation mechanism. The station’s speedy response time and storage efficiency are designed to bolster Dubai’s grid resilience while reducing reliance on fossil fuel generation.

The United Arab Emirates registered some US$25.4 billion in mergers and acquisitions through the first six months of 2025, making up approximately 43 per cent of all M&A transactions across the Middle East and North Africa—which totalled US$58.7 billion during the period, according to data from EY’s latest MENA M&A Insights report.

MENA deal-making demonstrated robust momentum in the first half of 2025, with 425 transactions reflecting a 31 per cent increase in volume and a 19 per cent rise in overall value compared with the same period in 2024, as EY’s analysis shows.

Cross-border activity surged, accounting for 55 per cent of all deals by number and 78 per cent by value—marking the highest cross-border level in the past five years. Key sectors driving these overseas transactions included chemicals and technology, which together represented two-thirds of cross-border deal value. Among the most significant was the US$16.5 billion deal in which Borealis AG and OMV AG acquired a 64 per cent stake in Borouge plc.

Domestic deal-making remained energetic too. Homegrown transactions constituted 45 per cent of all deals by volume and 22 per cent of the total value, amounting to 192 deals worth US$12.8 billion—an impressive 94 per cent year-on-year rise in value. The technology and diversified industrial products sectors were prominent in this category. A standout deal was AI and cloud services firm Group 42’s acquisition of a 40 per cent stake in Khazna Data Centres for US$2.2 billion.

EY’s MENA EY-Parthenon Leader, Brad Watson, emphasised that the mid-year results underline how resilient and dynamic the region’s M&A market is. He pointed to sustained appeal for investors, underpinned by stable oil prices, infrastructure expansion and a strategic emphasis on growth industries such as technology, chemicals, and industry. I n particular, he noted that the UAE continues to attract significant global capital, thanks to its strong regulatory environment and push for economic diversification, alongside growing collaborative ties with Europe, Asia, and North America.

When compared with mid-2024 performance, the jump is clear. In the first half of last year, the MENA region recorded 321 deals valued at US$49.2 billion. That represented only a modest 1 per cent increase in volume and 12 per cent growth in value over the prior year. Deal values in the UAE and the Kingdom of Saudi Arabia accounted for US$9.8 billion out of that total.

Looking at the broader picture, 2024 closed with 701 MENA M&A deals worth US$92.3 billion, reflecting a 3 per cent rise in deal volume and 7 per cent gain in value compared with 2023. Cross-border transactions were the primary engine, making up 52 per cent of deal volume and 74 per cent of value.

The UAE’s growing prominence in M&A stems from both deliberate policy reforms and strategic positioning. Domestic investors, notably sovereign wealth funds and government-related entities such as ADIA and Mubadala, have been highly active across both home-market and international transactions. At the same time, global investors have responded favourably to the region’s economic diversification efforts, regulatory clarity, and infrastructural thrust.

China’s reliance on fossil fuels has been steadily declining despite increasing energy demand, marking a significant shift in the nation’s energy landscape. Coal and gas consumption saw a dip in 2025, even during a scorching July, as the government continues to prioritise clean energy sources. This is a clear sign that China’s aggressive push towards renewable energy and energy efficiency is beginning to take effect, even as the country faces unprecedented challenges in meeting its growing power needs.

Data from the National Energy Administration revealed that, in the first half of 2025, coal usage in the energy mix fell by 5% compared to the same period last year, while natural gas consumption also showed signs of contraction. The most striking development came in the power sector, where a surge in renewable energy production, particularly from solar and wind sources, helped to reduce dependency on fossil fuels.

China’s power demand soared during the summer, driven by an intense heatwave that gripped much of the country. However, the country was able to meet this surge without resorting to its usual fossil fuel-heavy energy production methods. This is partly due to the rapid expansion of its renewable energy capacity, which reached new records in both wind and solar power generation in 2025. The NEA reported that China’s total renewable energy capacity crossed 1,200 gigawatts for the first time, a crucial milestone that reflects the country’s commitment to a cleaner and more sustainable energy future.

One key driver of this change is China’s substantial investment in renewable infrastructure. The government allocated over $60 billion to clean energy projects in 2025, focusing heavily on expanding solar farms and offshore wind installations along the coast. At the same time, China has been making significant strides in energy storage technologies, which are crucial for maintaining grid stability as renewable sources, particularly solar, are intermittent.

While China remains the world’s largest coal producer and consumer, the shift towards clean energy is undeniable. The country’s coal-fired power plants, once the backbone of its energy sector, are now being gradually phased out or repurposed for lower-carbon technologies. The transition has been especially evident in regions like Inner Mongolia, where coal consumption has sharply decreased as wind and solar energy projects have taken root.

Industry experts point to a combination of factors driving this shift. First, there is the national government’s ambitious target of reaching carbon neutrality by 2060. Second, the economic pressures on coal mining companies, many of which are facing increasing scrutiny over environmental and public health concerns, are playing a role in reducing coal’s dominance. Moreover, local governments have introduced incentives for businesses to adopt cleaner energy solutions, further encouraging the transition away from fossil fuels.

The reduction in coal and gas use has also been bolstered by the rise of electric vehicles, which now account for a significant portion of the energy demand in urban centres. China’s push to become a global leader in EV manufacturing has contributed to the decrease in fossil fuel consumption in the transportation sector, where electricity now plays an increasingly prominent role.

However, while the momentum towards renewable energy is clear, challenges remain. One pressing issue is the reliability of the grid, especially in remote areas where renewable generation can be less consistent. The government is addressing this concern with the expansion of transmission infrastructure designed to transport power from renewable-heavy regions like the north and west to energy-hungry areas like the east and south.

While the clean energy push is a notable success, fossil fuels still account for a large portion of China’s energy mix. This means that the country remains vulnerable to price fluctuations in global energy markets, as seen in 2024 when rising global gas prices temporarily hindered efforts to reduce fossil fuel reliance.

Kotak Mahindra International Limited, a subsidiary of Kotak Mahindra Bank, has made a significant stride in expanding its footprint in the UAE’s financial sector. The firm has officially received a licence from the Securities and Commodities Authority, granting it the ability to manage investments and portfolios within the emirate’s capital markets. This makes KMIL the first Indian financial institution to obtain such a licence, opening the door to a wider range of investment opportunities in the region.

The SCA’s approval allows KMIL to operate in a competitive, high-growth financial market that is rapidly evolving. As a result, the firm is now positioned to offer both retail and institutional clients a broader spectrum of services, ranging from portfolio management to investment advisory. This move is expected to enhance the firm’s existing capabilities and leverage the UAE’s status as a global financial hub.

KMIL’s entry into the UAE market signifies a strategic effort to tap into the growing demand for professional investment services in the region, especially as the Middle East continues to be a lucrative market for global financial players. The UAE’s business environment is becoming more conducive to foreign investments, with its forward-thinking regulatory framework and attractive tax incentives drawing a significant number of international financial institutions.

The SCA’s move to issue such licences aligns with the UAE’s broader economic diversification strategy. By encouraging international firms to set up operations in the country, the UAE government aims to fortify its capital markets and establish itself as a leading financial centre in the region. The decision also underlines the country’s commitment to maintaining a stable and robust regulatory environment for financial services.

Kotak Mahindra’s strategic expansion comes at a time when global interest in the UAE’s financial markets is surging. The country’s strategic location, tax-friendly policies, and world-class infrastructure have led to an influx of capital from around the world, positioning it as an ideal base for firms like Kotak Mahindra International to service clients in both the Gulf Cooperation Council region and beyond.

The company’s move also reflects a growing trend of Indian financial institutions seeking to diversify their portfolios and expand internationally. With this licence, Kotak Mahindra International joins a select group of global players that have made the UAE their home for managing investments and portfolios. This development underscores the increasing prominence of the UAE as a financial epicentre.

KMIL’s parent company, Kotak Mahindra Bank, has long been a key player in India’s banking and financial services landscape. With its new licence, the bank’s international arm can now offer its expertise to a new set of clientele while taking advantage of the burgeoning investment opportunities in the Middle East. The UAE’s progressive economic policies and its positioning as a global financial hub make it an attractive destination for firms looking to serve the broader Middle Eastern, African, and Southeast Asian markets.

Industry experts note that the SCA’s licence is a vital step in enhancing the overall appeal of the UAE’s financial services sector. The SCA, tasked with overseeing the functioning of capital markets, is committed to fostering a conducive environment for businesses to thrive. By offering such licences to international firms, the authority is sending a strong signal about its readiness to support the financial community and encourage further investments into the UAE economy.

CryptoQuant’s Net Unrealized Profit/Loss is registering what appears to be a third unrealised profit peak within the current market cycle. NUPL, defined as the ratio of to market cap, gauges whether investors on average hold paper profits or losses. Historically, elevated NUPL levels have indicated that many participants are in profit, increasing the likelihood of profit-taking and potential market corrections.

Data suggests this third ascent to a profit peak is being driven by renewed institutional interest. Each successive wave, however, is yielding diminishing returns. While the first wave may have generated outsized gains, the latest surge appears more measured, implying a tapering in profit margins. The attenuated return profile reduces the odds of sharp rallies, but it may extend the overall bull phase without dramatic peaks.
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Institutional Flows: A Double-Edged Sword

Historical patterns show that institutional capital can provide multi-month tailwinds to markets. In contrast to retail-driven frenzies, institutions often enter with larger stakes and timelier strategies. That said, when profit potential diminishes, institutions tend to adjust exposures, leading to sustained but less explosive outcomes.

This current cycle appears to reflect that dynamic: investors remain optimistic and engaged, but gains are less pronounced. Markets may therefore advance steadily rather than sprinting upwards.
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Trend Implications and Strategic Outlook

The attenuated profit peaks highlight an evolving sentiment landscape. Participants seem less certain of outsized moves, potentially tempering speculative excess. As a result, volatility could moderate, favouring gradual appreciation over abrupt rallies.

Yet, this environment may also reward disciplined holders and strategic inflows. Without the pressure of sharp peaks, long-term investors may deepen positions across ranges, while new entries proceed with caution.
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