News related to
business

The UK Treasury has confirmed it will not pursue the establishment of a national cryptocurrency reserve, diverging from the approach taken by the United States. Instead, the government will focus on implementing a comprehensive regulatory framework for digital assets and exploring the issuance of sovereign debt via blockchain technology.

Treasury Secretary Emma Reynolds stated that creating a crypto reserve is not aligned with the UK’s strategic objectives. The emphasis will be on fostering innovation within a regulated environment, ensuring consumer protection, and maintaining financial stability.

To this end, the UK government has introduced draft legislation aimed at regulating cryptocurrency exchanges, dealers, and agents. These regulations will require crypto firms operating in the UK to adhere to standards for transparency, consumer protection, and operational resilience. The legislation is expected to be finalised by the end of 2025.

The Financial Conduct Authority plans to prohibit retail investors from borrowing funds, including via credit cards, to purchase cryptocurrencies. This measure is designed to protect consumers from the high risks associated with crypto investments. The FCA is also considering implementing credit checks and investment experience assessments for consumers involved in crypto lending and borrowing.

In a move to modernise the UK’s financial markets, the government is exploring the issuance of “digital gilts” on the blockchain. This initiative aims to enhance the efficiency and transparency of the debt issuance process. The Digital Securities Sandbox , launched jointly by the Bank of England and the FCA, will facilitate the testing of such innovations within a regulated environment.

The UK is also working closely with the United States to align regulatory approaches to digital assets. This collaboration includes discussions on a regulatory “sandbox” for digital securities and the exemption of overseas stablecoin issuers from UK regulations, provided they comply with equivalent standards in their home jurisdictions.

Industry leaders have expressed support for the UK’s approach, highlighting the importance of clear and forward-looking regulation to stimulate innovation and growth. They commend specific measures such as the proposed stablecoin regime and the UK-US regulatory sandbox, which are seen as steps towards establishing the UK as a global hub for digital assets.

While the UK government is accelerating efforts to develop a clear definition of cryptoasset staking and to establish a taxonomy of different staking business models, it does not intend to bring stablecoins into UK payments regulation at this time. This decision is based on the current use cases and aims to avoid placing additional regulatory burdens on certain stablecoin activities.

Capital A Berhad, the parent company of budget airline AirAsia, is preparing for a secondary listing on the Hong Kong Stock Exchange, aiming to raise at least $200 million. This move is part of a broader strategy to access deeper pools of capital in Greater China and to support the company’s ongoing financial restructuring.

The proposed listing follows a series of significant financial maneuvers by Capital A, including a $226 million private placement completed in March 2025. This placement featured a $100 million investment from Saudi Arabia’s sovereign wealth fund, with additional contributions from investors in Singapore and Japan. These funds are intended to bolster the company’s capital base and facilitate its exit from Malaysia’s financially distressed PN17 classification.

Capital A has also secured a $443 million revenue bond, with $200 million provided by Ares Management Corp and Indies Capital Partners. This financing is earmarked for reactivating aircraft grounded during the pandemic and refinancing existing lease liabilities, thereby strengthening the company’s balance sheet.

The company is undergoing a significant restructuring, including the sale of its aviation business to long-haul affiliate AirAsia X. This consolidation aims to unify short and long-haul operations under a single AirAsia brand, streamlining operations across Malaysia, Thailand, Indonesia, the Philippines, and Cambodia. The merger is expected to create a new listed entity valued at approximately $1.42 billion.

Capital A’s financial performance has shown signs of recovery, with a net profit of RM2.01 billion reported in the third quarter of 2024, partly due to foreign exchange gains. The company anticipates a return to profitability in 2025, following a loss of $106.5 million in 2024 attributed to one-off forex losses.

The Hong Kong listing is seen as a strategic move to tap into the region’s revitalized equity markets and attract mainland Chinese investors. Capital A is reportedly close to appointing an international investment bank to advise on the listing structure and process, pending internal reviews and regulatory approvals.

CEO Tony Fernandes has emphasized that the company’s financial uncertainties are linked to pending milestones rather than underlying business strength. He remains confident in completing the regularization and restructuring efforts by June 2025.

As part of its commitment to transparency, Capital A has announced plans to publish internal business targets alongside quarterly results. This initiative aims to provide investors with a clearer picture of the company’s financial outlook and progress toward its strategic goals.

The company’s efforts to exit PN17 status are progressing, with shareholder approval secured for the aviation business disposal and a vote scheduled for May 7 to revoke its distressed classification. Capital A also plans to retain an 18% stake in the resulting AirAsia airline group, focusing on its non-aviation businesses, including logistics firm Teleport and aircraft maintenance company Asia Digital Engineering.

Dubai Holding, a leading global investment conglomerate, has announced the listing of its Dubai Residential Real Estate Investment Trust on the Dubai Financial Market . This marks the first initial public offering in Dubai for the year, reflecting the continuing strength of the emirate’s thriving property sector.

The Dubai Residential Reit, a sharia-compliant fund that generates income through investments in residential real estate, is set to offer 1.625 billion units, representing 12.5 per cent of the total stake in the trust. Dham Investments, a fully owned subsidiary of Dubai Holding, is behind the move, aiming to diversify the company’s portfolio and expand its reach in the regional real estate market.

The subscription period for the offering will run from May 13 to May 20, 2025. After this, the final offer price will be disclosed on May 21, with the trading of the Reit’s units expected to commence on the Dubai Financial Market on May 28, 2025. The offer is poised to attract a wide range of investors, from institutional to retail, as the Dubai property market continues to attract significant interest from global investors.

The Dubai property market has shown remarkable resilience in the face of global economic challenges, with both residential and commercial segments witnessing robust growth. With high demand for luxury homes, rental properties, and mixed-use developments, the Reit presents a strategic opportunity for investors to gain exposure to the lucrative Dubai real estate market.

This IPO comes amid a boom in the emirate’s property market, fuelled by strong investor confidence, favourable government policies, and an influx of expatriates looking to secure a foothold in one of the world’s most dynamic cities. Dubai’s real estate market has been one of the most resilient globally, thanks to a range of measures introduced by the government to attract foreign investment, including long-term residency options for investors and property owners.

The listing is also significant for Dubai Holding, which has consistently sought to diversify its investment portfolio across various sectors, including real estate, hospitality, and technology. As one of the largest investment companies in the UAE, Dubai Holding’s strategic shift into the publicly traded real estate space could potentially open doors for further capital raising and market expansion in the region.

The offering is expected to draw attention not only from regional investors but also from international funds, as Dubai continues to be a top destination for global real estate investments. With property prices expected to maintain upward momentum in the coming months, the timing of the IPO could prove advantageous, particularly as Dubai continues to grow as an international business hub.

The Dubai Residential Reit has a strong portfolio of residential assets, strategically located in prime areas across the emirate. These properties are anticipated to generate consistent rental income, making the Reit an attractive investment for those seeking exposure to Dubai’s booming property market without the complexity of direct property ownership. Investors will also benefit from the fund’s income-distributing structure, with regular dividend payouts projected over time.

The IPO follows Dubai Holding’s broader strategy of strengthening its presence in key sectors and diversifying its investment base. With the growing demand for real estate in the region, Dubai Holding’s decision to list the Reit is seen as a move to unlock value from its high-quality assets while expanding its footprint in the public capital markets.

As with all public offerings, the success of this IPO will depend on the investor appetite, market conditions, and the overall economic landscape. Despite this, Dubai’s real estate sector remains resilient, buoyed by strong fundamentals and continuous infrastructure development that supports both residential and commercial property demand.

The Dubai Financial Market has positioned itself as a key player in the region’s capital markets, and the listing of Dubai Residential Reit is expected to contribute to further growth in market activity. It marks a significant milestone for the DFM, which has seen a series of successful listings in recent years, strengthening its position as a leading financial hub in the Middle East.

Emirates Integrated Telecommunications Company has reported a strong financial performance for the first quarter of 2025, reflecting substantial growth in both net profit and revenues. The company’s net profit surged by 19.8%, reaching AED 722 million , while revenues increased by 7.4% year-on-year to AED 3.8 billion. The results highlight du’s resilience and strategic initiatives in a highly competitive telecom market.

The strong growth in net earnings is primarily attributed to du’s effective management of its revenue mix and operational costs. The company’s EBITDA also saw a notable increase of 15%, amounting to AED 1.8 billion. This growth in earnings before interest, tax, depreciation, and amortisation was aided by the improved cost management strategies and a more balanced revenue distribution, which contributed to an EBITDA margin of 47.4%. This marked a 3.1 percentage-point improvement from the same period last year.

du’s performance in Q1 2025 underscores the success of its ongoing transformation efforts aimed at strengthening its market position. The company has made significant strides in diversifying its product and service offerings, tapping into new revenue streams, and expanding its digital services portfolio. These measures have not only helped improve its financial outcomes but also bolstered its competitiveness in an evolving telecommunications landscape.

The telecom industry in the UAE, which continues to be driven by technological advancements and digital transformation, has seen both du and its competitors adapt to changing consumer demands. With an increasing reliance on mobile data, fibre optics, and digital platforms, du has managed to capitalise on this shift by enhancing its service delivery and improving customer experience. The company’s digitalisation strategy has been integral to this growth, positioning it as a strong player in both consumer and business sectors.

In terms of operational performance, du has placed a significant emphasis on network optimisation and infrastructure upgrades. This includes expanding its 5G capabilities, which have become a crucial part of the telecom landscape in the UAE. As 5G networks continue to roll out across the country, du’s investments in next-generation technologies are likely to provide a competitive edge, enabling it to meet the growing demand for faster and more reliable mobile connectivity.

The company has also focused on improving its cost management strategies, which have been a key factor in its improved profitability. By streamlining operations, reducing unnecessary expenditures, and optimising its resource allocation, du has been able to maintain a healthy margin despite the competitive pressures in the telecom sector.

Another factor contributing to du’s success has been its continued focus on expanding its customer base. The company has increased its customer acquisition efforts, both in the consumer and enterprise markets, offering tailored solutions to meet the needs of various segments. With a robust digital strategy, du has been able to deliver value-added services, such as cloud solutions, IoT, and advanced cybersecurity offerings, which are highly sought after by businesses and government entities.

Looking ahead, du’s financial outlook remains positive, with analysts forecasting continued growth in the upcoming quarters. The company’s strong market position, enhanced service offerings, and commitment to technological innovation are expected to support its long-term growth trajectory. Furthermore, the UAE’s ongoing infrastructure development and plans for economic diversification are likely to present further opportunities for du to expand its footprint.

Despite the challenging nature of the telecom industry, characterised by high competition and regulatory pressures, du’s performance demonstrates its ability to adapt and thrive. The company’s proactive approach to cost control, investment in technology, and customer-centric focus have proven to be effective strategies in maintaining profitability and growth.

Dubai’s Fourth Criminal Court has sentenced Balvinder Singh Sahni, a prominent businessman known as “Abu Sabah,” to prison for orchestrating a complex money laundering operation involving shell companies and fraudulent financial transactions. The court found Sahni guilty of defrauding UAE banks of approximately AED100 million, marking one of the most significant financial crime convictions in the emirate.

Sahni, renowned for his extravagant lifestyle—including the purchase of a license plate for AED33 million—was arrested alongside several associates, including his eldest son and senior managers from his business ventures. The investigation revealed that Sahni and his network established multiple shell companies to facilitate the laundering of illicit funds, disguising them as legitimate business transactions.

The court’s ruling underscores Dubai’s intensified efforts to combat financial crimes. Authorities have been cracking down on money laundering activities, with the Dubai Public Prosecution and the Dubai Economic Security Centre leading operations against international networks. These efforts have resulted in the disruption of schemes involving the illegal transfer of funds and cryptocurrencies, amounting to hundreds of millions of dirhams.

In one notable case, authorities dismantled two major money laundering operations totaling AED641 million. The first involved an Emirati national, 21 British nationals, two Americans, a Czech national, and two companies owned by the Emirati. They were charged with possessing illicit funds of AED461 million and using forged documents to smuggle funds from the UK to the UAE. The second operation targeted a cryptocurrency-based scheme worth AED180 million, orchestrated by two Indian nationals and one British national, laundering proceeds from criminal activities through unlicensed intermediaries.

Dubai’s commitment to financial integrity has been further demonstrated by the establishment of a specialised court focused on combating money laundering within the Court of First Instance and Court of Appeal. This move aligns with the UAE’s National AML/CFT Strategy and National Action Plan, aiming to strengthen the integrity of the financial system and reinforce the rule of law.

AD Ports Group and the General Authority for the Suez Canal Economic Zone have entered into a significant partnership to develop a state-of-the-art industrial and logistics park at East Port Said, positioned strategically on the Mediterranean coast. The deal, formalised with a 50-year renewable usufruct agreement, is set to transform the region into a global trade and industrial hub, enhancing Egypt’s role in the international trade landscape.

The industrial park, spanning 20 square kilometres, will be located near the Egyptian city of Port Said, right at the entrance to the Suez Canal. This prime location offers a unique opportunity to establish a critical node for the East-West trade routes. The Suez Canal, already a vital passage for global maritime trade, is expected to see increased economic activity with the development of the new park.

The agreement was signed in Cairo in a ceremony attended by key figures from both the UAE and Egypt. Dr. Mostafa Madbouly, Egypt’s Prime Minister, was present to oversee the occasion, which also saw notable ministers and officials in attendance, including Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, and Lieutenant General Engineer Kamel Al Wazir, Egypt’s Deputy Prime Minister for Industrial Affairs and Minister of Industry and Transport. From the business side, Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, and Mr. Waleid Gamal El-Dien, Chairman of SCZONE, were also among those involved in the proceedings.

This agreement marks a milestone in Egypt’s ongoing efforts to attract investment into its industrial and logistics sectors. By developing the East Port Said Industrial Zone, both countries are tapping into the immense potential for trade and industry in the region. The new industrial park aims to provide a wide range of services, from manufacturing and assembly to warehousing and distribution, tailored to serve both regional and global markets.

The development of the KEZAD East Port Said Industrial and Logistics Zone is expected to offer numerous advantages. Chief among these is its proximity to the Suez Canal, which connects the Mediterranean Sea to the Red Sea, making it a critical gateway for goods moving between Europe, Asia, and the Middle East. This location is anticipated to drive trade growth and improve logistics efficiency, benefitting international companies looking to establish a presence in the region.

The park will leverage the existing infrastructure in Port Said, including its deep-water port and transport links, to support the smooth flow of goods and services. The project is poised to attract multinational companies, as it offers easy access to one of the world’s busiest trade routes. The emphasis on advanced technology and industrial processes will further strengthen Egypt’s competitive edge in the global market.

This development is not just an economic opportunity for Egypt but also an important step in strengthening ties between the UAE and Egypt. The UAE, through AD Ports Group, has long been a key player in global logistics and infrastructure development, and this partnership builds upon their growing presence in Egypt. The collaboration aims to attract investments, create job opportunities, and support Egypt’s vision for economic diversification.

In addition to its strategic location, the park is designed to cater to the evolving needs of industries that are integral to Egypt’s economic future, such as manufacturing, technology, and logistics. The project is expected to facilitate the integration of advanced technologies in the industrial sector, allowing companies operating in the park to benefit from cutting-edge facilities and services. This will further cement the area’s status as a key investment destination for both domestic and international investors.

As the agreement paves the way for large-scale development, it is also expected to foster innovation and the adoption of sustainable practices in the industrial and logistics sectors. The emphasis on sustainability aligns with global trends towards greener industrial practices and further boosts the appeal of East Port Said as a forward-thinking industrial hub.

With a long-term focus on growth and development, the agreement also outlines provisions for the renewal of the usufruct, ensuring that the project remains viable and adaptable over the decades. This long-term commitment is a testament to the confidence both AD Ports Group and SCZONE have in the potential of the East Port Said region and its capacity to drive forward Egypt’s economic ambitions.

The involvement of high-profile figures, including government ministers and ambassadors, underlines the significance of the deal, not only for Egypt but also for the broader region. It reflects a shared vision between Egypt and the UAE to strengthen economic ties, increase trade, and improve infrastructure. This cooperation also supports broader regional stability and economic growth, with the East Port Said development serving as a symbol of the growing partnerships between the UAE and Egypt.

India’s participation in the World Expo 2025 in Osaka is positioned to create significant opportunities for economic growth, cultural diplomacy, and increased tourism. With an expected influx of international visitors and the ongoing globalisation of markets, the country is focusing on leveraging the expo’s global platform to showcase its economic potential, rich cultural heritage, and expanding technological prowess.

The India Pavilion, a standout feature of the event, has already seen a remarkable turnout, attracting thousands of visitors in its first few days. The pavilion highlights India’s thriving industries, cutting-edge innovations, and its growing stature as a global player in sectors such as technology, manufacturing, and renewable energy. Designed to embody the country’s vision of “Vasudhaiva Kutumbakam” or “the world is one family,” the exhibition is offering a glimpse into India’s future trajectory while celebrating its deep-rooted cultural heritage.

Trade experts and diplomats view the expo as an essential event for fostering international business partnerships. India, which is already a key player in the global economy, is focusing on utilising the Expo as a gateway to expand its trade relations with countries across Asia, Europe, and beyond. Several large-scale business events and networking sessions are planned as part of India’s participation, aiming to facilitate collaborations in diverse sectors such as information technology, pharmaceuticals, agriculture, and automotive manufacturing.

India’s robust trade agenda at the Expo 2025 comes in the context of its ongoing efforts to bolster its position as one of the world’s leading economic powers. The country has made significant strides in trade agreements over the past few years, particularly with Japan and other East Asian nations, further cementing its importance in regional and global trade networks. Key sectors such as fintech, e-commerce, and artificial intelligence are expected to be key points of focus for business leaders and innovators visiting the pavilion.

The Expo provides a unique opportunity for India to present its achievements in these fields and attract foreign investments. India’s Information Technology sector, for instance, will have a prominent role in the pavilion, with showcases of groundbreaking developments in software solutions, cybersecurity, and digital infrastructure. Additionally, the Indian government’s “Make in India” initiative, aimed at encouraging domestic manufacturing, is set to take centre stage, signalling India’s commitment to increasing its share in global production.

Tourism plays a central role in India’s strategy to maximise the impact of its World Expo 2025 presence. As part of its outreach efforts, the country is promoting its diverse tourist destinations, cultural festivals, and unique culinary traditions. Travel experts believe that the Expo could serve as a catalyst for an uptick in Japanese and international visitors to India, especially as the world emerges from the pandemic and travel restrictions ease globally. By highlighting the country’s natural beauty, heritage sites, and contemporary attractions, India is seeking to attract a new wave of tourists, especially from Japan, a country with deep historical ties to India.

The Indian tourism sector is also looking to benefit from the growing interest in wellness and eco-tourism, with the Expo providing an ideal venue to promote these niche segments. India’s yoga, spiritual retreats, and eco-tourism initiatives are expected to be highlighted, appealing to international visitors seeking sustainable and enriching travel experiences.

The Expo’s theme of “Designing Future Society for Our Lives” aligns well with India’s strategic focus on sustainable development, innovation, and inclusivity. The country’s growing emphasis on green technologies, clean energy, and sustainable infrastructure will be showcased as part of India’s vision for a future society that balances economic growth with environmental responsibility. India’s active participation in global climate initiatives, coupled with its ambitious renewable energy goals, forms an essential part of the pavilion’s messaging.

Key players in India’s participation include the Ministry of Commerce and Industry, the Ministry of Tourism, and various state governments, each working in tandem to ensure a comprehensive and impactful presence. Government officials have expressed confidence that the Expo will not only strengthen bilateral ties with Japan but also serve as a platform for new partnerships in other regions. The Indian government’s proactive engagement with global stakeholders is expected to position India as a leader in international trade, investment, and cultural exchange.

Cultural diplomacy will be another critical aspect of India’s participation. The pavilion will feature a mix of live performances, art exhibitions, and traditional crafts, providing visitors with a vibrant and immersive experience. India’s diverse art forms, including classical dance, music, and theatre, will take centre stage, showcasing the country’s rich heritage while also highlighting contemporary Indian artists who are gaining international recognition. These cultural exchanges are set to build bridges between India and the rest of the world, fostering mutual understanding and respect.

India’s presence at the World Expo is also expected to highlight the country’s aspirations as a global thought leader, particularly in the fields of technology, education, and innovation. The country’s booming startup ecosystem, with its expanding network of unicorns and innovators, will also be on display. India’s young, dynamic workforce is increasingly seen as a major driver of its growth, and the Expo offers an opportunity to demonstrate how the country’s demographic advantage is transforming it into a global hub for innovation and entrepreneurship.