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ADNOC leads $18.7bn proposal to buy Australia’s Santos in LNG push

Santos shares rose 15 per cent in early trading Monday

Reuters
Reuters

16 June, 2025

ADNOC leads $18.7bn proposal to buy Australia’s Santos in LNG push

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Australia’s second-largest gas producer Santos said on Monday it intended to support an all-cash $18.7bn takeover bid from an international consortium led by Abu Dhabi’s National Oil Company (ADNOC), which wants to grow a global gas business.

ADNOC, through its investment arm XRG, with Abu Dhabi Development Holding Company (ADQ) and private equity firm Carlyle has offered $5.76 (A$8.89) per Santos share, which was a 28 per cent premium to the Australian company’s close on Friday.

Taking into account net debt, the deal gives Santos an enterprise value of A$36.4bn, which would make it the largest all-cash corporate buyout in Australian history, according to FactSet data.

It would be the third largest takeover ever in Australia, the data showed.

“For ADNOC, this is in line with their aggressive growth plans,” said Kaushal Ramesh, vice president, gas and LNG research, at Rystad Energy.

Santos shares rose 15 per cent in early trading Monday to A$7.86, well below the offer price for the transaction, before tracking back to A$7.81 mid-session.

Analysts said the stock was trading below the offer price as the deal risked not being approved by regulators in both Australia and Papua New Guinea.

The takeover bid emerged as oil prices reached multi-week highs as Israel and Iran traded air strikes, sparking concerns oil exports from the Middle East could be widely disrupted.

With Santos in its fold, the XRG-led consortium would gain control of two Australian liquefied natural gas operations – Gladstone LNG on the east coast and Darwin LNG in the north, as well as stakes in PNG LNG and the undeveloped Papua LNG. Santos’ interests in Papua New Guinea are considered its most prized assets.

The company is also developing an oil project in Alaska, Pikka, due to start producing in mid-2026.

XRG said in June it aims to build a gas and LNG business with capacity of between 20 million and 25 million metric tons a year by 2035. Santos last year sold 5.08 million tons of LNG, with more than 60 per cent of that from Papua New Guinea.

“What ADNOC really wants is the LNG assets, since they are inside the Asia Pacific basin. Since their plan is to expand in LNG, they will want assets close to where the future of demand lies,” Rystad’s Ramesh said.

The takeover offer follows two previous proposals made by the consortium in March at $5.04 and $5.42 per share that were not made public.

“The Santos Board confirms that, subject to reaching agreement on acceptable terms of a binding scheme implementation agreement, it intends to unanimously recommend that Santos Shareholders vote in favour of the potential transaction, in the absence of a superior proposal,” it added.

The XRG consortium said it was negotiating to carry out due diligence with Santos on an exclusive basis before formalising the offer which would need at least 75 per cent support from Santos investors.

“The proposed transaction is aligned with XRG’s strategy and ambition to build a leading integrated global gas and LNG business,” it said in a statement.

XRG, which was set up in November, last month acquired a stake in an offshore gas block in Turkmenistan. ADNOC has also struck several international deals for assets to sit under XRG, including gas and LNG interests in Mozambique.

Regulatory approval

Santos said the deal required approval from Australia’s Foreign Investment Review Board (FIRB), Australian Securities and Investments Commission (ASIC), National Offshore Petroleum Titles Administrator, PNG Securities Commission, PNG Independent Consumer and Competition Commission and Committee on Foreign Investment in the United States (CIFIUS).

XRG said it would maintain Santos’ headquarters in South Australia, in a move to try and appease some regulators.

MST Marquee senior energy analyst Saul Kavonic said FIRB approval “may be a major risk to the deal” as Santos controls significant critical energy infrastructure in Australia. Analysts at E&P Capital also flagged the risk of securing approvals from Australia’s offshore operations regulator and Papua New Guinea.

Kavonic said any spin-off of domestic infrastructure assets to potentially satisfy regulators would be difficult, as they are saddled with decommissioning costs.

The deal follows talks scrapped last year between Santos and its bigger Australian rival Woodside to create a possible A$80bn oil and gas giant. Santos walked away saying it would look for other ways to bolster its value.

Santos said in February its underlying annual profit fell nearly 16 per. cent in 2024 and cut its dividend by 41 per cent.

While Santos has long been a takeover target, having rejected a $10.8bn offer from private equity-backed Harbour Energy in 2018, Kavonic said a competing bid “is very unlikely as only ADNOC may be willing to pay such a premium to realise their global LNG ambitions.”

UAE’s 2031 non-oil foreign trade target will be achieved in 2 yrs: Sheikh Mohammed

The UAE has reported consistent record-breaking non-oil trade performance for several years, underpinning its efforts to position itself as a global hub

Gulf Business
Gulf Business

15 June, 2025

UAE’s 2031 non-oil foreign trade target will be achieved in 2 yrs: Sheikh Mohammed
Image: Dubai Media Office

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The UAE’s non-oil foreign trade surged by 18.6 per cent year-on-year in Q1 2025, reaching Dhs835bn, as the country accelerates toward its economic diversification targets ahead of schedule, according to Vice President and Prime Minister of the UAE and Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum, Dubai Media Office (DMO) reported.

Sheikh Mohammed stated: “The UAE’s non-oil foreign trade saw growth of 18.6 per cent year-on-year in the first quarter of this year, reaching Dhs835bn (global average is 2-3 per cent). The nation’s non-oil exports experienced exceptional growth, surging by 41 per cent annually.”

UAE’s non-oil exports in Q1 2025

Non-oil exports recorded Dhs177.3bn in Q1 2025, a 40.7 per cent increase compared to Q1 2024 and a 15.7 per cent jump from the fourth quarter of 2024.

For the first time, non-oil exports represented over 21 per cent of the UAE’s total non-oil trade, outpacing both imports and re-exports.

“Our goal to grow non-oil foreign trade to Dhs4tn by 2031 will be achieved within the next two years; four years ahead of schedule. In 2024, GDP grew by 4 per cent, reaching Dhs1.77tn, with the non-oil sector contributing 75.5 per cent to the national economy,” Sheikh Mohammed added.

Re-exports grew by 6 per cent annually to Dhs189.1bn, while imports reached Dhs468.6bn, up 17.2 per cent year-on-year but slightly down 1.7 per cent from Q4 2024.

According to the (DMO) report, Sheikh Mohammed reaffirmed the country’s economic trajectory: “Under the leadership of HH [UAE President] Sheikh Mohamed bin Zayed Al Nahyan, the UAE’s economic growth is achieving unprecedented success. Indicators of social, economic, and strategic stability and prosperity are at their highest historical levels. We are confident in an even brighter future, driven by the focused efforts of thousands of dedicated teams working to realise the UAE’s global ambitions.”

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UAE’s top trading partners

Trade with the UAE’s top 10 trading partners rose by 20.2 per cent in Q1 2025, surpassing the 16.9 per cent growth rate with other countries. Bilateral trade with India increased by 31 per cent, with Saudi Arabia by 127 per cent, with Turkiye by 8.3 per cent, and with China by 9.6 per cent, breaking previous records.

The UAE has reported consistent record-breaking non-oil trade performance for several years, underpinning its efforts to position itself as a global hub for commerce, investment, and logistics.

New initiative: How UAE is enhancing the quality of life for senior citizens, expats

The launch reflects the UAE’s long-term goal of making government services more accessible, empathetic, and inclusive — particularly for the country’s ageing population

Gulf Business
Gulf Business

15 June, 2025

New initiative: How UAE is enhancing the quality of life for senior citizens, expats
Image: Getty Images/ For illustrative purposes

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The UAE’s Ministry of Energy and Infrastructure (MoEI) has announced a new initiative aimed at improving the quality of life for senior citizens and residents, under the banner ‘We Are Your Support’, as part of the national ‘Year of the Community‘ campaign.

The initiative introduces a suite of innovative and integrated services designed to enhance the well-being, dignity, and independence of elderly citizens and long-time residents.

Key components include the National Housing Specifications Guide for Senior Citizens, free housing design options via the ‘Darak’ platform, and voluntary engineering consultations in energy, electricity, and construction through the ‘Aounkom’ initiative.

Dedicated advisors with experience in social services and fluency in local dialects have been appointed at MoEI service centres in Dubai, Sharjah, Ras Al Khaimah, and Fujairah.

They are tasked with delivering tailored assistance and managing exceptional cases with sensitivity.

Gender-specific services

The initiative also introduces gender-specific enhancements. For elderly women, the ‘Leen Babek’ service enables home-based transaction processing to ensure privacy and comfort. For men, increased mobility support includes reserved parking, smart service desks, and personalised assistance through to the completion of services.

A ‘Golden Counter’ has also been launched at service centres to prioritise senior citizens’ transactions, alongside workshops aimed at increasing digital literacy among the elderly and offering direct support with digital services when needed.

We Are Your Support to empower senior citizens and residents

Sharif Al Olama, Under-Secretary for Energy and Petroleum Affairs at MoEI, said the initiative aligns with the leadership’s commitment to providing personalised, human-centred public services.

“We believe that serving the elderly is not just a duty, but a privilege and a gesture of gratitude toward a generation that contributed to building the nation,” Al Olama said. “The ‘We Are Your Support’ initiative was designed to be a model of empowerment and care, delivering an exceptional service experience that reflects the appreciation they deserve.”

He added that the initiative is part of a broader government strategy to eliminate bureaucracy and deliver proactive, seamless, and smart services that reflect the values of inclusion and respect for all community segments.

Timeline revealed: Driverless Ubers to hit Dubai roads

The initial phase will feature autonomous vehicles operating with a safety driver onboard to monitor performance and ensure safety

Gulf Business
Gulf Business

15 June, 2025

Timeline revealed: Driverless Ubers to hit Dubai roads
Image credit: Dubai Media Office/Website

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Dubai’s Roads and Transport Authority (RTA) has signed a Memorandum of Understanding (MoU) with Uber Technologies, Inc. (NYSE: UBER), a global leader in ride-hailing and delivery, and WeRide (NASDAQ: WRD), a leading autonomous driving technology firm. Under the agreement, autonomous vehicles will begin pilot operations via the Uber app in Dubai later this year.

Read-WeRide, Uber to roll out autonomous vehicles in 15 more cities

The initial phase will feature autonomous vehicles operating with a safety driver onboard to monitor performance and ensure safety. The full commercial rollout of driverless services is scheduled for 2026, a Dubai Media Office report said.

Field preparations for the pilot program are currently underway, led by Uber and WeRide with strategic oversight and support from the RTA.

Image credit: Dubai Media Office/Website

The MoU signing ceremony was attended by Mattar Al Tayer, Director General and Chairman of the Board of Executive Directors at RTA; Madhu Kannan, Chief Business Officer at Uber; and Ryan Zhan, Regional General Manager of Middle East and Africa at WeRide. The agreement was signed by senior representatives from all three organizations, including Ahmed Hashim Bahrozyan, CEO of RTA’s Public Transport Agency; Frans Hiemstra, Regional General Manager for MEA at Uber; and Eric Dong, Director of Capital Markets and Corporate Development at WeRide.

Supporting Dubai’s smart mobility vision

Mattar Al Tayer hailed the agreement as a strategic step toward positioning Dubai as a global leader in smart and sustainable transport solutions.

“The introduction of autonomous vehicles in Dubai represents a significant leap toward a smart and sustainable mobility future, aligned with the leadership’s vision to transform Dubai into the world’s smartest city,” Al Tayer said. “This initiative supports the Dubai Smart Self-Driving Transport Strategy, which aims to convert 25 per cent of all journeys in Dubai to autonomous transport by 2030.”

Al Tayer emphasised that this agreement reflects Dubai’s commitment to adopting advanced technologies and innovative transport solutions that align with global best practices.

Strengthening global partnerships

In his remarks, Al Tayer highlighted the role of global collaboration in advancing autonomous mobility.

“The RTA is expanding its network of international partners to deploy a diverse range of autonomous mobility solutions, including self-driving taxis, air taxis, and marine transport modes,” he said. “This will enhance road safety, improve quality of life for residents and visitors, and support first and last-mile connectivity across the public transport network.”

He added that the transition to autonomous mobility is no longer a futuristic concept but an emerging reality. “Technology developers and governments worldwide are accelerating efforts to build infrastructure and regulatory frameworks that enable the safe deployment of autonomous vehicles,” Al Tayer noted.

Uber and WeRide align with Dubai’s vision

Frans Hiemstra, Regional General Manager for the Middle East and Africa at Uber, underscored the importance of the Dubai launch in Uber’s global strategy.

“At Uber, we are building the future of transportation—autonomous, electric, and shared,” Hiemstra said. “We’re excited to launch in Dubai with WeRide as our first technology partner. This marks a key milestone in making autonomous vehicle services more accessible globally.”

Jennifer Li, Chief Financial Officer and Head of International at WeRide, echoed the sentiment, calling the MoU a major step forward in the company’s regional expansion.

“The Middle East is a strategic priority for us,” Li said. “Just last month, we expanded our partnership with Uber to deploy robotaxis in 15 additional cities globally. This new agreement with RTA and Uber strengthens our commitment to Dubai’s goal of making 25 per cent of all transportation autonomous by 2030.”

Li added that WeRide’s advanced autonomous driving technology and global deployment experience position it to be a key enabler of this transformation.

Conclusion

The collaboration between RTA, Uber, and WeRide marks a pivotal milestone in Dubai’s efforts to lead the world in autonomous mobility. With pilot testing set to begin by the end of 2025 and a full commercial launch planned for 2026, Dubai is firmly on track to become a global testbed for cutting-edge transportation technologies.

UAE: Midday work ban starts, see penalties for violations

The ministry has encouraged the public to report violations through its call centre (600590000), website, or smart app

Gulf Business
Gulf Business

15 June, 2025

UAE: Midday work ban starts, see penalties for violations
Image: Getty Images/ For illustrative purposes

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The UAE has commenced its 21st annual ‘Midday Work Ban’, effective from June 15 until September 15.

A key part of the UAE’s sustainable labour strategy, the rule, enforced by the Ministry of Human Resources and Emiratisation (MoHRE), prohibits any outdoor work under direct sunlight between 12:30pm and 3pm daily.

The initiative aims to safeguard the health and safety of workers — particularly in construction and outdoor sectors — during the country’s peak summer heat, where temperatures often exceed 50°C.

MoHRE added that its inspection teams will conduct unannounced field visits to monitor compliance at work sites and labour accommodations across the country.

The ministry is also conducting awareness campaigns to inform both employers and employees of the regulations and the health risks of working in extreme heat.

Read: Summer skincare, nutrition: What the experts advise

Penalties for violators of midday work ban

Violators of the Midday Work Ban face fines of Dhs5,000 per worker found working during the restricted hours, up to a maximum of Dhs50,000, and may risk suspension of the establishment’s classification or operational permits.

The ministry also encourages the public to report violations through its call centre (600590000), website, or smart app.

Measures to be undertaken for workers

Employers are obligated to provide shaded rest areas, cooling systems, drinking water, electrolytes, and first-aid kits.

Exceptions to the ban are made only for urgent tasks, such as infrastructure repairs, which must be reported in advance and compensated with alternative rest periods.

The initiative supports the UAE’s “We the UAE 2031” vision, fostering a resilient and inclusive workforce.

The country hosts over 200 nationalities, making the safety and dignity of all workers a national priority.

UAE economy hits Dhs1.776tn as non-oil sectors drive growth

Non-oil sectors accounted for 75.5 per cent of the UAE’s GDP by the end of 2024—an outcome the minister attributes to strong leadership

GULF BUSINSS
GULF BUSINSS

15 June, 2025

UAE economy hits Dhs1.776tn as non-oil sectors drive growth

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The UAE’s real gross domestic product (GDP) reached Dhs1.776tn in 2024, marking a 4 per cent increase from the previous year, according to the Federal Competitiveness and Statistics Centre (FCSC). Non-oil GDP expanded by 5 per cent, totaling Dhs1.342tn, while oil-related activities contributed Dhs434bn to the overall economy, a WAM report said.

Read-Non-oil sector now makes up nearly 75% of UAE’s economy

Minister of Economy Abdulla bin Touq Al Marri emphasised that the latest figures highlight renewed momentum and underline key milestones in the nation’s economic diversification efforts. “These indicators reflect the sustained success of the UAE’s economic strategies,” Al Marri said. “They demonstrate our transition toward an innovative, knowledge-based, and sustainable economic model in line with global trends and emerging technologies.”

Non-oil sectors accounted for 75.5 per cent of the UAE’s GDP by the end of 2024—an outcome the minister attributes to strong leadership and effective policy implementation. He affirmed that these results align with the broader goals of the ‘We the UAE 2031’ vision, which aims to raise the national GDP to Dhs3tn within the next decade.

Diversification strategy driving growth

Hanan Mansour Ahli, Managing Director of the FCSC, echoed the sentiment, calling the 4 per cent GDP growth “a reflection of exceptional economic performance” and proof of the UAE’s commitment to a sustainable, non-oil-driven growth model.

“The leadership’s forward-looking approach prioritizes economic diversification not just as a strategic goal but as a central operational principle,” she said. Ahli added that this model enhances national competitiveness and social well-being, while ensuring consistent progress across development indicators.

This approach has translated into notable sectoral growth across the economy. The transport and storage sector emerged as the fastest-growing contributor to GDP in 2024, posting a 9.6 per cent year-over-year increase. This surge was largely driven by record airport traffic, with UAE airports handling approximately 147.8 million passengers—an increase of nearly 10 per cent.

Sectoral Highlights: Transport, construction, and finance

The building and construction sector recorded an 8.4 per cent growth rate, buoyed by significant urban infrastructure investments. Financial and insurance activities also performed well, growing by 7 per cent, followed by the hospitality sector—hotels and restaurants—which expanded by 5.7 per cent. The real estate sector grew by 4.8 per cent.

Among non-oil sectors, trade remained the top contributor to GDP, accounting for 16.8 per cent, followed by manufacturing at 13.5 per cent, and financial and insurance services at 13.2 per cent. The construction sector contributed 11.7 per cent, while real estate activities represented 7.8 per cent of non-oil GDP.

As the UAE continues its shift toward a knowledge-driven and globally competitive economy, government officials remain confident that these figures demonstrate a robust foundation for future growth and long-term economic sustainability.

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