GulfNav Secures $871 Million Deal to Bolster Oil Storage Hub
Arabian Post Staff -Dubai
Gulf Navigation Holding PJSC has signed a definitive agreement to acquire the assets and subsidiaries of Nasdaq‑listed Brooge Energy for AED 3.2 billion, a move set to significantly expand its midstream oil and gas capacity. The transaction spans a blend of cash, share issuance, and mandatory convertible bonds, with completion anticipated by the close of the third quarter of 2025, subject to regulatory and shareholder approvals.
The bulk of the deal involves taking over Brooge Petroleum and Gas Investment Company FZE, its Phase III FZE entity, and BPGIC Phase 3 Limited—each operating advanced crude, fuel oil, and refined petroleum storage facilities in Fujairah. These strategically located assets will double GulfNav's existing infrastructure, reinforcing its footprint at a key UAE bunkering and storage hub.
ADVERTISEMENT
Under the structured settlement, GulfNav will allocate 358.8 million new shares at AED 1.25 each to Brooge Energy, enforceable with a 12‑month lock‑up period. It will also issue AED 2.336 billion in mandatory convertible bonds convertible at the same share price and restricted similarly. Existing shareholders have access to AED 500 million in MCBs at AED 1.10 per share, with major investors covering any unclaimed portion. Additionally, AED 460 million will be disbursed in cash.
Chief Executive Ahmad Kilani described this acquisition as transformational, explaining that integrating Brooge's storage infrastructure with GulfNav's maritime services will 'unlock operational synergies, enhance storage capacity and drive long‑term value for shareholders.' Incoming facilities in Fujairah are expected to enhance logistical efficiency, lower costs, and broaden GulfNav's revenue mix.
This move aligns with GulfNav's strategy to transition from a legacy maritime operator to a diversified energy‑logistics conglomerate. The firm's board was authorised in March 2025 to proceed with the asset acquisition, capital increase, and issue of MCBs, all in light of its shareholders' approval. Regulatory processes and amendments to the company's articles of association—particularly regarding foreign ownership—are now underway.
Brooge Energy has previously attracted scrutiny. In December 2024, U.S. investors filed a fraud claim against auditor Ernst & Young, alleging that revenues were overstated by between 30% and 80% during 2018–2020. The firm reached a $5 million settlement with the U.S. Securities and Exchange Commission over irregular accounting practices. Despite these concerns, GulfNav maintains the deal offers strategic value, citing diligence and planned regulatory housekeeping prior to close.
Analysts note the landmark nature of this deal; GulfNav's storage assets are poised to surge, positioning it as a key player in the region's rapidly evolving energy-logistics ecosystem. Fujairah's strategic location outside the Strait of Hormuz means its terminals are well placed to serve global crude oil logistics, with Brooge's high-tech blending capabilities offering an edge in operational efficiency.
Transaction conditions encompass customary requirements: shareholder approvals, regulatory consents, debt settlements, and commercial registration. GulfNav expects to finalise the share and bond issuance in tandem with regulatory clearance, with the goal of closing by end‑Q3 2025. After completion, the Brooge Energy shareholders and bondholders will receive equity in GulfNav under lock‑up terms.
Post-acquisition, GulfNav's board plan includes integrating Brooge's board representatives to ensure continuity and operational alignment throughout the transition. Integration is expected to elevate GulfNav's EBITDA margins and open fresh revenue streams via enhanced storage, blending, and bunkering services.
Although GulfNav navigates complexities from Brooge's previous accounting controversies, analysts emphasise the strategic benefits—particularly the ability to offer complete maritime-to-storage and product blending services from a single platform. The expanded Fujairah facilities will allow GulfNav to capitalise on growing crude export flows, further supported by Abu Dhabi's energy growth ambitions.
With conventional execution risk low, attention now shifts to securing regulatory and legal clearances, along with capital-raising for the MCB component. Successful completion will mark GulfNav's transformation into a fully integrated energy logistics powerhouse, ready to meet regional demand while delivering enhanced returns to investors.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sharjah 24
2 days ago
- Sharjah 24
Gross banks' assets up by 1.9% to AED4,719.4 bn. at end of March
The increase was due to AED5.1 billion growth in currency in circulation outside banks, overriding the AED1.4 billion decrease in monetary deposits. The money supply aggregate M2 increased by 3.3%, increasing from AED 2,360.3 billion at the end of February 2025 to AED2,437.7 billion at the end of March 2025. M2 increased because of an elevated M1, and AED73.8 billion increase in Quasi-Monetary Deposits. The money supply aggregate M3 also increased by 2.9%, from AED2,811.7 billion at the end of February 2025 to AED2,893.7 billion at the end of March 2025. M3 increased due to the growth in M2, and AED4.5 billion increase in government deposits. The monetary base increased by 2.0%, from AED816.6 billion at the end of February 2025 to AED833.1 billion at the end of March 2025. The growth in the monetary base was driven by increases in currency issued by 4.1% and in reserve account by 62.0%, overriding the decrease in banks & OFCs' current accounts & overnight deposits of banks at CBUAE by 64.2% and in monetary bills & Islamic certificates of deposit by 6.3%. Gross banks' assets, including bankers' acceptances, increased by 1.9% from AED4,632.2 billion at the end of February 2025 to AED4,719.4 billion at the end of March 2025. Gross credit increased by 1.6% from AED2,204.3 billion at the end of February 2025 to AED2,240.0 billion at the end of March 2025. Gross credit increased due the combined growth in domestic credit by AED19.5 billion and foreign credit by AED16.2 billion. The growth in domestic credit was due to increases in credit to the; public sector (government-related entities) by 0.2%, private sector by 1.4% and non-banking financial institutions by 1.9%, while credit to the government sector decreased by 0.3%. Banks' deposits increased by 2.3%, from AED2,871.5 billion at the end of February 2025 to AED2,936.4 billion at the end of March 2025. The increase in bank deposits was driven by the shared growth in resident deposits by 2.4%, settling at AED2,687.8 billion and in non- resident deposits by 0.4%, reaching AED248.6 billion. Within the resident deposits; government-related entities deposits increased by 4.3%, private sector deposits increased by 3.1% and non-banking financial institutions deposits increased by 5.1%, while deposits to the government sector decreased by 2.3%, by the end of March 2025.
Arabian Post
2 days ago
- Arabian Post
Aldar Achieves AED 3.5 Billion in First‑Week Fahid Island Sales
Aldar has secured over AED 3.5 billion in sales during the initial launch week of its Fahid Beach Residences and The Beach House on Fahid Island, underscoring strong demand for the developer's new coastal wellness vision. Sales encompass a mix of 1- to 4‑bedroom apartments, townhouses and penthouses, with prices starting from around AED 3 million for residential units, and represent a pivotal milestone for the island's debut as Abu Dhabi's first wellness‑focused coastal destination. The weekend launch saw committed buyers who value coastal living, wellness‑driven design, and access to a super‑premium British curriculum, with Kings College School Wimbledon integrated within the broader masterplan. Expatriate residents and overseas investors accounted for 67 percent of total sales. The top nationalities included people from the UAE, Russia, the UK and China—a testament to Fahid Island's growing international credibility as a lifestyle investment hub. Aldar's CEO, Jonathan Emery, noted that a significant share of buyers are first‑time customers of Aldar, with a marked representation of younger demographics; 42 percent are under the age of 45. ADVERTISEMENT Fahid Island spans a prime location between Yas Island and Saadiyat Island, featuring an 11 km coastline set within pristine mangrove forests. The development is backed by a gross development value exceeding AED 40 billion and is being positioned as the world's first 'Fitwel‑certified island'. Designed to prioritise wellness, it includes amenities such as 24‑hour gyms, luxury spas, social kitchens, pet spas, and direct waterfront access. Analysts view the strong launch sales as reflective of Abu Dhabi's upward trend in real estate investment. June is shaping up as one of the capital's most active months, fuelled by Fahid Island's launch and concurrent high‑end projects such as the Bulgari branded residences. The performance on Fahid Island suggests a shift: younger, wellness‑oriented buyers are engaging with luxury markets, a departure from the traditionally older investor base. Closer examination reveals further trends: 67 percent of buyers are new to Aldar's portfolio, indicating the island's appeal to a fresh and diverse audience. The project's proximity—five minutes from Yas Island, 15 minutes from Abu Dhabi International Airport and Saadiyat—is a key draw, alongside the island's positioning as a lifestyle destination offering a blend of culture, community and environmental immersion. Fahid Island's commitment to sustainability, wellness and education adds to its allure. The British curriculum school, part of Aldar's integrated planning, caters to global families intent on combining luxurious living with holistic wellbeing. Meanwhile, its Fitwel designation reinforces the emphasis on health‑centric built environments. The sales mix at launch highlights both investment and lifestyle motivations. Properties span multiple price bands and formats—apartments, townhomes, penthouses—offering price thresholds from AED 3 million upwards. This diversity widens appeal to both investors and end‑users seeking premium coastal residences. Abu Dhabi's property market is experiencing a resurgence in interest from international investors. Fahid Island's launch dovetails with broader market momentum, positioning the city as a global real estate hotspot. Its emphasis on wellness, youth engagement, and quality education aligns with shifting consumer values across the Gulf region. Moving ahead, Aldar anticipates sustained engagement from both domestic and international buyers. Jonathan Emery commented that ahead of subsequent phases, the developer expects Fahid Island's profile to strengthen on the global stage and continue drawing affluent individuals seeking health‑oriented, culture‑rich coastal communities.
Web Release
2 days ago
- Web Release
UAE Deepens Investment in Social Infrastructure Amid Population Growth and Strategic Reforms
The Middle East will see a 25% increase in social infrastructure project activity in the next two years, according to a new report by Ansarada, a leading procurement platform. As population growth accelerates and quality-of-life standards become increasingly central to national agendas, governments across the Middle East are intensifying investment in social infrastructure projects. In 2024, the Middle East had a total value of US$1.6 billion in social infrastructure transactions, which is expected to grow to US$2.0 billion by 2027. According to the report, almost half (46%) of EMEA stakeholders cite population growth and improved quality of life as key investment drivers. Ansarada's Social Infrastructure Outlook 2025 explores key themes such as procurement efficiency, risk allocation and the shift towards workflow digitalisation, providing up-to-the-minute insights into prevailing procurement trends. explores key themes such as procurement efficiency, risk allocation and the shift towards workflow digitalisation, providing up-to-the-minute insights into prevailing procurement trends. Justin Smith, Managing Director, Ansarada, said, 'We're seeing a notable shift in how infrastructure capital is being deployed across the Middle East, with the UAE playing a leading role in this evolution. Through strategic reforms, ongoing population growth, and government initiatives promoting technology-enabled procurement, the UAE appears to be enhancing project delivery while working toward higher standards for sustainable urban development. This progressive approach is contributing to changes in how healthcare, education, and housing infrastructure are funded, built, and managed throughout the region.' The UAE federal government has allocated over AED 27 billion ($7.4 billion) to upgrade infrastructure, its most ambitious investment to date, driven by 4% annual population growth and rising global investor interest. To meet demand, the government is increasingly using public-private partnerships (PPP) models to fast-track delivery and leverage private sector expertise. At the same time, EMEA has emerged as the most competitive region, with 30% of professionals reporting very high levels of competition during the bidding stage of their most recent projects, significantly higher than any other market surveyed. By comparison, only 10% of respondents in Asia-Pacific reported similar levels of competition, pointing to deeper structural differences and market maturity across regions. More broadly, healthcare has emerged as the top investment priority for EMEA, with 68% of procurement professionals indicating the sector will see the greatest increase in value over the next two years. This is followed by leisure (56%) and education (52%), reflecting a broader focus on community well-being and long-term social resilience. The findings come amid growing complexity and urgency in delivering high-impact social infrastructure projects, particularly in rapidly developing markets such as the UAE, where demand for quality healthcare and education is accelerating The report confirms the UAE's emergence as the Middle East's infrastructure innovation hub, where digital-first procurement models are enabling faster, more cost-effective, and sustainable project delivery.
