Wednesday, 9 October 2024

Record budget approved for 2025 + Abu Dhabi the richest city in the world?

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Good morning, wonderful people. It’s another busy day in the news, with the cabinet approving the largest ever budget for 2025, more updates from the latest in a diplomacy-heavy week, and news that real estate mogul Nick Candy has set up a JV with Modon Holding.

It’s also a busy day from a macro perspective, with a new report from Global SWF ranking Abu Dhabi as the richest city in the world, a new banking sentiment report from PwC suggesting online perception of banks in the UAE declined last year, and a startup investment report showing UAE leading the region in terms of funding rounds.

☁️WEATHER- The Eastern parts of the country will continue to see clouds with a chance of rain today and through to Friday. In Dubai, temperatures will hit 37°C before cooling to 29° overnight — the first time we’ve broken the 30°C barrier for a while now — while Abu Dhabi will see the mercury hit 35° before cooling to 29°.


JUST IN- Abu Dhabi sovereign wealth fund Abu Dhabi Investment Authority has written off its 9.9% stake in the UK’s largest water and sewage company Thames Water, the Financial Times reports, citing documents it has seen. Adia said it had written down the GBP 263 mn investment due to the “challenging regulatory environment and operational performance.” The FT says this was done at the end of last year, according to Adia’s filings in June.

Adia has also written down a GBP 31mn loan awarded to one of the holding companies that owns Thames, the FT wrote.

Background: Thames water has been in hot water for a while now, with shareholders saying the company is “uninvestable” under the current regulatory regime, following unresolved issues between the UK’s Water Services Regulation Authority (Ofwat) and the shareholders over price changes.


AND- Cerebras’ IPO on ice for now? Abu Dhabi-backed Cerebras — a rival to Nvidia — is likely postponing its IPO due to delays with a US national security review that is looking into state-owned tech firm G42’s minority stake in the company, Reuters reports, citing people familiar with the matter. The investment is still expected to receive the greenlight, sources said.

REMEMBER- Cerebras Systems is reportedly looking to raise between USD 750 mn to USD 1 bn from its IPO, potentially valuing the company at USD 7-8 bn. G42 has already been subject to some reviews from US security regulators due to Microsoft’s USD 1.5 bn investment in the company that looked into any possible links with China amid heightened tensions between the US and China. The company has since reportedly divested all of its Chinese investments.

WATCH THIS SPACE-

#1- HSBC Middle East expects to see many tech companies in the GCC region go public over the coming 18 months, especially those focusing on education, healthcare, and logistics, co-head of Investment Banking for Mena and Turkey at the bank, Samer Deghaili, told Zawya. The UAE, Saudi Arabia, and Oman, in particular, are expected to raise a lot of capital via the stock markets in the coming months, experts surveyed by the newswire said.

The rationale: Tech companies are eyeing IPOs to leverage debt levels, fund marketing campaigns, and expand into new regions, CIO at UAE brokerage firm Century Financial, Vijay Valecha, said.

Remember- The ADX pipeline is heating up:

  • Abu Dhabi National Hotels’ catering unit ADNH Catering is looking to raise up to AED 864 mn in its IPO, the book building process for which kicked off this week;
  • IT services firm Alpha Data is reportedly planning to go public as soon as this year, where it could raise around USD 200 mn;
  • Supermarket chain LuLu Group is planning to list its shares on the ADX and Riyadh’s Tadawul in late October or early November, potentially raising as much as USD 1.85 bn;
  • ADQ is reportedly planning an IPO for Etihad Airways next year.

The DFM pipeline is also packed:

  • Germany-based Delivery Hero is planning to list Talabat’s shares on the DFM in 4Q 2024 ;
  • Construction firm Alec is reportedly planning a potential IPO in 2H 2024;
  • Amanat Holdings is looking to list its education and healthcare units, with reports that its healthcare unit could raise some USD 200 mn as soon as this year;
  • Shisha producer Advanced Inhalation Rituals is reportedly eyeing an IPO in 2024, where it could raise USD 800 mn;
  • Hospitality group Five Holdings is reportedly planning a potential DFM IPO next year.


#2- DFSA proposes amendments to capital requirements for certain companies: The Dubai Financial Services Authority is proposing new amendments that would remove the requirement for an expenditure-based capital minimum — a minimum threshold for liquid assets held by DFSA-authorized firms — for companies without client assets and adjust the size of the threshold for others, according to a consultation paper (pdf) it published. The changes to the prudential regime also include setting capital requirements according to different financial activities, and changing the risk regime for firms acting as agents rather than asset owners or managers. The consultation is open until 10 January, 2025.


#3- Dubai Holding is mulling setting up a real estate investment trust in a bid to capitalize on the city’s real estate boom, Bloomberg reports, citing people it says are familiar with the matter. The state-run investment firm reportedly tapped Citigroup, HSBC Holdings, and Emirates NBD Capital for the potential offering, with discussions still in the early stages. The trust’s size is yet to be agreed on, but it would include community developments that were recently transferred to Dubai Holding, the sources said.

REMEMBER- Dubai’s government-backed real estate firms Nakheel and Meydan merged into one entity held by Dubai Holding in March, with Emirates Group CEO Sheikh Ahmed bin Saeed Al Maktoum taking the helm. Dubai Holding used a AED 30 bn loan to refinance the debts of the two developers.


#4- More UAE-Nvidia cooperation? National Security Advisor Tahnoon Bin Zayed Al Nahyan met with Nvidia's CEO Jensen Huang to discuss their collaboration on advancing global climate technology and AI computing, according to an X post. The meeting comes a few weeks after Al Nahyan’s G42 and Nvidia said they are establishing a climate tech lab in Abu Dhabi.

REMEMBER- The UAE has been ramping up its AI partnerships with US tech giants: Abu Dhabi-based AI group G42 secured a USD 1.5 bn investment from Microsoft in April in a bid to have access to large-scale AI components. The UAE has already started receiving Nvidia chips as part of the partnership after the US approved their sale earlier this year.


#5- Federal export credit company Etihad Credit Ins. is gearing up to ink an MoU with Saudi EXIM Bank and Credit Oman in the coming days to support Emirati companies, the company’s CEO Raja Al Mazrouei told Asharq Business (watch, runtime: 05:48). The

move aims to streamline processes such as debt collection and settlement assessments.

The company’s credit coverage now amounts to AED 10.6 bn, extending across 110 countries and 17 non-oil sectors, including clean energy, infrastructure, information technology, and food security, Al Mazrouei said.


#6- The Financial Audit Authority is launching three new digital services — a database of firms under audit, a violations reporting platform, and a legislative platform — at the Gitex Global event next week, state news agency Wam reports.


#7- Hydrogen-powered tower coming soon? Saudi industrial group Rawabi Holding subsidiary Magnom Properties is planning to replicate its net-zero Forbes International Tower in Egypt in Saudi Arabia and the UAE with USD 5 bn in investments across the three countries, Rawabi Group CEO Othman Ibrahim told Asharq Business (watch, runtime: 2:54).

The company plans to invest more than USD 1 bn in each location, Magnom Properties CEO Maged Marie told Daily News Egypt earlier this week. If plans go ahead, Magnom intends to complete all three projects within five years, he added.

What we know about these towers: These 250-meter tall buildings include 50 floors and span an area of 100k sqm, according to Marie. The projects feature advanced technology from Schneider Electric and Germany’s H2 to power the tower by clean hydrogen transported to the building as a liquid, along with solar power. The buildings aim to be the world’s first hydrogen-powered and carbon-neutral skyscrapers.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- Flydubai suspended flights between Dubai and Beirut until 31 October on the back of the ongoing regional conflicts, Reuters reports, citing an emailed statement from the budget airline’s spokesperson. Passengers with existing bookings will be contacted for rebooking or refund options. Emirates earlier this month suspended flights to Beirut until October 15.

#2- Get rid of your oleander plants: The Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) banned the production and trading of oleander plants due to their toxic risks, Wam reports. Individuals and establishments have six months to remove them. Oleander grown for research is exempt with prior ADAFSA approval.

HAPPENING TODAY-

#1- Dubai International Chamber is now on the Turkey leg of its trade mission to Serbia and Turkey that runs until 11 October, aiming to help UAE businesses identify and capitalize on potential investments in Turkey. The program includes bilateral business meetings designed to foster cooperation, expansion, and the establishment of new trade and investment agreements between companies.

#2- The World Air Taxi Congress takes place through Thursday at the Grand Hyatt Dubai, showcasing the latest in aerial technologies, including eVTOLs, next-generation STOLs, eCTOLs, delivery and cargo drones, and the role of autonomy and AI in aviation.

#3- Dubai Chambers’ Center for Responsible Business is hosting the annual Dubai Chambers Sustainability Week 2024 until Friday. The activities of the week will focus on the intersection of technology and sustainability.

#4- The Global Trade and Supply Chain Summit is on its second and final day at the JW Marriott Hotel Marina. The event aims to address the evolving landscape of international trade and supply chains, focusing on overcoming challenges and leveraging solutions offered by new technologies.

#5- The Global Rail Transport Infrastructure Exhibition and Conference kicked off yesterday and runs until tomorrow at Adnec Abu Dhabi. The event gathers leaders and specialists from the rail and transport industries from the region and beyond to discuss smart mobility, greentech, and automation.

#6- The Regional Data and Community Development Forum kicks off today and runs until tomorrow at Al Jawaher Reception and Convention Center. Organized by the Department of Statistics and Community Development, the forum aims to bring together global experts and decision-makers to discuss the role of data in promoting sustainable social development.

#7- The National Summit on Financial Crime Compliance kicks off today and runs until tomorrow in Abu Dhabi, Wam reports. Organized by the Central Bank of the UAE, the summit brings together local regulatory bodies and global law enforcement authorities to discuss frameworks for combating financial crimes.

**EDITOR'S NOTE- This story was amended on 13 October, 2024 to remove incorrect information.

SPORTS-

The UAE gets its first national baseball team: Baseball United, a professional league based in the Middle East and South Asia, created the UAE's first national baseball team, approved by the Emirates Cricket Board, according to the company statement. The team will compete in the inaugural Arab Classic next month in Dubai, with Baseball United overseeing player selection, development, and participation in competitions.

THE BIG STORY ABROAD-

It’s a mixed bag in the foreign press this morning, as the intensification of the war in Gaza and Lebanon and Hurricane Milton in the US continue to grab headlines.

Israeli Prime Minister Benjamin Netanyahu said that Israeli airstrikes killed two successors to Hezbollah leader Hassan Nasrallah in a video on X, hours after Hezbollah seemed to drop demands for a ceasefire in Gaza as part of a ceasefire agreement for Lebanon. Netanyahu did not name the successors, but the video suggests that Hashem Safieddin, who was widely expected to succeed Nasrallah and who was reportedly killed last week, has been eliminated. (Reuters)

Israel had expanded its ground invasion of Lebanon yesterday with a fourth division deployed in the south of the country, as it continued with intense airstrikes that killed at least 36 people over the past day. (The Guardian | BBC)

Over in the US, Hurricane Milton is now a Category 5 storm as it heads towards Florida, with President Joe Biden saying the “devastating” storm could be the worst to hit the state in more than a century.

AND- Politics continue to be in focus: The latest Reuters/Ipsos poll showed Vice President and democratic candidate Kamala Harris leading Trump with 46% of votes, as opposed to Trump’s 43%.

IN THE BUSINESS PRESS- Samsung issued a rare apology yesterday after it warned of worse-than-expected 3Q earnings, adding that its high-end chips will see a delay in sales, and chalking up the decline in performance to one-off costs and higher supply of older products from Chinese rivals that have hit demand for its chips. (CNBC | Reuters | The Verge)

AND IN A SIGN OF THE TIMES- The Nobel prize for physics went to two researchers credited for laying the foundations for modern AI, US professor John Hopfield and British-Canadian professor Geoffrey Hinton. (The Guardian)

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CIRCLE YOUR CALENDAR-

Gitex Global will take place from October 14-18 at the Dubai World Trade Centre and Dubai Harbour. The event will showcase the latest innovations in technology, including AI, cybersecurity, cloud computing, and digital transformation. Leaders from large technology firms, government representatives, emerging startups, investors, and corporate buyers will participate.

Happening alongside Gitex is Expand North Star, which takes place on 13-16 October at the Dubai Harbour. The event will also include an AI startup competition — DMCCxAGCC: Global AI Challenge - Sustainability Edition — to identify innovative AI solutions that contribute to sustainability in the GCC region.

Fintech Surge will also take place alongside Gitex, bringing together over 12k investors and 100 exhibitors, serving as a platform for fintech firms to showcase their innovations. The Future Blockchain Summit will also take place as part of the event on 13-16 October.

The IEEE/RSJ International Conference on Intelligent Robots and Systems (IROS 2024) will take place between 14-18 October at Adnec Center Abu Dhabi — its first time in the Middle East. Hosted by Khalifa University of Science and Technology, the annual robotics conference will be attended by researchers, academics, and global industry professionals.

SuperBridge Summit will be held on 15-16 October at One Za’abeel in Dubai. Organized by the Dubai World Trade Center and Gitex, the event will gather business leaders, investors, and policymakers from Asia, Latin America, and the Middle East to discuss AI, innovation, and manufacturing in emerging markets.

The Sharjah International Conference on AI & Linguistics will take place on 17-18 October at the American University of Sharjah. The event will discuss and promote the integration of AI in linguistics.

The World Biohack Summit 2024 will take place on 18-19 October at the JW Marriott Hotel Marina in Dubai. The event aims to highlight innovations shaping the future of human potential, focusing on longevity, peak performance, age reversal, recovery, and mental health.

The Lease Conference Dubai 2024 will take place on 13-14 November at the Jumeirah Creekside Hotel. The event will bring together key players in the leasing industry — including lessors, suppliers, investors and bankers, and regulators — across the Middle East and Africa to discuss developments in the sector.

The 21st edition of the international property sales (IPS) Congress will take place on 14-16 April, 2025 at the Dubai World Trade Center. The event aims to facilitate networking in the real estate sector and features knowledge-sharing sessions focused on the latest trends and technologies in construction and property design.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

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Abu Dhabi is now the world's richest city in terms of capital managed by its sovereign wealth funds (SWFs), with assets amounting to USD 1.7 tn, according to a report by Global SWF. This positions Abu Dhabi ahead of other major cities such as Oslo, Beijing, and Singapore for the first time.

Breakdown of assets: The USD 1.7 tn includes assets from several key entities, including the Abu Dhabi Investment Authority (Adia), Mubadala (which encompasses Adic and Mubadala Capital), the Abu Dhabi Developmental Holding Company (ADQ), the Abu Dhabi Fund for Development (ADFD), Tawazun (including defense conglomerate Edge), and the Emirates Investment Authority (EIA). The capital managed by Abu Dhabi’s royal private offices is also estimated at USD 344 bn, although this is not included in the USD 1.7 tn assets.

Abu Dhabi also leads in human capital, employing 3.1k individuals across its SWFs, surpassing Singapore, Riyadh, Kuala Lumpur, and Dubai, which each employ over 1k staff.

Investment activity: In the first three quarters of 2024, Adia, Mubadala, and ADQ made investments worth a total of USD 36 bn globally. This accounted for two-thirds of the total investments made by all Gulf SWFs and represented 26% of global SWF investments during that period.

Sector breakdown: Capital was deployed into financials (20%), infrastructure (19%), real estate (17%), and in energy (17%). About one-sixth of these investments have historically been domestic, with significant allocations to markets such as the US, UK, Spain, India, and China — though the report did not clarify a time period for this figure.

Remember: GCC sovereign wealth funds invested USD 55 bn across 126 transactions in the first nine months of 2024. Key contributors to these investments include the Public Investment Fund, Adia, ADQ, Mubadala, and the Qatar Investment Authority, collectively known as the “Oil Five.”

Future projections: Global SWF sees Abu Dhabi’s assets under management rising to USD 2.3 tn by 2030, with total public capital reaching approximately USD 3.4 tn. This growth is expected to be supported by sustained high oil prices and projected fiscal surpluses estimated at around USD 60 bn over the next two years.

Dubai's status: Dubai ranks as the fifth richest city in the Mena region in terms of sovereign wealth fund capital, managing approximately USD 490 bn through entities such as the Investment Corporation of Dubai and the Dubai Investment Fund.

UAE cabinet gives green light to largest-ever budget: The cabinet approved an AED 71.5 bn budget for the country in 2025, making it the largest in the UAE’s history, state news agency Wam reports. The final spending plan sets out a 12% y-o-y increase in expenditure compared to 2024’s budget of AED 64.06 bn.

Revenues expected to grow: The government expects revenues to total AED 71.5 bn in 2025, up 9% y-o-y, and signaling a balanced budget, with revenues equating to expenditures.

Public and higher education will dominate social development and pension spending, comprising 15.3% of the budget, while healthcare and community prevention services and pensions will account for 8% each. Some 5.2% will go towards social affairs, and 2.5% for public services.

Here’s how the rest of the numbers break down:

  • Infrastructure and economic affairs: 3.6%
  • Financial investments: 4%
  • Other federal expenditures: 17.7%

ICYMI- The government approved a federal budget of AED 192 bn for 2024-2026 in October 2023. 

Abu Dhabi-based real estate developer Modon formed a JV with British tycoon Nick Candy’s family office Candy Capital to develop projects in the Mena region, according to a press release. The JV will focus on developing homes, while also looking at offices and hotels, Bloomberg reports. The new entity will mainly build on Modon’s existing pipeline and Candy-owned sites.

The details are scant: The JV’s work will mark the largest development Candy has been involved in since his luxury development in London, One Hyde Park, Candy told Bloomberg, without disclosing details on the exact projects or their locations.

REMEMBER- Modon is already working with the Candy family on the USD 35 bn Ras El Hekma megaproject in Egypt. The Emirati developer was recently appointed as the master developer for the project, and has signed an MoU with Candy International to look into developing luxury real estate.

Candy believes the UAE is a rising power in luxury real estate, as the country continues to attract m’naires with low taxes and crime rates and modern infrastructure, he told Bloomberg. He also hinted that there is room for better luxury real estate in the region, saying that some are nothing more than “mid-market house builder quality.”

Modon’s UAE pipeline is packed: The company is currently working on several projects in Hudayriat and Reem Islands in Abu Dhabi.

About Candy Capital: Founded in 2014 by Nick Candy and his brother, the privately-held family office invests in real estate, interior design, fintech, and digital media, as well as a number of other sectors.

The UAE’s net banking sentiment — or the public perception of banks — took a 13% y-o-y hit in 2023, largely due to operational shortcomings, according to PwC's banking sentiment index report (pdf). Online chatter about UAE banks grew by 10.7% y-o-y, with 108k conversations reflecting an increasing dependence on social media for banking interactions. Abu Dhabi Islamic Bank led the share of voice, followed by Dubai Islamic Bank.

Customer service woes accounted for the greatest amount of complaints: Turnaround time accounted for 80.6% of customer service-related complaints. Customer service volume was 49.5%, with a net sentiment of -89.0% in 2023. Delays in response through traditional channels like email and call centers amplified frustrations, leading to customer perceptions of staff incompetency and a decline in service quality. Call centers continued to be the channel with the highest number of complaints, while mobile apps became the most favored and least criticized option.

The frequency of responses to priority mentions improved to just over half of responses going unanswered, down from 72% the previous year, according to the report.

Products were the second most discussed topic this year, with a significant increase in conversation volume and a more dominantly negative sentiment. The sentiment distribution remained unchanged from last year, at 17% positive and 83% negative, suggesting a simultaneous rise in both favorable inquiries and complaints about bank offerings, particularly regarding credit cards and loans. While demand for these products remains high, they are also frequent sources of customer dissatisfaction, with issues like card malfunctions and loan application challenges contributing to the negative sentiment.

On the bright side: Investment products had a positive sentiment of 25.4%.

Digital security issues are escalating as banks face a surge in fraud and scams, prompting calls for enhanced cybersecurity measures, as sentiment fell -86.9%. Customers are increasingly frustrated by fraudulent transactions and app downtimes that hinder transactions, worsened by inadequate support. Fraud reports increased by 5 percentage points y-o-y, the report said.

Incumbent banks > digital in terms of sentiment: Incumbent banks accounted for over 90% of conversation on X and achieved a net sentiment score higher by 30.9 percentage points than digital banks, according to the report. This is largely due to customer service issues.

UAE startups led the region in secured funding rounds with a total of 134 in the first nine months of 2024, according to Magnitt's venture investment summary report (pdf). This accounted for 38% of all funding rounds in the Mena region, and marked a 12% y-o-y increase.

The UAE came in second in the Mena region and fourth across emerging markets in terms of value of funding, with USD 380 mn in funding during the period, down 18% y-o-y.

UAE-based venture capital firm PlusVC emerged as the region’s fourth largest investor in terms of the number of startups it provided funding for.

THE REGIONAL PICTURE-

Mena's venture capital market raised USD 1.32 bn, reflecting a 13% decline from the previous year. Despite this downturn, non-megadeal funding increased by 30% y-o-y, indicating sustained support for early-stage ventures. The region recorded a total of 352 investments, marking a slight 6% drop year-over-year, which outperformed other emerging markets like Africa and Southeast Asia, which saw declines of 42% and 28%, respectively. Emerging venture markets — including ones outside the region — witnessed a 45% y-o-y dip in funding, raising USD 4.9 bn in the first nine months of 2024.

The number of investors in Mena rose by 34% to 386, with international investors leading the charge, accounting for 51% of all investors in the region for the first time in over five years. Exits declined by 50% with 17 recorded exits across the region.

Fintech remained dominant, securing approximately USD 480 mn in investments and capturing 37% of total funding in Mena. E-commerce and retail experienced declines in funding, while there was renewed interest in enterprise software as well as transport and logistics.

Could 2024 end on a high note? “With global trends pointing towards lower interest rates and an uptick in investment activity, Q4 2024 will be a crucial period. All eyes are on whether we can exceed last year’s performance,” said Magnitt CEO Philip Bahoshy.

Skadden, Greenberg Traurig, and Revolut appoint key leaders in UAE

Global neobank and financial technology company Revolut, appointed Ambareen Musa (LinkedIn) as the CEO of its UAE office, according to a Linkedin post . Musa has years of experience in the fintech sector, including as the founder and CEO of Yabi, a financial education platform.

REMEMBER- Revolut has filed for licenses to become an electronic-money institution and offer remittances in the UAE, an initial step it’s taking ahead of applying for a full banking license. Abu Dhabi sovereign wealth fund Mubadala also acquired a stake in the fintech as part of the USD 500 mn share sale in August, which valued the company at USD 45 bn.


New York-based law firm Skadden appointed Michael Hilton (LinkedIn) as the head of its new office in Abu Dhabi, its first in the Middle East, Law Middle East reports. A specialist in corporate law, Hilton previously worked as regional managing partner at Freshfields Bruckhaus Deringer, a position he held since July 2022. He spent nearly 24 years at Freshfields, including the last decade as a partner in the mergers and acquisitions team based in Dubai and Abu Dhabi.

Global law firm Greenberg Traurig has expanded its International Arbitration & Litigation Practice with the addition of Nassif BouMalhab (LinkedIn) as a shareholder in its UAE office, according to a press release. BouMalhab joins the firm from Clyde & Co, where he was a partner and led the Middle East arbitration group.

ENERGY-

NMDC’s ADX-listed EPC unit NMDC Energy secured an AED 5.05 bn contract from state-backed developer Modon Holding for marine dredging, reclamation and ground improvement works in Abu Dhabi, according to an ADX disclosure (pdf). No further details on the project were disclosed.

Background: NMDC has several projects in the pipeline across the GCC, with a backlog of AED 54 bn of projects as of the end of August. This includes a USD 254.6 mn contract with Adnoc to establish a new gas pipeline and its associated facilities. The company will also establish a USD 100 mn fabrication manufacturing facility in Abu Dhabi’s Khalifa Economic Zone (Kezad). The company’s EPC unit, NMDC Energy, raised AED 3.22 bn from its IPO on the ADX last month.

BANKING-

Abu Dhabi investment promotion agency The Abu Dhabi Investment Office (ADIO) has chosen HSBC as its banking partner in Asia, covering outbound and inbound investments and encouraging HSBC’s clients in the continent to set up shop in the capital, according to a press release. The two sides will organize events to promote investment prospects in Abu Dhabi.

HSBC will also help connect ADIO with business in Europe, the UK, and the Americas, the statement added.

TRANSPORT-

Abu Dhabi, Al Ain, and Al Dhafra will get taxi meter verification services at select locations before the end of this year under a new partnership between Abu Dhabi’s Integrated Transport Centre (Abu Dhabi Mobility), Abu Dhabi Quality and Conformity Council (QCC), and Adnoc Distribution, according to a statement from Abu Dhabi Mobility.

BUSINESS-

Dubai Chambers inked an MoU with Serbia’s Chamber of Commerce and Industry to facilitate cross-border cooperation between businesses, according to the Dubai Media Office. The partnership will see both work together on arranging trade missions, conferences, and business events. This came during a Dubai trade mission in Serbia, which included 13 private sector companies from sectors like electronics, food and beverages, IT, and energy.

HEALTHCARE-

The Sharjah Executive Council greenlit the establishment of the Sharjah Healthy Cities Network in the first initiative of its kind in the region, Sharjah 24 reports. The network aims to enhance collaboration in implementing health and well-being policies across the emirate in line with the World Health Organization's Healthy Cities program.

INVESTMENT-

The Abu Dhabi Fund for Development pledged a AED 370 mn investment to support Jordan’s efforts in digitizing its healthcare sector, according to the fund’s press release. The initiative will see the deployment of an integrated system for health information management, in addition to establishing an advanced virtual hospital, which will act as a hub for peripheral hospitals.

ICYMI- State-run big data analytics firm Presight was tapped by Jordan’s Digital Economy and Entrepreneurship Ministry last month to support the digitalization of the country’s healthcare sector.

UTILITIES-

InfraX, Dicode set to facilitate gas companies’ migration to smart meters: Dubai Electricity and Water Authority’s IT arm InfraX partnered with IT services company Dicode to help gas companies replace analog meters with smart meters, according to a press release.

LOGISTICS-

#1- Sharjah International Airport onboarded UPS Global, which will now operate four weekly cargo flights to various destinations worldwide, Wam reports.

#2- Italy’s Raccortubi opens a warehouse in Sharjah: Italian steel supplier Raccortubi, a subsidiary of Commerciale Tubi Acciaio, inaugurated a AED 25 mn warehouse in Sharjah’s Hamriyah Freezone to support oil and gas projects in the region, Wam reports.

INS.-

Fitch Ratings assigned the UAE-based Union ins. a first-time ins. financial strength rating of BBB with a positive outlook, according to a statement from the credit rating agency. The company’s improved financial performance after discontinuing several unprofitable lines of business, in addition to strong capitalization and reins. protection underpinned Fitch’s rating. The agency expects Union’s profitability to further improve over the next 18 to 24 months.

China’s stock rally slows as investors await more details on stimulus plans: Chinese officials speaking at a press conference expected to unveil details of its planned stimulus package failed to deliver the bold measures investors had hoped for, throwing a wrench in the country’s equity rally, Reuters reports. The country’s markets had initially opened strong following the country’s Golden-Week Holiday, climbing to their highest levels in over two years. Policymakers had announced last month the largest stimulus package since the pandemic late last month in a bid to kickstart the economy.

By the index: The Shanghai Composite closed 4.6% higher, while blue-chip CS1300 gained 5.9% as both benchmarks rolled back some of the double-digit gains seen earlier in the day. Meanwhile, Hong Kong’s Hang Seng Index fell 9.4%, marking its worst single-day drop since 2008 after raking massive gains in recent weeks, the newswire said. The exchange’s mainland properties subindex (HSMPI) recorded its largest-ever single-day drop, closing down 15.5%. However, analysts suggest the drop is in great part due to traders closing out their weekly gains.

Spillover: China-linked assets also took hits on the back of Tuesday’s reset. Australia’s AUD, the CNY, and iron ore were all in the red, Reuters said. Mining stocks and European luxury stocks also fell.

Stimulus details fell far short of what was hoped for: Economic planner chairman Zheng Shanje’s announcement that some CNY 200 bn (USD 28.6 bn) were being reallocated from next year’s budget to support projects and municipal government fell far short of what market watchers expected, the newswire said. Analysts had forecasted a fiscal package to the tune of CNY 3 tn (USD 425 bn), Bloomberg reports. The stimulus package outlined so far has been heavy on monetary easing, but the fiscal measures investors are waiting for have so far failed to materialize.

What investors are going to be looking for: “Ultimately for the rally to be sustainable, we need to see more fiscal policy and more measures to support the economy and the property market,” Reuters cites managing director of investment strategy at OCBC in Singapore Vasu Menon as saying.

Next up: China’s Finance Ministry is expected to make an announcement in upcoming days that may outline the fiscal shot in the arm everyone is waiting for. Morgan Stanley and HSBC Holdings have penciled in some CNY 2 tn in fiscal measures, with Citigroup citing a larger CNY 3 tn forecast.

MARKETS THIS MORNING-

It’s a mixed bag this morning, as Asian markets are just barely in the green in early trading, with Japan’s Nikkei leading the pack. Meanwhile, futures indicate US equity markets are on track to open in the red.

ADX

9,259

+1.2% (YTD: -3.3%)

DFM

4,429

+0.8% (YTD: +9.1%)

Nasdaq Dubai UAE20

3,776

+2.1% (YTD: -1.7%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

4.7% o/n

4.1% 1 yr

TASI

12,027

+1.0% (YTD: +0.5%)

EGX30

30,852

-3.0% (YTD: +23.9%)

S&P 500

5,751

+1.0% (YTD: +20.6%)

FTSE 100

8,191

-1.4% (YTD: +5.9%)

Euro Stoxx 50

4,949

-0.4% (YTD: +9.5%)

Brent crude

USD 77.56

-4.2%

Natural gas (Nymex)

USD 2.73

-0.5%

Gold

USD 2,635

-1.2%

BTC

USD 62,364

-1.1% (YTD: +47.4%)

THE CLOSING BELL-

The ADX rose 1.2% yesterday on turnover of AED 1.17 bn. The index is down 3.3% YTD.

In the green: Abu Dhabi National Co. for Building Materials (+7.4%), Apex Investment (+6.9%) and Al Dar Properties (+6.2%).

In the red: Aram Group (-9.9%), Ghitha Holding (-3.3%), and AD Ports (2.8%).

Over on the DFM, the index closed up 0.8% on turnover of AED 403.9 mn. Meanwhile Nasdaq Dubai closed down 1.7%.

Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum met with several Kuwaiti officials to discuss ramping up bilateral ties and cooperation in several sectors. The highlights from the visit:

  • The crown prince discussed boosting cooperation in the military and defense sectors with Kuwait’s First Deputy Prime Minister and Defense and Interior Minister Sheikh Fahad Yusuf Saud Al Saba, according to a statement ;
  • He also met with Kuwaiti Crown Prince Sheikh Sabah Khaled Al Hamad Al Sabah to discuss cooperation in trade, tourism, economy, and investment, Wam reports;
  • and met with Kuwaiti Prime Minister Sheikh Ahmed Abdullah Al Ahmad Al Sabah to boost cooperation across several sectors, Wam reports separately.

OCTOBER

6-11 October (Sunday-Friday): Dubai International Chamber to head out for a trade mission to Serbia and Türkiye.

7-9 October (Monday-Wednesday): AccessAbilities Expo, Dubai World Trade Centre.

7-10 October (Monday-Thursday): The World Air Taxi Congress, The Grand Hyatt Dubai, Dubai.

7-11 October (Monday-Friday): The Annual Dubai Chambers Sustainability Week 2024, Dubai Chambers’ Centre for Responsible Business, Dubai.

8-9 October (Tuesday-Wednesday): Global Trade and Supply Chain Summit, Dubai.

8-10 October (Tuesday-Thursday): The Global Rail Transport Infrastructure Exhibition and Conference (Global Rail), Adnec Centre, Abu Dhabi.

9-10 October (Wednesday-Thursday): The Regional Data and Community Development Forum, Al Jawaher Reception and Convention Centre, Sharjah.

10 October (Thursday): DXBAPEX500 Summit and DIFC Workshop, Dubai International Financial Centre, Dubai.

10-13 October (Thursday-Sunday): The Abu Dhabi Grand Slam Judo tournament, Mubadala Arena.

11-13 October (Friday-Sunday): Excellence in Oncology Care 2024, Intercontinental Festival City, Dubai.

13-14 October (Sunday-Monday): Abu Dhabi Wedding Show, Park Hyatt Abu Dhabi.

13-16 October (Sunday-Wednesday): DMCCxAGCC: Global AI Challenge *Sustainability Edition, Dubai.

13-16 October (Sunday-Wednesday): Expand North Star, Dubai Harbour.

13-16 October (Sunday-Wednesday): Fintech Surge, Dubai Harbour.

13-16 October (Sunday-Wednesday): Future Blockchain Summit, Dubai Harbour.

14-18 October (Monday-Friday): IEEE/RSJ International Conference on Intelligent Robots and Systems, Adnec Centre, Abu Dhabi.

14-18 October (Monday-Friday): Gitex Global, Dubai World Trade Centre and Dubai Harbour.

15-16 October (Tuesday-Wednesday): SuperBridge Summit 2024, Dubai World Trade Centre, Dubai.

18-19 October (Friday-Saturday): World Biohack Summit 2024, JW Marriott, Dubai Marina.

20-23 October (Sunday-Wednesday): The 63rd International Congress and Convention Association (ICCA) Congress, Abu Dhabi National Exhibition Centre, Abu Dhabi.

21-22 October (Monday-Tuesday): Port Development MEA Forum, Dubai.

21-22 October (Monday-Tuesday): Roads, Bridges, Tunnels MENA Conference, Dubai.

21-22 October (Monday-Tuesday): The Alternative Investment Summit, Dubai.

23-26 October (Tuesday-Saturday): World Stroke Congress, Adnec Centre, Abu Dhabi.

24 October (Thursday): Game Changers - Dubai Real Estate Summit, Coca-Cola Arena, Dubai.

24-27 October (Thursday-Sunday): International Sports Medicine Conference, Dubai.

26 October (Saturday): UFC 308: TOPURIA vs HOLLOWAY, Etihad Arena, Abu Dhabi.

26-27 October (Saturday-Sunday): International Conference on Tourism, Transport, and Logistics, Dubai.

27-30 October (Sunday-Wednesday): IEEE - International Conference on Image Processing, Adnec Centre, Abu Dhabi.

28-29 October (Monday-Tuesday): MENA Climate Proof Forum, Dubai.

29 October-2 November (Tuesday-Saturday): Abu Dhabi Early Childhood Week, Abu Dhabi.

30 October-1 November (Wednesday-Friday): World Cities Cultural Summit, Dubai.

30 October (Wednesday): Connected Construction Conference, Museum of the Future, Dubai.

30-31 October: Sixth edition of Binance Blockchain Week, Coca-Cola Arena, Dubai.

NOVEMBER

3-10 November (Sunday-Sunday): Dubai Premier Padel P1, Dubai Duty free Tennis Stadium, Dubai.

4-7 November (Monday-Thursday): Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC), Abu Dhabi.

4-7 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi.

4-7 November (Monday-Thursday): ADIPEC Decarbonisation Accelerator, Abu Dhabi.

6 November (Friday): World Finance Forum, Dubai.

6-8 November (Friday-Sunday): UAE BioTech Symposium, Masdar City, Abu Dhabi.

6-17 November (Friday- Sunday) Sharjah International Book Fair, Expo Center Sharjah, Sharjah.

11 November (Monday): Dubai Diamond Conference, Jafza One Convention Centre, Dubai.

11-12 November (Monday-Tuesday): META Cinema Forum, Dubai.

13-14 November (Wednesday-Thursday) Lease Conference Dubai 2024, Jumeirah Creekside Hotel, Dubai.

18-20 November (Monday-Wednesday): Fastmarkets Middle East Iron & Steel 2024, Dubai.

19-20 November (Tuesday-Wednesday): Dubai Future Forum.

20-22 November (Wednesday-Friday): Xpanse Abu Dhabi, Adnec Centre, Abu Dhabi

22-23 November (Friday-Saturday): Global Meet on Electronics & Electrical Engineering (GMEEE), Dubai.

22-24 November (Friday-Sunday): Michelin Guide Food Festival, Emirates Palace Mandarin Oriental, Abu Dhabi.

23 November (Saturday): Wireless Festival Middle East, Etihad Park, Abu Dhabi.

23-24 November (Saturday-Sunday): Emirates Dubai Sail Grand Prix, SailGP Race Stadium.

26-27 November (Tuesday-Wednesday) Global Food Security Summit, Adnec Centre Abu Dhabi.

26-29 November (Tuesday-Friday): Big 5 Global, Dubai World Trade Centre.

26-27 November (Tuesday-Wednesday): Global Women’s Forum Dubai, Madinat Jumeirah, Dubai

27-28 November (Wednesday-Thursday): RAK Energy Summit, Al Hamra International Exhibition and Conference Centre, Ras Al Khaimah.

28 November-1 December (Thursday-Sunday): Spartan World Championship, Al Wathba Desert, Abu Dhabi.

30 November (Saturday): Football Legends Cup, Al Maktoum Stadium Al Nasr Sports Club, Dubai.

Signposted to happen ahead of ADIPEC:

  • Changemakers Majlis, Abu Dhabi.

DECEMBER

2-3 December (Monday-Tuesday): National Day, public holiday.

5-8 December (Thursday-Sunday): Formula 1 Etihad Airways Abu Dhabi Grand Prix, Yas Marina Circuit.

8-12 December (Sunday-Thursday): International Desalination and Reuse Association World Congress, Adnec Centre Abu Dhabi.

9-10 December (Monday-Tuesday): The Bitcoin Mena Conference, Adnec Centre Abu Dhabi.

9-12 December (Monday-ThursdayTuesday): Abu Dhabi Finance Week, Abu Dhabi.

9-12 December (Monday-Thursday): World Conference on Desalination and Water Re-use 2024, Adnec Centre, Abu Dhabi.

9-12 December (Monday-Thursday): IEEE International Conference on Data Mining 2024, Adnec Centre, Abu Dhabi.

10-12 December (Tuesday-Thursday): Middle East Investor Relations Association (MEIRA Conference), Conrad Abu Dhabi Etihad Towers Hotel, Abu Dhabi.

10-12 December (Tuesday-Thursday): The Middle East and North Africa Business Aviation Association Show, Al Maktoum International Airport, Dubai.

11-13 December (Wednesday-Friday): European-Arab Medical Congress, Abu Dhabi.

14-21 December (Saturday-Saturday): World Schools Festival, Abu Dhabi

16-20 December (Monday-Friday): AIMS Conference 2024, Adnec Centre, Abu Dhabi.

6 December-12 January: Dubai Shopping Festival.

Signposted to happen sometime in December:

JANUARY 2025

1 January (Wednesday): ADGM to slash licensing fees for retail and non-financial firms, and hike fees for finance firms.

9-13 January (Thursday-Monday): International Renewable Energy Agency Youth Forum, Abu Dhabi.

11-13 January (Saturday-Monday): International Renewable Energy Agency Assembly, Abu Dhabi.

14-16 January (Tuesday-Thursday): World Energy Summit, Abu Dhabi.

14-16 January (Tuesday- Thursday): The Light + Intelligent Building Middle East exhibition, Dubai.

20-22 January (Saturday-Monday): FESPA Middle East, Dubai World Trade Centre, Dubai.

FEBRUARY 2025

1-8 February (Saturday-Saturday): The Mubadala Abu Dhabi Open, Zayed Sports City's International Tennis Centre.

2-3 February (Sunday-Monday): L’Etape Dubai cycling race, Dubai.

16 February-1 March: Dubai Duty Free Tennis Championships, Dubai Duty Free Tennis Stadium in Al Garhoud.

24-25 February (Monday-Tuesday): World Passenger Experience Forum, Dubai.

24-26 February (Monday-Wednesday): Connecting Hydrogen MENA, Dubai.

Signposted to happen sometime in 1Q 2025:

  • The first eight fronds of the Palm Jebel Ali will be site-ready, allowing for the commencement of villa infrastructure and civil works.

APRIL 2025

6-11 April (Sunday-Friday): Geo-Spatial Week 2025, Dubai.

7-9 April (Monday-Wednesday): AIM Investment Summit, Abu Dhabi National Exhibition Center

14-16 April (Monday-Wednesday): Dubai Woodshow’s 21st Edition, Dubai World Trade Center

14-16 April (Monday-Wednesday): IPS congress, Dubai World Trade Center.

16-18 April (Wednesday-Friday): World Future Energy Summit, Abu Dhabi National Exhibition, Abu Dhabi.

28 April-1 May (Monday-Thursday): The Arabian Travel Market 2025, Dubai World Trade Center

Signposted to happen sometime in April:

MAY 2025

6-7 May (Tuesday-Wednesday): Global Ports Forum, Dubai.

26-28 May (Monday-Wednesday): Arab Media Summit, World Trade Center, Dubai.

OCTOBER 2025

27-29 October (Monday-Wednesday): Asia Pacific Cities Summit, Dubai Exhibition Center.

Signposted to happen sometime in 2025:

  • The Middle East Electric Vehicle Show, Expo Center Sharjah.
  • e& will complete Adnoc’s private 5G network.
  • Executive Committee Meeting (EXCOM 2025) conference of the World Smart Sustainable Cities Organisation (WeGO)
  • The International Civil Aviation Organization’s Global Implementation Support Symposium, Abu Dhabi.

Signposted to happen sometime in the fall of 2025:

  • 2025 Games of the Future, Dubai.

Signposted to happen sometime in 2026:

  • The UAE to host the Arab Competition Forum
  • Dubai to host the Arab Actuarial Conference
  • United Nations Water Conference 2026, UAE

Signposted to happen sometime in 2028:

  • Abu Dhabi to host the Chess Olympiad.

Signposted to happen sometime in 2029:

  • Dubai to host the International Conference on Computer Vision.
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