Good morning, wonderful people. We have a bumper issue for you today, as the Fed (finally) makes a bold 50 bps rate cut to kickstart its easing cycle, prompting the Central Bank of the UAE to follow in its footsteps. It’s also a big day on the M&A front, with Brookfield and FAB’s acquisition of Network going through, and PJT Partners agreeing to acquire Dubai advisory firm DeNovo Partners. Without further ado, let’s dive in.

HAPPENING NEXT WEEK-

President Sheikh Mohamed bin Zayed Al Nahyan will make his first official visit to the US next Monday, state news agency Wam reports. Al Nahyan is scheduled to meet with US President Joe Biden to discuss bilateral ties, including cooperation on economy, investment, technology, AI, space, and renewables and climate action, Wam said. Al Nahyan is also set to meet separately with Vice President and presidential hopeful Kamala Harris.

Topics on the agenda will also include the wars in Gaza and Sudan, Reuters quotes White House spokesperson John Kirby as saying.

REMEMBER- The US and the UAE have a budding AI partnership that just got a boost this week, with reports that Nvidia has begun to send its chips our way as a marker of the start of an important phase in the partnership between Microsoft and state-owned AI firm G42.

WATCH THIS SPACE-

#1- Private companies must reserve at least one seat for women on their boards of directors starting January 2025, as per a new decision from the UAE Economy Ministry, according to a Dubai's Media Office statement. Companies will be required to meet the quota following the end of their current board’s term.

Background: The Securities and Commodities Authority made it mandatory for listed companies to have at least one woman on their board in 2021.

#2- The UAE and Japan have agreed to launch negotiations for an economic partnership agreement, in a bid to ramp up UAE-Japan bilateral economic relations, President Mohamed bin Zayed Al Nahyan said on X. Japanese Prime Minister Fumio Kishida also confirmed the news in an X post. Negotiations will come in parallel with talks over a wider GCC agreement,

UAE-Japan relations have been growing stronger: Earlier in July, UAE Ministers met with Japan’s Kishida to discuss bilateral economic ties and progress on projects under their strategic partnership. Multiple MoUs were signed during the visit, with Adnoc and Japan Bank for International Cooperation sealing a USD 3 bn green financing loan to advance Adnoc’s low-carbon ambitions.

ALSO- Trade agreement with the EU coming? The EU is reportedly considering pursuing a trade agreement with the UAE as negotiations for a separate agreement with the GCC stalls, Bloomberg cites people familiar with the matter as saying. The caveat would be finding an arrangement that would not affect the wider GCC agreement, and would not upset other countries in the GCC, sources said.

#3- Sharjah will issue an AI-powered trade license that takes five minutes to process, in partnership with Microsoft, state news agency Wam reports. Announced at the Sharjah Investment Forum, the license will first be available through the Sharjah Investor Services Center (Saeed) and SPC Free Zone, and will later cover other freezones across Sharjah.

#4- The UAE plans to review its 2050 energy strategy in five years, focusing on advancements in hydrogen, battery technology and energy storage, Undersecretary for Energy and Petroleum Affairs Sharif Al Olama told CNBC Arabia (watch, runtime 2:20).

The country’s renewable energy production capacity has reached 6 GW, nearly half of its target of 14.2 GW by 2030. The UAE plans to invest more than USD 50 bn in renewable and clean energy over the next six years, building on the USD 45 bn already invested in the past 15 years.

HAPPENING TODAY-

WEATHER- We have another hot and sunny day in Dubai with a peak of 36°C and overnight low of 30°C. Over in Abu Dhabi, the mercury is set to hit 37°C before cooling to 32°C in the evening.

#1- The Intelligent Transport Systems World Congress 2024 is on its third day today, and will run until Friday, 20 September in Dubai. The congress is expected to welcome 20k participants to explore innovations in smart mobility and transportation technology.

#2- The Sharjah Investment Forum ends today at the Jawaher Reception and Convention Centre in Sharjah. Discussions will span across investments in emerging markets and in the UAE, smart cities and economies, and more.

#3- Forbes’ Healthcare Leaders Summit 2024 will take place today and tomorrow at the St. Regis Saadiyat Island Resort, Abu Dhabi. The event gathers healthcare leaders from across the region to discuss innovation in healthcare and sustainability in the industry.

DATA POINTS-

Dubai, Abu Dhabi, and Sharjah are on track to see 150% more centi-m’naires — individuals with more than USD 100 mn in liquid assets — between now and 2040, according to British consultant company Henley and Partners’ Centi-M'naire Report 2024.

Dubai ranked 15th globally for centi-m’naires, hosting 212, while neighboring Abu Dhabi was positioned at 50th with 68 centi-m’naires. Sharjah secured a spot in the report’s “Cities to Watch ” list, with 11 centi-m’naires under its belt.

THE BIG STORY ABROAD-

Even with everything going on in the world, the Fed’s decision to cut interest rates is topping the headlines in the international business press. US Federal Reserve chair Jerome Powell announced late yesterday that the Fed had voted to lower interest rates by half a percentage point in its first rate cut since 2020, bringing the benchmark federal funds rate to between 4.75% and 5%. In its statement on the decision, the Fed noted that the decision reflects “greater confidence that inflation is moving sustainably toward 2%.”

Gulf policymakers followed suit late yesterday, with the central banks of Saudi Arabia, the UAE, and Bahrain lowering their interest rates by 50 basis points, Qatar lowering rates 55 points, and Kuwait lowering rates by 25 basis points.

** We’ve got the complete rundown of the Fed’s decision to cut rates, what happens next, and how the market reacted in our Planet Finance section, below.

WHILE IN OUR CORNER OF THE WORLD- Lebanon was hit yesterday with yet another set of Israeli device explosions as Hezbollah continues to reel from what has been described as the most significant penetration of the armed group’s communication networks since the beginning of the war on Gaza. The latest set of explosions were of the group’s hand-held radios, which killed 20 and injured over 450 in Lebanon's single deadliest day since Hezbollah and Israeli forces began exchanging fire over the border nearly a year ago. The episode has further heightened fears of an escalation on the Lebanese-Israeli border, with Hezbollah secretary-general Hassan Nasrallah set to give an address today.

AND OVER IN TECH NEWS- Google will not have to pay a EUR 1.5 bn fine levied on the company by the European Commission after winning an appeal, though the court accepted the commission’s assessment that the tech giant had engaged in anticompetitive practices with regard to its online advertising business. The decision marks a victory for big tech in the EU’s recent antitrust crusade just as Meta comes under scrutiny by the commission for anticompetitive practices linked to its Marketplace services, with a decision on the case — and an appropriate fine — to be decided as early as next month.

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