Good morning, wonderful people. It’s officially back-to-school season, and judging by the amount of crowds at the malls this weekend, the country seems back at full capacity.

We have a brisk issue for you this morning, led by news of our foreign trade reaching new records in 1H 2024, and the Abu Dhabi Investment Authority submitting a final bid as part of a consortium for DB Schenker.

BUT FIRST- We have big news for you this morning: EnterpriseAM UAE is now available in Arabic, with the first issue sent shortly after this one. Tap or click here to subscribe and get EnterpriseAM UAE in Arabic directly to your inbox everyday before 8am.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- REMINDER- Resident legal entities with licenses issued in June of any year should submit their corporate tax registration applications by the end of August, the Federal Tax Authority said on X. Registrations can be made via the EmaraTax digital tax services platform, or through accredited tax agents and government service centers across the UAE. Corporates with multiple licenses should register using the license with the earliest issuance date.

#2- Emirates, Etihad Airways, and flydubai canceled and diverted Tel Aviv and Beirut flights yesterday following an exchange of fire between Israel and Hezbollah that resulted in the closure of Israel’s Ben Gurion airport, Khaleej Times reported. “Flights today are currently scheduled to operate following the reopening of Ben Gurion Airport. We will continue to monitor the situation closely and amend our schedule accordingly,” a flydubai spokesperson was quoted as saying by the outlet. Israel's Civil Aviation Authority said on Sunday that flights to and from Ben Gurion Airport in Tel Aviv resumed following a short suspension amid Israeli military strikes in Lebanon.

ICYMI- Israel carried out what it said was a pre-emptive attack on Hezbollah sites in southern Lebanon, striking Lebanon with around 100 warplanes that took out thousands of rocket launchers. Hezbollah responded by launching hundreds of rockets and drones at Israel targeting 11 army barracks and military sites in northern Israel, in what it said was the start of its retaliation for the killing of its commander on 30 July at the hands of Israeli forces. An Israeli military spokesman said that Israel’s operation in Lebanon is “over for now,” while Hezbollah said that the rest of its retaliation would take “some time.”

HAPPENING THIS WEEK-

#1- The UAE will attend Turkey’s Development Road Summit on Thursday to discuss the possible USD 20 bn project aimed at connecting the Iraqi port of Basra to the Persian Gulf to Turkey, Al Monitor reported, citing Turkish Transport Minister Abdulkadir Uraloglu’s Friday remarks. The quadripartite summit — which will also see the participation of Iraq and Qatar — will discuss the details of the project.

REMEMBER- The UAE, Iraq, Turkey, and Qatar signed a preliminary agreement back in April to work together on the Development Road project in Iraq, which aims to connect a significant commodities port on Iraq's southern coast — the Grand Faw Port — to Turkey's border via rail and road networks.

#2- Emirati cyclist Ahmed Al Badwawi and track and field athlete Maryam Al Zeyoudi will be among 14 athletes participating in the Paris 2024 Paralympic Games, Al Etihad News reported. Al Badwawi will be participating for the first time, while 2023 Asian Games athletics champion Al Zeyoudi will make her second appearance. The UAE is participating with 14 athletes in shooting, athletics, weightlifting, judo and cycling.

WATCH THIS SPACE-

#1- NMDC Energy’s IPO gets the board’s nod: The National Marine Dredging Company (NMDC) Group ’s board approved a plan to IPO its EPC unit NMDC Energy on the Abu Dhabi Securities Exchange (ADX), according to a bourse disclosure (pdf).

What’s next? The proposal is now pending regulatory approvals from the Securities and Commodities Authority and the ADX. Details on the size or value of the IPO have not been disclosed.

#2- Rents in some areas of Abu Dhabi could jump as high as 30% in the wake of the rental index launch, Khaleej Times reported, citing industry experts. However, the adjustments, expected in areas where rates are below the market average, are expected to take place gradually, as Abu Dhabi has a 5% cap on rent hikes when contracts are renewed.

What they said: “While the rental index may help identify areas where prices are significantly out of line with market norms, it’s unlikely to cause dramatic shifts in rental rates. Instead, it can serve as a valuable tool for both tenants and landlords to negotiate fair prices and make informed decisions,” Metropolitan Capital Real Estate’s CEO Evgeny Ratskevich said.

Background: The Abu Dhabi Real Estate Centre rolled out its rental index last week, providing indicative quarterly rental pricing and data on residential, commercial, and industrial properties in the emirate.

#3- UAE-Saudi consortium backs out of plan to redevelop central Cairo landmark building: A consortium of Al Shafar General Contracting (ASGC) Group and Saudi Egyptian Developers (SED) has backed out of an agreement to work on the USD 5 bn redevelopment of Egypt’s former National Democratic Party (NDP) headquarters in central Cairo due to increased construction costs following the EGP float, Asharq Business reports, citing an unnamed official within the consortium. The redevelopment plan came with a price tag of USD 5 bn to be invested in a 7-star, 220-meter high hotel, residential buildings, and a multi-storey garage.

The why: The consortium’s share in its partnership with the Sovereign Fund of Egypt — which was tied to land and building prices — was altered following the currency's depreciation and the resulting surge in raw material and energy prices.

The two companies could still end up developing the project if their shares in the project are adjusted, the consortium source noted.

DATA POINTS-

#1- Demand for Dubai’s short-term rental market climbed 30% y-o-y over the past year, driven by growing tourism and a shift towards “flexible living options,” Myles Rothwell, Managing Director at Edwards and Towers, said in a Property Finder report picked up by Zawya. The uptick offered real estate investors annual yields of up to 20%, compared to long term rentals offering around 7% on average, Rothwell added.

The rental market’s growth is unlikely to slow down, with the anticipated influx of visitors to the emirate during winter expected to keep short-term rentals in demand, the report read. In addition, digital nomads seeking short-term rentals as remote work grows is expected to keep demand levels on the rise, General Manager at Blueground Nina Klishevich said.

Could the rental market boom spur M&A activity? While the short-term rental market is rapidly growing, the top five real estate firms account for less than 10% of the offerings, which could see consolidation activity growing within the next two years, Klishevich forecasts.

#2- UAE national carriers now serve 606 destinations, up 3.4% y-o-y, with strong tourism and business reputation, as well as increased travel demand, driving national carriers to expand their routes and destinations, Wam cites the General Civil Aviation Authority (GCAA) as saying. Emirates flies to the biggest number of destinations, serving over 144 routes, followed by Air Arabia (218), flydubai (125), Etihad Airways (79), and Wizz Air Abu Dhabi (40).

The GCAA predicts passenger traffic will hit 140 mn this year, after increasing 14.2% y-o-y in 1H 2024 to 71.8 mn passengers, Wam reports. Etihad Airways aims to expand its network to 125 destinations by 2030 to meet the demand, targeting some 33 mn passengers annually.

THE BIG STORY ABROAD-

There are two stories capturing the attention of the global press this morning: An escalation of aggression between Hezbollah and Israel, and Telegram CEO Pavel Durov’s arrest in France.

The exchange of fire between Israel and Hezbollah got plenty of ink in Reuters | Bloomberg | Financial Times | Wall Street Journal | New York Times | Washington Post. We have more on what happened above.

MEANWHILE IN FRANCE- Dubai-based Telegram founder and CEO Pavel Durov was arrested in France yesterday on several charges, including charges related to the spread of illicit material and misinformation on Telegram due to inadequate moderation and “a lack of cooperation with police.” Telegram said in a statement on X that the platform “abides by EU laws, including the Digital Services Act — its moderation is within industry standards and constantly improving.” (Reuters | Bloomberg | New York Times | Financial Times)

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MARKET WATCH-

OPEC+ faces a difficult decision on whether to boost oil production next month or keep it steady, given “concerns” about the fuel consumption outlook and increased output from other nations, according to Reuters. Last month, the group opted to maintain current production levels while assessing the effects of existing cuts, and had earlier agreed to ease the cuts starting October 2024.