Good morning, wonderful people. We have another packed issue for you this morning — what summer lull? — filled with M&A and investment updates, and another fresh dose of real estate data. But first – an update on our Olympics run:

Swimmer Yousuf Al Matrooshi narrowly missed the semi-finals after finishing joint-second alongside St Lucia’s Jayhan Odlum-Smith — though he beat his personal record with a 50.39-second finish time.

Up today: Emirati Judoka Aram Grigorian will compete in the round of 32 at 1:06pm.

WEATHER- The mercury is peaking at 43°C today in Dubai, before cooling to an overnight low — if we can call it that — of 36°C. Over in Abu Dhabi, temperatures will hit 41°C, with an overnight low of 35°C.

No, it’s not just you. We are seeing an extreme bout of heat and humidity this year: Dubai’s “feels-like” temperatures crossed 60°C on multiple days this summer, well above the 54°C threshold known to potentially lead to “extreme danger” to health. The extreme heat this year can be attributed to climate change as well as rapid urbanization, according to Bloomberg — which is particularly magnified here in the region due to its dry desert landscape.

MEANWHILE- Are you planning to be in Egypt on 24 September? You may be interested in attending our 2024 Enterprise Finance Forum. Seating is strictly limited at our flagship, invitation-only forum for C-suite executives and other senior leaders.

Why attend? We’re in the early days of a generational realignment of power in our industry — in our region and beyond — and on the cusp of the biggest intergenerational transfer of wealth the world has ever seen. With that as the backdrop, we’re going to take stock of where we stand six months after the float of the EGP and ask what’s next for finance in Egypt and the wider region. Among the questions we’ll be asking:

  • What roles will Egypt, Saudi and the UAE play in the regional industry going forward?
  • What are foreign investors looking for right now?
  • Is real estate the only asset class in Egypt?
  • What does the next generation of leaders think as they take over established family businesses?

Do you want to request an invitation? Tap or click the image below.

HAPPENING TODAY-

We might hear from Dubai’s Sidara about its offer to acquire UK engineering firm Wood Group today, which marks the deadline for it to submit a fresh bid or otherwise withdraw its offer. The company was granted due diligence and allowed to engage with Wood in June, after Wood had turned down its three previous bids. The engineering and consulting firm’s latest bid saw it offer to acquire Wood Group at GBP 2.3 per share, valuing the company at GBP 1.59 bn, which it said would be its final offer.

WATCH THIS SPACE-

#1- Adnoc could hear back from Covestro soon: German chemicals company Covestro expects to give an update on Adnoc’s acquisition bid “relatively soon”, Covestro’s Chief Financial Officer Christian Baier told Reuters. “Talks with Adnoc continue in a very constructive manner,” he said.

Remember– The Emirati state-owned oil company raised its takeover bid to EUR 11.7 bn, or EUR 62 per share, in June. Adnoc said this would be its final offer, after increasing its bid three times during the talks, which have been going on for over a year. If the transaction goes through, it will be the biggest acquisition from a Middle Eastern buyer in Europe in 16 years.

Covestro cut earnings forecast for 2024: Covestro’s EBITDA fell 16.9% y-o-y in 2Q 2024 to EUR 320 mn in 2Q 2024, prompting the company to tone down its full-year forecast to EUR 1-1.4 bn from EUR 1-1.6 bn, citing economic headwinds.

#2- Mubadala taps advisors to sell Brazilian port: Sovereign wealth fund Mubadala subsidiary Mubadala Capital and Singapore trading giant Trafigura Group have reportedly hired Goldman Sachs and UBS BB, a JV between Swiss UBS and Brazil’s Banco do Brasil, to advise on the sale of Brazilian iron-ore port terminal operator, Porto Sudeste, Reuters reports, citing people familiar with the matter. The two firms are also reportedly looking to sell Morro do Ipê, the mining project they own in the Brazilian state of Minas Gerais.

The sale will possibly take place within six to nine months, though potential buyers have not been yet contacted, one of the sources revealed. Porto Sudeste disclosed that it is in early talks with financial advisors to explore a sale in a regulatory filing earlier this month.

ICYMI- Bloomberg reported that Mubadala is looking to shed the assets earlier this month, as it looks to to use the sale proceeds to boost investments in Bahia state, including a planned refinery for green diesel and sustainable aviation kerosene. The port had exported below its capacity last year due to competition from Vale SA’s export facilities.

PUBLIC SERVICE ANNOUNCEMENTS-

Twelve new economic activities are now eligible for the Tajer Abu Dhabi License from the Abu Dhabi Business Centre at the Abu Dhabi Department of Economic Development, without requiring a physical location or rent payments to obtain the permit, according to a statement. The added activities include maritime consultancy services, tourism and recreation consultancy, logistics consultancy, network consultancies, textiles and apparel printing, and design and artwork services.

DATA POINTS-

DIFC companies surpass 6k: The Dubai International Financial Centre (DIFC) welcomed 820 new companies in 1H 2024, up 24% y-o-y to 6.2k, Wam reports. DIFC now hosts over 370 wealth and asset management firms, including over 50 hedge funds, with a total of USD 700 bn in assets under management, up 58% y-o-y. The number of funds marketed within or from the center also increased to 10k.

Occupancy levels at DIFC-owned properties remained high at 99.6%, while third-party office space reached 89%. To address the high demand, DIFC plans to add 1.6 mn sqft of A-grade commercial space in the next three years, with the inauguration of DIFC Innovation One adding over 200k sqft of space in 1Q 2024.

THE BIG STORY ABROAD-

For the first time in weeks, there’s more business news occupying front pages in the foreign press than politics, as Microsoft and Samsung kicked off 2Q earning season for Big Tech yesterday, fueling another market sell-off amid continued concerns about the commercial viability of AI.

BUT FIRST- Israel attacked a southern suburb in Beirut yesterday, claiming it killed a senior Hezbollah advisor. Israeli officials said no other attacks are planned for the time being, Bloomberg reports. The attack came in retaliation to a strike on the Golan Heights that killed 12 children and teenagers and for which Israel blamed Hezbollah. Three Lebanese civilians died in the Israeli attack, including two children, according to Reuters.

IN TECH NEWS-

#1- Investors continued to sell Big Tech, with Nvidia down 7% yesterday ahead of the sector’s earnings this week. The tech-heavy Nasdaq ended the day 1.3% down, while S&P 500 fell 0.5%. (FT)

#2- Microsoft’s Azure cloud service saw a slowdown in growth in 4Q 2023-2024, while capital spending hit USD 19 bn, with the tech giant saying the figure will increase in the new fiscal year. Microsoft’s shares were down 4% in extended trading following the results, which fueled already persistent concerns among investors about the excessive capital expenditure in AI and the lack of a fast pay-off.

#3- Samsung saw its bottom line increase six-fold on the back of a rebound in semiconductor prices and as earnings recovered from a low base, according to its earnings release (pdf).

#4- Intel plans to slash thousands of jobs in a cost reduction drive possibly as early as this week, as it continues to face subdued demand for its computer chips amid the AI boom. (Bloomberg)

AND IN OTHER BUSINESS NEWS- Standard Chartered announced plans for a USD 1.5 bn share buyback program — its biggest ever — as it lifted its income outlook on strong growth in Asia. (Reuters)

LATER THIS WEEK- Opec+ is expected to reaffirm its commitment to cutting production when it meets this Thursday, Reuters reports.

AND- US Vice President Kamala Harris is set to announce her running mate as early as next Monday before a multi-state battleground tour later next week. (Reuters)

OLYMPICS-

Today should see the postponed men’s triathlon finally happen — weather permitting (thunderstorms are expected in the evening) — after being delayed from the previous day due to poor water quality levels in the Seine. Also watch out for: Nadal and Alcaraz’s tennis doubles quarterfinal against the US’ Austin Krajicek and Rajeev Ram; 100m swimming freestyle finals for men and women; and artistic gymnastics finals.

Highlights from yesterday: Simone Biles clinched her fifth gold medal in the women’s team event; and Andy Murray and his double’s partner Dan Evans made it to the quarterfinals.

The medal standings now at the Paris Olympics:

  • Japan (7 gold, 13 overall)
  • China (6 gold, 14 overall)
  • Australia (6 gold, 11 overall)
  • France (5 gold, 18 overall)
  • South Korea (5 gold, 11 overall)

Want to see when your favorite sport is on? Check out the official schedule here.

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