Good morning, wonderful people, and happy FRIDAY. We also wish you all a very happy UAE national day, and hope you all have fun plans for the long weekend.

SPEAKING OF- A quick programming note: EnterpriseAM UAE will be off on Monday and Tuesday next week for the holiday. We will be back in your inbox on Wednesday, 4 December.

We have a brisk issue to close out the week, with news of a new IPO on the ADX next month, Masdar closing its acquisition of Greece’s Terna Energy, and macro data on consumer spending in 3Q 2024.

WEATHER- Expect more windy conditions today: Partly cloudy conditions are expected to persist across the country through the weekend, accompanied by blowing winds and dust and a drop in temperatures, according to the National Center of Meteorology (pdf). Dubai will see the mercury hit 28°C, with an overnight low of 23°C, while temperatures will hit 25°C in Abu Dhabi, with an overnight low of 23°C.

WATCH THIS SPACE-

#1- Dubai is set to become home to the Gulf’s first large-scale brewery, courtesy of a joint venture between Heineken and Maritime and Mercantile International (MMI), Bloomberg reports, citing a company statement. The JV, named Sirocco, confirmed plans to begin construction of the brewery in late 2025, with expected completion date in 2027. All necessary permits for the project have been obtained. Sirocco intends to increase its workforce from 60 to 190 full-time employees.

REMEMBER- Dubai — widely viewed as a cosmopolitan hub and a tourist city — has been loosening regulations over the sale of alcohol for a while. The emirate scrapped a 30% sales tax on alcohol and a liquor license fee in 2023. The UAE, at a wider scale, is also working on attracting more tourists with megaprojects like Wynn Resorts’ Wynn Al Marjan Island casino project in Ras Al Khaimah.

#2- State-owned International Holding Company (IHC) maintained its outlook on investments in Adani Group despite the founder’s recent fraud charges, Reuters reports, citing an IHC statement. “Our team continues to evaluate developments. At this time, our outlook on these investments remains unchanged,” the statement mentioned, without clarifying future plans for the investments.

Adani’s shares have been paring their losses, which narrowed from USD 34 bn to USD 12.5 bn as of yesterday amid persistent support from some investors and partners, including the State Bank of India, which reportedly said it would continue to lend to ongoing Adani projects that are nearing completion, two sources told Reuters.

Refresher: US prosecutors charged Adani and seven others with involvement in a USD 265 mn bribery and fraud scheme, with the charges also including raising capital through false and misleading statements.

REMEMBER- IHC is not the only UAE investor exposed to Adani: The Abu Dhabi Investment Authority (Adia) invested in Adani Energy Solutions’ secondary share sale in July, which was worth up to USD 1 bn. The UAE entity, along with other GCC sovereign wealth funds, was also in discussions with Adani Enterprises to raise USD 2 bn from a qualified institutional placement (QIP).

#3- Engineering contractor Drake and Scull International (DSI) submitted AED 4 bn worth of bids for infrastructure projects, with a current project backlog of AED 559 mn, it said in a press release (pdf). The projects include water treatment initiatives as well as mechanical, engineering, and plumbing.

ICYMI- Drake and Scull International turned to the black in 3Q 2024, reporting a net income of AED 5.9 mn from a loss of AED 34.9 mn in the same period last year. The company relisted on the DFM following a restructuring plan involving a capital increase and a write-off of AED 4 bn in debt in March.

REMEMBER- DSI’s subsidiary Passavant Energy and Environment inked a USD 48 mn design and construction contract earlier this year, to develop a 200k cubic meter wastewater treatment plant in Al Khobar, Saudi Arabia.

#4- Dubai will allocate AED 750 mn for the second phase of its R&D program, aimed at positioning Dubai as a global leader in research and development by 2033, after the Dubai Executive Council approved the budget, state news agency Wam reports. The program aims to contribute AED 20 bn a year to Dubai’s economy. The Council also adopted three key strategies:

  • A Dubai resilience strategy to boost the emirate’s ability to withstand challenges;
  • A food security strategy to secure a sustainable food supply;
  • A penal enforcement system to modernize justice and enforcement mechanisms.

#5- The UAE’s net wealth grew 10% y-o-y to reach USD 2.9 tn in 2023 and it is expected to hit USD 4.4 tn by 2028, according to a press release, citing Boston Consulting Group’s annual global wealth report. The UAE’s net wealth calculation included financial wealth, real assets, and liabilities.

The breakdown: Financial wealth rose by 7.6% annually from 2018 to 2023, reaching USD 1 tn in 2023, with expectations for an annual increase of 7.3%, amounting to USD 1.5 tn by 2028. Meanwhile, real assets grew by 9.1% annually from 2018 to 2023 and are predicted to increase by 8.5% annually to reach USD 3.1 tn by 2028. Liabilities remained the same at USD 180 bn in 2023 and they are expected to reach USD 240 bn by 2028.

The GCC country is the world’s seventh largest booking center, and it may become “the sixth largest by 2028,” Head of Financial Institutions in the Middle East Lukasz Rey said. Individuals with assets exceeding USD 100 mn make up 29% of the UAE’s total financial wealth, more than double the global average of 14% for the same wealth segment.

#6- Healthcare chain Aster is reportedly nearing an agreement to merge with India’s Blackstone-backed Quality Care, with the agreement potentially taking place today, Bloomberg reports, citing people it says are familiar with the matter. Shareholders of Aster are poised to own around 57% of the merged entity, while Quality Care’s shareholders would hold the remaining 43%. The new entity would have 10k beds, making it one of India’s biggest hospital chains in terms of revenue and bed capacity.

Background: Blackstone has been eyeing a merger or acquisition for Aster’s India unit since last year. The two were reportedly in talks since September.

#7- UAE to get one or two large-scale solar projects every year until 2030, theNational reports, citing statements from Energy Minister Suhail Al Mazrouei at the RAK Energy Summit. The country is now seeing “probably the highest demand” for energy as the economy continues to grow, Al Mazrouei said. The push is also part of an overall effort to achieve net zero by 2050 and 30% energy from renewables by 2030. The UAE currently generates around 6 GW of renewable energy and plans to increase this to at least 15 GW by 2030.

We have a few in the pipeline: The Emirates Water and Electricity Company (Ewec) invited developers and consortiums to submit an Expression of Interest (EOI) for the development of the 1.5 GW Zarraf solar plant in Abu Dhabi’s Al Dhafra Region in October. This followed previous projects, including the now-operational 2 GW Al Dhafra solar plant, the 1.5 GW Al Ajban solar plant, which is still underway, and the 1.5 GW Khazna solar plant, which is still in the tendering process.

#8- Green Coast eyes USD 50 mn in investments in Egypt over next three years: Dubai-based Green Coast is planning to invest some USD 50 mn in Egypt in the next three years, with a focus on renewables and infrastructure, CEO Mohammed Abdul Ghaffar Hussain told Asharq Business. The company is currently investing USD 10 mn in pipe producer EGFCO, a JV between the Swiss GF Piping Systems and Green Coast’s investment arm Corys Investments.

DATA POINTS-

#1- ADGM’s assets under management grew 215% y-o-y in 3Q 2024, with the total number of fund and asset managers reaching 128, according to a statement (pdf). Some 759 new business licenses were handed out, marking a 33% y-o-y increase. Among the new joiners: USD 1.3 tn asset manager PGIM, Nuveen, and Elysium Management.

#2- The Abu Dhabi Chamber of Commerce and Industry (ADCCI) reported a 19% increase in food and beverage exports from the UAE in the first half of 2024, projecting sector revenues to reach AED 141 bn, according to an ADCCI statisticsreport. Some 2.5k new companies in the food sector joined ADCCI between January and October 2023, accounting for some 8.2% of total membership.

Looking ahead: Consumer spending in the sector is expected to rise by 6.3% in 2024, while online sales of food and beverages in Abu Dhabi are expected to hit AED 2.3 bn next year, driven by e-commerce growth, the report added.

PSA-

#1- Salik is set to introduce variable road toll pricing at the end of January 2025, and a variable parking tariff policy by the end of March 2025, Wam reports. The new policy includes parking fees for parking during events. The breakdown:

For road tolls:

  • Peak hours (weekdays, 6-10am, 4-8pm): AED 6;
  • Off-peak hours (weekdays, 10am-4pm, 8pm–1am): AED 4;
  • No toll fees between 1-6am daily, and all day Sunday except during public holidays or major events.

Parking tariffs:

  • Peak hours: AED 6 per hour for premium parking, and AED 4 per hour for standard parking;
  • No parking fees between 10pm-8am and all day on Sundays;
  • Event-specific parking: AED 25 per hour for public parking near event zones, with an initial rollout at Dubai World Trade Center during major events starting February 2025.

#2- Where to go (and not go) for UAE national day: Khalifa Square will be temporarily closed between 28-30 December in preparation for UAE National Day celebrations, Khaleej Times reports. Meanwhile, Louvre Abu Dhabi will offer entry without charge on Monday, 2 December, according to a press release. The museum will host a variety of activities showcasing Emirati heritage, including live screenings of Emirati films and access to permanent galleries.

HAPPENING TODAY-

The Big 5 Global Exhibition wraps today at the Dubai World Trade Center. The exhibition will feature key players and experts in the construction industry to discuss recent innovations and showcase available investment prospects.

THE BIG STORY ABROAD-

Less than two days since the ceasefire took effect, Israel has opened fire in Lebanon on what it says were “suspects” that arrived in the southern zone, while Hezbollah pointed fingers at Israel for attacking people “returning to the border villages.” The Israeli army has been warning against Lebanese returning to specific areas. The ceasefire seems to continue to hold despite the incidents, but it remains unclear how mns of displaced Lebanese will return home. (Reuters | Bloomberg | NY Times)

Australia just introduced the world’s first social media ban for children under 16, with the ban expected to take effect in November 2025. The ban will force social media firms to impose age-control verifications or face fines of up to USD 32 mn. (AP | Reuters | CNN | Guardian)

OIL WATCH-

Opec+ postponed its meeting to 5 December from 1 December since several ministers of member nations will be attending the Gulf Summit in Kuwait City on the same day, CNBC reports, citing the Opec Secretariat.

ICYMI- Member countries are in discussions to potentially delay their plan to phase out oil supply cuts in January due to the threat of oversupply, after delaying it initially from October.

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CIRCLE YOUR CALENDAR-

The International Desalination and Water Reuse World Congress will take place between 8-12 December at the Adnec Center in Abu Dhabi. The event will feature discussions on innovations in water desalination and reuse technologies, decarbonization efforts, integrated water resources management, and best practices for rationalizing water consumption.

The WORLDEF Dubai 2024 forum will take place on 4-5 December at Dubai CommerCity. The event will gather over 5k representatives from leading organizations in digital commerce.

The European Arab Medical Congress will take place on 11-12 December at the headquarters of Zayed Higher Organisation for People of Determination in Abu Dhabi. Hosted by the Emirates Scholar Center for Research and Studies, the event will host 50 speakers and feature 40 scientific sessions covering the latest innovations in medicine and medical technology.

Investopia 2024 will take place on 28-29 February at the St. Regis Abu Dhabi in Saadiyat Island, under the theme Emerging Economic Frontiers: Investing in the New Economy Growth Sectors. The event will feature discussions on global investment opportunities and trends shaping the economy over the next decade. Attendees will engage with leaders, investors, and stakeholders from various sectors.

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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