Good morning, friends. We have a busy issue for you this morning, with plenty of M&A updates — including another blockbuster transaction from PureHealth — and more investments from Eagle Hills into Europe — even as its project in Budapest seems in danger of falling apart.

☁️WEATHER- Expect to see partly cloudy skies today, with a chance of light rainfall over islands and some northern and coastal areas, according to the National Center of Meteorology’s forecast (pdf). The mercury will reach 25°C today in Dubai before dropping to an overnight low of 20°C. Meanwhile, in Abu Dhabi, temperatures will peak at 21°C, with a low of 19°C.

WATCH THIS SPACE-

#1- Abu Dhabi-based developer Eagle Hills plans to invest USD 6 bn in projects across Georgia, under a newly signed MoU between Georgian PM Irakli Kobakhidze and UAE President Sheikh Mohamed bin Zayed Al Nahyan, Bloomberg reports, citing an emailed statement. The initiative aims to drive economic development, generate jobs, and attract more foreign investment to Georgia. The projects will include the construction of homes, retail facilities, parks, schools, and commercial spaces in Georgia’s capital, Tbilisi, and the seaside cities of Batumi and Gonio.

The Georgian government is also in discussions with AD Ports to expand the company’s presence in Georgia with more investments into the logistics and transportation sectors, according to a statement from Georgia’s Economy Minister, Levan Davitashvili.

REMEMBER- AD Ports finalized the acquisition of a 60% stake in Georgia’s Tbilisi Dry Port from Inveco in August after inking an agreement back in March. The new custom-bonded and rail-connected international hub serves as a key link in the Middle Corridor, connecting Western Asia’s manufacturing hubs to Eastern Europe.

ICYMI- The two countries inked an economic agreement last July, paving the way for the development of bilateral relations, focusing on expanding market reach, improving investment prospects, empowering SMEs, advancing the service industry, and simplifying trade processes.

#2- Iraqi Stock Exchange to join ADX’s Tabadul: The Abu Dhabi Securities Exchange (ADX) signed an agreement with the Iraqi Securities Commission to add the Iraqi Stock Exchange to ADX’s cross-market trading platform, Tabadul, state news agency Wam reports. The integration allows investors to directly trade on both markets via Tabadul.

The Iraqi Stock Exchange joins current Tabadul members, including the Bahrain Bourse, Muscat Stock Exchange, and Amman Stock Exchange. The ADX is also in talks with 10 more markets to broaden the platform.

#2- ICE to introduce equity index futures in Abu Dhabi: US financial services company Intercontinental Exchange (ICE) will debut MSCI Equity Index Futures contracts on ICE Futures Abu Dhabi starting 24 February, subject to regulatory approval, according to a statement. The new contracts — Micro MSCI GCC Countries, Qatar, UAE, and India Index Futures — will be USD-denominated. The move aims to expand ICE’s portfolio in the region, enabling investors to access Gulf and Indian equity markets and offering tools to manage equity risk.

IN CONTEXT- ICE dominates the MSCI Futures market, handling over 70% of global trading volume. In 2024, its MSCI complex averaged USD 13.6 bn in daily notional trading value.

#3- Property prices and rents near Etihad Rail stations could see increases between 5-15% as the project progresses, albeit gradually, real estate experts told Khaleej Times.

What they said: Locations like Emaar South, Dubai South, Damac Hills, Nshama, Creek Harbour, and Al Jaddaf are expected to benefit the most from this infrastructure investment, according to Elie Naaman, CEO of Ellington Properties. Saadiyat Island is expected to see higher price hikes compared to Reem and Yas Islands due to well-established infrastructure and high demand, Svetlana Vasilieva, head of secondary sales at Metropolitan Premium Properties said.

REMEMBER- The high-speed train project linking Abu Dhabi and Dubai aims to cut travel time between the two emirates to 30 minutes, with trains reaching speeds of up to 350 km per hour. The project is estimated to add AED 145 bn to the country’s GDP over the next 50 years.

#4- Sharjah is getting a new agri company: Sharjah Ruler Sultan bin Mohammed Al Qasimi issued a decree to establish Girass Agricultural, a new company that will produce organic fruits and vegetables and manage the greenhouse initiative in Al Dhaid, Wam reports. The company will operate under Sharjah Agriculture and Livestock Production (Ektifa).

#5- Gov’t introduces framework to track health research spending: The Health and Prevention Ministry launched a framework to track health research and development (R&D) expenditures, Wam reports. The framework will enable health authorities, academic institutions, and private companies to track R&D spending while refining indicators such as the ratio of health R&D spending to GDP.

PSA-

DLD and broker fees are now the buyer’s responsibility: UAE property buyers must include the Dubai Land Department (DLD) registration amount and broker fees within their upfront payments starting from 1 February, after the Central Bank of the UAE instructed banks to stop including the fee in mortgage financing, industry experts told The National. The DLD fees amount to 4%, while the agent’s fee represents 2% of the transaction.

The rationale: Experts speculate that the decision comes as a way to ensure responsible lending in the property market and prevent overheating. “I can only presume this move by the Central Bank is part of broader efforts to promote more responsible lending practices and to reduce the risk of over-leveraging in the real estate market,” founder and chairman of Luxury Property Jason Hayes said.

How will it impact the market? Some buyers will have to reevaluate their purchasing capability, Hayes added. Developers offering flexible payment options could potentially witness a boost in sales as buyers will look to spread costs over time, CEO of real estate advisory Springfield Properties Farooq Syed said.

DATA POINT-

The UAE led foreign investor inflows in 4Q 2024: Foreign investors poured USD 2.4 bn into UAE stocks in 4Q 2024, the highest among GCC markets, according to Kamco Invest’s 4Q 2024 GCC Trading Activity Quarterly Report (pdf). This marks an increase from USD 2 bn in 3Q, signaling sustained foreign interest in UAE equities. The ADX saw some USD 5.4 bn in net buying, while the DFM saw USD 572.5 mn.

The overall trend in the GCC was positive, with foreign investors net buying USD 3 bn across GCC markets during the quarter — down from USD 3.7 bn in 3Q. Annual foreign net purchases surged to USD 11.6 bn in 2024, significantly up from USD 2 bn in 2023, marking the strongest inflows in over two years.

Banking stocks led trading activity with a 20.9% y-o-y increase in trading to USD 123 bn, while energy, materials, and real estate also saw strong gains. Technology hardware and consumer services sectors recorded declines.

Saudi dominated stock performance: Nine of the top 10 most traded GCC stocks during the year were Saudi, led by Saudi Aramco at USD USD 43.4 bn. Abu Dhabi’s International Holding Co was the only non-Saudi stock on the list, trading USD 19.8 bn.

HAPPENING TODAY-

#1-Arab Health is on its second day, and runs until Thursday at the Dubai World Trade Center. The annual healthcare exhibit is gathering over 3.8k companies, with the goal of showcasing the latest tech solutions to challenges in the healthcare sector.

#2- A UAE delegation is at the Arab Charter on Human Rights Committee meeting today at the Arab League’s General Secretariat in Cairo, Wam reports. The two-day session will assess the UAE’s progress on fulfilling its human rights commitments, focusing on its second periodic report submitted in September 2024. This follows a December committee visit to the UAE to review human rights activities across government and non-government sectors.

HAPPENING THIS WEEK-

#1- It’s interest rate week. The US Federal Reserve is set to meet for the first time this year for its two-day meeting today and tomorrow, with the GCC’s central banks awaiting its move before mirroring it (Remember: most GCC currencies are pegged to the USD). The Fed is widely expected to keep interest rates steady, despite calls from US President Donald Trump to drop interest rates “immediately.”

#2- The Dubai Youth Forum will take place tomorrow at the Mohammed Bin Rashid Library, according to a Dubai Media Office statement. Organized by the Dubai Youth Council, the event will bring together senior officials, experts, and young talents from key sectors. The event aims to empower Emirati youth to contribute to Dubai’s future and strategic plans, as well as foster collaboration with decision-makers in the public and private sectors.

#3-The Budapest assembly will mull the possible use of its preemptive right to purchase the land plot sold to Eagle Hills tomorrow to block the acquisition from happening, Bloomberg reports.

Background- Abu Dhabi-based developer Eagle Hills entered an agreement last week with Hungarian officials to develop Grand Budapest, a EUR 12 bn sustainable, smart district in Budapest, dubbed mini-Dubai for its resemblance to Dubai’s flashy neighborhoods. However, the city’s Mayor Gergely Karacsony intends to block the project, arguing that the land is worth much more than the HUF 51 bn (USD 128 mn) sale price and urging the government to prioritize affordable housing instead of luxury real estate projects.

FACT CHECK- Meanwhile, Jared Kushner’s Affinity Partners denied any intended participation in Eagle Hills’ smart district project in the project, CEO Asher Abehsera said.

THE BIG STORY ABROAD-

Two stories are dominating headlines in the foreign press this morning:

#1- China’s response to ChatGPT, DeepSeek, wiped USD 1 tn off of US stocks yesterday, with the prospect of a cheaper and much less energy-intensive AI chatbot rattling markets and raising questions around the US’ alleged AI dominance. The startup was later hit by a cyberattack, which prompted its developers to limit registrations. We have more in Planet Finance, below. (Reuters | FT | Bloomberg)

#2- Hundreds of thousands of Palestinians returned to northern Gaza after months of displacement, following Israel’s opening of military checkpoints after a 24-hour delay caused by claims that one of the Israeli hostages meant for release had not returned. Late night talks on Sunday shored up the agreement, making way for the opening of the routes yesterday and for more hostage transfers later this week. (Reuters | Guardian | FT | Bloomberg)

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CIRCLE YOUR CALENDAR-

The UAE-Kuwait Week will take place between 3-4 February in Dubai, featuring investment conferences, panel discussions on economic development, and B2B meetings. Attendees will explore opportunities for collaboration in emerging industries, Wam reports.

The annual conference of the International Federation of Ait Traffic Controllers’Associations (IFATCA) will take place from 28 April to 2 May in Abu Dhabi. The conference will be hosted in cooperation with the General Civil Aviation Authority and Abu Dhabi’s Department of Culture Tourism. Global aviation experts will discuss air traffic control advancements, safety strategies, and infrastructure.

The UAE International Dental Conference and Arab Dental Exhibition (AEEDC Dubai 2025) is set to take place from 4-6 February at the Dubai World Trade Center, Wam reports. The event will welcome more than 66k attendees from 155 countries. It will showcase 5.3k brands and 3.9k companies specializing in dental supplies, focusing on the latest in dentistry and healthcare advancements.

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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