Good morning, wonderful people. It’s nearly the end of a long and busy week as this year’s Make It in the Emirates brings bns of AED worth of manufacturing and localization agreements. We have the rundown of the highlights from day three in the news well, below, along with the latest on Dubai Holding’s residential REIT IPO, which raised AED 2.1 bn, new industrial zones in Kezad and Rakez, and the lowdown on Dubai’s Virtual Assets Regulatory Authority’s new (stricter) rules for crypto firms.

⛅WEATHER– It’s another scorching hot day, with Dubai seeing highs of 41°C, cooling to 30°C over night, while Abu Dhabi is set to hit 35°C with a nighttime low of 29°C.

WATCH THIS SPACE-

#1- Another hurdle for gold exports to India: India is enforcing stricter oversight over imports of raw, semi-finished, and powered gold and silver from the UAE, Timesof India reports. Only vetted agencies, approved jewellers, and holders of official tariff quotas will be allowed to bring in shipments.

Why now? The move comes after importers allegedly mislabeled 99% pure gold as platinum alloy to benefit from lower customs duties. In response, Indian authorities introduced a harmonized system code for high-purity platinum to close the loophole.

ICYMI- Last July, the Indian government slashed import duties on gold and silver from 15% to 6%, below the tax agreed between the UAE and India under their economic partnership agreement, making it less appealing to importers. The country has also terminated its no-duty imports of platinum from the UAE. In August, India formally requested a CEPA review meeting with the UAE, citing growing concerns over rules of origin, concessional tariff abuse, and insufficient value addition in UAE exports of gold or silver.

#2- Mubadala Energy is willing to supply all its natural gas from its South Andaman block to Indonesia if given an attractive price, Reuters reports, citing Mubadala Energy Indonesia president director Abdulla Bu Ali’s comments to reporters. The country is trying to meet growing domestic demand, but most LNG producers have prioritized exports due to restrictive local price caps.

Mubadala is still considering exports as well, but more competitive gas prices would make domestic supply more enticing, Bu Ali added. Indonesia currently caps its domestic gas prices for some industries and power plants at USD 6.5-7 per mn British thermal units (mmBtu), which is low relative to Asia’s spot LNG prices of USD 11.75 per mmBtu last week.

ICYMI- Mubadala is already supplying a portion of its resources to Indonesia: Mubadala signed an initial agreement earlier this week to provide 200 mn standard cubic feet per day (mcf/d) of gas to Indonesian state fertilizer producer Pupuk Indonesia from its Tangkulo-1 well. The company wrapped up its drilling campaign in South Andaman in September and is also developing the Central Andaman oil and gas block with the UK’s Harbour Energy after signing a development contract with Indonesia’s government.

#3- Investment firm Actis is in talks to invest in data centers in Saudi Arabia and the UAE, Actis’ Head of the Middle East and Africa division Sherif Elkholy told Ashraq Business (watch, runtime: 7:19). “The UAE and Saudi Arabia markets are very attractive for us and present several opportunities that we are currently assessing,” Elkholy said.

The firm is eyeing investments across various sectors in the GCC, including renewables, with its existing portfolio in the region valued at around USD 500 mn. ElKholy added that Actis is pursuing an expansionary strategy in Africa and the Middle East, with plans to scale up its presence in key markets.

REMEMBER- Actis is reportedly considering investing hundreds of mns of USD in growth capital behind its stakes in the UAE companies, including Yellow Door Energy and Emirates District Cooling (Emicool). The firm acquired controlling stakes in both companies back in 2022.

DATA POINT-

The UAE’s e-commerce market hit USD 8.8 bn in 2024 and is projected to exceed USD 13.8 bn by 2029, according to EZDubai and Euromonitor International’s latest E-Commerce in the MENA Region 2024 report (pdf). Growth is being driven by a tech-savvy population, expanding digital infrastructure, and rising digital wallet adoption. Buy now, pay later services are also gaining traction.

Top sellers: Top-selling categories in 2024 included apparel and footwear (USD 2.6 bn), consumer electronics (USD 2.1 bn), and home care (USD 1.1 bn), with no-charge deliveries and returns cited as major purchasing drivers.

The MENA e-commerce market grew 13% y-o-y to USD 34.5 bn in 2024, and is forecast to reach USD 57.8 bn by 2029, led by strong demand in the UAE, Saudi Arabia, Oman and Algeria.

HAPPENING TODAY-

#1- The Make it in the Emirates Forum is on its final day at the Adnec Center in Abu Dhabi. The three-day forum, which is organized by the Industry and Advanced Technology Ministry, brings together local and international decision-makers, government officials, private companies, investors, and financing institutions to support industrial growth and investment.

#2- Seamless Middle East is on its third and final day at the Dubai World Trade Center. The event, targeting payment providers, merchants, and SMEs and focusing on the future of digital commerce, payments, and e-commerce, will feature discussions on fintech, digital transactions, and the evolution of the digital economy.

#3-Crypto Expo Dubai is on its second and final day at the Dubai World Trade Center. The event will discuss topics including cryptocurrency regulations, blockchain advancements, digital assets, decentralized finance, and investment strategies.

THE BIG STORY ABROAD-

Another dramatic White House meeting unfolded yesterday, as President Trump dimmedthe lights in the Oval Office to watch a video of what he claimed was evidence of genocide and “horrible death” of white farmers in South Africa.

His guest — South Africa’s Cyril Ramaphosa — rejected the claims made in the video and a stack of papers Trump shuffled through, albeit in a calm, less confrontational manner than the full-display tussle with Ukraine’s Zelenskyy last February. Ramaphosa tried to get the conversation back on track to focus on trade relations with the US.

SPEAKING OF THE US- The Trump administration formally accepted Qatar’s USD 400 mn Being 747 jet, gifted to be used as the President’s Air Force One. He will not be using it any time soon, though — experts put the cost of installing the necessary systems at over USD 1 bn, with the process taking years.

“I am sorry I don’t have a plane to give you,” Ramaphosa said when Trump was asked about the jet by reporters during the meeting.

CLOSER TO HOME- Pressure on Israel is mounting after the military fired shots at a delegationof Arab and European diplomats near the Jenin refugee camp in the West Bank, triggering wide international backlash. Meanwhile, Israeli PM Netanyahu said Israel “probably” killed Hamas’ de factor leader Mohammed Sinwar, and vowed to establish complete control over Gaza.

OVER IN TECH- OpenAI will fully acquire AI startup IO — founded a year ago by ex-Apple executive John Ivy — for USD 6.5 bn, its largest transaction to date. Ivy and his team will join OpenAI to work on “a new family of products” designed to bring artificial general intelligence into physical, everyday-use gadgets.

ALSO- US export controls on semiconductors “backfired,” Nvidia CEO Jensen Huang said yesterday, adding they encouraged China’s companies to accelerate development. More on this in today’s Planet Finance, below.

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