Good morning, lovely people. Abu Dhabi Finance Week — as expected — kicked off with a bang yesterday, with major plans announced for a USD 16 bn expansion of the financial hub, a USD 1.9 bn polio pledge made by global investors at the event, and a slew of companies pledging to move to the capital or expand their operations there.

Binance also made headlines for its full global license from ADGM — a first for a crypto firm — suggesting it will likely make the financial hub its new home.

Just as ADGM announced plans to double its capacity, Abu Dhabi officials also announced plans to double population capacity under a AED 240 bn infrastructure program. The program includes housing, transport, healthcare, and education initiatives, Gulf News quotes Department of Municipalities and Transport Chairman Mohamed Ali Al Shorafa as saying at Abu Dhabi Finance Week, without disclosing further details. The program will be rolled out over the next seven to 10 years.

PLUS- There’s a big real estate theme in today’s issue, with a new megaproject in Saadiyat announced by an Egyptian developer, and Dubai-based Dar Global planning an expansion into Oman.

WEATHER- Expect a mix of sun and clouds today, as the mercury rises to 31°C in Dubai and 30°C in Abu Dhabi, before cooling to a low of 18°C in the former and 19°C in the capital.

WATCH THIS SPACE-

#1- Abu Dhabi’s new government-owned firm L’imad is helping finance Paramount’s USD 108.4 bn hostile takeover bid for Warner Bros, which it launched a few days after Netflix agreed to acquire some of the company’s assets, according to a regulatory filing. Paramount’s bid aims to acquire all of Warner Bros, while Netflix’s USD 82.7 bn acquisition targets only its Hollywood studios, as well as HBO and the streaming business.

L’Imad, together with Qatar Investment Authority and Saudi Arabia’s Public Investment Fund, are providing USD 24 bn in financing to make the acquisition work, while US private equity firm RedBird Capital, Jared Kushner’s Affinity Partners, and the Ellison family are also providing funds. They will however forgo any governance rights like board representation in order to ensure the bid does not require approval from the Committee on Foreign Investment in the US.

How do the offers compare? It’s not completely clear, because Paramount’s bid includes cable networks that WB plans to spin off anyway, though Paramount claims their bid is worth around USD 18 bn more than Netflix’s, and that it’s the clearly superior offer. Both takeovers are expected to face close examination from US and European regulators, with concerns ranging from competition in streaming to the concentration of media power. Analysts said a merger with Paramount could give Warner the scale to rival Netflix and Disney, though the inclusion of CBS and CNN under one owner may spark political and industry debate.

What’s next? COO Andy Gordon reportedly said Paramount’s tender offer will be open for 20 business days and could be extended on an investor call. Warner Bros. has 10 days to respond, he said, whereas the company said it will review Paramount’s offer but has not withdrawn its support for Netflix’s offer.

L’Imad? The Abu Dhabi investment firm seems to be a new member of the complex network of sovereign wealth funds and investors in Abu Dhabi. The company recently acquired a 42.5% stake in Abu Dhabi developer Modon from International Holding Company.

#2- Sustained investments in AI could boost the UAE’s economy by 0.7%, IMF’s Regional Director Jihad Azour told The National. Azour referred to AI as a “game changer” that can play a larger role in the non-oil economy. The country has already invested some USD 148 bn domestically and overseas in AI, and it is becoming a key leader in data center capacity, AI Minister Omar Al Olama was quoted as saying previously.

REMEMBER- The IMF estimates 4.8% growth in 2025 and 5% next year, supported by higher hydrocarbon output, continued momentum in non-oil sectors along with large-scale infrastructure projects.

Labor market reforms and a focus on innovation rather than just investment will be key for the Gulf to benefit from the AI wave, Azour said.

#3- FAB partners with Europe’s biggest money manager: First Abu Dhabi Bank partnered with French asset manager Amundi SA to broaden its access to investment offerings and expand the investment management solutions it provides to clients, according to a press release. Amundi, which established its Dubai financial district operations in 2017, manages about EUR 2.3 tn in assets, Bloomberg reports.

Up next: The partnership will deliver a range of investment solutions across client segments, formats, and asset classes.

#4- Plenary sets up infrastructure investment platform in ADGM: Australian infrastructure developer and investor Plenary Group received in-principle approval for a Category 3C fund manager license from the ADGM’s Financial Services Regulatory Authority, according to a press release. The license allows it to establish and manage its new infrastructure investment platform, Plenary Infrastructure Investments ICC, which will operate alongside Plenary and ADQ’s co-development and investment platform Plenary Middle East.

The details: The platform aims to offer local and international investors access to projects developed and managed by Plenary Middle East Limited, as well as Plenary’s wider global portfolio. The developer plans to begin formal fundraising in 2026, pending final regulatory approval.

REMEMBER- ADQ previously acquired 49% of Plenary last year, and the two later rolled out Plenary Middle East, targeting public and social infrastructure prospects in the Middle East and Central Asia. Plenary partnered with Abu Dhabi Projects and Infrastructure Center in July to plan, develop, and implement private-sector engagement for infrastructure projects within the emirate.

#5- Abu Dhabi is getting a fintech, ins., digital and alternative assets cluster. The cluster — which will be known as FIDA — will be spearheaded by the Abu Dhabi Department of Economic Development (ADDED) and the Abu Dhabi Investment Office, state news agency Wam reports. It is expected to contribute some AED 56 bn to Abu Dhabi’s GDP by 2045, as well as generate 8k jobs and attract AED 17 bn in investments.

The cluster is the latest in a series of clusters in the emirate including AgriFood Growth and Water Abundance (AGWA), Smart and Autonomous Vehicle Industries (SAVI), and Health, Endurance, Longevity and Medicine (HELM), which aim to attract global firms and facilitate access to financing and infrastructure. Khalifa Fund for Enterprise Development and sovereign wealth funds and family offices will be among the financing partners for the new cluster, Wam said.

DATA POINTS-

#1- UAE businesses remain among the world’s most confident amid trade uncertainty, with some 68% of UAE firms reporting positive revenue impacts over the past six months from recent trade policies, versus 56% globally, according to HSBC’s Global Trade Pulse survey (pdf). Only 15% said they experienced negative effects compared to 26% internationally. Trade-policy certainty is rising too, with 70% of UAE businesses now more certain about the impacts of trade policies compared to six months ago, above the 66% global average.

This comes as the UAE continues to double down on trade partnerships, especially with South Asia. Nearly 31% of UAE firms are boosting production in India — well above the 18% global average — while 11% are expanding production in Sri Lanka, six percentage points higher than international peers.

#2- Gross bank assets rose to AED 5.2 tn at the end of October, up 0.2% m-o-m, according to the Central Bank of the UAE’s (CBUAE) latest monetary and banking developments report (pdf). Gross credit increased 1.5% to AED 2.5 tn, supported by an AED 16.5 bn increase in domestic credit and AED 19.9 bn in foreign credit. Within domestic credit, lending to government-related entities (+3.3%), the private sector (+0.5%), and non-banking financial services (+1.0%) rose, offsetting a 0.4% decline in credit to the government sector.

Total bank deposits rose 0.6% m-o-m to AED 3.2 tn, driven by a 1.4% increase in resident deposits to AED 2.9 tn, and offsetting a 7.7% dip in non-resident deposits to AED 272 bn. Among resident deposits, private sector deposits increased by 2.5%, while government-related entities’ deposits fell by 2.1% and non-banking financial institutions’ deposits decreased by 10.4%.

Total central bank assets reached AED 1.03 tn at the end of October, up from AED 1.01 tn the month before, according to its data (pdf). Foreign assets stood at AED 991.6 bn, up from AED 977.0 bn in September and rising 21.7% y-o-y, according to a separate statement (pdf). Foreign investments made up AED 617.8 bn of the total, with balances and deposits from banks abroad accounting for AED 314.8 bn and other foreign assets bringing in AED 59 bn.

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HAPPENING TODAY-

#1- Abu Dhabi Finance Week runs until Thursday, 11 December at the ADGM in Al Maryah Island. The largest finance event in the UAE promises a star-studded lineup, with the likes of Microsoft founder Bill Gates, BlackRock CEO Larry Fink, and JPMorgan CEO Jamie Dimon among the speakers on the schedule. Day one will host the Abu Dhabi Economic Forum, which will feature government officials, heads of sovereign wealth funds, and economists to discuss the future of sustainable economic development.

#2- The BTC MENA Conference is on its second and final day at the Adnec Center in Abu Dhabi. The two-day event brings together leaders, investors, and key stakeholders to discuss the evolving BTC landscape and key challenges facing the ecosystem. The conference will examine the convergence of regional capital, energy planning, and infrastructure development.

#3- The Global AI Show is also on its second and final day in Abu Dhabi, connecting AI experts, tech leaders, policymakers, investors, and startups to explore how AI can shape business and government functions across key sectors including finance, healthcare, and cybersecurity.

#4- The Bridge Summit runs until Wednesday, 10 December at the Adnec Center in Abu Dhabi. The three day multimedia conference convenes C-suite executives, policymakers, media professionals, and content creators featuring panel discussions, talks and keynotes to discuss the future of media, entertainment and the creative landscape.

#5- The US Federal Reserve is holding its final meeting of the year today and tomorrow to decide whether to cut interest rates further or hold them steady at the current three-year low of 3.75-4%. It is widely expected to opt for another quarter-point reduction to boost a weakened labor market, though any move would signal a “hawkish cut” as inflation stays sticky and policymakers remain divided.

The Central Bank of the UAE will likely mirror the Fed’s decision, given the AED’s peg to the USD.

HAPPENING THIS WEEK-

The UAE is among eight countries attending the Pax Silica summit hosted by the US on Friday, 12 December at the White House. The meeting will gather close US allies including Japan, South Korea, Singapore, the Netherlands, the UK, Israel, and Australia as the US looks to reduce dependence on China and counter its dominance in AI technology. Washington aims to secure agreements with the attending countries — all of whom either possess critical mineral resources or host major semiconductor firms.

DATA POINT- China accounts for over 90% of the world’s rare earths and permanent magnet refining capacity — essential for the development of computer chips and other AI technology — followed by Malaysia with just 4%.

THE BIG STORY ABROAD-

The battle for Warner Bros is dominating the conversation in the global business press. EnterprisePM dove into the potential industry impacts of the Netflix bid here: Part 1 | Part 2.

Meanwhile, US President Donald Trump is threatening to impose a 5% tariff on Mexico if it fails to release more water to the US, accusing the country of violating a 1944 water-sharing treaty that requires Mexico to send 1.75 mn acre-feet of Rio Grande water every five years. (Reuters | Wall Street Journal | New York Times | CNBC)

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CIRCLE YOUR CALENDAR-

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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