Good morning, lovely people, and happy FRIDAY. It’s the final day of the first month of the year, and we’re ringing in February with a nice, brisk issue. We have a fresh investment from Abu Dhabi sovereign wealth fund ADQ in critical minerals, and news that Dubai’s property prices rose 27.5% in 4Q 2024. Plus: We have another batch of earnings for you, including from our friends at Mashreq. Let’s dive in.

WEATHER- Expect more cloudy conditions today: Partly cloudy conditions are expected to persist across the country through the weekend, accompanied by a chance of light rainfall, blowing winds and dust, and a drop in temperatures, according to the National Center of Meteorology (pdf). Dubai will see the mercury hit 24°C today, with an overnight low of 15°C, while temperatures will hit 20°C in Abu Dhabi, with an overnight low of 17°C.

WATCH THIS SPACE-

#1- Abu Dhabi-backed RedBird IMI and British broadcaster ITV are in talks to potentially merge their production businesses, people familiar with the matter told Reuters. The potential merger could take place after ITV carves out its broadcast business, merging it with RedBird IMI’s All3Media, which it acquired for GBP 1.5 bn last year, with both RedBird IMI and ITV holding stakes in the studios entity, one of the people said. The merger would create one of Europe’s largest production companies, with some GBP 3.2 bn in annual revenues.

REMEMBER- RedBird IMI is still trying to sell British newspaper The Telegraph after withdrawing its bid to acquire the publication last year, following months of opposition from the UK government. Options include potentially selling to US fund manager RedBird Capital, or to Leon Black, Apollo Global Management’s co-founder, and New York Sun owner Dovid Efune.

#2- Adnoc could be inching closer to bid on Shell’s South African downstream assets, as a valuation dispute with its local partner Thebe Investment nears resolution, unnamed sources told Bloomberg. Shell owns a network of 600 service stations across the country and expects to raise up to USD 1 bn from this transaction. Other interested parties include Saudi Aramco and trading company Trafigura. The company is currently working with Rothschild to manage the planned sale.

REMEMBER- Adnoc was mulling the acquisition since May 2024, which was then valued at USD 800 mn. The sale would include the company’s aviation, marine, construction and road, trading and supply, commercial fuels, and lubricant operations. South Africa’s chemicals and energy player Sasol, Switzerland-based Puma Energy, and Swiss company Glencore are considering a potential bid.

PSAs-

#1- Salik will implement its new variable road toll pricing starting today, The National reports.

Here’s the breakdown:

  • 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.

REMEMBER- The road toll pricing schedule will be slightly different for the month of Ramadan. Peak hours will be on weekdays between 9am and 5pm, while the off-peak hours will be on weekdays between 7-9am and between 5pm and 2am. Meanwhile, no toll fees will apply between 2-7am daily, and all day Sunday except during public holidays or major events.

ALSO- Parkin will introduce variable parking tariffs as of March, which will see new fees introduced for peak hours (8-10am and 4-8pm), with a fee of AED 6 per hour for premium parking spaces and AED 4 for other public spaces. The new policy will also see an AED 25 per hour fee introduced for parking near event zones as of February.

#2- You might find less Sheikh Zayed road traffic in your morning commute: Dubai’s Roads and Transport Authority (RTA) rolled out three major improvements on Sheikh Zayed Road to boost road capacity and efficiency, according to the Dubai Media Office. The projects include expanding merging distances and adding lanes at Umm Al Sheif-Al Manara Street (towards Abu Dhabi), Shangri-La Hotel service road (near Dubai Mall, and Al Marabi-Al Manara Street (towards Abu Dhabi).

#3- Dubai malls roll out barrierless parking with fines for non-payment: Majid Al Futtaim began rolling out a barrierless parking system at its major Dubai malls, starting with City Centre Deira and soon to follow at Mall of the Emirates in February, Khaleej Times reports. The new system uses cameras to track license plates, eliminating the need for parking tickets.

Motorists must pay parking fees within three days of exiting, or face a AED 150 fine. Parking violations, such as using restricted spaces without permits, will face a AED 1k penalty.

DATA POINTS-

#1- DXB hits a record 92 mn passengers in 2024: Dubai International Airport handled 92 mn travelers in 2024, marking a 6% increase from 2023, Dubai Ruler Sheikh Mohammed Bin Rashid Al Maktoum said on X. The airport also recorded 440k flight movements and served 106 airlines flying to 272 cities across 107 countries.

#2- The Global Hotel Alliance (GHA) ranked the UAE second globally in hotel revenue generated by international tourists in 2024, according to a press release. This revenue amounted to AED 9.9 bn with tourists from the UK, Russia, and Germany being the top three nationalities staying in UAE hotels, EmaratAlyoum reports. International stays generated 76% of the UAE’s hotel revenues during last year.

#3- Ras Al Khaimah recorded a 27.5% increase in new business licenses in 2024, with 2.2k new licenses registered during the year, marking a decade high, according to a social mediapost. Industrial licenses grew by 36.8%, while commercial licenses grew 28.6%, and professional licenses grew 25.7%. The total capital of new licenses reached AED 1.1 bn, a 55.3% increase from AED 715.1 mn in the previous year. The total number of valid licenses reached 20k, with a total registered capital of AED 9.7 bn, reflecting a 20% increase from the previous year.

THE BIG STORY ABROAD-

It’s a mixed bag in the foreign business press this morning, with plenty of earnings coverage, an investment update on OpenAI, and economic growth figures for the US and Saudi Arabia. Plus: US President Donald Trump says he will implement a 25% tariff on Mexico and Canada tomorrow, marking the first time he acts on his tariff threats since taking office. (Bloomberg | AP | Reuters)

#1- Apple’s shares rose 3% in afterhours trading after the company forecast strong iPhone sales as it plans to roll out more AI features, after seeing a dip in sales in China and general iPhone sales in 4Q 2024. (CNBC | Bloomberg | Reuters | FT)

#2- In other earnings news, Intel posted a decline in sales and revenues as it continues to pursue a turnaround strategy, while Microsoft shed USD 200 bn of its market value after posting disappointing growth for its cloud business. Also: Samsung reported slower net income growth in 4Q 2024, missing analyst estimates. (FT | FT | CNBC)

#3- OpenAI is in talks with investors — including SoftBank, which is also among the backers of its USD 500 bn data center project — for a USD 40 bn funding round that would value the ChatGPT maker at USD 300 bn. (FT | Bloomberg | CNBC | Reuters)

ON THE ECONOMIC GROWTH SIDE, the US economy slowed in 4Q 2024 despite strong consumer spending and domestic demand growth. Meanwhile, closer to home, Saudi Arabia’s economy grew at the fastest pace since 2022 in the final quarter of the year, widening at a 4.4% clip on the back of non-oil economic growth. (Reuters | Bloomberg)

And in non-business news, the American Airlines jet collision with a Black Hawk military helicopter in Washington yesterday left 67 dead, with no survivors. (AP | CNBC | Bloomberg)

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CIRCLE YOUR CALENDAR-

The Sharjah Entrepreneurship Festivalwill take place on 1 and 2 February at the Sharjah Research, Technology and Innovation Park. The agenda features discussions on AI, crypto, and growth strategies.

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 International Conference on Reprographic Rights Management will take place between 19-20 February in Sharjah. The event will feature panel discussions on creative rights and their collective management, as well as the impact of artificial intelligence and technology on creative works.

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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