Good morning, friends, and happy FRIDAY. We cap off an exceptionally busy week of news with another blockbuster issue — with an update on Eagle Hills’ (now canceled) plans for a “mini Dubai” in Budapest, an acquisition from EGH Gulf, and a debt issuance from Sharjah. We also have plenty of data on M&A and IPO activity in the past year, so let’s dive in.

BUT FIRST- Just in: The UAE and France agreed to invest some USD 30-50 bn in a 1 GW data center and in French and Emirati AI, as part of a new framework agreement, Reuters reports. The two countries want to create a strategic AI partnership, with plans to pour investments in chips offtake, data centers, and talent development, state news agency Wam reports, without disclosing further details on the planned data center or the other investments. They will also look to set up “Virtual Data Embassies” to enable sovereign AI and cloud infrastructure in both countries. UAE President Sheikh Mohamed bin Zayed al Nahyan inked the agreement in Paris, where he is set to attend the AI Action Summit taking place on 10 and 11 February.

WEATHER- We have a cloudy day ahead of us, according to the National Center of Meteorology (pdf). The mercury will reach 28°C today in Dubai before dropping to an overnight low of 19°C. Meanwhile, in Abu Dhabi, temperatures will peak at 27°C, with a low of 19°C.

WATCH THIS SPACE-

#1- Construction costs in the UAE are expected to increase 2-5% y-o-y in 2025, while Saudi Arabia could see a rise of 5-7% on the back of economic uncertainty, supply chain disruptions, and labor shortages, Zawya reports, citing a Currie & Brown report. Geopolitical instability and intensifying competition for specialized materials due to rapid AI and digital technology advancements are also expected to drive up costs across the region.

Analysts urge caution: “There are many uncertainties that could impact costs, delays, and feasibility,” Currie & Brown’s Southern Gulf managing director Doug McGillivray warned, adding that companies should remain cautious despite the region’s significant construction pipeline. Robust risk management and flexible project planning will be key to long-term resilience, he said.

REMEMBER- The UAE has a pipeline of USD 659 bn in construction projects for 2025, according to Emirates NBD’s estimates. The country accounted for 44.5% of the total value of construction contracts awarded in the GCC in 2024, with the value of its awarded contracts rising 14% y-o-y to USD 121 bn, Al Etihad previously reported, citing a BNC Network report.

#2- UAE to fast-track green patent approvals: The Economy Ministry launched an IP accelerator and roadmap to speed up approvals for green and sustainability-related patents, reducing processing times from 1-2 years to 3-6 months, Khaleej Times quotes Abdel Rehman Al Muaini, assistant under-secretary for the Economy Ministry’s intellectual property sector, as saying. The three-month initiative, which is part of the Green Intellectual Property program launched last year, aims to ramp up technology localization and increase green patents to 8% of total filings, covering innovations in renewable energy, water, and other sustainability sectors. The UAE recorded over 3.6k patent applications in 2024.

How it works: The ministry will collaborate with local stakeholders and the World Intellectual Property Organization to implement the roadmap, providing legal protections — including protection of industrial property rights, trademarks, and copyrights and neighboring rights — as well as fee waivers and potential collaboration for inventors and research institutions, Wam reports.

#3- Dubai rolls out new social welfare and digital transformation policies: Dubai Crown Prince Sheikh Hamdan bin Mohammed approved new policies to improve social welfare, housing access, and digital services in Dubai, according to the Dubai Media Office. The initiatives include a new child protection protocol, a new community development fund, a property classification initiative that allows property owners to subdivide real estate units and issue independent title deeds for each unit within the building, as well as initiatives to designate pedestrian zones and to unify digital government services into one portal.

#4- Sigma Broking eyes selling business, including Dubai office: London Metal Exchange member Sigma Broking, which operates an office in the Dubai International Financial Center, is in talks to sell its business amid mounting capital requirements, Reuters reports, citing sources familiar with the matter. A source said six parties have expressed interest in acquiring the brokerage, which includes its Dubai and US operations.

#5- More reshuffling at Getir: Mubadala-backed Turkish startup Getir has reinstated Batuhan Gultakan as CEO of Turkish startup Getir, just days after he was ousted in a boardroom power struggle, Reuters reports, citing a document it saw. The company’s board has also been reshuffled, adding GetirFinans CEO Yigit Caglayan, while founder Nazim Salur’s sons, Mert and Turancan Salur, were removed from the board on 31 January, rendering any instructions from them void.

IN CONTEXT- Mubadala secured shareholder approval last month at an extraordinary general meeting (EGM) to separate Getir’s profitable local grocery delivery operations from the company’s noncore businesses — a move the fund says is necessary to stabilize the company, whose valuation fell to USD 2.5 bn in 2023 from USD 11.8 bn in 2022 amid cashburn and exits from key markets. The wealth fund applied for sole ownership of Getir’s grocery and food delivery businesses with Turkish antitrust authorities in September, after acquiring a controlling stake in the company back in June, leading a USD 250 mn funding round tied to the company’s restructuring.

The shake-up marks a major setback for Salur, who initiated legal action last month to challenge Mubadala’s move to seek full control of Getir, which he described as an “illegal coup” aimed at reducing the founders’ stake to zero. The company’s founder also planned to contest the EGM decision in courts in the Netherlands, Turkey, and England, arguing that only two out of nine board members participated in the resolution to call the meeting. A hearing on the matter was scheduled for 24 January at the Enterprise Chamber of the Amsterdam Court of Appeal.

#6- The UAE’s debt capital market (DCM) is expected to have a good 2025, and is projected to reach a valuation of over USD 400 bn over the next few years, according to Fitch Ratings, citing their global head of Islamic finance Bashar Al Natoor. This was attributed to “funding diversification, upcoming debt maturities, infrastructure financing, regulatory reforms, and the [AED] monetary framework implantation.”

The country was the third-largest USD debt issuer in emerging markets — excluding China — and second-largest among GCC countries in 2024. Sukuk made up 20.8% of the UAE’s USD issuance last year, followed by ESG at 17.2%. Meanwhile, the AED share of the DCM increased by 23% in 2024.

Still, the UAE’s DCM outlook faces some challenges, with the investor base still concentrated in banks despite large corporates issuing debt. AED issuances among banks and corporates alike remain on the rare side.

REMEMBER- Fitch Ratings previously expected the UAE’s DCM to expand some 11% y-o-y to USD 300 bn (AED 1.1 tn) in 2024-2025.

#7- India + UAE aim for USD 100 bn in bilateral trade: India and UAE plan to expand their 10-year trade agreement to include eight new sectors, as they aim for upwards of USD 100 bn in annual bilateral trade, Indian Business and Profession Council official Sahitya Chaturvedi told Arabian Gulf Business Insight. The new sectors will include AI, financial services, digital technologies, and logistics.

REMEMBER- Last year, India and the UAE inked several agreements on bilateral trade, including to set up a multi-modal trade corridor and increase investment and cooperation across major sectors including energy and technology. The UAE-India Cepa Council and the Indian Chamber of Commerce have also signed an MoU to boost trade and economic collaboration. The two nations also shifted trade payments for oil to their local currencies in 2023.

PSAs-

#1- Sharjah’s Roads and Transport Authority will close the Muwaileh exit on the Sharjah-Dhaid Road from 6 to 10 February for infrastructure upgrades, the authority announced on X.

#2-Dubai launches world’s first pre-arrival yacht inspection service: The Dubai Maritime Authority, under the Ports, Customs, and Freezone Corporation, introduced the world’s first pre-arrival condition inspection service for yacht owners, according to a statement posted on X. The initiative allows yacht owners to obtain navigation and operational permits before arriving in Dubai’s territorial waters.

HAPPENING TODAY-

#1- It’s semi-finals day at the Mubadala Abu Dhabi Open at Zayed Sports City, after the quarter-finals saw Tunisia’s Ons Jabeur edged out in an upset by Kazakhstani Elena Rybakina, and Canadian eighth seed Leylah Fernandez ousted by American Ashlyn Krueger. Meanwhile, 2023 champion Belinda Bencic beat Marketa Vondrousova to make it to the semifinals with Rybakina, while Czech world no. 25 Linda Noskova also beat Magda Linette and will now face Kreuger in the smei-final. The semifinals begin today after 5pm.

You can still buy tickets for the tournament, which ends on 8 February, here.

#2-The SWAAC ELSO Annual Conference 2025 runs through 8 February at the Conrad Hotel Abu Dhabi, bringing over 1k global experts, doctors and lecturers in Extracorporeal Membrane Oxygenation (ECMO). The conference will feature discussions on ECMO research, clinical advancements, and future priorities in life-saving therapies.

#3- TheMarsh Energy Industry Conference 2025 continues today and tomorrow in Dubai, bringing together global energy leaders, policymakers, and innovators to discuss the clean energy transition. The event features the participation of key players including Adnoc, Acwa Power, Petrofac, and EDF Renewables, alongside experts in AI, risk management, and climate resilience.

THE BIG STORY ABROAD-

It’s a mixed bag this morning in the foreign press as more of US President Donald Trump’s executive orders get plenty of ink, while some attempt to make sense of his calls for a “cleanout” of Gaza. On the business side, Amazon is getting some attention after publishing its earnings.

Trump imposed sanctions on International Criminal Court officials who investigate the US and Israel, reintroducing one of the policies from his first term — just months after the ICC issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and his then-defense minister Yoav Gallant for war crimes. (FT | Reuters | AP | Guardian)

Trump also doubled down on his idea to clear out Gaza and allow the US to take over yesterday, even as White House officials tried to backtrack and explain that any relocation would be temporary. Trump explained that Gaza would be “turned over” to the US to create “one of the greatest and most spectacular developments of its kind on Earth” and Palestinians moved to “far safer and more beautiful communities” in an X post. The foreign press is out with tens of analysis pieces attempting to break down the seriousness of Trump’s suggestions and the realities of living in Gaza after the ceasefire: Bloomberg | France24 | NY Times.

IN BUSINESS NEWS- Amazon said it plans to invest USD 100 bn this year as it looks to boost AI investments, after posting mixed earnings which saw a boost to the top and bottom lines and a weaker-than-expected sales forecast for the current period amid capacity constraints like issues with electricity and delays in getting hardware. The company’s shares fell 4% in extended trading. (CNBC | Bloomberg | AP)

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