UAE plans to invest USD 50 bn in Canada (+ 1 bn in AI projects in Africa)

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WHAT WE’RE TRACKING TODAY

THIS MORNING: UAE plans to invest USD 1 bn in African AI projects + IHC eyes Lukoil’s assets

Good morning, friends, and welcome to the final workweek of November. The news flow continues to keep us busy as we all make plans for the long weekend coming up next week.

THE BIG STORY OF THE DAY is the UAE and Canada’s investment framework, which will see the UAE pour USD 50 bn into Canada’s AI, logistics, and mining sectors. Meanwhile, the country is also planning to invest USD 1 bn in AI projects across Africa.

On the macro front, Dubai approved a bumper budget for 2026-2028, which will see spending rise 15.4% y-o-y next year, while Fitch Solutions’ BMI has upgraded its growth forecast for the UAE for the second time to 5.2% this year. Meanwhile, in M&A news, Adnoc has cleared all regulatory hurdles for its acquisition of Covestro.

WEATHER- Temperatures are cooling this week with light rains expected in some areas of the country and some foggy mornings ahead, the National Center of Meteorology forecasts (pdf). Dubai is in for a high of 31°C today and a low of 18°C, while Abu Dhabi is set for a 30°C high and a 20°C low.

WATCH THIS SPACE-

#1- The UAE will launch a USD 1 bn initiative to support and fund AI projects in Africa, according to Wam. The AI for Development program will be rolled out in partnership with the Abu Dhabi Exports Office (Adex) and the UAE Foreign Aid Agency.

The details: The initiative will support projects that integrate AI usage into sectors like infrastructure, agriculture, education, healthcare, climate adaptation, and government services, Bloomberg reports, citing State Minister Saeed bin Mubarak Al Hajeri at the G20 leaders’ summit. The program will include “access to AI computing power, technical expertise, and global partnerships,” he added. It also aims to facilitate projects boosting economic and tech cooperation between Emirati firms and Africa, Director-General of the Abu Dhabi Fund for Development Mohamed Saif Al Suwaidi said.

DATA POINT- The UAE is the fourth-largest investor in Africa, with bilateral trade up 28% y-o-y in 2024 to reach USD 107 bn, Reuters reports, citing Al Hajeri’s statement. Its total investments in Africa exceeded USD 118 bn between 2020-2024.

#2- Abu Dhabi’s International Holding Company (IHC) is interested in acquiring Lukoil’s overseas assets, Reuters reports, citing a company note. The company joins a growing list of potential buyers that includes ExxonMobil, Chevron, Carlyle, and reportedly Adnoc, with the company said to be looking to sell its entire portfolio ahead of US sanctions set to take effect on 13 December. Lukoil had agreed to sell its assets to Swiss commodity trader Gunvor earlier this month, though the US Treasury effectively blocked the sale due to its ties to Russia.

What are the assets? Lukoil’s international portfolio — estimated at some USD 22 bn — includes refineries in Europe and stakes in oilfields across Kazakhstan, Uzbekistan, Iraq, Mexico, Ghana, Egypt, the UAE, and Nigeria, Reuters reported separately.

REMEMBER- IHC could deploy some USD 30-35 bn over the next 18 months to fund investments through debt and equity, its CEO Syed Basar Shueb told the newswire last week.

#3- Daily Mail owner to buy Telegraph in agreement with RedBird IMI: RedBird IMI, a joint venture (JV) between US private equity firm RedBird Capital and Abu Dhabi’s IMI, struck a GBP 500 mn agreement that would see Daily Mail parent company DMGT acquire The Telegraph newspaper, a week after the JV withdrew its own bid for the UK newspaper, according to a joint press release. DMGT said it is now in exclusivity to finalize the takeover and pledged to keep the broadsheet editorially independent while investing heavily to scale the brand globally, particularly in the US. A RedBird IMI representative said the agreement “will shortly be submitted to the Secretary of State.”

IN CONTEXT- How the bidder became the seller: RedBird IMI took control of the titles in 2023 through a loan-based arrangement that it had planned to convert into equity, but the government later blocked foreign state-backed entities from owning national newspapers, leaving the JV unable to complete its own takeover and effectively holding the assets in limbo. IMI was set to take a small minority stake (capped at 15%) as part of RedBird’s broader takeover, but that too has now fallen through after what sources have said was a long and slow-moving clearance process.

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PSA-

Abu Dhabi to restrict heavy vehicles on key corridors from 1 December: Abu Dhabi’s Integrated Transport Center (ITC) will enforce new restrictions on heavy-vehicle movement along Sheikh Maktoum bin Rashid Road (E11) and Al Raha Beach Road (E10) starting 1 December, with truck access on Al Rawdah Road (E30) in Musaffah banned during morning and evening peak hours, according to a press release. ITC has designated Al Fayah-Seih Shuaib Road (E75) and Al Haffar Road as alternative truck corridors. For Musaffah, trucks will be redirected during peak hours via the ICAD Bridge.

HAPPENING TODAY-

#1- A Dubai Chambers of Commerce delegation is in Malaysia and Cambodia starting today and until Friday, 28 November to explore investment and potential partnerships for Dubai companies, state news agency Wam reports. The mission includes meetings with government bodies, major companies, and one-on-one business sessions to build long-term trade and investment ties. Delegates will study local investment environments and prospects to potentially expand to those markets to support export and re-export growth.

#2- The Big 5 Global Exhibition kicks off today and runs until Thursday at Dubai World Trade Center. The four-day event convenes construction leaders and policymakers in the urban development ecosystem. Over 2.8k industry suppliers will be at the event, which will focus on advanced technologies and collaboration on infrastructure innovation.

#3- LiveableCities X is also taking place from today until Thursday at Dubai World Trade Center. The event brings together international city planners, policymakers, and urban planners to discuss the latest technologies and solutions for sustainable and smart urban environments.

HAPPENING THIS WEEK-

#1-Dubai Silicon Oasis will host the Doers Summit on Wednesday and Thursday at Dubai Digital Park, bringing together founders, operators, investors, and technology players for panels, workshops, and startup showcases focused on scaling companies and building digital products. The agenda will focus on AI, fintech, engineering, and venture building, with hands-on sessions for early-stage founders.

#2- Date with Tech runs from Wednesday to Thursday in Dubai’s Madinat Jumeirah. The event — a new summit covering AI, digital assets, cybersecurity, immersive tech, and smart infrastructure — spotlights the region’s fast-growing tech sector, from a projected USD 166 bn AI market by 2030 to rising data-center and digital-transformation investment, and serves as a platform for next-gen technology partnerships.

#3- The DFSA-HKMA Joint Climate Finance Conference is happening on Wednesday at the DIFC Conference Center. Co-hosted by the Dubai Financial Services Authority (DFSA) and the Hong Kong Monetary Authority (HKMA), the event brings together regulators, global investors, and financial institutions to explore sustainable finance solutions and deepen bilateral collaboration. Key topics include scaling climate finance through tokenization and technology.

THE BIG STORY ABROAD-

The US proposal to end the war in Ukraine is dominating headlines this morning. US and Ukrainian officials who met yesterday in Geneva said they made progress on a new version of the controversial 28-point plan that would have seen Ukraine acquiesce to most of Russia’s territorial and military demands. It’s still unclear what issues have been resolved during the talks, which come at a difficult moment for Kyiv after slowly losing ground against Russia in a number of key regions. (Reuters | Financial Times | Bloomberg)

CLOSER TO HOME- A high-profile strike by Israel on Beirut — the first in months — killed militant group Hezbollah’s acting military chief of staff Haytham Ali Tabatabai. Some fear the strike could be paving the way for a renewed offensive campaign on Lebanon to force Hezbollah to disarm. (Washington Post | Reuters)

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UAE to invest USD 50 bn across several sectors in Canada under a joint investment framework

The UAE signed a USD 50 bn investment framework with Canada, targeting sectors like AI, logistics, and mining, according to a statement. The move was announced during Canadian Prime Minister Mark Carney's visit to Abu Dhabi.

DATA POINT- The UAE’s foreign direct investments in Canada stood at USD 8.8 bn last year, during which Canada invested USD 242 mn in the Emirates.

ICYMI- Earlier in the visit, the two sides inked an investment protection and promotion agreement, aimed at setting out clear rules for Canadian firms to expand in the UAE. The two countries also launched trade talks during the visit, targeting UAE entry for Canadian firms specializing in engineering, agrifood, aerospace, and seafood, and potentially boosting bilateral trade to USD 7 bn within 10 years — up from USD 3.4 bn currently.

Other agreements inked during the visit:

Montreal’s AI research institute Mila partnered with the Technology Innovation Institute to advance research on AI architecture;
BlackBerry teamed up with the Cyber Security Council to strengthen cyber cooperation and infrastructure;
Invest in Canada and the Investment Ministry agreed to identify and explore large-scale investment windows in Canada.

Next up: Canada’s International Trade Minister Maninder Sidhu will lead a business delegation to the UAE early next year to encourage Emirati investors to explore prospects in Canada through its Major Projects Office, including in LNG, critical minerals, ports, data infrastructure, AI, and agriculture. Canadian pension funds — which manage USD 2 tn — will also travel to the UAE in 2026 to pursue long-term investments and partnerships and Emirati sovereign wealth funds will visit Canada. The two countries are also increasing the number of flights operating between them.

Canada pivots away from US: The Canadian government is aiming to double non-US exports over 10 years and bring in USD 1 tn in new investments in five years. The US is Canada’s largest trading partner, with over USD 909.1 bn traded last year, though trade talks over lowering US-imposed tariffs have stalled after US President Donald Trump took offense to an anti-levy advertisement. Canada isn’t in a rush to restart talks as it pushed ahead with forging new trade alliances.

Dubai ruler approves record AED 302.7 bn budget for 2026-2028

Dubai ruler signs off on the emirate’s largest-ever three-year budget: Dubai Ruler Mohammed bin Rashid Al Maktoum approved a record AED 302.7 bn budget for the emirate covering 2026-2028, marking the largest budget cycle in the emirate’s history, according to Dubai Media Office. The government projects AED 329.5 bn in revenues and AED 302.7 bn in expenditures during this period — which would net an operational surplus of 5%.

For 2026: Projected expenditure for FY 2026 is AED 99.5 bn, with revenues expected to total AED 107.7 bn. The final spending plan sets out a 15.4% y-o-y increase in expenditure compared to 2025’s budget of AED 86.26 bn.

The budget allocates 48% of spending to infrastructure, with projects including roads, tunnels, bridges, transportation systems, sewage stations, parks, renewables facilities, and a rainwater drainage network. Some 28% of spending will go toward social development, while security, justice, and public safety will get 18%, and the government’s development initiatives 6%.

REMEMBER- The UAE cabinet also greenlit its largest ever federal budget for 2026 last month. The budget sets out a 29.2% y-o-y increase in both expenditure and revenues compared to 2025’s budget — up to AED 92.4 bn from AED 71.5 bn.

BMI upgrades GDP forecast to 5.2% in 2025 and 5.6% in 2026

Fitch Solutions’ research unit BMI revised its GDP growth forecast for the UAE to 5.2% in 2025, marking a 0.2 percentage-point increase from its latest forecast in October, it said in a recent research note. BMI now sees our economy accelerating further to 5.6% next year, up by 0.4 percentage points from last month’s projection.

Driving the expansion: The upgrade is mainly driven by strong 2Q data from Dubai, which surprised to the upside, a higher oil production forecast, and a stronger non-oil sector in Abu Dhabi. A narrower net exports deficit and robust fixed investment will also drive accelerated growth in 2026.

REMEMBER- Dubai's GDP grew 4.7% y-o-y in 2Q 2025 to hit AED 122 bn, outpacing the 4% growth recorded in 1Q — the highest annual growth rate recorded in four and a half years. Abu Dhabi’s GDP grew 3.8% y-o-y to AED 306.3 bn in 2Q, driven by a 6.6% expansion in the non-oil economy to a record AED 174.1 bn.

How it compares to other forecasts: BMI’s forecast is more optimistic than the IMF and World Bank’s estimates of 4.8% growth in 2025 and 5% growth in 2026. The CBUAE had also expected the UAE’s real GDP to grow at a 4.9% clip in 2025 and 5.3% in 2026.

BMI now sees the UAE’s non-oil GDP next year growing at a 5.5% clip, up from 5.3% this year, according to the note. Non-oil sector growth will be driven by ongoing diversification initiatives, the expansion of trade supported by comprehensive partnership agreements, monetary easing policies, and government initiatives to boost the real estate sector and AI adoption, the note says.

Higher oil production will help boost the oil sector’s growth from 4.9% in 2025 to 5.8% in 2026, BMI states. The reading comes in below the 7% y-o-y growth projected for the oil sector during the first six months of 2026, per BMI’s predictions at its webinar last month, and comes as Opec+ decides to keep oil supply unchanged during 1Q 2026.

Potential risks: BMI warns that downside risks could stem from a potential oil supply glut, which could weigh on oil prices and lead Opec+ to temporarily halt production increases. A slower global economy could also weigh on the UAE’s non-oil sector.

Adnoc clears final hurdles for Covestro takeover

Adnoc’s play for Covestro enters its final stretch: Adnoc secured all remaining regulatory clearances for its acquisition of German polymer materials manufacturer Covestro, putting the transaction on track to close in the coming days, according to a press release. Adnoc International Germany Holding, the XRG subsidiary acting as bidder, received final approval from Germany’s Federal Ministry for Economic Affairs and Energy following the European Commission’s green light last week. The approval, like the commitments, is valid for a decade. Covestro had guided for the transaction to close before 2 December.

IN CONTEXT- At EUR 14.7 bn, the transaction counts as the largest Gulf-led buyout of a European-listed company in nearly two decades. The signs-offs bring an end to months of scrutiny, after Brussels opened an in-depth probe into the bid under its Foreign Subsidies Regulation warning that state-backed support, including an unlimited state guarantee, a planned capital injection, and tax benefits, could distort market competition. The energy giant responded by dropping the unlimited backing through amendments to its articles of association and agreeing to license Covestro’s sustainability patents to European rivals for 10 years.

What’s next? Covestro plans to carry out a EUR 1.17 bn capital increase once the acquisition closes to fund strategic investments and further its sustainability program. Covestro will remain headquartered in Leverkusen, continue under its existing management, and keep all employee agreements (including job protections, collective bargaining, and co-determination arrangements) intact.

Market reax: Covestro’s shares edged up 0.2% to EUR 60.36 apiece on the Frankfurt Stock Exchange at Friday’s close.

Dubai Airshow wraps up with plenty of agreements to boost eVTOl, manufacturing, and defense sectors

Dubai Airshow wrapped on Friday with another slate of agreements and developments for the UAE’s eVTOL plans, along with its manufacturing and defense sectors.

eVTOLS-

#1- Local eVTOL maker enters the chat: K2, Abu Dhabi Aviation Group, and Multi Level Group have partnered up to roll out the autocraft E20+, a passenger aircraft set to be jointly operated by the three firms, Wam reports. The three firms will also manage operational readiness, regulatory integration, pilot-training, MRO development, as well as vertiport infrastructure.

About Autocraft E20+: Abu Dhabi-based K2 subsidiary Autocraft is introducing the E20+ — a Chinese-built fixed-wing eVTOL, Aviation Week reported last week. The electric vehicle — developed by Shanghai-based TCab Tech — can travel at a speed of 260 kph when cruising, with a max flight speed of 320 kph and a max range of 200 km.

The aircraft will be locally assembled, and the company plans to develop a minimum of 9-10 eVTOLs in an initial phase, communications specialist at K2 Ahmed Al Mansoori told EnterpriseAM UAE on the sidelines of the event. The firm is gearing up to begin test flights for the aircraft in February, he added, with a view to launch operations by 2027.

#2- Emirates SkyCargo + Lodd team up on drone-powered delivery: Emirates SkyCargo has signed an MoU with Abu Dhabi-based drone manufacturer Lodd Autonomous to validate the use of vertical take-off and landing (VTOL) aircraft across the carrier’s global network until the end of 2027, according to a press release published last week. This will involve feasibility studies, regulatory coordination, and live demonstrations.

Watch the skies for Lodd flights: Lodd Autonomous is set to launch unmanned aerial vehicle (UAV) parcel and cargo deliveries by 2H 2026 — with the first test flight scheduled in November.

#3- Falcon Executive Aviation to build UAE’s first fully integrated private jet-heli-eVTOL terminal in Dubai: Falcon Executive Aviation — the private aviation arm of Alex Group Investment — is launching a fully-private, multi-modal fixed-base operator terminal in Dubai, according to a press release. The project will cater to private jet, helicopter, and future eVTOL operations, making it the first Emirati operator to launch an integrated gateway for all three services, according to the statement.

The details: The 6.4k sqm terminal is being developed as an ultra-private, high-security facility with direct helipad and vertiport connectivity, and will include VIP lounges, retail and private banking, and commercial spaces.

MANUFACTURING-

#1- Mubadala, Airbus expand A400M manufacturing collaboration: Mubadala Investment Company signed a framework agreement with Airbus to develop manufacturing, assembly, and support capabilities for Airbus’ A400M military transport aircraft, according to a press release (pdf). Strata, Mubadala’s aerostructures unit, is set to supply new A400M work packages now being defined with Airbus.

Next up, training hub: The agreement also includes plans for a National Aerospace Training Center of Excellence in Al Ain to develop UAE aerospace talent and support future industry demand.

REMEMBER- Strata also agreed to develop a wing component for Airbus' A320 jet models, meeting nearly half of total demand for the component.

#2- A new manufacturing unit lands at MBRAH: The Mohammed bin Rashid Aerospace Hub (MBRAH) and Atherion Aerospace — a new aerospace manufacturing subsidiary of Economic Group Holdings (EGH) — signed an agreement to offer advanced aerospace manufacturing services and components from its base at MBRAH, according to a statement published on Friday.

DEFENSE-

#1-Tawazun Council inked nine contracts worth AED 1.0 bn on the final day of Dubai Airshow, bringing total agreements signed on behalf of the Defense Ministry and Abu Dhabi Police during the week to 36 contracts worth AED 25.5 bn, state news agency Wam reports.

On the final day, local contracts totaled AED 544.7 mn and included:

an AED 57.6 mn contract with M4 Trading for a ground control station;
an separate AED 161.6 mn contract with M4 Trading for aircraft procurement;
an AED 29 mn contract for maintenance of cooling equipment and generators with Al Taif;
an AED 154.5 mn agreement with MP3 to supply materials and equipment for pilots and aerial rescue operations;
International Golden Group obtained AED 65.9 mn for aerial-drop systems;
Abu Dhabi Autonomous Systems Investments (ADASI) secured AED 76 mn for drone procurement.

… and three international contracts totaled AED 467.9 mn:

US defense and aerospace firm Lockheed Martin received AED 184 mn for technical support services and spare parts for portable devices;
Lockheed Martin also secured AED 63.6 mn for spare parts for aircraft simulators;
Raytheon, another US aerospace and defense player, was awarded an AED 220.4 mn contract to supply friendly-force identification systems.

ALSO- Tawazun pushes deeper into aerospace manufacturing: Tawazun Council and Swiss aircraft manufacturer Pilatus Aircraft signed a new agreement to widen the scope of composite manufacturing for the PC-12 Pro aircraft, state news agency Wam reports. Production will be carried out by Mubadala-owned advanced aerostructures producer Strata and Pilatus. The accord builds on existing work packages between Strata and Pilatus and formalizes an offset-backed expansion into PC-12 Pro components.

#2- Satcom manufacturing push from Katim + Space42: Edge subsidiary Katim signed a strategic alliance with spacetech firm Space42 to manufacture secure satellite communications (satcom) hardware for sovereign use in the UAE, according to a statement. The hardware will integrate Katim’s encrypted communications technologies with Space42’s satellite infrastructure to deliver locally built systems for defense, government, and commercial customers.

#3- Leonardo eyes full-scale manufacturing in Dubai: Italy-based aerospace defense and security group Leonardo is studying plans to launch full manufacturing operations in Dubai, Al Bayan cites Leonardo International CEO Carlo Gualdaroni as saying. The firm is looking to convert its UAE representative office into an integrated industrial entity, and to use Dubai as an export hub for markets where it already has a strong commercial footprint. Joint projects with local firms are also in the cards, with the firm aiming to train Emirati talent in Italy.

#4- Calidus, LIG Nex1 launch UAE missile manufacturing JV: Abu Dhabi-based manufacturer Calidus Holding Group and South Korean aerospace and arms manufacturer LIG Nex1 signed a joint venture agreement to co-develop and manufacture missile and air-defense systems in the UAE, Wam reports. The JV will establish local production lines and support next-gen air-defense tools, while a parallel MoU covers future cooperation on multi-layered air-defense systems, C2 systems, radars, and other technologies.

#5- Calidus also inked an agreement with Australian systems integrator 3ME Technology to codevelop hybrid power solutions for Calidus’ military vehicle fleet, Wam reports.

TECH-

#3- ADA Group looks to accelerate advanced aviation solutions: Abu Dhabi Aviation Group (ADA Group) inked an MoU with Abu Dhabi-based AI and data analytics firm Presight to embed AI, advanced analytics, and data-management systems across ADA Group’s aviation and industrial operations in the Emirates, according to a press release (pdf) published on Friday. The move aims to increase operational efficiency, boost fleet readiness, and support technological self-reliance across the UAE.

MAINTENANCE, REPAIR, AND OVERHAUL-

Royal Jordanian taps Sanad for engine MRO: Abu Dhabi-based aerospace firm Sanad inked a three-year engine maintenance, repair and overhaul (MRO) agreement with Jordan’s flagship airline Royal Jordanian, according to a statement released on Friday. Sanad will offer MRO services for V2500 engines across the airline’s fleet.

Abu Dhabi updates classification rules for engineering and contractor firms

DMT rolls out new rules for engineering and contracting firms: Abu Dhabi’s Department of Municipalities and Transport (DMT) issued an administrative decision introducing a set of legislative amendments to the classification system for engineering offices and contracting companies in the emirate, effective immediately, Wam reports. The decision follows meetings with local and international sector stakeholders and comes as part of DMT’s quarterly assessments of engineering establishments.

What’s new? The amendments remove the requirement to operate in at least two different activities for higher-category licensing, widening the number of establishments eligible to be classified as top-tier. Local firms, along with branches from other emirates or GCC countries, may now apply directly for higher categories based on their experience and capabilities.

The project-value requirements for Emirati-owned engineering establishments (contractors) has also been reduced, easing classification renewal, Wam reports, without clarifying what the new threshold is.

What we know: The special-grade classification requires a minimum of AED 20 mn in equity, three engineers with at least 10 years of relevant experience to be employed, and executed projects valued at at least AED 240 mn over the past decade, according to auditing firm HLB. This allows them to bid for government projects worth AED 100 mn and above, according to Clyde & Co (pdf).

More operational flexibility: Companies may also now use the expertise of a local corporate partner or a partner from other emirates to meet classification standards.

Reporting changes: The validity of the annual financial report required for classification has been extended to one year and six months, reducing delays linked to expiring documentation.

India’s Jindal and Haldiram earmark AED 1.1 bn for Kezad manufacturing push

MANUFACTURING-

Kezad inks AED 1.1 bn contracts with Indian firms in manufacturing push: AD Ports Group subsidiary Kezad Group inked two land lease agreements with Indian manufacturing giants Jindal Saw Group and Haldiram Group to develop two manufacturing facilities in Khalifa Economic Zones Abu Dhabi (Kezad), according to an ADX disclosure (pdf). The agreements are valued at upward of AED 1.1 bn and cover over 514k sqm.

The details: Jindal Saw will invest AED 1 bn to develop a seamless steel pipe manufacturing plant covering 400k sqm in Kezad Musaffah’s ICAD. The facility will produce 300k tons per annum of steel pipes and tubes for the oil and gas sector, destined for export both regionally and internationally. Meanwhile, Haldiram Snacks, India’s largest sweets and snacks manufacturer, will develop its first regional manufacturing hub in Kezad Al Ma’mourah — a 114k sqm facility that will accommodate 11 production lines, with some AED 150-200 mn in planned investments.

TECH-

Finvasia Group joins NextGen FDI, plans UAE HQ: India-based engineering and tech conglomerate Finvasia Group joined the UAE’s NextGenFDI program, state news agency Wam reports. As part of the move, ZuluTrade, its FX social trading firm, will set up its GCC headquarters in the UAE for five of its brands. Finvasia operates across sectors like fintech, blockchain, and healthcare. Its portfolio brands include blockchain and asset infrastructure firm Blockmaze, payments and digital asset company CapitalWallet, financial infrastructure player OneVault, and Jumpp — an AI-driven fintech app.

Other recent additions to NextGen FDI — launched in 2022 to attract global tech players to the UAE — include Chinese smart truck firm Trunk, Singapore-based engineering solutions player Quest Global, and global risk and supply chain intelligence company Exiger.

SPACE-

#1- Space42, Spain team up on earth observation: ADX-listed space-tech firm Space42 inked an MoU with Spain’s state-owned satellite operator Hisdesat Servicios Estratégicos to collaborate on earth observation and satellite communications (satcom), according to a press release. The partnership outlines plans for joint technology integration and market development across both companies’ space assets.

The plan: The partnership will focus on developing satellite-based data sovereignty services for government, defense, and commercial customers. The two will explore investments across three main domains, including earth observation, wideband, and narrowband satcom.

#2- UAE launches National Space Industries program: The Supreme Space Council approved the National Space Industries Program, a new framework aimed at expanding the UAE’s commercial space sector by doubling the number of companies operating in space industries and doubling space-sector exports over the next five years, Wam reports. The program includes economic incentives, investment policies, and operational support for local and international firms, along with improved access to national contracts and space-facility infrastructure.

ICYMI- The UAE was said to be preparing a new private-sector-focused space strategy for release before year-end, as it looks to boost private spending in the sector — which is already up 30% y-o-y — and now accounts for 45% of all space spending. The country has invested AED 44 bn into its space sector to date and aims to be among the world’s top 10 space hubs by 2031.

INVESTMENT-

Canada’s Inovia Capital opens ADGM office: Canada-based venture capital firm Inovia Capital expanded to the UAE after opening an office in ADGM, according to a press release. Head of Strategic Partnerships and Office of the CEO Claire Glossop Irani (LinkedIn) will lead Inovia’s regional operations, focusing on supporting portfolio firms in establishing commercial and financial links with MENA entities, particularly Emirati and Saudi firms. Inovia also has offices in Canada, the US, and the UK.

IN CONTEXT- This expansion comes on the back of a recent Canadian Innovation Delegation to the UAE in October. The two countries also recently inked an MoU on artificial intelligence and digital infrastructure, as well as a wider investment pact — discussions for which also focused on bilateral investment.

RETAIL-

Adnoc Distribution launches The Hub retail project: Adnoc’s retail arm Adnoc Distribution unveiled The Hub by Adnoc, a service station development including fuel, EV charging, auto maintenance facilities, and other retail and lifestyle amenities, according to a press release (pdf). The first site opened in Shawamekh, Abu Dhabi, with six locations scheduled by end-2025 and a nationwide rollout to 30 hubs by 2030. Adnoc Distribution expects the network to generate USD 30 mn in EBITDA annually by 2030.

Is AI being built on dissolving tracks?

When it comes to AI, ignore the stock charts — the real story may be in the amortization schedules. Pundits who spent last week watching the red arrows on the Nasdaq (down 2.7% for the week) may have missed the real story: The sell-off was noise, when the signal is in the accounting.

What we’re seeing now is the real-time collision between two fundamental views of the AI economy: The “deployment phase” optimists who see a productivity boom, and “capex realists” (think: Michael Burry) who see (at best) a hole in the balance sheet that revenue cannot (yet?) fill.

The bulls see a deployment dividend on the horizon. The New York Times has recently argued that the “hype cycle” is coming to an end and the “deployment cycle” has begun. The argument: AI is no longer a parlor trick — it’s starting to show up in GDP and output-per-hour data. Bulls claim we’re at the start of a structural shift comparable to electrification or the internet — but happening at 2x the speed.

The evidence: The cost of adoption is stabilizing while the efficiency dividend widens, suggesting the path to profitability is clearer than the market thinks.

The bears see a capex treadmill — and maybe some hinky accounting. There’s a flaw in the Internet 2.0 analogy, and it’s in the physics of the infrastructure. When the Dotcom bubble burst, it left behind mns of km of “dark fiber” — assets with a >20-year useful life that powered the internet for decades at near-zero incremental cost.

The catch: Today’s AI boom is built on silicon, not glass — and GPUs have short lifespans. Unlike fiber, GPUs are depreciating assets with “frontier lifespans” of roughly 3-4 years before energy efficiency gains make them economically obsolete.

The accounting hijinks: Hyperscalers like Microsoft and Google have quietly extended their server depreciation schedules to 5-6 years to protect current earnings. If the hardware becomes obsolete in three years, those earnings are a mirage.

The “re-buy” problem: As Sequoia’s David Cahn noted last year, the industry isn’t just building a railroad — it’s building a railroad where the tracks dissolve every 48 months. To stay in the game, Big Tech must re-spend its capex budget in perpetuity.

Famed contrarian Michael Burry (of The Big Short fame) has reportedly placed a USD 1.1bn wager against Nvidia and Palantir, warning that the sector is sleepwalking into a crash. His argument mirrors the depreciation thesis: He accuses hyperscalers of inflating earnings by artificially extending the “useful life” of their servers — a “depreciation trick” that boosts profits on paper while the hardware rots in reality.

The bottom line: If the Times is right, the revenue arrives just in time to pay for the next generation of chips. If it’s wrong, we aren't looking at a bubble, but at the most expensive depreciation write-down in corporate history.

MARKETS THIS MORNING-

Asian markets are mixed in early trading this morning, with both the Hang Seng and Kospi up 1.1% and the Shanghai Composite down 0.2%. Meanwhile, Japan’s Nikkei is closed in observance of Labor Thanksgiving Day.

ADX	9,795	-0.9% (YTD: +4.0%)
DFM	5,836	-1.3% (YTD: +13.1%)
Nasdaq Dubai UAE20	4,636	-2.0% (YTD: +11.3%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	3.6% o/n	3.7% 1 yr
Tadawul	11,011	0.0% (YTD: -8.5%)
EGX30	40,446	+0.4% (YTD: +36.0%)
S&P 500	6,603	+1.0% (YTD: +12.3%)
FTSE 100	9,540	+0.1% (YTD: +16.7%)
Euro Stoxx 50	5,515	-1.0% (YTD: +12.7%)
Brent crude	USD 62.27	-0.5%
Natural gas (Nymex)	USD 4.48	-2.1%
Gold	USD 4,096	-0.5%
BTC	USD 86,236	+1.5% (YTD: -7.7%)
Chimera JP Morgan UAE Bond UCITS ETF	AED 3.77	-0.3% (YTD: +8.2%)
S&P MENA Bond & Sukuk	152.18	+0.1% (YTD: +8.8%)
VIX (Volatility Index)	23.43	-11.3% (YTD: +35.0%)

THE CLOSING BELL-

The ADX fell 0.9% on Friday on turnover of AED 1.2 bn. The index is up 4% YTD.

In the green: RAK Co. for White Cement & Construction Materials (+5.0%), Agthia Group (+2.9%) and Aram Group (+2.6%).

In the red: Ins. House (-9.8%), ADCB Rights Issue 2025 (-7.2%) and Eshraq Investments (-5.1%).

Over on the DFM, the index fell 1.3% on turnover of AED 525 mn. Meanwhile, Nasdaq Dubai was down 2.0%.

CALENDAR

NOVEMBER

24-27 November (Monday-Thursday): Big 5 Global Exhibition, Dubai World Trade Center, Dubai.

24-27 November (Monday-Thursday): LiveableCities X, Dubai World Trade Center.

26 November (Wednesday): DFSA-HKMA Joint Climate Finance Conference, Dubai.

26 November (Wednesday): Final allocations for Almasar Education’s IPO on Tadawul.

26-27 November (Wednesday-Thursday): DATE (Digital Acceleration and Transformation Expo), Dubai.

26-27 November (Wednesday-Thursday): Doers Summit, Dubai Digital Park, Dubai Silicon Oasis.

DECEMBER

1-3 December (Monday-Wednesday): Eid Al Etihad (UAE National Day).

2-5 December (Tuesday-Friday): Sotheby’s Abu Dhabi Collectors’ Week, Abu Dhabi.

1-5 December (Monday-Friday): The World Congress of Neurosurgery, Dubai World Trade Center.

3-4 December (Wednesday-Thursday): Binance Blockchain Week, Coca-Cola Arena, Dubai.

7-14 December (Sunday-Sunday): Asian Youth Para Games, APC headquarters, Dubai.

8 December (Monday): DeFi Technologies Insights Global Symposium, Emirates Palace, Abu Dhabi.

8-9 December (Monday-Tuesday): BTC MENA Conference, Adnec Center, Abu Dhabi.

8-9 December (Monday-Tuesday): Global AI Show, Abu Dhabi.

8-10 December (Monday-Wednesday): The Bridge Summit, Adnec Center, Abu Dhabi.

8-11 December (Monday-Thursday): Abu Dhabi Finance Week, ADGM, Al Maryah Island.

9-10 December (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

9-11 December (Tuesday-Thursday): Automechanika Dubai Trade Show, Dubai World Trade Center.

10 December (Wednesday): UAE-Russia Business Forum, Dubai.

12 December (Friday): Emirates NBD to launch an open offer for Mumbai-listed RBL Bank’s public shares.

13-15 December (Saturday-Monday): Mobile Developers Week, Abu Dhabi.

18-23 December (Thursday-Tuesday): Games of the Future, Adnec, Abu Dhabi.

26 December (Friday): Tender period for Emirates NBD’s offer for RBL Bank’s public shares ends.

29-30 December (Monday-Tuesday): World Sports Summit, Dubai.

Signposted to happen sometime in 2025:

e& will complete Adnoc’s private 5G network;
Executive Committee Meeting (EXCOM) conference of the World Smart Sustainable Cities Organisation (WeGO).

Signposted to happen sometime in 2H 2025:

Closing of XRG's acquisition of Covestro.

JANUARY 2026

1 January: Client asset regime changes in Dubai International Financial Center take effect.

9-11 January (Friday-Sunday): 1 Bn Followers Summit, UAE.

13-15 January (Tuesday-Thursday): FESPA Middle East, Dubai Exhibition Center, Dubai.

12-15 January (Monday-Thursday): Dubai International Project Management Forum, Madinat Jumeirah, Dubai.

28-29 January (Wednesday-Thursday): IBA Arbitration Day Conference, Abu Dhabi.

28-30 January (Wednesday-Friday): World Customs Organization Technology Conference, Adnec Center, Abu Dhabi.

31 January - 7 February (Saturday-Saturday): Mubadala Abu Dhabi Open, International Tennis Center, Zayed Sports City.

FEBRUARY 2026

3-5 February (Tuesday-Thursday): The World Governments Summit.

12-15 February (Thursday-Sunday): The Society for Incentive Travel Excellence Global Conference, Abu Dhabi.

9-13 February (Monday-Friday): The World Health Expo (WHX), Dubai.

MARCH 2026

31 March - 2 April (Tuesday-Thursday): Arab Media Summit, Dubai.

26-28 March (Thursday-Saturday): Social Capital Conference, Dubai.

30 March - 2 April (Monday-Thursday): IAAPA Middle East Exhibition and Conference, ADNEC Center, Abu Dhabi

APRIL 2026

7-9 April (Tuesday-Thursday): Future Health Summit, Adnec Center Abu Dhabi.

13-15 April (Monday-Wednesday): AIM Congress, Dubai World Trade Center.

21-23 April (Tuesday-Thursday): UITP Public Transport Summit, Dubai

MAY 2026

19-20 May (Tuesday-Wednesday): Capital Market Summit, Madinat Jumeirah, Dubai.

JUNE 2026

15 June-15 September (Monday-Thursday): Dubai Mallathon, Dubai.

JULY 2026

31 July (Friday): Large businesses achieving annual revenues equal to or above AED 50 mn must appoint an accredited service provider for e-invoicing implementation.

Signposted to happen in 2026:

13-15 April (Monday-Wednesday): The International Glass Manufacturing Show, Dubai;
14-16 April: (Tuesday-Thursday): the International Property Show, Sheikh Zayed Rd, Dubai;
11-13 May (Monday-Wednesday): AI Everything Global, Adnec Center;
The UAE to host the Arab Competition Forum;
Dubai to host the Arab Actuarial Conference;
United Nations Water Conference;
Dubai Future Finance Week;
Investopia Global Talks, Tashkent.

Signposted to happen sometime in October 2026:

Abu Dhabi Space Week, Abu Dhabi.

Signposted to happen sometime in 2027:

1 January: Deadline for large businesses to implement e-invoicing;
1Q 2027: Completion of the first phase of Hassyan seawater desalination project;
31 March: Small businesses with annual revenues of less than AED 50 mn are obliged to contract with an accredited service provider for e-invoicing implementation ;
31 March: Government entities are required to appoint an accredited service provider for e-invoicing implementation;
1 July: Deadline for small businesses to implement e-invoicing;
1 October: Deadline for governments to implement e-invoicing;
Abu Dhabi’s solar and battery energy facility, combining 5.2 GW of solar capacity and 19 GWh of battery storage, is set for commissioning.

Signposted to happen sometime in 2029:

Sibos 2029 organized by the Society for Worldwide Interbank Financial Telecommunication (SWIFT), Dubai;
The commissioning of the seventh phase of Mohammed bin Rashid Al Maktoum Solar Park.

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