Good morning, friends — we’ve missed you. We’re back after a long publication holiday with the biggest updates from the past few days and the weekend.

The big story of the day is none other than Adnoc’s Covestro acquisition finally seeing the light — a major win for the UAE oil giant as it looks to boost its footprint overseas.

The M&A theme continues throughout the issue, with a mandatory tender offer from AD Ports that could see it secure up to 90% of Egypt’s Alexandria Container and Cargo Handling Company. Meanwhile, in India, two potential transactions from UAE firms look to be dead in the water — as Masdar pulls its take-private transaction for Renew and Emirates NBD is said to be reconsidering its bid for a second Indian lender.

It’s also a busy issue on the investment front, with a big ticket investment into noon, a new real estate debt partnership by Mubadala, and a new massive Mercedez Benz-branded city planned by Binghatti.

Finally, on the macro front, we have the latest inflation figures for Dubai and a breakdown of what the IMF thinks of the UAE economy based on its Article IV consultation.

Watch this space-

TRADE: The UAE and EU formally launched negotiations on a strategic partnership agreement (SPA), according to joint statements here and here. This comes as trade talks we’ve previously reported on are now four rounds deep, with another round expected early next year. The SPA is positioned as groundwork for finalizing a future trade agreement.

Our take: Brussels and Abu Dhabi want more structure around an already sizable relationship. The SPA is meant to anchor cooperation across digitalization, AI, connectivity, research, and the green transition — areas where regulatory alignment, rather than tariff cuts alone, will shape cross-border capital and technology flows.

What to watch: Timing and substance. When the SPA actually lands, which regulatory barriers it meaningfully tackles, and how that alignment accelerates or complicates the path to a full FTA.

TAX: The UAE just cleared the way for taxpayers to monetize their tax incentives and claim tax credits as refunds through a new federal decree-law picked up by state news agency Wam. The order of settlement now starts with tax credits, followed by foreign tax credit, and then incentives and facilities.

Uh, Enterprise, what does that mean? The new order of settlement effectively allows firms to use their tax credits in an order that prioritizes those that expire first, and shields multinationals from the 15% global minimum tax by treating tax credit refunds as income rather than tax breaks.

Background: In November, the Finance Ministry set new deadlines for requesting refunds for credit balances, setting a maximum deadline of five years to request a refund for credit balances or to offset tax liabilities with a credit balance.

INHERITANCE: Inheritance disputes in the UAE are set to move faster after the launch of specialized inheritance courts under amendments to the Civil Procedures Code, state news agency Wam reports. The reforms allow the President of the Federal Judicial Council or the head of a local judicial authority to establish dedicated inheritance courts without needing litigants’ consent.

The backdrop: Inheritance disputes were previously split across family and civil courts under the UAE Personal Status Law — a system that defaults to shariah-based rules but allows non-Muslims to apply civil or home-country laws through a registered will. The new framework replaces this multi-step process with a single specialized forum for inheritance cases.

What else is changing: The amendments beef up courts’ ability to rely on technical expertise, allowing judges to appoint local or international experts, question their findings, and request revisions. Appeals are also getting tighter — challengers must now file judgments, dates, juridical grounds, and specific requests upfront, or risk having appeals thrown out as inadmissible.

Plus, a wider safety net for appeals: The reforms expand access to the Court of Cassation to cover decisions issued by the Courts of Appeal, not just final judgments. The Attorney General has also been given the power to file appeals independently, including in cases where litigants miss appeal deadlines.

Not entirely new, just federal now: Dubai rolled out its own standalone inheritance court in 2022 to speed up estate disputes at the emirate level.

PSA-

⛅WEATHER- Rainy and unstable conditions are set to continue through today, with the mercury peaking at 30°C in Dubai and 28°C in Abu Dhabi, before cooling to a low of 22°C in the former and 21°C in the capital.

THE BIG STORY ABROAD-

Will Gulf sovereigns continue backing Paramount Skydance’s hostile bid for Warner Bros Discovery? The question hangs in the air this morning amid widespread reports that WBD plans to reject Paramount’s bid in favour of Netflix. The news sent Affinity partners, the key conduit for GCC backing of Paramount’s hostile bid, running to the exit.

Affinity, the private equity outfit led by Donald Trump’s son-in-law Jared Kushner, said overnight it would “no longer pursue the opportunity.” Kushner helped Paramount line up some USD 24 bn in funding for the bid from Saudi’s PIF, the Qatar Investment Authority, and Abu Dhabi’s L’imad Holding.

PLUS- It’s a rough morning for the auto industry: Volkswagen is shutting a plant in Germany, its home market, for the first time in its 88-year history. That’s bad news for any country (including Egypt) hoping that VW would choose it as the site for a new assembly plant — German unions would go bonkers if it invested significant sums abroad after shutting a plant at home. Ford, meanwhile, is taking a USD 19 bn writedown as it walks-back plans to go all-in on EVs.

Keep an eye on oil this morning: Crude futures dipped overnight after the Trump administration said it would impose a “total and complete blockade of all sanctioned oil tankers” going into and and out of Venezuela.

AND- The Trump administration is in damage-control mode after the White House chief of staff gave a stunningly candid interview to Vanity Fair in which she said she was “aghast” at the destruction of USAID, called Elon an “odd duck” and ketamine user, and talked smack about JD Vance’s love of conspiracy theories. Read: Susie Wiles, JD Vance, and the “Junkyard Dogs”: The White House Chief of Staff on Trump’s Second Term (Part 1 of 2)

***

You’re reading EnterpriseAM UAE, your essential daily roundup of business, economics, and must-read news about the UAE, delivered straight to your inbox. We’re out Monday through Friday by 7am UAE time.

EnterpriseAM UAE is available without charge thanks to the generous support of our friends at Mashreq and Hassan Allam Properties.

Were you forwarded this email? Tap or click here to get your own copy of EnterpriseAM UAE.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on UAE@enterpriseAM.com .

DID YOU KNOW that we also cover Egypt, Saudi Arabia, and the MENA logistics industry?

***

OIL WATCH-

Dubai crude’s forward curve briefly flipped into contango — meaning near-term barrels were cheaper than later loads — a classic sign of plentiful supply, Bloomberg reports. Futures slid across key hubs, pushing Brent toward the USD 50s.

If we’re at USD 50-something now… Consensus on where oil will land next year is difficult to find, but Fitch Ratings’ “neutral” sector outlook assumes Brent averages around USD 63 / bbl, while Emirates NBD (pdf) is more bearish, forecasting Brent at USD 60 / bbl. Fitch Ratings also expects the oil market to remain oversupplied next year, while ENBD sees demand growth slowing as global economic activity moderates.

REMEMBER- There’s a demand debate: The International Energy Agency sees demand growth slowing to some 860k bbl / d, while Opec is nearly twice as bullish, pegging growth at 1.4 mn bbl / d.

Tags: