New road infrastructure upgrades under AED 16 bn Dubai plan

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Adipec + UAE gov’t annual meetings kick off

Good morning, wonderful people, and welcome to the first full workweek of November. It looks like we’ll have a busy week ahead, with Adipec and the UAE’s annual government meetings both kicking off today, alongside a host of other forums and events.

We have a packed issue for you to start the week, with plenty of investment news and more news of national spending on infrastructure.

PLUS- We have a must-read interview with Mashreq CFO Norman Tambach, where he walks us through how our friends at Mashreq locked in the lowest coupon rate by a bank on an AT1 issuance in three years, his outlook on business climate in the year ahead, and a lot more.

🌫️ WEATHER- Expect more humidity and some fog this morning — and for the rest of the week, according to the National Center of Meteorology’s forecast (pdf). In Dubai, the mercury is expected to peak at 34°C, before cooling to 28°C overnight. Over in Abu Dhabi, temperatures will reach 29°C and hit a low of 28°C overnight.

WATCH THIS SPACE-

#1- Emirates plans to increase air traffic to China by 40% on the back of rising demand, Chief Commercial Officer of Dubai’s flag carrier Adnan Kazim told Bloomberg. The airline currently operates five daily flights to three cities in China, totaling 35 weekly flights — two daily flights each to Shanghai and Beijing, and one to Guangzhou. It recently inked an agreement to add 14 flights per week from both Dubai and Abu Dhabi, raising Emirates' total to 49 weekly flights. Additionally, Chinese carriers will benefit from an extra 28 flights per week.

Emirates is set to reintroduce its double-decker Airbus A380 jets on flights to China, reversing a previous decision to downgrade to smaller Boeing 777 aircraft, Kazim said.

Emirates is diverging from the trend set by major airlines like Lufthansa, British Airways, Virgin Atlantic, and SAS, which have reduced or suspended services to the country. “We’re working closely with authorities in China to further ramp up flights through either new places, or adding capacity in existing points,” Kazim said.

#2- Dubai, TikTok probe training skilled content creators: The Dubai Media Council met with TikTok’s CEO Shou Zi Chew to discuss potential collaboration focused at promoting knowledge exchange and enhancing content creation skills, according to a Dubai Media Office statement. Plans include launching training initiatives to support skilled content creators.

#3- The Abu Dhabi Investment Office (ADIO) opened a tender for developing car wash and service centers in Al Dhafrah and Al Ain, Wam reports. Eligible bidders must be Emirati-owned businesses that are registered with the Abu Dhabi Department of Economic Development. Firms can submit their bids between 1 November and 16 December.

#4- Russia has started importing butter from the UAE for the first time amid soaring prices in the country and slower deliveries from other countries due to Western sanctions, Interfax reports, citing a statement from agricultural watchdog Rosselkhoznadzor. The country imported 90 metric tons since 18 October.

#5- Mubadala’s asset management unit, Mubadala Capital, is reportedly mulling an investment in UK corporate debt research startup 9fin, says the Financial Times, citing unnamed sources. The transaction’s details have yet to be disclosed, with negotiations said to be in early stages. The firm is set to reach a valuation of around USD 500 mn, according to FT’s sources, with other investors such as global equity firm KKR interested in acquiring a stake.

About 9fin: Established in 2016, the startup breaks news on leveraged finance agreements and provides analysis on investment opportunities. The company raised USD 23 mn in a 2022 finance round led by US-based venture capital firm Spark Capital.

REMEMBER- Mubadala Capital raised USD 3.1 bn for its fourth private equity fund in October. The fund plans to focus on middle-market companies in various sectors, including financial and business services.

DATA POINTS-

#1- Abu Dhabi airports’ passenger traffic grew 27% y-o-y in 3Q 2024 to 7.7 mn passengers, according to a press release. Passenger flow increased 31.2% y-o-y to 21.7 mn in 9M 2024. Cargo quantities also rose 23% y-o-y in 9M 2024 to 572k tons amid heightened demand for both belly-hold capacity and freighter services.

#2- The UAE’s fintech market is expected to reach USD 3.5 bn by 2026 with an annual growth rate of 20%, Al Bayan reports, citing a study by Interregional for Strategic Analysis. Revenues from the global fintech market are expected to reach USD 1.5 tn by 2030, according to the study.

#3- Emirates NBD sees Dubai’s GDP growing 3.5% this year and 4% in 2025, backed by the government’s new budget and increased spending on infrastructure, according to Emirates NBD’s latest outlook. The new budget supports Emirates NBD’s projection “that growth will remain constructive over the coming years,” the bank said, adding that despite increased spending, the budget is expected to remain in surplus, reflecting economic expansion and diversified government revenue streams.

PSAs-

#1- Two new Salik toll gates at the Business Bay Crossing and Al Safa South on Sheikh Zayed Road in Dubai will be operational on 24 November, according to the Dubai Media Office. The toll gates are each expected to divert traffic away from congested roads by 15%.

#2- Takaful Emarat is set to launch its rights issue subscription on 14 November, closing on 26 November, according to the ins. firm’s subscription invitation (pdf). This rights issue will increase the firm’s share capital to AED 210.7 mn, up from AED 25.6 mn, by issuing 185 mn new shares at a nominal value of AED 1 apiece. Shareholders can subscribe at any participating FAB branch, through the FAB website or mobile banking app, or via the DFM website.

REMEMBER-The firm reduced its capital to AED 25.6 mn by canceling 124.4 mn shares last month as part of a capital restructuring plan aimed at offsetting the AED 132 mn accumulated loss the company had incurred as of 31 December 2023.

#3- The Education and Higher Education Ministries have scrapped the requirement for an Emirates Standardized Test (EmSAT) for university admissions, allowing each university to set its own criteria, according to a statement. Students' science subject grades will now also be prioritized over overall percentages for medical and engineering program admissions.

HAPPENING TODAY-

#1- Slovenian President Nataša Pirc Musar is on the second day of her official two-day visit to Abu Dhabi, Slovenian national news agency STA reports. The trip’s agenda includes meetings with President Sheikh Mohamed bin Zayed Al Nahyan to discuss bilateral relations, as well as visits to several Slovenian companies operating in Abu Dhabi. The president also visited the Sheikh Zayed Grand Mosque.

#2- Economy Minister Abdulla bin Touq Al Marri is representing the UAE on the final day of the Gateway to the Gulf 2024 forum in Bahrain, Al Khaleej reports. The event brings together 250 senior officials and investors from major global markets to delve into critical topics like sustainable economic growth, the impact of AI on markets, and workforce preparation.

#3- The 2024 UAE Government Annual Meetings kick off today in Abu Dhabi, chaired by Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum, according to the Dubai Media Office. The two-day session brings together over 500 dignitaries, including UAE rulers, crown princes, and government officials to discuss means for enhancing the country’s government performance and competitiveness.

This year’s agenda features new organizational priorities and frameworks, with national retreats focusing on identity, family, and AI, and panel sessions to review national priorities and strategies for economy and investment, AI, education, sports, family, and community empowerment. Dedicated sessions for young government leaders are also on the roster, alongside exclusive local government meetings for Ajman, Umm Al Quwain, and Ras Al Khaimah.

On today’s agenda: Day zero will feature cabinet meetings, as well as five federal councils and national and local committees.

#4- Adipec will kick off today and run through to Thursday at Adnec Center in Abu Dhabi. The event will bring together over 40 ministers and over 200 C-suite executives and technology leaders from the Middle East, Asia, Africa, Europe, and the Americas, focusing on innovation and partnerships to advance the energy transition. The event will feature three new conferences that include perspectives from finance, technology, youth, and the Global South.

Ahead of the event, over 80 leaders from the energy, technology, climate, and investment sectors gathered for the ENACT Majlis meeting yesterday at Adnec, with, Wam reports. The invite-only event convened by Industry Minister Sultan bin Ahmed Al Jaber was held under Chatham House rules with the theme “AI and Energy, Powering a Sustainable Future” — focusing on how advancements in AI and technology can be used to combat climate challenges.

HAPPENING THIS WEEK-

#1-Gulfood Manufacturing will take place between 5-7 November at the Dubai World Trade Center. The event will showcase trends and solutions in global food manufacturing, with more than 2.5k companies set to attend.

#2- GulfHost will take place on 5-7 November at the Dubai World Trade Center. The event will feature over 350 exhibitors showcasing innovations in hospitality and foodservice equipment, along with networking opportunities for more than 25k industry professionals.

#3- Dubai will host the World Finance Forum 2024 on 6 November at Sofitel Dubai The Palm. The event will welcome CFOs and finance directors from leading companies to discuss emerging trends, growth prospects, and potential challenges in the financial landscape.

#4- The UAE BioTech Symposium will take place on 6-8 November in Masdar City. The event will discuss the latest developments in biotechnology, with participants including researchers, entrepreneurs, government entities, and strategic investors.

MARKET WATCH-

Opec+ confirms output hike delay: Opec+ pushed back its planned 180k bpd output hike for December for another month amid persistent concerns of soft oil demand from China and a glut in supply, according to a statement. The group still intends to move forward with its plan to revive 2.2 mn bpd of idle supply over the year, it said.

REMEMBER- Opec+ initially planned to start phasing out production cuts in October, but later pushed the plans back to December as oil prices fell.

THE BIG STORY ABROAD-

On the eve of voting day, the international press has its attention fixed firmly on the US presidential election as both Kamala Harris and Donald Trump deliver their closing messages.

The race remains very much neck-and-neck this morning, with the New York Times / Siena College polls showing that Harris and Trump’s standings in seven key states are “within the margin of sampling error,” which means that a clear lead remains uncertain. However, Harris currently has a narrow lead in Nevada, North Carolina, and Wisconsin, while Trump is closing the gap in Pennsylvania and is in the lead in Arizona.

Who’s going to tip the scales? For Harris, it’s likely to be young women, while for Trump it’s likely to be “disaffected young men.” The elections are leading the front pages of the Financial Times, New York Times, Wall Street Journal, Bloomberg, and CNBC, among others.

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Dubai to get new trackless tram, more road upgrades as part of AED 16 bn urban mobility and infrastructure plan

Dubai's Roads and Transport Authority (RTA) unveiled a AED 16 bn plan for 2024-2027, targeting smoother commutes and for over 6 mn residents with 22 new projects, according to a statement. The goal? To enhance the emirate’s road network, integrating AI to boost traffic flow and reduce travel times.

The strategy: The Main Roads Development Plan will focus on large-scale expansions, adding new roads, bridges, and tunnels to boost connectivity and ease travel throughout the city. Key projects include:

An upgrade to Latifa bint Hamdan Street, set to begin next year, to accommodate an additional 16k vehicles per hour and cut travel times by 15-20%;
An expansion of Meydan Road, adding capacity for 22k vehicles per hour in both directions, to reduce travel time between Umm Suqeim Street to the extension of Meydan Street to four minutes;
Reconfiguring the Trade Center Roundabout into a surface-level intersection with five new bridges, reducing wait times from 12 minutes to 90 seconds;
Increasing road capacity on Umm Suqeim and Al Qudra Street to 12.6k vehicles per hour, up from 8.4k vehicles currently, cutting travel time from 46 to 11 minutes;
Expanding capacity on Al Fay Street to 64.4k vehicles per hour, and on Al Safa Street to 9.4k vehicles per hour, reducing travel time to just two minutes.

The RTA has its sights on public transit too, with six new dedicated bus and taxi lanes coming by 2026, projected to cut bus travel time by 41%. A new electric trackless tram system is also in the works at eight locations, set to be capable of carrying 300 passengers up to 100 km on a single charge at speeds reaching 70 km/h.

The authority also plans to expand cycling tracks, aiming to better connect coastal areas such as Jumeirah and Marina with routes in Al Qudra, Saih Al Salam, and Nad Al Sheba.

The RTA is also launching new platforms, including…

The commercial transport platform Logisty will offer business clients digital fleet management services, including on-demand booking and tracking, vehicle and driver verification, and a reliable registration database;
The Green Road safety system will issue real-time traffic breach alerts for nearly 1.4k public transport buses, boosting safety by 54% and reducing traffic infractions by 47%.

US investment manager GQG Partners invests USD 500 mn in Alpha Dhabi

US investment manager GQG Partners has invested USD 500 mn in International Holding Company (IHC) investment platform Alpha Dhabi, according to a press release (pdf). The asset manager said the firm is “very well positioned over the long run,” with a market cap of AED 111.2 bn and a “longer-term headroom” in the region, founder and chief investment officer of GQG Partners, Rajiv Jain, said.

The first of many? GQG received a license last year to set up GQG Partners in the Abu Dhabi Global Market (ADGM), establishing its first-ever office outside of the US. The investor is keen on Abu Dhabi and its “high-quality assets,” anticipating the emirate’s market to grow in value, Jain added.

GQG is doubling down on its Mena investments, having piled up USD 2.8 bn stakes in companies in the Middle East by January, lured by “business friendly” government policies, plans to move away from oil, and “massive privatization hopes,” Jain told the Financial Times early 2024.

Mubadala closes Spanish pipes manufacturer acquisition for USD 200 mn

Mubadala is now a partner in Tubacex’s OCTG unit: Mubadala closed its USD 200 mn acquisition of a 49% stake in Spain-based pipe manufacturer Tubacex's tubular solutions business for oil and gas exploration and production (OCTG), according to a press release.

Background: The sovereign wealth fund signed the acquisition agreement with Tubacex in May, with the transaction initially valued at USD 150 mn. The acquisition will see Mubadala investing in Tubacex's new OCTG plant in Abu Dhabi as part of the agreement, slated to be operational by the year's end. The new plant is set to bolster Tubacex’s position as the “primary OCTG supplier” in the region.

A boon for our localization ambitions: The transaction sees Mubadala joining the firm as a strategic partner, with plans to secure supply of [corrosion resistant alloys (CRA)] OCTG solutions for gas exploration as part of plans to boost local manufacturing.

The investment will fuel Tubacex’s expansion, driving its low carbon business growth and enabling it to pursue mergers and acquisitions. In turn, the anticipated expansion will boost Tubacex’s financial position, and accelerate its Next Transition plan (pdf) for 2027 to post an EBITDA of EUR 200 mn and generate EUR 1.2-1.4 bn in revenues.

Tubacex is no stranger to the UAE: The Spanish company received its largest-ever order in June 2022 from the Abu Dhabi National Oil Company (Adnoc), which ordered some 30k tonnes of CRA OCTG solutions for gas extraction to be supplied over a decade.

AI startup Insider plans AED 462 mn investments in the UAE following USD 500 mn series E round

Insider to invest AED 462 mn in UAE, Middle East expansion: Global marketing technology platform Insider plans to invest AED 462 mn to drive its expansion across the UAE and Middle East, aiming to create 70 new jobs in the region by 2027, according to a statement. The investment is part of a broader growth strategy after the company secured a USD 500 mn Series E funding round led by General Atlantic.

Where else is the money going? The company plans to use the funds to broaden its AI capabilities, pursue M&As, and expand research, development, and global sales initiatives across 28 countries, according to the statement.

About Insider: Founded in Turkey in 2012 by CEO Hande Çilingir, the company uses AI-powered solutions to personalize, segment and predict customer behavior, with over 1.5k customers including Toyota, Samsung, Walt Disney and L’Oreal.The company’s client base in the region includes Emirates NBD and Air Arabia. UAE-based venture capital firm Wamda Capital had also backed the startup with a USD 2.2 mn investment in 2016. Insider’s last funding round in 2023 — led by Qatar Investment Authority — placed its valuation at c. USD 2 bn, Bloomberg reports.

Still pouring in…

ALPHA DHABI-

Alpha Dhabi saw its net income increase 236.6% y-o-y to AED 4.4 bn in 3Q 2024, according to the company's financials (pdf). Revenues also climbed 45.4% y-o-y to AED 14.9 bn. The company attributed the growth in the third quarter to contributions from strategic acquisitions and investments made since 2022 and an increase in operations according to an earnings release (pdf).

On a 9M basis, the conglomerate’s net income fell 4.9% y-o-y to AED 11.1 bn, owing to an increase in operations. Meanwhile revenues increased by 36.5% y-o-y to AED 44.2 bn.

TECOM GROUP-

Business district developer Tecom Group saw its net income rise 20% y-o-y to a record AED 339.6 mn in 3Q 2024 on the back of strong demand from new and existing customers, according to its financials (pdf). Growth was supported by revenue growth and cost optimization measures, the company said in an earnings release (pdf). The company booked AED 610.9 mn in revenues in 3Q, up 12.3% y-o-y.

On a nine-months basis, Tecom’s bottom line climbed 22.8% y-o-y to AED 942.7 mn in 9M 2024. The developer’s revenues rose 10.4% y-o-y, reaching AED 1.8 bn thanks to customer growth, increased rental rates, and sustained occupancy levels — which reached 94% at the end of September.

Looking ahead, Tecom will “focus on project delivery across its business districts,” with the second phases of Innovation Hub and the storage and logistics spaces at Dubai Science Park scheduled to be delivered in 1Q 2025.

EMSTEEL-

Materials manufacturer Emsteel reported a net loss of AED 82.9 mn in 3Q 2024, down from a net income of AED 107.1 mn during the same period last year, according to its financials (pdf). The company’s revenues declined by 6.4% y-o-y to AED 1.9 bn in this quarter. On a 9M basis, net income fell 76.3% y-o-y to AED 91.6 mn, while revenues dropped by 9.3% y-o-y, hitting AED 5.9 bn.

This nine-month performance was attributed to fluctuations in global steel prices, elevated competition, and changing demand patterns influenced by economic uncertainties in key markets, according to its earnings report (pdf).

Behind the scenes of Mashreq’s AT1 issuance + what’s in store for the rest of the year with CFO Norman Tambach

It’s been a busy year for our friends at Mashreq. The private lender rolled out Mashreq Neo — its digital banking app — in Egypt; is preparing to launch it, as well as Islamic banking services, in Pakistan, was involved in the region’s largest sustainability-linked financing transaction to date ; launched Neo Corp in Kuwait, — and grew its net income 14% y-o-y in 1H 2024 despite the introduction of the corporate tax and a challenging regional and global macro environment.

Mashreq also issued USD 500 mn in additional tier 1 (AT1) bonds — its second issuance of the kind — that carried the lowest coupon rate for AT1 bonds for a UAE bank in three years. Investor appetite was heavy: The issuance was 4.4x oversubscribed.

For those less familiar: AT1 bonds are unsecured capital instruments that banks issue to raise their core equity base.

Leading on the capital raise and helping steer all of that growth is CFO Norman Tambach (LinkedIn), who took on the role a little over a year ago. Tambach came to Mashreq from ING Germany, where he was named CFO and executive board member in 2019, after joining in 2013, following nearly two decades with KPMG in Europe.

He joined Mashreq at a time when its plans for growth and digitization were coming together more than ever — and just like every Mashreq executive we’ve sat down with, Norman is incredibly aligned with Mashreq’s vision for growth and its love for technology, AI, and staying ahead of the curve.

So what went into one securing one of the best coupon rates for a Tier 1 issuance in years? It took a good story, strong fundamentals, continuity when it comes to raising capital, and identifying the right cohort investors — folks with appetite for the story and risk profile of an entrepreneurial UAE bank.

We spoke to Norman about all this and more as we enter a new interest rate environment, with the US Federal Reserve having started easing and table and geopolitical tensions on the rise. Edited excerpts from our conversation:

ENTERPRISE: Walk us through the AT1 issuance — how did you lock-in that coupon rate?

NORMAN: The story of Mashreq over the last two years has been very positive, so we have a great story to tell. I headed to London alongside Hammad, our head of treasury and capital markets, where we had two days of investor presentations and visits. The key to those types of meetings is that you have to sell a convincing story.

The investors will want to know, “Is it just good marketing? Or does it really have a strong foundation?” It’s also about building a personal rapport, so you have to try to make a connection. Management tell stories, and the investor won’t have confidence in the story if they don’t have confidence in the management team in front of them.

With something like a Tier 1 issuance, the key question is, “Why do you want the money?” If it’s just to go out for a dividend or something else, that’s not good enough — they want a good story there. They want to know that you have a sound strategy, you’re committed to growth and that you are able and planning to call on the first contractual call date.

And we have a story — a good one. We are experienced in the market. We have already previously issued some Tier 1 and Tier 2, and we will probably replace them and call them on their call dates, so being in the international capital and debt markets is a continuous process for Mashreq.

We also had to make sure we were going to the right investors. We had a lot of interest from investors because they saw, and were able to understand and assess, a UAE or GCC bank’s risk profile, especially considering the bank’s growth story. We mapped out professional investors within the GCC and internationally who have an appetite for investing in the region and can understand the underlying risks and rewards. The UAE government’s long-term vision for the banking sector, combined with a regulator such as the Central Bank of the UAE, and the thriving regional financial services sector, also helps support a healthy environment for issuances.

The regulator is very sensitive to ensuring alignment of interests between banks and investors. Both the government and the regulator understand the dynamics of the international debt and capital markets well, and the last thing they would want is to make it difficult for financial institutions to raise Tier 1 or Tier 2 debt and/or capital in the future.

You have to understand the dynamic of the region to do a real risk assessment of this instrument from an investor perspective. If you can do that right, and you assess the dynamics of the regional economy, and Mashreq’s financial strength, then it’s clear that the probability that we will default on the issuance — or that we would not call after five years — is, in my opinion, very, very low.

E: Why was it the right time to go to market with this issuance both for Mashreq and from a pricing perspective?

NT: You want to have an optimal capital structure as a bank, which contains common capital, Tier 1 and Tier 2, and you want to have the right amounts of each. You also have to know that when you're in dire straits as a bank or if the economy is not in the best place, that is not the time to do a capital or Tier 1 issuance. You do it when things are looking rosy, and the need for capital is not even that high because your capital position is strong, but fresh capital will help finance future business growth.

When investors asked why now, I explained that we were, relative to our peers, a little bit low in terms of our Tier 1 mix of total capital. With this new issuance, our capital components are again more at par with our peers in the region.

We want to go regularly to the markets, and we have to continuously replace our capital — that’s a strategy. We have a capital target that is well above the regulatory requirements; we foresee sound profits going forward; and our pay-out ratio has been approximately 50% over the last couple of years, so for that growth to continue, we perform some capital planning which ensures that we have ample capital for the next couple of years.

Obviously, it was also a good time for investors — we priced the issuance at a little above 7%, and that’s a very attractive coupon for the risks they take, especially now that the market expects two more rate cuts of 25 bps each before the end of this year, and another four of the same size next year, so that’s maybe 200 bps down when you factor in the half-point cut in September.

In the region where we are now, we have very good economic growth rates. Here in the UAE, you’ll see a growth rate of 4% or maybe even 5% in the next couple of years, and it has a lot to do both with the country itself and where it’s situated in the world. To the East of us, we have India, and a lot of economists see us as being in the “decade of India.” To the West, we have Saudi Arabia, who are investing a lot inside the Kingdom, as opposed to just outside of the region. We're in between those two neighbors, so the odds are good that you will see very healthy growth rates in this region for the next few years, and you cannot say that for a lot of parts of the world.

E: I’d like to switch gears now to your expectations for the business climate through year’s end, given the wider context of interest rate cuts.

NT: Rate cuts have an impact on most banks. The impact will likely be limited this year since they’re confined to 4Q 2024, but next year and in 2026, we will see some impact on interest income. But I do think banks will still be quite profitable, but maybe not as extreme as it has been with respect to net interest income.

The two things we plan to do to offset this impact is to focus on profitable growth of our customer deposit and lending business — by growing your volume, you can compensate (at least partly) the loss of interest income following net interest margin compression — and focus on further growing our non-interest income to ensure we reduce the overall impact of market rates volatility on our net profit.

Two other important factors impacting the profitability of the bank are risk costs and operational costs. Currently, risk costs for regional client lending are relatively low for banks. We're still in a very benign economic environment, and at the moment we do not see clear indications that this will change soon.

The second important thing is keeping operational costs under control, while allowing for investments. Mashreq is a bank with a tradition of cost-consciousness; we’ve moved around 50% of our staff into lower-wage countries, and we continue to re-balance among countries where we would like to grow our staff to keep future operational costs under control.

The third thing in which we’re investing is further digitalization and making use of generative AI in all areas of the bank, including finance. We are investing a lot to make sure our internal processes are fully digitalized and scalable. Ideally, they should seamlessly work with our already largely digital client interfaces, like the Neo app.

We’re also currently looking into finalizing a proof of concept this year to automate the full process of management reporting. This includes crafting a readable report and

using genAI to analyze developments and formulate commentary. We already know this is technically possible, and if the proof of concept is successful, we want to scale it up across all our periodic management reporting. Our finance professionals would just do final checks, which would save us a lot of time that we can use to bring even more added value to our internal stakeholders.

Ras Al Khaimah, UK to boost industrial ties + cross-border trade

TRADE-

Ras Al Khaimah partners with the UK gov’t to mull commercial, industrial collaboration: Ras Al Khaimah signed a partnership agreement with the UK Government to probe potential commercial and industrial collaboration and facilitate cross-border trade, according to Wam. The agreement also targets several sectors such as food security, education, and culture. Both parties will also consider launching a business incubator in Ras Al Khaimah to support UK companies looking to expand into the UAE and the Middle East.

INDUSTRY-

GCC meeting probes industrial integration, Gulf products qualification: An Emirati delegation, led by Industry and Advanced Tech Minister Sultan Al Jaber, attended the GCC Industrial Cooperation Committee meeting in Qatar to discuss industrial integration among member nations, Wam reports. The meeting also discussed implementing a unified strategy for industrial development and qualification criteria for Gulf products.

LOGISTICS-

UAE-based logistics provider Indu Kishore Logistics has begun construction on a 23k sqm spare parts facility in Dubai South’s Logistics District, with completion set for 3Q 2025, according to a statement. The facility will have the capacity to store up to 75k pallets.

WASTE MANAGEMENT-

Abu Dhabi kicks off a research initiative to reduce domestic waste: The Environment Agency of Abu Dhabi (EAD) embarked on a research project with Sorbonne University Abu Dhabi to implement new strategies for reducing domestic waste in the emirate, EAD said in a statement. The project will see Sorbonne University’s researchers analyze international case studies and compare them with data collected from the emirate to identify current waste management practices and propose guidelines accordingly.

INFRASTRUCTURE-

The UAE became the first Arab nation to join the International Electrotechnical Commission (IEC), after being elected for the 2025-2027 term, Wam reports. The Switzerland-based IEC, which has 170 member nations, publishes international standards for electrical and electronic products.

ICYMI- The UAE joined the International Organization for Standardization (ISO) board in September, securing a 2025-2027 term.

OIL AND GAS-

Fujairah oil agreement with Egypt activated: Fujairah has sent its first oil tanker to Egypt under an MoU signed with the Egyptian government earlier this year, according to a statement on Friday. Signed in August, the MoU aims to transform Egypt’s Al Hamra port on the Mediterranean coast into a USD 3 bn petroleum logistics zone. Construction of the zone is expected to begin in 1H 2025, with an estimated completion time of three years.

REAL ESTATE-

Al Zarooni expands North American footprint: Dubai-based real estate company Al Zaro oni Real Estate launched a series of new projects in the United States and Canada, Khaleej Times reports. The developments include…

Tower 12, a 16-story hotel and residential property in downtown Seattle;
Falcon Ridge, featuring luxury housing and three golf courses within Kansas City;
Cayet Lands, a sustainable 100-acre master-planned community in Vancouver Island, Comox Valley;
A high-rise residential project in Toronto’s Richmond Hill with 610 modern units.

More to come: The company plans to unveil a new residential project in the UAE, with details expected “soon.”

Expect rate cuts around the world following this week’s US presidential elections

Analysts anticipate a flurry of rate cuts following this week’s US elections: The US Federal Reserve and its peers around the world are expected to cut interest rates following Tuesday’s US presidential elections, Bloomberg reports. Analysts expect central banks responsible for over a third of the global economy to make their decisions partly based on the results of the election — all with their own guesses over how each result could shape American economic policy over the next four years.

Remember: The expected cuts come just two months after the Fed’s 50 bps rate cut in September — its first in over four years.

While some were skeptical of an incoming loosening cycle, employment data begged to differ: Weak US employment data for October released on Friday showed hiring increase at its slowest pace since 2020, pushing up analysts’ expectations of multiple rate cuts this year even further, according to Bloomberg. This comes after top Wall Street executives — including the chief executives of Goldman Sachs, Morgan Stanley, and Standard Chartered, among others — suggested last week that the US Federal Reserve is unlikely to enact more than one more interest rate cut by year-end.

The question is, by how much? Economists see the Fed opting for a 25 bps cut on Thursday, with another such cut penciled in for December, Bloomberg writes, with the UK, Sweden, the Czech Republic, and a number of other countries anticipated to cut rates following election day. However, central banks could hold off on their decisions until there’s a settled result, which — if 2020’s drawn-out process is any indication — could extend several days beyond election day.

Economists see the result as having big implications for global trade policy: “With polls showing the campaign in a dead heat, the stakes couldn’t be higher. The winner will be able to reshape trade policy — Trump, especially, is likely to make use of this power if he wins,” economists from research service Bloomberg Economics said.

MARKETS THIS MORNING-

Most Asian markets are in the green this morning — South Korea’s Kospi is leading the gains, up over 1.5% in early trading. The Shanghai is up 0.4% and the Hang Seng is up 0.2%.

ADX	9,349	+0.2% (YTD: -2.4%)
DFM	4,621	+0.7% (YTD: +13.8%)
Nasdaq Dubai UAE20	3,848	+1.1% (YTD: +0.2%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.8% o/n	4.4% 1 yr
TASI	12,048	+0.2% (YTD: +0.7%)
EGX30	30,833	+0.6% (YTD: +23.9%)
S&P 500	5,729	+0.4% (YTD: +20.1%)
FTSE 100	8,177	+0.8% (YTD: +5.7%)
Euro Stoxx 50	4,878	+1.0% (YTD: +7.9%)
Brent crude	USD 73.10	+0.4%
Natural gas (Nymex)	USD 2.66	-1.6%
Gold	USD 2,749	0%
BTC	USD 68,743	-1.0% (YTD: +62.6%)

THE CLOSING BELL-

The ADX rose 0.2% last Friday on turnover of AED 2.8 bn. The index is down 2.4% YTD.

In the green: Abu Dhabi National Building Materials Co. (+14.8%), Aram Group (+8.7%) and Abu Dhabi Commercial Bank (+2.9%).

In the red: NMDC Group (-7.6%), Gulf Pharmaceutical Industries (-3.8%) and E7 Group PJSC Warrants (-2.8%).

Over on the DFM, the index rose 0.7% on turnover of AED 275.1 mn. Meanwhile, Nasdaq Dubai closed up 1.1%.

CORPORATE ACTIONS-

ADNH Catering appointed BHM Capital as liquidity provider for its listed shares on ADX for a duration of one year, starting 1 November, according to a bourse disclosure (pdf).

CALENDAR

NOVEMBER

3-10 November (Sunday-Sunday): Dubai Premier Padel P1, Dubai Dutyfree Tennis Stadium, Dubai.

4-6 November (Monday-Wednesday): Legislative week, Mohammed bin Rashid Al Maktoum Library, Dubai.

4-7 November (Monday-Thursday): Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC), Abu Dhabi.

4-7 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi.

4-7 November (Monday-Thursday): ADIPEC Decarbonisation Accelerator, Abu Dhabi.

5-7 November (Tuesday-Thursday): 2024 EMEA Stakeholder Conference, Dubai.

5-7 November (Tuesday-Thursday): 10th edition of Gulfood Manufacturing, Dubai World Trade Center.

5-7 November (Tuesday-Thursday): GulfHost, Dubai World Trade Center.

6 November (Friday): World Finance Forum, Dubai.

6-8 November (Friday-Sunday): UAE BioTech Symposium, Masdar City, Abu Dhabi.

6-10 November (Wednesday-Sunday): Al Yasat Festival, Al Dhafra, Abu Dhabi.

6-17 November (Friday- Sunday) Sharjah International Book Fair, Expo Center Sharjah, Sharjah.

11 November (Monday): Dubai Diamond Conference, Jafza One Convention Centre, Dubai.

11-12 November (Monday-Tuesday): META Cinema Forum, Dubai.

11-13 November (Monday-Wednesday): IAOM MEA Conference & Expo, Dubai World Trade Center.

12-14 November (Tuesday-Thursday): The Global Educational Supplies and Solutions, Dubai World Trade Center.

13 November (Wednesday): Registration deadline for Dubai Chamber of Digital Economy’s App Olympics.

13-14 November (Wednesday-Thursday): Lease Conference Dubai 2024, Jumeirah Creekside Hotel, Dubai.

15 November (Friday): Tax amendments that exempt crypto and investments through fund managers from VAT to take effect.

16-17 November (Saturday-Sunday): Gladiator Summit, Dubai World Trade Center, Dubai.

18-19 November (Monday-Tuesday): Dubai Precious Metals Conference, JAFZA One Convention Center, Dubai

18-20 November (Monday-Wednesday): Fastmarkets Middle East Iron & Steel 2024, Dubai.

18-20 November (Monday-Wednesday): Middle East Organic and Natural Products Expo, Dubai World Trade Center.

18-20 November (Monday-Wednesday): The International Conference of ShenZhen Association, Dubai World Trade Center.

19-20 November (Tuesday-Wednesday): Dubai Future Forum, Museum of the Future, Dubai.

20-22 November (Wednesday-Friday): Xpanse Abu Dhabi, Adnec Centre, Abu Dhabi

22-23 November (Friday-Saturday): Global Meet on Electronics & Electrical Engineering (GMEEE), Dubai.

22-24 November (Friday-Sunday): Michelin Guide Food Festival, Emirates Palace Mandarin Oriental, Abu Dhabi.

23 November (Saturday): Wireless Festival Middle East, Etihad Park, Abu Dhabi.

23-24 November (Saturday-Sunday): Emirates Dubai Sail Grand Prix, SailGP Race Stadium.

26-27 November (Tuesday-Wednesday) Global Food Security Summit, Adnec Centre Abu Dhabi.

26-27 November (Tuesday-Wednesday): Global Women’s Forum Dubai, Madinat Jumeirah, Dubai

26-27 November (Tuesday-Wednesday): Open Source AI Summit, The St. Regis Saadiyat Island Resort, Abu Dhabi.

26-28 November (Tuesday-Thursday): Liveable Cities X, Dubai World Trade Center.

26-28 November (Tuesday-Thursday): Future FM, Dubai World Trade Center.

26-28 November (Tuesday-Thursday): Geo World, Dubai World Trade Center.

26-28 November (Tuesday-Thursday) Global Media Congress 2024, Abu Dhabi National Exhibition Centre (ADNEC).

26-29 November (Tuesday-Friday): Big 5 Global, Dubai World Trade Centre.

27 November: Acceptance period for Adnoc’s Covestro takeover bid ends.

27-28 November (Wednesday-Thursday): RAK Energy Summit, Al Hamra International Exhibition and Conference Centre, Ras Al Khaimah.

28 November-1 December (Thursday-Sunday): Spartan World Championship, Al Wathba Desert, Abu Dhabi.

30 November (Saturday): Football Legends Cup, Al Maktoum Stadium Al Nasr Sports Club, Dubai.

Signposted to happen ahead of ADIPEC:

Changemakers Majlis, Abu Dhabi.

DECEMBER

2-3 December (Monday-Tuesday): National Day, public holiday.

4-5 December (Wednesday-Thursday): Sport Impact Summit, The Palm, Dubai.

4-6 December (Wednesday-Friday): Abu Dhabi Business Week, Adnec Center, Abu Dhabi.

5-8 December (Thursday-Sunday): Formula 1 Etihad Airways Abu Dhabi Grand Prix, Yas Marina Circuit.

8-12 December (Sunday-Thursday): International Desalination and Reuse Association World Congress, Adnec Centre Abu Dhabi.

13 December - 4 January (Friday-Saturday): Liwa International Festival, Al Dhafra, Abu Dhabi.

9-10 December (Monday-Tuesday): The Bitcoin Mena Conference, Adnec Centre Abu Dhabi.

9-12 December (Monday-ThursdayTuesday): Abu Dhabi Finance Week, Abu Dhabi.

9-12 December (Monday-Thursday): World Conference on Desalination and Water Re-use 2024, Adnec Centre, Abu Dhabi.

9-12 December (Monday-Thursday): IEEE International Conference on Data Mining 2024, Adnec Centre, Abu Dhabi.

10-11 December (Tuesday-Wednesday): Global Trade and Infrastructure at Logimotion, Dubai World Trade Center.

10-12 December (Tuesday-Thursday): Middle East Investor Relations Association (MEIRA Conference), Conrad Abu Dhabi Etihad Towers Hotel, Abu Dhabi.

10-12 December (Tuesday-Thursday): The Middle East and North Africa Business Aviation Association Show, Al Maktoum International Airport, Dubai.

11-13 December (Wednesday-Friday): European-Arab Medical Congress, Abu Dhabi.

14-21 December (Saturday-Saturday): World Schools Festival, Abu Dhabi

16-20 December (Monday-Friday): AIMS Conference 2024, Adnec Centre, Abu Dhabi.

6 December-12 January: Dubai Shopping Festival.

Signposted to happen sometime in December:

UAE-China Summit, Abu Dhabi.
Abu Dhabi Forum for Peace, Abu Dhabi.

JANUARY 2025

1 January (Wednesday): ADGM to slash licensing fees for retail and non-financial firms, and hike fees for finance firms.

9-13 January (Thursday-Monday): International Renewable Energy Agency Youth Forum, Abu Dhabi.

11-13 January (Saturday-Monday): International Renewable Energy Agency Assembly, Abu Dhabi.

14-16 January (Tuesday-Thursday): World Energy Summit, Abu Dhabi.

14-16 January (Tuesday- Thursday): The Light + Intelligent Building Middle East exhibition, Dubai.

19-24 January (Sunday-Friday): Coling 2025, Abu Dhabi.

20-22 January (Saturday-Monday): FESPA Middle East, Dubai World Trade Centre, Dubai.

FEBRUARY 2025

1-8 February (Saturday-Saturday): The Mubadala Abu Dhabi Open, Zayed Sports City's International Tennis Centre.

2-3 February (Sunday-Monday): L’Etape Dubai cycling race, Dubai.

3-6 February (Monday-Thursday): Medlab Middle East, Dubai World Trade Center.

16 February-1 March: Dubai Dutyfree Tennis Championships, Dubai Dutyfree Tennis Stadium in Al Garhoud.

24-25 February (Monday-Tuesday): World Passenger Experience Forum, Dubai.

24-26 February (Monday-Wednesday): Connecting Hydrogen MENA, Dubai.

Signposted to happen sometime in 1Q 2025:

The first eight fronds of the Palm Jebel Ali will be site-ready, allowing for the commencement of villa infrastructure and civil works.

APRIL 2025

6-11 April (Sunday-Friday): Geo-Spatial Week 2025, Dubai.

7-10 April 2025 (Monday-Thursday) : EFG Hermes One on One conference, Dubai.

7-9 April (Monday-Wednesday): AIM Investment Summit, Abu Dhabi National Exhibition Center

14-16 April (Monday-Wednesday): Dubai Woodshow’s 21st Edition, Dubai World Trade Center

14-16 April (Monday-Wednesday): IPS congress, Dubai World Trade Center.

16-18 April (Wednesday-Friday): World Future Energy Summit,Abu Dhabi National Exhibition, Abu Dhabi.

28 April-1 May (Monday-Thursday): The Arabian Travel Market 2025, Dubai World Trade Center

Signposted to happen sometime in April:

Abu Dhabi Autonomous Racing League, Yas Marina Circuit in Abu Dhabi

MAY 2025

6-7 May (Tuesday-Wednesday): Global Ports Forum, Dubai.

19-22 May (Monday-Thursday) Make it in the Emirates Forum 2025, Adnec, Abu Dhabi.

26-28 May (Monday-Wednesday): Arab Media Summit, World Trade Center, Dubai.

SEPTEMBER 2025

8-10 September (Monday-Wednesday): DigiHealth exhibition, World Trade Center, Dubai.

24-25 September (Wednesday-Thursday): Mohammed Bin Rashid Leadership Forum, Mohammed Bin Rashid Center for Leadership Development, Dubai.

OCTOBER 2025

27-29 October (Monday-Wednesday): Asia Pacific Cities Summit, Dubai Exhibition Center.

Signposted to happen sometime in 2025:

The Middle East Electric Vehicle Show, Expo Center Sharjah.
e& will complete Adnoc’s private 5G network.
Executive Committee Meeting (EXCOM 2025) conference of the World Smart Sustainable Cities Organisation (WeGO)
The International Civil Aviation Organization’s Global Implementation Support Symposium, Abu Dhabi.

Signposted to happen sometime in the fall of 2025:

2025 Games of the Future, Dubai.

Signposted to happen sometime in 2026:

The UAE to host the Arab Competition Forum
Dubai to host the Arab Actuarial Conference
United Nations Water Conference 2026, UAE

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