Good morning, wonderful people. As expected, it’s all Abu Dhabi and finance today as the Abu Dhabi Finance Week dominates headlines and a slew of companies make plans to move to the emirate.

The second day of ADFW saw some of the biggest hedge fund and asset manager bosses in the world sing the praises of Abu Dhabi. British hedge fund manager Paul Marshall — co-founder of Marshall Wace — said the emirate is “nailing it” when it comes to taxes and incentives to attract the world’s financiers.

“Income tax: Britain 45%, Abu Dhabi zero; capital gains tax: Abu Dhabi zero, Britain’s just gone to 24,” Marshall said. The USD 69 bn hedge fund is among many who recently moved to Abu Dhabi.

Ray Dalio, who founded the world’s biggest hedge fund, Bridgewater Associates, called Abu Dhabi a “renaissance state” — saying it is a neutral haven at a time where geopolitical tensions fester and rock some of the biggest economies in the world. “Neutral countries do the best [at times of war],” not the winners or losers of war, who have to grapple with huge losses and damages,” Dalio said during his keynote speech. “Smart, productive people establish offices and residences in those [neutral states,]” where there is no risk of international war and where the business environment is friendly, he added.

Excitement ran rampant on topics like crypto, AI — with American b’naire and CEO of private equity firm Vista Equity Partners also crediting the UAE’s leadership for its investments in AI — and the energy transition, with plenty others pointing out the ways in which the UAE is becoming a leader in those sectors.

Investors and asset managers sitting on over USD 42 tn in assets all — in one way or another — touched on the ways in which Abu Dhabi has earned its moniker, the “capital of capital,” and the bright outlook for the emirate in years to come. But the proof is in the pudding: At least five key investors announced plans to expand in the emirate yesterday alone, joining swathes of firms — led by hedge funds and asset managers — in recent months.

It’s an exciting week to be in the capital of capital — so we’ll continue to bring you highlights from the forums taking place today and tomorrow. On the agenda today: Banks and fintechs gather to discuss the future of finance and lending in the digital world. Plus: Blockchain 2024 will run in parallel, with some of the biggest names in crypto and digital assets taking the stage to discuss crypto, blockchain, and web3.

WEATHER- You can enjoy another crisp, sunny day in Abu Dhabi, with a high of 25°C, and an overnight low of 19°C. In Dubai, expect some clouds with a high of 29°C and an overnight low of 20°C.

WATCH THIS SPACE-

#1- The Abu Dhabi Investment Authority (Adia) wants to see more innovation in the private credit market, particularly through exchange-traded funds (ETFs) Adia’s executive director, Dhaen Al Hameli, said during a panel at Abu Dhabi Finance Week. He noted the recent launch of two ETFs that include private credit loans, which could provide investors exposure to this typically illiquid asset class.

#2- The UAE is expected to capture 40-60% of Standard Chartered’s fintech arm SC Ventures’ global investments over the next five years, Mohamed Fairooz, head of the company’s Middle East operations, told Al Bayan on the sidelines of ADFW. As of 2024, 36 startups have been launched globally under Standard Chartered Ventures, with 21 in the UAE. The venture firm set up a USD 100 mn fund to invest in crypto and decentralized finance startups, which it is set to grow to USD 300 mn in the next few years.

#3- UAE banks will see lending grow 9% in 2025, on the back of favorable business conditions resulting from high oil prices and increased economic activity, according to a Fitch Ratings Middle East Banks Outlook 2025 report picked up by Arab News. The anticipated growth rate is above the average for the GCC region but slightly below that of Saudi Arabia.

Banks in the country are expected to maintain strong funding and liquidity levels, with deposits likely to grow in line with lending activities. This liquidity support will come from substantial government deposits, which are bolstered by the sovereign's robust net external assets position and consistent stream of oil revenues.

#4- More than 20k jobs are expected to be created in the life science sector in Abu Dhabi over the next decade, Chairman of the Department of Health in Abu Dhabi Mansoor Al Mansoori said on Monday during Abu Dhabi Finance Week, Khaleej Times reports.

#5- Etihad Airways will invest USD 7 bn in the next four to five years to expand routes and upgrade the company’s fleet, CEO Antonoaldo Neves told CNBC (watch, runtime: 2:17). He added that the company’s operations are expected to grow by 80-90% within two years.

HAPPENING TODAY-

#1- The IDRA World Congress 2024 wraps up tomorrow at Adnec center in Abu Dhabi. The event, which kicked off on Sunday, brings together global leaders and experts to address the issue of water scarcity. The congress features discussions on the latest advancements in desalination, water reuse, and sustainable water management.

#2- The Abu Dhabi Space Debate forum is on its final day today at Erth venue in Abu Dhabi. The event, which kicked off yesterday, features high-level discussions with space industry players and policymakers addressing key challenges in the sector, and probing means for boosting collaborations between public and private space programs and promoting innovation in space exploration technologies.

On the second day: The UAE space agency inked an MoU with the European Space Agency (ESA) to cooperate in space exploration, state news agency Wam reports.

ALSO- The US Chamber of Commerce is currently in the UAE leading its first-ever space industry business mission, which includes over 20 companies and more than 40 delegates, a source from the US Chamber of Commerce told EnterpriseAM UAE. The mission marks the largest space-focused Commerce-certified trade mission to date. Participants are engaging with various Emirati officials and business leaders to explore prospects in the growing space sector.

#3-Automechanika Dubai kicks off today and runs through to Thursday at the Dubai World Trade Center. The event will cover nine key product areas: parts and components, electronics and connectivity, accessories and customization, tyres and batteries, car wash and care, oils and lubricants, diagnostics and repair, body and paint, and management and digital solutions. Automechanika Academy will offer industry insights and market updates.

#4- The two-day Forbes Middle East Under 30 Summit kicks off today at Umm Al Emarat Park in Abu Dhabi. The event gathers young Arab leaders and entrepreneurs to highlight their achievements and innovations. Discussions will focus on the accomplishments of individuals recognized in the Forbes Middle East 30 Under 30 list.

#5- The MEBAA Show 2024 kicks off today at the Dubai World Central, Dubai Airshow Site. The business aviation event, which runs through Thursday, will feature more than 145 exhibitors from around the globe, with over 65 first-time participants.

HAPPENING THIS WEEK-

Harvard’s AI Elevate conference will take place on 13 December at the Museum of the Future in Dubai. The event will feature discussions on driving AI strategy, the transformative impact of AI on several industries, and the integration of AI innovations in global markets.

THE BIG STORY ABROAD-

Syria is once again front and center in the news this morning, with Israeli airstrikes and incursions into the country continuing to pick up after the collapse of the Assad regime earlier this week. In just the last 48 hours, Israel conducted over 350 airstrikes that hit weapons stores, missile stores, fighter jets, navy vessels, and sites it claims could be holding chemical weapons. While over in the southwest of the country, Israel also expanded its already illegal occupation of the Golan Heights to create in confunction with its airstrikes what it terms a “sterile defence zone.” (Financial Times | Bloomberg | Reuters | Associated Press | New York Times | Guardian)

The country’s delicate political transition is also getting close attention from the world’s press, with Mohammed Al Bashir appointed as interim prime minister to lead the caretaker government until 1 March. The relatively unknown figure outside Idlib — where headed a comparatively miniscule rebel-held administration — now has a monumental task ahead of him as he tries to navigate the complexities of a post-Assad Syria. (Reuters | Guardian)

While over in the US, President-elect Donald Trump is doubling down on deregulation with a pledge to fast-track permits for investors committing USD 1 bn or more to US projects. While some hail it as a boon for large-scale infrastructure and manufacturing, critics argue it sidelines smaller projects and risks undermining environmental protections. (Financial Times)

***

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.

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 climate and logistics industries?

***

CIRCLE YOUR CALENDAR-

The European Arab Medical Congress will take place on 11-12 December at the headquarters of Zayed Higher Organisation for People of Determination in Abu Dhabi. Hosted by the Emirates Scholar Center for Research and Studies, the event will host 50 speakers and feature 40 scientific sessions covering the latest innovations in medicine and medical technology.

The Middle East Investor Relations Association Conference will take place on 11-12 December at the Conrad Abu Dhabi Etihad Towers Hotel. The event — considered the largest gathering for investor relations professionals in the Middle East — features activities for networking and dialogue among participants from local firms, international corporations, investors, research analysts, and regulatory bodies.

Aims will take place on 16-20 December at the Adnec Center in Abu Dhabi. The conference focuses on pure and applied analysis, differential equations, and dynamical systems, covering a wide range of applications in fields such as biology, chemistry, physics, finance, and industrial mathematics.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.