Adnoc seals its biggest takeover yet with acquisition of Covestro

1

WHAT WE’RE TRACKING TODAY

THIS MORNING: Opec+ meets today + Space42 is live on the ADX

Good morning, friends, and happy hump day. It’s a big day of news here at home, with several massive M&A updates, led by Adnoc finally sealing its EUR 14.7 bn takeover of Covestro following more than a year of talks. We also have M&A updates from Masdar, Tecom, and others — plus fresh macro data from Abu Dhabi, new Dubai targets, and a lot more. Let’s dive in.

?️WEATHER- Brace yourself for scattered rainfall today in eastern parts of the country and Al Ain, with rain clouds expected to give way for clearer skies later in the evening, the National Centre for Meteorology’s senior meteorologist told the Gulf News.

Dubai and Abu Dhabi residents can expect warm and sunny weather, with the mercury expected to peak at 39°C in Dubai, before cooling to 32°C overnight. Over in Abu Dhabi, temperatures will reach 35°C before cooling to 31°C overnight.

UPDATE-

Space42 went live on the ADX yesterday, after Bayanat and Al Yah Satellite Communications (Yahsat) completed their merger, according to a disclosure (pdf) to the ADX. The new AI-powered space tech company — whose satellite infrastructure covers 80% of the world’s population — trades under the ticker Space24. The company now comprises two primary business units, Yahsat Space Services, which will focus on upstream satellite operations, and Bayanat Smart Solutions, which will focus on geospatial data acquisition and processing.

Meet the team: Karim Michel Sabbagh (LinkedIn) serves as Space42’s managing director, with Yahsat led by CEO Ali Al Hashemi (LinkedIn), and Bayanat led by Hasan Al Hosani (LinkedIn). Andrew Cole is the company’s CFO. Major shareholders include G42, Mubadala, and IHC.

REFRESHER- The two companies’ shareholders approved the merger in April, with the plan first revealed in December. The acquisition saw Bayanat own 54% of Space42 and Yahsat own the remainder, with the new entity valued at AED 15 bn (c.USD 4 bn).

HAPPENING TODAY-

#1- Opec+’s joint ministerial monitoring committee is expected to leave its oil output policy unchanged when it meets at 4pm UAE today, Reuters reports, citing five unnamed sources from the group. The expectation that the group is likely to stick to its current output policy, which includes plans to phase out the voluntary production cuts starting December, comes despite oil prices falling below USD 70 / bbl for the first time in three years.

#2- The Water, Energy and Environment Technology Exhibition 2024 is on its second day at the Dubai World Trade Centre, and will wrap tomorrow. Organized by the Dubai Electricity and Water Authority, the event will focus on advancements in cybersecurity, digital transformation, and sustainability, showcasing the latest technologies and solutions to enhance digital and environmental security.

#3- The World Green Economy Summit kicks off today at the Dubai World Trade Center and wraps tomorrow. Organized by the Dubai Supreme Council of Energy, Dubai Electricity and Water Authority, and the World Green Economy Organization, the event will focus on green finance and sustainable development, highlighting global efforts to increase climate resilience and bolster international cooperation.

#4- The Sport Industry Forum kicks off today and wraps tomorrow at NYU Abu Dhabi, according to a press release (pdf). The two-day event will gather over 300 leaders from the global and regional sports sectors to discuss the future of sports in the UAE.

#5- The Mena Cool Forum will take place today and tomorrow at the Mövenpick Grand Al Bustan in Dubai. The forum will facilitate discussions on the selection strategies between district cooling and conventional HVAC systems. It will cover new developments, policies, project reviews, innovations, regional updates, and decarbonization efforts.

#6- The Mövenpick Grand Al Bustan in Dubai will also host The Future FoodForum 2024 today and tomorrow. The event focuses on food, consumer behavior, and the government’s role in the food and beverage sector.

WATCH THIS SPACE-

#1- DP World moving forward with expansions in Mozambique: DP World chairman and CEO Sultan Ahmed bin Sulayem and Mozambique’s President Filipe Nyusi met earlier this week to discuss developing industrial parks across the country and expanding Maputo Port, according to a statement. The firm looks to boost investments in Mozambique to strengthen its presence in the country and enhance trade with wider southern Africa, including South Africa, Zimbabwe, and Zambia.

Background: DP World has operated in Mozambique for over 20 years, remaining the longstanding operator at the country’s Maputo Port. The firm inked an agreement in January to extend its concession at Maputo till 2058. The company has invested USD 600 mn in expanding port infrastructure, and is looking to boost cargo handling capacity from 170k to 530k TEU annually by 2027, according to the statement.

#2- InterContinental Hotel Group (IHG) plans to expand its UAE team by several thousands as part of its regional expansion strategy, the group’s Regional Managing Director Haitham Mattar was quoted as saying by Gulf News. The expansion comes as the group gears up to open Ciel, the world’s tallest hotel, in Dubai next year, which would need “about [2k] staff members to run [...] effectively,” Mattar said.

The group expects to have almost 22 new hotels open by the end of this year, bringing IHG’s hotel portfolio in the region to around 220. Meanwhile next year, the group plans to open 19 new hotels, with 2026 expected to “be the biggest in terms of new hotel openings,” Mattar said.

#3- Expect more Karl Lagerfeld-branded residencies in the UAE: German fashion brand Karl Lagerfeld is set to broaden its presence in the UAE, focusing on branded residences in Ras Al Khaimah or Abu Dhabi. CEO Pier Paolo Righi revealed the plans to Arab News, highlighting a strategy to diversify beyond clothing. The company is already developing 51 villas in Dubai in partnership with Taraf.

#4- Dubai International Airport (DXB) raised its annual passenger forecast to 93 mn for 2024, up from a previous estimate of 91.8 mn, operator Dubai Airports CEO Paul Griffits said at an event, according to the National. In 2025, DXB is expected to see 93.8 mn passengers travel through the airport. The airport handled 44.9 mn people in 1H 2024, up 8% y-o-y.

#5- Abu Dhabi-backed Cerebras Systems filed its prospectus for an IPO on the Nasdaq to the US Securities and Exchange Commission, according to a company statement. The AI-focused chipmaking startup competes with Nvidia, the industry’s top producer of graphics processing units used in AI model training and deployment. The company narrowed its net losses in 1H 2024 to USD 66.6 mn, compared to USD 77.8 mn in the same period last year, the filing showed.

Remember: Cerebras Systems is reportedly looking to raise between USD 750 mn to USD 1 bn from its IPO, potentially valuing the company at USD 7-8 bn.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- Sewa to offer security deposit refunds via Al Ansari Exchange: The Sharjah Electricity, Water and Gas Authority introduced a new channel for refunding security deposits through Al Ansari Exchange, allowing customers without bank accounts to receive their refunds through Al Ansari, Sharjah 24 reports.

#2- Banks can now use the Dubai Unified License as a KYC measure to open business accounts for companies operating in Dubai or to update clients' data, according to a central bank circular that was seen by Emarat Alyoum.

#3- UAE carriers are rerouting and canceling flights in response to airspace restrictions following Iran’s attacks on Israel yesterday, Khaleej Times reports. Etihad Airways is rerouting flights today, while Emirates had to cancel and reroute others. Flydubai also had to cancel several flights scheduled yesterday, today, and tomorrow.

Israel, Lebanon, Jordan, and Iraq all temporarily closed their airspace for a few hours last night in response to Iran’s attacks.

DATA POINT-

Dubai’s real estate market achieved its highest ever level of quarterly sales in 3Q 2024, increasing by 46% y-o-y to AED 142 bn, Al Khaleej reports. The total value of sales between January and September increased 35% y-o-y to hit AED 374.2 bn.

Mortgages also increased 49% y-o-y in 3Q to AED 41.9 bn. For the first nine months of 2024, mortgages increased by 46.8% y-o-y to AED 132.2 bn.

The emirate also has a lot more real estate developers: The number of real estate developers in Dubai rose 32% y-o-y so far this year to 1.6k developers, Al Khaleej reports, citing data from real estate platform Dubai Rest.

THE BIG STORY ABROAD-

Iran fired some 200 missiles at Israel last night in a massive escalation of regional violence, with the Israeli army saying it has intercepted most missiles and reporting one dead in the West Bank. Israeli Prime Minister Benjamin Netanyahu said the attack was a “big mistake” and vowed retaliation during the opening meeting of his security cabinet yesterday, with the US promising to support Israel in its retaliation, Bloomberg reports.

Iranian Foreign Minister Sayed Abbas Araqchi said Iran’s attacks were “finished,” unless Israel retaliates, in which case their response will be “stronger and more powerful” on X a few hours ago.

Market reax: Oil prices surged 5% following the attacks, with Brent settling at USD 73.56 per barrel, and several indices on Wall Street and in the region ending lower.

The Iranian attack is getting plenty of play: Reuters | AP | CNN | BBC.

US elections are also back on front pages as the country gears up for the first and only vice presidential debate between Kamala Harris’ VP Tim Walz and Donald Trump’s pick, JD Vance, later today.

IN OTHER US NEWS- East Coast and Gulf Coast dockworkers’ kicked off their biggest strike in 50 years after negotiations for a new labor contract broke down, halting nearly half of the country’s shipping and potentially costing bns of USD in damages. (CNBC | Reuters)

Also causing plenty of damage: Hurricane Helene, which has killed at least 130 people across six states, with analysts estimating more than USD 30 bn in damages so far. (Semafor)

AND IN TECH NEWS-

OpenAI launched a slew of new tools, including one that will make it easier for developers to build AI voice applications, and another that will improve responses generated using images and text, as the company shifts its focus to agent systems, (Reuters | FT)
Apple is preparing to unveil a new version of its budget iPhone, iPhone SE, alongside new iPad Air models and new keyboards. (Bloomberg)

***

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.

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?

***

Abu Dhabi's GDP grew 4.1% in 2Q 2024, driven by non-oil growth

Abu Dhabi's economy grew 4.1% in 2Q 2024, with the non-oil economy growing by 6.6% on a quarterly basis, according to preliminary data from the Statistics Centre of Abu Dhabi. The emirate’s GDP stood at a new record of AED 297 bn during the quarter, with non-oil GDP reaching AED 164.2 bn.

Non-oil sectors took center stage: The non-oil sector collectively contributed to 55.2% of the emirate's overall economy, breaking 1Q’s record of seeing the highest contribution since late 2014. This was driven by sectors including manufacturing, construction, and finance, which reached their highest quarterly values yet, contributing to a non-oil GDP of AED 164.2 bn, up from AED 154 bn in the same period last year.

Construction strikes twice: Construction accounted for 9.3% of the emirate's GDP as activities increased 11.5% y-o-y — its highest contribution since 2015. The sector reeled in some AED 27.5 bn during the quarter.

Other sectors: Manufacturing activities were valued at AED 26.8 bn, accounting for 9% of GDP, while the finance and ins. activities reported 13.4% increase y-o-y and were valued at AED 22 bn. The wholesale and retail trade sector grew by 3.3%, while transportation and storage increased by 15.2%, real estate activities rose by 5.5%, and the information and communication sector expanded by 4.4%.

Background: Nationwide, the economy grew 3.4% y-o-y to AED 430 bn in 1Q 2024, from 3.1% last year, with the biggest driver of growth also being the non oil sector, with financial and ins. services leading the way.

Adnoc seals Covestro takeover in largest investment from Middle East player in Europe

Adnoc to issue public takeover offer for Covestro: Abu Dhabi National Oil Company (Adnoc) will make a public takeover offer to acquire German chemicals company Covestro for EUR 14.7 bn, including EUR 3 bn in debt, according to a statement. Covestro’s board also approved a 10% share capital increase, issuing 18.9 mn new shares to Adnoc at the same offer price, raising EUR 1.17 bn. The transaction marks Adnoc’s biggest yet, and the biggest for a Middle East firm in Europe.

What’s next? Covestro’s management and supervisory board will recommend the transaction to the firm’s shareholders, subject to a review of the bid.

We knew this was coming: The state-run oil firm was said to be finalizing a formal bid to acquire Covestro in August, with Adnoc’s CEO Sultan Al Jaber reportedly touching down in Germany to wrap up negotiations. Adnoc said in June that it was ready to raise its takeover bid to EUR 62 per share after revising its offer three times during the talks, which have been ongoing for over a year.

Adnoc’s final bid: The final offer of EUR 62 per share represents a 52% premium to Covestro’s share price in June 2023, and 21% to the price in June this year.

Business as usual at Covestro: Adnoc will maintain Covestro’s business activities, governance structure, and co-determined supervisory board, with no plans to reduce, sell, or close operations, according to the statement. The company also clarified that it will not execute a domination or net income and loss transfer agreement with Covestro.

Covestro’s management has indicated its openness to a potential delisting or a squeeze-out of minority shareholders if Adnoc moves forward with such plans, while affirming its commitment to remain a stock corporation with headquarters in Leverkusen. The chemical giant also said it will hold off on proposing any dividend payments until the transaction with Adnoc is either completed or called off.

This is part of a wider push into the chemicals sector, as it looks to diversify revenues with more low-carbon sectors. This acquisition allows it to become one of the top five chemicals players worldwide, state news agency Wam reports. The state-owned oil giant acquired earlier this year a 24.9% minority stake in Austria-based integrated oil and gas company OMV that was previously held by Abu Dhabi sovereign wealth fund Mubadala, and was also working on a bid to acquire a USD 2.1 bn stake in Brazilian petrochemicals company Braskem, but later withdrew its offer.

ADVISORS- Goldman Sachs, Perella Weinberg, Linklaters, Rothschild & Co, Macquarie Capital, and SZA Schilling, Zutt & Anschütz served as financial and legal advisors for Covestro.

OTHER M&A NEWS-

Masdar completes 50% acquisition of Terra-Gen: Renewables giant Masdar completed its acquisition of a 50% stake in US renewables firm Terra-Gen, according to a press release (pdf). ECP has fully offloaded its stake in Terra-Gen as part of the transaction, and Igneo Infrastructure Partners will retain its 50% stake in the company. Masdar signed the equity acquisition agreement in March.

What’s in the bag? Terra-Gen’s operating portfolio includes 3.8 GW of wind, solar, and battery storage projects with 5.1G Wh of energy storage across 30 renewable energy facilities, the statement notes. The company has over 12 GW of solar, wind, and battery storage projects currently in development, with 386 MW of Texas wind and California solar and 512 MWh of California energy storage facilities lined up to begin operations in 2025.

Masdar is setting its sights on US growth: Masdar is also looking to grow “beyond tenfold” in the US over the next three to seven years and wants to reach 100 GW of global energy capacity by 2030 — part of a wider ambition to achieve 100 GW of global energy capacity by 2030.

ADVISORS- BMO Capital Markets and JP Morgan served as financial advisors and White & Case and Covington & Burling served as legal advisors to Masdar. Lazard and Guggenheim Securities served as financial advisors and Latham & Watkins served as legal advisors to Terra-Gen.

Tecom acquires a AED 720 mn asset in Dubai Internet City from Emirates REIT

Business district developer Tecom Group inked a binding MoU with Emirates REIT to acquire a AED 720 mn commercial asset in Dubai Internet City from the real estate investment trust, according to a DFM disclosure (pdf). The asset features five interconnected buildings extending over a span of 371k sqft in the Office Park corporate hub, with an 88% occupancy rate.

What’s next? Emirates REIT’s shareholders still need to approve the transaction at their upcoming extraordinary general assembly on 15 October, according to a Nasdaq Dubai disclosure.

Emirates REIT has been exploring refinancing and divestment options as it looks to finance its US D 304.7 mn outstanding sukuk payment. Previously issued in December 2022 with a two year maturity date, the trust extended the sukuk’s maturity date by one year recently. The certificates’ owing amount went down from USD 380 mn after it sold the Trident Mall in Jumeirah Beach Residence (JBR) for AED 74 mn. It now needs to reduce that owing amount further to USD 230 mn by December, Zawya reported previously.

REMEMBER- Tecom is currently executing AED 2 bn worth of strategic acquisitions and developments. This plan involves investing AED 966 mn to acquire commercial and industrial assets from Dubai Holding Asset Management. It will also develop Grade A offices in Dubai Design District (d3) for AED 825 mn, planned for handover in 2028, and an Innovation Hub in Dubai Internet City.

The rationale: These development plans are capitalizing on strong demand for office spaces and industrial assets in Dubai, with Tecom’s existing assets reaching occupancy levels of 93% in 4Q 2023.

OTHER M&A NEWS-

#1- Bawan pushes deadline on Petronash acquisition: Saudi building materials manufacturer Bawan has pushed back the timeline on its takeover of UAE-based Petronash Global, it said in a filing to Tadawul. The two companies were initially scheduled to sign a sale and purchase agreement on 30 September, but still have to round off required procedures before turning their USD 175 mn MoU into a final document. The signing is now expected to happen during October, the filing said, without specifying when during the month.

ADVISORS- Bawan tapped PwC as its financial advisor on the transaction, while Piper Sandler is advising Petronash.

#2- Alpha Dhabi Holding (ADH) completed the sale of 49% of its subsidiary — Alpha Dhabi Construction Holding — to Abu Dhabi sovereign wealth fund ADQ, retaining 51% of the shareholding, according to an ADX disclosure (pdf). ADH received shareholder approval for this move at a general assembly meeting in June.

Azizi invests AED 1 bn in 12 building materials factories in Kezad

Azizi Developments will invest AED 1 bn in developing 12 building material factories in Abu Dhabi’s Khalifa Economic Zones’s (Kezad) A cluster, according to a press release. The company signed a 50-year land lease agreement with AD Ports Group to set up the factories over a 220k sqm area.

The planned facilities include a reinforcement steel cut and bend facility, timber joinery, duct fabrication workshops, aluminum and glass fabrication unit, and an aluminum extrusion factory.

The rationale: Azizi’s move into the manufacture of building materials aims to respond to the demand in commercial real estate, which has seen a steady rise as a result of rapid population growth and the influx of international investors into the UAE to expand their operations.

Background: The developer is currently working on the world’s second-tallest tower in Dubai, which will reach 725 meters. The USD 1.5 bn Burj Azizi is set to be completed in 2028, including a vertical mall, luxury residences, a seven-star hotel, and restaurants.

CBD to issue five-year USD-denominated bonds

CBD to issue five-year USD-denominated bonds: The Commercial Bank of Dubai (CBD) is set to issue five-year USD-denominated bonds following an investor meeting yesterday, Argaam reports, citing a bank document.

The details: The issuance is expected to be benchmark-sized, at a minimum of USD 500 mn.

ADVISORS- Citibank, Commerzbank, Emirates NBD Capital, First Abu Dhabi Bank, JPMorgan Chase, and Standard Chartered have been appointed as bookrunners.

Background: The bank last tapped debt markets in 2023 with its inaugural USD 500 mn green bond issuance, which was 3x oversubscribed.

Dubai sets out new strategies, targets for real estate, education, and payments

Dubai’s executive council has signed off on new strategies for real estate and education, as well as transport infrastructure, payments, and heritage, for 2033 aimed at boosting the sectors’ performance and further diversifying the economy, state news agency Wam reports.

#1- The real estate strategy aims to raise the value of real estate transactions to AED 1 tn by 2033, doubling the sector’s contribution to the economy. This will involve a 70% boost to transactions, and a 20x growth in real estate portfolios to AED 20 bn — and will allow the sector to contribute AED 73 bn to the emirate’s GDP.

#2- The education strategy aims to improve the education system’s offerings, including through the expansion of internationally accredited vocational institutions designed to build skills that are in line with “national priorities,” Wam said.

#3- The emirate now aims to become one of the top five cashless cities in the world by 2033, with the goal of having all business establishments accept digital payments by that year and bringing AED 8 bn into the economy through digital payments.

#4- The council also approved a “suspended transport systems project” to boost the automation of the automotive sector in line with 2030 targets — which aim to automate 25% of trips by the end of the decade — and a national archives project aimed at preserving the emirate’s heritage.

OVER IN SHARJAH-

Family businesses in Sharjah will now be required to hold an incorporation contract under a new decision passed by the Sharjah Executive Council (SEC) to regulate family businesses within the emirate, Wam reports. The decision aims to set up a legal framework for family businesses’ organization and governance, including mechanisms for resolving disputes. It also covers regulations on ownership, share disposal by partners, share classifications, family endowment businesses, family charters, and processes for liquidation.

The decision applies to family businesses formed within the emirate, existing companies owned by single-family members, and family enterprises in freezones.

Sheikh Mohammed Bin Rashid Al Maktoum names Wayne Stewart Martin as Chief Justice and appoints new judges for DIFC Courts

!_StoryHedWeb_Sheikh Mohammed Bin Rashid Al Maktoum names Wayne Stewart Martin as Chief Justice and appoints new judges for DIFC Courts

DIFC Courts gets new chief justice: Vice President and Prime Minister Sheikh Mohammed bin Rashid Al Maktoum appointed Wayne Stewart Martin (Linkedin) as the chief justice of the Dubai International Financial Centre (DIFC) Courts, effective 12 September, according to the Dubai Media Office. A second decree appointed Thomas Bathurst, Sapna Jhangiani (Linkedin), and Roger Stewart, as judges in the court of appeal of the DIFC.

Emirati pharma firm Julphar tapped Alaa Abdelghany Mohamed Gamaleldin as chief commercial officer, effective yesterday, following the resignation of Amgad Thabet, according to a press release (pdf). Alaa has previously held senior positions at major multinational companies including GSK, Pfizer, and Jamjoom Pharma.

Epson, Neuraxpharm Group set up subsidiaries in Dubai to serve wider region

BUSINESS-

Epson sets up shop in Dubai: Japanese electronics company Seiko Epson Corporation (Epson) set up a new regional subsidiary in Dubai, aimed at serving businesses and consumers in the Middle East, Turkey, Africa, and Central and West Asia, according to a press release. The new subsidiary will offer technology solutions to several sectors, including education, healthcare, financial services, construction, tourism, hospitality, retail, and entertainment.

Meet the team: Neil Colquhoun (LinkedIn) will serve as Epson Middle East FZCO’s president.

PHARMA-

#1- UAE and South Korea boost pharma collaboration: The Emirates Drug Establishment inked an MoU with the South Korean Food and Drug Safety Ministry aimed at boosting collaboration in the manufacturing of pharma and medical products, Wam reports. The agreement focuses on sharing expertise in drug regulation, clinical trials, and pharmacovigilance. It aims to expedite the registration of meds through a fast-track approval process, as well as bolster post-marketing surveillance, and promote joint research initiatives. It also includes plans for mutual training programs to improve efficiency in the pharma sector.

#2- European pharma firm Neuraxpharm Group launched Neuraxpharm Middle East to serve GCC countries as part of its international expansion strategy, according to a press release. Based in Dubai, the new subsidiary will focus on distributing a prescription brand for relapsing multiple sclerosis (RMS) and other CNS treatments. The RMS product was submitted for approval in the UAE and Saudi Arabia and is expected to launch in 2025.

CRYPTO-

Ripple secured in-principle approval from the Dubai Financial Services Authority to expand its operations in the UAE and introduce cross-border payments services, according to a press release. The move puts Ripple on track to become the first blockchain-enabled payment services provider licensed by the DFSA, the DIFC said.

FINTECH-

Wio Bank’s SME clients to access Magnati’s financing platform: Payment solutions provider Magnati partnered with Wio Bank to provide SME clients quicker access to financing through its merchant financing platform, Wam reports. Loans obtained through the platform are repaid automatically, with equated monthly installments (EMIs) deducted from daily payouts.

REAL ESTATE-

#1- Swissôtel residences coming to Dubai Islands: Dubai-based real estate developer The Summary Executive Properties partnered with French hospitality group Accor to develop Swissôtel -branded residences on Dubai Islands, according to a press release from Accor. The project is scheduled for completion in 2027 and features 105 private homes, in addition to apartments and a penthouse.

#2- AND- Accor-owned French hotel chain Sofitel launched its first branded residential development in Downtown Dubai district in partnership with Azha Properties and Dubai Sotheby’s International Realty, according to a press release. Sofitel Residences will feature 64 residences and six penthouses. The project is slated for completion in 4Q 2026.

MANUFACTURING-

Nayyer Carpets lands in the UAE: Pakistani carpet producer Nayyer Group is set to launch its flagship subsidiary Nayyer Carpets, along with a production facility, in Ras Al Khaimah’s Al Ghail Industrial Zone, according to a press release. The new facility will produce carpets, needle loom felt, geotextiles, wall-to-wall carpets, and grass carpets, targeting markets, with a planned production capacity of 50 mn sqm per year. It will target markets in the GCC, Africa, India, and Pakistan.

NBFS-

Du Pay’s users will be assigned virtual IBANs to streamline their financial transactions within the UAE under a new partnership with Emirates NBD, according to a press release. The partnership will also allow them to conduct cardless withdrawals from Emirates NBD’s ATM network.

INVESTMENT-

Agility to invest in new fund: ADX-listed Agility Global ’s venture capital arm plans to invest in a new fund that will provide capital to early-stage startups in the Middle East and Africa, according to a press release. The fund will be managed by Dubai-based investment firm Global Ventures.

EDUCATION-

India’s Symbiosis International lands in Dubai: India’s Symbiosis International launched its first offshore campus in Dubai, according to a press release.

GCC sovereign wealth funds accounted for 40% of global sovereign investments in 9M 2024

Sovereign wealth funds (SWFs) in the GCC invested USD 55 bn across 126 transactions in 9M 2024, accounting for around 40% of all investments from state-backed investors, consultancy firm Global SWF said in its 2024 GCC playbook report. The lion’s share of investments from the GCC’s sovereign wealth funds — some USD 52 bn — were deployed during the first half of the year, Bloomberg reported previously. In 1H 2024, GCC SWFs accounted for 56% of all the capital deployed by global SWFs.

Leading the pack: The Public Investment Fund (PIF), the Abu Dhabi Investment Authority (ADIA), ADQ, Mubadala, and the Qatar Investment Authority, which are collectively known as the Oil Five.

AUM is heading towards the USD 5 tn mark: Sovereign wealth funds and other sovereign investors in the gulf — including Saudi’s General Organization for Social Ins. and Aramco PF, as well as the Investment Corporation of Dubai — have some USD 4.9 tn in collective assets under management (AUM), the report says. That figure is expected to grow to USD 5 tn early next year and hit USD 7.3 tn by 2030. Although the forecast for the end of the decade is “a shade lower than the USD 7.6 tn the consultancy forecast in its December report, it still represents a 49% increase from 2024,” Bloomberg notes.

The breakdown: Sovereign wealth funds in the UAE have the largest share of AUM within the GCC, with the report forecasting USD 2.2 tn of AUM by the end of 2024, according to Zawya. In Saudi, some USD 1.1 tn are held by the country’s sovereign investors, the report shows. The PIF’s AUM reached USD 900 bn (SAR 3.47 tn) by the end of August, a 21% increase from SAR 2.87 tn at the end of 2023, making the fund the world’s sixth-largest sovereign wealth fund, according to the Finance Ministry’s FY2025 Pre-Budget Statement (pdf).

Where’s the money going? China appears to be emerging as the darling destination for GCC SWF capital, drawing in USD 9.5 bn in investments from the region, the report says. The increased focus on China comes as Western investors have been withdrawing from Chinese investments amid increased pressure and regulatory restrictions. In 2023, sovereign wealth funds from the Middle East had invested USD 2.3 bn in Chinese companies, marking a 2.2k% y-o-y increase from the year prior. the Hong Kong Monetary Authority previously said. Meanwhile, traditional investment destinations the US and UK still attracted a “significant” portion of investments from GCC SWFs.

The tides are changing: “Sovereign investors such as ADIA have traditionally invested over 50% of their portfolio in the US just because there were more opportunities on the rise. However, they have been trying for years to diversify into the East,” Zawya quotes Global SWF founder and Managing Director Diego Lopez as saying. “We have seen increased activity in both China and India.”

REMEMBER- The EU and US hiked tariffs on Chinese imports in recent years in a bid to contain the country’s rise in sectors that much of the developed world sees as a threat to their own economies.

MARKETS THIS MORNING-

It’s a mixed picture in the markets, with Japan’s Nikkei down in early trading, while the Hang Seng is trading in the green. Mainland Chinese markets are closed for the entire week.

Meanwhile, Wall Street futures are just barely in the green, although Dow futures are down 0.1% in pre-market trading.

ADX	9,406	-0.2% (YTD: -1.8%)
DFM	4,477	-0.6% (YTD: +10.3%)
Nasdaq Dubai UAE20	3854	-0.2% (YTD: -1.7%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.7% o/n	4.0% 1 yr
TASI	12,254	+0.2% (YTD: +2.4%)
EGX30	31,866	+0.9% (YTD: +28.0%)
S&P 500	5,709	-0.9% (YTD: +19.7%)
FTSE 100	8,277	+0.5% (YTD: +7.0%)
Euro Stoxx 50	4,954	-0.9% (YTD: +9.6%)
Brent crude	USD 74.40	+3.8%
Natural gas (Nymex)	USD 2.90	-0.8%
Gold	USD 2,690	+1.2%
BTC	USD 60,803	-4.7% (YTD: +44.0%)

THE CLOSING BELL-

The DFM fell 0.6% yesterday on turnover of AED 296.46 mn. The index is up 10.3% YTD.

In the green: Dubai Refreshment Company (+15%), National International Holding Company (+15%) and Emirates REIT (+9.5%).

In the red: Amanat (-3.4%), Watania International Holding (-3.0%) and ENBD REIT (-2.1%).

Over on the ADX, the index fell 0.2% on turnover of AED 1.74 bn. Meanwhile Nasdaq Dubai closed down 0.2%.

CORPORATE ACTIONS-

Abu Dhabi’s Al Yah Satellite Communications (Yahsat) approved a payout of AED 204.9 mn in interim dividends for 1H 2024, according to an ADX disclosure (pdf).

Fertiglobe will be paying its shareholders USD 150 mn (AED 551 mn) in interim dividends for 1H 2024, it said in an ADX disclosure (pdf).

Abu Dhabi National Hotels is tapping BHM Capital as price stabilization manager for the shares of its subsidiary, ADNH Catering, according to an ADX disclosure (pdf). The catering unit is set to debut with a 40% stake on the ADX on 23 October after the book building process wraps on 15 October.

UAE strengthens ties with Qatar and Switzerland + calls for ceasefire in Gaza, Sudan

Abu Dhabi, Qatar talk bilateral ties: Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan and Qatar’s Prime Minister and Foreign Affairs Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani discussed ramping up cooperation in key strategic sectors yesterday, according to the Abu Dhabi Media Office. During his visit to Qatar, the Abu Dhabi Crown Prince also discussed strengthening UAE-Qatar relations with Qatar’s Emir Sheikh Tamim bin Hamad Al Thani, according to a separate statement.

UAE rejects attacks on Lebanon, Gaza…: State Minister Sheikh Shakhboot bin Nahyan Al Nahyan renewed calls for a ceasefire in Gaza and Sudan during his speech at the UN General Assembly, calling on the warring Sudanese factions to engage in peaceful dialogue and for the resumption of access to aid in both Gaza and Sudan, as well as respect of international laws. In a separate statement, the Foreign Ministry expressed “deep concern” over the developments in Lebanon and their potential impacts on regional stability. This comes a day after the UAE committed USD 100 mn in relief aid to Lebanon.

…and renews calls for return of seized Islands: The minister also renewed the UAE’s demands to Iran to end its occupation of the Greater Tunb, Lesser Tunb, and Abu Musa islands, which have been occupied since 1971 in what the UAE says is a violation of the UN Charter. The minister asked Iran to respond to calls to resolve this issue through direct negotiations, or through a formal dispute with the International Court of Justice.

PLUS: The UAE and Switzerland held their latest financial dialogue yesterday, focusing on ramping up bilateral cooperation in financial and economic fields, including macroeconomic developments, international taxation, and digital finance trends, Wam reports. The two sides explored strengthening collaboration between government bodies and private sector players to enhance financial and economic partnerships.

CALENDAR

OCTOBER

30 September-3 October (Monday-Thursday): International Youth Nuclear Congress, Adnec Centre, Abu Dhabi.

1-3 October (Tuesday-Thursday): Water, Energy and Environment Technology Exhibition, Dubai.

2-3 October (Wednesday-Thursday): The World Green Economy Summit, World Trade Center Dubai.

2-3 October (Wednesday-Thursday): MENA District Cooling Projects & MENA Cool Forum, Grand Hyatt Dubai, Dubai Healthcare City, Dubai.

2-3 October (Wednesday-Thursday): Future Food Forum, Le Méridien Dubai Hotel & Conference Centre, Dubai.

3-5 October (Thursday- Saturday): MeFitProConference and Exhibition, Dubai World Trade Centre.

7-8 October (Monday-Tuesday): Forex expo, World Trade Center, Dubai.

7-8 October (Monday-Tuesday): AgraME, World Trade Center, Dubai.

7-9 October (Monday-Wednesday): AccessAbilities Expo, Dubai World Trade Centre.

7-10 October (Monday-Thursday): The World Air Taxi Congress, The Grand Hyatt Dubai, Dubai.

8-9 October (Tuesday-Wednesday): Global Trade and Supply Chain Summit, Dubai.

8-10 October (Tuesday-Thursday): The Global Rail Transpo[rt Infrastructure Exhibition and Conference(Global Rail), Abu Dhabi.

9-10 October (Wednesday-Thursday): The Regional Data and Community Development Forum, Al Jawaher Reception and Convention Centre, Sharjah.

10 October (Thursday): DXBAPEX500 Summit and DIFC Workshop, Dubai International Financial Centre, Dubai.

10-13 October (Thursday-Sunday): The Abu Dhabi Grand Slam Judo tournament, Mubadala Arena.

13-14 October (Sunday-Monday): Abu Dhabi Wedding Show, Park Hyatt Abu Dhabi.

13-16 October (Sunday-Wednesday): DMCCxAGCC: Global AI Challenge *Sustainability Edition, Dubai.

14-18 October (Monday-Friday): Gitex Global, Dubai World Trade Centre and Dubai Harbour.

14-18 October (Monday-Friday): IROS 2024, Adnec Centre, Abu Dhabi.

15-16 October (Tuesday-Wednesday): SuperBridge Summit 2024, Dubai World Trade Centre, Dubai.

13-16 October (Sunday-Wednesday): Expand North Star, Dubai Harbour.

14-18 October (Monday-Friday): IEEE/RSJ International Conference on Intelligent Robots and Systems, Adnec Centre, Abu Dhabi.

14 October (Monday): The Smart Cities MENA Summit, Dubai.

20-23 October (Sunday-Wednesday): The 63rd International Congress and Convention Association (ICCA) Congress, Abu Dhabi National Exhibition Centre, Abu Dhabi.

21-22 October (Monday-Tuesday): Port Development MEA Forum, Dubai.

21-22 October (Monday-Tuesday): Roads, Bridges, Tunnels MENA Conference, Dubai.

21-22 October (Monday-Tuesday): The Alternative Investment Summit, Dubai.

23-26 October (Tuesday-Saturday): World Stroke Congress, Adnec Centre, Abu Dhabi.

24 October (Thursday): Game Changers - Dubai Real Estate Summit, Coca-Cola Arena, Dubai.

24-27 October (Thursday-Sunday): International Sports Medicine Conference, Dubai.

26 October (Saturday): UFC 308: TOPURIA vs HOLLOWAY, Etihad Arena, Abu Dhabi.

26-27 October (Saturday-Sunday): International Conference on Tourism, Transport, and Logistics, Dubai.

27-30 October (Sunday-Wednesday): IEEE - International Conference on Image Processing, Adnec Centre, Abu Dhabi.

28-29 October (Monday-Tuesday): MENA Climate Proof Forum, Dubai.

29 October-2 November (Tuesday-Saturday): Abu Dhabi Early Childhood Week, Abu Dhabi.

30 October-1 November (Wednesday-Friday): World Cities Cultural Summit, Dubai.

30 October (Wednesday): Connected Construction Conference, Museum of the Future, Dubai.

30-31 October: Sixth edition of Binance Blockchain Week, Coca-Cola Arena, Dubai.

NOVEMBER

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

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

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

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

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

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

19-20 November (Tuesday-Wednesday): Dubai Future Forum.

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.

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

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.

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.

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.

10-12 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.

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.

16 February-1 March: Dubai Duty Free Tennis Championships, Dubai Duty Free 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.

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

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

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 Centre.

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.

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

JUNE 2025

3-4 June (Tuesday-Wednesday): Make-A-Wish International’s Global Wish summit, Abu Dhabi.

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.
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

Signposted to happen sometime in 2028:

Abu Dhabi to host the Chess Olympiad.

Signposted to happen sometime in 2029:

Dubai to host the International Conference on Computer Vision.

Sections

About

Privacy & Support

Get EnterpriseAM daily