ADQ’s completes acquisition of Sotheby’s stake

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WHAT WE’RE TRACKING TODAY

THIS MORNING: ADGM proposes tightened banking regs + Ewec receives proposals for Khazna solar plant

Good morning, lovely people. We have a brisk issue for you this morning, with a couple of big M&A updates — including ADQ closing its acquisition of a stake in Sotheby’s — and more details on the UAE’s investments in Vietnam, which span across EV, data center and logistics infrastructure.

⛅WEATHER- Temperatures will peak at 34°C in Dubai, before cooling to an overnight low of 26°C. Over in Abu Dhabi, it’s a mostly cloudy day with a high of 31°C and an overnight low of 26°C.

WATCH THIS SPACE-

#1- Abu Dhabi proposes new banking regulations: The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) issued a consultation paper (pdf) proposing updated rules to tighten banking regulations, according to a statement from the financial center. Feedback on the proposal is open until 28 November 2024.

The new regs include:

Stricter corporate governance standards, requiring — among other things — a majority of non-executive directors and at least one independent director on the boards of banks and insurers;
Processes for identifying domestic systemically important banks (D-SIBs), which will then be subject to higher capital buffer and leverage ratio requirements;
Enhanced country and transfer risk management protocols, including rigorous stress testing and branch oversight;
New requirements mandating FSRA notification prior to significant acquisitions or the establishment of subsidiaries.

#2- Ewec receives three proposals for Khazna solar plant: The Emirates Water and Electricity Company (Ewec) has received three proposals to set up the 1.5 GW Khazna Solar Photovoltaic (PV) Independent Power Project (IPP), according to a press release. Ewec had received 27 expressions of interest, of which 19 qualified for the Request for Proposals (RFP) last April, and the final power purchase agreement is set to be inked in Q2 2025. The plant will generate enough electricity for some 160k homes across the UAE.

Who’s in so far? The proposals came from France’s Engie, a consortium of the UK’s EDF Renewables and Korea Western Power (Kowepco), and a consortium of Jinko Power and Jera. The chosen developer will construct, finance, operate, and maintain the plant. It will also keep a 40% stake, with the rest to be owned by the Abu Dhabi government.

Some of these companies are active in the Emirati market: Kowepco and EDF were tapped by Ewec in February to develop Ewec’s 1.5 GW Al Ajban solar project for an estimated investment ticket of USD 748 mn.

#3- Adnoc is gearing up to expand its oil trading business, currently holding talks with Switzerland-based commodity trading house Montfort Group to expand a tolling agreement between them that would see Adnoc send more outsourced shipments to be processed at a partially Montfort-owned refinery in Fujairah, Bloomberg reports, citing people it says are familiar with the matter. Under the current agreement, Adnoc reportedly processed at least one cargo of Sudanese Nile crude at the refining facility, where the produced fuel is then sold by Adnoc.

Adnoc’s trading operations expansion is already underway, with the state-run company signing agreements to buy Nigerian crude to be processed at the facility and is reportedly looking to secure more supply agreements.

The timing has never been better for Adnoc: The Fujairah refinery processes thick and low-sulfur oil sourced primarily from Africa. Recent supply disruptions in Sudan have limited crude supply, impacting the refinery’s operations and causing it to operate below full capacity, giving Adnoc room to expand its operations at the refinery.

#4- Dubai International Financial Center (DIFC) suspended several entities with reported ties to Iranian oil trader Hossein Shamkhani, including investment firms Milavous Group and Ocean Leonid Investments, Bloomberg reports, citing unnamed sources. These companies recently appeared in the registry of the DIFC freezone as inactive - suspended, without specifying a starting date for the status.

What’s next? Milavous hasn’t taken any actions so far, while Ocean Leonid is currently working with DIFC to provide all of the information requested by the emirate’s finance hub.

#5- Mubadala-owned Spanish oil company Cepsa was rebranded as Moeve to signify its new focus on low-carbon operations, Reuters reports, citing CEO Maarten Wetselaar. The company is currently investing EUR 8 bn to transition towards sustainable energy and mobility. These transitional steps include a partnership with Schwarz Group’s environmental arm, PreZero Spain, to build a waste recycling facility to produce 2G biofuels and circular chemical products.

PSA-

Etihad Airways canceled select flights between Abu Dhabi Zayed International Airport and Kuwait from 30 October to 2 November due to “reasons beyond its control,” the UAE’s flag carrier said in a network update on its website. The airline is working to re-accommodate impacted customers or provide full refunds.

DATA POINT-

S&P forecasts high single-digit growth in the Islamic finance sector through 2025, driven by increasing financing needs in key markets, Wam quotes Mohamed Damak, global head of Islamic Finance at S&P Global Ratings, as saying. The UAE’s robust non-oil economy is expected to support Islamic banking growth, with the sector seeing a surge in foreign currency-denominated sukuk issuances earlier this year, driven by real estate developers and financial institutions seeking FX.

Sustainable bonds are set to stabilize at around USD 1 tn globally in 2024, according to S&P Director Rawan Oueidat. While the Middle East’s share remains below 3% of the total, demand for sustainability sukuk in the region rose to USD 6.1 bn in the first nine months of the year, led by the UAE and Saudi Arabia.

The UAE’s ins. market is poised to see strong growth, with both Islamic and conventional sectors projected to expand 15-20% this year, according to Emir Mujkic, director at S&P. The sector is expected to be propelled by favorable economic conditions, rising infrastructure investments, and price adjustments in medical and motor ins. Islamic ins. currently comprises approximately 15% of the total insurance sector in the UAE.

HAPPENING TODAY-

#1- The Healthcare Future Summit is on its third and final day at the Dubai World Trade Center. The summit will discuss advances in disease management, AI integration to streamline vaccine distribution, and resource management, with a focus on vaccine policies in the GCC, according to a statement.

#2- Dubai is hosting the World Cities Cultural Summit through to Friday. The summit probes how cities can create a fostering environment for artists and entrepreneurs, while addressing global challenges, such as the climate crisis and AI.

#3- The Binance Blockchain Week is on its second and final day in Dubai. The conference gathers traders, builders, founders, institutional investors, regulators, global officials, and innovators to discuss the future of blockchain and Web3 technology.

#4- The International Geotechnical Innovation Conference is on its second and final day at Le Meridien Dubai Hotel & Conference Centre in Dubai. The event features discussions on advanced ground engineering, innovative geotechnical solutions, and an exhibition showcasing the latest technologies in geotechnical engineering.

#5- The Global Conference on Economic Diversification kicks off today and wraps up tomorrow at The Mohammed bin Rashid School Of Government. The event features panel discussions, roundtables, and workshops focused on the results of the Global Economic Diversification Index and policies related to economic diversification.

#6- AI Connect Mena kicks off today at the Etihad Museum in Dubai. The event features discussions led by global Google executives and industry leaders on prospects in AI, alongside networking sessions for key figures from the public and private sectors.

THE BIG STORY ABROAD-

For the first time in a while, business news is making it to the top of the foreign press’ front pages as Big Tech continue to report their 3Q earnings — with Meta and Microsoft both out with their figures for the quarter. Plus: The latest US economy figures are out, and Israel and Lebanon could be approaching a ceasefire.

Concerns among investors that AI investments will not translate into tangible returns anytime soon continue this quarter, with only Google owner Alphabet seeming to prove that the payoff is real so far.

#1- Microsoft’s shares fell in overnight trading after the tech giant forecast constricted growth in its Azure business due to a lack of data center capacity, bringing jitters back to investors who have been waiting for tech firms’ AI investments to pay off. The otherwise upbeat results saw a 16% y-o-y increase in revenues and net income come in higher than expected. (Bloomberg | Financial Times | Wall Street Journal | CNBC)

#2- Meta’s earnings came in slightly lower than expected, pushing shares to decline in after hours trading, on slower-than-expected growth in daily active users. CEO Mark Zuckerberg warned that more AI investments will come as the company continues to prioritize projects like the metaverse and AI-powered glasses. (Bloomberg | Reuters)

IN MACRO NEWS- The US economy grew at a 2.8% clip in 3Q 2024, slightly short of economists’ expectations of 3% growth. The results come just a few days before elections begin, and a week before the Federal Reserve meets to decide on interest rates. (FT | CNBC | New York Times)

CLOSER TO HOME- Israel is in talks for a potential ceasefire in Lebanon, with a draft proposal carried by Israeli media yesterday suggesting a potential agreement that could see a 60-day pause in fighting. Lebanese Prime Minister Najib Mikati said talks with the US envoys suggest an agreement could be reached before the end of the month and before 5 November.

US envoys for the Middle East Amos Hochstein and Brett McGurk are due to land in the Middle East today to discuss the potential agreement with Israeli Prime Minister Benjamin Netanyahu. (Bloomberg | Reuters | FT)

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ADQ completes acquisition of stake in Sotheby’s

ADQ closes Sotheby’s acquisition: Abu Dhabi’s sovereign wealth fund ADQ acquired a minority stake in Sotheby’s, the UK-based auction house, as part of a c.USD 1 bn investment made jointly with telecom b’naire Patrick Drahi, Bloomberg reports. Drahi retained a majority stake in the company. The exact financial terms of the transaction were not disclosed.

ADQ will get seats on Sotheby’s board: ADQ will hold three seats on Sotheby’s board, which will consist of eight directors plus the CEO. Sotheby’s CEO Charles Stewart confirmed that ADQ’s representation approximately reflects its proportional investment in the company, without providing further details.

Background: ADQ first revealed its plan to snag a stake in Sotheby’s last August, stating that it will acquire newly issued Sotheby’s shares, with Drahi — who bought Sotheby’s for USD 3.7 bn in 2019 — committing capital to retain his majority stake.

Sotheby’s has faced financial challenges in recent years, with parent company Bidfair holding almost USD 1.7 bn in long-term debt. The company’s sales declined to USD 3.2 bn in the first half of 2024, down 20% y-o-y, according to a company spokesperson. This financial pressure led S&P Global Ratings to downgrade Sotheby’s credit rating to B-, citing declining profitability and elevated leverage.

The capital injection will repay Sotheby’s debt + fuel its expansion: The auction house will use approximately USD 800 mn of the funds to reduce its debt, with the rest to go towards supporting Sotheby’s expansion plans. The expansion plans include growing its real estate portfolio in the US, entering new markets, and developing new revenue streams, Artnews reports. Part of this includes finalizing the purchase of the Breuer building in New York, initially announced in June 2023 for USD 100 mn, where Sotheby’s plans to establish its New York headquarters. Stewart stated that the auction house expects to finalize the acquisition “imminently,” in a statement.

PLUS- The auction house could expand its presence in the Middle East, particularly in Abu Dhabi, it said in August.

OTHER M&A NEWS-

A subsidiary of Modon Holding’s Adnec Group, Excel London, completed the acquisition of London’s BDCG Holdings, which owns the Business Design Center venue in north London, according to an ADX disclosure (pdf). The transaction’s value was not disclosed. The venue — which spans 4.5 acres — hosts more than 130 events and 900k guests annually.

REMEMBER- Adnec is expanding across multiple sectors, acquiring the Abu Dhabi-based Royal Catering last week to merge the firm into its existing catering business Capital Catering.

About Excel: The company operates as an events hub in the meetings, incentives, conferences, and exhibitions (MICE) industry. Acquired by Adnec in 2008, Excel currently operates 125k sqm of MICE space, making it the largest integrated conference and exhibition venue in Europe.

UAE to invest in data centers, logistics, and EVs in Vietnam

We have more details on Vietnam, UAE collaboration, with some USD 3.5 bn earmarked for a new data center and related infrastructure. Foreign Trade Minister Thani Al Zeyoudi also expressed interest in pursuing further investments in Vietnam.

ICYMI- The UAE and Vietnam and the UAE inked a comprehensive partnership agreement earlier this week that will see both countries cooperate across several sectors and unlock USD 20 bn in trade. The agreement is expected to give a boost to sectors like food production, textiles, machinery, metal industries, logistics, and infrastructure, Al Zeyoudi said.

DIGITAL INFRASTRUCTURE-

UAE’s Benya Group and Vietnamese Vingroup are funneling USD 3.5 bn to develop a hyper-scale data center in Vietnam, along with supporting technical, power, and water treatment infrastructure, according to a statement from Vingroup. The project aims to support Vietnam’s growing digital economy and strengthen digital connectivity in the region.

The details: The data center is set to reach 300 MW in capacity, serving both domestic and international markets. It will be built in three phases, though the specific completion date has not been disclosed.

MARITIME LOGISTICS-

AD Ports is also partnering with Vingroup to develop shipyard-building capabilities, logistics ecosystems, and seaport operations in Vietnam, focusing on modernizing Vietnam’s logistics and manufacturing sectors. Vingroup will manage project development, infrastructure construction, and local partnerships, while AD Ports will oversee operational management and connect with international clients.

AD Ports also inked an MoU with Vietnam Customs (GDVC) to explore digital trade solutions for the country’s customs department, including a single window trade solution, customs and border solutions, trade and risk management platforms, and AI-supported digital trade solutions, Wam reports.

EVs-

Emirates Driving to back Vinfast: Emirates Driving will also lead a consortium of Emirati investors to provide at least USD 1 bn in funding to Vietnamese automotive company Vinfast, Bloomberg and Reuters report, citing sources. No specific timeline has been set up for the disbursement of these funds, the source said, while the Vingroup statement only confirmed that Emirates Driving will be leading a consortium investing in the company.

What we know: The two companies will work towards developing electric vehicle (EV) infrastructure, driver training, and road safety initiatives to support VinFast’s growth efforts, according to Vingroup’s statement.

COASTAL DEVELOPMENT-

NMDC’s partnership with Vingroup involves exploring coastal land reclamation projects, including a 150 mn cubic meter allocation for urban development. Additional projects will focus on land reclamation for industrial and real estate purposes, as well as coastal protection initiatives for high-end real estate developments.

How it will work: Vingroup will lead the development of urban and high-end real estate projects, while NMDC will contribute technical expertise to promote sustainability and reduce ecological impact.

THERE MIGHT BE MORE-

More UAE-Vietnam collaboration on the horizon? Abu Dhabi Investment Authority (Adia) Managing Director Sheikh Hamed Bin Zayed Al Nahyan met with Vietnamese PM Pham Minh Chinh to express Adia’s interest in backing various priority sectors in Vietnam, Tuoi Tre News reports. Adia agreed to explore projects in infrastructure, climate response, innovation, and the establishment of financial centers and freetrade and cargo transit zones for petroleum products in Vietnam, as well as partnerships with Vietnamese food corporations.

What’s next? Adia plans to send a working delegation to Vietnam to kickstart these collaborations, with Vietnamese PM Chinh tasking Vietnam’s Planning and Investment Ministry and other state agencies with coordination with Adia on potential projects.

Investcorp’s China-backed fund is investing in projects in UAE, KSA

Investcorp fund targets UAE, KSA projects: Asset manager Investcorp Holdings’ China-backed Investcorp Golden Horizon fund is investing in three projects in the Middle East, primarily in the UAE and Saudi Arabia, CIO Rishi Kapoor told Bloomberg (watch, runtime: 2:46). Investments focus on the consumer services, healthcare, and business services sectors, though no further details were disclosed. The asset manager is targeting USD 750 mn for the fund.

REFRESHER- Mubadala-backed Investcorp launched a USD 1 bn investment fund in April, Investcorp Golden Horizon, to invest in high-growth companies in consumer, healthcare, logistics, and business services across the GCC area and China. China’s sovereign wealth fund the China Investment Corporation, and Investcorp Capital, alongside private investors from the GCC, are backing the fund.

The firm plans to expand its asset management portfolio from USD 53 to 100 bn, including global projects and Middle East-based investments, Kapoor tells Bloomberg. The firm also plans on capitalizing on more sovereign investors in the upcoming years.

Dubai revamps Financial Audit Authority framework

New FAA framework hands director general more authority, disciplinary penalties for minor offenses: Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum amended the law regulating the Financial Audit Authority (FAA) in Dubai to strengthen oversight and accountability, according to a statement.

What’s new? The revised law grants the director general the authority to suspend employees under investigation and reserve relevant documents, as well as close cases involving minor criminal offenses and impose disciplinary penalties instead of referring them to the Public Prosecution. Guidelines for closing such investigations will be set by the head of the FAA.

The FAA will set up a Grievances Committee to handle appeals against decisions made by the Central Violations Committee. The committee will comprise a chairperson, a CEO from a government entity, and representatives from the FAA and the supreme legislation committee.

The new regs stipulate that travel bans and asset freezes may be imposed for up to three months, to be extended if deemed necessary. Individuals can file appeals against the restrictions after the initial period concludes.

Adnoc Drilling, e&, ADIB, and more report 3Q earnings

ADNOC DRILLING-

Adnoc Drilling saw its net income increase 30% y-o-y to USD 334.9 mn in 3Q 2024, according to the drilling company’s financials (pdf). Revenues also climbed 32% y-o-y to USD 1 bn on the back of growth in its oilfield services segment and the expansion of its onshore and offshore fleets, according to a separate earnings release (pdf). Adnoc Drilling also credited initial contributions from its newly formed JVs, Turnwell and Enersol, as driving growth in 3Q.

On a 9M basis: Adnoc Drilling’s bottom line grew 29% y-o-y to USD 904.5 mn in 9M 2024. The company posted USD 2.9 bn in revenues for the period, up 28% y-o-y.

Looking ahead: The company expects to expand its rig count to 142 by the end of the year, with two new jack-up rigs set to join its fleet in 4Q, the company said.

e&-

Emirates Telecommunications Group’s (e&) net income fell 5.3% y-o-y to AED 3.1 bn in 3Q 2024, according to its financials (pdf). The company’s revenue increased by 7.7% y-o-y to AED 14.4 bn in this quarter, on the back of solid performance across both the digital and telecom verticals, according to its earnings release (pdf).

On a 9M basis, e&’s net income attributable to owners grew 10% y-o-y to AED 8.5 bn, while revenues increased by 6.8% y-o-y to AED 42.7 bn. This nine-month performance was attributed to an expansion of operations both domestically and abroad, CEO Hatem Dowidar said.

ICYMI- e& completed its acquisition of a controlling stake (50% +1 economic share) in PPF Telecom Group last week, expanding operations into Central and Eastern Europe.

ADIB-

Abu Dhabi Islamic Bank’s (ADIB) net income after tax rose 12.7% y-o-y to AED 1.6 bn in 3Q 2024, according to the lender’s financial statements (pdf). The bank booked AED 2.6 bn in revenues during the quarter, up 9% y-o-y.

On a nine-month basis, ADIB’s net income rose 23.6% y-o-y to AED 4.6 bn, thanks to “strong balance sheet growth coupled with increased business momentum and diversified revenue growth,” according to its earnings release (pdf). The bank’s revenues grew 19% y-o-y to AED 8 bn, driven by growth in income from financing activities and non-funding income, as well as strong performance in fee-based businesses.

Assets and deposits: The bank saw its assets grow 21% y-o-y to AED 223 bn by the end of September, while customer deposits increased 19% y-o-y to AED 180 bn at the end of the nine-month period.

DUBAI AEROSPACE ENTERPRISE-

Dubai Aerospace Enterprise (DAE) saw its net income rise 54.9% y-o-y to USD 310.8 mn in 9M 2024, according to its financials (pdf). The company’s revenues grew 2.8% y-o-y to USD 1 bn during the same period.

ICYMI-DAE saw its net income grow 12.8% y-o-y to USD 81 mn in 2Q 2024, while revenues dropped 2.7% y-o-y to USD 331.1 mn. DAE’s income rose 5.5% y-o-y to USD 148.8 mn in 1H 2024. The company saw its revenues edge up 1.9% y-o-y to USD 662.4 mn during the first six months of 2024.

HSBC-

UAE-based HSBC Middle East’s pre-tax net income declined by 5.4% y-o-y to USD 331 mn in 3Q 2024, according to the bank’s financials (pdf). The financial institution’s net operating income declined by 1.9% y-o-y to USD 626 mn, while net interest income increased marginally to USD 400 mn. Meanwhile, HSBC’s global performance witnessed a 10.4% y-o-y increase in pre-tax net income to USD 8.5 bn in 3Q 2024.

On a 9M basis: The lender’s pre-tax net income declined by 15.2% y-o-y to USD 867 mn, while net operating income increased by 2.5% y-o-y to USD 1.9 bn. The financial institution’s net interest income increased by 3.6% y-o-y to USD 1.2 bn.

STANDARD CHARTERED-

Standard Chartered logged USD 98 mn in net income before tax from its UAE operations in 3Q 2024, down 5.7% y-o-y, according to its financial statements (pdf). Meanwhile, the lender saw its operating income rise 5.2% y-o-y to USD 201 mn during the quarter.

Standard Chartered’s total assets in the UAE totaled USD 21 bn by the end of the quarter, remaining relatively flat y-o-y.

ADIB taps new CEO + M42 taps CEO for Omics Center. Plus: More from Osso, ADGM

Abu Dhabi Islamic Bank (ADIB) formally tapped Mohamed Abdelbary (LinkedIn) as its new CEO, according to an ADX disclosure (pdf), Abdelbary has been serving as the bank’s acting CEO since March, stepping in after the resignation of former CEO Nasser Alawadhi. Prior to joining ADIB, he served as Standard Chartered Bank's regional CFO for Africa and the Middle East.

State-owned health tech firm M42 appointed Paul Jones (LinkedIn) as CEO of its Omics Center of Excellence, according to a statement. Jones has over 30 years of experience in life sciences, including previous roles at Illumina, Genomic Enterprises, and Vortex Biosciences. In his new position, Jones will lead large-scale genomics initiatives, including the Emirati Genome Program, and collaborate with local healthcare providers to tailor solutions for the UAE and broader regions.

About the M42 center: The Omics Center of Excellence is the region’s largest omics facility. It aims to advance global healthcare by focusing on disease prevention, early detection, treatment optimization, and monitoring.

UK fluid temperature control and separation solutions provider Osso appointed Daniel Burbridge (LinkedIn) as its Middle East general manager ahead of launching a Middle East arm based in Abu Dhabi as part of its global expansion strategy, according to a press release. Burbridge boasts 11 years of experience at Osso, serving in various roles, most recently acting as service manager for the MENA region.

The Abu Dhabi Global Market (ADGM) Courts appointed Sir Nicholas Patten as a Judge of the Court of Appeal, effective 3 October, according to a press release (pdf). This comes in light of Sir Peter Blanchard's retirement. Patten began his legal career at Lincoln’s Inn in 1974 and became Queen’s Counsel in 1988.

A1rwater taps new leadership for Americas expansion: Abu Dhabi-headquartered air-to-water company A1rwater is expanding its Americas team with two key hires, according to a press release. Pete Carr (LinkedIn) was appointed as CEOof A1rwater - Americas, and Ryan Bibbo (LinkedIn) joined as COO.

Background: Pete Carr has been part of A1rwater’s board and has experience with beverage brands, including Bacardi, Southern Glazer’s Wine & Spirits, and Diageo, where he most recently served as global growth officer. Bibbo brings over 25 years of expertise in human capital and operational leadership, previously serving as global vice president of HR at Bacardi and overseeing HR operations at Southern Glazer’s Wine & Spirits and Diageo.

DP World and Egypt ink MoU to develop freezone in Egypt

LOGISTICS-

#1- DP World to build Egypt’s new freezone? Dubai port operator DP World signed an MoU with Egypt’s Administrative Capital for Urban Development (ACUD) and the General Authority for Investment and Freezones to mull the establishment of a new public freezone in Egypt’s new capital, according to a statement. Technical and economic studies will be conducted before signing the final agreements.

What we know: The freezone is set to serve companies operating in the manufacturing, trade, and logistics sectors, with a focus on electronics, vehicles, and clothing.

#2- AD Ports to help Somalia upgrade its fish port infrastructure: AD Ports Group inked an MoU with the Somali Fisheries and Blue Economy Ministry to mull potential collaboration on upgrading Somalia’s fish ports and processing plants, and establishing a maritime monitoring center and a technical vocational training school, according to a press release.

DEBT-

Fitch upgrades Fertiglobe’s ratings by one notch following Adnoc’s acquisition: Fitch Ratings upgraded Fertiglobe’s long-term issuer default rating and senior unsecured rating to BBB from BBB- with a stable outlook, it said in a statement. The upgrade comes in the wake of Adnoc’s USD 3.62 bn acquisition of a 50%+1 stake in the Dutch ammonia producer, which Fitch said will be strategic for Adnoc’s diversification and decarbonization plans due to the growing market for ammonia as a fuel and hydrogen carrier.

ALSO- Fitch removed Fertiglobe from Rating Watch Positive, under which it was placed in February due to the then-pending Adnoc’s acquisition. “We view [Adnoc] as stronger than Fertiglobe based on our assessment of strong linkage between [Adnoc] and its sole shareholder, Abu Dhabi (AA/Stable),” Fitch said.

REAL ESTATE-

#1- AGI Palace Group taps a US designer for its debut project: AGI Palace Group, a real estate JV between Abu Ghazaleh Investments (AGI) and Palace Group, tapped US-based architecture firm Kohn Pedersen Fox to be the lead designer for its USD 1 bn debut project The Cliffs, according to a press release. Located on the southern side of the Dubai Water Canal, The Cliffs will feature luxury residences.

#2- Binghatti Developers launched AED 5 bn Binghatti Skyrise in Dubai's Business Bay area, according to local media reports (here and here). The project is part of Binghatti's strategy to double its portfolio to over USD 27.2 bn (AED 100 bn) over the next 18 months.

#3- Expo City appoints Ginco for Expo Valley project: Expo City Dubai tapped Ginco General Contracting to be the main contractor for the Expo Valley residential project, according to the Dubai Media office. The development will include 484 residential units. Residents are expected to move in 2026.

RETAIL-

Dubai-grown gym wear brand Squatwolf opened its first brick-and-mortar store in Dubai Mall, according to a press release (pdf). The company plans to launch more stores by the end of 2025 as it eyes expansion across the UAE and GCC region.

About Squatwolf: Squatwolf has expanded its sales to over 120 countries since its launch in 2016. The brand has raised USD 30 mn from ASCA Capital to support its growth and product offerings along with a USD 2.3 mn investment from Disrupt.

INFRASTRUCTURE-

UAE, Egypt explore water cooperation: Emirati Ambassador to Cairo Maryam Khalifa met with Egypt’s Water Minister Hani Sewilam to discuss bilateral cooperation and explore potential investments in water management, according to a statement from the Egyptian Water Ministry. The two sides also discussed knowledge-sharing in modern irrigation techniques and solar-powered desalination for intensive food production, as both countries face similar water scarcity challenges.

AVIATION-

Dubai South getting another MRO facility: Dubai’s aerospace platform Mohammed Bin Rashid Aerospace Hub (MBRAH) inked an agreement with France-based aerospace and transport firm Liebherr-Aerospace to establish a new maintenance, repair, and overhaul (MRO) facility in Dubai South, according to statement.The MRO facility will be built at MBRAH’s Aerospace supply chain hub over 2.4k sqm and is slated to be completed by the end of next year. The investment ticket has not been disclosed.

TECH-

Indian Web3 developer String Metaverse secured three licenses in the UAE, namely an AI License, a Blockchain Node Operator License, and a DEpin License from Ras Al Khaimah Digital Assets Oasis, Siliconindia reports.

About String: String Metaverse develops integrated Web3 solutions that combine AI, blockchain, and gaming technologies, with a focus on practical applications for digital commerce and regulatory compliance. The company also introduced an Agentic Economy framework that enables AI agents to autonomously conduct cryptocurrency transactions and execute smart contracts.

CAPITAL MARKETS-

NMDC Energy joined ADX’s new Shariah-compliant index, FADXI15, alongside 14 other listed companies, Wam reports. Launched in partnership with FTSE Russell, the index will enable new ADX entrant NMDC Energy to access “a wider investor base,” CEO Ahmed Salem Al Dhaheri said.

Remember- ADX and FTSE Russell launched the FTSE ADX 15 Islamic Index on Tuesday. The latest addition to the FTSE ADX Index Series provides Islamic finance investors with access to the top 15 ADX-listed, Shariah-compliant companies, screened by IdealRatings. NMDC Energy debuted on ADX in September, raising AED 3.22 bn and receiving over AED 88 bn in orders from investors.

TRADE-

#1- Dubai-based NGO World Governments Summit partnered with the International Chamber of Commerce (ICC) to support global business, economy, and trade, Wam reports. The partnership will see the ICC leverage its network of over 45 mn companies across 170 countries to drive international cooperation. No further details were provided about the agreement.

#2- Dubai Chambers also partnered with ICC to promote trade digitalization and improve financing access for SMEs, according to a statement. This partnership includes the development of a benchmarking tool to assist ICC’s global member chambers, along with joint efforts in dispute resolution, sustainability, and the digital economy.

BUSINESS-

Adani Group’s airport management arm Adani Airport has set up another UAE-based subsidiary, this time based in Dubai and dubbed Celeritas International, with an investment of AED 100k, according to a bourse filing (pdf). The new firm has been registered at Jebel Ali freezone, with Adani Airport holding a majority 74% stake.

REMEMBER- Last August, Adani Airport established Global Airports Operator, a wholly-owned subsidiary in Abu Dhabi to oversee investments and operations outside of India.

AI-

MBZUAI releases Hindi LLM: The Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) launched Nanda, an open-source Hindi large language model (LLM), developed in collaboration with state-owned AI firm G42, Wam reports. This release follows G42’s initial unveiling of the LLM last September.

BANKING-

FAB, Gilded launch gold investment product: FAB Private Banking has partnered with fintech firm Gilded to allow UAE clients to directly invest in institutional-grade physical gold via Gilded’s digital platform, according to a press release. The new service will enable investors to directly own the Swiss-sourced gold bars, unlike ETFs where the investments are pooled. The offered gold bars are Shariah-compliant and each transaction is recorded on a distributed ledger to ensure permanent ownership, with the gold stored in vaults in the UAE.

MANUFACTURING-

UK-based optical fiber and microducts manufacturer Emtelle opened a USD 50 mn innovation and manufacturing facility in Khalifa Economic Zones Abu Dhabi, according to a press release. The facility will produce passive telecommunications network solutions, including microduct tube bundles and pre-connectorized fiber solutions.

HEALTHCARE-

The Dubai Health Authority launched Hasana, a digital platform for tracking and management of vaccine stocks and doses across the emirate, Wam reports. Hasana also maintains and updates individual health records for patients.

Google reports bumper 3Q earnings as cloud services soar

Google parent company Alphabet’s 3Q 2024 results far exceeded analyst forecasts, with net income up 34% to USD 26.3 bn and revenue increasing 15% y-o-y to USD 88.27 bn, according to the company’s earnings release (pdf). Earnings per share increased 37% at USD 2.12.

Driving the boost: The better-than-expected results suggest that the tech giant’s expensive investments in AI are “paying off with consumers and partners benefiting from our AI tools,” CEO Sundar Pichai said in the release. This return on investment is particularly evident in the company’s 35% growth in cloud service sales to USD 11.4 bn and a ramp up in the numbers of users landing at the company’s market-leading search engine, Bloomberg says. Investors had earlier raised concerns that Google was losing ground on AI to rivals Microsoft and OpenAI and that massive investments to close the gap may fail to bear fruit.

But the DoJ may ruin the party, yet: The US Department of Justice (DoJ) said in a 32-page court filing earlier this month that it was weighing measures that could see Google forced to spin off key divisions, share data, and open access to some platforms following a landmark court decision in August which ruled that the company was in violation of US antitrust laws. The tech behemoth is also facing legal challenges over its ads business. Alphabet CEO Sundar Pichai was critical of the DoJ’s legal campaign, warning on a conference call with investors that the measures could have “unintended consequences” for US leadership in the tech sphere, Bloomberg said.

MARKETS THIS MORNING-

Most Asian markets are in the red ahead of Bank of Japan’s interest rate decision later today, with only mainland China’s Shanghai Index up in trading. Over on Wall Street, futures are also slipping after Microsoft and Meta reported their earnings, dragging down their share prices in after hours trading.

ADX	9,328	+0.2% (YTD: -2.6%)
DFM	4,605	+0.5% (YTD: +13.4%)
Nasdaq Dubai UAE20	3,834	-0.1% (YTD: -0.2%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.8% o/n	4.4% 1 yr
TASI	12,019	-0.4% (YTD: +0.4%)
EGX30	30,371	-0.8% (YTD: +22.0%)
S&P 500	5,814	-0.3% (YTD: +21.9%)
FTSE 100	8,160	-0.7% (YTD: +5.5%)
Euro Stoxx 50	4,886	-1.3% (YTD: +8.1%)
Brent crude	USD 73.05	+2.7%
Natural gas (Nymex)	USD 2.85	-0.5%
Gold	USD 2,801	+0.7%
BTC	USD 72,515	+0.2% (YTD: +72.2%)

THE CLOSING BELL-

The ADX rose 0.2% yesterday on turnover of AED 1.3 bn. The index is down 2.6% YTD.

In the green: Gulf Pharmaceutical Industries (+14.7%), Al Khaleej Investment (+12.5%) and Gulf Cement Company (+10.4%).

In the red: Response Plus Holding (-2.3%), Alpha Dhabi Holding (-1.7%) and First Abu Dhabi Bank (-1.2%).

Over on the DFM, the index also rose 0.5% on turnover of AED 566.9 mn. Meanwhile, Nasdaq Dubai closed down 0.1%.

CALENDAR

OCTOBER

29-31 October (Tuesday-Thursday): Sharjah International Conference in Biotechnology (SICBiotech), University of Sharjah.

29-31 October (Tuesday-Thursday): Healthcare Future Summit, Dubai World Trade Center.

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

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

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

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.

6-17 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.

10-12 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.

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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