Astra Tech secures biggest asset-backed securitization funding for a fintech in the UAE

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Amman Stock Exchange joins Tabadul + UAE-Mercosur trade agreement in 2025?

Good morning, lovely people. We have a very fintech-heavy issue for you this morning, with ADFW’s fintech, blockchain, and AI conferences bringing us the UAE’s biggest asset-backed securitization for a fintech firm, tons more firms expanding to Abu Dhabi, and a lot more.

WEATHER- Expect a high of 29°C in Dubai and an overnight low of 19°C. In Abu Dhabi, the mercury will rise to 25°C before cooling to 20°C.

WATCH THIS SPACE-

#1- Amman Stock Exchange to join ADX’s Tabadul: The Abu Dhabi Securities Exchange (ADX) signed an agreement to add the Amman Stock Exchange (ASE) and the Jordan Securities Depositary Center (SDC) to ADX’s cross-market trading platform, Tabadul, according to a filing (pdf). The move will allow investors to access and directly trade on both bourses through Tabadul.

ASE joins seven current Tabadul members ADX, including the Armenia Securities Exchange, Bahrain Bourse, Muscat Securities Market, Astana International Exchange, Kazakhstan Stock Exchange, and the ADX.

#2- Talabat’s shares are set to join the FTSE All-World Index, Global Large Cap Index, Emerging Index on 23 December, according to a statement (pdf).

ICYMI- Delivery Hero’s Middle East unit Talabat raised over USD 2 bn from its share sale earlier this month, marking the largest tech IPO this year. The firm had a rough start on the DFM, with shares falling 6.9 % on its first day of trading.

#3- UAE-Mercosur trade agreement in 2025? Discussions for an economic partnership agreement between the UAE and Mercosur — the South American trade bloc comprising Brazil, Argentina, Uruguay, and Paraguay — are “progressing rapidly and should be concluded by 2025,” Brazil-Arab News Agency quotes Brazil’s President Luiz Inácio Lula da Silva as saying during a summit last week.

REMEMBER- International Cooperation Minister Reem bint Ebrahim Al Hashimy visited Uruguay in July to review the progress of the negotiations for the agreement, following the completion of the first negotiation round at the start of the month. The latest round of negotiations was held in Uruguay’s capital, Montevideo last month.

#4- Adnoc’s Covestro takeover gets greenlight from Indian competition watchdog: Adnoc’s USD 16.3 bn offer for German chemicals company Covestro received approval from the Competition Commission of India, where Covestro operates through its subsidiary Covestro India, according to a statement (pdf).

REMEMBER-Adnoc’s acquisition has surpassed the minimum shareholder acceptance threshold, reaching around 70% as of 27 November. The initial acceptance period ended in November, with an additional acceptance period running until 16 December. The takeover marks the largest acquisition by a Middle Eastern buyer in Europe in 16 years. After over a year of negotiations, Covestro’s management approved the offer last month, with the acquisition expected to close in 2H 2025.

#6- DFM-listed GulfNav’s acquisition of companies and assets owned by Brooge Energy has been valued at AED 3.24 bn, Al Khaleej reports, adding that the maritime player will discuss the acquisition in a general assembly meeting on 2 January, 2025. The acquisition will see GulfNav issue AED 2.3 bn in mandatory convertible bonds for Brooge.

Background: Gulfnav is currently in the final stages of the acquisition of Brooge Petroleum and Gas Investment from Brooge Energy, with plans to close the acquisition by 1Q 2025. GulfNav had previously provided the Securities and Commodities Authority with the required documents for the transaction in October. The acquisition has been in the works for more than a year, with an initial proposal submitted in October 2023, and board approval coming in September. The transaction, if it goes ahead, will be a share swap, with GulfNav’s board having approved an AED 448.5 mn capital increase — equivalent to the value of the shares that will be issued to Brooge.

#7- Mubadala Investment Company and private equity investor AlpInvest Partners launched a credit co-investment partnership to provide senior fund financing globally, Wam reports. The agreement marks Mubadala’s expansion into senior loans within the private debt segment. The two investors already completed their first investment under the partnership, though no details were disclosed.

Background: This is the latest in a series of moves from Mubadala to push further into private credit investments, with the sovereign wealth fund recently acquiring a 42% stake in Los Angeles-based credit investment firm Silver Rock Financial, as well as extending its multi-bn-USD partnership with US-based Apollo Management, focusing on private debt and equity financing.

#8- The UAE Cabinet will establish the Emirates Entrepreneurship Council along with a AED 300 mn fund to support youth projects, creating an incentive for young people to pursue entrepreneurship at a cabinet meeting led by Prime Minister Sheikh Mohammed bin Rashid Al Maktoum, Wam reports.

#9- Adia-backed Indian fintech MobiKwik’s INR 5.7 bn IPO saw its order books covered in less than one hour, with the retail portion being 26.8x oversubscribed and the non-institutional portion 9x oversubscribed, Reuters reports. The price range set by the company — INR 265-279 — gives the company a valuation of some USD 256 mn. The shares will be listed on the Bombay Stock Exchange and the National Stock Exchange of India on 18 December.

DATA POINTS-

#1- The trading volume of cryptocurrencies in the UAE currently amounts to over USD 50 bn, Abdulla Al Dhaheri, CEO of the Blockchain Center in Abu Dhabi, was quoted as saying at the Bitcoin Mena conference by Wam.

#2- The UAE’s healthcare ecosystem is projected to reach USD 50 bn by 2029, up from an estimated USD 34 bn for 2024, Praxis Global Alliance forecast in a recent report (pdf). The Indian management advisory penciled in a compound annual growth rate (CAGR) of 8% for the sector between 2024 and 2029.

The rationale: Key drivers of the anticipated growth include improved life expectancy, the prevalence of non-communicable diseases, expansion of medical tourism, rising private healthcare spending, and a strong pipeline of PPP projects.

#3- Dubai’s real estate sector logged 31.9% in annual capital gains for villas and 23.9% for apartments in November, according to ValuStrat’s Price Index report (pdf). The top annual performing areas for villas included Palm Jumeirah, Jumeirah Islands, and Emirates Hills, and Dubai Hills Estate. Meanwhile, top performers for apartments included The Greens, Palm Jumeirah, Discovery Gardens, and The Views.

The emirate’s prime real estate market saw 24 transactions for properties worth over AED 30 mn in November.

HAPPENING TODAY-

#1- The IDRA World Congress 2024 wraps up today 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- Automechanika Dubai is on its final day 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.

#3- The MEBAA Show 2024 is on its final day at the Dubai World Central, Dubai Airshow Site. The business aviation event will feature more than 145 exhibitors from around the globe, with over 65 first-time participants.

#4- The European Arab Medical Congress is on its second day at the headquarters of Zayed Higher Organisation for People of Determination in Abu Dhabi, with the event wrapping tomorrow. 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.

#5- The Middle East Investor Relations Association Conference is on its second and final day 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.

THE BIG STORY ABROAD-

It’s a mixed bag in the global press this morning, with developments in Syria taking a backseat — for now at least — and a lack of any major business stories to take note of.

News of FBI Director Christopher Wray’s decision to step down from office is ranking high in the often US-centric global papers. The move to step down prematurely came not two weeks after the president-elect said he would fire Wray over the bureau searching his Florida home for classified documents in 2022 and replace him with Trump loyalist Kash Patel to lead the bureau — marking the second director of the bureau to be pushed out by Trump. (Financial Times | Wall Street Journal | Reuters | Associated Press | New York Times | Guardian)

The fallout from South Korean President Yoon Suk Yeol's short-lived declaration of martial law is continuing to receive ink, with the police’s attempt yesterday to search his office as part of a mounting criminal investigation against the head of the country for charges of insurrection. (Reuters)

While in our part of the world, Saudi Arabia is set to host the 2034 men’s FIFA World Cup, marking the return of one of the biggest sporting events into the region in less than a decade. (Bloomberg | Reuters | AP)

OIL WATCH-

Opec slashed this year’s oil demand growth forecast by 210k bbl / d to 1.6 mn bbl / d, after accounting for “recently received bearish data for 3Q 24” in its latest outlook report (pdf). The cuts mark the deepest reduction seen so far to the yearly outlook. The group has cut expectations for 2024 by 27% since July as it “belatedly recognizes the deteriorating market picture,” Bloomberg explained. Opec now sees global oil consumption averaging 103.8 mn bbl / d this year, while also trimming next year’s growth estimate by 90k bbl / d to 1.4 mn bbl / d.

The cartel’s growth forecasts for this year remain substantially higher than those of other analysts, standing at double the numbers cited by Morgan Stanley and Goldman Sachs while also exceeding the International Energy Agency and Saudi Aramco’s estimates.

ALSO- Opec reappointed Kuwaiti oil chief Haitham Al Ghais as its sec-gen for a second three-year term continuing until 2028, according to a statement. Al Ghais has led Opec since mid-2022.

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CIRCLE YOUR CALENDAR-

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.

Masdar, Adia eyes taking Renew Energy private

Renew Energy shareholders offer buyout to take company private: A consortium of shareholders of Indian clean energy firm Renew Energy Global — including Masdar, Platinum Hawk (Adia), the Canada Pension Plan Investment Board, and founder Sumant Sinha — have submitted a bid to take the company private, according to a statement. The shareholders collectively own 64% of the Nasdaq-listed company.

The offer: The group is offering to purchase Renew Energy at USD 7.07 per share, representing an 11.5% premium to the stock's last close. The offer values the company at USD 2.82 bn, and would see Japan’s top utility JERA, which owned 11.7% of Class A shares in the company, exit the firm, Reuters reports, though it’s not clear if it still has the same size stake in the firm.

The company’s stock hasn’t had a good year, falling 18% since the start of the year, and 36% since it went public in February 2021.

The rationale: The proposal comes on the back of “Masdar's positive assessment of the strength of India’s renewable sector” and would provide “capital investment to support the country’s energy transition,” Reuters quotes Masdar as saying in a statement.

What’s next? An independent special committee will review the bid, with Rothschild & Co acting as financial advisor and Linklaters as legal counsel.

About the company: Renew is a leading renewable energy player in India, managing a clean energy portfolio of 10.3 GW, according to Reuters.

Astra Tech’s Quantix secures USD 500 mn funding from Citi

Quantix bags USD 500 mn in funding from Citi: Citigroup has extended USD 500 mn in asset-backed securitization financing to Dubai-based fintech firm Quantix Technology Projects, a subsidiary of Abu Dhabi's Astra Tech, the company said at a press conference yesterday during Abu Dhabi Finance Week and in a LinkedIn post. This marks one of the largest financing agreements ever secured by a UAE-based fintech company.

About Quantix: Quantix, Astra Tech’s consumer lending platform, provides microfinancing and retail financing services, including personal loans, short-term credit, vehicle loans, BNPL, rent now, pay later (RNPL), and send now, pay later (SNPL). The company became the first UAE-based fintech since 2008 to receive a finance company license from the Central Bank of the UAE in July.

WATCH THIS SPACE- The funds will be used to fuel Astra Tech's development of a “super app” integrating services such as digital payments and instant messaging.

REMEMBER- Astra Tech acquired the Gulf region’s most popular voice-calling app Botim in January 2023 as part of its super app strategy. Astra Tech has since upgraded its Botim brand this year to offer several fintech solutions, diversifying into a superapp, including launching Botim Payroll Solution, which it billed as the UAE’s first fully digital payroll and wallet solution for SMEs; introducing a send now and pay later remittance service ; and integrating National Bonds investment services into its app.

Not the first time Astra Tech lands USD 500 mn in funding: UAE AI outfit G42 led a USD 500 mn funding round for Astra Tech in 2022. Last month, G42 acquired Astra Tech founder Abdallah Abu Sheikh’s entire stake in Astra Tech, with Abu Sheikh stepping down as Astra Tech’s CEO.

ADFW sees more digital asset players expand into ADGM

The influx of investment firms expanding into ADGM is still ongoing during ADFW, with day three seeing more digital asset firms announcing plans to set up shop in the financial center.

ADGM’S NEWCOMERS-

#1- Blockchain firm Aptos Foundation expanded into ADGM, with plans to use the office as a base for expanding its operations across the region and establishing strategic partnerships, Chainwire reports.

#2- Transatlantic mid-market buyout firm OpenGate Capital Management (OGC) is also setting up shop in ADGM, after Abu Dhabi Catalyst Partners (ADCP), a JV between Mubadala Capital and investment firm Alpha Wave Global, invested an undisclosed amount in the final closing of its private equity fund, which targets lower to mid-market industrial businesses in the US and Western Europe, a press release reads. The fund’s strategy targets operational improvements, including streamlining production processes, divesting non-core assets, and pursuing international bolt-on acquisitions.

#3- Zodia Markets gets the greenlight to operate in ADGM: Asset broker Zodia Markets was granted permission by the Financial Services Regulatory Authority to operate as a regulated virtual asset brokerage in ADGM, according to an ADGM statement. The new branch will offer digital asset solutions across the country and the region.

#4- Investment firm Marcuard Heritage secured a 3C asset manager licence from the Financial Services Regulatory Authority, according to an ADGM statement. The new office will provide services in wealth planning and investment solutions, planning to expand its team by recruiting relationship managers from the Mena region.

#5- Digital asset trader and lender VersiFi received an in-principle approval (IPA) from the Financial Services Regulatory Authority to expand into ADGM, according to an ADGM statement. The firm is currently working to address the IPA conditions to obtain final regulatory approval.

These latest firms join many others planning to set up shop in the financial center, with at least five pledging to expand operations there this week alone.

UAE consumers maintain their elite preferences in 3Q 2024 - NielsenIQ

It’s quality over bargains for UAE consumers in 3Q: UAE consumers displayed a preference for high quality products over cheap ones, with 72% of shoppers in 3Q 2024 stating that they are willing to pay more for quality products and actively seeking promotions for their preferred brands, according to a report from consumer intelligence company NielsenIQ. The preferences are consistent with data from 1H 2024 which signaled a preference among consumers in the country for superior products and convenience over pricing.

FMCG market shows polarization: The fast-moving consumer goods market recorded a 4.1% growth in value and 2.8% growth in volume in the 3Q moving annual total, with frozen food and dairy standing out as growth leaders. The country’s market showed polarization between affordable brands, which grew by 15%, and premium brands, which achieved 20% growth in this quarter. Traditional trade in the UAE surpassed modern trade with a 6.4% growth rate during this period. Meanwhile, e-commerce continued its robust double-digit growth, particularly in non-food categories.

The tech and durables sector achieved 2.8% growth in 3Q 2024 due to solid performance in media tablets, smartwatches, and home appliances. This market produces 45k active products and 19k new product launches annually, with the telecom sector leading growth and contributing significantly to total revenues. Premium products dominate sales, though value players are increasingly gaining market share.

Price reductions and promotions are rising: The country experienced a four percentage point increase in temporary price reductions in this quarter compared to last year, along with slightly improved promotion efficiency rates.

Beam Foundation sets up UAE’s first gaming fund in ADGM

Abu Dhabi is getting a USD 150 mn gaming fund: Beam Foundation launched Beam Ventures, the UAE’s first gaming-focused venture fund and accelerator, headquartered at the ADGM, according to a press release. The Abu Dhabi-based fund has a total investment size of USD 150 mn.

About the fund: The USD 150 mn fund will focus on innovations in blockchain, gaming, and AI. The firm plans to roll out an accelerator program for web3 gaming and AI startups, offering both in-person and remote participation options.

Hub71 launches Angel Investor Support Package

INVESTMENT-

Abu Dhabi’s tech startup ecosystem Hub71 launched the Angel Investor Support Package to promote the growth of angel networks and facilitate the establishment of legal investment structures for angel investors, according to a press release. The package includes a financial incentive of AED 150k aimed at encouraging investments in early-stage startups registered at Hub71.

The details: Key features of the Angel Investor Support Package include two years of office space, discounted licensing and setup fees for creating special purpose vehicles in the ADGM, and access to centralized back-office support services such as legal and audit assistance. Additionally, Hub71 will set up digital infrastructure that allows investors to vote on startup projects and manage their portfolios effectively.

Four angel networks have already joined the initiative including Falcon Valley, which targets early-stage disruptive ventures; UAE Angels Capital Investment, which specializes in high-growth seed and early-stage startups; Qora71, dedicated to mentoring startups; and the Emirates Angels Investors Association, which has invested in notable startups like Takalam and Mindtales.

FINTECH-

MNT-Halan enters the UAE market with Halan Advance launch: Egyptian fintech leader MNT-Halan has expanded into the UAE with the rollout of its early salary access service, Halan Advance, targeting the Emirates’ over 3.7 mn underbanked expatriate community, the fintech unicorn said in a statement (pdf). MNT-Halan has a target of building its customer base in the country to 250k by the end of next year.

What they said: “The GCC is a powerful hub for financial innovation, and launching in the UAE marks a significant step in our regional expansion,” MNT-Halan CEO Mounir Nakhla said.

DEVELOPMENT FINANCE-

Abu Dhabi Fund for Development loans AED 92 mn to Rwanda: The Abu Dhabi Fund for Development finalized a loan agreement worth AED 92 mn with Rwanda’s government to enhance water systems at the Karenge Water Treatment Plant, Wam reports. The funding will support efforts to expand the plant’s capacity to 36k cubic meters, addressing the country’s growing water needs.

HEALTHCARE-

Maldivian patients to access healthcare at Burjeel Holdings' flagship facility: ADX-listed Burjeel Holdings partnered with Aasandha Company, the state-owned entity running the Maldives' government health ins. scheme, to provide Maldivian patients with advanced medical treatments at Burjeel Medical City in Abu Dhabi, according to a press release (pdf). Maldivian patients covered by the National Social Health Insurance Scheme will now be able to access services such as multi-organ transplants, advanced oncology, orthopedics, and cardiology at the facility.

AVIATION-

#1- Aircraft management firm Comlux opened a service and maintenance center at Dubai’s Al Maktoum International Airport in partnership with Mohammed Bin Rashid Aerospace Hub, which will also double as a regional headquarters for the Swiss company, according to a press release. The 20k sq m facility will offer light maintenance, hangarage, AOG services, cabin detailing, and aircraft cleaning services.

#2- ExecuJet to offer aircraft livery services at Al Maktoum Airport: ExecuJet MRO Services, Dassault Aviation’s aircraft maintenance arm, is set to begin offering aircraft paint and livery services at Dubai’s Al Maktoum International Airport, according to a press release. The new facility, being built by Satys Aerospace, is expected to begin operations in 1Q 2025. The services will cater to the business, commercial, and VVIP aviation sectors. The facility will have the capacity to paint up to 35 aircraft annually and can accommodate business jets, Boeing BBJ, Airbus ACJ, and commercial aircraft up to the size of Boeing 737-10 Max and Airbus A321XL.

#3- RoyalJet set to add up to nine Airbus ACJ320neo aircraft to its fleet: Abu Dhabi-based private charter airline RoyalJet signed an MoU with Airbus Corporate Jets (ACJ) to purchase at least three ACJ320neo aircraft, according to a press release. The airline could purchase six more of the same aircraft under a purchase right clause in the agreement.

#4- Skyports-commissioned GHD designed the UAE’s first dedicated vertiport at Dubai International Airport as part of Dubai’s aerial taxi network, set to launch by 2026, according to a press release. The vertiport features two eVTOL landing pads and charging stations, in addition to accommodation facilities and a multideck carpark for passengers.

REMEMBER- Plans are underway to launch flying taxis in Dubai as soon as next year: Dubai's Road and Transport Authority inked an agreement in February with electric aircraft developer Joby Aviation to launch air taxi services in the UAE by early 2026. The first of four vertiports in Dubai will kick off operations in 1Q 2026.

BANKING-

#1- Al Maryah Community Bank (Mbank) partnered with AE Coin to allow its customers to make transactions using the UAE’s first stablecoin through Mbank-powered AEC wallets, according to a press release. The digital wallet facilitates everyday transactions, including money transfers, paying merchants, and converting AE Coin to AED.

REMEMBER- AE Coin is the UAE’s first AED-pegged stablecoin approved by the Central Bank of the UAE. This came after the Financial Services Regulatory Authority issued a regulatory framework for the issuance of stablecoins in the ADGM.

#2- Standard Chartered aims to expand its UAE private banking team by 20%, hiring seven new bankers so far as part of the move, the lender said in a statement picked up by Reuters and Bloomberg. The hiring spree is part of the bank’s strategy to double its investments in wealth management over the next five years.

SUSTAINABILITY-

An AED 86 mn water reservoir in Dubai’s Hatta went online, boasting a capacity for 30 mn imperial gallons of desalinated water, the Dubai Electricity and Water Authority said in a statement. With two new reservoirs launched in Lusaily and Enkhali and another 120 mn gallon-one being built in Hassyan, the authority targets to boost Dubai’s storage capacity to 1.1 bn gallons of desalinated water by 1Q 2025.

PAYMENTS-

Abu Dhabi Investment Office (Adio) partnered with Mastercard to launch the Digital Partnership Program in Abu Dhabi to digitize government services in the emirate through the use of fintech solutions, according to a press release. The program will also offer support to SMEs and fintech companies through Abu Dhabi's tech ecosystem Hub71. It also targets to facilitate pension payments by offering prepaid cards to the unbanked.

ALSO- The agreement will see Adio collaborating with Mastercard's Advanced AI Center of Excellence to develop AI and blockchain products aimed at high-growth sectors, such as gaming.

ENERGY-

Brazilian electric motors manufacturer Weg will supply Adnoc with technical equipment for its USD 3 bn oil pipeline, Trade Arabia reports. Weg will provide Adnoc with a comprehensive drive package by September 2025 — including flameproof electric motors, variable speed drives, and transformers — to ensure the optimal operation of horizontal centrifugal pumps critical to the infrastructure. The 300 km-pipeline will transport crude oil from Jebel Dhanna in Abu Dhabi to the Fujairah oil terminal, with a capacity of 1.5 mn bbl / d.

TRANSPORT-

EV manufacturer Switch Mobility will begin pilot runs of its electric buses in the UAE and Saudi Arabia by the summer of 2025, with plans for a full commercial rollout in the GCC by 4Q 2025, according to a press release.

STARTUPS-

Web3 communication network Dechat raised USD 1 mn in a funding round led by Mindspace, Wamda reports. The funds will fuel the company’s growth, develop its technology infrastructure, and expand its user base. It will also use this money to drive new initiatives and enhance its R&D activities to develop innovative solutions.

LOGISTICS-

Abu Dhabi Airport started construction on the East Midfield cargo terminal (EMCT) at Zayed International Airport (AUH), a 90K sqm facility designed to handle 1.5 mn tonnes of cargo annually, according to a statement. While no investment details or timeline were provided, the EMCT is part of ongoing infrastructure upgrades, following a strong performance in 1H 2024 with a 33.5% increase in passengers at AUH.

The details:The EMCT will integrate with the Abu Dhabi Airports Freezone (ADAFZ) — specifically at Al Falah district — offering a full range of services such as consolidation, warehousing, distribution, and re-export.

A US trade war could force the ECB to bring rates back down to emergency levels

The European Central Bank (ECB) could move to slash interest rates to “emergency levels” to mitigate the impact of a US-led trade war, the Financial Times reports. These potential cuts would come just two years after the ECB ended eight years of negative rates aimed at combating post-pandemic inflation.

The trade war in a nutshell: Donald Trump’s “America First” trade policies are shaking up global markets. Trump floated a 60% tariff on Chinese goods — and later, promised an additional 10% tariff — and a 10% tariff on imports from other countries, and promised separate tariffs on Canadian and Mexican goods.

The EUR’s not loving this: Since late September, the EUR has dropped more than 5%, now trading around USD 1.06. Investors are already pricing in potential ECB moves, with swaps markets predicting the deposit rate could fall to 1.75% from 3.25%. If things get worse, Pimco’s chief investment officer for global fixed income Andrew Balls expects even steeper cuts, warning of a dive into “emergency levels of policy rates.”

Across the Channel: The UK isn’t immune to trade war effects. Investors anticipate the Bank of England will slash rates by three-quarters of a point by the end of 2025, bringing interest rates to 4%.

US financial moderation isn't completely off the table: Trump’s nomination of hedge fund manager Scott Bessent as Treasury secretary could signal a shift toward more measured economic policies. Bessent has advocated for gradual implementation of policy changes, which has eased some market concerns. This perception of moderation has contributed to a slight retreat in the USD from its post-election high.

MEANWHILE- A positive US inflation report showing no significant movement is the latest economic data to indicate a rate cut from the Federal Reserve is likely when it meets next week, Reuters reports.

MARKETS THIS MORNING-

Asian markets are mostly in the green, with Japan’s Nikkei, South Korea’s Kospi, and Hong Kong’s Hang Seng all up, tracking a rally on Wall Street that saw the Nasdaq close at a record high. Futures, however, slipped slightly following the news.

ADX	9,271	+0.2% (YTD: -3.2%)
DFM	4,795	+0.03% (YTD: +18.1%)
Nasdaq Dubai UAE20	3,877	+0.4% (YTD: +0.9%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.6% o/n	4.3% 1 yr
TASI	12,149	-0.4% (YTD: +1.8%)
EGX30	30,739	+0.4% (YTD: +23.5%)
S&P 500	6,084	+0.8% (YTD: +27.6%)
FTSE 100	8,302	+0.3% (YTD: +7.4%)
Euro Stoxx 50	4,959	+0.2% (YTD: +9.7%)
Brent crude	USD 73.52	+1.8%
Natural gas (Nymex)	USD 3.35	-0.8%
Gold	USD 2,753.70	+1.3%
BTC	USD 101,784.30	+5.1% (YTD: +138.8%)

THE CLOSING BELL-

The ADX rose 0.2% yesterday on turnover of AED 941.9 mn. The index is down 3.2% YTD.

In the green: Sharjah Cement and Industrial Development (+8.0%), Umm Al Qaiwain General Investment (+4.1%) and Aram Group (+3.6%).

In the red: United Arab Bank (-2.3%), Agility Global (-2.2%) and Abu Dhabi Ship Building (-2.0%).

Over on the DFM, the index closed up 0.3% on turnover of AED 521.6 mn. Meanwhile, Nasdaq Dubai rose 0.4%.

CORPORATE ACTIONS-

Chimera S&P UAE and Chimera FTSE ADX will be distributing dividends to shareholders on 10 January 2025, with Chimera S&P UAE offering a dividend at a rate of AED 0.082, according to an ADX disclosure (pdf), and Chimera FTSE ADX offering it at a rate of AED 0.006 per unit, according to a separate disclosure (pdf).

UAE finalizes trade talks with Eurasian Economic Union

The UAE and the Eurasian Economic Union (EAEU) finalized negotiations for a Comprehensive Economic Partnership Agreement (Cepa), aimed at enhancing bilateral trade between the UAE and the the five EAEU member countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia, Wam reports. The agreement will focus on reducing tariffs, removing technical trade barriers, expanding market access, and aligning customs procedures.

President Sheikh Mohamed bin Zayed Al Nahyan met with the King of Jordan Abdullah II bin Al Hussein in Abu Dhabi, Wam reports. The leaders discussed a number of topics of mutual interest, including the situation in Syria, reaffirming their support for the country's unity to strengthen regional stability and prevent further conflict escalation.

UAE, Egypt talk bilateral relations: Sheikh Mohamed also discussed ramping up the country’s cooperation with Egypt with the president of the Egyptian Senate Abdel Wahab Abdel Razeq in Abu Dhabi, Wam reports.

OTHER DIPLO NEWS-

The UAE-Korea SMEs and Startup Committee held its inaugural meeting in Seoul yesterday, aiming to ramp up collaboration and partnerships between the UAE and Korea in entrepreneurship, startups, and innovation. (Wam)
Sheikh Abdullah bin Zayed Al Nahyan and US Secretary of State Antony Blinken had a phone call to discuss regional developments, including the situations in Syria and Lebanon. (Mofa)

CALENDAR

DECEMBER

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

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

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

9-13 December (Monday-Friday): World Realty Congress, Palazzo Versace, Dubai.

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

10-12 December (Tuesday-Thursday): The International Mangrove Conservation and Restoration Conference, Bab Al Qasr Hotel, Abu Dhabi.

10-12 December (Tuesday-Thursday): Automechanika Dubai, Dubai World Trade Center.

11-12 December (Tuesday-Thursday): Middle East Investor Relations Association (MEIRA Conference), Conrad Abu Dhabi Etihad Towers Hotel, Abu Dhabi.

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

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

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

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

17-19 December (Tuesday-Thursday): China Home Life, Dubai Word Trade Center.

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.

7-9 January (Tuesday-Thursday): The Arab Plast International Trade Fair for Plastics, Recycling, Petrochemicals, Packaging and Rubber Industry, Dubai International Convention and Exhibition Center, Dubai.

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.

11-13 January (Saturday-Monday): The 1 Bn Followers Summit, Dubai.

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

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

14-16 January (Tuesday- Thursday): Intersec, Dubai World Trade Center, Dubai.

19-24 January (Sunday-Friday): Coling2025, Abu Dhabi.

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

22-25 January (Monday-Saturday): The Sharjah Real Estate Exhibition (Acres), Expo Centre, Sharjah.

27-30 January (Monday-Thursday): Arab Health Exhibition 2025, Dubai World Trade Centre, Dubai.

FEBRUARY 2025

1-6 February (Saturday-Thursday): Dubai Fashion Week, Dubai Design District.

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.

10-12 February (Monday-Wednesday): Japan Kyoto Trade Exhibition, Dubai Word 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.

28-29 February (Friday-Saturday): Investopia 2024, the St. Regis, Abu Dhabi.

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 (Monday-Thursday) : EFG Hermes One on One conference, Dubai.

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

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

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

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

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

Signposted to happen sometime in April:

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

MAY 2025

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

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

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

SEPTEMBER 2025

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

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

OCTOBER 2025

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

NOVEMBER 2025

18-19 November (Tuesday-Wednesday): Dubai Future Forum, Museum of the Future, Dubai.

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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