Good morning, lovely people. It’s a calm start to the new workweek, with a handful of headlines worth your attention. The big stories of the day: Capital Intelligence affirmed the UAE’s sovereign rating, with a stable outlook; Alpha Dhabi completed its acquisition of a majority stake in the National Corporation for Tourism and Hotels; and Sharjah approved a law proposing a new natural resource tax. Let’s dive in.

☁️WEATHER- We’re in for a cloudy (and possibly rainy) start to the week: The National Center of Meteorology forecasts (pdf) partly cloudy conditions, with a chance of light rainfall in northern and coastal areas. Temperatures today will hit 25°C in Dubai, with an overnight low of 20°C, and 22°C in Abu Dhabi, before cooling to an overnight low of 20°C.

WATCH THIS SPACE-

#1- Shuaa Capital will vote on the issuance of AED 425.5 mn in convertible bonds and their conversion into shares during a general assembly meeting on 3 February, according to a DFM disclosure (pdf).

REMEMBER- Shuaa’s board of directors had approved late last year the issuance the bonds, which comprise a first tranche that includes bonds valued at up to AED 150 mn, offered to institutional investors, and a follow-up issuance with a maximum value of AED 275.5 mn offered to existing bondholders. Both tranches will be convertible into shares at a rate of AED 0.32 per share. The issuance could see the company’s capital increase by up to AED 425.5 mn.

The bonds are part of Shuaa’s broader restructuring efforts, following substantial losses in 2023. The company reached an agreement with bondholders in April to extend the payment terms for some USD 150 mn worth of bonds, and fully settled around AED 500 mn (USD 136 mn) in margin facilities with multiple UAE banks. Shuaa also finalized an agreement with its senior creditor in December to restructure AED 208 mn in outstanding facilities.

#2- UAE consumers to splurge more on dining out in 2025: A third of UAE consumers are planning to increase their spending on dining out in 2025, in contrast to the global average of just 19%, according to AlixPartners' Global Consumer Outlook report (pdf). Meanwhile, some 41% of Emirati customers aim to spend more on out-of-home entertainment.

When it comes to extra cash, travel and holidays lead UAE consumers' spending priorities, with 26% saying they'd allocate more money to these experiences. About 20% would save the money, while 18% would use it for groceries.

#3- Rotana to open 36 new hotels across four regions: Abu Dhabi-based hotel management firm Rotana is gearing up to launch 36 new hotels across 22 cities in the Middle East, Africa, Europe, and Turkey, according to a press release. Nine of these will be in Saudi Arabia, where Rotana recently opened three new properties in 2024. The company is set to double its room count in the Kingdom to 6k over the next three years, with five more hotels planned for 2025.

DATA POINTS-

#1- UAEV plans 10k EV chargers by 2030: UAE’s state-owned EV charging network UAEV plans to install 500 EV chargers by 2025 and to expand this to 10k chargers by 2030, and 30k by 2050, undersecretary of UAE’s Energy and Infrastructure Ministry and Chairman of UAEV told CNBC Arabia (watch, runtime 4:57). The UAE is the second highest in the Middle East for EV usage, with EVs accounting for 13% of total car sales in 2023. The UAE has already installed over 100 EV chargers in 2024, he added.

#2- The UAE workforce grew 12% in 2024, with the youth workforce growing by 51.9%, and female representation rising to 21%, according to data from the Human Resources and Emiratisation Ministry. The skilled workforce also grew 13%, especially in the information and communications sector.

#3- The UAE’s manufacturing sector received AED 5.5 bn in fresh funding from commercial banks in 9M 2024, driving total sector financing up by 6.2% y-o-y to exceed AED 94 bn, Wam reports.

#4- The UAE was a leading destination for high-net-worth individuals (HNWIs) with assets of USD 1 mn or more in 2024, alongside the US and Italy, Arabian Business reports, citing estimates from Henley & Partners. The country’s golden visa programs, pro-crypto policies, and modern infrastructure made it a top choice. Globally, 134k m’naires emigrated last year, with 142k more projected to move this year — marking the largest wealth migration in history.

PSAs-

#1- New VAT rules introduced for precious metals and gemstones traders in UAE: The Finance Ministry issued a cabinet decision implementing a reverse charge mechanism for value-added tax (VAT) on precious metals and gemstones among registered entities, Al Khaleej reports.

The expanded scope of the new mechanism now includes Gold, silver, palladium, platinum, natural and synthetic diamonds, pearls, rubies, sapphires, emeralds, and jewelry made from these materials when their value makes up more than that of other components.

How it works: Under this mechanism, registered suppliers will not be responsible for charging VAT on covered goods sold to VAT-registered customers. Instead, customers will calculate and report VAT on their purchases in their tax returns.

#2- Gov’t sets exceptions to work permit ban: Workers sponsored by family members or relatives or seeking a new permit from their current employer will be exempt from a rule that bans foreign workers who ended their employment unlawfully from obtaining a new work permit for one year, Gulf News reports. The exemptions also cover holders of the Golden Visa, highly skilled professionals with specialized knowledge, and other professional categories defined by the ministry based on market demands.

HAPPENING TODAY-

#1- The 1 Bn Followers Summit kicked off on Saturday and runs through today at Jumeirah Emirates Towers at the DIFC in Dubai. The event gathers over 250 speakers, including top content creators and industry experts, like X Managing Director Antoine Caironi and Emaar Founder Mohamed Al Abbar, and features discussions on technology, content strategies, and the economic impact of content creation.

#2- The Abu Dhabi Sustainability Week (ADSW) kicked off yesterday and runs through to 18 January at the Abu Dhabi National Exhibition Center. The event features 11 events gathering policymakers, industry leaders, and youth to discuss global sustainability solutions and foster collaborations.

Among the biggest events of the week: The International Renewable Energy Agency (IRENA) Assembly, which kicked off on Saturday and wraps this week in Abu Dhabi. The event gathers global leaders and decision-makers to discuss the renewable energy transition and address challenges to energy security and financing. Featured in the agenda: An International Renewable Energy Agency Youth Forum, which will see interactive sessions, open dialogues, and thematic workshops for youth to contribute to renewable energy deployment and sustainable development.

Other events include:

• Today: Global Climate Finance Annual Meeting.
• 14-16 January (Tuesday-Thursday): World Future Energy Summit and Youth 4 Sustainability (Y4S) Forum and Hub.
• 15 January (Wednesday): Women in Sustainability, Environment, and Renewable Energy (WiSER) Forum.
• 16 January (Thursday): Green Hydrogen Summit and Zayed Sustainability Prize Forum & Investor Connect.

#3- SteelFabkicks off today and runs until 16 January at the Expo Center in Sharjah. The event will feature global brands and exhibitors from 33 countries, focusing on steel fabrication technologies, including manufacturers from the UK, Germany, the US, China, and India.

THE BIG STORY ABROAD-

The Los Angeles wildfires are still getting top billing in the foreign press this morning, as a brief respite over the weekend is expected to give way to more destructive fires later today and tomorrow, spurred on by a fresh round of dry Santa Ana winds. Firefighters made some headway in containing the fires over the weekend, though 16 people have been reported dead and at least 16 people in the area are missing, with over 150k people in evacuation. (Bloomberg | Reuters | WSJ | France24 | FT)

As most foreign outlets look into how much of the impact of the wildfires can be attributed to climate change, new data shows that the 1.5°C global temperature benchmark was breached last year, making it the hottest year on record, and raising fears that the target is unattainable in the long term. (France24 | Reuters | Semafor)

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MARKET WATCH-

India, China ramp up Middle East crude purchases amid supply concerns: India and China’s oil refiners are turning to Middle Eastern crude as concerns over restrictions on Russian and Iranian oil tighten global supply, Bloomberg reports. Indian state refiners purchased up to 6 mn barrels of Oman and Abu Dhabi’s Murban crude for February loading. Chinese buyers such as Sinopec subsidiary Unipec, have also boosted imports of Abu Dhabi oil, traders told the newswire.

Sanctions squeeze supplies: The shift comes as offers for Russian Urals and Iranian Light crude decline and sanctions on tankers carrying these cargoes increase, complicating access for refiners. The US over the weekend imposed fresh sanctions on Russian oil producers Gazprom Neft and Surgutneftegas, as well as some 183 vessels they say are involved in shipping Russian oil. Meanwhile in China, ports in Shandong province — a hub for Iranian crude imports — have reportedly been instructed to ban sanctioned oil tankers from docking, according to insiders.

The shift will cause prices to spike: “Already, prices are rising for Middle Eastern grades,” one Indian oil refining official said. Oil prices rose to USD 81 a barrel early today in response to the sanctions — the highest in months.