CBUAE follows Fed’s lead with first in a series of rate cuts

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WHAT WE’RE TRACKING TODAY

THIS MORNING: President set to make first US visit next week + private firms will soon need to have at least one woman on BoD

Good morning, wonderful people. We have a bumper issue for you today, as the Fed (finally) makes a bold 50 bps rate cut to kickstart its easing cycle, prompting the Central Bank of the UAE to follow in its footsteps. It’s also a big day on the M&A front, with Brookfield and FAB’s acquisition of Network going through, and PJT Partners agreeing to acquire Dubai advisory firm DeNovo Partners. Without further ado, let’s dive in.

HAPPENING NEXT WEEK-

President Sheikh Mohamed bin Zayed Al Nahyan will make his first official visit to the US next Monday, state news agency Wam reports. Al Nahyan is scheduled to meet with US President Joe Biden to discuss bilateral ties, including cooperation on economy, investment, technology, AI, space, and renewables and climate action, Wam said. Al Nahyan is also set to meet separately with Vice President and presidential hopeful Kamala Harris.

Topics on the agenda will also include the wars in Gaza and Sudan, Reuters quotes White House spokesperson John Kirby as saying.

REMEMBER- The US and the UAE have a budding AI partnership that just got a boost this week, with reports that Nvidia has begun to send its chips our way as a marker of the start of an important phase in the partnership between Microsoft and state-owned AI firm G42.

WATCH THIS SPACE-

#1- Private companies must reserve at least one seat for women on their boards of directors starting January 2025, as per a new decision from the UAE Economy Ministry, according to a Dubai's Media Office statement. Companies will be required to meet the quota following the end of their current board’s term.

Background: The Securities and Commodities Authority made it mandatory for listed companies to have at least one woman on their board in 2021.

#2- The UAE and Japan have agreed to launch negotiations for an economic partnership agreement, in a bid to ramp up UAE-Japan bilateral economic relations, President Mohamed bin Zayed Al Nahyan said on X. Japanese Prime Minister Fumio Kishida also confirmed the news in an X post. Negotiations will come in parallel with talks over a wider GCC agreement,

UAE-Japan relations have been growing stronger: Earlier in July, UAE Ministers met with Japan’s Kishida to discuss bilateral economic ties and progress on projects under their strategic partnership. Multiple MoUs were signed during the visit, with Adnoc and Japan Bank for International Cooperation sealing a USD 3 bn green financing loan to advance Adnoc’s low-carbon ambitions.

ALSO- Trade agreement with the EU coming? The EU is reportedly considering pursuing a trade agreement with the UAE as negotiations for a separate agreement with the GCC stalls, Bloomberg cites people familiar with the matter as saying. The caveat would be finding an arrangement that would not affect the wider GCC agreement, and would not upset other countries in the GCC, sources said.

#3- Sharjah will issue an AI-powered trade license that takes five minutes to process, in partnership with Microsoft, state news agency Wam reports. Announced at the Sharjah Investment Forum, the license will first be available through the Sharjah Investor Services Center (Saeed) and SPC Free Zone, and will later cover other freezones across Sharjah.

#4- The UAE plans to review its 2050 energy strategy in five years, focusing on advancements in hydrogen, battery technology and energy storage, Undersecretary for Energy and Petroleum Affairs Sharif Al Olama told CNBC Arabia (watch, runtime 2:20).

The country’s renewable energy production capacity has reached 6 GW, nearly half of its target of 14.2 GW by 2030. The UAE plans to invest more than USD 50 bn in renewable and clean energy over the next six years, building on the USD 45 bn already invested in the past 15 years.

HAPPENING TODAY-

WEATHER- We have another hot and sunny day in Dubai with a peak of 36°C and overnight low of 30°C. Over in Abu Dhabi, the mercury is set to hit 37°C before cooling to 32°C in the evening.

#1- The Intelligent Transport Systems World Congress 2024 is on its third day today, and will run until Friday, 20 September in Dubai. The congress is expected to welcome 20k participants to explore innovations in smart mobility and transportation technology.

#2- The Sharjah Investment Forum ends today at the Jawaher Reception and Convention Centre in Sharjah. Discussions will span across investments in emerging markets and in the UAE, smart cities and economies, and more.

#3- Forbes’ Healthcare Leaders Summit 2024 will take place today and tomorrow at the St. Regis Saadiyat Island Resort, Abu Dhabi. The event gathers healthcare leaders from across the region to discuss innovation in healthcare and sustainability in the industry.

DATA POINTS-

Dubai, Abu Dhabi, and Sharjah are on track to see 150% more centi-m’naires — individuals with more than USD 100 mn in liquid assets — between now and 2040, according to British consultant company Henley and Partners’ Centi-M'naire Report 2024.

Dubai ranked 15th globally for centi-m’naires, hosting 212, while neighboring Abu Dhabi was positioned at 50th with 68 centi-m’naires. Sharjah secured a spot in the report’s “Cities to Watch ” list, with 11 centi-m’naires under its belt.

THE BIG STORY ABROAD-

Even with everything going on in the world, the Fed’s decision to cut interest rates is topping the headlines in the international business press. US Federal Reserve chair Jerome Powell announced late yesterday that the Fed had voted to lower interest rates by half a percentage point in its first rate cut since 2020, bringing the benchmark federal funds rate to between 4.75% and 5%. In its statement on the decision, the Fed noted that the decision reflects “greater confidence that inflation is moving sustainably toward 2%.”

Gulf policymakers followed suit late yesterday, with the central banks of Saudi Arabia, the UAE, and Bahrain lowering their interest rates by 50 basis points, Qatar lowering rates 55 points, and Kuwait lowering rates by 25 basis points.

** We’ve got the complete rundown of the Fed’s decision to cut rates, what happens next, and how the market reacted in our Planet Finance section, below.

WHILE IN OUR CORNER OF THE WORLD- Lebanon was hit yesterday with yet anotherset of Israeli device explosions as Hezbollah continues to reel from what has been described as the most significant penetration of the armed group’s communication networks since the beginning of the war on Gaza. The latest set of explosions were of the group’s hand-held radios, which killed 20 and injured over 450 in Lebanon's single deadliest day since Hezbollah and Israeli forces began exchanging fire over the border nearly a year ago. The episode has further heightened fears of an escalation on the Lebanese-Israeli border, with Hezbollah secretary-general Hassan Nasrallah set to give an address today.

AND OVER IN TECH NEWS- Google will not have to pay a EUR 1.5 bn fine levied on the company by the European Commission after winning an appeal, though the court accepted the commission’s assessment that the tech giant had engaged in anticompetitive practices with regard to its online advertising business. The decision marks a victory for big tech in the EU’s recent antitrust crusade just as Meta comes under scrutiny by the commission for anticompetitive practices linked to its Marketplace services, with a decision on the case — and an appropriate fine — to be decided as early as next month.

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CBUAE follows Fed’s lead, cuts rates

The Central Bank of the UAE followed in the US Federal Reserve’s footsteps and cut the overnight deposit rate by 50 basis points, from 5.40% to 4.90%, it said in a statement yesterday. The CBUAE maintained the interest rate applicable to borrowing short-term liquidity at 50 basis points above the base rate.

REMEMBER- The UAE’s overnight deposit rate, or the base rate on overnight deposit facilities, is anchored to the US Federal Reserve’s interest rates as the AED is pegged to the USD.

This is welcome news for GCC countries, who have not needed interest rates as high as the US given inflation is “largely” at or below 2%, chief economist at Abu Dhabi Commercial Bank Monica Malik is quoted as saying by Bloomberg.

That’s especially the case due to the weakening oil outlook, which will “[increase] the funding requirement for some regional countries and for their investment programs,” Malik said. Oil prices are down almost 8% this month, with Brent Crude currently trading at USD 72 a barrel.

It will take some time for banks to digest the change: The impact of rate cuts on GCC economies “will be limited in 2024 with time for these to feed into bank lending rates, though should be supportive in 2025 especially as the more cuts take place,” Malik added.

But in the long run, it will give a boost to the region’s growing non-oil sectors: Monetary easing will further position the Middle East’s non-oil sector as the main driver of growth for GCC members — particularly those with currencies tied to the USD — by improving access to credit, according to a separate report (pdf) from PwC Middle East.

GROWTH FORECASTS-

The UAE’s non-oil sector is expected to grow at a 6% clip in 2024, Economy Minister Abdulla bin Touq Al Marri told CNBC Arabia (watch, runtime: 13:13). The UAE aims to boost the non-oil economy to 80% of national GDP by 2031, Al Marri added.

In Sharjah, the non-oil economy now makes up 96% of GDP, with annual growth ranging between 4-5% annually, according to Al Marri.

OVER IN THE GCC- Next year will see GCC growth doubling: Economic growth in the GCC is expected to more than double in 2025 to 4.4% on the back of strong domestic activity, with interest rate reductions expected to boost consumption and private investment, Wam reports, citing an Oxford Economics report.

It’s all about non-oil growth: The GCC’s non-oil sector is projected to grow by 4.2% in 2024 and 4.4% in 2025, with tourism, trade, and finance sectors driving growth. “The GCC's proactive and strategic investment in non-oil sectors, alongside the gradual recovery of oil production, is paving the way for robust growth in 2025,” ICAEW said.

REMEMBER- The International Monetary Fund (IMF) recently revised upward its 2024 growth forecast for the UAE to 4%, with Fitch Solutions se eing the non-oil private sector slowing to 5% growth this year, and World Bank projecting an even slower 3.2% growth.

Read more about the Fed’s decision in today’s Planet Finance, below.

Aldar, Mubadala team up to manage, develop AED 30 bn real estate assets in Abu Dhabi

Aldar, Mubadala to develop AED 30 bn Abu Dhabi-based assets: Abu Dhabi real estate developer Aldar Properties and wealth fund Mubadala are partnering to establish four joint ventures geared at developing and managing real estate assets — including prime residential, commercial, retail, and logistics assets — in Abu Dhabi, according to an ADX disclosure (pdf). The projects are worth a total of AED 30 bn.

Partnership breakdown: Aldar will take a controlling 60% stake in the ventures, while Mubadala will hold the remaining 40%.

The ventures include…

A new AED 9 bn retail platform consolidating Abu Dhabi’s primary shopping destinations, including Yas Mall and The Galleria Luxury Collection;
A JV for AED 3 bn worth of commercial and residential properties in Masdar City, housing over 400k sqm of leasable area with 95% occupancy;
A JV to develop luxury waterfront communities on two islands near Saadiyat and Yas Islands, with a gross development value of AED 13 bn;
A partnership to develop a AED 5 bn logistics park in Al Falah, near Zayed International Airport, with 1.2 mn sqm of industrial space.

Aldar and Mubadala have history: Aldar previously acquired four Abu Dhabi Global Market towers from Mubadala for AED 4.3 bn back in 2022. At the end of the same year, Aldar and Mubala partnered to purchase the 25-storey Al Maryah Tower, a prime Grade A commercial office property in Al Maryah Island, for AED 450 mn. In December 2023, the two sides partnered alongside Ares Management to set up a USD 1 bn private real estate fund to purchase real estate in the UK and Europe, with the funds set to be invested over the next three to five years.

Aldar has big expansion plans: The developer lined up AED 1 bn (USD 272 mn) earlier in Janua r y to expand its logistics operations in both Abu Dhabi and Dubai, which included an acquisition of its first logistics zone in Dubai and plans to set up new logistics facilities. It later committed AED 1.8 bn to ramp up its portfolio in Dubai, focusing on key business districts.

PJT Partners to acquire Dubai’s deNovo

Big-shot US advisory firm PJT Partners will acquire Dubai’s deNovoPartners to solidify its presence in the region amid a surge in dealmaking, according to a PJT press release. The transaction is expected to close next month, subject to regulatory approvals. No details were given about the value of the transaction.

The leadership will not change: DeNovo founder May Nasrallah (LinkedIn) will lead PJT’s regional operations and join its senior team. Nasrallah previously led Morgan Stanley’s investment banking in the region and was instrumental in setting up its Dubai office, Bloomberg writes.

PJT and deNovo go way back: The two firms signed an accord to collaborate on Middle Eastern dealmaking and restructuring back in 2020, Bloomberg reported previously. The US-based investment bank and the Dubai-based boutique worked together on cross-border transactions involving major regional firms, sovereign wealth funds, and family offices, as well as advising global investors in the region.

A “union” to take things to the next level: “We started dating four years ago, we really got along amazingly and realized we couldn’t date forever. So we made it official and we are getting married,” founder and CEO of PJT Paul Taubman told the Financial Times. Their partnership worked well but “clients like to know that you are one firm and that you are bringing a partner of the firm rather than somebody from outside PJT into a meeting to discuss very sensitive matters,” he added.

More on deNovo: Established in 2020 by a group of investment bankers, deNovo has grown into one of the Gulf’s leading independent advisory firms, advising on more than 100 transactions, including the region’s two largest private sector M&A transactions this year. The boutique firm now employs around 20 bankers, primarily in Dubai’s financial hub, and recently secured a license to operate in Riyadh.

FAB + Brookfield take over Network, to merge with Magnati

FAB + Brookfield close Network acquisition: First Abu Dhabi Bank (FAB) and Brookfield Asset Management, along with other co-investors, finalized their acquisition of Dubai-based payments provider Network International, the bank said in a disclosure (pdf). The acquisition was completed through Bidco Holdings, a special purpose vehicle owned by Brookfield.

Background: After obtaining a 60% stake in FAB’s payments arm, Magnati in February 2022, Brookfield put in a USD 2.76 bn non-binding bid for Network, with FAB saying that it will co-invest in the acquisition. The Central Bank of the UAE greenlit the transaction in March.

What’s next? FAB and Brookfield plan to merge their payments platform, Magnati, with Network International. Once they obtain regulatory approval, both companies will contribute their stakes in Magnati to Network Project Holdings 1, which will hold the combined business.

Where’s the money coming from? Bidco secured part of the financing for the Network acquisition through a conventional credit facility from Abu Dhabi Commercial Bank (ADCB), which acted as the agent; and an Islamic financing arrangement with Dubai Islamic Bank (DIB), where DIB served as both the investment agent and the Islamic participant, according to a disclosure (pdf). The transaction also saw equity investments from Brookfield, which said it would invest up to USD 150 mn, and First Abu Dhabi Bank.

REMEMBER- Brookfield’s been making moves in the UAE for a while now. The global investment giant snagged a USD 2 bn majority stake in Dubai private school provider Gems Education. It also acquired a controlling stake in Gulf Islamic Investments’ (GII) real estate platform. Brookfield also partnered with the UAE government to launch the USD 30 bn climate fund, Alterra, during COP28.

ADVISORS- PJT Partners is the financial adviser to Network for the transaction, while Citi and JP Morgan acted as both financial advisers and corporate brokers. Morgan Stanley is the financial adviser for Bidco and Brookfield.

Adia backs Polus Capital’s USD 5 bn distressed debt strategy

Adia shells out funding for Polus Capital: London-based credit investor Polus Capital Management secured a capital investment from an Abu Dhabi Investment Authority (Adia) subsidiary for its Special Situations strategy, pushing the strategy’s assets under management to USD 5 bn, according to a press release. While the exact value remains undisclosed, the total raised is said to amount to some USD 1 bn, with Adia committing a “significant” portion of that, Bloomberg quotes a source familiar with the matter as saying.

About the fund: Polus’ special situations fund focuses on secondary investments in distressed debt, capitalizing on shifts in enterprise or hard asset values.

Adia is pouring more into alternative funds: In June, the sovereign wealth fund made a USD 199.8 mn investment in Australian real estate private credit company Qualitas Diversified Credit Investments, and an unspecified investment in former Credit Suisse managing director Bobby Jain’s new hedge fund, Jain Global, helping it raise a total USD 5.3 bn ahead of its launch. During the same month, an Adia subsidiary backed European Pemberton Asset Management’s new NAV strategic financing strategy.

Ajman signs a AED 5 bn agreement for infrastructure investments

Ajman to see AED 5 bn in infrastructure firm: Ajman signed an MoU with engineering services contractor China National Electric Engineering, a subsidiary of state-owned Sinomach Group, paving the way for up to AED 5 bn in investments for infrastructure projects in the emirate starting next year, Gulf News reported.

The push comes as Ajman prioritizes infrastructure expansion, looking to leverage growing transportation links and attract private sector investment and expertise to support its development plans. “We are focused on expanding infrastructure and modern industries to attract global companies and support their operations in our emirate,” Crown Prince of Ajman Sheikh Ammar bin Humaid Al Nuaimi said.

Remember: Ajman's GDP grew 6.25% in 2023, driven by growth in the manufacturing, wholesale and retail trade, and construction sectors.

Singapore’s Trafigura secures USD 150 mn in financing for UAE exports

UAE lenders extend USD 150 mn facility to Trafigura: Singapore trading giant Trafigura has secured a USD 150 mn revolving credit facility from Etihad Credit Insurance (ECI), the Abu Dhabi Exports Office (Adex), First Abu Dhabi Bank (FAB), and Natixis Corporate and Investment Banking, to support its purchase of non-oil commodities from the UAE, according to a press release. The two-year loan will help boost the UAE’s non-oil exports by expanding the UAE’s global trade reach.

ADVISORS- The lenders served as the mandated lead arranger, while Natixis CIB acted as bookrunner, facility coordinator, facility agent, and ECA agent. Allen Overy Shearman Sterling (A&O) and Clyde & Co acted as legal advisers on the agreement.

MUFG taps Yoshi Katsuda as regional head for the Middle East

Financial group MUFG appointed Yoshihiko Katsuda (LinkedIn) as its new regional head for the Middle East, effective tomorrow, according to a press release. Katsuda will be based at the Dubai International Financial Centre, and will replace Yohsuke Takahashi, who has led the region since July 2023. The 25-year MUFG veteran most recently served as head of the global corporate banking office in the GCIB planning division in Tokyo. Katsuda will report to Hidefumi Yamamura, regional executive for MUFG EMEA.

Airbus tapped Gabriel Semelas (LinkedIn) as president of Airbus in Africa and the Middle East, effective 1 January, 2025, according to a press release. Semelas, who has been in the aeronautical industry for over 24 years, will oversee operations across all Airbus divisions in the region. He replaces Mikail Houari (LinkedIn). Semelas was previously chief commercial and financial officer at Eurofighter Jagdflugzeug in Germany, and prior to that was vice president of sales contracts for commercial aircraft in the Middle East and Africa.

Egypt’s FRA head talks about how the regulator brought new instruments + depth to its market

FRA’s Farid on introducing SPACs, carbon credits, and more to the Egyptian market: Since assuming his position as Financial Regulatory Authority chairman in August 2022, Mohamed Farid has overseen the introduction of a handful of new financial instruments, as well as regulatory overhauls designed to create a deeper, more digitally-enabled market in Egypt. Speaking at EFG Hermes’ annual conference in London last week, Farid touched on the different regulatory changes the authority has introduced over the past several years and the changes seen across the country’s IPO market, ins. sector, and the digitization push.

From EGX to FRA: Transitioning from the bourse to the FRA allowed Farid to bring an inside perspective on the regulatory priorities for the agency, including facilitating the process for companies to IPO on the bourse, he said. “We discovered that in Egypt, for companies to get fully ready to be able to trade their shares on the market through a complete IPO, they need lots of time,” Farid said. To facilitate that process and encourage the introduction of new paper on the EGX, the FRA introduced in September 2022 amendments to listing rules that allow companies to temporarily list on the EGX while seeking regulatory approvals from the FRA. The amendments also granted companies a longer window to meet listing requirements.

The FRA also recently introduced changes to the listing rules for special purpose acquisition vehicles (SPACs), Farid noted. The regulator had first greenlit a proposal to allow SPACs in Egypt back in 2021. In introducing SPACs to Egypt, the FRA looked at the model introduced in the US and modified it to fit the local market. “We took a slightly different approach whereby the traditional model of SPACs that’s in the US is allowed, but there’s also a complementary model that also exists in Saudi and the UAE that introduces an SME platform,” Farid said. This setup allows VC funds themselves to get listed.

The rationale: “If we allow companies to be listed with a minimum capital requirement of EGP 1 mn, and we’re allowing investors to take this risk, it doesn’t make any sense for us to not allow VC funds to be listed as well,” Farid said. The new model is “named SPACs for marketing purposes but it’s more about listing private equity and venture capital funds” and eventually create a path for limited partners (LPs) in startups to have a clear exit scenario, he said.

The Egyptian SPAC model takes heed of multinational institutions’ guidance that encourage the increased transparency that comes from listing a VC fund, Farid said, pointing to research from the European Bank of Reconstruction and Development, among others. “These institutions found that the performance of listed private equity and VC firms is by far superior to unlisted or ‘opaque’ peers,” Farid said.

This model is also designed to “enable different asset management firms with the aim of investing in startups and companies with newly developed ideas,” while still providing investors with a clear exit mechanism, Farid said.

Besides SPACs, the introduction of a voluntary carbon market with carbon credit trading was another major development in the Egyptian market. Egypt officially launched Africa’s first carbon market last month, which Farid stressed made Egypt “one of the very few [countries] that decided to put in place a full-fledged regulatory framework” for the market and to trade carbon credits. Egypt already had several different green and sustainability-linked debt instruments, including green bonds, brown bonds, and transition bonds, but “another sweetener that adds returns to those types of investments is to issue carbon credits,” Farid said.

Carbon credits: Commodities or financial instruments? The idea of launching a regional platform for carbon credit trading originated at COP27, which Egypt hosted in Sharm El Sheikh, Farid said. “But the difficulty was that we needed to decide how to treat carbon credits in a regulatory sense,” he said. The US’ model considers carbon credits as a commodity, whereas in the EU, they are considered to be financial instruments. “For the credits to be treated as a commodity, you need to not see significant deviations in the prices — but in reality, there were huge price differences.”

Not all carbon credits are born equal: “A carbon credit issued by a project that only put a filter on a factory chimney to reduce CO2 had one price, while another carbon credit that was issued for slashing CO2 in addition to addressing other SDG components — such as women’s empowerment, poverty alleviation, etc. — had a much higher price. Accordingly, given that you have this significant price deviation, we had to treat it as a financial instrument, not a commodity, and we had to create the regulations accordingly,” Farid explained.

“As it currently stands, we have 16 projects that are registered with the FRA with carbon credits eligible for trading,” Farid said. These projects — which are studied and verified and have the proper ISO certifications related to carbon credits — are primarily in the agriculture space, Farid noted. Out of the 16 projects currently listed, 15 of them are agricultural projects “where farms have invested in swapping out their diesel-powered machinery to run on solar panels” and introducing other sustainable practices, he said.

It’s not just Egyptian projects: The 16th project currently registered with the regulator is from India, Farid said, noting that the real idea behind launching Egypt’s carbon market “is to create a regional platform where Egypt, Morocco, Tunisia, Kenya, and other countries can register these projects and start seeing an aggregated trading platform for these players in the market.”

Shorooq Partners leads USD 2 mn pre-seed funding round for Egypt’s Settle Payments

INVESTMENT-

#1- Abu Dhabi-based VC Shorooq Partners led a USD 2 mn pre-seed funding round for Egyptian B2B payment platform Settle Payments, according to a press release (pdf). Egypt’s El Sewedy Capital Holding and Acasia Ventures participated in the round, alongside Abu Dhabi’s Plus VC.

Settle? The fintech startup founded in 2023 is a B2B payments platform that aims to help businesses digitize and simplify their B2B payments, offering integration of companies’ enterprise resource planning software with existing bank accounts to automate payments and receivables and improve the transparency of companies’ financial processes, all while increasing efficiency and reducing operational errors.

Where’s the money going? The company plans to use the funding to establish itself within the global market and further develop the platform, as well as invest in top local talent, improve user experience, and ramp up the company’s marketing efforts to get the attention of both SMEs and large enterprises, Shorooq Partners partner Tamer Azer told EnterpriseAM. It also has long-term plans to expand into the GCC, including to Saudi Arabia and the UAE, Azer told us.

#2- Dubai-based B2B hospitality startup Plain Tiger raised an undisclosed investment from CoreAngelsMEA, a unit of CoreAngels International, according to a press release. African Business Angel Network also joined as a co-investor. Plain Tiger will use the investment to develop its platform and expand into the Saudi market, according to the statement. The investment follows a prior funding round led by VC AngelSpark in May.

About Plain Tiger: Founded in 2021, Plain Tiger connects hotels with over 300 eco-friendly suppliers, while providing access to ESG data, to help hotels reduce their environmental impact.

#3- Infrastructure and real estate investment firm Stonepeak opened an office in Abu Dhabi after recieving a license from the Financial Services Regulatory Authority of Abu Dhabi Global Market, according to a company statement. The new office will enable Stonepeak to arrange investments and provide advisory services in the UAE.

#4- Phoenix Venture Partners secures ADGM license: Technology-focused investment firm Phoenix Venture Partners secured an Abu Dhabi Market fund manager license, with Apex Group facilitating the move, according to a press release. The new license will allow Phoenix to expand its operations in the UAE and launch its first fund.

Apex Group will provide corporate and fund services for Phoenix's upcoming fund, positioning it to attract both domestic and international investors across the MENA and GCC regions, according to the statement.

REAL ESTATE-

DMT to transfer real estate services on Al Reem Island to ADGM: Abu Dhabi's International Financial Centre ADGM signed an MoU with the Department of Municipalities and Transport (DMT) to transfer real estate and municipal services on Al Reem Island to ADGM, according to a state ment.

LEGISLATION-

Dubai introduces new law to streamline law enforcement regulations: Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai, has issued a new law aimed at enhancing law enforcement capabilities and public-private partnerships in managing public facilities, according to a statement. The law applies to government employees, private contractors, and institutions managing public facilities, as well as community members granted law enforcement capacity. It also mandates the use of Arabic in investigations and sets guidelines for enforcement and performance evaluations.

MANUFACTURING-

Ras Al Khaimah Ports inked an AED 100 mn MoU with Jianhua Holdings Group, to establish a concrete pile facility in RAK Maritime City FreeZone, Trade Arabia reports. Jianhua Holdings is now finalizing the first phase of the project, which will produce prestressed high-strength concrete piles to cater to demand across the GCC and Asian markets.

ENERGY-

Abu Dhabi-based EEIC to distribute MediSun’s tech: Engineering contractor Emirates Electrical & Instrumentation Company (EEIC) signed an MoU with renewable energy company MediSun Energy to distribute its WEGen technology, which uses osmotic power to generate electricity, in the UAE, according to a company statement. The technology helps reduce consumption by 30%.

Fed kicks off easing cycle with a bang

The US Federal Reserve cut interest rates by half a percentage point, marking the start of its first easing cycle since the pandemic, according to a statement out yesterday. The Open Market Committee’s meeting voted 11 to 1 to reduce the federal funds rate to a range of 4.75% to 5%. Additional rate adjustments will be considered by policymakers based on “incoming data, the evolving outlook, and the balance of risks,” according to their statement.

Powell says nothing is set in stone: The Fed will respond flexibly to evolving economic conditions, chair Jay Powell said at a presser after the meeting, the Financial Times reports. Powell indicated that rates are not set on a “fixed path” and that the Fed may adjust its approach if inflation remains persistent. He also emphasized the central bank’s readiness to act if unexpected weaknesses in the labor market emerge.

What to expect: The Fed’s updated projections include a further 50 bps rate cut by year end, another 100 bps in 2025, and a final 50 bps in 2026, bringing the benchmark rate to 2.75%-3%, according to its median forecast (pdf). The Fed has two meetings left this year, in November and December, implying two 25 bps rate cuts in each of the meetings.

Is the Fed playing catch-up? The Fed’s 50 bps reduction contrasts with the Fed’s assessment that the US economy is in a good place, Egyptian-American economist Mohamed El Erian said in an X post. “Today's 50 bps move is a catch-up for not having reduced rates in July.”

Market reax: The stock market responded positively, with the S&P 500, Dow, and Nasdaq Composite all posting gains before easing to close slightly down, the Wall Street Journal reports. Treasury yields also dipped after initially rising to 3.706%, settling at 3.685%.

MARKETS THIS MORNING-

Asia-Pacific markets are also reacting positively to the start of the era of monetary easing, with Japan’s Nikkei leading gains. Hong Kong’s monetary authority followed the Fed’s lead with a 50 bps rate cut, with Hang Seng futures pointing to a flat open after markets return to trade on Thursday following a day off yesterday. Wall Street futures are also up as traders continue to weigh the Fed’s moves yesterday.

ADX	9,423	-0.1% (YTD: -1.6%)
DFM	4,390	-0.1% (YTD: +8.1%)
Nasdaq Dubai UAE20	3,823	-0.1% (YTD: -0.5%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.1% o/n	4.1% 1 yr
TASI	11,921	+0.3% (YTD: -0.4%)
EGX30	30,342	+0.6% (YTD: +21.9%)
S&P 500	5,618	-0.3% (YTD: +17.8%)
FTSE 100	8,254	-0.7% (YTD: +6.7%)
Euro Stoxx 50	4,835	-0.5% (YTD: +6.9%)
Brent crude	USD 73.65	-0.6%
Natural gas (Nymex)	USD 2.29	+0.3%
Gold	USD 2,598.60	+0.2%
BTC	USD 60,378.90	+0.1% (YTD: +42.7%)

THE CLOSING BELL-

The ADX fell 0.1% yesterday on turnover of AED 2.2 bn. The index is down 1.6% YTD.

In the green: Foodco National Foodstuff (+6.5%), EasyLease Motorcycle Rental (+3.8%) and Fujairah Cement Industries (+3.3%).

In the red: Abu Dhabi National Company for Building Materials (-9.9%), Aram Group (-9.7%) and Ooredoo (-8.4%).

Over on the DFM, the index also fell 0.1% on turnover of AED 335.1 mn. Nasdaq Dubai also closed down 0.1%.

CALENDAR

SEPTEMBER

15-19 September (Sunday-Thursday): Loop Beyond Borders, Abu Dhabi.

16-20 September (Monday- Friday): Intelligent Transport Systems World Congress 2024, Dubai.

18-19 September (Wednesday-Thursday): Sharjah Investment Forum, Jawaher Reception and Convention Centre, Sharjah.

19-20 September (Thursday-Friday): Healthcare Leaders Summit 2024, St. Regis Saadiyat Island Resort, Abu Dhabi.

22-26 September (Sunday-Thursday): Sharjah-Europe Businesswomen Forum, Brussels.

23-25 September (Monday-Wednesday): WorldFreezonesOrganization’s Annual International Conference and Exhibition, Dubai.

24-26 September (Tuesday-Thursday): Careers UAE 2024, Dubai World Trade Centre, Dubai.

24-26 September (Tuesday-Thursday): Gulfood Green, Dubai World Trade Centre, Dubai.

25-26 September (Wednesday-Thursday): Green Steel Summit, Dubai, UAE.

25-26 September (Wednesday-Thursday): Global Aerospace Summit, Abu Dhabi, UAE.

28-30 September (Saturday-Monday): World Association of Nuclear Operators (WANO) Biennial General Meeting, Abu Dhabi.

30 September (Monday): Dubai Podfest, World Trade Center, Dubai.

OCTOBER

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

15 October (Tuesday): Deadline for the European Commission to make a decision on its probe into e&’s acquisition of PPF’s Eastern European assets.

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

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

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

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

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

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

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

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

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

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

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

NOVEMBER

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

4-7 November (Monday-Thursday): Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC), Abu Dhabi.

4-7 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi.

4-7 November (Monday-Thursday): ADIPEC Decarbonisation Accelerator, Abu Dhabi.

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

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

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

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

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

20-22 November (Wednesday-Friday): Xpanse Abu Dhabi, Adnec Centre, Abu Dhabi

22-23 November (Friday-Saturday): Global Meet on Electronics & Electrical Engineering (GMEEE), Dubai.

23 November (Saturday): Wireless Festival Middle East, Etihad Park, Abu Dhabi.

23-24 November (Saturday-Sunday): Emirates Dubai Sail Grand Prix, SailGP Race Stadium.

26-27 November (Tuesday-Wednesday) Global Food Security Summit, Adnec Centre Abu Dhabi.

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

27-28 November (Wednesday-Thursday): RAK Energy Summit, Al Hamra International Exhibition and Conference Centre, Ras Al Khaimah.

28 November-1 December (Thursday-Sunday): Spartan World Championship, Al Wathba Desert, Abu Dhabi.

30 November (Saturday): Football Legends Cup, Al Maktoum Stadium Al Nasr Sports Club, Dubai.

Signposted to happen ahead of ADIPEC:

Changemakers Majlis, Abu Dhabi.

DECEMBER

2-3 December (Monday-Tuesday): National Day, public holiday.

5-8 December (Thursday-Sunday): Formula 1 Etihad Airways Abu Dhabi Grand Prix, Yas Marina Circuit.

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

9-10 December (Monday-Tuesday): The Bitcoin Mena Conference, Adnec Centre Abu Dhabi.

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

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

6 -12 January: Dubai Shopping Festival.

Signposted to happen sometime in December:

UAE-China Summit, Abu Dhabi.
Abu Dhabi Forum for Peace, Abu Dhabi.

JANUARY 2025

1 January (Wednesday): ADGM to slash licensing fees for retail and non-financial firms, and hike fees for finance firms.

9-13 January (Thursday-Monday): International Renewable Energy Agency Youth Forum, Abu Dhabi.

11-13 January (Saturday-Monday): International Renewable Energy Agency Assembly, Abu Dhabi.

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

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

FEBRUARY 2025

1-8 February (Saturday-Saturday): The Mubadala Abu Dhabi Open, Zayed Sports City's International Tennis Centre.

2-3 February (Sunday-Monday): L’Etape Dubai cycling race, Dubai.

24-25 February (Monday-Tuesday): World Passenger Experience Forum, Dubai.

24-26 February (Monday-Wednesday): Connecting Hydrogen MENA, Dubai.

Signposted to happen sometime in 1Q 2025:

The first eight fronds of the Palm Jebel Ali will be site-ready, allowing for the commencement of villa infrastructure and civil works.

APRIL 2025

6-11 April (Sunday-Friday): Geo-Spatial Week 2025, Dubai.

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

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

Signposted to happen sometime in April:

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

MAY 2025

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

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

JUNE 2025

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

OCTOBER 2025

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

Signposted to happen sometime in 2025:

The Middle East Electric Vehicle Show, Expo Center Sharjah.
e& will complete Adnoc’s private 5G network.
The International Civil Aviation Organization’s Global Implementation Support Symposium, Abu Dhabi.

Signposted to happen sometime in the fall of 2025:

2025 Games of the Future, Dubai.

Signposted to happen sometime in 2026:

The UAE to host the Arab Competition Forum
Dubai to host the Arab Actuarial Conference

Signposted to happen sometime in 2028:

Abu Dhabi to host the Chess Olympiad.

Signposted to happen sometime in 2029:

Dubai to host the International Conference on Computer Vision.

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