Dubai approves record budget for 2025-2027

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Covestro board likely to give its nod to Adnoc’s takeover bid

Good morning, friends. We have a packed issue for you this morning, with a fresh batch of earnings, a big potential M&A from Cyvn Holding, who’s eyeing an acquisition of McLaren, Dubai’s new budget for the next three years, and plans for an e-invoicing system. Let’s dive in.

WEATHER- The mercury peaks at 34°C in Dubai today, before cooling to an overnight low of 27°C. Over in Abu Dhabi, expect a high of 30°C and a low of 28°C.

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WATCH THIS SPACE-

#1- Covestro’s management signaled it will likely recommend Adnoc's EUR 14.7 bn (c. USD 16.3 bn) takeover bid to the company’s shareholders, subject to a final review of the offer, according to a statement from the German chemicals manufacturer. An official response to the acquisition bid will be issued “in the next two weeks,” Reuters reports.

In context: The acceptance period for Adnoc’s voluntary public takeover offer wraps up on 27 November. Adnoc has been in ongoing negotiations for the takeover, which is set to be the biggest acquisition from a Middle Eastern buyer in Europe in 16 years, for more than a year.

Also- Covestro turned profitable in 3Q 2024 as it logged EUR 33 mn, compared to EUR 31 mn in losses in the same period last year. The company generated EUR 3.6 bn in sales during the quarter, marginally up y-o-y from EUR 3.57 bn. In 9M 2024, Covestro saw its net losses jump 572.7% y-o-y to EUR 74 mn amid what it says was a challenging market environment.

#2- The UAE’s trade agreement with Vietnam is projected to add USD 8 bn to the local economy by 2032, Foreign Trade Minister Thani Al Zeyoudi told Wam (watch, runtime: 03:29). Vietnam is the UAE's largest non-oil trading partner in the Association of Southeast Asian Nations (ASEAN), with non-oil trade between both countries growing to USD 6.1 bn in 1H 2024, up 8.7% y-o-y.

The agreement will reduce tariffs on customs between the countries by 90%, Al Zeyoudi said, while phasing out tariffs on 99% of Vietnam's exports, Reuters reports, citing a Vietnamese Trade Ministry statement. Vietnam also pledged to remove tariffs on 98.5% of the UAE's exports.

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 told the news agency.

#3- UK developer Leos Developments launched a USD 7 bn investment fund in the UAE and is currently relocating its global headquarters to Dubai, CEO Rui Liu told Arabian Business. This fund will back the launch of 10 UAE-based projects in 2025. A portion of the fund is currently being used to develop projects in Meydan and Dubai Silicon Oasis, the company’s Chief Operating Officer Jake Jacobs said.

Remember- Leos Developments launched a AED 1.75 bn luxury residential development in Dubai’s Meydan called Knightsbridge last month.

DATA POINTS-

#1- Sharjah saw the number of issued and renewed licenses go up 16% in 3Q 2024 to 17.9k, the Sharjah Economic Development Department said in an X post. This included 15.8k renewed licenses and 2.1k new ones. Commercial licenses accounted for 11.3k of all issued and renewed licenses, professional licenses comprised 5.4k, and industrial licenses accounted for 873.

#2- Dubai saw a 45% increase in the number of new real estate investors in 9M 2024, adding 132k transactions worth AED 291 bn, according to media reports (here and here). Foreign investors accounted for the lion’s share of new investors in the sector with 106k transactions valued at AED 235 bn.

Dubai saw a 35% y-o-y increase in real estate transactions in 9M 2024 to 163k, with their value up 23% to AED 544 bn, Director-General of Dubai Land Department Marwan Ahmed bin Ghalita was quoted as saying by Al Bayan. Meanwhile, real estate sales rose 30% y-o-y to AED 376 bn.

#3- UAE issuers raised USD 11.7 bn through 28 issuances in 3Q 2024, leading the GCC bonds and sukuk market with a 42% market share, according to the Kuwait Financial Center (Markaz). On a nine-month basis, UAE entities raised USD 32.1 bn through 88 issuances, coming in second place after Saudi Arabia’s USD 47.8 bn issuances.

REMEMBER- The UAE was among the leading countries in terms of sukuk issuances in 1H 2024, amid increased demand and a shift towards expanding the non-oil sector.

HAPPENING TODAY-

#1- TheSharjah International Conference in Biotechnology (SICBiotech) is on its second day at the University of Sharjah, before it wraps tomorrow. The event will bring together leading scientists in biotechnology.

#2- TheHealthcare Future Summit is also on its second 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.

#3- Dubai will host the World Cities Cultural Summit from today 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.

#4- The Connected Construction Conference will kick off today at the Museum of the Future in Dubai, welcoming leaders, decision-makers, and BIM specialists from the construction industry to showcase new technological advancements and address challenges facing the sector.

#5- The Binance Blockchain Week will take place today and tomorrow in Dubai. The conference will welcome traders, builders, founders, institutional investors, regulators, global officials, and innovators to discuss the future of blockchain and Web3 technology.

#6- The Annual Islamic Finance Conference kicks off today at the DIFC Atrium in Dubai. The conference will host experts from the Islamic financial services sector and senior analysts to discuss the industry’s global outlook and growth potential.

#7- The two-day International Geotechnical Innovation Conference kicks off today at Le Meridien Dubai Hotel & Conference Center in Dubai. The event features discussions on advanced ground engineering, innovative geotechnical solutions, and an exhibition showcasing the latest technologies in geotechnical engineering.

THE BIG STORY ABROAD-

It’s another mixed day in the foreign press dominated by US elections news as Kamala Harris deliver her closing remarks ahead of elections, more strikes in Gaza and a worsening humanitarian crisis, and a smattering of business news courtesy of earnings season.

#1- Less than one week from the US elections, Harris doubled down on her fight against The Donald with closing remarks at the Ellipse, where Trump had rallied his supporters on 6 January to fight against his loss in the 2020 elections, resulting in the US Capitol riot. She said Trump was “unstable, obsessed with revenge, consumed with grievance and out for unchecked power,” a day after Trump’s rally in Madison Square Garden hit a lot of nerves due to racist remarks from his allies. (Reuters | CBS | Semafor | The Guardian)

#2- At least 93 Palestinians — at least 20 of whom were children — were killed in northern Gaza yesterday in an airstrike on a residential building, an attack which the US called “horrifying,” Reuters reports. The US envoy to the United Nations also said Israel is not tackling the “catastrophic humanitarian crisis” in Gaza, as it faces a looming deadline imposed on 13 October to facilitate aid into Gaza or potentially lose US weapons support, the Guardian reports separately.

ALSO GETTING ATTENTION- Hezbollah appointed a new successor to its slain leader Hassan Nasrallah, Naim Qasem, in a move showing “continuity” and “resilience,” experts say. (Bloomberg)

#3- A handful of earnings are getting attention:

Google owner Alphabet reported a 34% jump in net income on the back of strong performance from its cloud division — results that help appease investors’ concerns over the payoff of Big Tech’s investments in AI. (FT | CNBC | Reuters)
Visa also saw its net income jump more than expected in a positive indication of consumer spending, beating market estimates. (Reuters | CNBC | FT)

ALSO- For the fellow iSheep, have you seen Apple’s new releases? The tech giant released its new Mac Mini — the tiniest desktop machine in its history — as well as the M4 iMac, and rolled out its first Apple Intelligence software capabilities across iOS, iPadOS, and macOS a day earlier.

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Dubai ruler approves record AED 272 bn budget for 2025-2027

Dubai ruler signs off on emirate’s largest-ever three-year budget: Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum approved a record AED 272 bn budget for the emirate covering 2025-2027, marking the largest budget cycle in Dubai's history, according to a Dubai Media Office statement. The government projects AED 302 bn in revenues and AED 272 bn in expenditures during this period — which would net an operational surplus of 21% for the first time.

For 2025: Projected expenditure for the 2025 fiscal year is AED 86.26 bn, with revenues expected to total AED 97.7 bn. The final spending plan sets out a 9% y-o-y increase in expenditure compared to 2024’s budget of AED 79.1 bn. The government expects to achieve an operating surplus of up to 4% of 2025’s GDP.

Infrastructure is getting nearly half of the funds: The budget allocates 46% of spending to infrastructure, with projects including roads, tunnels, bridges, transportation systems, sewage stations, parks, renewables facilities, and a rainwater drainage network. It also includes work on the USD 35 bn expansion of Al Maktoum Airport.

The rest of the breakdown: Some 30% of spending will go towards social development, 18% to security, justice, and public safety, and 6% to public services and scientific research.

REMEMBER- The UAE cabinet also greenlit its largest ever federal budget for 2025 earlier this month. The budget sets out a 12% y-o-y increase in expenditure compared to 2024’s budget, with revenues also expected to grow 9% y-o-y to AED 71.5 bn.

Cyvn to snap up 100% of carmaker McLaren from Bahrain’s Mumtalakat?

Cyvn pursues McLaren Automotive buyout: Abu Dhabi-owned smart mobility-focused investment firm Cyvn Holding inked a non-binding agreement with Bahrain’s sovereign wealth fund Mumtalakat Holding Company to explore acquiring 100% of UK luxury sports car manufacturer McLaren Automotive, according to a statement [f]. The value of the potential transaction was not disclosed.

That’s not all: Alongside the full buyout of McLaren Automotive, Cyvn will acquire a non-controlling stake in McLaren Group. The transaction will also see McLaren benefit from Cvyn’s engineering expertise to accelerate its growth, particularly in EV innovation.

This is not the first time we hear about this: Bloomberg reported Cyvn’s interest as early as April, noting that Mumtalakat was keen on bringing in investors to help fuel McLaren’s expansion plans.

Cyvn likes cars for investment: The holding company pledged a USD 2.2 bn equity investment in Chinese electric vehicle manufacturer Nio back last December. The two firms recently partnered to launch Nio’s brand in the Mena region.

A long run: Mumtalakat became McLaren’s majority stakeholder 17 years ago, taking full control only last March.

The story got ink in Bloomberg and Reuters.

Mubadala's MDGH launches AED 1 bn sukuk, which was 2.3x oversubscribed

Mubadala Investment Company’s subsidiary Mamoura Diversified Global Holding (MDGH) launched a five-year AED 1 bn sukuk at a 4.6% yield yesterday, Zawya reports. The orderbook for the unsecured sukuk was 2.3x oversubscribed, attracting AED 2.3 bn worth of bids from investors, without including joint lead manager interest.

More on the issuance: Issued through MDGH Sukuk Limited’s new trust certificate program, the sukuk will be listed on the Abu Dhabi Securities Exchange (ADX) and London Stock Exchange.

REMEMBER- Mubadala's first Sharia-compliant issuance via MDGH was a USD 1 bn, 10-year sukuk priced at 70 basis points over US Treasuries, attracting USD 7 bn in orders.

ADVISORS- Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, ICBC, JP Morgan, and Standard Chartered Bank are serving as joint lead managers and bookrunners.

ADX, FTSE roll out Islamic index

ADX, FTSE Russell debut Shariah-compliant index: The Abu Dhabi Securities Exchange (ADX) and FTSE Russell launched the FTSE ADX 15 Islamic Index (FADXI15), their latest addition to the FTSE ADX Index Series, addressing rising demand for Shariah-compliant investments in the region, according to a press release (pdf). The new index provides Islamic finance investors with access to the top 15 ADX-listed Shariah-compliant companies, screened by IdealRatings.

The details: The index caps the largest company’s weight at 33%, with any remaining company weight not exceeding 18%.

What they said: “With over AED 2.6 tn market value of Shariah-compliant financial instruments, ADX is well-positioned to lead in this space, providing innovative products such as ETFs and guiding investors toward companies aligned with their values,” ADX Group CEO Abdulla Alnuaimi, said.

The index has been in the works for a while now: ADX disclosed that it was developing its own Islamic index in September, which will include an endowment shares service to donate shares for charitable causes. AlNuaimi confirmed to EnterpriseAM UAE that a new index is set for launch by late 2024 or early 2025.

Emirati stocks held a 13.12% share of the FTSE index across the MENA region as of the end of September 2024, Fiona Basset, CEO of FTSE Russell told Al Bayan.

Finance ministry amends VAT framework, paves the way for e-invoicing system

The finance ministry is gearing up to launch an e-invoicing system in 2026 after amending tax and VAT regulations, Wam reports. The new system — for which it just published a page on its website — aims to streamline invoicing processes for businesses and government entities, enabling immediate exchanges and tax reporting to the Federal Tax Authority (FTA).

What we know about the incoming system: Businesses will be required to issue invoices and credit notes electronically and maintain digital records as part of a phased rollout.

The amendments are step one of a longer process: The amendments authorize the ministry to issue necessary decisions for implementing the system, including tying VAT refunds with compliance with e-invoicing requirements. They also expand the definitions of tax invoice and tax credit note to encompass electronic invoices, along with introducing new definitions for electronic invoices and electronic credit notes.

What’s next? The finance ministry will issue new legislation updates outlining the implementation timelines for the e-invoicing system and specifying the businesses and transactions subject to the new regulations, Wam said. The website said more clarity on requirements and service providers will come in 4Q 2024, while legislation updates will be issued in 2Q 2025, according to the website. Phase one of the system will be rolled out in 2Q 2026.

GII completes USD 100 mn capital increase for GCC expansion

Gulf Islamic Investments raises USD 100 mn for GCC expansion: Dubai-based, Shariah-compliant investment firm Gulf Islamic Investments (GII) completed a USD 100 mn capital increase, with the funds earmarked for expansion into Saudi Arabia and the GCC, specifically in private equity and private credit projects, according to a press release.

Who’s in? The round, which was oversubscribed, saw participation from Saudi Arabia-based Al Nahdi Family Office, and the Sharjah Investment and Development Authority (Shurooq), among others.

Background: We first got wind of a USD 100 mn fundraising in July that Bloomberg had reported will help GII expand its operations across the Mena region and India.

GII has a longstanding relationship with the Kingdom: Dubai's GII has expanded its Saudi presence with a SAR 1 bn (USD 300 mn) logistics firm established in May, as well as acquisitions of an undisclosed licensed investment and asset management firm earlier this year, a SAR 600 mn (USD 160 mn) stake in Abdeel Medical Company, and a majority share of Al Meswak Dental Clinics for USD 600 mn in 2022.

OTHER INVESTMENT NEWS-

Toronto-based venture capital firm Raiven Capital tapped Maples Group to be its administrative fund services provider for its new DIFC-based VC fund, according to a press release (pdf). The fund’s target size is USD 125 mn, and it aims to invest in AI-based solutions, Internet of Things, and distributed ledger technology across several sectors.

e& capital backs US intelligent transportation system provider

e& capital invests in US ITS provider: US AI-powered intelligent transportation system (ITS) provider Derq secured “strategic investments” from e&’s venture capital arm, e& capital, and AT&T Ventures, according to a press release. The size of the commitments was not disclosed.

Where the money is going: The ITS provider will use the funds to expand its footprint in the US, GCC, and other markets, according to the statement. The funding will also be used to fast-track product development and boost the platform’s intellectual property portfolio.

More on Derq: Derq — an MIT spinoff — operates a platform using AI and IoT to provide road safety insights, traffic control capabilities, and advanced connected vehicle applications for road operators. The platform has over 25 active deployments across 16 US states and several international projects.

Masheq, Aldar Properties, Borouge, Phoenix, and more report 3Q 2024 earnings

MASHREQ-

Our friends at Mashreq saw their net income come in at AED 5.8 bn in 9M 2024, staying flat y-o-y, according to its earnings report (pdf). Net income before tax was up 9% y-o-y to AED 6.5 bn. Meanwhile, the lender’s total operating income for the period rose 15% y-o-y to AED 9.1 bn.

Driving the growth: “Principal drivers of this increase are strong business growth with healthy margins, the benign interest rate environment, and relative low risk costs,” the lender said, pointing to a 13% y-o-y increase in net interest income — which came in at AED 6.3 bn during the nine-month period — and a 21% y-o-y jump in non-interest income to AED 2.8 bn.

The lender reported AED 1.8 bn in net income after tax in 3Q 2024, marking a 21% y-o-y decrease on the back of the introduction of the corporate tax this year. The bank's total operating income increased 7% to AED 3 bn while its net interest and Islamic financing income rose 5% y-o-y to AED 2.1 bn.

The bank’s total assets rose 17% y-o-y to AED 254.4 bn by the end of September, with loans and advances growing 17% y-o-y to AED 168.1 bn. Customer deposits rose 17% y-o-y to AED 156.1 bn.

What they said: “Our strong performance in the first nine months of 2024 underscores Mashreq’s strategic direction and operational resilience in navigating dynamic market conditions,” Group CEO Ahmed Abdelaal said.

WATCH THIS SPACE- Mashreq will soon launch its Neo Corp platform in Qatar, as a part of the initial roll out, following its launch in Kuwait and Bahrain, according to Abdelaal.

ALDAR-

Real estate and investment firm Aldar Properties’ net income grew 41.3% y-o-y to AED 1.3 bn in 3Q 2024, according to its financial statements (pdf). The company’s revenues rose 61.4% y-o-y to AED 5.6 bn this quarter on the back of improved sales — especially internationally — and the launch of new luxury developments, according to the company’s earnings release (pdf).

On a 9M basis, net income increased 52.3% y-o-y to AED 4.6 bn, while revenues increased 69% y-o-y to AED 16.5 bn. The increase in real estate demand contributed to the improvement in sales, which grew 24% y-o-y during the nine months to AED 24 bn. The developer also saw high occupancy rates in residential and retail properties and a rise in rental rates across commercial facilities, with a record backlog of AED 48.6 bn.

This nine-month performance was also driven by strategic mergers and acquisitions made in 2022 and 2023 which supported the bottom line. These investments included acquiring UK property developer London Square in an AED 1.1 bn transaction in December 2023.

BOROUGE

Abu Dhabi–based petrochemical company Borouge’s net income rose by 16.3% y-o-y to USD 328 mn in 3Q 2024, according to its financial statements (pdf). The polyolefins manufacturer’s revenues increased 7% y-o-y to USD 1.6 bn in this quarter. This performance was driven by “record production levels, the highest achieved quarterly sales, and robust pricing for premium products,” according to an earnings release (pdf).

On a nine-month basis, net income increased 27.3% y-o-y to USD 908 mn, while revenues climbed by 2.6% y-o-y to USD 4.4 bn. The company’s strong financials support its commitment to pay the final 2024 dividend of USD 650 mn in March 2025, after distributing USD 650 mn in interim dividends for 1H 2024.

The firm’s board approved a USD 500 mn revolving credit facility, according to an ADX disclosure (pdf) which did not disclose details on who’s providing the facility or where proceeds will go.

PHOENIX

Phoenix Group reported a net income of USD 47.5 mn in 3Q, down 50.6% y-o-y, according to the company's financial statements (pdf). The company reported USD 35.9 mn in revenues, down about 47.8% y-o-y, on the back of the company’s strategy to deploy most of its inventory to their self mining business, according to its earnings release (pdf). Net income got a boost from unrealized gains on digital assets.

In terms of 9M 24, the company reported a net income of USD 169.8 mn, up 17.6% y-o-y. The company’s revenues fell 31.9% y-o-y to USD 156.1 mn during the period.

NATIONAL BANK OF FUJAIRAH-

The National Bank of Fujairah (NBF) saw its net income after tax grow 15.6% y-o-y to AED 209.3 mn in 3Q 2024, on the back of cost management and improvement in impairment positions as it looks to shield itself against a falling interest rate environment, it said in its earnings release (pdf). Operating income for the quarter came in at AED 623.6 mn, up 8.9% y-o-y, according to separate financial statements (pdf). The lender’s net interest income and income from Islamic financing rose to AED 445.8 mn in the quarter, up 3% y-o-y.

In 9M 2024, the lender’s net income after tax increased 26.7% y-o-y to AED 650.4 mn. Operating income over the nine-month period rose 8.4% y-o-y to AED 1.8 bn, with net interest income and income from Islamic financing and investment activities seeing a 5.6% y-o-y increase during the period to reach AED 1.3 bn.

MULTIPLY GROUP-

Abu Dhabi-based investment firm Multiply Group posted a 410.5% y-o-y surge in its bottom line to AED 744.2 mn in 3Q 2024, according to its financials (pdf). Multiply Group’s revenues climbed 47.1% y-o-y to AED 517.5 mn during the quarter, on the back of 9% y-o-y “organic growth across all verticals and the consolidation of BackLite Media, The Grooming Company Holding, and Excellence Premier Investment,” the firm said in its earnings release (pdf).

On a nine-month basis, Multiply Group reported a net loss of AED 2.5 bn during 9M, down from a net income of AED 545.8 mn during the same period last year. The group’s revenues rose 50.6% y-o-y during the first nine months of the year to reach AED 1.4 bn.

Abu Dhabi figures absent from Riyadh’s FII amid heightened competition + the emirate made it to NatGeo’s top 25 destinations of 2025

Bloomberg is covering the absence of prominent Abu Dhabi figures at Saudi Arabia’s Future Investment Initiative this year, amid rising competition between Abu Dhabi and Riyadh for the position as the region's top financial hub. Abu Dhabi has introduced lifestyle perks to enhance its appeal over Riyadh and is hosting its own financial summit, Abu Dhabi Finance Week, the business information service reports.

PLUS- National Geographic listed Abu Dhab as one of the top 25 global destinations for 2025, citing the emirate's new museums as major attractions. The magazine highlighted the Saadiyat Cultural District, which is already home to the Louvre Abu Dhabi and will soon introduce the Zayed National Museum, which focuses on the UAE’s history. The Guggenheim Abu Dhabi, designed by Frank Gehry, is also set to open, adding to the city’s cultural offerings.

Investcorp Capital expands US industrial real estate portfolio with new acquisitions

REAL ESTATE-

#1- ADX-listed, Abu Dhabi-based alternative investment manager Investcorp Capital acquired new US industrial assets, bringing its industrial real estate portfolio to a total of 625 buildings, according to a press release. The acquisitions include:

Waterside Business Park, including eight multi-tenant light industrial buildings spanning 279.8k sq ft in Tampa, Florida;
Dallas & Atlanta Infill Portfolio, featuring 16 buildings covering 597.2k sq ft in Dallas-Fort Worth and Atlanta;
West Coast Infill Portfolio, featuring 17 buildings covering a total of 539.9k sq ft across Denver, Las Vegas, San Diego, and the San Francisco Bay Area;
Diversified Data Center Portfolio, including six data centers across key US data hubs, totaling 4 mn sq ft.

#2- Luxury real estate developer Amali Properties broke ground on the AED 2 bn Amali Island, a luxury development located within The World Islands off the coast of Dubai, according to a press release. The project is slated for completion in 1Q 2027. Amali Properties unveiled its first beachfront community, Amali Island, in May.

ENERGY-

#1- Abu Dhabi-based Arab Development (Ardeco) and Schneider Electric launched a new production facility for energy solutions, Taqana Energy Solutions, in the Industrial City of Abu Dhabi (ICAD), according to media reports (here and here). No further details were provided on the investment size or production capacity of the facility.

#2- Dubai Holding’s Nakheel partnered with Dubai Electricity and Water Authority to build two electricity substations worth AED 270 mn on Palm Jebel Ali, according to the Dubai Media Office. The two substations will have a total capacity of 400 MVA, aiming to cover a major portion of Palm Jebel Ali’s electricity needs.

AVIATION-

#1- Dubai’s flag carrier Emirates reinstated its daily flight service between Dubai and Australia’s Adelaide, providing over 4.2k weekly seats for passengers and over 220.4k annual seats, according to the Dubai Media Office.

#2- Dubai’s flag carrier Emirates inked two MoUs with Vietnamese carriers VietJet and Vietnam Airlines to boost connectivity between the UAE and Vietnam, according to a statement. The partnership between Emirates and VietJet will see the two airlines promote travel between the two countries and increase flight connectivity to popular destinations in VietJet’s domestic and regional network, while the agreement with Vietnam Airlines will focus on cargo cooperation.

#3- Etihad adds direct flights to El Alamein: Abu Dhabi’s flag carrier Etihad Airways is launching a new direct route to El Alamein, connecting the UAE with the Egyptian coastal city starting July 2025, Wam reports.

RETAIL-

Modon Holding to expand Lulu Retail’s footprint: State-owned developer Modon H olding inked an agreement with LuLu Group ‘s retail arm, Lulu Retail, to develop and operate retail facilities — including hypermarkets, supermarkets, and other outlets — in the UAE and Egypt, according to an ADX disclosure (pdf).

ENTERTAINMENT-

The General Commercial Gaming Regulatory Authority (GCGRA) handed out the first gaming-related vendor license to Aristocrat, an Australian gambling machine manufacturer, according to a statement. The license allows Aristocrat to supply its land-based electronic gaming machines, online games, and technology solutions to GCGRA-licensed gaming operators in the UAE.

ICYMI- The UAE has been ramping up its push into the gaming sector: The GCGRA awarded the UAE’s first commercial gaming operator's license to Wynn earlier this month, after the UAE issued a regulatory framework for the gaming sector in July. The authority also awarded the UAE’s first lottery license to commercial gaming and lottery operator The Game in July.

BUSINESS-

Dubai, Geneva to support bilateral expansion of their companies: Dubai Chamber of Digital Economy inked an MoU with the Geneva Chamber of Commerce, Industry, and Services to support cross-border expansion of Geneva-based and Dubai-based companies, Wam reports. The MoU also includes plans for launching a joint platform for cross-cultural training and capacity building for conducting business across different cultures and languages.

CYBERSECURITY-

Cybersecurity firm Anxinsec established its global headquarters at the Abu Dhabi Global Market, according to the Abu Dhabi Media Office. Anxinsec chose Abu Dhabi due to its cybersecurity infrastructure and access to a diverse talent pool, alongside major tech firms like Amazon Web Services, G42, Bespin Global, and Microsoft.

DEBT-

Equitativa redeems USD 105 mn sukuk: Equitativa, the manager of Emirates NBD’s real estate investment trust, Emirates REIT, redeemed USD 105 mn of the trust’s USD 380 mn sukuk certificates yesterday, according to a bourse disclosure. With Equitativa’s outstanding sukuk now standing at USD 199.7 mn, Emirates REIT is now able to exercise the one-year extension option on its sukuk, which required reducing the outstanding balance to USD 230 mn by 12 December this year.

Background: Equitativa redeemed USD 19.27 mn of Emirates REIT’s USD 380 mn sukuk certificates in August after selling the Trident Grand Mall. It had also redeemed USD 56 mn of the sukuk in March 2023.

BANKING-

Digital-first Islamic bank ruya will provide Shariah-compliant digital banking solutions for businesses in Ras Al Khaimah Economic Zone (Rakez), Wam reports. This comes under an MoU signed between ruya and Rakez, which will also offer other services to Rakez members such as rapid account setup with no minimum balance requirements.

LOGISTICS-

AD Ports will work with Vietnamese Vingroup to modernize Vietnam’s ports and logistics infrastructure, according to a press release. The partnership will see AD Ports oversee operations and global customer onboarding, while Vingroup will be in charge of project development and local partnerships. Both firms will work to secure funding for the potential projects.

HSBC reports strong 3Q results + plans a fresh USD 3 bn stock buyback

HSBC posted pre-tax net income of USD 8.5 bn in 3Q 2024, rising 10.4% y-o-y, according to its earnings release. The improvement was fueled by growth in wealth and personal banking and gains across foreign exchange, equities, and global debt markets. However, net interest income dropped by USD 1.6 bn due to increased funding costs and asset sales. Operating expenses rose 2% to USD 8.1 bn, driven by technology investments and inflationary pressures. The bank completed the distribution of USD 4.8 bn to shareholders for last quarter’s results, which will bring HSBC’s total payouts in 2024 to USD 18.4 bn.

The lender also announced a new stock buyback of “up to” USD 3 bn, which is expected to wrap before its full-year earnings are released in February, according to the earnings release. The buyback announcement comes as the bank’s earnings came in stronger than expected, Bloomberg says. The bank “has already handed USD 34.4 bn to shareholders in the past 18 months, much of it in the form of stock buybacks, which have become one of the bank’s preferred ways to distribute capital to its investors,” the business information service notes.

Market reaction: HSBC’s shares closed up 3.9% in London yesterday, according to market data. The shares hit an intraday high of 4.9%, Bloomberg says.

ICYMI- Last week, HSBC unveiled a major restructuring plan to merge its global commercial and investment banking units and reorganize its geographical division to create standalone units for Hong Kong and the UK, while combining Asian Pacific and Middle East operations into one Eastern division. However, HSBC’s Chief Georges Elhedery refuted any suggestions that these moves are leading to a break up of the banking group, The Guardian said. “This is not either a precursor or an intent or a preparation for any split,” he said.

OVER IN THE US OF A- Top Wall Street executives — including the chief executives of Goldman Sachs, Morgan Stanley, and Standard Chartered, among others — doubt the US Federal Reserve will enact more than one more interest rate cut by year-end, Bloomberg reports. Speaking at a panel at the Future Investment Initiative forum in Riyadh, the executives signaled that further cuts are unlikely to be as significant as traders predict.

Traders anticipate that the Fed might implement two more rate cuts this year, potentially lowering the rate to c. 3.5% by the end of 2025 — following the first rate reduction in September. While Goldman Sachs CEO David Solomon said future predictions are difficult to make until after the US presidential elections are through “and we get a clear sense of policy actions,” BlackRock CEO Larry Fink suggested that cuts may not come quickly or deeply, especially given persistent high inflation.

MARKETS THIS MORNING-

Japan’s Nikkei is among the only Asia-Pacific indexes in the green in early trading this morning, while the Hang Seng Index, mainland China’s Shanghai Composite, and South Korea’s Kospi are all in the red.

Over on Wall Street, futures suggest that markets will open in the green after the S&P 500 and Nasdaq both closed up yesterday.

ADX	9,312	+0.1% (YTD: -2.8%)
DFM	4,583	+1.0% (YTD: +12.9%)
Nasdaq Dubai UAE20	3,836	+0.3% (YTD: -0.2%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.7% o/n	4.4% 1 yr
TASI	12,062	+0.1% (YTD: +0.8%)
EGX30	30,620	-0.5% (YTD: +23.0%)
S&P 500	5,833	+0.2% (YTD: +22.3%)
FTSE 100	8,220	-0.8% (YTD: +6.3%)
Euro Stoxx 50	4,950	-0.4% (YTD: +9.5%)
Brent crude	USD 71.12	-0.4%
Natural gas (Nymex)	USD 2.35	+1.6%
Gold	USD 2,787	+0.2%
BTC	USD 72,491	+4.1% (YTD: +71.5%)

THE CLOSING BELL-

The DFM rose 1.0% yesterday on turnover of AED 456.5 mn. The index is up 12.9% YTD.

In the green: Amlak Finance (+11.9%), Deyaar Development (+6.0%) and Dubai Investments (+2.9%).

In the red: Emirates Reem Investments Company (-5.9%), Emirates REIT (-2.3%) and Union Coop (-2.2%).

Over on the ADX, the index also rose 0.1% on turnover of AED 1.1 bn. Meanwhile, Nasdaq Dubai closed up 0.3%.

UAE and Singapore boost investment, development, and education cooperation

Singapore and the UAE inked several MoUs to boost work on education, development, and AI, during Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan visit to the country, according to the Abu Dhabi Media Office. The Emirates Nuclear Energy Corporation and Singapore’s Energy Markets Authority also signed an MoU for cooperation in peaceful nuclear energy development, while the Abu Dhabi Global Market Arbitration Center and Singapore International Arbitration Center signed a MoU to enhance arbitration cooperation.

ALSO- Mubadala Capital and Singapore-based asset management firm Seviora Holdings signed a MoU to boost cooperation and explore new investments.

President meets Russian Security Council Secretary to boost cooperation: President Sheikh Mohamed bin Zayed Al Nahyan met with Russian Security Council Secretary Sergei Shoigu yesterday to discuss ramping up bilateral cooperation and joint initiatives, Wam reports. The meeting also covered various regional and international issues of mutual concern.

CALENDAR

OCTOBER

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

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

30 October (Wednesday): 14th Annual Islamic Finance Conference, DIFC Atrium, 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.

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.

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.

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.

27 November: Acceptance period for Adnoc’s Covestro takeover bid ends.

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.

26-27 November (Tuesday-Wednesday): Global Women’s Forum Dubai, Madinat Jumeirah, Dubai

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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