IMF sees the economy growing 5.1% next year

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WHAT WE’RE TRACKING TODAY

THIS MORNING: ADNH Catering debuts on the ADX + Cafu ventures into the EV space

Good morning, friends, and happy hump day. We have a brisk issue for you as we hit the halfway mark of the week, with updates from Mubadala Capital and EasyLease, as well as news that the IMF has hiked its growth forecast for the UAE for next year and that the UAE is eyeing big renewables investments in India. Let’s dive in.

WEATHER- There’s still a chance of clouds and rain today, especially in the eastern and northern emirates. Dubai will see a high of 37°C and a low of 29°C, according to our favorite weather app. Meanwhile, a sunny Abu Dhabi will see a high of 33°C and an overnight low of 29°C today.

WATCH THIS SPACE-

UAE bankers expect LuLu Group’s retail portion of its IPO to receive an unprecedented level of orders, Gulf News reports. The IPO’s current retail allocation stands at 10%; however, bankers are expecting LuLu to hike the retail portion to meet the expected demand. The retail tranche is expected to generate AED 460 mn in orders, potentially placing LuLu at “the highest nominal value for any UAE retail tranche allocation since 2021,” Research Head at Al Ramz Capital Amer Halawi said.

Background: Supermarket chain LuLu Group is taking taking 25% of its retail business public on the ADX. The IPO could potentially raise some USD 1.7-1.8 bn (AED 6.24-6.61 bn), Zawya has reported, while Bloomberg said the IPO could value the company at USD 5 bn “at least.” The investors’ subscription period runs between 28 October and 5 November, while shares are expected to commence trading on 14 November.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- You can soon use Cafu to charge your EV in the UAE after the fuel retailer launched its EV-charging service, according to a press release. Cafu will offer both an on-demand, mobile EV charging station and a mobile pop-up self-service, trailer-based charging option. Both services will feature fast-charging capabilities and are compatible with all EV models.

#2- Dubai clamps down on traffic violations: Drivers who violate traffic laws will be subject to having their vehicles impounded for anywhere between 14-30 days under new regulations from the Dubai Police published in the official gazette.

#3- Residents with a 10-year streak of visa compliance will qualify for rewards starting next month, courtesy of a new scheme launched by the General Directorate of Residency and Foreigners Affairs in Dubai (GDRFA-Dubai), The National reports. The benefits include access to special counters at Amer centers for faster visa processing, priority for Amer call center requests, and home services for visa requirements for the elderly.

How to apply? Residents must sign an obligation certificate on the GDRFA-Dubai website, which will then be verified by immigration officials. Eligibility covers residents, those under sponsorship, and individuals with work visas, as well as to Emiratis who have sponsored workers with clean records over the 10-year period.

DATA POINT-

The UAE saw the second highest investment banking fees in 9M 2024 across the Mena region with USD 396 mn in fees, seeing no y-o-y change, according to LSEG Deals Intelligence’s report (pdf). Saudi Arabia came out on top with USD 471 mn in investment banking fees during the period.

HSBC took the lead in terms of investment banking fees with USD 80.4 mn in fees generated, followed by Standard Chartered at USD 56.5 mn and First Abu Dhabi Bank at USD 56 mn.

The UAE was the largest target market for M&As in terms of value among other Mena peers in 9M 2024, with transactions valued at USD 11.1 bn, up 55% y-o-y, the report showed.

HAPPENING TODAY-

#1- It’s day two of the Brics summit in Kazan, Russia, which runs until Thursday with President Sheikh Mohamed bin Zayed Al Nahyan in attendance. This marks the UAE’s first participation in the summit since its formal admission as a member last year.

#2- The UAE is participating in the International Monetary Fund and World Bank GroupAnnual Meetings, which kicked off on Monday in Washington, DC. The UAE Finance Ministry will host the UAE Banks Reception on the sidelines to build connections between the UAE’s public and private sectors and international financial institutions. The meetings wrap up on Saturday.

What to expect: Our Planet Finance from earlier this week laid out the big themes to look out for and the global challenges structuring the conversation.

#3- Abu Dhabi National Hotels’ catering unit ADNH Catering’s shares are set to debut on the ADX today. The company raised AED 864 mn after taking a 40% stake to the market, with the offering “multiple times” oversubscribed. This gives the company a market cap of AED 2.2 bn.

THE BIG STORY ABROAD-

It’s a mixed bag on the front pages of the foreign press today, with more talk of a potential ceasefire in the region continuing as US Secretary of State Antony Blinken touches down in Jerusalem for a meeting with Prime Minister Benjamin Netanyahu, more US elections news, and a smattering of business updates.

Blinken and Netanyahu agreed that the killing of Hamas Leader Yahya Sinwar over the weekend opens up possibilities for the end of the war in Gaza, though the meeting seemed to yield no clear plans for what’s to come, Bloomberg reports.

Israel confirmed for the first time that it had killed Hezbollah’s suspected successor, Hashem Safieddine, in airstrikes on Lebanon earlier this month, along with another Hezbollah commander. (Financial Times | NY Times | The Guardian)

OVER IN THE US- It’s not a great time for The Donald, who just two weeks ahead of elections is still behind in polls that put rival Kamala Harris marginally in the lead. A Republican appeal of a decision blocking a new rule that would have required poll workers to hand-count ballots was also blocked by a top Georgia court. Meanwhile, Trump is accusing the UK Labor Party of “foreign interference” and aid of Harris’ campaign. (BBC | FT | The Guardian)

IN BUSINESS NEWS- A few headlines are getting attention:

Former Abercrombie & Fitch CEO Mike Jeffries has been charged with running a trafficking ring during his time as CEO. (Reuters | BBC | CNN)
Starbucks has scrapped its guidance as it reported a decline in sales and revenues ahead of schedule. (FT)
McDonald’s shares fell by 10% after the fast food franchise was linked to a fatal E. coli outbreak in the US that killed at least one person and left 10 others in hospital. (FT)

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CIRCLE YOUR CALENDAR-

Dubai will host the International Conference on Tourism, Transport, and Logistics on 26-27 October. The event will gather scientists, scholars, and engineers from around the world to discuss new ideas and research development projects in the industry.

The IEEE – International Conference on Image Processing will take place between 27-30 October at Adnec Centre Abu Dhabi. The image and video processing and computer vision conference will be attended by researchers, academics, and global industry professionals.

The MENA Climate Proof Forum is scheduled to take place on 28-29 in Dubai. The event will address regional-specific climate challenges, with the aim of accelerating action and readiness for climate-related disasters.

TheSharjah International Conference in Biotechnology (SICBiotech) will take place between 29-31 October at the University of Sharjah. The event will bring together leading scientists in biotechnology to present their latest findings.

The Healthcare Future Summit is set to take place at the Dubai World Trade Center from 29-31 October, according to a statement. in disease management and AI integration to streamline vaccine distribution.

Dubai will host the World Cities Cultural Summit from 30 October to 1 November. 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.

The Connected Construction Conference will kick off on 30 October 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.

The Binance Blockchain Week will take place on 30-31 October 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.

The Dubai Precious Metals Conference will take place on 18-19 November at the Jafza One Convention Center. The event will gather experts and business leaders to discuss trends and challenges facing the precious metals industry.

Gulfood Manufacturing will take place between 5-7 November at the Dubai World Trade Center. The event will showcase trends and solutions in global food manufacturing, with more than 2.5k companies set to attend.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

IMF hikes growth forecast for the UAE for 2025, maintains outlook for 2024

The International Monetary Fund (IMF) has revised upwards its growth forecast for the UAE in 2025 to 5.1%, up from its earlier forecast of 4.2% growth in April, according to the fund’s latest World Economic Outlook (pdf). The Fund maintained its 4% outlook for 2024.

ICYMI- The IMF revised upward its 2024 growth forecast for the UAE to 4% in May. The fund had previously penciled in 3.5% growth for 2024 in its World Economic Update report in April.

How this compares: The Central Bank of the UAE is more optimistic about growth in 2025, penciling in 6.2% growth in June supported by the Opec+’s increase of the UAE’s oil production quota. The World Bank expects economic growth to accelerate to 4.1% in 2025, while Oxford Economics is more optimistic, saying the domestic economy could grow 5.6% next year.

The UAE is bucking the global trend: The IMF revised downwards its forecast for global growth next year to 3.2%, a 0.1 percentage point downward revision from its July estimate, on the back of escalating geopolitical tensions and trade protectionism.

The IMF sees inflation growing at a 2.3% clip in 2024 before decelerating to 2.1% next year, a slight upward revision from the 2.1% it forecast in May and the 2.0% forecast in April.

The current account surplus will come in at 8.8%, a few notches below the 9% penciled into its May forecast.

The broader Middle East and Central Asia region is expected to grow at a 2.4% clip in 2024, before seeing growth accelerate to 3.9% in 2025, according to the report.

Mubadala Capital closes USD 3.1 bn private equity fund

Mubadala’s asset management subsidiary Mubadala Capital raised USD 3.1 bn for its fourth private equity fund, surpassing its initial USD 2 bn target, according to a press release. The fund will focus on middle-market companies in various sectors, including media, sports and entertainment, consumer and food services, financial services, and business services.

Who contributed to the fund? New and existing limited partners, including US pension funds, university endowments, ins. plans, sovereign wealth funds, asset managers, and family offices across North America, Europe, the Middle East and Asia.

The fund will focus on USD 150-350 mn tickets per investment, with plans to raise that amount to USD 500 mn for ideas it finds exceptional, the Financial Times reports. It currently manages USD 24 bn in investments, mainly fueled by external investors.

The fund already has a few companies in its portfolio: The company completed its acquisition of a 68% majority stake in US asset manager Fortress, and acquired Canada Cartage in 2022, before later snapping up a majority stake in the stroller manufacturer Bugaboo Group in July 2024. The fund also counts Thrive Foods among its investments.

Solving a liquidity problem: “We are seeing a lot of limited partners are short on liquidity and there is a focus on realizations by a lot of funds, and that’s driving interesting opportunities for those of us who are well capitalized,” Mubadala Capital CIO Oscar Fahlgren told FT.

UAE to invest in 60 GW renewables projects in India

The UAE inked an investment MoU with the Rajasthan government to explore a 60 GW renewable energy project in the Indian state, focusing on solar, wind, and hybrid energy in Rajasthan’s western district, according to a statement (pdf). The project has a total investment ticket of INR 3 tn (AED 131.1 bn), according to details picked up by the Economic Times.

Background: The Investment Ministry signed an MoU with India’s New and Renewable Energy in February to ramp up investment in the renewable energy sector.

The investment comes in a bid to contribute to India’s climate goals, aiming to reduce carbon intensity by 45% by 2030 and achieving net-zero emissions by 2070. “Rajasthan, with its favorable climate and vast landmass, offers the ideal environment for this initiative,” said Investment Minister Mohamed Hassan Alsuwaidi.

What’s next? The UAE will appoint a developer to implement the project, in collaboration with Indian authorities.

The UAE and India have been ramping up energy cooperation: Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed’s visit to India in September led to some major energy agreements. Adnoc signed a 15-year agreement to supply 1 mn metric tonnes of LNG per year to IndianOil, primarily sourced from its Ruwais LNG project. Adnoc also extended its oil storage agreement with India’s Strategic Petroleum Reserve. In the nuclear energy arena, Emirates Nuclear Energy Corporation handed India’s Nuclear Power Corporation operation and maintenance rights for the Barakah nuclear power plant.

EasyLease acquires 51% stake in Gallega Global Logistics

EasyLease makes another acquisition: Motorcycle lessor and International Holding Company (IHC) subsidiary EasyLease acquired a 51% stake in Dubai-based Ghassan Aboud Group’s multi-sector logistics services provider Gallega Global Logistics for an undisclosed sum, according to a statement.

Details: EasyLease will gain access to Gallega’s existing infrastructure, including 3.5 mn sqft of logistics infrastructure in Abu Dhabi, as well as other the firm’s facilities in Dubai, according to the statement. The acquisition will allow EasyLease to expand its service offerings and enter new markets, it added. Both companies are looking to invest in advanced mobility technologies and AI.

EasyLease has been on an acquisition spree: EasyLease acquired in April a 60% stake in UAE-based Alserkal Group subsidiary and transportation technology solutions provider United Trans. The firm also snapped up in December a 60% stake in Ripe, which offers various services including container and commercial kiosk rentals. It also acquired a 60% stake the same month in UAE-based electric charger manufacturing and installation company Fully Charged, to increase decarbonization in last-mile delivery across the UAE and the region.

Sanad sells AED 1.5 bn aircraft engines to Etihad Airways

More aircraft engines for Etihad: Sovereign investment fund Mubadala’s aerospace engineering and leasing subsidiary Sanad finalized an agreement to sell 16 aircraft engines to Etihad Airways, valued at approximately AED 1.5 bn, according to a press release.

REMEMBER- Etihad Airways has been pushing forward with its expansion plans as it gears up for an IPO next year. The airline plans to double its fleet size and triple passenger numbers by 2030, adding 16 aircraft to its 92 fleet in 1H, and said it was expecting to add more than 20 new generation aircraft to its fleet in the next 18 months. Etihad’s parent company ADQ is reportedly going after both a traditional IPO and direct listing on ADX no sooner than in 2025, with the offering expected to raise as much as USD 1 bn.

Impact on Sanad: The company sees revenues reaching AED 4.5 bn by year-end, after seeing some AED 3.4 bn in revenues in 9M 2024, Sanad’s CEO Mansoor Janahi, told CNBC Arabia (watch, runtime: 6:55) in an interview.

WATCH THIS SPACE- The company is planning to launch a fifth maintenance line on 18 November with an investment of AED 100 mn, Janahi said. Sanad plans to boost its capacity to 172 engines this year, and more than 200 engines next year, he added.

Etihad Airways and Sanad go way back: Sanad provided maintenance, repair, and overhaul services (MRO) for over 400 aircraft engines in Etihad Airways’ fleet. To date, the total value of MRO transactions between Sanad and Etihad Airways exceeds AED 6 bn.

Prypco secures USD 10 mn in seed funding

Dubai-based proptech start-up Prypco closed a USD 10 mn seed funding round led by Abu Dhabi-based VC Shorooq Partners, according to a statement (pdf ). Apparel Group and other investors also participated in the round.

Where’s the money going? Prypco plans to use the funding to scale its operations and expand its offerings.

About Prypco: Founded in 2022 by Amira Sajwani (LinkedIn), the startup features four verticals:

Prypco Blocks is a Dubai Financial Services Authority-regulated fractional ownership platform, allowing investments starting at AED 2k. It has fully funded nine properties since launch;
Prypco Mortgage provides easy home loans, disbursing a record AED 500 mn in a single month in September 2024;
Prypco Exclusives offers brokers access to over 250 secondary property listings across more than 70 projects;
Prypco Golden Visa streamlines the process of securing long-term residency in the UAE.

What investors see: Prypco’s “innovative approach, particularly in fractional ownership, democratizes access to property investment, creating new [windows] for a diverse range of investors,” said Shorooq founding partner Mahmoud Adi.

Sharjah Executive Council approves AED 400 mn drainage project, real estate provisions, and industrial license fee reduction extension

The Sharjah Executive Council (SEC) issued decisions impacting infrastructure projects, real estate legal regulations, and industrial licenses, in its weekly meeting chaired by the emirate’s deputy ruler and crown prince, Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, Wam reports.

The council approved the first phase of the Middle Line Project to drain rainwater and groundwater. The project — which will cost some AED 400 mn — involves extending the main water drainage line by 4.9 km and a depth of 20 m. It will also strengthen pumping station infrastructure in the emirate. Upon completion, this Middle Line Project will help connect 13 areas and five main roads.

The SEC also issued a set of legal provisions regulating all real estate project activities starting from May 2025, including the establishment of a bank guarantee account to preserve the rights of all sides. Plus: It agreed to extend the 50% fee reduction on industrial licenses for one year.

G42 taps new CSO + Abu Dhabi Chamber of Commerce adds members to the arbitration board. AND: ADIB appoints new head of trade

G42 appointed Ali Dalloul (LinkedIn) as its group chief strategy officer, based out of the US, Wam reports. Dalloul brings 26 years of experience from Microsoft, where he led AI commercialization and enterprise adoption efforts. Most recently, he served as VP of Azure AI Customer Experience Engineering.

He’s also taking the reins as CEO of G42’s US operations, where he will oversee projects across multiple product lines.

Ali Saeed bin Harmal Al Dhaheri (LinkedIn) was appointed as the chairman of the Abu Dhabi Chamber of Commerce and Industry’s Abu Dhabi International Arbitration Center’s board (arbitrateAD), alongside his current position as First Vice Chairman of the Abu Dhabi Chamber, according to a statement. He brings over 23 years of management experience, in addition to founding Abu Dhabi University in 2001.

Abu Dhabi Islamic Bank (ADIB) appointed Mohammad Miladi (LinkedIn) as its new head of trade as of 15 October, Global Trade Review reports. Miladi previously worked at ADIB from 2018 until mid-2021, before moving to Arab African International Bank as head of trade structuring and product development. He replaces Mohamed Rashad (LinkedIn), who joined Sharjah Islamic Bank in August as head of trade finance.

Miladi reports to ADIB’s acting Head of Global Transaction Banking, Yousaf Ahmad (LinkedIn).

More on the UAE’s private credit, crypto, and LNG ambitions. PLUS: LuLu’s IPO gets more attention

It’s a busy week in the foreign press so far, with LuLu’s IPO getting attention, alongside the UAE’s rising influence in the private credit, crypto, and LNG spaces.

#1- CNBC interviewed supermarket chain LuLu’s CEO Saifee Rupawala about its anticipated ADX IPO and expansion plans in the GCC. These plans include setting the UAE and Saudi Arabia as the main target markets, with plans to open 40 stores and expand into 31 cities in the Kingdom.

#2- Meanwhile, Bloomberg is looking at Abu Dhabi’s foray into private credit as part of its diversification efforts, best illustrated by Mubadala’s USD 3 bn takeover of Fortress in May and its backing of Blue Owl, which owns a stake in HPS Investment Partners.

#3- Crypto was also in the spotlight, with a Reuters piece on European hedge fund management Brevan Howard ramping up its crypto trading operations in the UAE, drawn to what the hedge fund’s group head of compliance, Ryan Taylor, called “sensible regulations.” Nearly USD 2 bn of its USD 30 bn portfolio is allocated to crypto, with a “significant” share of the trading done from the Emirates, Taylor said, without specifying the exact figures.

WATCH THIS SPACE- Dubai’s hedge fund momentum is also growing, with the Dubai International Financial Centre (DIFC) set to welcome five more hedge funds in the coming weeks, raising the total registered funds from 65 to 70, Reuters quotes Jonathan Beardall, DIFC’s head of wealth and asset management, as saying.

#4- UAE emerges as big LNG competitor: Reuters also came out with an exclusive with Qatar’s Energy Minister Saad al-Kaabi, who acknowledged heated competition from the UAE, the US, and Oman in the liquefied natural gas (LNG) market. Japanese and South Korean buyers are turning to these suppliers due to their flexible contract terms and lower prices, al-Kaabi said.

Emirates NBD joins Partior’s blockchain platform for cross-border payments

BANKING-

Emirates NBD is joining Partior’s blockchain-based, interbank network for clearing and settlement of cross-border payments, becoming the first regional bank to offer settlements in AED, SAR, and INR on the platform, according to the Dubai Media Office. The lender will aim to support settlements for major foreign currencies.

ALSO- Emirates NBD is mulling an equity investment in Paritor, the statement said, without disclosing the investment size. The platform, launched in 2021, is backed by DBS Bank, JP Morgan, Standard Chartered, Temasek, and Peak XV.

ENERGY-

Douglas OHI lands civil works contract for an Abu Dhabi gas compressor facility: UK energy services company Petrofac awarded Omani construction firm Douglas OHI a contract to carry out civil works for a gas compressor plant at Abu Dhabi’s Habshan Complex, Douglas said in a post on LinkedIn. The plant is owned by Adnoc, and is set to ramp up gas output from the Habshan Complex.

MANUFACTURING-

International Energy Resources to build an MRO facility for aircraft gas turbines: Dubai-based energy services company International Energy Resources partnered with Mohammed Bin Rashid Aerospace Hub to set up a maintenance, repair, and overhaul (MRO) facility for aircraft gas turbine engines at Dubai South, according to the Dubai Media Office. The facility will also feature an engine test cell for aero engines and aero-derivative industrial engines, with an initial annual capacity to test up to 50 engines.

The facility will be constructed in two phases, scheduled to be completed by 4Q 2026 and 3Q 2027.

REAL ESTATE-

#1- Sharjah-based developer Arada has launched sales for W Residences at Dubai Harbour in partnership with Marriott International, which will operate the mixed-use complex, according to a press release. The AED 5 bn seafront development features three towers housing over 400 apartments. The project is scheduled to be delivered in 2027.

#2- Kasco Group’s real estate arm Kasco Developments will kick off construction on its debut project, the ONDA tower in Dubai’s Business Bay, in 4Q 2024, according to a press release (pdf). The AED 500 mn, 23-story, freehold community building features 348 units. It includes studios, and one- to three-bedroom apartments. Construction is set to wrap up by 2Q 2027.

Remember- The developer said last month it plans to invest an initial AED 1.2 bn in three projects primarily in Business Bay and Al Jaddaf as it plans to develop and sell 1 mn sq ft of residential space by 2025.

#3- Arista Properties contracted construction firm New System Engineering to develop Wadi Villas project in District 11, Dubai Meydan City, according to a press release. The AED 500 mn development will feature 30 residences, including four- to six-bedroom villas. Construction began in July this year, with the architectural design being handled by HbArchitecture and the landscaping by Coopers Hills.

HEALTHCARE-

Swiss data-driven healthcare firm Sophia Genetics will launch its services in the UAE, among other Gulf markets through its partnership with Gulf Scientific Corporation (GSC), according to a press release. The partnership will see GSC represent Sophia across the UAE, Saudi Arabia, Oman, Qatar, and Bahrain. The company uses AI to assist healthcare providers in prescribing treatment options for patients of rare and inherited diseases, including cancer.

INVESTMENT-

Real estate investment and advisory firm Medallion Associates launched an institutional investor desk in Dubai as it seeks to capitalize on the city’s real estate boom, according to a press release. The move aims to draw institutional capital through collaboration with investment consultants, advisors, and placement agents.

TECH-

#1- US blockchain platform Sui opened a web3 hub in Expo City Dubai in partnership with Ghaf Group to offer local Web3 startup founders access to workshops, technical support, community events, funding, and needed expertise, according to a press release. The hub is the first in a series of global hubs to support blockchain developers and entrepreneurs.

More to come: Sui plans to launch an accelerator program in 4Q 2024 in collaboration with Brinc, CoinList, Sui and Ghaf Group.

STARTUPS-

The Dubai International Financial Centre launched Ignyte, a digital platform aimed at supporting over 100k start-ups, according to a statement. The initiative connects startups with 5k venture capitalists and investors, 5k vetted mentors, and over 500 corporate and government partners, and features 5k exclusive perks, including cloud credits, and productivity tools. It aims to help startups save over USD 100 mn.

HSBC’s Mideast operations will report in to Asia as bank launches ambitious restructuring

HSBC’s Middle East operations will be paired up with Asia Pacific as Europe’s biggest lender kicks off its first major restructuring in a more than a decade under new CEO Georges Elhedery, who was named CEO in April and took the helm in September. The bank announced the restructuring in a disclosure to the London Stock Exchange (pdf) early yesterday morning, saying all the changes go into effect 1 January 2025.

What’s happening in our region? What HSBC presently calls the MENAT (Middle East, North Africa, Turkey) region will now be part of an “Eastern Markets” unit along with the former Asia-Pacific region, reporting in to David Liao (and HSBC veteran and member of Hong Kong’s elite) and Surendra Rosha. HSBC Middle East CEO Stephen Moss will leave the bank, as will Europe chief Colin Bell.

Other changes at HSBC: It will create a new “wholesale” or corporate and investment banking group by merging its commercial banking business with its global banking and markets team and its other Western markets. It’s also doubling down on international wealth and premier banking, particularly in the Middle East and Asia.

The result: A streamlined structured and fewer people sitting around the exco table as HSBC looks to grow in the West while capturing the globally critical corridor between Asia and the Middle East. From 1 January, HSBC will have four businesses: Hong Kong, the UK, corporate and institutional banking, and international wealth and premier banking. It will also have its first woman CFO (Elhedery’s last post before becoming CEO) and will downsize and rebrand its top executive committee, which contracts to 12 members from 18 and will now be called the “group ’’operating committee.”

Why does it matter here? HSBC is an influential player in MENA with a substantial footprint. It banks large regional corporates, multinationals, and the affluent through commercial banking operations across Egypt and the UAE and through SAB in Saudi Arabia. It’s also a sought-after advisor and arranger of capital and debt raisings across the region:

It recently quarterbacked Arabian Mills’ Tadawul IPO and is working now on the IPOs of LuLu Retail (ADX) and UIHC (Tadawul);
It provides or arranges debt and equity for regional banks (most recently joining a sustainability-linked facility for Al Rajhi and an AT1 capital raise for Dubai Islamic Bank);
It is advising on everything from privatization sales in Egypt to KAFD’s ambitions to raise USD 750 mn to fuel its growth as the latter mounts a challenge to DIFC.

Why is it happening? Elhedery (bio) is a regional veteran who was previously based in Dubai as regional head of global markets and later as CEO for the MENAT region. He took over in September from CEO Noel Quinn and is now reshaping an institution that some argue has become too organizationally complex. Quinn and others on his team were against the move to a wholesale banking model (with corporate and investment banking under one division), which has been debated inside HSBC off-and-on for some time.

COVERAGE- The news leads the front pages of the financial press this morning: Financial Times | Reuters | Bloomberg | New York Times DealBook.

MARKETS THIS MORNING-

The Nikkei is flat this morning despite Tokyo Metro shares gaining 45% in their market debut — it’s Japan’s biggest IPO in six years, raising the equivalent of USD 2.3 bn. The Hang Seng, Shanghai Composite, and ASX 200 were up slightly as traders digested signals that Wall Street’s rally may have stalled.

The opening bell: Equities futures suggest you can expect major in Europe as well as on Wall Street and Bay Street to come under moderate selling pressure when Western markets open later this morning.

ADX	9,246	-0.3% (YTD: -3.5%)
DFM	4,467	-0.2% (YTD: +10.0%)
Nasdaq Dubai UAE20	3,768	-0.1% (YTD: -1.9%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.7% o/n	4.3% 1 yr
TASI	11,957	-0.4% (YTD: -0.1%)
EGX30	30,427	-0.1% (YTD: +22.2%)
S&P 500	5,854	-0.2% (YTD: +22.7%)
FTSE 100	8,307	-0.1% (YTD: +7.4%)
Euro Stoxx 50	4,939	0.0% (YTD: +9.2%)
Brent crude	USD 75.63	+1.8%
Natural gas (Nymex)	USD 2.30	-0.5%
Gold	USD 2,763	+0.9%
BTC	USD 67,474	-0.4% (YTD: +60.0%)

THE CLOSING BELL-

The ADX fell 0.3% yesterday on turnover of AED 1.17 bn. The index is down 3.5% YTD.

In the green: Ras Al Khaimah Co for White Cement & Construction Materials (+4.8%), Chimera S&P KSA Shariah ETF-Share Class B-Income (+3.5%) and Phoenix Group (+3.1%).

In the red: Umm Al Qaiwain General Investments Company (-9.4%), Hayah Ins. Company (-7%) and EasyLease (-5.5%).

Over on the DFM, the index fell 0.2% on turnover of AED 326.1 mn. Meanwhile Nasdaq Dubai closed down 0.1%.

CALENDAR

OCTOBER

20-23 October (Sunday-Wednesday): The International Congress and Convention Association (ICCA) Congress, Abu Dhabi National Exhibition Centre, Abu Dhabi.

20-24 October (Sunday-Thursday): The NBE Egyptian Super Cup, Mohammed bin Zayed Stadium and Al Nahyan Stadium, Abu Dhabi.

23 October (Tuesday): ADNH Catering’s shares begin trading on ADX.

24 October (Thursday): Game Changers – Dubai Real Estate Summit, Coca-Cola Arena, Dubai.

24 October (Thursday): Foreseeing Government Audit Future, Madinat Jumeirah, 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.

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

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

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.

30-31 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.

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.

10 November (Sunday): American Boarding School Fair 2024, Grosvenor Hotel, Dubai Marina, Dubai.

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.

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.

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

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

22-24 November (Friday-Sunday): Michelin Guide Food Festival, Emirates Palace Mandarin Oriental, Abu Dhabi.

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

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

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

26-28 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.

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.

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.

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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