Non-oil business picks up in October

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WHAT WE’RE TRACKING TODAY

THIS MORNING: MAF shuts down Carrefour stores in Jordan, opens up new retail chain + Dubai is getting a new sewage fee structure

Good morning, friends. It’s a big day over in the US of A as polls close, with things slightly calmer here at home as Adipec enters its third day. But we have PMI data on the UAE and Dubai in October, as well as an ambitious new national investment strategy targeting AED 2.2 tn in FDI by 2031. There’s also a slew of energy news out of Adipec. Let’s dive right in.

WEATHER- Expect some more clouds and fog today, with Dubai looking at a high of 35°C and a low of 28°C. Over in Abu Dhabi, temperatures will peak at 30°C and hit a low of 28°C.

WATCH THIS SPACE-

#1- The GCC IPO market saw a rise in proceeds in 3Q 2024, despite having fewer IPOs compared y-o-y, according to PwC Middle East’s IPO Watch (pdf). The increase was led by NMDC Energy’s listing, which raised AED 3.22 bn and was 31x oversubscribed, marking the UAE’s biggest listing so far this year. The other three listings in the regional markets this quarter took place on Saudi Arabia’s parallel market Nomu.

The aftermarket performance for this year’s IPOs has remained robust, with most of the 10 biggest listings trading above their initial offering prices.

The outlook for the GCC IPO market is positive, according to PwC, which cites a healthy pipeline for IPOs in the region from companies from a diverse range of sectors

The bond market recorded USD 4.4 bn worth of issuances in 3Q, up 30% y-o-y, according to PwC. Meanwhile, some USD 5.2 bn in Sukuk were issued, with 88% listed on Nasdaq Dubai and the Qatar Stock Exchange. GCC governments accounted for nearly 65% of sukuk and bond issuances.

#2- MAF shuts down Carrefour-branded stores in Jordan + launches new supermarket chain: Dubai-based conglomerate Majid Al Futtaim (MAF) shut down its Carrefour stores in Jordan, replacing them with a new Jordanian retail chain, according to a statement. The new chain — Hypermax — will see the first store inaugurated today at City Mall in Amman. The store will be the first of 34 that the brand plans to roll out across the Kingdom. Hypermax will focus on providing locally sourced food products and household essentials.

The rationale: While the company did not reveal the reason behind the closure, the move follows a campaign by the Boycott, Divestment, and Sanctions (BDS) movement in Jordan targeting the retailer for its position on the current conflict in Gaza. The company operates 375 Carrefour stores across 15 countries and owns the rights to operate the brand in over 30 countries in the Middle East, Africa and Asia. Bloomberg also had the story.

#3- Mubadala Energy and PLN eye gas power project in South Andaman: Mubadala Energy and Indonesia's Perusahaan Listrik Negara (PLN) inked an agreement to explore power generation from the South Andaman blocks to address Indonesia’s energy demand and for infrastructure development, according to a press release. The entities will conduct a joint study to examine potential gas processing and transportation.

This follows Mubadala’s discovery of over 8 tn cubic feet of natural gas at the Layaran and Tangkulo fields in North Sumatra in South Andaman, offshore North Sumatra, Indonesia, earlier in May, marking the company’s second deepwater find in South Andaman, following one at the Layaran-1 well in December of last year. The company wrapped up its drilling campaign in South Andaman in September.

Umm Al Qaiwain is stepping up its logistics game: Umm Al Quwain Crown Prince Sheikh Rashid bin Saud bin Rashid Al Mu’alla announced the establishment of a Logistics City and a Cargo Airport during the UAE Government Annual Meetings 2024, Wam reports. .

DATA POINTS-

#1- UAE banks’ total capital and deposits rose by 10.5% y-o-y to reach an all-time high of AED 502.6 bn in July 2024, according to a Central Bank of the UAE’s (CBUAE) statement (pdf). Meanwhile, total investments by banks increased by 19.3% y-o-y to AED 691.2 bn.

#2- The Supreme Committee for Urban Planning allocated over 17.4k residential land plots to citizens since the launch of Dubai 2040 Urban Master Plan in March 2021, Wam reports.

#3- Bond and sukuk issuances in the UAE reached USD 294.4 bn in 3Q 2024, up 13.1% y-o-y, Fitch Ratings’ Managing Director and Global Head of Islamic Finance Bashar Al Natoor told Wam. Sukuk comprised 20% of total issuances — making the UAE the world’s fourth largest sukuk issuer, with a 6.6% share of the global sukuk market. Regionally, the UAE ranks second in the GCC for total outstanding sukuk with a 16.2% share.

AED-denominated issuances made up 21.1% of total issuances by 1H 2024, bolstered by the government’s AED-focused monetary policy, Al Natoor explained. The UAE also leads in USD-denominated debt issuance among emerging markets (excluding China), trailing only Saudi Arabia and Brazil.

The debt market is forecast to surpass USD 300 bn by the end of 2024, Al Natoor said.

PSAs-

#1- Sewage fees are getting more expensive: Dubai Municipality greenlit a new sewage fee structure — its first update in 10 years — to keep pace with a rising population and encourage water conservation, according to a Dubai Media Office statement. The new tariff system will be rolled out gradually over the next three years, with the structure outlined below:

1.5 fils per gallon starting in 2025;
2 fils per gallon starting in 2026;
2.8 fils per gallon starting in 2027.

The new tariff still sits below the global average, Dubai authorities said.

#2- Sharjah authorities approved a budget of over AED 75 mn to cancel citizen debt, according to a statement . The approved amount is designated for the 27th batch of payments, aimed at settling the debts of 158 individuals, including those convicted in financial cases and deceased insolvent. This latest batch takes the total payouts to AED 1.2 bn.

HAPPENING TODAY-

#1- LuLu Retail will set the final price for its IPO today, after boosting the size of the offering to 30% amid heightened demand that saw order books fully subscribed within the first hour of opening. Shares will start trading on 14 November.

#2- Adipec is on its third day today and runs through to tomorrow at Adnec Center in Abu Dhabi. The event — the biggest oil and gas forum in the world — brings together over 40 ministers and over 200 C-suite executives and technology leaders from the Middle East, Asia, Africa, Europe, and the Americas, focusing on innovation and partnerships to advance the energy transition.

#3- The 2024 UAE Government Annual Meetings are on their final today in Abu Dhabi, chaired by Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum, according to the Dubai Media Office. The meetings bring together over 500 dignitaries, including UAE rulers, crown princes, and government officials to discuss means for enhancing the country’s government performance and competitiveness. The meetings wrap tomorrow.

This year’s agenda features new organizational priorities and frameworks, with national retreats focusing on identity, family, and AI, and panel sessions to review national priorities and strategies for economy and investment, AI, education, sports, family, and community empowerment. Dedicated sessions for young government leaders are also on the roster, alongside exclusive local government meetings for Ajman, Umm Al Quwain, and Ras Al Khaimah.

#4- Gulfood Manufacturing is on its second day today and runs through to Thursday 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.

#5- GulfHost is also on its second day at the Dubai World Trade Center and run through to Thursday. The event will feature over 350 exhibitors showcasing innovations in hospitality and foodservice equipment, along with networking opportunities for more than 25k industry professionals.

#6- Design Next exhibition is on its second day at the Dubai Design District as part of Dubai Design Week and wraps up Sunday, 10 November. The event showcases sustainable design solutions and features discussions by industry leaders.

#7- The WHO’s latest Emergency Medical Teams (EMT) Global Meeting starts today at Conrad Abu Dhabi Etihad Towers, marking the first time the event is hosted in the Middle East. Organized in partnership with Abu Dhabi’s Department of Health, the meeting aims to advance global emergency response and rapid deployment capabilities. It will wrap this Thursday, 7 November.

#8- Dubai is hosting the World Finance Forum 2024 today at Sofitel Dubai The Palm. The event will welcome CFOs and finance directors from leading companies to discuss emerging trends, growth prospects, and potential challenges in the financial landscape.

#9- The UAE BioTech Symposium is on its final day in Masdar City. The event discusses the latest developments in biotechnology, with participants including researchers, entrepreneurs, government entities, and strategic investors.

THE BIG STORY ABROAD-

No surprises here: Election Day in the US is fully dominating news coverage in the international press this morning, as polls close and the ballot counting continues. The counting is likely to take several days, particularly as this year’s elections are closely contested and several states are “too close to call” and likely to hinge on the results from the country’s seven swing states — Georgia, North Carolina, Pennsylvania, Arizona, Michigan, Nevada, and Wisconsin.

What we know so far: Donald Trump is so far in the lead, with victories in Texas and Florida — each of which have a large number of electoral votes — as well as a smattering of other states. Kamala Harris has secured a victory so far in Washington, D.C., Vermont, and Massachusetts, among others. Trump is looking likely to secure the overall vote, although Harris still has a path to victory if she manages to come out on top in Pennsylvania, Michigan, and Wisconsin. Meanwhile in the Senate, the Republican Party has so far gained a seat and is closing in on a majority.

You can check out live results from the Associated Press, Reuters, the New York Times, the Wall Street Journal. The Financial Times and Bloomberg also have coverage.

IN NON-ELECTION NEWS- Israeli Prime Minister Benjamin Netanyahu fired Defense Minister Yoav Gallant and appointed Israel Katz — who was foreign minister — in his stead. Gideon Saar is now Israel’s foreign minister in Katz’s place. Netanyahu’s decision to fire Gallant — a move he was reportedly considering for weeks — is due to the two disagreeing on critical issues, including Gallant supporting a ceasefire and hostage release agreement with Hamas in Gaza. The former defense minister was also pressing for an investigation into the country’s security failures in Hamas’ 7 October attack, and opposes a law that would allow ultra-Orthodox Jews to be exempt from mandatory military service. Reuters, the Financial Times, Axios, and Bloomberg have the story.

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Non-oil business activity saw slight pickup in October

Non-oil business activity saw a slight acceleration in growth during October, driven by an overall increase in business activity as companies pushed to meet rising demand and contain backlogs, according to S&P Global’s UAE Purchasing Managers’ Index (pdf). The UAE’s headline PMI rose to 54.1 from 53.8 in September, still above the 50.0 threshold separating growth from contraction, but below the readings of 1H 2024.

Despite increased new work intakes in October, demand momentum declined to its weakest level in 20 months, as some firms reported a drop in sales due to elevated market competition. Meanwhile, business activity grew at its highest clip since April, with companies raising output to meet sales volumes and maintaining strong client numbers. On the downside, the growth in employment came at its mildest rate in 2.5 years on the back of softened new business growth.

This deceleration signals that “the non-oil economy is losing strength after a robust growth period in late 2023/early 2024,” according to S&P Senior Economist David Owen.

On the bright side, competition is catching up with prices: Input cost inflation declined due to a slowdown in purchase prices and salaries. This development led to a reduction in average selling prices for the first time since April as firms looked to stay competitive amid rising competition.

Backlogs are easing, but still indicate a healthy pipeline of work: The rise in backlogs is easing up due to improvement in supplier delivery times and rapid consumption of delivered inputs to keep up with orders, keeping stock levels at similar margins compared to the previous month. Heavy work backlogs and ongoing contracts are positive signs that the non-oil economy will continue to grow in the upcoming months even if sales decrease, Owen said.

Business sentiment shifted to a slightly more optimistic outlook, yet remaining at one of its lowest levels this year. The positive expectations are driven by firms becoming increasingly confident in demand growth, due mostly to strong sales pipelines. However, uncertainty and high competition are still causing caution.

MEANWHILE, IN DUBAI-

Dubai’s PMI saw slower growth in comparison to the UAE, falling to a three-month low of 53.2 in October, down from 54.1 in September. New business intakes increased by the lowest rate since early 2022 on the back of strong competition and challenging market conditions, leading to a slowdown in employment growth. Meanwhile, output growth rose to a five-month high in the emirate.

Average selling prices dropped for the first time since April due to strong competition, despite an increase in input costs.

ELSEWHERE IN THE REGION-

Saudi Arabia’s business activity rose to a six-month high of 56.9 (pdf) in October, up from 56.3 in September, on the back of a sharp increase in sales and expansions in business and purchasing activity.
Egypt’s non-oil private sector activity marginally improved to 49 (pdf) in October from 48.8 in September — still below the threshold separating growth from contraction — as strong cost pressures continue to prop up selling prices.

UAE unveils new strategy to triple FDI by 2031

The UAE aims to triple foreign direct investment (FDI) to AED 2.2 tn by 2031 under a new national investment strategy, Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum said on X. The strategy was unveiled on the sidelines of the 2024 UAE Government Annual Meetings, which are on their final day in Abu Dhabi.

This is a big boost from earlier targets: The UAE had initially aimed for AED 550 bn in foreign investment by 2031, with plans to scale that up to AED 1 tn by 2051.

What we know: The strategy targets priority sectors like advanced manufacturing and renewable energy, and will aim to expand FDI in existing projects, strengthen international partnerships, enhance investor relations, and boost the UAE’s competitiveness, according to a Dubai Media Office statement.

How we’re faring so far: The UAE attracted around USD 30.7 bn (AED 112.6 bn) of FDI inflows for greenfield projects in 2023, representing 45.4% of total foreign direct investment inflows in the region, according to UNCTAD data. It also led with USD 225 bn (AED 826.3 bn) in cumulative FDI balances, comprising 21% of total incoming balances across the region. The country ranked first globally in attracting FDI relative to its GDP in 2023.

Adipec day two: Adnoc signs agreements in AI, well control, and carbon capture

The second day of Adipec was dominated by news from Adnoc, with the energy giant signing a slew of agreements with major companies to boost its operations, expand AI deployment, and advance its climate targets. We have a rundown of the agreements below.

AI-

UAE energy giants partner with Microsoft to advance AI deployment: Adnoc and renewables firm Masdar signed a strategic collaboration agreement with Microsoft to advance AI tech and low-carbon initiatives focused on decarbonizing the global energy sector, according to a press release.

Masdar to power Microsoft’s data centers with renewables: The companies will look into possibilities of powering Microsoft’s data with renewable energy sources from Masdar. They will also explore the use of AI in carbon capture and storage projects and low-carbon ammonia and hydrogen projects.

ICYMI- Adnoc and Microsoft are expanding their collaboration, launching on monday the first autonomous AI solution, dubbed EnergyAI, in collaboration with state-owned AI firm G42, and AIQ. The AI agent is set to increase the accuracy of production forecasts by up to 90%.

Remember: Microsoft is a key AI partner for the UAE, with the company investing USD 1.5 bn in G42, and pledging to set up artificial intelligence centers in Abu Dhabi.

WELL CONTROL-

Adnoc to digitize 2k wells under USD 920 mn contract: Adnoc has awarded a USD 920 mn contract to Chinese Jereh Oil & Gas Engineering Corporation for the digitization of over 2k oil wells at its Bab, Bu Hasa, and Southeast fields, according to a press release. Slated for completion by 2027, the program aims to boost operational efficiency and optimize the performance of the wells through remote monitoring.

More on the project: The project will be implemented using Adnoc’s private 5G network and AI tech, including Adnoc-Presight-G42 JV AIQ’s AI-powered autonomous well control system, RoboWell.

Background: Adnoc has been planning to expand the tech for some time, initially to 300 wells in its onshore and offshore fields. The expanded project now includes the three fields, following the implementation of RoboWell across 10 wells in its offshore Nasr field. Adnoc previously used RoboWell for its first smart field, dubbed NEB field, in 2023.

CARBON CAPTURE-

Adnoc is set to expand its carbon-to-rock project in Fujairah after successfully mineralizing 10 tonnes of carbon dioxide into rock formations in Fujairah in under 100 days, in collaboration with Omani carbon removal and mineralization outfit 44.01, according to a press release. The scaled-up project will see Adnoc and 44.01 aim to mineralize over 300 tonnes of carbon “over a longer duration” by capturing the greenhouse gas from the atmosphere, dissolving it in seawater, and injecting it into underground rock formations in Fujairah.

Background: Adnoc partnered with 44.01 to pilot the CO2 mineralization technology last year as part of a USD 15 bn investment to cut its carbon footprint. Adnoc’s carbon management strategy targets capturing 10 mn tons of carbon annually by 2030.

CIRCLE YOUR CALENDAR- Next year’s Adipec will take place on 3-6 November in Abu Dhabi, Wam reports.

Fujairah is getting an AED 2.2 bn biofuel processing facility

M&M launches new biofuel facility: Singapore-based Energy trader Mercantile & Maritime Group (M&M) is launching an AED 2.2 bn biofuel processing facility at its Mena Terminals facility in Fujairah, according to a statement. The facility is scheduled for completion in 2026, and is set to be the largest facility of its kind in the Middle East region.

The details: The biofuel facility at Mena Terminals will be expanded by over 1 mn sqft, and will produce up to 150 mn liters of sustainable aviation fuel (SAF) annually — approximately 10% of current global SAF production.

What they said: “By producing SAF locally, we are reducing the nation’s reliance on imports, thereby lessening carbon emissions and minimizing environmental impact across the entire supply chain, including traditional shipping methods. Alternatively, we will utilize the local rail network to transport SAF across the UAE, with future plans for regional distribution,” CEO Murtaza Lakhani said in the statement.

ADIB to offer fractional sukuk to retail investors

ADIB to launch fractional sukuk with a min USD 1k investment: Abu Dhabi Islamic Bank (ADIB) is set to debut fractional sukuk after successfully trialing the offering under the supervision of the Securities and Commodities Authority (SCA), according to a statement. With a minimum investment of USD 1k instead of the typical USD 200k, the fractional sukuk will help a wider pool of retail investors access the market.

About the new offering: In collaboration with the federal government’s RegLab, the authority tested several “flexible” regulations for the fractional sukuk tech, which digitally divides corporate sukuk into smaller portions. This enables individual investors to pool their funds and purchase fractional shares of high-value corporate sukuk.

What’s next? With the trial phase now complete, RegLab will develop a legislative framework for the sukuk tech.

REFRESHER- Emirates Islamic debuted the region’s first fractional sukuk in April, allowing investors to access the market with a minimum investment requirement of USD 25k.

UAE’s CE-Ventures co-leads USD 10 mn seed round for US biotech firm CrossBridge Bio

Sharjah-based CE-Ventures, the VC arm of Crescent Enterprises, has co-led a USD 10 mn seed funding round for US-based biotech firm CrossBridge Bio, according to a press release. CE-Ventures co-led the funding round with Texas Medical Center Venture Fund and saw participation from Portal Innovations and Alexandria Ventures, in addition to other pre-seed investors.

Where will the money go? CrossBridge Bio will use the USD 10 mn investment to develop its flagship treatment CBB-120, as a potential treatment for solid tumors. The proceeds will also go towards expanding the company’s pipeline of dual-payload antibody-drug conjugates tech to “maximize therapeutic effectiveness by delivering targeted therapies directly into cancer cells, minimizing potential off-target effects,” CrossBridge Bio CEO Michael Torres said.

About CE-Ventures: The VC arm has invested over USD 500 mn in over 50 firms, focusing on high-growth companies in technology and life sciences, particularly in the fields of novel therapeutics and microbiome-based therapies, according to a separate press release.

Navigating the complex terrain of Islamic banking: challenges, growth, and digital disruption

Contrary to the misconception that Islamic and conventional banking operate in isolated silos, we see banking as a holistic system, where Islamic principles coexist with modern banking needs. However, implementing Islamic banking comes with unique challenges, that we continuously strive to overcome.

One of the biggest hurdles is the intricate regulatory landscape that governs Islamic banking. Unlike conventional banking, where processes are relatively streamlined, we face an additional layer of scrutiny. Every product or service must satisfy not only our internal Sharia governance team but also external authorities like central banks and global bodies like the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). These regulations, though necessary, often add more layers and make Islamic banking less agile compared to conventional models.

For instance, a central challenge is the documentation process. Islamic contracts are notably more complex and voluminous, which places an additional burden on both the bank and the customer. While we ensure that this doesn’t impact the customer’s experience and shariah governance, it’s a reality we must navigate.

Another growing trend shaping the industry is the integration of Environmental, Social, and Governance (ESG) criteria. Last year, the central bank introduced new ESG requirements, mandating Islamic banks to adhere to higher standards even before conventional institutions. While ESG is undeniably the future of finance, implementing these measures on top of existing Islamic principles adds another layer of complexity. We’re in active discussions with regulators to find a more balanced approach, allowing us the time to integrate these elements without stifling growth.

In a competitive market dominated by giants, Mashreq has found its competitive edge through digital innovation. The major players may have more capital, but they lag in digital agility. We’ve invested heavily in building a robust digital ecosystem, allowing us to offer seamless, frictionless experiences to our customers—especially in retail banking, where we’ve been recognized as the Best Digital Islamic Bank for two years running.

But the future is not just in retail. We are expanding our digital capabilities into corporate banking, where the traditionally relationship-driven model is undergoing a transformation. Through digital onboarding and enhanced trade and working capital services, we aim to lead in corporate Islamic banking as well.

Despite the rapid growth of fintech in Islamic finance, the focus has been narrowing, often limited to payment solutions. This misses a significant opportunity to digitize more complex banking services, such as mortgages, trade finance, and working capital management. Fintech companies willing to tackle these challenges will find eager partners in Islamic banks like Mashreq, as we seek to streamline processes and enhance customer experiences across the board.

At Mashreq, we’re embracing the challenges, from regulatory hurdles to ESG mandates, while focusing on digital innovation as our differentiator. The road ahead is complex, but by staying agile and forward-thinking, we are poised to redefine Islamic banking for the modern age.

Ibrahim Al Mheiri

Head of Islamic Banking, Mashreq

DIB, ADNH, Apex, and more report 3Q earnings

DUBAI ISLAMIC BANK-

Dubai Islamic Bank (DIB) saw its net income climb 20.9% y-o-y to AED 2.1 bn during 3Q 2024 on the back of a strengthening balance sheet, according to its financial statements (pdf) and earnings release (pdf). The lender reported an 8.9% y-o-y increase in its top line to AED 5.7 bn during the three-month period.

The bank recorded AED 5.5 bn in net income in 9M 2024, marking a 12.9% y-o-y increase, on the back of “improving operating conditions and continued strong underwriting on new business,” Group CEO Adnan Chilwan said. DIB’s top line rose 16.8% y-o-y to AED 17 bn during the nine-month period.

ABU DHABI NATIONAL HOTELS-

Abu Dhabi National Hotels (ADNH) saw net income fall 38.9% y-o-y to AED 30.2 mn in 3Q 2024, according to the company's consolidated financials (pdf). ADNH's revenues rose 131% y-o-y to AED 694.5 mn.

On a nine-month basis: ADNH's net income after tax rose 308.8% y-o-y to AED 1.2 bn on the back of the recognition of a fair value gain of AED 916 mn from the acquisition of its remaining stake in its JV with Compass Group, ADNH Compass, according to a separate earnings release (pdf). The company's revenues also rose 73.1% y-o-y to AED 1.9 bn, which was mainly attributed to the consolidation of the catering unit and the full acquisition of ADNH Catering earlier this year from Compass Group.

APEX INVESTMENT-

Apex Investment saw its net income fall 84.9% y-o-y to AED 28.1 mn in 3Q 2024, according to the company's financials (pdf). The company's revenues fell 11.7% y-o-y to AED 197.5 mn.

On a nine month basis: Apex turned to the black in 9M, with a net income of AED 51.1 mn, up from a net loss of AED 12.5 bn last year. Apex booked an 18.5% y-o-y revenue increase to AED 622.7 mn on the back of new contracts acquired with Adnoc in 2023, and an increase in sales volumes of cement and clinker compared to the previous year, according to a separate earnings release (pdf).

BURJEEL HOLDINGS-

Healthcare services provider Burjeel Holdings’ net income rose marginally to AED 137.4 mn in 3Q 2024, according to its financials (pdf). The company’s revenues increased by 14.1% y-o-y to AED 1.3 bn in this quarter, driven by 12% growth in patient footfall and improved patient yield, according to its earnings release (pdf).

On a 9M basis, net income declined by 15.4% y-o-y to AED 306.2 mn, while the revenue increased by 11.7% y-o-y to AED 3.7 bn.

UNION COOP-

Union Coop’s net income after tax rose 16.9% y-o-y to AED 49.6 mn in 3Q 2024, according to its financial statements (pdf). The company logged AED 430 mn in revenues from sale of goods during the quarter, up 4.5% y-o-y. On a nine-month basis, Union Coop’s net income rose 19.7% y-o-y to AED 212.7 mn, while income increased to AED 1.4 bn during the first nine months of the year, up 5% y-o-y.

DAE signs lease agreements with Eastar Jet for three Boeing 737-8 aircraft

AVIATION-

#1- DAE + Eastar Jet ink lease agreements: Dubai Aerospace Enterprise (DAE) signed lease agreements with South Korea’s Eastar Jet for three new Boeing 737-8 aircraft, according to a press release. The aircraft are scheduled for delivery in mid-2025 and 1Q of 2026.

DAE is on a roll: DAE inked a lease agreement on Monday with China’s Hainan Airlines for four Boeing 737-8, scheduled for delivery in Q4 2025 and 1Q 2026.

#2- Emirates resumed flights to Edinburgh for the first time since 2020, reinstating the airline's eighth UK destination, according to the Dubai Media Office. The daily service is Emirate’s second route connecting Dubai to Scotland, along with Glasgow, providing a total of 14 weekly flights to and from Scotland.

CUSTOMS-

Dubai Customs partnered with DP World to overhaul its customs systems by upgrading digital trade and logistics solutions, according to the Dubai Media Office. The move seeks to streamline customs procedures for businesses in Dubai and facilitate cross-border trade.

TELECOMS-

du expands UAE 5G network: Telecom operator du partnered with Swedish telco Ericsson to expand its 5G network capacity across the UAE by using Ericsson’s radio access network portfolio, according to a press release. The partnership will also support the deployment of services like augmented reality, virtual reality, and cloud gaming.

HEALTHCARE-

A digital lung cancer detection platform in the works: The Health and Prevention Ministry signed an MoU with pharma giant AstraZeneca to establish a digital platform for lung health assessment and lung cancer early detection, with a focus on high-risk groups, namely people aged 50+ and current and former smokers, state news agency Wam reports. Under the agreement, both parties will also work together to update lung cancer early detection programs and initiatives nationwide, as well as offer training programs to medical staff.

DISPUTE WATCH-

MixJet threatens legal action against Uganda Airlines: Dubai-based jet fuel supplier MixJet Flight Support could take legal action against Uganda Airlines, after the carrier failed to comply with the MixJet’s request to pay at least USD 6 mn of the USD 10 mn debt owed for fuel services, Monitor reports, citing a source at MixJet.

The details: MixJet communicated with Uganda’s flag carrier’s CEO Jenifer Bamuturaki on 1 November its decision to take legal action if Uganda Airlines didn’t adhere to a 48-hour ultimatum. Uganda Airlines has reportedly offered to pay USD 2 mn, but MixJet stood its ground on receiving a minimum of USD 6 mn. A representative from Uganda Airlines explained that the delay in payments is due to the airline's policy of verifying fuel usage through technical logs rather than relying solely on supplier invoices, while claiming that the outstanding debt in question is USD 8 mn, not USD 10 mn.

REAL ESTATE-

#1- Deyaar launches its debut Abu Dhabi project: Dubai-based developer Deyaar Development expanded into Abu Dhabi with its first residential project in the emirate, Rivage, according to a press release (pdf). The development, located on Al Reem Island, features one- to three-bedroom residences, duplexes, and villas, with construction scheduled to wrap up in 4Q 2027.

#2- Downtown Dubai logs biggest transaction this year: Driven Properties acquired Emaar Square Building 3 for AED 505 mn, securing 378.9k sq ft of premium office space and marking the largest real estate transaction in Downtown Dubai this year, Trade Arabia reports. Driven Properties plans to relocate its headquarters to Emaar Square 3.

DEFENSE-

Defense conglomerate Edge Group and Italian shipbuilding company Fincantieri inked an MoU to design, develop, and produce manned and unmanned underwater systems through their new Abu Dhabi-based venture, Maestral, formed earlier in May, according to a company statement. The agreement marks Edge’s entry into underwater defense, focusing on developing systems for naval use worldwide.

Investors watch equities, bonds, and crypto as US election unfolds

We’re hours away from the results of one heated US presidential race, and financial markets are gearing up for the wild swings to come. Traders are bracing for heightened volatility amid a tight race between Republican candidate Donald Trump and Democratic candidate Kamala Harris. The stakes are high, with potential policy shifts, economic ramifications, and the Federal Reserve’s imminent rate decision all poised to impact investor sentiment and market movements.

We have the latest on the election in What We’re Tracking Today, above.

This election’s outcome is poised to reshape various sectors, from healthcare and energy to technology and banking. A Trump victory could boost traditional energy stocks, while a Harris victory might favor renewable energy and tech sectors due to anticipated regulatory changes. Market participants are adjusting their portfolios accordingly, preparing for sector-specific impacts based on the election’s result.

What’s at stake for markets? As the dust settles on one of the most divisive US presidential elections in history, investors are zeroing in on the potential market ripples. From equities to bonds, currencies, and crypto, each asset class is poised for unique shifts depending on whether Trump or Harris claims victory.

Equities: Post-election market movements are expected to be sector-specific rather than broad-based. Stuart Kaiser from Citigroup notes that traders are bracing for a 1.8% swing in either direction for the S&P 500 immediately following the results. Goldman Sachs' indexes — which track stocks favorable to either a Trump or Harris victory — show divergent trends; Trump-linked baskets waned in late October while Harris-aligned stocks gained momentum. “This will be one of the most easily investible election results ever, given the policy divergence between the two candidates,” David Wagner from Aptus Capital Advisors told Bloomberg.

Pulse check: All of the nation’s major indices closed in the green last night — the benchmark S&P 500 was up 1.2%, the Dow Jones closed 1.0% higher, and the Nasdaq saw the most significant increases with a 1.4% gain.

Bonds: “The markets are most concerned about a sweep and the lack of checks and balances,” BNY Mellon Wealth Management’s John Flahive told Bloomberg. Meanwhile, JPMorgan strategists predict that a Republican sweep could push 10-year yields higher, while a Harris victory with a divided Congress might stabilize the bond market, fostering a relief rally.

Currencies: Trump’s tariff policies are likely to bolster the USD, potentially pushing it by 7% higher on a trade-weighted basis, according to JPMorgan’s Meera Chandan. This would weaken other currencies like CNY, MXN, and most notably the EUR. A Harris victory, on the other hand, could weaken the USD and strengthen the EUR, with the threat of new tariffs in the rearview.

Crypto: It appears unlikely that the crypto sector would be harmed by which way the election race goes — A Trump administration will create a strategic reserve of BTC and ease regulatory constraints, spurring optimism in the crypto market, while a Harris administration “wouldn’t necessarily be a negative for the sector,” writes Bloomberg. “Whoever the next administration is, it’s going to take a very different approach on a regulatory perspective toward crypto,” Chris Rhine from Galaxy Digital is quoted as saying by Bloomberg.

The story is getting a lot of ink in international press: Bloomberg | CNBC | Reuters | The Guardian | CNN.

MARKETS THIS MORNING-

Asia-Pascific markets are mostly in the green in early trading. Japan’s Nikkei is leading the gains, up over 1.7%, Shanghai is up 0.6%, and South Korea’s Kospi is up 0.1%. The Hang Seng Index is in the red, down 1.1%.

Over on Wall Street, stock futures are flat as investors sit awaiting the results of the presidential election.

ADX	9,384	+0.6% (YTD: -2.0%)
DFM	4,595	+0.2% (YTD: +13.2%)
Nasdaq Dubai UAE20	3,850	+0.9% (YTD: +0.2%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.7% o/n	4.3% 1 yr
TASI	12,015	-0.2% (YTD: +0.4%)
EGX30	30,794	+0.5% (YTD: +23.7%)
S&P 500	5,783	+1.2% (YTD: +21.2%)
FTSE 100	8,172	-0.1% (YTD: +5.7%)
Euro Stoxx 50	4,870	+0.4% (YTD: +7.7%)
Brent crude	USD 75.57	+0.7%
Natural gas (Nymex)	USD 2.67	-4.0%
Gold	USD 2,750	+0.1%
BTC	USD 69,606	+2.4% (YTD: +64.5%)

THE CLOSING BELL-

The ADX rose 0.6% yesterday on turnover of AED 1.1 bn. The index is down 2.0% YTD.

In the green: Abu Dhabi National Takaful Co. (+14.9%), Gulf Pharmaceutical Industries (+10.5%) and Fujairah Building Industries (+10.3%).

In the red: Bank of Sharjah (-2.2%), Adnoc Gas (-1.8%) and Americana Restaurants International (-1.3%).

Over on the DFM, the index rose 0.2% on turnover of AED 309.4 mn. Meanwhile, Nasdaq Dubai closed up 0.9%.

CORPORATE ACTIONS-

Emirates Hospitals Group (EHG) completed its restructuring plan under UAE bankruptcy law, reducing its debt, securing fresh funds for operations and capital expenses, and introducing new governance guidelines, according to a press release.

Background: EHG’s parent company KBBO Group received the greenlight for the restructuring plan last year, which included raising AED 150 mn in new capital, recapitalizing its balance sheet, and an option to implement asset disposal and rationalization. The financial troubles stemmed from three years ago when founder Khalifa Bin Butti Al Muhairi filed for bankruptcy after the collapse of NMC Health, in which KBBO was the largest shareholder.

JBF RAK also finalized its restructuring plan, officially exiting the JBF Group to establish independent governance, management, and operations, according to a press release. Under the new structure, JBF RAK will operate separately from JBF Bahrain and JBF Belgium, with funding and strategic support from the Investment and Development Office (IDO) of Ras Al Khaimah, which may take on full ownership of JBF RAK in the future as part of the plan.

IDO appointed a new executive team for JBF RAK, led by CEO Rohit Vashistha (LinkedIn). Vashistha previously served as CEO of Indorama Ventures in Turkey.

CALENDAR

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.

6 November (Wednesday): LuLu Group’s IPO final price to be disclosed.

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

5-7 November (Tuesday-Thursday): GulfHost, Dubai World Trade Center.

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

6-8 November (Friday-Sunday): UAE BioTech Symposium, Masdar City, Abu Dhabi.

6-10 November (Wednesday-Sunday): Al Yasat Festival, Al Dhafra, 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.

11-13 November (Monday-Wednesday): IAOM MEA Conference & Expo, Dubai World Trade Center.

11-15 November (Monday- Friday): Dubai Arbitration Week, Waldorf Astoria, Dubai International Financial Center.

12-14 November (Tuesday-Thursday): The Global Educational Supplies and Solutions, Dubai World Trade Center.

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.

14 November (Thursday): LuLu Group’s shares to commence trading on ADX.

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.

18-20 November (Monday-Wednesday): Middle East Organic and Natural Products Expo, Dubai World Trade Center.

18-20 November (Monday-Wednesday): The International Conference of ShenZhen Association, Dubai World Trade Center.

19-20 November (Tuesday-Wednesday): Dubai Future Forum, Museum of the Future, Dubai.

19-21 November (Tuesday-Thursday): Dubai Future Solutions – Prototypes for Humanity, Emirates Towers, 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.

23-24 November (Saturday-Sunday): Forbes Middle East Medical Tourism & Wellness Summit, Jumeirah Beach Hotel, Dubai.

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

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

26-27 November (Tuesday-Wednesday): Open Source AI Summit, The St. Regis Saadiyat Island Resort, Abu Dhabi.

26-28 November (Tuesday-Thursday): Liveable Cities X, Dubai World Trade Center.

26-28 November (Tuesday-Thursday): Future FM, Dubai World Trade Center.

26-28 November (Tuesday-Thursday): Geo World, Dubai World Trade Center.

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.

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

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.

5 December (Thursday): Khalifa Fund Entrepreneurship Competition, Adnec center, Abu Dhabi.

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.

10-11 December (Tuesday-Wednesday): Global Trade and Infrastructure at Logimotion, Dubai World Trade Center.

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.

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

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

SEPTEMBER 2025

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

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

OCTOBER 2025

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

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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