Nvidia chips are coming

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WHAT WE’RE TRACKING TODAY

THIS MORNING: MGX to back OpenAI? + Rede Partners to set up shop in Dubai

Good morning, lovely people, and welcome to the halfway point of September. We have a big update on the AI front today, with Nvidia chips said to have made their way to the UAE after the US gave its greenlight for the exports. Plus…

WATCH THIS SPACE-

#1- MGX to back OpenAI? State-backed AI investment firm MGX is in talks to participate in OpenAI’s multi-bn USD fundraising round, which could see it raise up to USD 6.5 bn and secure a valuation of around USD 150 bn, the Wall Street Journal reports, citing people it says are in the know. VC firm Thrive Capital is leading the round, reportedly planning to invest USD 1 bn in the company, with Microsoft, Apple, and Nvidia also in discussions to participate.

REFRESHER- MGX was formed in March by the Artificial Intelligence and Advanced Technology Council to ramp up the development and adoption of AI in Abu Dhabi. The company reportedly targets to accumulate over USD 100 bn in assets under management in a few years.

#2- Blackstone considers offloading its stake in Dubai-based VFS Global: Blackstone is mulling a potential full or partial sale of its majority stake in Dubai and Zurich-based visa outsourcing and technology service firm VFS Global, Bloomberg reports, citing people it says are familiar with the matter. Several sovereign wealth funds, among other investors, have voiced their interest in acquiring VFS.

Temasek Holdings is shopping for a 20% stake: Singaporean state-owned investment company Temasek Holdings has already embarked on talks with the US alternative investment management firm to obtain a partial 20% stake in VFS, a transaction which could potentially value the company at around USD 7 bn, Bloomberg reports separately.

Background: Blackstone acquired a majority stake in VFS in 2022 from EQT and the Kuoni and Hugentobler Foundation. Blackstone would retain a majority stake in VFS if the transaction with Temasek goes through.

#3- Rede Partners to set up shop in Dubai next year: UK’s private equity fundraising advisory firm Rede Partners plans to open a Dubai office in early 2025, Bloomberg reports, citing a statement. The firm will have a team of four dedicated to the region, led by partner James Varela (LinkedIn). Rede’s CEO Adam Turtle sang the praises of Dubai’s regulatory environment and connectivity in an interview with the news outlet, saying he sees it as an investors’ hub.

#4- The UAE said it does not plan to revive talks with the US on a multi-bn USD transaction for the F-35 fighter jets, regardless of who becomes president after the upcoming US elections, Reuters reports, citing an unnamed senior Emirati official. This comes in response to a recent report by Reuters that the UAE would resume the talks if Donald Trump becomes president.

Background: Trump had approved a USD 23 bn sale of the F-35 jets, MQ-9 drones, and munitions to the UAE in his final days in office in 2021. However, the UAE halted talks with the Biden administration due to unresolved terms — including on factors like technical requirements, sovereign operational restrictions, and costs, the official said.

#5- Adia-backed EdgePoint could be up for sale: Global digital infrastructure investment firm DigitalBridge Group is mulling a potential full or partial sale of its controlling stake in Southeast Asian telecom tower firm EdgePoint Infrastructure, Bloomberg reports, citing people it says are in the know. While DigitalBridge has not made a final decision, the firm may seek a valuation of up to USD 4 bn for EdgePoint, which has reeled in early interest from infrastructure-focused funds, the sources said. Abu Dhabi Investment Authority (Adia) owns a minority stake in the company.

About EdgePoint: Founded in 2020, EdgePoint operates telecom towers in Indonesia, Malaysia, and the Philippines, with over 10k sites in Indonesia, 1.5k in Malaysia, and 2.8k in the Philippines.

#6- Global sukuk issuances are expected to top USD 200 bn in 2024, exceeding the total raised ast year, Zawya reports, citing a report by credit ratings agency Moody’s. While activity is expected to ease in 2H 2024, GCC sukuk issuances will continue to drive activity as regional governments push for economic diversification, according to the agency.

The UAE saw its issuances double y-o-y to USD 8.6 bn in 1H 2024, Moody’s said. Regionally, sukuk issuances in the GCC soared 138% y-o-y, totaling USD 69.2 bn, with Saudi Arabia accounting for 37% of the total. Meanwhile, GCC corporate and bank issuances grew to a combined USD 19.6 bn in 1H 2024.

The rise in sukuk issuances makes for a rosy forecast for Islamic banks: GCC Islamic banks are set to record robust profitability over the next 12 to 18 months, driven by robust commercial activity and government-led diversification efforts, Wam reports, citing a separate Moody’s forecast. Islamic financing is expected to outperform conventional banking, fueled by growing demand for Sharia-compliant debt as well as potential mergers aimed at boosting revenue and cutting costs.

HAPPENING TODAY-

#1- British trade ministers are in Riyadh for talks on a trade agreement with the GCC, according to a statement. Trade Secretary Jonathan Reynolds and Trade Policy Minister Douglas Alexander are both set to lead negotiations, with Reynolds saying he’s looking for a “high-quality trade [agreement] that supports jobs, helps UK companies sell their products to the region and increases choice for consumers.”

REMEMBER- The GCC and the UK are hoping to wrap trade talks by the end of this year, with six rounds of talks having taken place so far.

#2- The Arab Water Forum is coming to Abu Dhabi from 16-18 September at Adnec Center in Abu Dhabi. The event will feature over 60 exhibitors from 24 countries, along with roundtables and speaker sessions, gathering water sector leaders to discuss solutions for clean water and sanitation, with an emphasis on innovation and improving water security.

#3- Our friends at HSBC, together with UK Export Finance and Egyptian-British Chamberof Commerce, are hosting the Egypt-UK Investment and Opportunities Forum in London. The conference will showcase investment opportunities in Egypt across different sectors — including renewable energy, water, automotive, food processing, IT, and AI — to potential investors from the UK. It will also facilitate matchmaking between institutions of both countries, bringing together government representatives, business leaders, and senior executives.

#4- The World Utilities Congress will take place from Monday to Wednesday in Abu Dhabi. The event will gather global energy leaders, policymakers, and other industry professionals from the power and water utilities value chain to discuss industry trends and challenges.

#5- The Dubai Financial Services Authority and the Hong Kong Monetary Authority will be hosting their first climate finance conference in Hong Kong, where they will discuss opportunities and challenges in the transition finance space.

#6- The Intelligent Transport Systems World Congress 2024 will take place from Monday to Friday in Dubai. The Congress is expected to welcome 20k participants to explore innovations in smart mobility and transportation technology.

HAPPENING THIS WEEK-

#1- The AI in Oil and Gas Midle East conference will take place in Abu Dhabi on Tuesday and Wednesday, with a focus on AI in exploration and production, supply chains, data analytics, and more. The event will feature speakers and AI experts from across the region’s oil firms.

#2- The Sharjah Investment Forum will kick off on Wednesday and run until Thursday at the Jawaher Reception and Convention Centre in Sharjah. Discussions will span across investments in emerging markets and in the UAE, smart cities and economies, and more.

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

DATA POINTS-

#1- The UAE's clean energy share of the total energy mix hit 27.83% in 2023, moving closer to its 2030 target of 32%, Wam reports. The Emirates’ renewable energy capacity also grew by 70% in 2023, reaching 6.1 GW. As of 2023, the country has invested over AED 45 bn in completed renewable energy projects so far, according to Energy Minister Suhail bin Mohammed Al Mazrouei.

#2- The UAE's non-oil foreign trade volume increased by 10.3% to 273.5 mn tons in 2023, up from 248 mn tons in 2022, Al Khaleej reports, citing data from the Federal Competitiveness and Statistics Centre. Non-Arab Asian countries were top trading partners with a 44% share, followed by European countries at 17%, and GCC countries at 12%. Imports rose 20% to 129.3 mn tons, while exports grew 13% to 120 mn tons.

REMEMBER-Non-oil trade hit a record AED 3.5 tn in 2023, Vice President Sheikh Mohammed bin Rashid Al Maktoum said earlier this year. Trade in goods was up 12.6% y-o-y to AED 2.6 tn, while trade in services hit AED 900 bn. Exports of goods and services surpassed AED 1 tn for the first time.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- Gov’t ends mandatory midday breaks for outdoor workers: The Human Resources and Emiratization Ministry lifted its ban on outdoor work from 12:30 pm to 3:00 pm for outdoor workers as of yesterday, Wam reports.

#2- Abu Dhabi will now enforce stricter penalties for violations related to the emirate’s public appearance, health, and tranquility, according to a statement. Under the decision, offenders can pay only 75% of the fine if they correct the violation, and they will be granted one week to appeal. Repeat offenders will incur higher fines and unresolved issues will be fixed at the violator’s expense.

The resolution also introduces new regulations for preserving public spaces and public appearance, including rules for property maintenance, camping, and installation of satellite dishes. Some of the violations include installing parking shades without permits, mishandling flags, or failing to provide proper waste containers.

#3- Dubai gets two new bridges: Dubai's Road and Transport Authority opened two new bridges yesterday connecting Garn Al Sabkha Street to Sheikh Mohammed bin Zayed Road, and eliminating traffic overlapping between Sheikh Mohammed bin Zayed Road and Al Yalayis Street and Jebel Ali Port, according to the Dubai Media Office. Each bridge has a capacity for 3.2k vehicles per hour.

THE BIG STORY ABROAD-

Business news is having a hard time getting ink on the digital front pages this morning as another possible Trump assassination late yesterday continues to dominate the global press. Republican presidential candidate Donald Trump was targeted in what appeared to be another assassination attempt yesterday while golfing at his golf course in West Palm Beach, Florida. Trump was deemed safe after US Secret Service agents attached to the former president spotted a rifle barrel in a bush and engaged the gunman in fire, before arresting a suspect later, who was identified as 58-year-old Ryan Routh.

Trump’s would-be assassins missed, but Harris’ attacks on his economic record seem to have hit on target, with US voters trusting the Democrat candidate to steward the US economy over her Republican challenger by a thin margin of 2 percentage points, according to the latest FT-Michigan Ross poll, up 1 percentage point from last month, the Financial Times writes. Harris holds an even higher advantage among those that tuned into last week’s US presidential debate, with 48% saying that they trusted Harris more to manage the economy compared to Trump’s 42%.

WHILE IN BUSINESS NEWS- NYC-based VC firm Insight Partners is close to finalizing a new tech fund worth at least USD 10 bn in a sign that tech investors are tiptoeing back into what has been a very tepid VC market.

AND OVER IN THE MEDIA SPHERE- Berlin-based media giant Axel Springer may soonsee a deal to split up its profitable classifieds business — valued at USD 15 bn — and its media outlets, which include US news sites Politico and Business Insider in addition to German publications Bild and Die Welt.

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CIRCLE YOUR CALENDAR-

The Dubai World Trade Centre will host the Water, Energy and EnvironmentTechnology Exhibition 2024 from 1-3 October, organized by Dubai Electricity and Water Authority. The event will focus on advancements in cybersecurity, digital transformation, and sustainability, showcasing the latest technologies and solutions to enhance digital and environmental security.

Dubai will host The Africa Debate on 31 October at the Sky View, marking the first time the event is held outside of London. The forum will gather over 300 investors, market leaders and policymakers from government agencies, commercial banks, private equity funds, sovereign wealth funds, and corporations to explore opportunities to boost trade and investment ties between the UAE and Africa.

Dubai Design Week is set to take place from 5-10 November in the Dubai Design District. The design festival will see over 500 designers and brands from 40+ countries showcase new design ideas, with this year’s program focusing on sustainable practices, vernacular architecture, and global south design.

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

Nvidia chips make their way to the UAE

G42 to purchase Nvidia’s AI chips: State-backed tech giant G42 has started receiving AI chips from US chipmaker Nvidia after the US government approved the sale earlier this year without making the transaction public, Semafor reports, citing people familiar with the matter. This includes Nvidia’s H100 chips, a graphics processing unit (GPU) chip which “delivers exceptional performance, scalability, and security,” according to the chipmaker.

G42 has begun deploying the AI chips at its data centers, after removing China-made hardware from the centers, making “long-term investments” to ensure data protection, and using hardware solely manufactured by Western nations, which has swayed US officials to accept the transaction, according to Semafor’s sources.

US defense tech is being used to lock down G42’s data centers: The data centers are equipped with military-grade encryption and are isolated from other systems, including security cameras and cooling, to prevent potential attacks. Additionally, G42 has reportedly tapped US defense department contractors to test and secure its data centers against potential breaches, particularly by China, according to the news platform.

Background: G42 secured a USD 1.5 bn investment from Microsoft that should see the firm receiving large-scale AI components, including the Nvidia chips, alongside the two partnering on AI investments abroad. Concerns that the US might pull the plug on the partnership have been swirling for a few months, with reports that Pentagon officials are doubting G42’s commitment to fully divest from China, despite reports that it has already sold all its stake in China.

The UAE isn’t the first GCC nation to secure Nvidia’s chips, with Qatar’s telco Ooredoo recently purchasing thousands of Nvidia’s AI GPUs as part of its GPU-as-a-service offering. A year ago, Saudi Arabia also acquired some 3k H100 chips in a transaction worth USD 120 mn, and could also gain access to Nvidia’s H200 chips next year as the US government mulls greenlighting the move.

Mashreq offloads 65% stake in NeoPay

Mashreq to offload majority stake in Neopay: Our friends at Mashreq are selling 65% of their stake in payment subsidiary NeoPay to a consortium including Bahrain-based asset management firm Arcapita Group Holdings and Turkish fintech firm Dgpays, according to a DFM disclosure (pdf). The transaction, subject to regulatory approval, values the subsidiary at USD 385 mn (AED 1.41 bn), according to a separate disclosure (pdf).

Further cooperation ahead? The agreement will also see Mashreq enter into a long-term shareholder agreement with the purchasing entities “for the future growth of the business,” the disclosure reads.

About NeoPay: The wholly-owned Mashreq subsidiary — officially named Idfaa Payment Services — offers payment processing services, including point of sale terminals, e-commerce and mobile payments, as well as other non-cash transactions. The bank had consolidated its payment systems into Idfaa in March 2022.

Mubadala buys into Revolut, as the fintech looks to expand operations in the UAE

Abu Dhabi sovereign wealth fund Mubadala acquired a stake in global neobank and fintech Revolut as part of the USD 500 mn share sale in August, which valued the company at USD 45 bn, the Financial Times reports, citing three people it says have knowledge of the transaction. Revolut CEO Nik Storonsky sold between USD 200-300 mn of his shares in the transaction in a bid to support his venture capital fund QuantumLight.

Revolut wants to scale up in the UAE: Revolut has filed for licenses to become an electronic-money institution and offer remittances in the UAE, an initial step it’s taking ahead of applying for a full banking license, Bloomberg reports, citing people familiar with the matter. The company eyes a similar expansion in Saudi Arabia.

The London-based digital bank is now on the hunt for top execs to join its team in the UAE, including a head of finance, head of legal, and roles in crypto, engineering, and more, Bloomberg says.

Background: Revolut entered the UAE market in 2022, setting up an office in the Dubai International Financial Center with 140 employees. The London-based company has launched operations in Mexico, Brazil, and New Zealand.

Mubadala has had its eyes on Europe’s fintech sector for a while: The sovereign wealth fund participated in a USD 800 mn funding round for Swiss fintech Klarna in 2022.

OTHER M&A NEWS-

Adia acquires AED 1.9 mn stake in Indian financial firm: Abu Dhabi Investment Authority (Adia) acquired a 0.37% stake in Mumbai-based financial services company Edelweiss Financial Services for INR 44.3 mn (AED 1.9 mn), Indian news channel NDTV reports, citing NSE data. Adia acquired the stake in an open market transaction.

JPMorgan Chase’s Mena head retires after 28 years

JPMorgan Chase's senior executive in the Middle East, Asif Raza (LinkedIn), has retired after 28 years with the firm, Bloomberg reports, citing a spokesperson. Raza joined Chase Manhattan Bank in New York in 1996, working roles in London and Singapore before relocating to Dubai in 2008 to lead the lender’s treasury and securities services for the MENA region. He was named head of JPMorgan's corporate bank in the Mena in 2014, with his responsibilities expanding in 2019 to lead the corporate banking division for Central and Eastern Europe, the Middle East, and Africa.

Raza’s mark includes expanding JPMorgan's presence in Saudi Arabia and opening offices in Abu Dhabi and Doha.

The Arab Federation for Digital Economy appointed Abdullah Ibrahim Al Darmaki as deputy secretary-general, tasked with overseeing and managing the implementation of the “Arab Vision” projects in Arab countries, Wam reports. Al Darmaki is an academic researcher in institutional excellence with expertise in management and government development systems. He previously served as a member of Sharjah’s Consultative Council and chaired the Committee for Preparing Draft Recommendations.

Rising demand for Dubai’s private schools catapults operators into b’naire status

Wealthy expats are paying premiums to send their kids to Dubai’s top schools, paying up to USD 33k a year due to the lack of accessible public schools for foreigners, which are reserved for Emiratis, Bloomberg reported on Sunday. With expats making up 90% of the population, over 80% of families in the emirate end up spending a third of their income on tuition.

One of the big beneficiaries of the rising demand for private schooling has been Gems Education, which operates 44 schools in the UAE and others in Qatar and the UK. The operator is also looking into expanding into Saudi Arabia, the business information service says.

The company’s annual revenues come in at more than USD 1.2 bn, CEO Dino Varkey told Bloomberg, adding that a de-regulation of fees would make it an even more lucrative industry for foreign investors. The founding family, India’s Varkeys, are now estimated to control USD 3.7 bn, according to Bloomberg’s B’naire Index.

A chunk of IHC sold in block transaction on ADX

M&A-

An undisclosed buyer acquired AED 4.38 bn in shares in the International Holding Company (IHC)’s in a block transaction on the ADX on Friday, Wam reports. The 10.7 mn shares were sold at AED 409.3 a piece. Further details on the transaction were not disclosed.

AVIATION-

#1- The UAE set to get its first sustainable aviation hub: The General Civil Aviation Authority inked an MoU with Chinese aviation tech firm Volar Air Mobility to establish the UAE’s first green aviation technology hub in a bid to bring the sector’s carbon emissions down, Wam reports. The hub will promote clean energy solutions, advance research and development in sustainable aviation tech, and fast-track collaboration with international stakeholders.

#2- Homegrown budget carrier flydubai renewed its ground handling agreement with Saudi Ground Services for another three years, Wam reports. The initial agreement, worth over AED 100 mn, was signed in September 2021.

SPACE-

Bayanat, Yahsat have more satellite plans in the pipeline: Geospatial solutions firm Bayan at and Al Yah Satellite Communications (Yahsat) plan to launch eight synthetic aperture radar (SAR) satellites over the next three years, after launching the UAE’s first low Earth orbit SAR satellite from California’s Vandenberg Space Force Base last month, Bayanat’s Managing Director Hasan Al Hosani told Al Etihad. The recently launched satellite — called Foresight-1 — is expected to become fully-operational by early 2025, Al Hosani said.

REMEMBER- Bayanat and Yahsat are looking to finalize their merger in 2H 2024, creating a new entity, Space42, after the two companies’ shareholders signed off on it in April.

ADVERTISING-

#1- VeraViews chooses Dubai for its main headquarters: Blockchain-powered advertising platform VeraViews will set up its global headquarters in Dubai’s Media City, under the Economy Ministry NextGen FDI initiative, Wam reports. The digital ad platform, which is currently beta-testing its product, uses distributed ledger tech to ensure ad view accuracy, combat harmful content, and curb supply chain fraud using its Proof of View fraud identification tech.

NextGen FDI? Launched in 2022, the program helps startups set up shop and scale in the UAE by speeding up licensing processes, facilitating bulk visa issuances, and providing them with lease incentives and banking support.

Enter Mada Media Company: Dubai has set up a new firm to manage and develop its advertising sites, including those previously overseen by the Roads and Transport Authority (RTA), naming it Mada Media, according to a statement. RTA’s Director General and Chairman of the executive directors board Mattar Al Tayer was appointed as Mada’s Chairman.

What are Mada’s responsibilities? Mada Media will also invest in tech and research around advertising, with the authority to form partnerships. The RTA and Dubai Municipality will transfer their advertising functions and assets to Mada.

DEBT-

#1- Moody’s upgraded United Arab Bank’s (UAB) long-term deposit rating to Baa3 from Ba1, and short-term deposit rating to P-3 from NP, maintaining a positive outlook, according to a statement. The credit rating agency also upgraded the bank’s Baseline Credit Assessment (BCA) to ba3 from b1 and Adjusted BCA to ba2 from ba3. UAB’s improved governance, asset quality, and risk management practices underpinned the ratings boost.

#2- Sobha Realty takes its overall sukuk issuance to USD 500 mn after a recent extension: Real estate developer Sobha Realty completed a USD 230 mn tap into its existing sukuk, bringing its total sukuk issuance so far to USD 500 mn, according to a statement from the company. The tap is an extension of the company’s inaugural USD 300 mn sukuk issuance, which took place in July last year and currently has an outstanding balance of USD 270 mn.

Strong demand tightened the price by 95 basis points, with 25% of the interest coming from international investors.

ADVISORS- Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, Emirates NBD Capital, Sharjah Islamic Bank, and Standard Chartered Bank acted as joint global coordinators, lead managers, and bookrunners on the transaction. Clifford Chance and Dentons offered legal counsel, while Grant Thornton acted as auditors.

TECH-

US-based multi-cloud security firm F5 launched a new point of presence in the UAE, featuring a high-speed capacity of over 15 terabits per second (Tbps), a press release reads. The new facility simplifies app management and provides high-performance workload offloading and multi-layer security.

TRANSPORT-

State-owned Dubai Taxi secured 300 new plates at the latest Roads and Transport Authority auction, boosting its fleet to nearly 6k taxis and expanding its market share to 46%, according to a statement (pdf). The expanded fleet is projected to add AED 100 mn in annual revenue. Of the 300 new taxis, 75 will be electric, Dubai Taxi’s CEO Mansoor Rahma Al Falasi said.

PUBLIC POLICY-

Abu Dhabi-based think tank Trends Research and Advisory opened its eighth global office in Seoul at the Korea University, Wam reports. The new Seoul office aims to foster scientific dialogue with Korea’s academic community on tech, AI, and cybersecurity.

LOGISTICS-

Abu Dhabi-based Gulf Marine Services (GMS) secured a new five-year GCC contract for one of its vessels, according to a press release, which did not disclose the financial terms of the contract. The five-year transaction boosts GMS’s backlog to USD 464 mn. The company also updated its 2024 adjusted EBITDA forecast to USD 95-100 mn, up from a previous guidance of USD 92-100 mn.

EDUCATION-

Dubai to fund up to 20 research projects under a new initiative: Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum launched the Dubai Research, Development, and Innovation Grant Initiative to fund up to 20 research projects advancing key economic sectors in Dubai, according to the Dubai Media Office. Targeted research areas include cognitive cities, health and life sciences, and AI and robotics.

The initiative is part of the broader Dubai Research and Development Program aiming to ramp up R&D activities and infrastructure to address local and global challenges.

The big question of the week: How far will the Fed go?

It’s interest rate week — and speculations are still swirling around the Federal Reserve’s moves in its two-day meeting tomorrow and Wednesday, with analysts torn between the arguments for a 25 bps cut and a more aggressive 50 bps cut amid persistent inflation and a cooling job market.

In one corner: Conservative voices argue that inflation remains a concern — particularly in the services sector — and that a smaller rate cut would be a safer move.

And in the other: A rapidly cooling job market, which presents a more pressing risk than inflation, underpins the argument for a large rate cut, the Financial Times’ editorial board argues in an op-ed, saying that with inflation down to 2.5% — moving toward the targeted 2% — a significant rate cut would help stave off economic stagnation and support employment. The board also argues that the persistent inflationary factors are lagging behind actual market prices, and that useful indicators like wage growth, are tame by comparison.

Market expectations tilted toward a larger cut over the weekend, buoyed by signals from former Fed officials — meaning the central bank has the opportunity to take bold action without spooking investors, the FT’s board writes.

Regardless of the outcome of this week’s meeting, the journey to the end of the rate-cutting cycle remains fraught with uncertainty, writes Egyptian-American economist — and EnterpriseAM HQ favorite — Mohamed El Erian in a separate editorial for FT. He points out that US economic growth has been more robust than many anticipated, but this growth has not been evenly distributed. Lower-income households, in particular, are feeling the strain as pandemic savings dwindle and credit card debt rises. El Erian highlights the risk of this economic weakness spreading beyond lower-income households, which could further complicate the Fed’s decision-making process.

Global impact of US monetary policy: As the Fed navigates its rate-cutting cycle, emerging markets may also feel pressure to follow suit, leading to potential disruptions in international financial stability. El Erian emphasizes that while markets are optimistic about a “soft landing” for the US economy, this confidence may not fully account for the complexities of global financial dynamics, particularly in the bond markets.

MARKETS THIS MORNING-

Asian markets are mixed as Hong Kong’s Hang Seng fell 0.76% on the back of disappointing economic data from China — though markets in mainland China, Japan, and South Korea were closed for national holidays. Meanwhile, Wall Street futures are hovering around the flatline as investors hold their breath for the upcoming Fed meeting.

ADX	9,350	+0.5% (YTD: -2.4%)
DFM	4,380	+0.4% (YTD: +7.9%)
Nasdaq Dubai UAE20	3,794	+0.8% (YTD: -1.2%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.0% o/n	4.2% 1 yr
Tadawul	11,900	+0.5% (YTD: -0.6%)
EGX30	30,498	0.04% (YTD: +22.5%)
S&P 500	5,626	+0.5% (YTD: +18.0%)
FTSE 100	8,273	+0.4% (YTD: +7.0%)
Euro Stoxx 50	4,844	+0.6% (YTD: +7.1%)
Brent crude	USD 71.61	-0.5%
Natural gas (Nymex)	USD 2.31	-2.2%
Gold	USD 2,610.70	+1.2%
BTC	USD 59,619.40	-0.7% (YTD: +41.5%)

THE CLOSING BELL-

The DFM rose 0.4% on Friday on turnover of AED 198.2 mn. The index is up 7.9% YTD.

In the green: International Financial Advisors (+11.6%), Al Ramz Corporation Investment and Development (+9.0%) and Ekttitab Holding Company (+2.8%).

In the red: Al Salam Sudan (-3.8%), Spinneys (-2.0%) and Emirates Central Cooling Systems Corporation (Empower) (-1.8%).

Over on the ADX, the index rose 0.5% on turnover of AED 5.4 bn. Meanwhile Nasdaq Dubai closed up 0.8%.

UAE mediates eighth Russia-Ukraine prisoner swap + Al Nahyan affirms need for Palestinian state

The UAE facilitated a prisoner exchange agreement between Russia and Ukraine, which saw the two countries swap 206 prisoners, marking the eighth such agreement mediated by the UAE this year, according to a statement. The exchange brings the total number of captives swapped through UAE mediation to nearly 2k. The UAE assisted in seven prisoner exchanges between the two countries from January to August 2024.

UAE, German FMs talk bilateral ties + Middle East developments: Foreign Affairs Minister Sheikh Abdullah bin Zayed Al Nahyan discussed ramping up UAE-Germany cooperation in economic, trade, energy, and climate sectors with his German counterpart Annalena Baerbock on Friday, Wam reports. During their call, the two also touched on recent regional and international developments, focusing on the Middle East.

Separately, Al Nahyan said that the UAE is not prepared to support post-war efforts in Gaza unless a Palestinian state is established in an X post. Bin Zayed’s statement affirms that the UAE will only accept the two-state solution for Palestine and Israel, said Anwar Gargash, diplomatic adviser to President Sheikh Mohamed bin Zayed Al Nahyan, asserting that no other solution will lead to the region’s stability.

CALENDAR

SEPTEMBER

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

15 September - 23 February 2025 (Sunday-Sunday): Labour Sports Tournament, Dubai.

16 September (Monday): HKMA–DFSA Climate Finance Conference, Hong Kong.

16-18 September (Monday-Wednesday): World Utilities Congress, Abu Dhabi.

16-18 September (Monday-Wednesday): Arab Water Forum, ADNEC Abu Dhabi Center.

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

17-18 September (Tuesday-Wednesday): AI in oil and gas conference, Abu Dhabi.

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

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

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

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

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

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

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

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

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

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

OCTOBER

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

31 October (Thursday): The Africa Debate, Sky View, 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.

5-10 November (Tuesday-Sunday): Dubai Design Week, Dubai Design District, Dubai.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Signposted to happen ahead of ADIPEC:

Changemakers Majlis, Abu Dhabi.

DECEMBER

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

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

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

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

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

10-12 December (Tuesday-Thursday): Middle East Investor Relations Association (MEIRA Conference), Conrad Abu Dhabi Etihad Towers Hotel, Abu Dhabi.

10-12 December (Tuesday-Thursday): The Middle East and North Africa Business Aviation Association Show, Al Maktoum International Airport, Dubai.

11-13 December (Wednesday-Friday): European-Arab Medical Congress, Abu Dhabi.

14-21 December (Saturday-Saturday): World Schools Festival, Abu Dhabi

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.

FEBRUARY 2025

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

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

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

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

Signposted to happen sometime in 1Q 2025:

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

APRIL 2025

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

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

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 Centre, Dubai.

JUNE 2025

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

OCTOBER 2025

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

Signposted to happen sometime in 2025:

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

Signposted to happen sometime in the fall of 2025:

2025 Games of the Future, Dubai.

Signposted to happen sometime in 2026:

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

Signposted to happen sometime in 2028:

Abu Dhabi to host the Chess Olympiad.

Signposted to happen sometime in 2029:

Dubai to host the International Conference on Computer Vision.

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