{"id":106224,"date":"2025-08-05T00:00:00","date_gmt":"2025-08-05T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/this-morning-mubadala-invests-in-lg-chems-water-treatment-unit-pmi-out-today\/"},"modified":"2025-08-05T00:00:00","modified_gmt":"2025-08-05T00:00:00","slug":"this-morning-mubadala-invests-in-lg-chems-water-treatment-unit-pmi-out-today","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/08\/05\/this-morning-mubadala-invests-in-lg-chems-water-treatment-unit-pmi-out-today\/","title":{"rendered":"THIS MORNING: Mubadala invests in LG Chem\u2019s water treatment unit? + PMI out today"},"content":{"rendered":"

Good morning, friends. <\/strong>Our issue today is heavy on capital markets updates, led by a wrap-up on DFM and ADX\u2019s performance in July, which show Dubai\u2019s index maintaining its position as best-performing index in the region so far this year. Also:<\/strong> Bahraini sovereign wealth fund Mumtalakat just bought into UAE-based private equity firm BlueFive Capital. <\/p>\n

AND- Today\u2019s batch of earnings brings you the latest from <\/strong>Abu Dhabi conglomerate IHC<\/strong>, Adnoc\u2019s ammonia and urea arm Fertiglobe<\/strong>, Dubai Investments<\/strong>, and Ghitha\u2019s Invictus<\/strong>. <\/p>\n

WEATHER- <\/strong>Eastern areas of the country could see some rain today, with light to moderate winds kicking up blowing dust, according to the National Center of Meteorology (<\/a>pdf<\/a>)<\/a>. Temperatures will hit 42\u00b0C in Dubai<\/strong>, before cooling to 33\u00b0C overnight. Over in Abu Dhabi<\/strong>, temperatures will peak at 40\u00b0C, before dipping to an overnight low of 35\u00b0C.<\/p>\n

WATCH THIS SPACE- <\/p>\n

<\/a> #1- <\/strong>Mubadala<\/strong> invests in LG Chem\u2019s water treatment unit?<\/strong> Mubadala and Singapore\u2019s GIC have reportedly launched a KRW 600 bn (USD 433.1 mn) joint fund to invest in LG Chem<\/a> \u2019s water treatment unit, Membrane, as part of Glenwood Private Equity\u2019s KRW 1.6 tn (USD 1.16 bn) acquisition of the unit, Business Korea<\/a> reports, citing investment banking sources. Glenwood will manage the fund and an additional KRW 400 bn (USD 288.8 mn) from earlier blind funds. Mubadala declined to comment. <\/p>\n

What sold it to Mubadala? <\/strong>Membrane\u2019s seawater desalination technology produces water treatment filters using nanotechnology, which remove 99.89% of salt and contaminants, making it viable for industrial applications and for reintegrating into energy facilities, as well as semiconductor manufacturing, which requires ultrapure water. <\/p>\n

Other backers include Canada Pension Plan, Adams Street Partners, and Temasek\u2019s Pavilion Capital. <\/strong>Glenwood plans to allocate KRW 200 bn (USD 144.4 mn) toward facility expansion, digital transformation, and advanced manufacturing upgrades.. <\/p>\n

REMEMBER-<\/strong> Mubadala inked an MoU<\/a> with the Korean Finance Ministry to \u201cincrease investment flows into future-focused sectors in South Korea\u2019s economy.\u201d The UAE reaffirmed its commitment to invest USD 30 bn in South Korean businesses through Mubadala in May. <\/p>\n

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<\/a> #2- Saudi Arabia\u2019s General Authority for Competition (Gac) signed off on <\/strong>Al-Futtaim<\/strong> Group\u2019s acquisition of a <\/strong>49.95% stake<\/a><\/strong> in Cenomi Retail<\/strong>, the authority said on X<\/a> yesterday. The two retail giants had inked a share purchase agreement for SAR 2.5 bn (USD 667 mn) last month<\/a>. In addition to buying the stake from the founding Alhokair family shareholders, Al-Futtaim will provide a SAR 1.3 bn loan to shore up Cenomi\u2019s finances and fund its recovery.<\/p>\n

IN CONTEXT- The acquisition is a boon for both sides: <\/strong>It\u2019s a lifeline for Cenomi, which has struggled with losses which resulted in a negative shareholder equity of SAR 991 mn in 1Q 2025, and SAR 5.43 bn in liabilities, outweighing assets of SAR 4.42 bn. It\u2019s also big for Al-Futtaim, which will break into a Saudi retail market that is still in its infancy. Cenomi Retail has leases across the Kingdom and in other markets. <\/p>\n

ADVISORS-<\/strong> Lazard<\/strong> is advising Cenomi on the transaction, while JP Morgan<\/strong> is acting for Al-Futtaim.<\/p>\n

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<\/a> #3- <\/strong>SCA readies new carbon trading, fractional sukuk regs: <\/strong>The Securities and Commodities Authority (SCA) is drafting four new regulations for carbon credit trading, retail sukuk, restructuring mechanisms, and amendments to expand its regulatory powers, CEO Waleed Al Awadhi told state news agency Wam<\/a>. <\/p>\n

Breaking it down<\/strong>: <\/strong>The carbon trading framework will set licensing and operational rules for platform operators, Al Awadhi said. It\u2019s been a slow start for carbon credit trading platforms in the UAE, with only one exchange and clearing house launched in ADGM<\/a> that we know of that has since wound down its operations<\/a>. Besides that, the DFM had piloted carbon credits trading at COP28 as a trial run. <\/p>\n

Meanwhile, the sukuk regulation aims to regulate retail investors\u2019 access to bond and sukuk markets<\/strong> through fractional instruments, Al Awadhi said, without giving further details.<\/p>\n

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[wwtt4] #4- <\/strong>Dewa plans infr<\/strong>astructure boost:<\/strong> Dubai Electricity and Water Authority (DEWA) is developing 49 new 132 kV substations and two 400 kV substations, with tenders for 11 more 132 kV stations already open for contractor submissions, according to a press release<\/a>. The authority expects to tender at least 57 new substations and extend 160 km of underground cables to support growing energy demand over the next three years.<\/p>\n

Dewa commissioned four new 132 kV substations with a combined conversion capacity of 450 MVA<\/strong> and laid 228 km of new transmission cables in 1H this year, valued at AED 725 mn. The total number of transmission substations has now reached 391, including 27 at 400 kV and 364 at 132 kV.<\/p>\n

There\u2019s more: <\/strong>The authority also recently awarded AED 1.1 bn in contracts to construct 10 new substations in areas including Business Bay, Nad Al Sheba 1, and Dubai Silicon Oasis, alongside an AED 288 mn package for 60.6 km of cable extensions. The expansions are part of a broader strategy to enhance grid reliability, accommodate urban development, and support Dubai\u2019s Economic Agenda.<\/p>\n

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#5- UAE banks limit operations for 30% of Russian clients:<\/strong> Financial institutions in the UAE have restricted transactions or closed accounts for nearly 30% of Russian-affiliated companies since July, according to Ukraine's Foreign Intelligence Service<\/a>. The moves follow compliance failures including unanswered bank inquiries, documentation errors, mismatched financial activity, and connections to Financial Action Task Force-blacklisted jurisdictions or sanctioned entities.<\/p>\n

IN CONTEXT-<\/strong> The crackdown follows several packages of sanctions<\/a> that have affected UAE-based firms, including from the UK and the EU. <\/p>\n

<\/p>\n

In the third issue of our Destination Sahel<\/strong> series, we\u2019re taking a look at how Sahel could become a year-round destination, the architecture underpinning new developments, and the impact of coastal cities on our shores.<\/p>\n

Subscribe to our Egypt edition<\/a><\/strong> to get the scoop delivered to your inbox, Wednesday, 6 August. <\/p>\n

Missed the first two issues? Tap or click here<\/a> to read the full series. <\/p>\n

HAPPENING TODAY-<\/p>\n

It\u2019s PMI day:<\/strong> S&P Global\u2019s purchasing managers\u2019 index for the UAE is set to be released shortly after we hit \u201csend\u201d on this morning\u2019s issue. Business owners and investors will be looking for signs that demand is recovering after a dip in June<\/a> on the back of regional geopolitical tensions \u2014 a minor setback that was still negligible considering the expansion in output. We\u2019ll have the full rundown in tomorrow morning\u2019s edition of EnterpriseAM UAE. <\/strong><\/p>\n

THE BIG STORY ABROAD- <\/p>\n

It\u2019s a thoroughly mixed bag of headlines in the global business press this morning<\/strong>, with everything from the latest tariff threats from Washington against India, to Israel saying it\u2019s coming up with \u201cnext steps\u201d on Gaza. <\/p>\n

Israel\u2019s security cabinet is set to meet this week \u201cto direct the IDF\u201d on how to achieve the <\/strong>country\u2019s \u201cobjectives\u201d on Gaza<\/strong>, Israeli Prime Minister Benjamin Netanyahu said yesterday<\/a>, referring to Tel Aviv\u2019s goals to wipe out Hamas and rescue the remaining Israeli hostages. Netanyahu\u2019s remarks \u2014 which come as the death toll from Israel\u2019s attacks on Gaza surpass 60k \u2014 are reportedly being met with some disagreements within his cabinet, as some ministers and military officials see little more to be gained with continued military aggression. (Reuters<\/a> | Bloomberg<\/a>)<\/p>\n

Meanwhile, US President Donald Trump plans to impose \u201csubstantially\u201d higher import <\/strong>tariffs on India<\/strong> because of its continued reliance on Russian oil imports. New Delhi \u2014 which Trump accused in a post on Truth Social<\/a> of turning around and selling \u201cmuch of the oil purchased\u201d from Russia at a margin \u2014 is looking unlikely to budge on its current oil purchasing strategy despite the tariff threats. (Reuters<\/a> | CNN<\/a> | Financial Times<\/a>)<\/p>\n

Also worth knowing this morning:<\/strong><\/p>\n