{"id":108956,"date":"2025-10-30T00:00:00","date_gmt":"2025-10-30T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/this-morning-abu-dhabi-to-invest-up-to-usd-2-bn-in-indias-logistics-sector-cbuae-cuts-interest-rates-by-25-bps\/"},"modified":"2025-10-30T00:00:00","modified_gmt":"2025-10-30T00:00:00","slug":"this-morning-abu-dhabi-to-invest-up-to-usd-2-bn-in-indias-logistics-sector-cbuae-cuts-interest-rates-by-25-bps","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/10\/30\/this-morning-abu-dhabi-to-invest-up-to-usd-2-bn-in-indias-logistics-sector-cbuae-cuts-interest-rates-by-25-bps\/","title":{"rendered":"THIS MORNING: Abu Dhabi to invest up to USD 2 bn in India\u2019s logistics sector + CBUAE cuts interest rates by 25 bps"},"content":{"rendered":"

Good morning, lovely people.<\/strong> We have a busy, investment-heavy issue for you this morning, with plenty of news out of the country\u2019s sovereign wealth fund and biggest corporate players. <\/p>\n

Renewables energy giant Masdar and the Abu Dhabi Investment Authority look set to be taking India\u2019s Renew Energy private <\/strong>after raising their offer price; while Mubadala just acquired a stake in a Madrid-based university. Meanwhile, Al Futtaim Group is one of several firms pledging to expand in Saudi Arabia as FII continues in the Kingdom this week, with some USD 2.7 bn in investments earmarked over the next three years. <\/p>\n

BUT FIRST- The Central Bank of the UAE cut interest rates for the second time this year<\/strong>, lowering them by 25 bps in line with the US Federal Reserve\u2019s move in its meeting yesterday, according to a statement (pdf)<\/a>. The base rate applicable to the overnight deposit facility was cut to 3.90%, while the rate applicable to borrowing short-term liquidity remains the same at 50 bps above the base rate for all standing credit facilities.<\/p>\n

We have more on what drove the Fed\u2019s decision and what\u2019s expected for the rest of the year<\/strong> in this morning\u2019s Planet Finance, below. <\/p>\n

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WEATHER- <\/strong>Expect a high of 34\u00b0C in Dubai <\/strong>today, and a low of 26\u00b0C, while Abu Dhabi <\/strong>will see a high of 33\u00b0C and a low of 25\u00b0C. <\/p>\n

WATCH THIS SPACE- <\/p>\n

<\/a> #1-<\/strong> UAE to <\/strong>invest up to USD 2 bn in India\u2019s logistics sector:<\/strong> Abu Dhabi is planning on investing upwards of USD 2 bn in India\u2019s Maharashtra\u2019s ports and shipbuilding sector, according to a statement on<\/a>X<\/a> . <\/strong>The agreement \u2014 inked between Abu Dhabi Ports Group, Abu Dhabi Investment Office, and India\u2019s Maharashtra Ports Department \u2014 aims to focus on shipbuilding, ship-breaking, as well as shipping and port infrastructure. <\/p>\n

The two countries have been boosting logistics cooperation:<\/strong> India and the UAE were planning to expand their 10-year trade agreement<\/a> to include eight new sectors \u2014 including logistics \u2014 with an aim of more than USD 100 bn in annual bilateral trade. Last year, India and the UAE inked several agreements<\/a> on bilateral trade, including setting up a multi-modal trade corridor.<\/p>\n

ALSO- DP World\u2019s marine and ship repair subsidiary \u2014 Drydocks World \u2014 inked a heads<\/strong> of terms agreement with India\u2019s Cochin Shipyard to set up India\u2019s first vessel repair cluster<\/strong> at the International Ship Repair Facility in Cochin, Kerala, according to a press release<\/a>. <\/p>\n

ICYMI- <\/strong>Earlier this year<\/a>, the two entities inked an MoU to develop ship repair clusters in Kochi and Vadinar, aiming to strengthen maintenance capacity and repair facilities. <\/p>\n

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<\/a> #2<\/strong>-<\/strong> S&P Global <\/strong>expects Dubai\u2019s<\/strong> economy to grow by an average of 2.9% between 2025 <\/strong>an<\/strong>d 2028<\/strong>, the global rating agency said in a research note<\/a>. The ratings agency primarily attributed its outlook to high levels of diversification, along with business-friendly regulations, an expanding tourism sector, and a strong real estate sector and investment interest. The emirate\u2019s GDP grew 3.2% last year despite regional geopolitical conflicts, outperforming other GCC countries, with the region's GDP averaging 1.5%.<\/p>\n

Non-oil sectors collectively make up 70% of Dubai\u2019s nominal GDP. <\/strong>These sectors include wholesale and retail trade, transportation and storage, financial services, manufacturing, real estate, and tourism, according to the report. <\/p>\n

Background: <\/strong>S&P Global sees the UAE\u2019s economy growing at an average of 4% over the next three years, also largely driven by an anticipated surge in oil-related activities in Abu Dhabi as Opec+ members continue to unwind earlier oil cuts. <\/p>\n

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<\/a> #3- Speaking of Dubai\u2019s tourism sector: <\/strong>The emirate\u2019s hotel market is heading for another record year, with occupancy projected to reach 81% in 2025 \u2014 up 4.6% y-o-y \u2014 as the emirate doubles down on its tourism, business, and events push, the National<\/a> reports, citing STR data. The emirate sits just behind New York and Las Vegas when it comes to occupancy rates.<\/p>\n

Prices are also going up<\/strong>, with average daily rates (ADR) in Dubai expected to climb 6.5% to AED 730. Meanwhile, Abu Dhabi hotels\u2019 ADRs are set to rise at an even higher clip by 13.7% y-o-y to AED 697 on the back of big entertainment events.<\/p>\n

\u201cThe competition is definitely heating up between Dubai and Abu Dhabi,\u201d<\/strong> said STR\u2019s Director of Client Relationships Sarah Duignan, noting that the price gap between the two markets has narrowed to AED 30 from AED 331 in 2015, as Abu Dhabi\u2019s premium offering is catching up. <\/p>\n

ICYMI- <\/strong>The UAE\u2019s hospitality industry has had a strong year so far<\/a>, with revenue per available room up 11.9% y-o-y in the year to August 2025, and occupancy reaching 78.5%.<\/p>\n

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#4- Alpha Dhabi reverses course on investment in Indonesian road toll infrastructure:<\/strong> Abu Dhabi-based holding company Alpha Dhabi has terminated discussions with Indonesian toll road developer PT Bakrie Toll Indonesia over a potential investment in road toll infrastructure in the country, according to a disclosure (pdf)<\/a> to the ADX yesterday. The company had entered a non-binding agreement<\/a> with the Indonesian firm earlier in September, but remained at a preliminary stage. No reason was provided for the termination of the agreement.<\/p>\n

#5- A<\/strong> trade agreement between the UK<\/strong> and GCC can be reached \u201cvery soon,\u201d<\/strong> Reuters<\/a> quoted UK Finance Minister Rachel Reeves as saying earlier this week. Reeves \u2014 on the first visit to the region by a British finance minister in six years \u2014 met with<\/a> Commerce Minister Majid Al Qasabi to talk trade, economic relations, and promising sectors and will hold talks with counterparts from Bahrain, Kuwait, and Qatar to advance negotiations with the block.<\/p>\n

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#6- <\/strong>Emaar<\/strong> Properties explores expansion in Saudi Arabia:<\/strong> Emaar Properties plans to expand its operations in Saudi Arabia, particularly within the tourism, residential real estate, and commercial retail sectors, Founder and Chairman Mohamed Alabbar said in an interview with Asharq Business<\/a>. This move comes amid strong performance reported from Emaar\u2019s linked ventures in the Kingdom, including Americana and Noon, with the latter exploring a dual-listing in Saudi Arabia and the UAE within the next two years. <\/p>\n

In similar news, Lulu Group also plans to expand its operations in the Kingdom<\/strong>, with plans to increase its stores from 70 to 100, chairman of the group told CNBC Arabia (watch, runtime: 4:12<\/a>) in an interview. <\/p>\n

HAPPENING TODAY- <\/p>\n

#1- The <\/strong>International Forum of Sovereign Wealth Funds<\/a><\/strong> kicks off today and runs through<\/strong> to Friday<\/strong> at ADGM. Hosted by Abu Dhabi Investment Authority and Mubadala Investment Company, the event brings together global CEOs and senior executives from sovereign wealth funds with combined assets of more than USD 10 tn, and serves as a platform to exchange ideas and insights on the role sovereign wealth funds play in responding to global volatilities and shaping economic resilience.<\/p>\n

#2- <\/strong>The<\/strong> Ras Al Khaimah Global Real Estate and Investment Summit<\/a><\/strong> is taking place<\/strong> today and will run until tomorrow <\/strong>at the Al Hamra International Exhibition and Convention Center in Ras Al Khaimah. The two-day event convenes global investors, policymakers, and developers to discuss shifts and trends in real estate, cross-border investment, and sustainability. The summit features over 40 expert speakers, aiming to connect capital with investment projects across the Middle East. <\/p>\n

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

It\u2019s a busy morning in the international business press<\/strong>, with a slew of Big Tech earnings, along with politics-related updates as Israel continues to strike Gaza despite claiming the ceasefire is still on, and as the Dutch national elections get underway. <\/p>\n

The key takeaways from Big Tech earnings: <\/strong><\/p>\n