{"id":93466,"date":"2024-07-03T00:00:00","date_gmt":"2024-07-03T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/g42s-partnership-with-microsoft-at-risk\/"},"modified":"2024-07-03T00:00:00","modified_gmt":"2024-07-03T00:00:00","slug":"g42s-partnership-with-microsoft-at-risk","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/07\/03\/g42s-partnership-with-microsoft-at-risk\/","title":{"rendered":"G42\u2019s partnership with Microsoft at risk?"},"content":{"rendered":"

Good morning, lovely people, and happy hump day. <\/strong>It\u2019s another relatively slow newsday here at home, with only a handful of stories on the energy, investment, and finance fronts worth your attention \u2014 plus: fresh data on the real estate market in the first half of the year.<\/span><\/p>\n

THE BIG STORY here at home<\/strong> is United Al Saqer Group\u2019s USD 200 mn investment in UK-based VFX studio DNEG Group \u2014 the latest sign of interest from an Abu Dhabi investor in the film and media industry. <\/p>\n

PUBLIC SERVICE ANNOUNCEMENTS-<\/p>\n

#1- We\u2019re not getting a long weekend next week<\/strong>, after the Human Resources and Emiratisation<\/a>Ministry<\/a> announced Sunday, 7 July as a public holiday for both the public and private sectors in observance of the Islamic New Year. From what we hear, managers have already started notifying employees that Monday will be a normal working day. <\/p>\n

#2- School certificates will now be attested in three minutes instead of six days<\/strong>, following the integration of the Foreign Affairs Ministry\u2019s document attestation service with Emirates School Establishment\u2019s (ESE) school certificate issuance service, according to a statement<\/a>. Users can apply through ESE's digital channels by selecting Foreign Affairs Ministry attestation at the same time.<\/p>\n

This initiative is part of the <\/strong>Zero Government Bureaucracy<\/a><\/strong> program, <\/strong>aimed at slashing 2k government procedures and cutting service durations by 50% by the end of the year. <\/p>\n

#3- The Federal Tax Authority is reminding businesses with licenses issued in May to <\/strong>register for the corporate tax by 31 July<\/strong> to avoid penalties, according to a press release<\/a>. Users can register through the EmaraTax platform<\/a>. <\/p>\n

WEATHER- Brace yourselves for an exceptionally humid day in Dubai (63%) and Abu Dhabi (80%)<\/strong>, according to our favorite weather app.<\/strong> Dubai will see a daytime high of 42\u00b0C and an overnight low of 33\u00b0C, while Abu Dhabi will see temperatures hit 37\u00b0C before the mercury dips to 34\u00b0C at night.<\/p>\n

WATCH THIS SPACE- <\/p>\n

<\/a> #1- Is G42\u2019s USD 1.5 bn partnership with Microsoft at risk of falling through? <\/strong>That\u2019s according to Bloomberg<\/a>, which claims that Pentagon officials are doubting Emirati AI conglomerate\u2019s commitment to fully divest from China, potentially \u201cimperiling national security,\u201d citing people familiar with the matter. Shipments of advanced AI chips like Nvidia\u2019s H100 have been paused as the US mulls the potential impacts of their export, which Bloomberg says officials are now seeing as tantamount to nuclear proliferation. Officials are hoping to come to an agreement on this in the coming months, sources said.<\/p>\n

REMEMBER- <\/strong>Microsoft is investing some USD 1.5 bn<\/a> in G42 to position the UAE as a \u201cglobal AI hub.\u201d G42 has already cut ties with Chinese businesses<\/a> in a bid to reportedly appease US partners, and there were suggestions it could also give up its use of Huawei telecom equipment. The second phase<\/a> of the agreement entails Microsoft exporting large-scale AI components to the UAE, which will require licenses from the American government.<\/p>\n

The US wants to make this work: <\/strong>The potential partnership gives a boost to Washington\u2019s push to position US companies at the forefront of AI development and gives it reach in emerging markets where China has historically been dominant, such as Kenya<\/a>, where Microsoft and G42 agreed to build a USD 1 bn geothermal data center. <\/p>\n

But it will likely require a lot of diplomatic work: <\/strong>Several bipartisan staff delegations have already been to the UAE in recent weeks in an effort to ensure the UAE is aware of Washington\u2019s concerns and is taking the necessary measures, with more expected to come, Bloomberg cites a House Foreign Affairs Committee Republican staffer briefed on the trips as saying. <\/p>\n

SPEAKING OF THE US- The country added six companies to its trade restriction list, including two UAE firms<\/strong>, Mega Fast Cargo and Mega Technique General Trading, for \u201cevasive conduct\u201d and Mega Fast Cargo's shipment of US goods to Russia, Reuters<\/a> writes. <\/p>\n

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<\/a> #2- Adia-backed consortium is among top bidders for DB Schenker:<\/strong> Global investment manager CVC, which is leading a consortium that includes Abu Dhabi Investment Authority (Adia) and Singapore\u2019s GIC, and Denmark-based logistics firm DSV, have become the front-runners to acquire German Deutsche Bahn\u2019s logistics subsidiary DB Schenker after Maersk withdrew its bid<\/a>, Bloomberg<\/a> reports, citing people it says are in the know. <\/p>\n

Final bids are due to be submitted in August<\/strong>, the sources said, adding that Saudi shipping firm Bahri submitted one of the highest non-binding offers in the previous round, but it remains uncertain if it will make a final bid by the deadline. Meanwhile, the CVC-led consortium\u2019s bid has reportedly valued DB Schenker at EUR 14 bn, but offered to allow the German government or a related fund to retain a 20% stake in the company.<\/p>\n

REMEMBER- <\/strong>CVC tapped Adia and GIC in May<\/a> to form the consortium. Deutsche Bahn is expected to make a decision by the end of the year, with the transaction expected to close sometime next year<\/a>. <\/p>\n

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#3-<\/strong> FinMin is giving precedence to five sectors in upcoming PPPs: <\/strong>The Finance Ministry plans to prioritize the infrastructure, energy, healthcare, social services, and education sectors in the first phase of its upcoming public-private partnerships (PPPs), according to a statement<\/a>. This comes as part of the ministry\u2019s legislative framework<\/a> for PPP regulation, which seeks to boost the private sector\u2019s role in national projects.<\/p>\n

<\/a> #4- Dubai's demand-side sustainability strategy for 2050 is getting an update: <\/strong>Dubai\u2019s ruler Sheikh Mohammed bin Rashid Al Maktoum issued an order to update Dubai\u2019s Demand Side Management (DSM) Strategy 2050, which aims to achieve energy efficiency by managing demand for electricity, according to Dubai Media Office<\/a>. <\/p>\n

The updated strategy aims to save at least 86.8 Terawatt Hours (TWh) of electricity<\/strong>, 383.2 bn imperial gallons of water, and around 1.8 bn liters of transport fuel by 2050. It also includes 12 programs that cover net zero buildings, consumer behavior, water recycling, mobility, fuel, cooling, and lighting efficiency, among others.<\/p>\n

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

Picking up exactly where we left off yesterday<\/strong>, the global business press remains squarely focused on fallout from the US presidential debate and a court ruling on Trump\u2019s presidential immunity.<\/p>\n

Donald Trump\u2019s sentencing in his hushmoney trial was delayed to 18 September<\/strong>, only weeks before US voters go to the poll, Reuters<\/a> reports. The delay comes after the controversial Supreme Court ruling on his immunity from prosecution for<\/a> \u201cofficial acts\u201d while in office. At question is whether the judge will now have to throw out evidence that bolstered prosecutors\u2019 case. <\/p>\n

Meanwhile, Biden is still <\/strong>blaming his debate performance<\/a><\/strong>jet lag<\/a><\/strong> as more Democrats raise concerns around his health and ability to serve a second term. See: <\/p>\n