{"id":96810,"date":"2024-10-15T00:00:00","date_gmt":"2024-10-15T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/this-morning-opec-cuts-oil-demand-growth-forecasts-for-2024-and-2025-emirates-prepares-for-serious-talks-with-boeing-over-777x-delays\/"},"modified":"2024-10-15T00:00:00","modified_gmt":"2024-10-15T00:00:00","slug":"this-morning-opec-cuts-oil-demand-growth-forecasts-for-2024-and-2025-emirates-prepares-for-serious-talks-with-boeing-over-777x-delays","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/10\/15\/this-morning-opec-cuts-oil-demand-growth-forecasts-for-2024-and-2025-emirates-prepares-for-serious-talks-with-boeing-over-777x-delays\/","title":{"rendered":"THIS MORNING: Opec+ cuts oil demand growth forecasts for 2024 and 2025 + Emirates prepares for serious talks with Boeing over 777X delays"},"content":{"rendered":"

Good morning, friends<\/strong>, and welcome to another busy news day. We\u2019re going to dive right in. <\/p>\n

UP FIRST- Are we really doing this again? <\/strong>Bloomberg<\/a> reports that the United States is once again looking into whether to limit sales of advanced AI chips to our part of the world. \u201cOfficials are focused on [Gulf] countries that have a growing appetite for AI data centers,\u201d the business information service writes, citing unnamed officials it says have knowledge of the matter. <\/p>\n

The caveat:<\/strong> \u201cDeliberations are in early stages and remain fluid,\u201d Bloomberg adds.<\/p>\n

We thought we were largely done with this? <\/strong>After a brief spell of tension over AI and chips earlier this year, National Security Advisor Sheikh Tahnoon and his US counterpart, Jake Sullivan, said in a statement last month<\/a> that Abu Dhabi and Washington \u201clook forward to deepening collaboration across AI and related technologies to propel their strategic partnership forward \u2026 underpinned by a shared commitment to safe, secure, and trustworthy AI.\u201d <\/p>\n

Background: <\/strong>The US already maintains some limits on exports of chips with AI applications to more than 40 countries in the Middle East, Asia, and Africa on fears that they could be re-exported to China.<\/p>\n

MEANWHILE- $WAP-USD cross trades, anybody? <\/strong>The crypto press is abuzz this morning with an unconfirmed report that the UAE Securities and Commodities Authority has asked the US securities regulator to join an investigation into allegations that singer Cardi B<\/a> is promoting a meme token known as $WAP in what amounts to a pump-and-dump scheme. The source of the excitement is a letter posted on X by a UAE-based venture capitalist \u2014 you can read the letter here (pdf)<\/a>, with the caveat that the SCA has not yet confirmed that any of this is real. <\/p>\n

AND- <\/strong>By the numbers: <\/strong>DIFC added 5k new jobs last year. <\/p>\n

\n

\n

WEATHER- <\/strong>\u2600\ufe0f We\u2019re in for a warm day in Dubai and Abu Dhabi, with the mercury reaching 37\u00b0C before cooling to an overnight low of 28\u00b0C in both emirates.<\/p>\n

WATCH THIS SPACE- <\/p>\n

<\/a> Emirates is gearing up for \u201cserious conversations\u201d with Boeing after the latest <\/strong>setback in the delivery of the widebody 777X<\/strong>, now delayed to 2026, Bloomberg<\/a> reports, citing remarks by Emirates President Tim Clark, who expected to take first deliveries in 2020. The delay has forced Emirates into \u201cexpensive amendments\u201d to its fleet program, including a costly retrofit of its existing Airbus jets to keep them operational until the new planes arrive. Clark\u2019s fleet plan includes both the 777X and Airbus A380 double-deckers.<\/p>\n

REFRESHER<\/strong>- Boeing has delayed the 777X delivery multiple times, most recently in <\/a>July<\/a><\/a>. Following the July schedule, Clark said that he \u201cwould not take kindly\u201d to further delays caused by a growing backlog of orders, and that he doesn\u2019t expect Boeing\u2019s 777X aircraft to enter commercial services before 2026.<\/p>\n

PUBLIC SERVICE ANNOUNCEMENT-<\/p>\n

<\/a> Companies are off the hook for submitting economic substance reports for <\/strong>financial years that end after 31 December 2022<\/strong>, Wam<\/a> reports. The finance ministry scrapped the requirement as part of amendments tied to the UAE's federal corporate tax overhaul. Businesses still need to fulfill compliance obligations for previous years, which include responding to regulatory inquiries and settling any outstanding penalties.<\/p>\n

Economic substance explained: <\/strong>Back in 2019, the UAE rolled out economic substance regulations to ensure that businesses have a genuine economic presence and operations in the country before they can take advantage of its low tax environment.<\/p>\n

\n

HAPPENING TODAY-<\/p>\n

#1- <\/strong>Gitex Global<\/a><\/strong> continues today and runs through to Friday<\/strong> at the Dubai World Trade Centre and Dubai Harbor. The event gathers leaders from large tech firms, as well as government representatives, emerging startups, investors, and corporate buyers to showcase the latest innovations in technology, including AI, cybersecurity, and cloud computing.<\/p>\n

#2- Happening alongside Gitex is Expand North Star<\/strong>, which kicked off on Sunday and runs until Wednesday at the Dubai Harbor. The event will also include an AI startup competition \u2014 DMCC x AGCC: Global AI Challenge - Sustainability Edition<\/a> \u2014 to identify innovative AI solutions that contribute to sustainability in the GCC region.<\/p>\n

Fintech Surge<\/a><\/strong> is also taking place alongside Gitex<\/strong>, bringing together over 12k investors and 100 exhibitors, serving as a platform for fintech firms to showcase their innovations. The Future Blockchain Summit<\/strong> is also taking place as part of the event until Wednesday. <\/p>\n

#3- The IEEE \/RSJ International Conference on Intelligent Robots and Systems (<\/strong>IROS<\/a><\/strong>2024<\/a><\/strong>) began on Monday <\/strong>and runs till Friday at Adnec Center Abu Dhabi \u2014 its first time in the Middle East. Hosted by Khalifa University of Science and Technology, the annual robotics conference will be attended by researchers, academics, and global industry professionals.<\/p>\n

\n

DATA POINTS-<\/p>\n

<\/a> #1- Dubai Internet City saw 10% y-o-y growth in registered companies in 1H 2024<\/strong>, executive vice president of commercial and Dubai Internet City managing director Ammar Al Malik told CNBC Arabia on the sidelines of Gitex Global (watch, runtime: 2:18)<\/a>. Notable firms opening in the city this year include Hisense<\/strong>, which launched its R&D center last month<\/a>, and US-based <\/a> Salesforce<\/a><\/strong><\/a>.<\/p>\n

Tecom is poised to reveal strategic partnerships between Dubai Internet City and both <\/strong>South <\/strong>Korea and India<\/strong>, among others, according to Al Malik. The partnerships come as part of Tecom\u2019s efforts to attract more investors to the set up shop in the city. <\/p>\n

<\/a> #2- More people are stopping over in Abu Dhabi: <\/strong>Etihad Airways\u2019 Abu Dhabi Stopover program welcomed 24k international visitors in 1H 2024, up 242% from 7k visitors in 2H 2023, according to the Abu Dhabi Media Office<\/a>. The initiative is on track to hit its targeted 75k international stopover visitors for 2024, Etihad Airways CEO Antonoaldo Neves said.<\/p>\n

\n

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

It\u2019s a busier-than-usual Tuesday in the international press<\/strong>, so let\u2019s jump right in with no further preamble:<\/p>\n

#1- Canada expelled five Indian diplomats (including New Delhi\u2019s high commissioner to <\/strong>Ottawa), prompting India to PNG six Canadians just hours later <\/strong>as a diplomatic rift between the two deepened. Canada\u2019s soon-to-depart charge d'affaires in New Delhi said \u201cCanada has provided credible, irrefutable evidence of ties between agents of the government of India and a murder of a Canadian citizen on Canadian soil.\u201d The story leads front pages on both sides of the Atlantic (New York Times<\/a> | Financial Times<\/a> | Reuters<\/a> | BBC<\/a>)<\/p>\n

Further reading: <\/strong>How geopolitics caught up with Canada<\/a> in the FT.<\/p>\n

#2- The price of oil dipped nearly 3% overnight after a <\/strong>Washington Post<\/a><\/strong> report that Israel <\/strong>will not target Iran\u2019s oil infrastructure <\/strong>in retaliation for Tehran\u2019s 1 October missile strike. Benjamin Netanyahu is said to have told the White House Israel will attack only \u201cmilitary targets.\u201d<\/p>\n

MEANWHILE- Israel killed at least 21 people in an airstrike <\/strong>on northern Lebanon, BBC<\/a> reports.<\/p>\n

#3- Britain is prioritizing trade talks with GCC countries and India<\/strong>, the UK\u2019s Business and Trade minister said yesterday<\/a>. Talks between Britain and the GCC countries are set to resume next week, he said. Reynolds was in our part of the world last month to kickstart the talks<\/a>.<\/p>\n

#4- And the Nobel goes to\u2026 <\/strong>Three researchers who have focused on how colonial legacies impacted the relative prosperity of colonized countries shared the 2024 Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel. \u201cTheir research also indicates that more economically inclusive and politically democratic systems prove more conducive to technological innovation and long-run growth,\u201d the FT<\/a> noted. Check out the original announcement here<\/a>. <\/p>\n

OTHER NEWS worth knowing about on this busy morning:<\/strong><\/p>\n