{"id":99811,"date":"2025-01-20T00:00:00","date_gmt":"2025-01-20T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/this-morning-mubadala-to-restructure-getir-uae-russia-move-closer-to-double-taxation-avoidance-agreement\/"},"modified":"2025-01-20T00:00:00","modified_gmt":"2025-01-20T00:00:00","slug":"this-morning-mubadala-to-restructure-getir-uae-russia-move-closer-to-double-taxation-avoidance-agreement","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/01\/20\/this-morning-mubadala-to-restructure-getir-uae-russia-move-closer-to-double-taxation-avoidance-agreement\/","title":{"rendered":"THIS MORNING: Mubadala to restructure Getir + UAE, Russia move closer to double taxation avoidance agreement"},"content":{"rendered":"

Good morning, friends. <\/strong>We\u2019ve got a brisk issue to kick off the week. Here are a few highlights for you:<\/p>\n

The World Bank has slightly downgraded its growth forecast for the UAE in 2025, <\/strong>while KKR is looking at a stake in Dubai\u2019s Gulf Data Hub. Plus, new environmental regulations are coming to Abu Dhabi. Catch up on these stories and more below.<\/p>\n

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\u2600\ufe0f We\u2019re in for a sunny start to the week: <\/strong>The National Center of Meteorology forecasts (pdf)<\/a> crisp conditions across the country today, with fair to partly cloudy skies and light-blowing winds. Temperatures in Dubai<\/strong> are expected to hit 23\u00b0C during the day, with an overnight low of 19\u00b0C, while Abu Dhabi <\/strong>is expected to see temperatures hitting 20\u00b0C, and an overnight low of 19\u00b0C.<\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- <\/strong>Abu Dhabi sovereign wealth fund Mubadala is set to restructure <\/strong>Turkish startup <\/strong>Getir<\/strong>, after it received the green light from the company\u2019s shareholders at an extraordinary general meeting (EGM) on Sunday, Bloomberg<\/a> reports, citing a statement from Mubadala. The wealth fund applied for sole ownership of Getir\u2019s grocery and food delivery businesses with Turkish antitrust authorities in September<\/a>, after acquiring a controlling stake in the company back in June<\/a>, leading a USD 250 mn funding round tied to the company\u2019s restructuring.<\/p>\n

Under Mubadala\u2019s restructuring plan<\/strong>, Getir's profitable local grocery delivery operations would be separated from the company\u2019s noncore businesses. The Abu Dhabi fund says<\/a> the move is necessary to stabilize the company, whose valuation fell to USD 2.5 bn in 2023 from USD 11.8 bn in 2022 amid cashburn and exits from key markets, including the UK, Germany, the Netherlands, and the US.<\/p>\n

REFRESHER- <\/strong>Last week<\/a>, Getir founder Nazim Salur initiated legal action to challenge Mubadala\u2019s move to seek full control of Getir, which he described as an \u201cillegal coup\u201d aimed at reducing the founders\u2019 stake to zero, urging Mubadala to uphold the June agreement to split Getir into two entities. Though the company\u2019s other co-founders, Serkan Borancili and Tuncay Tutek, have not commented publicly, a source with direct knowledge of the planned lawsuit told Reuters<\/a> that the founders claimed Mubadala \u201cintentionally delayed\u201d transferring units to them and reneged on the agreement at the end of last year.<\/p>\n

Salur is not backing down: <\/strong>In an X post<\/a>, the company\u2019s founder labeled the EGM as \u201cunlawful,\u201d pointing out that only two out of nine board members participated in the resolution to call the meeting. Sulur plans to challenge the decision in courts in the Netherlands, Turkey, and England, with a hearing on the matter scheduled for 24 January at the Enterprise Chamber of the Amsterdam Court of Appeal.<\/p>\n

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<\/a> #2- <\/strong>Redbird might fly away from IMI with The Telegraph acquisition :<\/strong> US fund manager RedBird Capital might attempt to acquire a stake in The Telegraph separate from its partnership with the Abu Dhabi-owned media investment company IMI, the Financial Times<\/a> reports, citing sources it says are familiar with the matter. Meanwhile, the UK is considering doubling its proposed higher cap of foreign state ownership of the country\u2019s news outlets to 10% to encourage investments, other sources told the newswire.<\/p>\n

Bidders are already lined up:<\/strong> Leon Black, Apollo Global Management\u2019s co-founder, is reportedly in discussions<\/a> to become an anchor investor in a EUR 550 mn bid to acquire the newspaper from the UAE\u2019s RedBird IMI, led by New York Sun owner Dovid Efune. Moreover, Efune is in talks with Ben Black, Leon Black's son, who will be channeling the investment if it goes through. Meanwhile, Todd Boehly, co-owner of Chelsea Football Club, is also considering backing Efune or possibly launching a competing offer.<\/p>\n

REMEMBER- <\/strong>Abu Dhabi-backed RedBird IMI formally withdrew<\/a> its bid to acquire The Telegraph and Spectator earlier in May, following months of opposition from the UK government.<\/p>\n

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<\/strong>#3- <\/strong>Beirut-born retailer <\/strong>Azadea Group<\/a><\/strong> is reportedly looking to go public<\/strong>, Bloomberg<\/a> reports citing people it says are familiar with the matter. Dubai Holding \u2014 owned by the Emirate\u2019s ruler \u2014 owns 25% in the Makhzoumi family-owned retailer. The Middle-East\u2019s operator of Zara and Virgin Megastores has reportedly invited banks to pitch for roles on the potential IPO. There\u2019s no publicly available information about the potential stake size, or listing venue. <\/p>\n

Background: <\/strong>Dubai Holding acquired a minority stake in Azadea Group back in 2018 in a transaction that valued the retailer at USD 1 bn. The state-owned investment vehicle had weighed the sale of its stake in Azadea in September 2023<\/a> which saw Dubai Holding tap JPMorgan and Rothschild as advisors.<\/p>\n

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<\/a> #4- <\/strong>Gulf investors, including the UAE and Saudi Arabia, are expected to play a<\/strong> pivotal <\/strong>role in Zambia\u2019s push to increase its copper output<\/strong> to some 1 mn tons this year, up from the estimated 720k tons it produced in 2024, Jito Kayumba, special assistant for finance and investment to Zambia\u2019s president, was quoted as saying by Bloomberg<\/a>. \u201cThe UAE is aggressively pursuing new investments,\u201d he added. This comes as Zambia aims to quadruple its copper output by the early 2030s.<\/p>\n

UAE firms are already making strides in Zambia:<\/strong> Abu Dhabi-based International Resources Holding \u2014 which acquired a 51% stake<\/a> in the Zambian Mopani Copper Mines company in March \u2014 has already raised production at its Zambian mining site by 32% and is targeting 150k tons in output this year, Kayumba said.<\/p>\n

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#5- <\/strong>Kenya could triple its meat and horticultural exports to the UAE<\/strong> on the back of the recently-signed<\/a> economic partnership agreement, Kenyan Principal Secretary for Trade Alfred K\u2019Ombudo told Bloomberg (watch, runtime 8:00<\/a>). \u201cBecause we\u2019ve agreed to sanitary and phytosanitary procedures, this should be able to more than triple, because we also see the UAE as a transshipment hub for these products to the rest of the Gulf,\u201d he said.<\/p>\n

ALSO- This partnership will support oil trade<\/strong> between the two nations<\/strong> by streamlining export procedures and creating a framework for investment and dispute resolution, K\u2019Ombudo said.<\/p>\n

REMEMBER-<\/strong> The UAE-Kenya economic partnership agreement aims to deepen trade and investment ties, strengthen supply chains, and improve market access across the Middle East and Africa. The agreement focuses on certain sectors including agriculture, retail, healthcare, financial services, technology, and tourism sectors, as well as accelerating investment in ICT, banking, tourism, infrastructure, and renewable energy.<\/p>\n

This isn't their first cooperation<\/strong> as the Abu Dhabi sovereign wealth fund ADQ and Kenya\u2019s National Treasury and Economic Planning Ministry inked a USD 500 mn investment framework back in April 2024<\/a>. Both parties also finalized a trade and economic agreement in February<\/a> to cooperate on investments and developing several industrial sectors. In addition, Kenya is currently in discussions<\/a> with the UAE to help the country extend its Standard Gauge Railway to connect it with Uganda and South Sudan.<\/p>\n

Meanwhile, the African country\u2019s discussions with Abu Dhabi regarding its <\/strong>USD 1.5 bn<\/a><\/strong> loan are still ongoing<\/strong>, K\u2019Ombudo said. The African country is expected to receive USD 700 mn at the start of 2025, with the remaining funds to be distributed later.<\/p>\n

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<\/a> #6- <\/strong>UAE + Russia move cl<\/strong>oser to signing double taxation avoidance agreement:<\/strong> The UAE\u2019s Finance Ministry wrapped up the final negotiations round with Russia for a dual taxation avoidance agreement on income and capital, with the two sides signing a draft agreement, Wam<\/a> reports. The agreement aims to protect taxpayers\u2019 rights, prevent double taxation, and promote investment and trade.<\/p>\n

ICYMI-<\/strong> A mutual taxation agreement between the UAE and Bahrain received unanimous<\/a>approval<\/a> from the Bahraini Shura Council last week, with the aim of protecting individuals and companies from double taxation. The Finance Ministry also signed agreements with Bahrain, Egypt, and Kuwait at the World Government Summit last year<\/a> to eliminate dual taxation in a bid to crack down on tax evasion.<\/p>\n

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<\/a> #7- <\/strong>Abu Dhabi Customs greenlit the establishment of a new customs cent<\/strong>er, Al Faya <\/strong>Dry Port Customs Center<\/strong>, according to the Abu Dhabi Media Office<\/a>. The Customer Service Office of Abu Dhabi Customs will oversee the new center, which will offer 24-hour service throughout the week.<\/p>\n

ICYMI-<\/strong> Abu Dhabi Customs introduced the Integrated Customs Operations System<\/a> earlier this month, a tech solution that uses artificial intelligence and predictive analytics to streamline customs and trade processes.<\/p>\n

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#8- <\/strong>Private property owners in Sheikh Zayed Road and Al Jaddaf a<\/strong>reas can now <\/strong>convert their ownership status to freehold<\/strong>, the Dubai Land Department said according to Wam<\/a>. A total of 457 plots are eligible under the initiative, including 128 plots in Sheikh Zayed Road and 329 in Al Jaddaf.<\/p>\n

Eligible owners can file applications to the Dubai Land Department for land assessment <\/strong>and valuation.<\/strong> Eligibility can be confirmed via the Dubai REST smart app (available on the App Store<\/a> and Google Play<\/a>).<\/p>\n

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DATA POINTS-<\/p>\n

#1- <\/strong>Wizz Air Abu Dhabi saw 20% y-o-y growth in seat capacity an<\/strong>d passenger <\/strong>numbers in 2024, offering over 4.4 mn seats and flying over 3.5 mn passengers<\/strong>, according to the Abu Dhabi Media Office<\/a>. The budget airline also optimized its network by increasing capacity by 40% on popular routes, bringing over 1.2 mn international visitors to Abu Dhabi.<\/p>\n

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#2- <\/strong>The UAE topped the Arab world as the most attractive destinati<\/strong>on for auto sales\u2019 <\/strong>investment and business in 2024<\/strong>, the Kuwait-based Arab Investment and Export Credit Guarantee Corporation (Dhaman) said in a report, Wam<\/a> reports. <\/p>\n

The details:<\/strong> The UAE accounted for 38% of the region\u2019s auto parts imports last year. In addition, the country is among five Arab nations that captured 145 out of 184 foreign projects carried out in the industry, along with Saudi Arabia, Morocco, Algeria, and Egypt.<\/p>\n

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PSAs- <\/p>\n

#1- Salik announces the road toll pricing schedule<\/strong> for the month of Ramadan<\/strong> in a disclosure to the DFM (pdf)<\/a>.<\/p>\n

Here\u2019s the breakdown:<\/strong><\/p>\n