Good morning, ladies and gentlemen, and welcome to what has shaped up to be a very busy Tuesday. The flavors of the day are sustained M&A activity — primarily beyond Emirati borders — along with plans and expectations of stronger investment performance this year.

THE BIG STORY: Fitch sees the UAE and Saudi Arabia leading the GCC’s investment pipeline in 2024, despite the agency expecting the region to have an overall “neutral” year in terms of investment activity.

^^ We have the full story in this morning’s news well, below.

WATCH THIS SPACE-

#1-Renewed talks on the Borouge-Borealis petrochemical merger: The Abu DhabiNational Oil Company (Adnoc) and Austria-based integrated oil and gas company OMV are set to resume talks this week on the final terms of an agreement initially announced in July to combine ADX-listed Borouge with Borealis, Reuters reports, citing three sources familiar with the details of the transaction. Reuters and Bloomberg have both reported on the near-finalization of the estimated USD 30 bn merger since late last year.

The sticking points: Neither party has settled on a trading venue or headquarters for the new entity, with some sources suggesting a potential dual-listing in the UAE and Vienna. Other pending issues include the need for job guarantees in Austria, and the appointment of an Austrian chairman for the new entity.

Adnoc and OMV are expected to have an equal controlling stake in the merger, with OMV potentially injecting some EUR 1.7 bn into the merger to ensure an equal stake to Adnoc, sources told Bloomberg back in November.

#2- Masdar’s 1 GW solar project in Iraq is on track to be submitted for review at the Iraqi cabinet, Zawya reports, citing statements from Iraq’s Electricity Minister Ziyad Ali Fadel. The project, which will span four regions in Iraq, is pending the cabinet’s final approval and potential tax exemptions. The plant will have an output capacity of 1k MW in the first phase.

Breakdown: The project comprises a 450 MW facility in the Dhi Qar governorate, a 100 MW plant and a 250 MW plant in Ramadi, a 100 MW plant in Mosul, and a 100 MW plant in Amarah.

#3- Abu Dhabi launches accessibility initiative: The Abu Dhabi Department of Community Development (ADDCD) and our friends at Aldar Properties rolled out a new strategy to help assist individuals with disabilities and senior citizens in accessing public facilities, with the first phase of the strategy kicking off this quarter at Yas Island before it’s rolled out to the rest of the country at a later stage, The National reports. The strategy will include boosting accessibility to transport and housing, as well as education, health, social and entertainment services.

#4- Green asset manager Offset8 Capital is set to expand its operations in Japan: Abu Dhabi-based asset manager Offset8 Capital, which focuses on nature-based carbon removal projects, plans to establish an office in Tokyo by 3Q 2024, co-founder Jules Maitrepierre told Asharq Business. Offset8 Capital aims to have four employees in Japan by the end of the year, with plans to double its workforce in the country by 2025.

#5- Local suppliers are using overland routes in Dammam to get goods to Saudi Arabia instead of the regular seaborne routes, Gulf News reports.

“Dammam has become the single most important option for shippers — not just to keep costs down, but ensure they can deliver the orders from Saudi Arabia on time,” an undisclosed trader in FMCG goods told Gulf News. The route from Jebel Ali to Dammam fares AED 5k, inclusive of Saudi border charges.

Emirati exporters aren’t the only ones looking for alternative routes: Container shipping costs from Europe to the Gulf have increased by USD 1k for a standard twenty-foot container in recent weeks. Global air cargo tonnages have increased 24% from the previous week, with cargo owners increasingly eyeing air transport due to longer ocean voyages, Transport & Logistics Middle East reports, citing WorldACD Market Data.

HAPPENING THIS WEEK-

The Sharjah Consultative Council (SCC) will reconvene thisThursday, reports Sharjah 24.The agenda includes approving the minutes of the last session, in addition to reviewing the statement of directions for the next stage and the drafted parliamentary response to Sharjah Ruler Sultan bin Mohammed Al Qasimi’s opening speech at the SCC work ceremony on 14 December.

DATA POINTS-

#1- Dubai has seen traffic improvements across 14 sites in 2023, slashing travel times by up to 50% and upping vehicular capacity by up to 25% in some areas, according to a Dubai Roads and Transport Authority (RTA) news release. The improvements spanned across adding more lanes to streets in downtown, Umm Suqeim, and Al Fay Street, to adding exits and u-turns.

More improvements are underway: RTA plans to continue to implement improvements to help reduce traffic as part of a wider plan to implement 45 projects during FY 2023-2024. The projects will focus on some 31 sites in Dubai, including Sheikh Mohammed bin Zayed Road, Al Awir Street, Abu Baker Al Siddique Street, Al Rebat Street, Al Khail Road, and Al Meydan Street.

#2- Ras Al Khaimah Economic Zone (Rakez) saw an 86% y-o-y increase in new company registrations in 2023, with over 7,800 businesses joining, Wam reports. Nearly 100 existing businesses in Rakez also expanded their operations across various sectors in 2023.

#3- More women are now working in the private sector: Women’s participation in the private sector surged by 23.1% y-o-y in 2023, Wam reports, citing data from the Human Resources and Emiratisation Ministry.

GREEN FINANCE-

Mashreq to integrate carbon offsetting feature for clients:Our friends at Mashreq have inked an agreement with ESG infrastructure payment firm Fils that will allow its clients to integrate a carbon offsetting feature into their Mashreq corporate accounts, according to a company statement. The offering will allow clients to purchase carbon credits directly through Mashreq’s platform instead of going through the conventional voluntary carbon market route, the statement said.

THE BIG STORIES ABROAD-

#1- US and British forces launched another round of attacks last night against Houthi targets in Yemen, hitting what they said were the Tehran-backed group’s missile capabilities as well as underground storage sites. The two struck eight sites, with unspecified support from Australia, Bahrain, Canada, and the Netherlands.

It’s the second major strike aimed at stopping Houthi attacks on Red Sea shipping. The story is leading the front pages of the Wall Street Journal and Reuters. It’s also getting plenty of ink from others including the Financial Times and the New York Times.

#2- It’s a big day in US politics as voters in New Hampshire head to the polls in a primary that media are almost uniformly positioning as challenger Nikki Haley’s last chance to stop Donald Trump from cruising to the Republican nomination. Trump foe Ron Desantis has already dropped out of the race.

Uh, Enterprise? Isn’t this the first primary? It is, for the GOP, at least. Haley is hoping to upset Trump, who has a commanding lead in the polls, and US and UK media seem convinced that it’s all over for the former UN ambassador and South Carolina governor if she doesn’t beat him tonight.

Need more? Head over to Politico (here and here), the Associated Press, New York Times, or Financial Times.

ALSO worth knowing about this morning:

  • Want to send the kid to study in Canada? Ottawa is imposing a two-year cap on international student visas as part of a bid to tamp down skyrocketing housing prices. (Reuters | Globe and Mail)
  • BlackRock is reorganizing to capture more business from clients rotating out of cash ahead of anticipated interest rate cuts. The big emphasis: a single exec leading a new unit in charge of product creation across the board. The move comes just days after its USD 12.5 bn acquisition of Global Infrastructure Partners. (Financial Times)
  • The Dow has broken past 38k for the first time and the S&P 500 reached a new high yesterday. (WSJ | Reuters)

CIRCLE YOUR CALENDAR-

Emirati real estate developers will be in Sao Paulo, Brazil, for the UAE Property Forum, hosted by the Emirati embassy in Brazil and the Consulate General in Sao Paulo. The exhibition runs from 29-30 January at the Tivoli Mofarrej São Paulo Hotel, Brazil, according to a press release.

The Mubadala Abu Dhabi Tennis Open will take place from Saturday, 3 February to Sunday 11 February at Zayed Sports City’s International Tennis Centre. The tournament will see participation from four-time Grand Slam champion Naomi Osaka, plus Elena Rybakina, Ons Jabeur, Maria Sakkari, and Barbora Krejčíková, reports The National.

Young entrepreneurs can pitch their early education startup ideas at the Abu Dhabi Youth Challenge: Techstars Startup Weekend, running for three days from Friday, 2 February, to Sunday, 4 February at Cloud Spaces ADGM in Abu Dhabi. Participants get 54 hours to develop startup ideas under the mentorship of founders and investors, form teams with which they can develop a demo or prototype, and then present their ideas to a panel of judges. The top three teams will get AED 30k.

The Middle East Bunkering Convention will take place from Monday, 5 February through to Wednesday, 7 February at the Hilton Dubai Jumeirah. The event will bring together industry experts to tap into issues affecting the global marine fuel sector, including supply chains, decarbonization, and new fuels.

The UAE Tour Women will take place from 8-11 February starting in Dubai and ending in Abu Dhabi. The event will feature three sprint stages and a mountain climb up Jebel Hafeet, spanning 468 km from Dubai to Abu Dhabi. Riders will compete for the competition’s Red, Green, White and Black jerseys.

The Sustainable Aviation Futures MENA will kick off on Monday, 12 February through to Wednesday, 14 February at Kempinski Central Avenue. The event will see 80 expert speakers and upwards of 200 high level attendants and will handle topics pertaining to regulation, financing, and investments in Sustainable Aviation Fuels (SAF) in MENA.

The UAE will host the Future Warehouse & Logistics 2024 Conference from Monday, 12 February to Wednesday, 14 February in Dubai. The event will handle means for supply chain leaders to boost resilience and overcome challenges, with discussions on disruptions, sustainability, Internet of Things (IoT), automation, workplace management and other topics.

Breakbulk Middle East 2024 will take place from Monday, 12 February, to Tuesday,13 January, in Dubai. The event is being hosted by the Ministry of Energy and Infrastructure to address industry challenges and identify prospects for growth in the UAE, KSA, and East Africa.

The Ras Al Khaimah Half Marathon is returning on Saturday, 24 February, on Al Marjan Island. The World Athletics Gold Label event will welcome athletes, running enthusiasts and amateurs alike. You can register here.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

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