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Good morning, ladies and gentlemen, and welcome to a busy start to a new week. It’s a relatively economy-heavy news morning, although there are also a handful of big investment stories to keep an eye on.
THE BIG STORY here at home is sovereign wealth fund ADQ signing a USD 35 bn agreement to develop a large stretch of land in Egypt’s North Coast, marking Egypt’s largest direct investment agreement. The investment gives ADQ development rights in Ras El Hekma, where it will develop a “next-generation city” housing tourism, urban, commercial, and recreational spaces, alongside a freezone and an investment zone.
^^The full story leads this morning’s news well, below.
HAPPENING TODAY-
#1- Abu Dhabi is hosting the World Trade Organization’s Ministerial Conference from today through this Thursday. The meeting takes place against the backdrop of intensifying geopolitical tensions and global disruptions to trade amid Houthi attacks in the Red Sea.
Key on ministers’ agenda: Reviving the WTO’s long-idle dispute system, which has been deadlocked for years due to the US’ blockage of judge appointments; scrapping subsidies that promote unsustainable fishing practices; making a decision on the extension of a moratorium that, if expired, would impose new customs duties on e-commerce transactions; and scrapping domestic agriculture subsidies in developing countries.
Today will see discussions on trade and sustainable development, including industrial policy and inclusion. You can find the full agenda here.
ALSO- The UAE is providing a USD 10 mn grant to support WTO initiatives and fundsslated for launch at the meeting, state news agency Wam reports. The funds include a fisheries funding mechanism, the Enhanced Integrated Framework, and the Women Exporters in the Digital Economy.
MORNING MUST-READ: While we’re on the topic of the ministerial, go read Financial Times columnist Rana Foroohar’s two cents on the meeting, which she expects to fall short of addressing “the core problem” of “unsustainable economics and politics around the world.”
#2- The Dubai Dutyfree Championship continues today with the men’s singles: Pavel Kotov takes on Sebastian Korda at 10am, followed by Andy Murray’s match against Canada’s Denis Shapovalov on the center court at 12pm. Check out the full schedule here.
ICYMI- Italy’s Jasmine Paolini took home the women’s title on Saturday after beating Russia’s Anna Kalinskaya with a final score of 4-6, 7-5, 7-5. Over in the women’s doubles, Storm Hunter and Katerina Siniakova beat Ellen Perez Nicole and Melichar-Martinez, 6-4, 6-2, to claim the doubles title.
Can’t get enough tennis? The World Tennis Association tour’s final is set for Saturday, 2 March. You can buy tickets for both the women’s WTA tournament and the men’s ATP here.
#3- Today is the second and last day of the Sharjah International Summit on Improvement in Education, held at the Sharjah Education Academy under the theme “Pioneering Future Education.” The event brings together 60 speakers from 17 countries, to discuss education technology and the adoption of AI in the education sector.
PUBLIC SERVICE ANNOUNCEMENTS-
#1– Another rainy day ahead: The National Center of Meteorology forecasts some fog for today, with a chance of rain throughout the day, following last night’s light showers.
#2-You can visit Sharjah’s museums without paying for tickets until next Sunday, 3 March, owing to this year’s Sharjah Heritage Days showcase, reports Wam. The Sharjah Museums Authority is also rolling out a mobile bus museum featuring Sharjah Museum collections, which is scheduled to run in Dibba Al Hisn on Wednesday, and the Heart of Sharjah next Friday and Sunday, according to Khaleej Times. Find the full list of museum events here.
#3-Red marks the limit: The Abu Dhabi municipality marked major roads with red signs, marking new speed limits for safety, Gulf News reports.
WATCH THIS SPACE-
#1-Adnoc’s USD 30 bn OMV merger on hold? The Abu Dhabi National Oil Company (Adnoc) and Austria-based integrated oil and gas company OMV have reportedly put their “pencils down,” halting negotiations between the two companies over merging ADX-listed Borouge with Borealis to “navigate a series of disagreements,” the Financial Times reports, citing people familiar with the talks who said that the two companies had been closing in on a final agreement in mid-December.
Spanners in the works: The issues that stalled the talks range from the name of the potential merged entity to “the more serious.” However, an agreement could potentially be reached as the two companies are “in ongoing and open-ended negotiations and cannot comment further,” OMV told the salmon-colored publication.
ICYMI- Adnoc and OMV were set to resume negotiations and finalize the terms of the agreement this week. Both companies were reportedly negotiating over the merged entity’s potential trading venue or headquarters, the need for job assurances in Austria, and the appointment of an Austrian chairman for the new entity.
#2-New AED 700 mn Al Khail road improvement project: Dubai’s Roads and Transport Authority awarded an AED 700 mn contract for a new project to improve the Al Khail road, which aims to reduce travel time by 30% by expanding bridge and intersection capacity, according to a statement. The project also includes improving several spots along Al Khail Road, including Zabeel, Meydan, Al Quoz 1, Ghadeer Al Tair, and Jumeirah Village Circle.
#3-Construction tender prices in the UAE are projected to rise by 2-3% in 2024, primarily on the back of rising costs of key commodities, a robust market, and higher demand from specific projects and contractors, according to a Currie and Brown report. Shipping challenges caused by the ongoing disturbances in the Red Sea present a significant risk to the industry this year, potentially leading to higher costs and longer delivery times. The report adds that supply chain disruptions may lead businesses to explore alternative solutions such as air freight, albeit at a premium. However, logistics solutions, including analytics and real-time tracking, can aid in mitigating the impact of disruptions. There also persists a shortage of skilled labor, exacerbated by the competition for talent between the UAE and Saudi Arabia
#4- The UAE’s floating hospital arrived at Al Arish port in Egypt to provide critical medical aid to Palestinians, Wam reports. The ship will operate with a 100-bed capacity, as well as operating rooms, intensive care and radiology units, a laboratory, and a pharmacy, to provide care as part of the Gallant Knight 3 humanitarian operation.
DATA POINTS-
#1- Dubai expects to welcome over 17 mn tourists this year, Dubai Corporation for Tourism and Commerce Marketing Issam Kazim tells Khaleej Times. Kazim forecasts the emirate will beat its record high of 17.15 mn tourists in 2023 — which surpassed 2022 figures by growing 19.4% y-o-y — owing to green investments to reduce carbon footprints and appeal to eco-conscious travelers. “Attracting new and repeat visitors from across our international markets is key” to pushing growth, Kazim adds.
#2- The number of digital customs transactions through Abu Dhabi’s ports grew 72% y-o-y in 2023, the Abu Dhabi Media Office reported. Proactive and automated transactions increased by 24.3% y-o-y, customs declarations grew 6% y-o-y, and pre-arrival customs clearance transactions grew 20% y-o-y.
#3- DEWA generated 6.2 terawatt-hours of clean energy, up 32.7% y-o-y in 2023, according to Emarat Al Youm. The figure constituted 11% of the total energy output for the year.
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MARKET WATCH-
OPEC+ cuts are here to stay — at least through 2Q: OPEC+ is forecast to maintain its 2 mn bpd output trim into the next quarter in an attempt to balance out global oil markets against a backdrop of waning demand and rising US crude supply, according to a Bloomberg survey. Fourteen of the 17 traders and analysts surveyed by the business newswire expect the oil cartel to maintain the cuts, while three see the curbs being eased gradually.
What the pundits are saying: “They’ll have to extend their cuts,” Bob McNally, who leads consulting firm Rapidan Energy Group, told Bloomberg TV. “Supply is exceeding demand, and to keep prices stable, OPEC+ has to keep that oil off the market,” McNally said. “OPEC+ have no choice but to extend the current cuts in order to avoid a meltdown,” said Tamas Varga, an analyst at brokerage PVM Oil Associates.
BIG STORY ABROAD-
It’s a (fairly typical) slow Monday in the global business press. A rebound in (developed market) housing prices leads the front page of the Financial Times, while the Wall Street Journal has split its focus, writing that Donald Trump is “on the brink of securing” the Republican nomination and that Nvidia is on the cusp of entering a new, much larger market — with significantly more competition. Reuters also has Trump on its mind, while Bloomberg can’t really decide what’s news, leading the homepage with a spot report on the price of oil.
For our fellow tech nerds: Lenovo earlier this morning showed off a prototype of a laptop with a see-through screen and a no-key keyboard (ugh), while Apple is said to be preparing for a March event. Look for the tech giant to unveil its first iPad Pro redesign in years, a new iPad Pro keyboard that looks more Mac-like, and MacBook Airs with M3 processors.
CIRCLE YOUR CALENDAR-
The Dubai International Boat Show is set to take place at the Dubai Harbor from this Tuesday, 28 February to next Sunday, 3 March. The event will showcase over 1k brands and over 200 boats from renowned shipyards like Azimut, Sunseeker Gulf, and Gulf Craft, and serves as a crucial sales and networking platform for both local manufacturers and global distributors.
Abu Dhabi’s Department of Culture and Tourism’s Souq Al Wahat will host an African parade on Saturday and Sunday, 2-3 March, reports the Abu Dhabi Media Office. Souq Al Wahat will open its doors again the following weekend (until Sunday, 10 March) with its final weekend dedicated to American culture, hot dogs, and country dancing.
The World Skate Tour will kick off its Middle Eastern leg on Sunday, 3 March, reports the Dubai Media Office. The Middle East’s debut pro skating event will return to Dubai Harbor next week, with over 500 skaters from 65 countries competing in back-to-back rounds until Sunday, 10 March, with finalists qualifying for the Summer Olympic Games. Tickets for the tour’s two-week stop in Dubai can be purchased through Virgin Radio, for more information and the full schedule, check out the Adara website.
Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.
