Good morning ladies and gentlemen, and welcome to a jam-packed issue as we kick off the first full workweek following the Eid Al Adha vacation.

The flavor of the day is all things M&A, with a flurry of transactions, including a consortium led by Brookfield snagging a majority stake in schools operator Gems Education and Masdar acquiring Greece’s Terna Energy.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- Private schools in Dubai will not be subject to full inspections during the 2024-25 academic year — except for new schools entering their third year in operation, Khaleej Times reports, citing a circular from the Knowledge and Human Development Authority (KHDA). A Dubai Schools Inspection Bureau (DSIB) team will carry out quality assurance visits targeting specific focus areas in place of inspections to monitor schools’ progress on their improvement plans, with full inspections expected to resume in the 2025-26 academic year.

What does this mean for school fees? Private school fees for the next academic year remain ambiguous amid the pause in inspections, with fee increases typically tied to inspection ratings. Private schools wishing to be graded for the 2024-25 academic year can submit a request to the DSIB for a full inspection from the KHDA up until 5 July.

#2- Companies subject to the new corporate tax which have already received their licenses must submit their corporate tax registrations by 30 June to avoid being fined AED 10k, Wam reports, citing a statement from the Federal Tax Authority. The authority has urged companies to adhere to the specified deadlines (pdf) set in March to avoid breaching tax laws.

You can register via the Federal Tax Authority’s EmaraTax platform.

#3- Your regularly scheduled reminder that regulations for social media ads come into effect next week: The Abu Dhabi Department of Economic Development issued a reminder for influencers and businesses in the emirate to ensure they have the necessary permits and licenses to be able to use social media ads to promote their business, Gulf News reports. As of next Monday, 1 July, failure to comply with regulations will result in a penalty of up to AED 10k and the possibility of the business being shut down.

#4- Dubai’s toll gate operator Salik will introduce a no-barrier parking fee collection service at the Dubai Mall parking, starting 1 July, using vehicle plate recognition, according to a press release (pdf). Parking will be at no cost for the first four hours on weekdays and six hours on weekends, after which charges will apply.

WATCH THIS SPACE-

#1- UAE-India cooperation is going to be in the spotlight this week: Indian External Affairs Minister S. Jaishankar landed in the UAE yesterday, as part of a state visit to review the comprehensive economic strategic agreement between India and UAE with his counterpart Sheikh Abdullah bin Zayed Al Nahyan, according to a statement from India’s Ministry of External Affairs.

The India-Middle East-Europe Economic Corridor (IMEC) project has kicked off operations nine months after its announcement, focusing on establishing the first leg between India and the UAE via sea and rail links, The Print reports. Efforts are currently underway to streamline procedures across the Indian ports of Mundra, Kandla and Nhava Sheva as well as the UAE ports of Jebel Ali and Fujairah. India set a 100-day deadline to complete operations on the first leg.

#2- Adia + CVC make another play for Hargreaves: British financial services company Hargreaves Lansdown is considering a GBP 5.4 bn takeover bid from a consortium of the Abu Dhabi Investment Authority (Adia) and private equity firm CVC Capital, the Telegraph quotes the UK stockbroker’s board as saying last week. The revised offer — the third to date — is priced at GBP 11.40 per share, and includes a GBP 0.30 per share dividend that can be reinvested. The consortium most recently offered GBP 4.7 bn in May.

What’s next? The British investment platform extended the deadline for the bidders to make a firm takeover offer to 19 July.

#3- Abu Dhabi-backed RedBird IMI kicked off the sale of British papers the Telegraph and Spectator on Friday, a RedBird spokesperson told Reuters. RedBird is seeking first-round bids by the end of July, aiming to close the transaction in the summer, the Financial Times reports, citing people familiar with the matter. This is the second time RedBird IMI receives bids for the papers, after it launched an auction in May.

Who could be biting? Interest in the two papers has “remained extremely strong,” a RedBird IMI spokesperson said, stating that the firm has been in talks with “several interested parties.” Hedge fund owner Paul Marshall. DMGT, which owns the Daily Mail, Belgian Group Mediahuis, and National World are among the bidders vying for the two papers, according to Reuters.

RedBird IMI wants to recoup its losses: RedBird IMI, a JV between Deputy Prime Minister Sheikh Mansour bin Zayed Al Nahyan’s International Media Investments and RedBird Capital Partners, is looking to sell the papers to recoup the GBP 600 mn invested last year to acquire the assets, before the takeover bid fell through. The Barclay Family is also expected to fail to repay the debt after the Telegraph incurred a GBP 240 mn loss in 2023, Bloomberg reports.

ICYMI- The JV tapped Raine Group to oversee the sale process and was said to be considering various options, including converting its call option into shares with the British Department for Culture, Media, and Sport. Selling the Spectator independently could fetch over GBP 100 mn.

#4- UK engineering firm Wood Group is looking to expand its presence in the region as it considers a potential buyout by Dubai-based Sidara, The National reports. The firm plans to establish an energy transition hub in Abu Dhabi in August amid rising interest in its carbon capture, renewable energy, and hydrogen solutions across the Middle East, Gerry Traynor, senior vice president of projects, Middle East, told The National. An increasing number of customers in the region are prioritizing decarbonizing operations, with Oman aiming to become a hydrogen hub, Traynor added.

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THE BIG STORY ABROAD-

Expect a big week of politics to dominate headlines in the global business press, though AI and the stock market (is a correction finally in the cards?) aren’t going anywhere anytime soon.

Elections will be the big theme, with three televised debates setting up a high-stakes week for incumbents on both sides of the pond:

  • French Prime Minister Gabriel Attal takes on his top right- and left-wing challengers on Tuesday;
  • Across the Channel, sitting Prime Minister Rishi Sunak goes head-to-head with Labour’s Keir Starmer in a leaders’ debate on the BBC this Wednesday;
  • Joe Biden takes on Donald Trump this Thursday in the first of two televised debates. (They will meet again on 10 September.)

French voters go to the polls in snap parliamentary elections this coming Sunday — an FT poll suggests voters trust the right-wing Rassemblement National more on the economy than they do Emmanuel Macron’s centrist bloc. And voters in Iran follow suit this Friday, casting their votes for a new president.

HEAT is also in the headlines after Saudi Arabia confirmed more than 1.3k pilgrims died during this year’s Hajj — the vast majority of the deaths were heat-related — and as much of the US and Canada swelters under a heat dome.

WAR WATCH- Netanyahu says his assault on Gaza will enter a more “targeted” phase “very soon.” The Israeli leader was speaking in his first televised interview since October of last year. Meanwhile, an Israeli air assault killed eight people at an aid distribution center yesterday.

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