THIS MORNING: UAE-Russia trade agreement within months?

Good morning, wonderful people, and happy hump day. The newsflow has picked up slightly from earlier this week, but with a mix of themes spanning debt, investment, and M&A.

THE BIG THEME here at home is debt, with a USD 750 mn tier 2 debt sale from First Abu Dhabi Bank, a USD 540 mn sustainability bond issuance from Sharjah — its second this year — and a USD 1 mn venture debt transaction for agritrade startup Maalexi.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- Emergency response times set to improve: The cabinet approved yesterday technical regulations for emergency communications in vehicles aimed at shortening response times of emergency services by 40%, and cutting down death toll on the roads by 2%, Wam reports.

SPEAKING OF ROADS- Dubai’s Roads and Transport Authority has begun test running an AI-powered vehicle to detect road damage and inspect traffic diversions in a bid to boost road quality and safety, a press release reads.

#2- It’s going to become easier for graduates of foreign universities to specialize and get their certificates recognized, after the Education Ministry launches the second phase of its recognition system for certificates, according to a statement. The upcoming phase is set to see more streamlining in terms of required documentation, and will allow for the recognition of more academic specializations. The first phase of the initiative already slashed processing times for recognition certificates by 50%.

#3- Ajman’s public buses will now accept Visa cards: Passengers can pay their bus fares using Visa cards or mobile devices in Ajman after the Ajman Transport Authority partnered with Visa to introduce contactless payment services, Wam reports.

HAPPENING TODAY-

WEATHER- Dubai is set to see a daytime high of 44°C and an overnight low of 33°C, while the mercury in Abu Dhabi will rise to 39°C, with an overnight low of 33°C.

#1- Russia’s Innoprom 2024 — its largest industrial exhibit — kicked off Monday with the UAE as the partner country, and is scheduled to continue through 11 July. The UAE delegation is led by Industry Minister Sultan Al Jaber, who will highlight potential investments between the countries and promote industrial cooperation, according to a press release.

Could we see a trade agreement with Russia soon? “We anticipate the removal of excessive barriers to mutual trade in the near future. We are hopeful to conclude a preferential trade agreement within the coming months,” the National quotes Russian Industry and Trade Minister Anton Alikhanov as saying on Monday at the exhibit.

Russia’s Eurasian Economic Commission Minister Andrey Slepnev is set to meet with several UAE officials on the sidelines of the four-day exhibition, the National added.

#2- Progress on trade talks with the Philippines: The UAE and Philippines conclude their second round of negotiations on a trade and economic agreement today in Manila, the Manila Times reports. The discussions commenced on Monday. The countries are looking to finalize the agreement by October or November, Assistant Secretary for Industry Development and Trade Policy at the Department of Trade and Industry Allan Gepty said.

Background: The two countries agreed to initiate talks in December in a bid to boost trade and investment by facilitating the export of goods and services between the Philippines, the UAE, and the broader Gulf region.

DATA POINTS-

#1- The GCC’s tourism sector is set to contribute some USD 340 bn by 2030 to the region’s GDP, up from USD 130 bn in 2023, as regional governments look to airport infrastructure and public-private partnerships to boost the sector and diversify away from oil, Fitch Ratings said in a statement (pdf). This would account for more than 10% of the region’s GDP.

REFRESHER- Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum approved the design plan for the USD 35 bn new passenger terminal at Al Maktoum International Airport in April. The expanded airport is set to be the world’s largest, hosting over 260 mn passengers, handling 12 mn tons of annual cargo, accommodating around 400 aircraft gates, and featuring five parallel runways.

#2- The number of active economic licenses in Ajman increased 15% y-o-y in 1H 2024, to 37.8k active licenses, Wam reports, citing a Department of Economic Development in Ajman report. There was a 5% y-o-y increase in new license issuances, with 3k new licenses issued during the period, and 15k license renewals, up 9% y-o-y. Women’s clothing businesses, building maintenance, and restaurants were among the top activities newly licensed by the department.

THE BIG STORY ABROAD-

The Nato summit kicked off in Washington yesterday against the backdrop of Joe Biden’s teetering reelection campaign and developments in the Russia-Ukraine war — landing on most front pages with news of another support package for Ukraine, this time in the form of an air defense system. (Washington Post | Reuters | FT)

Biden’s speech at the summit stood in stark contrast with his performance at the presidential debate, with Reuters noting his “strong and confident voice” as he read off a teleprompter and looked to avoid signs of weakness.

Still, his future candidacy remains in limbo, with another key democrat — Mikie Sherrill — joining the growing call among Democratic lawmakers for him to drop out, while some others have pledged support, the Financial Times said.

ALSO HAPPENING YESTERDAY- US Federal Reserve Chair Jerome Powell kicked off his testimony before the Senate Banking Committee with a tee-up for an interest rate cut that could take place as soon as September, Reuters reports.

“Leaving monetary policy too tight for too long could unduly weaken economic activity and employment,” Powell said, adding that the US economy is no longer overheated, as inflation and the labor market both continue to cool.

OVER IN EUROPE- It’s a bad week for France on all fronts, as it faces a political stalemate and is kicked out of the Euros by a defiant Spain — led by 16-year-old wunderkind Lamine Yamal — in yesterday’s semi-final.

PLUS- Europe just launched its first rocket in almost 30 years, virtually “power[ing] Europe back into space,” European Space Agency Josef Aschbacher head said, after years of dominance from Elon Musk’s SpaceX. (FT | CNBC)