Good morning, wonderful people. We have a busy issue for you this morning as we near the end of the week, with several big M&A transactions in the works and news of an AED-backed stablecoin to rival the USD.

PLUS- We have fresh insights into Gems Education’s landmark USD 3.2 bn sustainability-linked facility — and much more on the outlook on s-linked finance in the region — from a sit-down with global head of investment banking at Mashreq, Chiradeep Deb, who led negotiations as the lead sustainability coordinator on the transaction.

PUBLIC SERVICE ANNOUNCEMENTS-

Sixth, seventh and eighth graders to get project-based tests in lieu of mid-terms: The Education Ministry has overhauled the student assessment system across public schools for grades six through eight, replacing traditional end-of-term exams for the second term with skills-based projects, Wam reports, citing Education Minister Sarah Al Amiri. The new project-based evaluation aims to enhance students’ learning outcomes by “[focusing] on skill measurement, [and helping] students put theoretical knowledge into practice,” Al Amiri said.

HAPPENING TODAY-

#1- The Dubai Business Forum in Beijing, China kicked off yesterday and runs until today. The event gathers over 50 Dubai-based companies and 350 Chinese firms to explore potential investments in sectors like green tech, AI, healthcare, and renewable energy, president and CEO of Dubai Chambers Mohammad Ali Rashed Lootah told the National.

#3- The Global Bitumen, Petrochemicals & Petroproducts Conference kicked off at the JW Marriott Marquis Hotel in Dubai yesterday and wraps today. The conference brings together bitumen and petroleum producers, suppliers, and traders, to network and discuss trends and challenges in the industry.

WEATHER- The National Center of Meteorology forecasts fair weather with occasional clouds today. Temperatures will hit 39°C in Dubai, with an overnight low of 34°C, and 37°C in Abu Dhabi, before cooling to an overnight low of 34°C.

WATCH THIS SPACE-

#1- NMDC considers IPO for EPC services subsidiary: The National Marine Dredging Company (NMDC) Group is mulling selling shares in its subsidiary NMDC Energy, an EPC solutions provider for the energy sector, in an IPO, according to an ADX disclosure (pdf). NMDC’s board will hold a meeting tomorrow to look into the potential offering, the company said, without providing details on the size or value of the IPO planned.

#2- Dar Global taps int’l adviser as it eyes KSA, London expansion: London-listed Dar Global, the Dubai-based developer and global arm of Saudi Dar Al Arkan, tapped US giant financial advisory Rothschild & Co to help in its search for potential acquisitions and joint ventures in Saudi Arabia and London, according to a statement.

REMEMBER- Dar Global seeks to grow its annual revenue to USD 3 bn from USD 700 mn by growing its presence in the GCC, the company’s CEO Ziaad El Chaar revealed in June, adding at the time that the company is in talks over two “mega projects” in the UAE, without providing further details. Dar Global later announced plans to build a Trump Tower in Dubai, and another in Jeddah.

#3- Dewa, China probe energy collaboration: Dubai Electricity and Water Authority (Dewa) looked into potential investments with China and probed means for boosting partnerships with Chinese companies in the areas of renewable energy, energy storage, and smart power grids, Wam reports. Discussions of ramping up collaboration came during a meeting between Dewa’s CEO Saeed Mohammed Al Tayer and the Consul-General of China to Dubai Ou Boqian.

#4- Sharjah Ruler Sheikh Sultan bin Muhammed Al Qasimi approved creating 400 new jobs for the emirate’s citizens in several local government entities starting in September, Wam reports. The Sharjah Department of Human Resources will contact registered job seekers to match them with positions.

DATA POINTS-

#1- The UAE ranked first globally in attracting foreign direct investment (FDI) relative to its GDP in 2023, outpacing Costa Rica, the top FDI destination for the past three years, according to fDi Intelligence’s latest Greenfield FDI Performance Index. The UAE led with the highest FDI-to-GDP ratio out of 108 countries assessed, advancing two spots from the previous ranking. With the highest increase in FDI projects, up by 316 projects from 2022, the UAE’s rise was driven by growth in projects across the business services, tech, real estate, and industrial equipment sectors.

#2- The Sharjah Economic Development Department logged a 4.1% y-o-y increase in business licenses in 2023, with 6.4k business licenses issued (11.7%) and renewed (88.3%), Wam reports, citing its annual report. Growth was driven by Eitimad domestic licenses — licenses for home-based or online businesses — which saw issued licenses rise 21% during the year. E-commerce licenses saw renewals grow 34% and issuances increase 19% in 2023.

Foreign investment was up during the year: Foreign ownership licenses made up 13% of total licenses in 2023, with a total capital of AED 3.23 bn.

THE BIG STORY ABROAD-

Ahead of Jackson Hole meeting, Fed minutes show September rate hike are all the more likely: The “vast majority” of policymakers at the US Federal Reserve’s FOMC meeting in July agreed “it would likely be appropriate to ease policy at the [Reserve’s] next meeting,” provided inflation and employment data remain “encouraging,” according to the meeting minutes pdf.

The Fed officials agreed inflation is “moving sustainably towards” the target of 2%, with expectations of continued downward pressure on inflation figures in the months ahead, the minutes showed. Although some officials said there was room to enact the first round of cuts at last month’s meeting, they unanimously agreed to leave rates unchanged.

The minutes were published ahead of an annual gathering of central bankers at Jackson Hole, where US Federal Reserve Chair Jay Powell is scheduled to speak on the country’s economic outlook tomorrow. The data provide further impetus for Powell to make the case that kicking off a monetary easing cycle is unlikely to push rates back up, particularly as the Fed now grapples with the need to mitigate the risks of recession.

Markets have already priced in September rate cuts, with the majority expecting a 25 bps reduction next month, while futures have priced in a total of 100 bps of easing through the end of 2024. The story is broadly leading headlines in the international business press this morning: (Bloomberg | CNBC | Financial Times | Wall Street Journal)

OVER IN CHICAGO- Kamala Harris’ running mate and Minnesota Governor Tim Walz is set to take the stage at the Democratic National Convention, marking his first high-profile national speech. Also speaking at the convention overnight: Former US President Bill Clinton and former House Speaker Nancy Pelosi. (New York Times | Washington Post | Politico | Bloomberg | Reuters)

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CIRCLE YOUR CALENDAR-

The Intelligent Transport Systems World Congress will take place from 16 to 20 September in Dubai, marking its first time hosted outside Europe, North America, Australia, and East Asia, according to the Dubai Media Office. The Congress is expected to welcome 20k participants to explore innovations in smart mobility and transportation technology.

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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