Good morning, lovely people, and happy hump day. This week’s news flow has yet to let up, with today’s issue bringing you a batch of M&A updates from e&, Magrabi, Masdar, and more, along with more updates from the president’s trip to the US.

ON THAT NOTE- President Mohamed bin Zayed Al Nahyan met with the CEOs of Nvidia, Microsoft, and BlackRock to discuss their cooperation in AI and other advancements in the sector, state news agency Wam reports.

REMEMBER- The three companies are at the center of the UAE’s partnership with the US in AI. State-owned AI firm G42 started receiving AI chips from US chipmaker Nvidia after the US government greenlit the exports earlier this year, getting the ball rolling on the second phase of Microsoft’s USD 1.5 bn investment in G42. Meanwhile, BlackRock is leading on a new USD 30 bn AI infrastructure fund backed by Abu Dhabi-based investment firm MGX and Global Infrastructure Partners.

WATCH THIS SPACE-

#1- Abu Dhabi’s Taqa voiced its interest in taking part in a EUR 1.9 bn power interconnection project that will link Europe’s power grids with the Middle East’s, according to a statement from Cypriot government Spokesperson Konstantinos Letymbiotis. The energy firm’s potential participation in the project was discussed during a meeting between Cypriot President Nikos Christodoulides and Taqa executives in New York.

More soon: Delegations from Taqa and Cyprus are set to meet in the coming weeks to outline a roadmap for the next steps of the potential partnership, according to Letymbiotis.

Taqa has been in the running to join the project since December, when the energy firm inked an MoU to explore joining Greece’s transmission system operator Independent Power Transmission Operation and Cyprus as a stakeholder in the 900-km Great Sea Interconnector project, connecting Greece’s grid network to Cyprus.

Where is the project currently at? Last week, Greece and Cyprus signed an MoU to resume work on the project, with future plans to extend the interconnector to Israel. Slated for completion by 2030, the fully extended 1.2k km-long, 3k meter-deep cable is set to be the world’s longest and deepest high-voltage direct current interconnector.

ALSO- Taqa partners on desalination initiative: Taqa, along with French utility firm Suez and German technology conglomerate Siemens, will participate in a desalination initiative targeting emerging markets, Reuters reports, without disclosing further details.

#2- Emsteel eyes Celsa’s European mills: ADQ-owned Emirates Steel Arkan (Emsteel) is in talks with senior officials from Spanish steelmaker Celsa to voice its interest in acquiring its mills in Poland, the UK, and Norway, Spanish newspaper el Economista reports, citing anonymous sources. While it’s not yet clear whether the three mills would be sold in a single transaction, the sale could be valued at around EUR 1 bn euros (USD 1.11 bn), according to the newspaper.

Background: Celsa onboarded Citi earlier in February for the possible divestment of the three overseas businesses, as part of the company’s restructuring plan. The Polish unit was expected to generate the most at around EUR 800 mn, followed by the Nordic unit (EUR 300 mn) and Celsa Steel UK (EUR 200 mn).

#2- Real estate, financial, industrial, and utilities stocks are expected to become the best performing sectors on UAE bourses over the next 18 months, economists told Al Bayan in a poll. Returns on investments in stocks are averaging 5.5%, the economists said. DFM-listed stocks in particular are expected to grow 12% by the end of 2024, with shareholders now reeling in a dividend yield of 5.71%, John said.

#3- UAE-backed Catalytic Transition Fund (CTF) will pull the trigger on the first round of investments as soon as this year, having already secured half of its USD 5 bn fundraising target, Brookfield’s Chair and Head of transition investing Mark Carney said during a high-level roundtable hosted by the UAE’s Alterra fund during New York Climate Week, according to a statement (pdf). The fund aims to bridge the financing gap in emerging markets while driving “collaboration between public and private finance to accelerate net zero transition,” Carney added.

ICYMI- Brookfield closed a USD 2.4 bn funding round for CTF from investors, including Caisse de dépôt et placement du Québec (CDPQ), GIC, Prudential, and Temasek, earlier this week. CTF is anchored by a USD 1 bn commitment from Alterra fund set up by UAE-backed USD 30 bn Alterra.

About Alterra: The vehicle was launched last year at COP28 to mobilize USD 250 bn globally by 2030 to finance the new climate economy and accelerate the climate transition, the statement notes. Alterra’s initial commitment — along with BlackRock, Brookfield, and TPG — was USD 6.5 bn to climate-dedicated funds. Alterra recently said it will direct an extra USD 200 bn to investments over the next six years, after saying it aims to mobilize USD 250 bn in green investments by 2030.

PUBLIC SERVICE ANNOUNCEMENTS-

WEATHER- The weather is much like yesterday in Dubai today, with a high of 39°C and a low of 29°C, according to our favorite weather app. It’s a couple of degrees cooler in Abu Dhabi, with a high of 35°C and a low of 30°C.

#1- Several UAE airlines suspended Beirut flights amid escalating violence between Israel and Hezbollah, which saw at least 569 people killed in Lebanon since Monday. Emirates suspended flights between Dubai and Beirut yesterday and today, it said in a travel update, while budget carrier Flydubai also canceled Beirut-bound flights for both days, Khaleej Times reports. Abu Dhabi-based Etihad Airways halted flights to and from the Lebanese capital yesterday, with the three airlines now monitoring the situation.

#2- Overstayers who were granted amnesty status will have until 31 October to leave the country, whereas they were previously given only 14 days to leave once receiving their exit permit, Director of the Client Happiness Department Salem Bin Ali told Khaleej Times.

Overstayers are also not required to renew their passports if they are valid for longer than one month, after the Federal Authority for Identity and Citizenship eased its previous requirement to renew passports if validity will expire within six months, state news agency Wam reports. The decision came in a bid to overcome long passport renewal processing times.

Remember: The government kicked off a visa overstay amnesty program at the start of September to allow anyone overstaying their visa to get their paperwork in order or to leave the country without fines.

#3- The Abu Dhabi Housing Authority launched a field survey campaign to inspect government-provided housing units for violations, such as illegal rentals or misuse of properties, according to the Abu Dhabi Media Office. Vacant units will also be inspected. A one month grace period will be provided to violators to rectify their current conditions, after which prosecution measures will be initiated, Khaleej Times reports.

The campaign will also communicate financing solutions to the owners, offering loans for maintenance, demolition, and reconstruction.

HAPPENING TODAY-

#1- The World Congress on Rehabilitation (WCR) 2024 is on its final day at the Abu Dhabi National Exhibition Centre, Wam reports. The event aims to address global challenges faced by people with disabilities in the job market and promote awareness of their rights and capabilities.

#2- The World Freezones Organization’s Annual International Conference and Exhibition is on its final day in Dubai. The event will discuss zones and the shifting dynamics of global economic structures to open up new avenues for investment.

#3- The Freight Summit Global Conference continues today and runs until Thursday. The conference is slated to bring together over 400 international freight forwarders to network and boost partnerships globally.

#4- The UAE National Committee for Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organizations is hosting the 2024 Asia Pacific Group on Money Laundering (APG) annual meeting, which kicked off on Sunday and will run until Friday, marking the first time the forum is held in the Middle East, state news agency Wam reports.

#5- Gulfood Green is on its second day today, and runs until tomorrow at the Dubai World Trade Centre. The event connects startups and investors in the FoodTech and AgriTech sectors, exploring new methods of food production, trade, and consumption. You can register here.

#6- The Global Aerospace Summit kicks off today and will run until tomorrow in Abu Dhabi. The summit will gather key players in the global aerospace supply chain industry along with high level industry and government officials to discuss industry services, legal structure and resource sharing.

#7- The Middle East Treasury Summit 2024 kicked off yesterday at the Grand Hyatt Dubai. Wrapping up today, the conference gathers treasury professionals and financial experts from across the region to engage in finance-focused discussions.

#8- Foreign Affairs Minister Sheikh Abdullah bin Zayed Al Nahyan, is heading the UAE delegation at the UN General Assembly, which kicked off yesterday and will wrap up on 30 September, Wam reports.

THE BIG STORY ABROAD-

Israel’s bombardment of Lebanon is still the top story in the international press — the business press included — with the barrage of attacks having killed at least 569 people, including 50 children, over the course of the last two days. While Israeli airstrikes targeted Beirut’s southern suburbs — claiming to have killed Hezbollah’s missiles division head Ibrahim Kobeissi — and the border region, Hezbollah targeted military targets, including a military and naval base, in northern Israel.

Speaking in New York on the sidelines of yesterday’s UN meetings, Lebanon’s foreign minister Abdallah Bou Habib called US President Joe Biden’s address to the UN “not strong” and “not promising,” adding that the US — Israel’s biggest arms supplier and key ally — “is the key…to our salvation.” The UN Security Council will meet today to discuss the escalating violence between Israel and Hezbollah today.

WHILE IN OIL NEWS- No peak oil yet, says OPEC, with the oil cartel saying they expect world oil demand to increase 18% to 120.1 mn barrels per day by 2050, in stark contrast to other international organizations — including those within the petroleum industry — that expect to see oil demand fall as the world transitions to low carbon and green fuels.

AND- EU officials raided Nasdaq and Deutsche Borse offices in two EU member states yesterday, as the European Commission investigates possible anti-competitive practices related to financial derivatives, the FT reports. Both companies said that they were cooperating with EU authorities on the investigation.

ALSO- UniCredit’s battle to take over Commerzbank is heating up, with the German government throwing its weight against Italian UniCredit’s proposed takeover of German Commerzbank. German Chancellor Olaf Schulz said Monday that the government “supports Commerzbank’s strategy of independence,” adding that it does not support a takeover, which would cede financial clout to Italy and lead to a raft of job cuts in Germany.

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