Good morning, friends. It’s the final day of September, and we’re already feeling the change of the seasons.

🌧️WEATHER- Some rain after a long drought? Temperatures are expected to dip slightly, with a chance of rain in Dubai, after some rainfall in Sharjah, Al Ain, Ras al Khaimah, and Umm Al Quwain yesterday afternoon. The mercury is expected to peak at 39°C, with a chance of rain early in the afternoon, before cooling to 30°C overnight. Over in Abu Dhabi, temperatures will reach 36°C before cooling to 31°C overnight.

It’s a calm newsday here at home, typical to the start of the week, but we have more for you on soaring rents in Dubai’s office market, plus a lot of action on the diplomacy front as Dubai’s Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum wraps his visit to Uzbekistan with several agreements.  

The UAE said there has been a “heinous attack” on the residence of its ambassador in Khartoum, which it said caused extensive damage to the building, state news agency Wam reports. The Foreign Affairs Ministry accused the Sudanese army of the attack, without clarifying if Ambassador Hamad Mohammed AlJneibi was injured.

WATCH THIS SPACE-

#1- The UAE plans to release its new national climate action plan for 2025-2035 under the Paris Agreement before the Cop29 climate summit in November, Reuters quotes Cop28 president Sultan Al Jaber as saying. The move would make the Emirates the first major emitter to release its plan ahead of the February 2025 deadline, as it looks to encourage other countries to update their nationally determined contributions (NDCs).

#2- Homegrown renewables giant Masdar is “very keen on the Spanish market” as it looks to expand its presence there with current partners — like Endesa and Iberdrola — and new ones, after completing two major acquisitions in recent months, Masdar’s M&A Director Faisal Tahir Bhatti told Reuters. The company intends to be “very selective” in its approach, Bhatti added.

REMEMBER- Masdar is eyeing more acquisitions of both minority and controlling stakes in Europe’s green energy sector, with the continent set to be a crucial part of its plan to reach its 100 GW target capacity by 2030, its CFO Mazin Khan said in July.

Remember #2- Masdar reached an agreement last week to acquire Spanish renewable energy firm Saeta Yield from Canada-based investment firm Brookfield for USD 1.4 bn. The company also agreed in July to acquire a minority stake of a little under 50% in 2.5 GW of solar energy plants owned by Spanish power firm Endesa’s subsidiary EPGE Solar for EUR 817 mn. The company has reportedly been in talks with Endesa to develop a new project to generate over 5 GW of solar energy.

#3- Nigeria’s flag carrier will be able to resume flights to the UAE in the wake of the reciprocal flight agreement signed between both countries on Friday, Nigerian Aviation Minister Festus Keyamo said on X. This comes as Dubai-based carrier Emirates gears up to resume flights to Nigeria tomorrow.

REMEMBER-The UAE lifted a ban on Nigerian travelers in July, following a 21-month long hiatus due to difficulties repatriating funds from Nigeria.

#4 The UAE is interested in investing in Bangladesh’s Chattogram port, UAE Ambassador to Bangladesh Abdullah Ali Al Hamoudi was quoted as saying by the Business Standard. This came during a meeting with Bangladeshi Textiles, Jute, and Shipping Adviser M Sakhawat Hossain, where the latter called on the UAE to streamline Bangladeshi sailors’ access to transit visas.

DATA POINTS-

#1- The UAE accounted for 1.6% of the world’s foreign direct investment (FDI) inflows for greenfield projects from 2023 to July 2024, Zawya reports, citing data presented at the World FZO’s Annual World Congress in Dubai. The Middle East captured some 60% of FDI projects in freezones during the period, with Dubai leading the way.

#2- The Dubai Design District (d3) and Dubai Media City expect the global digital creative economy to reach AED 27 tn by 2030, according to a white paper study they conducted, which surveyed 400 design and media experts, the Dubai Media Office said. The study explores the effects of emerging technologies on skills and services, including fashion design, architecture, visual arts, advertising, and events.

#3- London-based project management and advisory firm Currie & Brown expects construction costs in the UAE to increase by 2-5% annually on the back of rising demand for new infrastructure, residential, commercial, and leisure developments, particularly in the hotel and leisure sectors, the firm said in a recent report.

#4- Dubai’s residents are bullish on the property market, with 72% of over 1.6k respondents surveyed in Betterhomes’ new Future Living report (pdf) expecting property prices to rise next year. As for rentals, 55% of tenants in the emirate anticipate rent hikes from 5-10% at the next renewal. Meanwhile, 36% of Dubai homeowners plan to buy another property for investment within the next one to three years.

Housing preferences in the emirate are tied directly to income levels, with mid to higher-income tenants opting for villas and townhouses, and lower to middle-incomers preferring apartments, the report highlights.

#5- The UAE received a ‘medium’ risk rating in the London Stock Exchange Group’s Country Risk Classification as it raised its score to 5.86, moving it up 13 places in the ranking, Wam reports. The UAE also climbed on the Basel AML Index, the money laundering and terrorist financing risk assessment tool, with its Financial Action Task Force (FATF) score rising to 4.96 from 5.77, driving the overall score to 5.43 from 5.74, Wam says.

REMEMBER- The UAE was marked off the Financial Action Task Force (FATF)’s ‘graylist’ in February, following years of doubling down on anti-money laundering efforts. The government said at the time it would roll out a national anti-money laundering and counter-terrorism financing strategy for 2024-2027 in the coming months.

HAPPENING THIS WEEK-

#1- The Dubai World Trade Centre will host the Water, Energy and Environment Technology Exhibition 2024 from 1-3 October, organized by Dubai Electricity and Water Authority. The event will focus on advancements in cybersecurity, digital transformation, and sustainability, showcasing the latest technologies and solutions to enhance digital and environmental security.

#2- The Dubai World Trade Centre will host the World Green Economy Summit from 2-3 October 2024, organized by the Dubai Supreme Council of Energy, Dubai Electricity and Water Authority, and the World Green Economy Organization. The event will focus on green finance and sustainable development, highlighting global efforts to increase climate resilience and bolster international cooperation.

#3- The Sport Industry Forum kicks off on 2 October at NYU Abu Dhabi, according to a press release (pdf). The two-day event will gather over 300 leaders from the global and regional sports sectors to discuss the future of sports in the UAE.

PUBLIC SERVICE ANNOUNCEMENTS-

The Federal Tax Authority extended the deadline for corporate tax payments for taxpayers with a tax period ending on or before 29 February, it said in a circular (pdf). Taxpayers now have until 31 December to complete obligations.

THE BIG STORY ABROAD-

It’s another morning with escalations in the region dominating headlines: Israel attacked Yemen’s Houthis yesterday, launching a wave of airstrikes on Ras Issa and the port city of Hodeida that killed four and wounded an additional 29 according to the Houthi-run health ministry. Commenting on Israel’s ongoing attacks on its allies, Iranian President Masoud Pezeshkian said that Israel should not be allowed to attack countries in the Iran-linked “axis of resistance” without consequence, saying that “a decisive reaction is necessary” and condemning Israel’s targeting of what he called “civilian infrastructure” in Hodeida.

Meanwhile, Israel’s brutal assault on Lebanon continued, with at least 105 people killed in Israeli strikes over the course of the day, according to the Lebanese Health Ministry. Hezbollah supporters and allies continued to mourn the loss of the group’s leader Hassan Nasrallah, who was killed on Friday in an Israeli airstrike on the Iran-backed militant group’s underground headquarters in Beirut, while Israeli military officials vowed to “keep hitting Hezbollah hard.”

The strikes have led to what Lebanese Social Affairs Minister Hector Hajjar called a “humanitarian catastrophe” yesterday, underlining the difficulty the Lebanese caretaker government is having addressing the needs of the nearly 1 mn people that have been displaced since the conflict’s escalation.

AND IN BUSINESS NEWS- Former Japanese Defense Minister Shigeru Ishiba’s election as head of the country’s ruling Liberal Democratic Party has sent jitters through Japan’s stock market, as insiders express concern about his support for heavier corporate and investment income taxation.

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