Good morning, friends. The newsflow slowed only slightly yesterday, but we still got major AI and M&A updates — with OpenAI securing backing from MGX in its latest funding round and UK broker Marex acquiring ADGM-based Aarna Capital. We also have fresh hospitality targets, news of a new solar plant in Abu Dhabi, and data on the ins. sector in 2023.

☀️WEATHER- It’s another hot day in Dubai, with the mercury hitting 38°C — sometimes feeling like 48°C — before cooling to an overnight low of 31°C. Over in Abu Dhabi, it’s a little cooler with a high of 34°C and a low of 31°C.

UPDATE-

Aircraft lessor Dubai Aerospace Enterprise (DAE) has reportedly reached a “full settlement” with ins. provider Axa over some of its jets that were retained in Russia since its invasion of Ukraine, Reuters reports. The lessor had previously valued its claim for 22 aircraft, as well as one engine and one piece of equipment, at USD 737.8 mn, the newswire reports, citing court filings.

Background: News of the settlement comes shortly after a “mega trial” between ins. providers and aircraft lessors kicked off in London, which aims to settle between the two sides over who will pay for up to 400 aircraft — valued at USD 10 bn — left in Russia due to Western sanctions on the country.

HAPPENING TODAY-

#1- The Water, Energy and Environment Technology Exhibition 2024 is on its final day today at the Dubai World Trade Centre. Organized by the 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 World Green Economy Summit is also on its second and final day at the Dubai World Trade Center. 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.

#4- The Sport Industry Forum wraps today 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.

#5- The Mena Cool Forum wraps today at the Mövenpick Grand Al Bustan in Dubai. The forum will facilitate discussions on the selection strategies between district cooling and conventional HVAC systems. It will cover new developments, policies, project reviews, innovations, regional updates, and decarbonization efforts.

#6- The Mövenpick Grand Al Bustan in Dubai is also playing host to The Future Food Forum 2024, which wraps today. The event focuses on food, consumer behavior, and the government’s role in the food and beverage sector.

HAPPENING THIS WEEK-

The NBA returns to Abu Dhabi on 4 and 6 October at the Etihad Arena on Yas Island, marking the third game series to be held in the UAE. This year’s preseason matchup features the Boston Celtics taking on the Denver Nuggets, part of the NBA’s four international showcases this season.

WATCH THIS SPACE-

#1- Dragon Oil eyes doubling production capacity: Emirates National Oil Company (Enoc)’s subsidiary Dragon Oil plans to double its daily production to 450k bpd by 2029, up from the current 210k bpd, targeting an annual growth target of 10-13%, the company’s CEO Ali Rashid Al Jarwan told Wam on Tuesday. The company is focused on expanding its operations in Egypt, Iraq, and Turkmenistan, where it already has a presence.

How it’s going: Dragon Oil has grown its production from 70k bpd to 210k bpd over the past seven years, Al Jarwan said. The company has an annual budget of USD 1.5 bn — with USD 1 bn going for investments and USD 500 mn allocated for operational activities.

Enoc is also eyeing expansion, with the company’s CEO Saif Humaid Al Falasi revealing plans to expand its Jebel Ali Oil Refinery and its fuel station network in the UAE (watch, runtime: 03:49). Enoc is currently developing mobile fuel stations, which it claims are “significantly more cost-effective” than traditional stations, costing AED 1-2 mn each compared to AED 20-30 mn for the latter.

#2- Adnoc-backed energy storage company VTTI is planning to invest in LNG import terminals across Asia to meet the growing demand for liquefied natural gas (LNG) in the region, the company’s CEO Guy Moeyens told Bloomberg. The Rotterdam-based company has recently acquired a 50% stake in Dragon LNG, one of the UK’s three LNG import terminals, in August. Adnoc acquired a 10% stake in VTTI in 2019.

#3- Dutco mulls green fuel production: Dubai-based engineering firm Dutco is exploring the production of sustainable fuel from biodegradable waste, including aviation fuel (SAF), CEO Sami Kamel told CNBC Arabia (watch, runtime, 3:53). Giving the green light to the project, which is based out of Dubai, would depend on demand levels and production costs, Sami said.

Background:Dutco formed the Oman Sustainable Cars and Aviation Refuelling (Oscar) consortium with Oman’s energy firm OQ, Sumitomo, Lamborghini, and Airbus in June 2023 to study the production of e-gasoline and e-SAF in Oman.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- MoHRE call center down for the week: The Human Resources Ministry’s call center will be offline until the end of the week for service updates in a statement. However, the ministry remains accessible through its website, email, social media, and mobile app.

#2- Shutting down the rumor mill: Dubai’s toll gate operator Salik denied circulating rumors that it plans to raise its rates, Salik said in a DFM statement (pdf). The response follows a viral post that claimed toll fees would increase to AED 8, up from AED 4 during rush hours.

DATA POINT-

Mortgages in Abu Dhabi rose 20% y-o-y to AED 13.5 bn in terms of value in 3Q 2024, across approximately 2.6k contracts, marking the emirate’s highest quarterly volume in several years, Wam reports, citing data from digital real estate ecosystem platform Dari. Total real estate transactions hit AED 22.7 bn, with sales accounting for AED 9.2 bn across 1.7k off-plan units and 1.5k completed units.

On a 9M basis, real estate transactions in Abu Dhabi totaled AED 55.6 bn, including AED 30.5 bn from sales and AED 25.1 bn from mortgages.

OIL WATCH-

Opec+ keeps output policy unchanged, says December phaseout hinges on compliance: Opec+ has opted to stay the course on its planned oil production target, including plans to phase out supply cuts by December, putting it on course for a 180k barrels per day (bbl / d) hike by the end of the year, it said in a statement following a meeting yesterday. The oil cartel is also keeping a sharp eye on the compliance and compensatory plans of Iraq, Kazakhstan and Russia, who have been under scrutiny for producing beyond their quotas. The trio pledged 123k bbl / d of compensation cuts beginning in September and continuing into later months to make up for overproduction.

And if they didn’t? Further lack of compliance could push Saudi Arabia and other Opec+ members to boost production at a quicker rate, Reuters said. “If they fail to comply, we can envision a swifter sunsetting of the voluntary cuts,” Reuters quotes RBC Capital’s Helima Croft as saying.

The next checkpoint? The group is scheduled to reconvene on Sunday, 1 December to decide whether to hold steady or adjust according to market conditions.

THE BIG STORY ABROAD-

It’s a mixed picture on the front pages of the foreign press today, with updates on Israel’s invasion of and attacks on Lebanon, speculation over Israel’s potential methods of retaliation for Iran’s attacks earlier this week, and OpenAI’s latest funding round grabbing headlines.

#1- Israel bombed central Beirut for the second time this week, killing at least six in an attack on a medical center in the heart of the city, Reuters reports. Israel missiles also continued to target southern suburbs of the city. Israel’s ground offensive in Lebanon has also killed eight Israeli soldiers in the first day after its launch, the Washington Post reports.

The US and other G7 partners are working on limiting Israel’s response to Iran’s attacks earlier this week and deterring it from attacking the latter’s nuclear facilities, which some officials have called for, the Financial Times reports. US President Joe Biden said he would not support such an attack, signaling plans to sit down with Israeli Prime Minister Benjamin Netanyahu to advise on Israel’s response, and to escalate sanctions on Iran, Bloomberg reports separately.

The escalation of attacks across the region has forced airlines to take longer paths over Egyptian and Saudi airspace to avoid shuttered airspace, Bloomberg said, citing flight tracking data on FlightRadar24.

#2- OpenAI’s secured USD 6.6 bn in fresh funding, giving the company a whopping valuation of USD 157 bn, with backing from Microsoft, Nvidia, and Josh Kushner’s VC firm Thrive Capital, which led the round, Bloomberg reports. Abu Dhabi tech investor MGX also participated in the funding round. Notably absent from the funding round is Apple, who was said to potentially invest in the firm earlier.

The funding will be used to “double down” on AI research and increase computing capacity, the statement said. The startup also reportedly asked its investors for exclusive arrangements to stop them from investing in other rival AI startups, the Financial Times reports, citing multiple sources. We have more on this story in the news well, below.

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CIRCLE YOUR CALENDAR-

Dubai International Chamber is deploying a trade mission to Serbia and Turkey between 6 to 11 October, aiming to help UAE businesses identify and capitalize on potential investments in Serbia and Turkey.The program includes bilateral business meetings designed to foster cooperation, expansion, and the establishment of new trade and investment agreements between companies from the two countries.

The Dubai World Trade Centre will host the Forex Expo on 7-8 October. Attendees can engage with brokers, investors, and financial institutions to explore the latest trends in foreign exchange markets.

AgraME will take place on 7-8 October at the Dubai World Trade Center. The event will bring together professionals from the Middle Eastern agricultural ecosystem to explore the latest trends in crop farming, horticulture, animal farming, aquaculture, and agri-tech.

The Grand Hyatt Dubai will host The World Air Taxi Congress on 7-10 October, showcasing the latest in aerial technologies, including eVTOLs, next-generation STOLs, eCTOLs, delivery and cargo drones, and the role of autonomy and AI in aviation.

JW Marriott Hotel Marina will host the Global Trade and Supply Chain Summit on 8-9 October. The event aims to address the evolving landscape of international trade and supply chains, focusing on overcoming challenges and leveraging solutions offered by new technologies.

Adnec Abu Dhabi will host the Global Rail Transport Infrastructure Exhibition and Conference on 8-10 October. The event gathers leaders and specialists from the rail and transport industries from the region and beyond to discuss smart mobility, greentech, and automation.

Al Jawaher Reception and Convention Centre will host The Regional Data and Community Development Forum on 9-10 October. Organized by the Department of Statistics and Community Development, the forum aims to bring together global experts and decision-makers to discuss the role of data in promoting sustainable social development.

Dubai Harbour will host the DMCCxAGCC: Global AI Challenge – Sustainability Edition on 13-16 October, the largest AI startup competition aiming to identify innovative AI solutions that contribute to sustainability in the GCC region.

Dubai World Trade Centre and Dubai Harbour will host Gitex Global on 14-18 October. The event will showcase the latest innovations in technology, including AI cybersecurity, cloud computing, and digital transformation.

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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