Good morning, wonderful people. It’s another busy day in the news, with the cabinet approving the largest ever budget for 2025, more updates from the latest in a diplomacy-heavy week, and news that real estate mogul Nick Candy has set up a JV with Modon Holding.

It’s also a busy day from a macro perspective, with a new report from Global SWF ranking Abu Dhabi as the richest city in the world, a new banking sentiment report from PwC suggesting online perception of banks in the UAE declined last year, and a startup investment report showing UAE leading the region in terms of funding rounds.

☁️WEATHER- The Eastern parts of the country will continue to see clouds with a chance of rain today and through to Friday. In Dubai, temperatures will hit 37°C before cooling to 29° overnight — the first time we’ve broken the 30°C barrier for a while now — while Abu Dhabi will see the mercury hit 35° before cooling to 29°.

JUST IN- Abu Dhabi sovereign wealth fund Abu Dhabi Investment Authority has written off its 9.9% stake in the UK’s largest water and sewage company Thames Water, the Financial Times reports, citing documents it has seen. Adia said it had written down the GBP 263 mn investment due to the “challenging regulatory environment and operational performance.” The FT says this was done at the end of last year, according to Adia’s filings in June.

Adia has also written down a GBP 31mn loan awarded to one of the holding companies that owns Thames, the FT wrote.

Background: Thames water has been in hot water for a while now, with shareholders saying the company is “uninvestable” under the current regulatory regime, following unresolved issues between the UK’s Water Services Regulation Authority (Ofwat) and the shareholders over price changes.

AND- Cerebras’ IPO on ice for now? Abu Dhabi-backed Cerebras — a rival to Nvidia — is likely postponing its IPO due to delays with a US national security review that is looking into state-owned tech firm G42’s minority stake in the company, Reuters reports, citing people familiar with the matter. The investment is still expected to receive the greenlight, sources said.

REMEMBER- Cerebras Systems is reportedly looking to raise between USD 750 mn to USD 1 bn from its IPO, potentially valuing the company at USD 7-8 bn. G42 has already been subject to some reviews from US security regulators due to Microsoft’s USD 1.5 bn investment in the company that looked into any possible links with China amid heightened tensions between the US and China. The company has since reportedly divested all of its Chinese investments.

WATCH THIS SPACE-

#1- HSBC Middle East expects to see many tech companies in the GCC region go public over the coming 18 months, especially those focusing on education, healthcare, and logistics, co-head of Investment Banking for Mena and Turkey at the bank, Samer Deghaili, told Zawya. The UAE, Saudi Arabia, and Oman, in particular, are expected to raise a lot of capital via the stock markets in the coming months, experts surveyed by the newswire said.

The rationale: Tech companies are eyeing IPOs to leverage debt levels, fund marketing campaigns, and expand into new regions, CIO at UAE brokerage firm Century Financial, Vijay Valecha, said.

Remember- The ADX pipeline is heating up:

  • Abu Dhabi National Hotels’ catering unit ADNH Catering is looking to raise up to AED 864 mn in its IPO, the book building process for which kicked off this week;
  • IT services firm Alpha Data is reportedly planning to go public as soon as this year, where it could raise around USD 200 mn;
  • Supermarket chain LuLu Group is planning to list its shares on the ADX and Riyadh’s Tadawul in late October or early November, potentially raising as much as USD 1.85 bn;
  • ADQ is reportedly planning an IPO for Etihad Airways next year.

The DFM pipeline is also packed:

  • Germany-based Delivery Hero is planning to list Talabat’s shares on the DFM in 4Q 2024 ;
  • Construction firm Alec is reportedly planning a potential IPO in 2H 2024;
  • Amanat Holdings is looking to list its education and healthcare units, with reports that its healthcare unit could raise some USD 200 mn as soon as this year;
  • Shisha producer Advanced Inhalation Rituals is reportedly eyeing an IPO in 2024, where it could raise USD 800 mn;
  • Hospitality group Five Holdings is reportedly planning a potential DFM IPO next year.

#2- DFSA proposes amendments to capital requirements for certain companies: The Dubai Financial Services Authority is proposing new amendments that would remove the requirement for an expenditure-based capital minimum — a minimum threshold for liquid assets held by DFSA-authorized firms — for companies without client assets and adjust the size of the threshold for others, according to a consultation paper (pdf) it published. The changes to the prudential regime also include setting capital requirements according to different financial activities, and changing the risk regime for firms acting as agents rather than asset owners or managers. The consultation is open until 10 January, 2025.

#3- Dubai Holding is mulling setting up a real estate investment trust in a bid to capitalize on the city’s real estate boom, Bloomberg reports, citing people it says are familiar with the matter. The state-run investment firm reportedly tapped Citigroup, HSBC Holdings, and Emirates NBD Capital for the potential offering, with discussions still in the early stages. The trust’s size is yet to be agreed on, but it would include community developments that were recently transferred to Dubai Holding, the sources said.

REMEMBER- Dubai’s government-backed real estate firms Nakheel and Meydan merged into one entity held by Dubai Holding in March, with Emirates Group CEO Sheikh Ahmed bin Saeed Al Maktoum taking the helm. Dubai Holding used a AED 30 bn loan to refinance the debts of the two developers.

#4- More UAE-Nvidia cooperation? National Security Advisor Tahnoon Bin Zayed Al Nahyan met with Nvidia’s CEO Jensen Huang to discuss their collaboration on advancing global climate technology and AI computing, according to an X post. The meeting comes a few weeks after Al Nahyan’s G42 and Nvidia said they are establishing a climate tech lab in Abu Dhabi.

REMEMBER- The UAE has been ramping up its AI partnerships with US tech giants: Abu Dhabi-based AI group G42 secured a USD 1.5 bn investment from Microsoft in April in a bid to have access to large-scale AI components. The UAE has already started receiving Nvidia chips as part of the partnership after the US approved their sale earlier this year.

#5- Federal export credit company Etihad Credit Ins. is gearing up to ink an MoU with Saudi EXIM Bank and Credit Oman in the coming days to support Emirati companies, the company’s CEO Raja Al Mazrouei told Asharq Business (watch, runtime: 05:48). The

move aims to streamline processes such as debt collection and settlement assessments.

The company’s credit coverage now amounts to AED 10.6 bn, extending across 110 countries and 17 non-oil sectors, including clean energy, infrastructure, information technology, and food security, Al Mazrouei said.

#6- The Financial Audit Authority is launching three new digital services — a database of firms under audit, a violations reporting platform, and a legislative platform — at the Gitex Global event next week, state news agency Wam reports.

#7- Hydrogen-powered tower coming soon? Saudi industrial group Rawabi Holding subsidiary Magnom Properties is planning to replicate its net-zero Forbes International Tower in Egypt in Saudi Arabia and the UAE with USD 5 bn in investments across the three countries, Rawabi Group CEO Othman Ibrahim told Asharq Business (watch, runtime: 2:54).

The company plans to invest more than USD 1 bn in each location, Magnom Properties CEO Maged Marie told Daily News Egypt earlier this week. If plans go ahead, Magnom intends to complete all three projects within five years, he added.

What we know about these towers: These 250-meter tall buildings include 50 floors and span an area of 100k sqm, according to Marie. The projects feature advanced technology from Schneider Electric and Germany’s H2 to power the tower by clean hydrogen transported to the building as a liquid, along with solar power. The buildings aim to be the world’s first hydrogen-powered and carbon-neutral skyscrapers.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- Flydubai suspended flights between Dubai and Beirut until 31 October on the back of the ongoing regional conflicts, Reuters reports, citing an emailed statement from the budget airline’s spokesperson. Passengers with existing bookings will be contacted for rebooking or refund options. Emirates earlier this month suspended flights to Beirut until October 15.

#2- Get rid of your oleander plants: The Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) banned the production and trading of oleander plants due to their toxic risks, Wam reports. Individuals and establishments have six months to remove them. Oleander grown for research is exempt with prior ADAFSA approval.

HAPPENING TODAY-

#1- Dubai International Chamber is now on the Turkey leg of its trade mission to Serbia and Turkey that runs until 11 October, aiming to help UAE businesses identify and capitalize on potential investments in Turkey. The program includes bilateral business meetings designed to foster cooperation, expansion, and the establishment of new trade and investment agreements between companies.

#2- The World Air Taxi Congress takes place through Thursday at the Grand Hyatt Dubai, 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.

#3- Dubai Chambers’ Center for Responsible Business is hosting the annual Dubai Chambers Sustainability Week 2024 until Friday. The activities of the week will focus on the intersection of technology and sustainability.

#4- The Global Trade and Supply Chain Summit is on its second and final day at the JW Marriott Hotel Marina. 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.

#5- The Global Rail Transport Infrastructure Exhibition and Conference kicked off yesterday and runs until tomorrow at Adnec Abu Dhabi. The event gathers leaders and specialists from the rail and transport industries from the region and beyond to discuss smart mobility, greentech, and automation.

#6- The Regional Data and Community Development Forum kicks off today and runs until tomorrow at Al Jawaher Reception and Convention Center. 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.

#7- The National Summit on Financial Crime Compliance kicks off today and runs until tomorrow in Abu Dhabi, Wam reports. Organized by the Central Bank of the UAE, the summit brings together local regulatory bodies and global law enforcement authorities to discuss frameworks for combating financial crimes.

**EDITOR’S NOTE- This story was amended on 13 October, 2024 to remove incorrect information.

SPORTS-

The UAE gets its first national baseball team: Baseball United, a professional league based in the Middle East and South Asia, created the UAE’s first national baseball team, approved by the Emirates Cricket Board, according to the company statement. The team will compete in the inaugural Arab Classic next month in Dubai, with Baseball United overseeing player selection, development, and participation in competitions.

THE BIG STORY ABROAD-

It’s a mixed bag in the foreign press this morning, as the intensification of the war in Gaza and Lebanon and Hurricane Milton in the US continue to grab headlines.

Israeli Prime Minister Benjamin Netanyahu said that Israeli airstrikes killed two successors to Hezbollah leader Hassan Nasrallah in a video on X, hours after Hezbollah seemed to drop demands for a ceasefire in Gaza as part of a ceasefire agreement for Lebanon. Netanyahu did not name the successors, but the video suggests that Hashem Safieddin, who was widely expected to succeed Nasrallah and who was reportedly killed last week, has been eliminated. (Reuters)

Israel had expanded its ground invasion of Lebanon yesterday with a fourth division deployed in the south of the country, as it continued with intense airstrikes that killed at least 36 people over the past day. (The Guardian | BBC)

Over in the US, Hurricane Milton is now a Category 5 storm as it heads towards Florida, with President Joe Biden saying the “devastating” storm could be the worst to hit the state in more than a century.

AND- Politics continue to be in focus: The latest Reuters/Ipsos poll showed Vice President and democratic candidate Kamala Harris leading Trump with 46% of votes, as opposed to Trump’s 43%.

IN THE BUSINESS PRESS- Samsung issued a rare apology yesterday after it warned of worse-than-expected 3Q earnings, adding that its high-end chips will see a delay in sales, and chalking up the decline in performance to one-off costs and higher supply of older products from Chinese rivals that have hit demand for its chips. (CNBC | Reuters | The Verge)

AND IN A SIGN OF THE TIMES- The Nobel prize for physics went to two researchers credited for laying the foundations for modern AI, US professor John Hopfield and British-Canadian professor Geoffrey Hinton. (The Guardian)

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CIRCLE YOUR CALENDAR-

Gitex Global will take place from October 14-18 at the Dubai World Trade Centre and Dubai Harbour. The event will showcase the latest innovations in technology, including AI, cybersecurity, cloud computing, and digital transformation. Leaders from large technology firms, government representatives, emerging startups, investors, and corporate buyers will participate.

Happening alongside Gitex is Expand North Star, which takes place on 13-16 October at the Dubai Harbour. The event will also include an AI startup competition — DMCCxAGCC: Global AI Challenge – Sustainability Edition — to identify innovative AI solutions that contribute to sustainability in the GCC region.

Fintech Surge will also take place alongside Gitex, bringing together over 12k investors and 100 exhibitors, serving as a platform for fintech firms to showcase their innovations. The Future Blockchain Summit will also take place as part of the event on 13-16 October.

The IEEE/RSJ International Conference on Intelligent Robots and Systems (IROS 2024) will take place between 14-18 October at Adnec Center Abu Dhabi — its first time in the Middle East. Hosted by Khalifa University of Science and Technology, the annual robotics conference will be attended by researchers, academics, and global industry professionals.

SuperBridge Summit will be held on 15-16 October at One Za’abeel in Dubai. Organized by the Dubai World Trade Center and Gitex, the event will gather business leaders, investors, and policymakers from Asia, Latin America, and the Middle East to discuss AI, innovation, and manufacturing in emerging markets.

The Sharjah International Conference on AI & Linguistics will take place on 17-18 October at the American University of Sharjah. The event will discuss and promote the integration of AI in linguistics.

The World Biohack Summit 2024 will take place on 18-19 October at the JW Marriott Hotel Marina in Dubai. The event aims to highlight innovations shaping the future of human potential, focusing on longevity, peak performance, age reversal, recovery, and mental health.

The Lease Conference Dubai 2024 will take place on 13-14 November at the Jumeirah Creekside Hotel. The event will bring together key players in the leasing industry — including lessors, suppliers, investors and bankers, and regulators — across the Middle East and Africa to discuss developments in the sector.

The 21st edition of the international property sales (IPS) Congress will take place on 14-16 April, 2025 at the Dubai World Trade Center. The event aims to facilitate networking in the real estate sector and features knowledge-sharing sessions focused on the latest trends and technologies in construction and property design.

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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