Good morning, friends. We’re capping off another busy fall week with two debt issuances — one from Dubai Islamic Bank and the other from Sharjah — and more real estate investments in Dubai, as well as fresh real estate regulations in ADGM.

WEATHER- The mercury will peak at 37°C in Dubai before cooling to an overnight low of 29°C. Meanwhile, in Abu Dhabi, temperatures hit 33°C before cooling to 28°C overnight.

WATCH THIS SPACE-

#1- Abu Dhabi alternative asset manager Lunate Capital is mulling the acquisition of a stake in US-based private credit firm HPS Investment Partners, which is eyeing either an IPO or a sale, Bloomberg reports, citing people familiar with the matter. Lunate could invest USD 1 bn or more in the stake, though talks are still at early stages and many options are on the table.

Lunate is not the only one eyeing HPS: Private equity giant CVC Partners has been in talks for a potential merger with HPS, while BlackRock was also reportedly interested in an acquisition.

Background: Lunate has reportedly been looking to tap international and regional banks for a USD 5 bn subscription credit facility to back potential acquisitions, as it looks to boost its USD 105 bn assets under management. The asset manager was said to be eyeing a bigger stake in Adnoc’s gas pipeline unit, in which it bought a 40% stake from BlackRock in April. Lunate also acquired a minority stake in US healthcare firm Linden Capital Partners in May and secured a 24.5% stake in Dubai’s largest office tower ICD Brookfield Place in April.

#2- Exporters will no longer be required to provide exit certificates from freezones or similar facilities to reclaim Value Added Tax (VAT), following new amendments to VAT regulations (pdf) by the Finance Ministry, set to take effect 15 November. Under the updated rules, exporters will only need to submit standard documentation to verify goods have left the UAE, including either:

  • Official evidence, such as an export certificate issued by customs;
  • Commercial evidence, such as documents from transport companies (i.e. air, sea, or land waybills/manifests);
  • A shipping certificate provided by transportation companies when commercial evidence isn’t available.

Other changes worth noting: The export of services like restaurant, hotel, and catering services; cultural, artistic, sporting educational services; real estate services; and transportation services will be subject to VAT. Meanwhile, businesses can now recover VAT input expenses for health ins. provided to employees’ spouses and up to three children; and government transfer of real estate assets will be exempt from VAT.

REFRESHER- The cabinet approved the amendments earlier this week, with one of the major changes being an exemption of investments through fund managers and the transfer and conversion of crypto from the 5% VAT.

HAPPENING TODAY-

#1- Dubai International Chamber is now on the Turkey leg of its trade mission to Serbia and Turkey that runs until today, aiming to help UAE businesses identify 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- Dubai Chambers’ Center for Responsible Business is hosting the annual Dubai Chambers Sustainability Week 2024 until today. The activities of the week will focus on the intersection of technology and sustainability.

#3- The Global Rail Transport Infrastructure Exhibition and Conference is on its final day 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.

DATA POINTS-

#1- Remittance transfers in the UAE declined as of March 2024 compared to December 2022, with a 10% decrease in sending and a 6% drop in receiving, according to the Visa Money Travels report for 2024 (pdf). Despite the decline, 73% of UAE respondents said they plan to send more or the same amount of money abroad in 2024.

Humanitarian needs were a top priority for sending money abroad, with 56% of UAE respondents emphasizing the importance of supporting individuals in crisis. Some 47% of respondents said that they send remittances for regular reasons, while 41% said they send them for unexpected reasons. Meanwhile, 30% of UAE respondents said they receive remittances for unexpected reasons, 29% said they receive them for investments or saving them in their bank accounts, and 27% said they receive them for special occasions.

Almost an equal split between digital and physical sending of remittances: Some 58% of local respondents reported sending digital remittances from physical locations, while 57% used digital apps. For receiving funds, on the other hand, 63% preferred digital apps. For both sending and receiving remittances, 56% of UAE respondents said they expect to use digital channels for transferring remittances more frequently in the future.

#2- The Securities and Commodities Authority (SCA) processed 12k requests totaling over AED 115 mn for unclaimed dividends and dormant balances dating back to before March 2015, Wam reports. The SCA launched this service last February and tapped First Abu Dhabi Bank to handle dividend payments. Detailed instructions on the claims process are available on the SCA’s website.

THE BIG STORY ABROAD-

The foreign press is still focused on Israel’s ongoing campaign in Gaza and Lebanon and Israel’s potential retaliation on Iran for its attacks on Israel last week.

An imminent attack on Iran? Israel’s security cabinet met last night to discuss the retaliation against Iran, with Science Minister Gila Gamliel saying it would “make the right decision” and that it may act imminently, Bloomberg reports.

Gulf states are concerned about the potential escalation that can ensue if Israel attacks on Iran’s oil facilities, including impacts on their own oil facilities, and are lobbying the US to deter Israel from doing so, Reuters reports, citing three sources. GCC countries are not allowing Israel to fly over their airspace, the sources said. Iran had earlier warned Gulf states not to allow their airspace or military bases on their soil to be used in an attack against it, Reuters reported earlier this week.

Israel hit central Beirut once again last night, killing at least 22 people and injuring dozens through airstrikes on two residential buildings. Separate strikes on a school in central Gaza sheltering displaced people also killed at least 28. (AP | The Guardian)

Market reax: Oil prices rose 4% yesterday as concerns around escalating tensions in the Middle East and the fallout from Hurricane Milton in the US, with Brent Crude settling at USD 79.40 a barrel.

IN THE BUSINESS PRESS- Everyone is picking up news of Stellantis CEO Carlos Tavares is retiring in 2026 as part of a wider shake-up in senior management while the company looks to boost its earnings in the US. (Reuters | CNBC | Bloomberg)

PLUS- Elon Musk’s unveiling of Tesla’s long-promised “robo-taxi” is taking place as we hit “dispatch” on this morning’s issue, as investors wait to see the results of the company’s investments in AI. (Reuters | Bloomberg)

The latest Nobel Prize for literature went to South Korean writer Han Kang, who wrote The Vegetarian in 2016, as well as Human Acts.

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