Good morning, lovely people. It’s finally the end of a long, busy week on many fronts. The dominant theme of today’s issue is M&A, with e& (finally) completing its acquisition of a stake in PPF Telecom Group, and Shamal Holding snapping up a majority stake in The Espresso Lab. Plus: We have more real estate figures for 3Q 2024, news that Abu Dhabi is getting a copper trading hub, and a fresh batch of earnings.

WEATHER- It’s more of the same across the UAE today, with most areas seeing clouds with a chance of rain in western and eastern regions. Dubai will be mostly sunny with the mercury hitting 36°C, before cooling to an overnight low of 28°C. Over in Abu Dhabi, the mercury peaks at 32°C before cooling to 30°C.

ADNH Catering’s order book was 15x oversubscribed and was fully covered before the end of the first day of trading on the back of strong interest from foreign investors and local retail investors, the company’s CEO Clive Cowley told CNBC Arabia (watch, runtime: 8:56). Cowley’s comments came following ADNH Catering’s tepid debut on the ADX, which saw shares flat on the first day of trading.

REFRESHER- ADNH Catering raised AED 864 mn after taking a 40% stake to the market and pricing it at the upper end of the AED 0.91-0.96 range on which it had guided.

HAPPENING TODAY-

#1- The International Renewable Energy Agency’s (IRENA) council meeting is on its second and final day in Abu Dhabi. The meeting will see the agency discuss energy transition plans, reviewing their program and budget, and publishing their annual report of the director-general.

#2- It’s day four of the International Monetary Fund and World Bank Group Annual Meetings: The world’s finance ministers, central bank governors, and other big names in finance and policy — including representatives from the UAE — are in Washington for the International Monetary Fund and World Bank Group Annual Meetings. The meetings wrap up on Saturday. Check out the full meeting schedule on the event’s official website.

ICYMI- Our Planet Finance from earlier this week laid out the big themes to look out for and the global challenges underpinning the conversation.

WATCH THIS SPACE-

#1- Masdar vies for Saudi solar projects: Masdar is among the shortlisted bidders chosen by the Saudi Power Procurement Company (SPPC) for solar projects as part of its national renewables program, aiming to attract over SAR 8 bn (c. USD 2.1 bn) in investments, according to a SPPC statement.

Masdar is shortlisted for three projects:

  • The 2 GW Al-Sadawi Project, as part of a consortium with state-owned Korea Electric Power Corporation and China’s GD Power Development Co;
  • the 400 MW Al Henakiyah2 Project, as part of a consortium with Korea Electric Power Corporation and Saudi conglomerate Nesma Company ;
  • the 300 MW Rabigh2 Project, as part of a consortium with Korea Electric Power Corporation and Nesma Company.

The details: The consortia will execute the projects under a build, own, and operate model, allowing them to retain 100% ownership, with each project involving a 25-year power purchase agreement with SPPC.

#2- Biometric payments coming to gov’t centers: Dubai’s Department of Finance struck agreements with eight banks, fintechs, and Digital Dubai to bring biometric payments to the emirate, alongside “smart installment plans” for government fees, according to the Dubai Media Office. The pilot phase of the biometric payments system will see it rolled out across government service centers for the payment of government service fees, while smart installment services have already started with two installment service companies tapped so far.

Who’s involved? The eight agreements were inked with Digital Dubai, buy now pay later firm Tabby, payments firm Tamara, and local banks including Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, Dubai Islamic Bank, Emirates Islamic Bank, Emirates NBD, and our friends at Mashreq.

#3- More development finance from the UAE? The UAE signed two agreements with the International Monetary Fund (IMF) to contribute to the Poverty Reduction and Growth Trust (PRGT) and the Resilience and Sustainability Trust Fund (RSTF), on the sidelines of the annual meetings of the World Bank Group and the IMF, according to a ministry X post. The size of the commitment was not disclosed, and it is unclear whether this commitment will be in addition to the USD 200 mn each the UAE pledged to the RSTF and PRGT in 2023.

About the funds: The PRGT provides zero-interest financing to low-income countries, while the RSTF is geared towards low- and middle-income countries for the purpose of building resilience against external shocks.

#4- The government has earmarked over 2k products for local manufacturing, sparking AED 143 bn in interest as part of its initiative to localize production and develop the UAE’s supply chains and hit its industrial target of AED 300 bn by 2031, Omar Suwaina Al Suwaidi, undersecretary of the Industry Ministry, told Asharq Business (watch, runtime, 4:45). The government has allocated AED 11 bn to fund local production under the Make it in the Emirates initiative, Al Suwaidi said, noting that investments in the local industry hit AED 55 bn in 2023.

DATA POINTS-

#1- The UAE accounts for 2.2% of global maritime transport in 2024 with a fleet size of 1.4k ships and tankers, according to a United Nations Trade and Development Organization report (pdf). The GCC country was ranked 16th in the world in terms of fleet commercial value, accounting for 1.7% of the total global value. It also came in 12th place globally in terms of fleet ownership by capacity in 2024 with a total of 51.3 mn tons.

#2– The Dubai aviation sector is projected to contribute AED 196 bn (c. USD 53 bn) worth of gross value to the economy, equating to 32% of the emirate’s GDP, by 2030, an increase from AED 137 bn reported in 2023, according to a report (pdf) from Emirates Group, Dubai Airports, and research firm Oxford Economics.The core impact of the sector is expected to grow to AED 132 bn, accounting for 22% of GDP, while supporting approximately 386k jobs. Overall, the total number of jobs in the aviation sector is forecasted to rise to 816k representing one-quarter of all jobs in Dubai by 2030.

HAPPENING NEXT WEEK-

The Central Bank of the UAE (CBUAE) will offer up to AED 11 bn in four M-Bills at an auction next Monday, 28 October, according to a statement (pdf). The bills — three of which are tap issuances — will be released on 30 October, with the AED 3 bn M-Bill having a tenor of 28 days, the AED 2 bn bill having a tenor of 42 days, a separate AED 2 bn issuance with 126 days, and a final AED 4 bn issuance with a tenor of 238 days.

Decoding central bank speak: M-bills are short-term securities issued in AED by the CBUAE with no interest. The bonds typically have maturity dates of one to 12 months and are not retrievable through any other listing. A tap issuance gives the CBUAE flexibility to adjust money supply by continuing to sell bills beyond the initial auction.

THE BIG STORY ABROAD-

Coverage in the foreign press is still seesawing between the US presidential race, the Brics summit — which wrapped yesterday — and hopes for a ceasefire in Gaza.

On the Brics front, most are taking note of Russian President Vladimir Putin’s attempt to show resilience against the West more than two years into its invasion of Ukraine and the ensuing Western sanctions against it. Putin also warned of an escalating Middle East war and pushed for a two-state solution and ceasefire in Gaza. (BBC | Reuters | AP)

The country is pushing for a depository and clearing system for Brics countries that can deepen financial cooperation outside of the West, though it’s unclear how interested Brics countries are in joining such a system, Bloomberg reports.

Foreign Affairs Minister Sheikh Abdullah Bin Zayed Al Nahyan was at the summit — a first for the UAE since joining Brics — and highlighted the need for collective action on global challenges and the importance of cooperation with “friends of Brics,” as well as de-escalation in Lebanon and a ceasefire in Gaza, during a speech.

Another round of ceasefire talks in the works? Israel’s Mossad chief is set to meet with officials from the US and Qatar in the coming days in Qatar, US Secretary of State Antony Blinken said as he touched down in London after a trip to the Middle East. Blinken is set to meet with foreign ministers from Jordan, Lebanon and the UAE today, Bloomberg reports.

The caveat: It’s not clear if Hamas is sold on yet another round of ceasefire negotiations, after several fell through earlier this year with both Israel and Hamas accusing each other of difficult terms and a lack of seriousness, the New York Times reports.

IN MORE US ELECTIONS NEWS- Donald Trump has gained a marginal lead over Kamala Harris in two polls by the Financial Times and the Wall Street Journal in more signs that the race is tight as ever. Meanwhile, Harris is holding a big rally in Georgia with former president Barack Obama and other celebrities, while Trump rallies in Arizona. (CNN | The Guardian | WaPo)

BUSINESS HEADLINES GETTING ATTENTION-

  • Morgan Stanley CEO Ted Pick will be its chair after current chair James Gorman leaves his post at the end of the year. (Reuters)
  • Tesla’s shares closed up 22% yesterday, adding USD 150 bn to its market value in a single day, following strong earnings and a positive sales forecast. (The Guardian)
  • The US is still looking to edge China in the minerals supply chain race with plans for a massive new mine in Nevada and extended tax breaks for some miners. (FT)

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