Good morning, friends. We have a meaty issue for you as we wrap yet another busy week both on the local and global front, as Adipec draws to a close and the aftermath of Donald Trump’s reelection takes shape.

PLUS- The Central Bank of the UAE cut interest rates by 25 bps in line with the Fed’s move to cut rates in its meeting yesterday, according to a statement (pdf). The base rate applicable to the overnight deposit facility is now at 4.65%. We have more on the Fed’s decision in Planet Finance, below.

WEATHER- It’s another sunny day in Dubai, with a high of 33°C and a low of 26°C, according to our favorite weather app. Meanwhile, a sunny Abu Dhabi will see a high of 29°C and a low of 26°C today.

Remember Sidara’s most recent target for an acquisition? Its shares just took a nosedive after commissioning a review of its project performance, Bloomberg reports. British engineering and oil services giant Wood Group — which was targeted for an acquisition by Dubai infrastructure group Sidara over the summer before backing out earlier in August — saw its shares plummet 49% yesterday, marking the steepest single-day drop in its history. CEO Ken Gilmartin pointed to “delayed awards” in its chemicals sector and persistent weakness in minerals and life sciences as key contributors to the underperformance.

ICYMI- Sidara cited geopolitical risks and financial market volatility as reasons for its change of plans when backing out of the acquisition. Sidara submitted four acquisition bids for Wood Group, which were all rejected for “significantly undervaluing” the company.

WATCH THIS SPACE-

#1- Covestro’s board recommends Adnoc takeover: Covestro’s management expressed support for Abu Dhabi National Oil Company’s (Adnoc) EUR 14.7 bn (c. USD 16.3 bn) takeover offer, lauding it as “an attractive opportunity to realize significant value,” according to a statement from the German chemicals manufacturer.

REFRESHER- The acceptance period for Adnoc’s voluntary public takeover offer wraps up on 27 November. Adnoc has been in ongoing negotiations for the takeover, which is set to be the biggest acquisition from a Middle Eastern buyer in Europe in 16 years, for more than a year. Covestro’s management signaled it will likely recommend Adnoc’s takeover bid to the company’s shareholders last month.

#2- Response Plus to tap into pre-hospital emergency services: ADX-listed Response Plus Holding plans to revamp its expansion strategy over the next three years, aiming for new acquisitions and market expansion, its chairman Omran Al Khoori told Wam. The company plans to scale up its pre-hospital emergency services — covering emergency consultations, training, and telehealth — with a strong focus on the energy sector and recent expansion into the UK and Scandinavia.

REMEMBER- Response Plus recently expanded to the UK, with its acquisition of UK-based Prometheus Medical for unified defense and energy health solutions last April.

The company also has ambitious plans for Saudi Arabia, targeting to double revenue there this year through new projects and events. Response Plus aims to increase total revenue by 25% y-o-y in 2024.

#3- Americana Restaurants’ TGI Fridays will continue to operate in the GCC region despite the group filing for the restaurant’s bankruptcy in the US last week, according to a press release. Americana Restaurants operates in the region under a franchise agreement with TGI Fridays Franchisor, making the GCC entities separate from the TGI Fridays Inc. involved in the bankruptcy.

#4- Talabat’s IPO could value the company at between USD 9-12 bn, driven by the strong performance in certain areas of the business, according to Bloomberg Intelligence, which has revised its estimate from a previous USD 6 bn.

German last-mile delivery firm Delivery Hero downgraded its income outlook for the year, expecting its EBITDA to come “at the lower end” of the EUR 725-775 mn guidance it gave previously, according to its financials. While the revised outlook signals challenges in its “strategic overhaul” within the food delivery market, the company posted EUR 3.2 bn in total revenues in 3Q 2024, in line with analyst expectations.

REMEMBER- Delivery Hero plans to list Talabat on DFM in 4Q 2024. The transaction — potentially worth USD 1 bn — is waiting for approval from the Securities and Commodities Authority. Delivery Hero appointed Emirates NBD, Morgan Stanley, and JP Morgan to work on the upcoming listing.

#5- Swiss art organization Art Basel is reportedly in talks with the UAE’s Tourism Development and Investment Company to take over the art fair Abu Dhabi Art, unnamed sources told Artnews. The transaction could see Art Basel receive USD 20 mn in exchange for operating the Abu Dhabi fair. The fair’s parent company MCH Group has recently been through financial struggles, experiencing a rise in the selling, general, and administrative costs as a percentage of sales.

#6- NMDC Group is vying for AED 76 bn in new tenders, alongside current contracts valued at around AED 70 bn by the end of 3Q 2024, it said in an ADX disclosure (pdf). The energy sector accounts for 60% of NMDC’s ongoing contracts and contributes half of the group’s total revenue.

#7- Dubai’s Deyaar Developments plans to launch an AED 1.5 bn project in Dubai Production City with over 1k units scheduled for completion in two years, the company’s CEO Saeed Al Qatami told the National. Deyaar also plans to launch additional projects in Dubai next year, supported by AED 1.8 bn in liquidity to fund new developments and AED 400 mn in unused facilities, Al Qatami told CNBC Arabia (watch, runtime: 07:33).

The company forecasts a 15-20% y-o-y revenue increase in 2025, driven by strong demand in the local real estate sector from the US, Europe, India, and the Far East. Revenue is expected to grow by 20-25% this year, with the real estate development sector comprising 70% of Deyaar’s total revenues.

DATA POINTS-

#1- Dubai’s real estate market is set to exceed AED 500 bn in annual sales for the first time, with total sales reaching AED 435.6 bn from 150.7k transactions as of October 2024, according to an estimate from real estate brokerage Fam Properties (pdf). October alone saw AED 61.1 bn in sales, marking a 798% y-o-y increase.

#2- Gulf Commodity Exchange experienced a sizable growth in oil trading volumes in 2024 with an 8% y-o-y increase in physical delivery to 217 mn barrels, according to a press release. Trading volume for the front month rose by 20% y-o-y to 965 mn, while the total exchange volume increased by 29.3% q-o-q with 116.9k contracts traded.

#3- The UAE was ranked as the top foreign investor in the Arab region’s construction projects over the past 20 years with a value of USD 139 bn in investments, according to the Arab Investment and Export Corporation infrastructure report (pdf). This accounts for a third of the total value of foreign construction projects of USD 430 bn.

Dubai-based Majid Al-Futtaim Group came on top of construction sector investors in the Arab World with USD 23 bn in investments over the past two decades, representing 5.5% of the total foreign direct investments in the construction sector across Arab countries.

Emaar Properties was named as the largest job provider with its projects creating around 16.8k jobs, representing 2.7% of a total of 621.2k jobs.

Dubai topped the Middle East and Africa in Brand Finance’s Global Cities Index 2024, ranking first in all regional key performance indicators for the second consecutive year, according to the Dubai Media Office. Globally, Dubai climbed to fifth place among 100 cities, achieving a score of 86 out of 100.

PSA-

Sheikh Zayed Road will be temporarily closed on Sunday 10 and 24 November, for two sports events as part of the annual Dubai Fitness Challenge this month, The National reports. On 10 November, the 14-lane road will be out of service during the cycling event Dubai Ride until 8:15am. On 24 November, the road will be closing during Dubai Run. Dubai’s Roads and Transport Authority (RTA) has not confirmed the closure times yet.

HAPPENING TODAY-

#1-Design Next exhibition is underway at the Dubai Design District as part of Dubai Design Week and wraps up Sunday, 10 November. The event showcases sustainable design solutions and features discussions by industry leaders.

#2- Dubai is hosting the first Arab Classic Baseball Tournament at Sevens Stadium, running until 10 November according to a statement. The event features eight national teams from the UAE, Saudi Arabia, Pakistan, Sri Lanka, and India. Organized by Baseball United in collaboration with the Dubai Sports Council, the tournament kicked off yesterday with an opening match between Afghanistan and India.

HAPPENING NEXT WEEK-

#1- The Central Bank of the UAE (CBUAE) will offer up to AED 33.5 bn in four M-Bills at an auction next Monday, 11 November, according to a statement (pdf). The bills — one of which is a tap issuance — will be released on 13 November, with the AED 3.5 bn M-Bill having a tenor of 28 days, the AED 5.5 bn bill having a tenor of 84 days, the AED 8 bn issuance having 168 days, and a final AED 16.5 bn issuance with a tenor of 336 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.

#2- The UAE’s pavilion at Cop29 in Azerbaijan, which runs from 12-21 November, will feature over 60 dialogue sessions, gathering climate experts, government officials, private sector leaders, and academics to discuss critical issues such as climate finance for the Global South and to review progress on the UAE’s global partnerships, Wam reports.

THE BIG STORY ABROAD-

The US Federal Reserve’s decision to cut interest rates by 25 bps in the first meeting after Donald Trump’s reelection as president is dominating international front pages everywhere. This is the second rate cut since its bumper 50 bps rate cut in September. (Reuters | Bloomberg | CNBC | Financial Times)

Fed chair Jerome Powell also struck a defiant tone during a press conference, saying he will not be stepping down even if the incoming president asks him to. He also signaled future plans for further rate cuts, saying that policy remains restrictive. We have more on the decision — and the Fed’s challenge ahead when the new administration takes office — in today’s Planet Finance, below.

With all eyes still on Trump, the foreign press is also taking note of his choice of chief of staff — Susie Wiles, one of his two campaign managers, as he gets started on a flurry of staffing announcements before his return to office on 20 January. Bloomberg also profiles other potential candidates for the rest of his team, including Wall Street and business execs as well as familiar faces from his previous term. (Reuters | The Guardian | BBC | Politico)

ELECTIONS UPDATE- After securing the majority for the Senate, the Republicans are now expected to secure a majority in the House of Representatives, though it will be days until all votes are counted and the House race is called. You can track results of voting as they come here.

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CIRCLE YOUR CALENDAR-

The Dubai Diamond Conference will take place on 11 November at Jafza One Convention Centre. Organized by DMCC, the forum will gather global diamond industry experts to discuss the latest developments in the industry, including tech innovations and market trends.

Dubai will host the Meta Cinema Forum on 11-12 November at Le Méridien Dubai Hotel & Conference Center. The cinema convention will bring together industry leaders to explore the future of cinema in emerging markets across the Middle East, Africa, and Asia.

Dubai Arbitration Week will take place on 11-15 November at the Waldorf Astoria in the Dubai International Financial Center. The event features a series of panel discussions, workshops, and presentations focused on the latest developments and challenges in international commercial arbitration.

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 across the Middle East and Africa.

Dubai Future Solutions–Prototypes for Humanity will take place on 19-21 November at Emirates Towers in Dubai. The event will facilitate collaboration among graduates and professors from over 800 universities, focusing on innovation in sectors such as agriculture, healthcare, energy, civil society, mobility, water, and the environment.

Gladiator Summit will take place on 16-17 November at the Dubai World Trade Center. The event will feature presentations from leading entrepreneurs, educational sessions on business strategies, and networking prospects for participants.

Forbes Middle East Medical Tourism & Wellness Summit will take place on 23-24 Novemberat Jumeirah Beach Hotel in Dubai. The summit will gather leading health and wellness professionals, innovators, and industry leaders to discuss the Middle East’s rise as a hub for healthcare and wellness solutions.

Open Source AI Summit will take place on 26-27 November at The St. Regis Saadiyat Island Resort in Abu Dhabi. The event will feature discussions on open-source artificial intelligence, focusing on opportunities, challenges, ethical considerations, governance, and international cooperation.

The Khalifa Fund Entrepreneurship Competition will take place on 5 December during Abu Dhabi Business Week at the Adnec Center in Abu Dhabi. The competition focuses on three sectors: Biolife and healthcare, robotics and AI, and agritech and aquatech. Entrepreneurs and startups interested in participating must submit their applications by November 20, 2024.

Apex Invest Abu Dhabi will take place on 18-19 November at The Hilton in Abu Dhabi. The event will feature senior representatives from major financial institutions, including Mubadala, the Abu Dhabi Investment Council, the Abu Dhabi Investment Authority, ADQ, Saudi Arabia’s Public Investment Fund, and the Oman Investment Authority, along with a number of family offices. The agenda will focus on investment strategies in asset management, with a two-to-one investor-to-manager ratio to facilitate networking.

Dubai Future Forum is scheduled from 19-20 November at the Museum of the Future. Hosted by the Dubai Future Foundation, the event will bring together 150 global speakers, including government officials, CEOs, academics, and futurists, and spotlight 100 pilot projects to advance future-focused strategies to equip the next generation.

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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