Good morning, wonderful people. M&A is the flavor of the day today, with not one, not two, but three M&A stories worth your time, courtesy of the Abu Dhabi Investment Authority, Vertex, and Taaleem. Plus: We have two big IPO news, with Talabat’s orderbook fully covered soon after opening, and Dubai Holding mulling listings for two units next year.

WEATHER- The mercury peaks at 31°C in Dubai, before cooling to an overnight low of 24°C. Over in Abu Dhabi, temperatures peak at 28°C before cooling to 23°C overnight.

FACT CHECK- Dubai-based developer Damac Properties will not be launching a luxury airline… it’s just launching a new project dubbed “Damac Islands.” Managing Director Amira Sajwani clarified the company’s marketing stunt during a presser unveiling their new project in Al Qudra area in Dubai, which features villas inspired by global island destinations, Khaleej Times reports.

The developer had earlier teased the launch of Damac Air, a luxury airline offering flights to tropical destinations, including Maldives, Bali, Bora Bora, and Seychelles.

SPORTS-

The UAE thrashed Qatar in a 5-0 victory in the AFC Asian Qualifiers yesterday, with Fabio Lima firing four goals — landing a first-half hattrick, including a penalty, and another penalty in the second half. The UAE is now trailing Uzbekistan and Iran in the qualifiers.

WATCH THIS SPACE-

#1- World Bank raises UAE growth forecast for 2024: The World Bank upgraded its 2024 growth outlook for the UAE to 3.4%, slightly up from its projection of 3.3% last month, its Chief Economist for the Mena region Roberta Gatti told Wam. The revision comes on the back of the country’s economic diversification strategy and reduced dependence on oil. The World Bank anticipates the UAE will maintain fiscal and monetary surpluses throughout 2024, Gatti said.

REMEMBER- The World Bank’s forecasts for the wider region are:

  • 2.2% growth for MENA economies this year;
  • 1.9% growth for GCC countries in 2024, with a strong rebound of 4.2% in 2025, driven by the expansion of the non-oil sector in most GCC countries.

#2- Al Dahra to up its Egypt operations: Al Dahra Egypt — a subsidiary of Emirati agribusiness Al Dahra — is planning on investing some USD 200 mn to add between 80k-90k feddans to its land portfolio over the next five years, Al Dahra Egypt CEO Raouf Tawfik told EnterpriseAM on the sidelines of a press conference yesterday to showcase the company’s future plans. The company is also looking to invest another USD 30 mn on additional equipment, as well as to help its efforts in reclaiming 2k feddans from the land it currently owns, Tawfik added.

Al Dahra is already a significant player in Egypt, owning 67k feddans of land and being the largest private-sector wheat producer in the country. It has reclaimed 40k feddans and invested USD 250 mn to cultivate land for strategic crops, including wheat, corn, and sugar beets. Despite challenges, such as the government’s withdrawal of land in 2019, the company has helped reduce Egypt’s import bill by USD 250 mn since it began operating in the country.

#3- Damac Properties is ramping up its investments in digital infrastructure, with over 10 data centers currently under construction, the company’s Founder and Chairman Hussain Sajwani told CNBC Arabia (watch, runtime: 06:15). Damac is spending USD 10 mn per MW of data center capacity, Sajwani said. The Dubai-based developer owns land in Greece, Spain, Saudi Arabia, Turkey, Indonesia, and Malaysia for these developments, focusing on Asia and Europe as key regions for expansion.

REMEMBER- The conglomerate said in June that it plans to invest USD 1 bn in data centers through its digital unit Edgnex over the next couple of years in response to the global demand for digital infrastructure. Its data center unit, Edgnex, is building USD 600 mn data centers in Saudi Arabia in Dammam and Riyadh, slated to go online next year, and USD 1 bn in data centers in Thailand. The company also earmarked USD 100 mn alongside telecoms operator Vodafone Turkey to establish a new 6 MW data center in Izmir, Turkey, also set to go online next year.

#4- Air taxis will operate in Dubai through an Uber-like network, offering automated point-to-point transportation through air corridors across the emirates, Paul Griffiths, Dubai Airports CEO, told The National. The UAE’s General Civil Aviation Authority (GCAA) will define the air taxi corridors and airspace under specific regulations until the process is automated, he said. Once fully automated, “the technology can take care of the separation and optimization of the traffic,” resulting in a “very efficient solution…[making] air taxis very quick, very convenient, very sustainable and very efficient over a short period of time,” Griffiths explained.

Remember: GCAA granted operational approval for the country’s inaugural vertiport back in April, after publishing the world’s first national regulation related to vertiports — covering their design and operational requirements — in December 2022. The authority later confirmed plans to launch air taxis by 1Q 2026, with several eVTOL manufacturers pledging to launch them as soon as next year.

#5- Adia-backed Lenskart eyes pushing valuation to USD 6 bn: Abu Dhabi Investment Authority (Adia)-backed Indian eyewear brand Lenskart is in talks for a USD 200-300 mn secondary share sale, potentially pushing its market valuation to USD 6 bn, Zawya reports, citing sources as telling the Economic Times. The share sale would see Lenskart’s valuation climb by 20%; however, the final structure and size of the share sale will depend on the company securing the “right number of sellers,” according to the sources.

The details: Existing investors Fidelity, Kedaara Capital and a third “significant early investor” are mulling participation in the share sale, the Economic Times said.

Background: Adia bought into Lenskart last year, signing a USD 500 mn agreement with the Indian company to acquire a 10% stake through purchasing primary and secondary shares, making it the largest shareholder in Lenskart.

#6- Stirling Advisors expects Ras Al Khaimah to see 14.1k new units between 2026 and 2029, 40% of which will be branded residences, the Ras Al Khaimah-based advisory firm said in a press release accompanying its Ras Al Khaimah Investment Pulse report. The emirate’s real estate growth is centered around Marjan Island with 63% of the projects taking place there, while the remaining 37% is located in Al Hamra and Mina Al Arab, the firm said.

DATA POINTS-

#1- Nearly 51.6k new companies joined the Dubai Chamber of Commerce in 9M 2024, marking 4% y-o-y growth, according to a press release from the chamber. Meanwhile, the value of members’ exports and re-exports climbed 7% y-o-y during the period to reach AED 224 bn, the release said.

#2- Dubai International Airport (DXB) handled 23.7 mn passengers in 3Q 2024, with the total YTD reaching 68.6 mn, up 6.3% y-o-y, according to the Dubai Media Office. DXB managed over 111.3k flights during the quarter.

The airport is projected to reach an annual traffic total of 91.9 mn passengers by the end of the year, marking the highest total in its history,

#3– The UAE had the lion’s share of assets of the Middle East’s top 25 banks in 2023, with USD 1.1 tn out of a total of USD 3.2 tn in assets, according to a report from Arthur D. Little (pdf). Saudi Arabia followed closely with USD 971 bn in assets.

PSA-

Emirates suspends flights to Iraq + Lebanon: Emirates canceled flights to and from Baghdad, Iraq, until 30 November, and to and from Beirut, Lebanon, until 31 December, the Dubai carrier said in a travel update on its website. Flydubai flights to Baghdad are still operating, but passengers are encouraged to regularly check their flight status for updates, Emirates said.

HAPPENING TODAY-

#1- Ras Al Khaimah Ruler Sheikh Saud bin Saqr Al Qasimi is currently on a four-day visit to Guangdong Province, China, which commenced yesterday, Wam reports. During the visit, the RAK Ruler will sign a cooperation agreement with Guangdong, focusing on the digital economy, scientific and technological innovation, advanced manufacturing, smart cities, and culture and tourism. Al Qasimi will also hold business meetings.

#2- The International Program for Civil Aviation Leaders is on its third day today in Dubai, bringing together over 20 civil aviation ministers, as well as heads of civil aviation authorities from Arab countries to ramp up cooperation within the sector, state news agency Wam reports. The event wraps up on 21 November.

#3- Dubai Future Solutions–Prototypes for Humanity is on its second day today and runs until Thursday 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.

#4- Air Expo kicks off is on its second day and runs until Thursday at the Adnec in Abu Dhabi. The event will gather over 20k aviation professionals and will feature keynote speakers and panel discussions from industry leaders focusing on advanced air mobility, among other topics in the aviation sector.

#5- The Adia Lab Symposium 2024 also runs until Thursday at the ADGM. The event will feature discussions by notable researchers and scientists on the topics of climate change and AI implementations.

#6- Dubai Future Forum is on its second and final day 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 for healthcare, nature, and other key topics.

#7- Qatar Development Bank (QDB) kicked off a Qatari trade mission to the UAE in Dubai yesterday, featuring site visits and dedicated B2B meetings, QDB vice president of enterprise development Khalid Abdullah Al Mana told Khaleej Times. The mission will bring over 25 Qatari companies from various sectors — including construction, plastics, iron and steel, food and beverage, artificial intelligence, and sports technology — to explore investments in the UAE.

#8- Xpanse 2024 kicks off today at the Adnec Center in Abu Dhabi, and runs until Friday, Wam reports. The event will focus on artificial intelligence, machine learning, genomics, quantum computing, neuromorphic computing, and 6G connectivity. Some 3k decision-makers, technology innovators, Nobel Prize winners, industry executives, CEOs, government officials, and scientists are expected to attend.

#9- The Global Freight Summit is wrapping up today at the Dubai Exhibition Centre in Expo City. The event features discussions on key freight-related topics, such as digitalization, sustainability, and building resilient trade routes.

THE BIG STORY ABROAD-

After securing approval from US President Joe Biden earlier this week, Ukraine hit Russia with long-range US missiles, striking an ammunition storage facility without causing any casualties. Moscow views the move as an “escalation” from the West, particularly as Ukraine would be unable to launch the missiles without the US providing “direct operational support.” The attack comes on the 1,000th day of the war. (Bloomberg | Reuters | Wall Street Journal | Financial Times)

Meanwhile in Rio, the G20 issued a statement (pdf) with what’s being described as weak language, further throwing a wrench in stalled negotiations at COP29. The shortcoming is made all the more concerning as world leaders are in “disarray” before Donald Trump — who is expected to bring yet more chaos and uncertainty — enters office, Bloomberg says. The Financial Times also has the story.

AND- Tennis legend Rafael Nadal stepped off the court for the last time in his 23-year career to retire at age 38. The “king of clay” lost his last singles match 4-6, 4-6 against the Netherlands’ Botic Van Der Zandschulp at the Davis Cup yesterday. (Sports Illustrated | New York Times | CNN | Vogue | Reuters)

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