Good morning, friends. We were not kidding when we said the UAE is “back to business” after the long weekend — it seems everyone has squeezed a week’s worth of work into just two days based on the newsflow today.

We have a string of M&A news from Mubadala, who, for the first time, accepted outside equity into one of its subsidiaries as part of a transaction; as well as acquisitions from NMDC’s new logistics unit, NMDC LTS, and Aliph Capital. Plus: ADGM now has a regulatory framework for stablecoins, and we have fresh data on the UAE’s fiscal surplus in 9M 2024, and trade figures from Abu Dhabi.

WEATHER- It’s slightly warmer in Dubai today, with a high of 28°C and a low of 22°C. In Abu Dhabi, we have a high of 26°C, and an overnight low of 24°C.

WATCH THIS SPACE-

#1- Abu Dhabi investment firm Mair Group set a reference price of AED 1.16 for its direct listing on ADX, with plans to float the share price for the first three days of trading, according to an ADX disclosure (pdf). Trading is set to begin on 9 December. The company, which specializes in food retail and commercial real estate, was recently consolidated, with Adcoop and Makani moving under its wing in September.

REMEMBER- In a direct or technical listing, the share price is determined based on supply and demand, but the company sets a reference price to calculate how its share price is performing from the day its shares debut on the exchange. The key difference between a direct listing and an IPO is that a direct listing does not involve a bookbuilding process or underwriters — it simply makes the company’s existing shares tradeable on the bourse. Agility Global had a technical listing on the ADX earlier in May, where it saw its reference share price jump 327% on the first day of trading.

#2- Adia cleared by Indian competition watchdog for GMR Group debt subscription: Abu Dhabi sovereign wealth fund Adia received the greenlight from the Competition Commission of India to invest in USD 750 mn of Indian infrastructure firm and airport operator GMR Group’s debt, according to a statement (pdf) from the commission. A GMR Group special purpose vehicle will acquire a 9% stake in GMR’s airport unit GMR Airports as part of the transaction, in order to pledge it to Adia to secure its subscription.

Background: Adia had said it would invest in GMR Group’s debt in October, as the Indian firm looks to refinance its external debt and reduce pledged shareholding in its airports business, Reuters had said at the time. The company reported a total debt of INR 44.77 bn (c. USD 532.5 mn), an increase of nearly 4% y-o-y, in its latest annual report.

#3- Another Edgnex data center in Greece: Edgnex Data Centers, a joint venture (JV) between Damac and PPC Group, launched Data In Scale, a JV focusing on the development of a data center in Spata, Greece. The joint venture will see Damac holding a 55% stake and PPC Group owning 45%, according to a press release.

The details: The first phase of the project involves an investment of EUR 150 mn to establish 12.5 MW of capacity, with plans to expand to 25 MW in subsequent phases. Currently in the design and licensing stages, construction is set to commence in 1Q 2025, with the aim of completing the first phase within two years.

ICYMI: Damac Group plans to invest approximately USD 3 bn in establishing data centers across Southeast Asia through its subsidiary Edgnex, and between USD 5 and 7 bn to expand globally. The company is primarily targeting Malaysia, Indonesia, and Thailand in Southeast Asia.

#4- Despite the ongoing regional conflict, Abu Dhabi’s economy is expected to lead growth in the UAE next year at 5.6%, Zawya reports, citing data from BMI, a unit of Fitch Solutions. Dubai’s growth is forecasted at 3.5%, driven by strong investment, private consumption, and a recovery in oil production. The UAE’s non-oil sector is expected to grow by 6%, while the oil sector is set to recover by 2.5% as Opec+ eases supply restrictions later in the year.

REMEMBER- Fitch previously forecast the UAE’s economy to grow by 5.2% in 2025, making it the fastest growing economy in the Gulf region next year.

Fitch sees the war between Israel and Hamas and Hezbollah ending in the first half of 2025, with US President-elect Donald Trump’s push to expand the Abraham Accords influencing the Israel-Hamas conflict, the report is cited as saying.

#5- Could RedBird potentially hold onto The Telegraph? UK Prime Minister Keir Starmer has not dismissed the possibility of revising the ban on foreign state ownership of UK newspapers ahead of his upcoming visit to the UAE sometime this month, The Telegraph reports. This comes after the UK government recently passed a law preventing UAE-backed RedBird IMI from taking over The Telegraph, which led to the sale of its sister magazine the Spectator in September. .

The Enterprise Act currently prohibits foreign state ownership or influence over newspaper mergers, but the government has yet to introduce secondary legislation to clarify any exceptions since consultations concluded after the last general election. One proposal under discussion would allow sovereign wealth funds to hold up to 5% of UK newspapers, though there have been proposals from Treasury to raise that cap as the UK government eyes more funding from the GCC.

#6- Stake to expand Saudi footprint: Dubai-based fractional ownership firm Stake plans to invest SAR 1 bn (USD 266 mn) in property agreements in Saudi Arabia over the next six months, its co-founder and CEO Rami Tabbara told Bloomberg. The planned investments includes acquiring a fully-rented mall in Riyadh for SAR 187 mn and purchasing a residential tower with over 140 apartments for SAR 200 mn.

Stake has seen “amazing demand” from investors since its soft launch in the Kingdom, on the back of high rental yields of 7-8%. The company plans to officially launch operations in Saudi Arabia on 9 December.

ICYMI- We knew this was coming: Stake raised USD 14 mn in series A funding earlier in June to expand its pool of investors and enter Saudi Arabia this year. The company said it would use the funds to become the first platform to allow individuals outside of the kingdom to invest in Saudi real estate.

It’s not only eyeing KSA: The company is also preparing to launch in Abu Dhabi early next year, Tabbara said.

#7- DP World plans to expand in India: UAE-based port operator DP World intends to boost its presence in India by expanding into more industrial parks and logistics projects, aiming to address trade bottlenecks and ease cargo movement from ports to customers, CEO Sultan Ahmed Bin Sulayem said in a Bloomberg interview.

China is also an area of interest: The Chinese market is also an area of interest for DP World as it recovers from the pandemic and factories continue to manage cargo backlogs, Sulayem added.

DP has ties in India: The port operator launched operations at Cochin Economic Zone in the Vallarpadam terminal back in June and also operates in Mumbai’s Nhava Sheva Business Park and Chennai’s Integrated Chennai Business Park.

#8- ADDED, ADDGE launch Golden Vendor list: The Abu Dhabi Department of Economic Development (ADDED) and the Abu Dhabi Department of Government Enablement (ADDGE) extended the scope of the Golden List with the introduction of a Golden Vendor list of local suppliers, covering 145 industries and addressing 74% of the government’s procurement needs, according to the Abu Dhabi Media Office. The list will later be expanded to include high-demand services, and will be integrated into the government’s tender processes to prioritize local content in procurement evaluations and encourage local manufacturing and supplier purchases.

PSAs-

The alcohol tax is back: All alcohol orders in Dubai will once again be subject to a 30% municipality alcohol sales tax starting 1 January, 2025, Caterer Middle East reports. Alcohol distributors MMI and African+Eastern notified affected restaurants and bars in the emirate about the reinstatement of the tax.

Background: The emirate suspended the alcohol sales tax at the end of 2022 for an initial one-year trial period throughout 2023, aiming to reduce alcohol costs for businesses and consumers. The suspension was quietly extended through 2024, with no official announcement made.

HAPPENING TODAY-

#1- The two-day Milken Institute Middle East and Africa Summit is on its second and final day at St. Regis Saadiyat Island in Abu Dhabi. The summit gathers key business and philanthropic leaders, health and finance experts, and policymakers to discuss solutions aimed at addressing various global issues, including climate change, public health crises, and energy insecurities.

#2- The Abu Dhabi Business Week is on its third and final day at the Adnec Center in Abu Dhabi. The event features discussions aimed at supporting business development in the emirate.

THE BIG STORY ABROAD-

It’s a mixed bag in the foreign press this morning, with more updates on France’s government after the resignation of Prime Minister Michel Barnier, Syrian rebels advancing in Syria, and some AI news.

#1- French President Emmanuel Macron will appoint a new prime minister in the coming days, with the priority for his selection being the budget — the key point of contention that led parliament to vote out Barnier. Macron pledged to fulfill his five-year term ending in 2027 despite calls from opposition for him to resign. The Guardian has a list of potential candidates. (Reuters | Washington Post | France24)

#2- CLOSER TO HOME- In Syria, Syrian rebels captured the central city of Hama in another blow to the Assad regime, after capturing Aleppo last week. The capture of Hama will make it more difficult for Assad and his allies to launch a counteroffensive against the rebels, and will make it easier for them to capture Homs, south of Hama, which is Syria’s third-largest city. (AP | Reuters | Guardian | CNN)

#3- IN AI NEWS- Elon Musk’s xAI secured USD 6 bn in new funding from 97 investors, according to a regulatory filing, which did not name any specific investors. The funding round was rumored to value the startup at some USD 40 bn. (Bloomberg | TechCrunch)

REMEMBER- Saudi Arabia’s PIF had previously invested in xAI, and Abu Dhabi investor MGX was also rumored to be eyeing an investment in the startup.

OIL WATCH-

Opec+ will delay its planned output hike to April 2025, planning to fully remove production cuts by the end of 2026, according to a statement. The group will gradually unwind 2.2 mn bpd of cuts from April 2025 through monthly increases of 138k barrels per day (bbl / d) until September 2026, according to Reuters’ calculations. This move marks the group’s third time it has delayed plans to phase out oil supply amid a slowdown in global demand and a rise in supply outside the cartel.

The organization also agreed to allow the UAE to increase its production by 300k bbl / d gradually from April 2025 instead of the beginning of the year as previously agreed until September 2026.

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