Good morning, wonderful people. It’s nearly the end of the penultimate (full) week before the end of the year, and we’re all counting down the days.

THE BIG STORY here at home is increased activity from Emirati lenders abroad, with FAB joining in on a syndicated loan for an Indian non-banking financial services player, and Emirates NBD and Abu Dhabi Islamic Bank offering financing for a student accommodation facility in London. 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 4.4%, while the interest rate applicable to borrowing short-term liquidity from the CBUAE has been kept at 50 bps above the base rate for all standing credit facilities. We have more on the Fed’s decision in Planet Finance, below.

PLUS- The Abu Dhabi Investment Authority (Adia)’s assets under management have reached USD 1.06 tn, Forbes Middle East reports. This makes Adia the only regional fund in the “exclusive” USD 1 tn club for sovereign wealth funds — joining Norway’s Government Pension Fund Global, China Investment Corporation (CIC), and China’s SAFE Investment Center, Forbes said, citing data from the Sovereign Wealth Fund Institute (SWFI).

ALSO- We have an interesting read for you on the prospects of more US and UAE cooperation on the space sector, after the US Chamber of Commerce brought its first ever space delegation to Abu Dhabi last week.

WEATHER- Expect more clouds today in Dubai, with temperatures peaking at 25°C before cooling to an overnight low of 18°C. Over in Abu Dhabi, the mercury peaks at 22°C before cooling to 20°C overnight.

WATCH THIS SPACE-

#1- The UAE could see more multinational businesses flock to freezones in the country to hedge against the new 15% domestic minimum top-up tax (DMTT) that will be implemented at the start of next year, according to a survey by Arabian Business. This includes both companies already operating in the UAE and those planning to move in.

Remember- Large multinational enterprises will be required to pay a minimum 15% tax on net income earned in the UAE under the Finance Ministry’s recent domestic minimum top-up tax (DMTT), an increase from the current 9% corporate tax rate.

What they said: “Companies are more likely to shift their operations to [freezones] to [minimize] tax exposure, while continuing to benefit from the UAE’s strategic location, strong infrastructure, pro-business policies and [favorable] regulations,” Bal Krishen, chairman of financial services firm Century Group, told the news outlet. Krishen also expected to see the implementation of revenue tapering measures to keep companies below the DMTT eligibility threshold.

#2-The UAE is expected to lead in IPOs across the broader Europe and Mena region for the third year running with USD 6.2 bn in IPO proceeds in 2024, according to Bloomberg ’s calculations. Meanwhile, firms in the Middle East have raised a total of USD 13 bn in IPOs this year, marking the region’s second-best year since the pandemic.

Investment strategies are changing in 2025: Investors are becoming more sensitive in terms of valuation, as they move their focus to growth companies instead of simply buying yield opportunities, one expert said.

More in the pipeline: Etihad Airways is set to make its debut sometime next year on ADX; while Alpha Data is set to debut in a potentially USD 200 mn IPO on the Abu Dhabi exchange soon. On the DFM front, Dubizzle tapped several banks for a 2025 IPO, and hospitality group Five Holdings tapped advisors for a potential IPO also next year. Meanwhile, Amanat Holdings is looking to list its education and healthcare units, with Construction firm Alec, and Shisha producer Advanced Inhalation Rituals having similar plans.

#3- Private credit firms are expected to see rising demand as more medium-sized businesses grow their presence in the UAE and Saudi Arabia, among other Gulf nations, Golub Capital’s CEO Lawrence Golub told Bloomberg. In comparison to government-backed companies and large family enterprises that typically do not require direct lending capital, medium-sized businesses in the region offer “hundreds of mns not bns of USD” of lending opportunities.

ICYMI- Golub Capital, managing USD 70 bn in assets as of 1 October, received preliminary approval earlier this month to set up an office in the Abu Dhabi Global Market.

#4- Registration is now open for AIM Congress’ 2025 regional startup competition, offering a prize pool of USD 200k in investments to finalists, Wam reports. Startups have until 15 February, 2025 to submit their applications through the official website.

More about the competition: The competition targets startups in the seed and series A funding stages, inviting entrepreneurs from eight major regions, namely Latin America, Africa, Europe, the Middle East, the US, China, Southeast Asia, and India. Selected startups from the regional rounds will advance to the finals, where they will pitch their ideas and innovations to a panel of investors, industry leaders, and global decision-makers.

#5- Adia-backed Ardonagh gets a new investor: Abu Dhabi Investment Authority-backed UK ins. broker Ardonagh Group secured an investment from private equity firm Stone Point Capital to reach a USD 14 bn valuation, unnamed sources told Bloomberg. This investment will make Stone Point a minority shareholder in Ardonagh.

#6- Abu Dhabi-based agribusiness Al Dahra is negotiating with Kenya to lease 200k acres of farmland in the Galana Kulalu Irrigation development, Kenya’s principal secretary for irrigation Ephantus Kimotho told Bloomberg. The investment will amount to approximately USD 800 mn, with the two parties close to finalizing an agreement, which might be signed early next year.

PSAs-

#1- UAE citizens are now eligible for a 10-day visa-free entry to China, according to a statement from China’s State Administration of Immigration. The duration of the stay for foreign nationals from 54 countries eligible for visa-free transit — including the UAE — has been extended from the previous 72 hours and 144 hours (3 or 6 days) to 240 hours (10 days).

#2- Dubai’s Roads and Transport Authority (RTA) launched a bus pooling initiative, allowing passengers to share minibus rides through several applications, according to an RTA statement. The service will initially be available in Deira, linking it to Business Bay, Dubai Mall, Mirdif, and Dubai Festival City, before being rolled out across the emirate, CEO of RTA’s Public Transport Agency Ahmed Bahrozyan said. The bookings will be carried out through three smart applications, including Citylink Shuttle, DrivenBus, and Fluxx Daily, each operating 20 minibuses.

THE BIG STORY ABROAD-

One single story is on every front page this morning: The Federal Reserve has slashed rates for the third time this year but will be more cautious moving forward, Fed Chair Jerome Powell said in remarks that sent US stocks falling. (CNBC | Bloomberg | FT | AP | Reuters)

^^ We have the full story in this morning’s Planet Finance.

IN TECH NEWS- The US Supreme Court will next month hear TikTok’s challenge to a law that could potentially ban the application in the US. Meanwhile, the EU is pushing Apple to make its operating system more compatible with rivals.

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