Good morning, friends, and welcome to August. Is it just us or is summer flying by?

The news cycle has slowed significantly from a busy start to the week, with the biggest stories today being fresh real estate data on rentals in Dubai and Abu Dhabi, signaling an imminent supply crunch across commercial sectors; the Central Bank of the UAE holding rates steady in line with the Fed; and a lot more earnings.

UPDATE ON OUR OLYMPICS RUN- Emirati judoka Aram Grigorian narrowly missed his chance to advance to the semi-finals after losing to Japan’s Murau Sanchiro. Dzhafar Kostoev faces off against Brazil’s Leonardo Goncalves today at 12:24pm.

Also happening today: The equestrian team — made up of Abdullah Al Marri (with the horse BBS McGregor), Omar Al Marzooqi (Enjoy de la Mure) and Ali Al Kirbi (Jarlin de Torres) — will compete in today’s qualifier round for jumping at 1pm.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- You’ll be paying more at the pump this month: The Fuel Price Follow-up Committee increased fuel prices for August by around 2% after a 4.7% price cut last month, according to an X post by the Emirates General Petroleum Company.

The breakdown: Super 98 is now AED 3.05 per liter, Special 95 is now AED 2.93, and E-Plus 91 now costs AED 2.86. Diesel is now AED 2.95 per liter, up from AED 2.89 last month.

#2- Emirates won’t accept transit passengers from Dubai to Beirut until tomorrow, halting all transit flights in the wake of Israel’s escalations in Lebanon, Reuters reports, citing a travel update. However, the airline will still operate its flights from Dubai and Beirut. Meanwhile, budget airline FlyDubai has also cut its daily flights to Beirut to two until tomorrow.

WATCH THIS SPACE-

#1- Egyptian fintech giant MNT-Halan wants to expand to Saudi Arabia and the UAE, among other markets, EnterpriseAM Egypt quotes founder and CEO Mounir Nakhla as saying. The company’s expansion will see it acquiring businesses in new markets, Nakhla said. MNT-Halan raised a blockbuster USD 157.7 mn funding round and has acquired 100% of Turkish consumer finance outfit Tam Finans.

#2- Sudan’s gov’t agrees to ceasefire talks with RSF — on certain conditions: Sudan’s government agreed to participate in US-mediated ceasefire talks with the Rapid Support Forces, on the condition that the latter withdraws from Sudanese cities and halts attacks against civilians, Reuters reports, citing a statement from the Sudanese foreign ministry. The government also requested meetings with US officials to discuss the agenda for the talks.

Both sides have been receptive to meeting with US officials ahead of the talks, which are set to take place on 14 August in Switzerland, and which will be co-hosted by Saudi Arabia and attended by the UAE, Egypt, the African Union, and the UN as observers, US Special Envoy Tom Perriello said. A planned meeting in the army’s de facto capital Port Sudan was canceled but is set to be rescheduled, he added.

#3- Turkey wants to finalize trade talks with the GCC trade by the end of the year, the Turkish Trade Ministry was quoted as saying by Reuters. Talks taking place earlier this week saw the two sides discuss goods trade, rules of origin, contracting, tourism and health, as well as services trade and steps to boost investments.

What’s next: “The sides have agreed to continue the talks through online meetings and to meet in Riyadh in the second half of the year for a second round of negotiations,” the ministry said.

ICYMI- The GCC embarked on talks with Turkey for a trade agreement earlier this week, headed by Saudi Arabia, after agreeing in March to initiate trade liberalization talks. The UAE already has a separate trade and economic partnership agreement with Turkey, which they inked last year.

#4- Sidara now has until 9 August to submit its final offer to acquire UK engineering firm Wood Group after the board approved the extension of the initial deadline set for yesterday, Wood said in a London Stock Exchange filing. After Wood rejected three previous bids, Sidara was granted due diligence and allowed to engage with Wood in June. The engineering and consulting firm’s latest bid saw it offer to acquire Wood Group at GBP 2.3 per share, valuing the company at GBP 1.59 bn, which it said would be its final offer.

MORE M&A?

We also have news from local Indian press of both Emirates NBD and Abu Dhabi Investment Authority closing in on two separate acquisitions:

#1- Is Emirates NBD among the bidders vying for the Industrial Development Bank of India? Emirates NBD has secured a spot among the final bidders for the Industrial Development Bank of India (IDBI) Indian broadcaster NDTV reported, citing people familiar with the matter. Along with Canadian Fairfax Financial Holdings and Indian Kotak Bank, Emirates NBD is vying for a majority stake in the Indian state-owned bank, with the government reportedly planning to sell a 60% stake in the lender. Having received approval from the Reserve Bank of India, the shortlisted firms are set to commence due diligence on IDBI before submitting their final offers.

Background: The sale process, initiated by former Indian Finance Minister Arun Jaitley in late 2015, is now in its final stages. After selling a majority stake to Life Ins. Corporation of India in 2019 as an interim measure, the government began divesting from IDBI in 2022.

#2- Has an Adia-backed consortium made another bid for Haldiram? Local Indian press has it that a consortium of Abu Dhabi Investment Authority, Singapore’s sovereign wealth fund GIC, and US alternative investment manager Blackstone is offering to pay USD 4.8 bn to buy a 51% stake in Indian food brand Haldiram, Moneycontrol reports, citing people in the know. The consortium is said to be planning to submit its final offer after concluding due diligence, conducted by EY on behalf of the consortium, according to sources.

Blackstone denied that talks have progressed since May due to a “valuation mismatch,” the investment manager said in a statement.

ICYMI- Reuters reported in May that the consortium had submitted a non-binding bid for a 75% majority stake in the Indian snacks business, with the potential agreement valuing the company at up to USD 8.5 bn.

DATA POINTS-

#1- Abu Dhabi Airports welcomed nearly 14 mn passengers in 1H 2024, up 33.5% y-o-y, with Zayed International Airport alone witnessing a 33.8% y-o-y rise in passenger traffic to over 13.7 mn passengers, according to the Abu Dhabi Media Office. The airports operator logged a 24.3% y-o-y increase in flight movements to over 84k flights in the first half of the year, on the back of new airline and destination additions to its network.

The operator’s airports handled some 254.3k tonnes of cargo during the period, driven by strategic partnerships and infrastructure enhancements, including a new DHL airside facility and the completion of the design phase of the new East Midfield cargo terminal.

#2- Deployment of AI-powered data centers is set to add over AED 14.3 bn to Dubai’s economy by 2028, Wam reports, citing a study by Digital Dubai. To achieve this, the authority has introduced measures to implement the Strategic Vision for the Data Centre Economy, an initiative aimed at preparing the emirate for the integration of next-gen tech to boost renewable energy access and energy conservation, streamline government procedures, and and developing high-performance computing.

#3- Demand for gold in the UAE hit 23.4 tons in 1H 2024, representing 27.7% of the total demand in the Arab market, Al Bayan reports, citing the World Gold Council. Demand for gold jewelry dropped 13% y-o-y in 2Q 2024 for the sixth consecutive quarter on the back of high gold prices and market disruptions due to April’s floods, the World Gold Council said in its report (pdf).

#4- Abu Dhabi’s ports recorded an 8% y-o-y increase in non-oil trade during May to AED 31.54 bn, according to data (pdf) from the emirate’s statistics center. Exports through the emirate’s ports grew 12% y-o-y to AED 18.4 bn, with machinery equipment accounting (pdf) for the largest portion of exports.

MEANWHILE- Are you planning to be in Egypt on 24 September? You may be interested in attending our 2024 Enterprise Finance Forum. Seating is strictly limited at our flagship, invitation-only forum for C-suite executives and other senior leaders.

Why attend? We’re in the early days of a generational realignment of power in our industry — in our region and beyond — and on the cusp of the biggest intergenerational transfer of wealth the world has ever seen. With that as the backdrop, we’re going to take stock of where we stand six months after the float of the EGP and ask what’s next for finance in Egypt and the wider region. Among the questions we’ll be asking:

  • What roles will Egypt, Saudi and the UAE play in the regional industry going forward?
  • What are foreign investors looking for right now?
  • Is real estate the only asset class in Egypt?
  • What does the next generation of leaders think as they take over established family businesses?

Do you want to request an invitation? Tap or click the image below.

HAPPENING NEXT WEEK-

CBUAE to auction AED 23 bn m-bills: The Central Bank of the UAE (CBUAE) will offer up to AED 23 bn in four m-bills at an auction on Monday, 5 August, according to a statement (pdf) from the bank. Three of the m-bills are tap issuances, with the four having tenors ranging from 28 to 322 days.

Decoding central bank speak: M-bills are short-term securities issued in AED by the CBUAE at no interest. The bonds typically have maturity dates of one to 12 months and are not retrievable through any other listing. A tap issuance allows the CBUAE to more finely control money supply by allowing it the flexibility to continue selling bills past the initial auction date.

THE BIG STORY ABROAD-

The US Federal Reserve’s signal that it plans to cut interest rates in September is leading most front pages of the business press, as more earnings and escalations in regional tensions dominate others.

#1- The Fed held rates steady following its two-day meeting, in line with expectations, but Chair Jerome Powell set the stage for a September rate cut, saying it is on the table if inflation continues its downward trajectory and growth remains strong. (Reuters)

ALSO- Japan’s central bank hiked rates for the second time this year, in a bid to boost its currency and ease prices of imports. (CNBC)

The Bank of England will meet later today, capping a big week for rate-watchers. The expectation is that it will go for a quarter-point cut to 5%.

#2- Facebook parent Meta beat revenue expectations on the back of robust digital ad sales, which it said will help cover the rising costs of AI — flipping the script after Microsoft and Alphabet’s earnings and capital expenditure projections raised concerns around the commercial viability of AI.

IN OTHER BUSINESS NEWS- Boeing named aerospace veteran Kelly Ortberg as its new CEO as it looks to rebound from a series of losses and high-profile scandals amid an ongoing quality crisis. (Reuters)

MEANWHILE- The region is holding its breath following the killing of Hamas’ top political leader, Ismail Haniyeh, in Iran early yesterday morning, with fears that it will jeopardize ongoing ceasefire negotiations and spark retaliation from Hamas. (Reuters)

OLYMPICS-

We’re nearing the halfway mark of Olympics 2024, with day six of the competition seeing Simone Biles look to clinch her gold medal for the women’s all-around final; the athletics program kicks off; and four more swimming finals.

Highlights from yesterday: Novak Djokovic and Carlos Alcaraz have each made it through to the quarter-finals in the men’s singles, potentially setting themselves up for a golden showdown, while Rafael Nadal is out of the competition after losing alongside Alcaraz in the men’s doubles yesterday. In swimming: The US’ Katie Ledecky brought home another gold for the 1.5k meters freestyle; while French Leon Marchand brought home two golds, putting France second to the top on the medals table.

The medal standings now at the Paris Olympics:

  • China (9 gold, 19 overall)
  • France (8 gold, 26 overall)
  • Japan (8 gold, 15 overall)
  • Australia (7 gold, 16 overall)
  • Great Britain (6 gold, 17 overall)

Want to see when your favorite sport is on? Check out the official schedule here.

CIRCLE YOUR CALENDAR-

The annual jiu-jitsu tournament, the Abu Dhabi Extreme Championship, is returning to Abu Dhabi at the Mubadala Arena on 2 August, Wam reports.

Abu Dhabi will play host to a big night for mixed martial arts fans on 3 August at Etihad arena. The UFC Fight Night will see the return of MMA champion Nick Diaz, who has been out of the limelight since 2021, as he goes head to head with Tony Ferguson.

Also set to clash: Former flyweight champion Deiveson Figueiredo will face bantamweight title challenger Marlon Vera, while world number 2 bantamweight contender Cory Sandhagen will headline against Umar Nurmagomedov.

The World ESG Summit is scheduled to take place on 20-21 August at Dusit Thani in Dubai. The two-day business conference will gather public and private sector players from key sectors like energy, utilities finance, and manufacturing to explore ESG integration across all industries.

The Sharjah Entrepreneurship Centre (Sheraa) is accepting applications for the Access Sharjah Challenge until 5 September, offering two grants worth AED 250k to two startups in the sectors of agritech and livestock health. Shortlisted startups will receive mentorship to help them expand.

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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