Good morning, wonderful people. We’re back to the regular news dump of the fall season, with news of a new ADX IPO, IRH planning investments in South Africa, and Adnoc Drilling expediting its drilling plans in Abu Dhabi.

ALSO- We have an exclusive with ADX CEO Abdulla Alnuaimi, who told us what else is in store for the ADX for the rest of the year — more IPOs, a new index, and tokenized bonds are on the cards — and what his priorities are for the exchange. Let’s dive in.

WEATHER- The bouts of rain seem to be giving way to sunshine in Dubai today, with temperatures expected to hit 38°C, before cooling to an overnight low of 31°C. Over in Abu Dhabi, expect lots of sun and temperatures to hit 35°C, before cooling to 31°C overnight.

WATCH THIS SPACE-

#1- Adnoc to pull the trigger on Covestro takeover this week? That’s according to the Wall Street Journal, who quotes sources as saying that the company is set to announce the takeover agreement this week if no snags disrupt their plans. The state-run oil firm was said to be finalizing a formal bid of around EUR 14.4 bn, including debt, to acquire German chemicals company Covestro, last month. Adnoc’s CEO Sultan Al Jaber reportedly touched down in Germany in August to wrap up negotiations.

Remember: Adnoc said in June that it was ready to raise its takeover bid to EUR 62 per share, giving Covestro a potential valuation of EUR 11.7 bn. This came after revising its offer three times during the talks, which have been ongoing for over a year. Adnoc was reportedly nearly done with due diligence in August.

#2- Also reportedly nearing an acquisition: ADX-listed PureHealth, which is said to be pursuing the acquisition of the largest hospital operator in Greek and Cyprus, Hellenic Healthcare Group, Gulf News reports, citing unnamed market sources. The healthcare giant will be buying CVC’s stake in Hellenic for an undisclosed sum. This would mark PureHealth’s second European expansion after acquiring the UK healthcare operator Circle Health Group for USD 1.2 bn.

#3- Morgan Stanley sees casinos in the UAE potentially generating USD 3-5 bn in gaming revenue annually, supported by the UAE’s busy airports, high population of high-net-worth individuals, and concentration of five-star hotels, it said in a note picked up by media outlets (here, here, and here). However, achieving these figures is dependent on whether locals are allowed to gamble and the long-term impact of geopolitical tensions in the region, the investment bank said.

REMEMBER- The UAE issued a regulatory framework for the gaming sector last July as the country makes a push in the sector, though it still has yet to clarify regulations around gambling. Still, gaming establishments are already underway, with Ras Al Khaimah set to welcome the region’s first gaming resort, the USD 3.9 bn Wynn Al Marjan Island Resort, by 2027, and Las Vegas entertainment giant MGM Resorts applying for a license to run casino operations in Abu Dhabi.

#4- District cooling firm Empower received board approval to obtain a three-year unsecured loan to refinance outstanding debt of AED 2.75 bn, according to a DFM disclosure (pdf).

Not the only UAE firm to refinance its debt: AD Ports Group has also recently agreed with two UAE banks to refinance a USD 2.25 bn loan. This came on the heels of the Central Bank of the UAE cutting the overnight deposit rate by 50 basis points to 4.90% from 5.40% last month, following in the footsteps of the Fed. The move allowed the company to capitalize on lower rates by securing longer loan tenors at more competitive rates.

#5- DIFC to roll out expansion plan in 2025: Dubai International Financial Centre (DIFC) is set to unveil “significant expansion plans” by the end of next year that will be implemented over the next three to four years, DIFC’s Chief Business Development Officer Salmaan Jaffery told Bloomberg (watch, runtime: 6:03). The expansion is poised to meet the demand inflows for DIFC office space, Jaffery said, noting that the center aims to deliver “new real estate products as well as new capacity.”

REMEMBER- Occupancy levels at DIFC-owned properties remained high at 99.6% in 1H 2024. The center welcomed 820 new companies in 1H 2024, up 24% y-o-y.

ICYMI- DIFC has been planning to add 1.6 mn sq ft of A-grade commercial space in the next three years to address high demand, after inaugurating DIFC Innovation One in 1Q 2024, adding over 200k sqft of space. The center also plans to launch a DIFC Funds Center in 1Q 2025, offering hedge fund spinouts, fund platforms, and boutique asset management firms.

#6- US eases AI chip shipments to MENA data centers: The US Commerce Department introduced a new rule set to make it easier for data centers in the Middle East to receive shipments of AI chips, the US Commerce Department said in a statement. The new rule enables data centers to receive chips under a general authorization by applying for a validated end user status, rather than requiring individual licenses from their US suppliers.

The rule will require data centers to undergo a rigorous review process to make sure safeguards are in place to ensure the safe use of US technology, the Commerce Department said in a statement.

What could it mean for the UAE? This may help state-owned AI outfit G42 — which operates data centers — receive US tech exports without additional hurdles. The company should be receiving large-scale AI components from Microsoft as part of the second phase of US tech giant’s USD 1.5 bn investment in G42, which required licenses from the US government. The UAE has already started receiving Nvidia chips as part of the partnership after the US approved their sale earlier this year, and after the two sides agreed on safeguards like the use of US defense tech to prevent potential breaches amid heightened tensions between the US and China.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- You’ll be paying less at the pump this month: The Fuel Price Committee reduced fuel prices for October by about 8%, following a 6% price decrease last month, according to an X post by the Emirates General Petroleum Company. The breakdown for one liter:

  • Super 98: AED 2.66;
  • Special 95: AED 2.54
  • E-Plus 91: 2.47,
  • Diesel: AED 2.60

Taxi fare prices in Ajman are dropping in tandem to reach AED 1.75 per km, according to an X post. This is a five fils reduction from September’s AED 1.8 per km fare.

#2- Investors and companies can now access real-time updates on all commercial licenses for companies across the seven emirates, courtesy of a new National Economic Register (Growth) platform launched by the Economy Ministry, Khaleej Times reports. The platform serves as the largest economic database in the UAE, featuring information on over 4k economic activities, including business license authenticity and market trend analyses.

#3- REMINDER- Drivers in Ajman need to be careful with violations like mobile phone usage and failure to wear seatbelts. Starting today, October 1, the emirate has launched a smart monitoring system to detect these violations, Ajman police stated in an X post.

#4- Dubai’s Road and Transport Authority inaugurated a new two-lane bridge on Al Khail Road, located between the intersections of Al Khamila and Hessa Street, Khaleej Times reports. This bridge is designed to accommodate up to 3.2k vehicles per hour and aims to ease traffic congestion towards Deira.

#5- Ras Al Khaimah Police will be launching 20 smart gates, providing real-time updates on weather and road conditions, integrated with the main operations room for continuous traffic monitoring, according to an X post. They will also feature AI-powered cameras for immediate incident reporting, with installation currently underway.

#6- Emirates Airlines extended the suspension of flights between Dubai and Beirut until 8 October, according to an Emirates travel update. Passengers traveling to Beirut through Dubai will be barred from taking their flights at their point of origin.

#7- Local orgs can now access World Bank advisory services online: The Finance Ministry launched a World Bank’s advisory page on its website, providing local organizations with access to the Bank’s advisory services and it allows them to monitor the status of their requests, Wam reports.

#8- UAE residents registered in the unemployment ins. system can now collect their unemployment ins. payments from any of Al Fardan Exchange’s 87 branches nationwide, according to a press release. The service, launched under a partnership between Al Fardan and Dubai Ins., is available for customers in the unemployment ins. system, which provides financial support to employees who have been registered for at least 12 continuous months and lost their jobs unexpectedly. The partnership makes Al Fardan the first exchange in the UAE to offer such ins. payouts.

DATA POINTS-

#1- The CBUAE saw strong demand for its September M-bill issuance, which raised AED 11.6 bn after seeing its four tranches oversubscribed, according to CBUAE data (pdf). The breakdown:

  • The 266-day tranche was 2.57x oversubscribed, attracting AED 10.26 bn in bids at an average yield of 4.49%;
  • The 28-day tranche was 1.18x oversubscribed with bids worth AED 4.27 bn, at a 5.04% yield;
  • The 70-day tranche was 1.67x oversubscribed, with bids worth AED 2.5 bn and a yield of 4.95%,
  • while the 98-day tranche drew AED 4.98 bn in bids at a 4.88% yield, with an oversubscription rate of 1.99x.

HAPPENING TODAY-

#1- Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan is heading to Qatar today on an official visit to meet Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani and other senior Qatari officials, according to the Abu Dhabi Media Office.

#2- The Dubai World Trade Centre will host the Water, Energy and Environment Technology Exhibition 2024 from 1-3 October. Organized by the Dubai Electricity and Water Authority, the event will focus on advancements in cybersecurity, digital transformation, and sustainability, showcasing the latest technologies and solutions to enhance digital and environmental security.

HAPPENING THIS WEEK-

#1- The Dubai World Trade Centre will host the World Green Economy Summit from 2-3 October 2024. Organized by the Dubai Supreme Council of Energy, Dubai Electricity and Water Authority, and the World Green Economy Organization, the event will focus on green finance and sustainable development, highlighting global efforts to increase climate resilience and bolster international cooperation.

#2- The Sport Industry Forum kicks off on 2 October at NYU Abu Dhabi, according to a press release (pdf). The two-day event will gather over 300 leaders from the global and regional sports sectors to discuss the future of sports in the UAE.

#3- The Mena Cool Forum will take place on 2 and 3 October, at the Mövenpick Grand Al Bustan in Dubai. The forum will facilitate discussions on the selection strategies between district cooling and conventional HVAC systems. It will cover new developments, policies, project reviews, innovations, regional updates, and decarbonization efforts.

#4- The Mövenpick Grand Al Bustan in Dubai will also host The Future Food Forum 2024 on 2-3 October. The event focuses on food, consumer behavior, and the government’s role in the food and beverage sector.

THE BIG STORY ABROAD-

Israel’s launch of a ground invasion in southern Lebanon is dominating front pages in the foreign press, after the Israeli military said it will be carrying out “limited” ground raids against Hezbollah targets in the area. In the meantime, aerial attacks continued through the night in Beirut’s suburbs, with at least 95 killed in the past 24 hours. (Reuters | Bloomberg | NY Times)

The strikes yesterday also killed Hamas leader Fateh Sherif Abu El Amin, Hamas confirmed.

It’s quiet over in the business press, though two stories are grabbing headlines:

#1- US Federal Reserve Chair Jerome Powell said that the Fed is not “in a hurry” to cut interest rates, hinting that the central bank will go for two 25 bps rate cuts in its next meetings as previously projected. (Reuters)

#2- CVS Health could potentially split its ins. and retail units, amid escalating pressure from investors to boost its performance, Reuters reports. This would effectively unwind CVS’ USD 70 bn takeover of healthcare insurer Aetna in 2017.

***

You’re reading EnterpriseAM UAE, your essential daily roundup of business, economics, and must-read news about the UAE, delivered straight to your inbox. We’re out Monday through Friday by 7am UAE time.

EnterpriseAM UAE is available without charge thanks to the generous support of our friends at Mashreq.

Were you forwarded this email? Tap or click here to get your own copy of EnterpriseAM UAE.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on UAE@enterpriseAM.com .

DID YOU KNOW that we also cover Egypt, Saudi Arabia, and the MENA climate and logistics industries?

***

Leave a comment

Your email address will not be published. Required fields are marked *