Good morning, lovely people. We have a brisk issue for you this morning, with just a couple of big stories worth your attention. On the M&A front, Adnoc’s takeover bid for Covestro has entered the acceptance period, leaving shareholders a month to approve the transaction. And in other news, the driving age has been lowered to 17, with a package of new traffic regulations coming into effect next year.

WEATHER- Temperatures are slowly cooling in the UAE, with the mercury in Dubai peaking today at 35°C, and reaching 28°C overnight. In Abu Dhabi, expect a high of 31°C and an overnight low of 29°C.

WATCH THIS SPACE-

#1- UBS Global Wealth Management’s CIO Michael Bolliger sees the UAE’s GDP topping 5% in 2025, matching the IMF’s latest projections, Wam reports. The upbeat outlook is driven by the UAE’s ramped-up oil production and favorable external forces, including China’s recent stimulus package, monetary policy easing, and the lower reserve requirement rate.


#2- Indian conglomerate and oil refinery operator Reliance Industries plans to relocate most of its Dubai crude oil trading team back to Mumbai by the end of the year, two unnamed sources told Reuters. This relocation aims to reduce costs, especially after securing long-term oil supplies from Russia and conducting long-term import agreements with Middle Eastern producers, making spot cargo trading less important. Dubai’s office will have just three to four brokers, who are also set to leave eventually to Mumbai. Meanwhile, the product trading team will continue to operate in Dubai for the time being.

Background: Reliance Industries commenced its Dubai operations in 2021, capitalizing on the city’s position as a hub for Russian oil trade. The firm currently imports about 40% of its oil needs from Moscow.


#3- The UAE has clinched the presidency of the Arab Parliament, with Federal National Council member Mohammed Al Yamahi elected to serve as president, according to news reports (here and here).

#4- Participants in the Road 2.0 initiative published a declaration of intent to adopt and promote zero-emission vehicles, Wam reports. Backed by the Energy and Infrastructure Ministry, the initiative includes 17 businesses committed to decarbonizing 30% of their transport fleet by 2030 and achieving 100% decarbonization by 2040. Plans are in place to have around 90 commercial electric vehicles (EVs) on the roads by the end of the year, with a target of procuring up to 6k zero-emission vehicles by 2030 and reaching 20k by 2040.

#5- Savings and investment company National Bonds plans to develop real estate projects worth USD 1.5 bn over the next five years, the company’s CEO Mohammed Qasim Al Ali told Al Khaleej. The firm is also eyeing potential investments in the education and health sectors.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- More flights halted: Flydubai suspended or rerouted its flights to Jordan, Iraq, Iran, and Israel on Saturday following Israel’s airstrikes on Tehran, a spokesperson for the budget airline told Khaleej Times. Abu Dhabi’s Etihad Airways redirected several of its flights on Saturday, anticipating that disruptions would last for the next 48 hours, a spokesperson told the news outlet.

Remember- Flights operated by Dubai’s flag carrier Emirates to and from Baghdad and Tehran remain suspended until 30 October, while flights between Dubai and Beirut remain canceled until 31 October.

#2- Vessels can now start booking anchorage services at Jebel Ali’s new anchorage area, according to a statement. Services will include bunkering, crew changes, repairs, and special technical services, according to a separate circular (pdf).

DATA POINTS-

#1- Emirati investors contributed the lion’s share to Saudi Arabia’s net FDI last year, with investments valued at SAR 16 bn, according to a report from the Saudi investment ministry (pdf).

#2- The UAE’s freezones collectively saw the number of business licenses registered climb to 203k as of 3Q 2024, representing 22% of the country’s total licenses, Al Bayan reports. This marks an 18% increase over 9M 2023, with nearly 31k new licenses added

By the emirate: Dubai leads the way with around 55% of freezone licenses, totaling over 111k across 15 freezones. Ras Al Khaimah follows with 42.9k licenses, Sharjah has 38.9k, and Abu Dhabi rounds out the list with 10k licenses.

HAPPENING TODAY-

#1- Vietnamese Prime Minister Pham Minh Chinh arrived in Abu Dhabi yesterday for talks with President Sheikh Mohamed bin Zayed Al Nahan, as well as Prime Minister Sheikh Mohammed Bin Rashid Al Maktoum, according to separate reports from Wam and Vietnamese press. Cooperation agreements are set to be inked between the two countries, with Chinh also set to attend a Vietnam-UAE business forum.

Chinh already met with officials from several UAE firms yesterday to discuss potential investments in Vietnam, including AD Ports, NMDC, and Emirates Driving, according to separate reports. Chinh discussed potential cooperation on electrical vehicle production between Emirates Driving and Vietnamese automotive firm Vinfast, as well as cooperation between NMDC and Petrovietnam on gas, offshore wind and power development, and sea reclamation.

REMEMBER- The two countries are finalizing terms of their trade and economic partnership agreement, which seeks to expand economic cooperation between the two countries.


#2- The MENA Climate Proof Forum kicks off today and runs until tomorrow in Dubai. The event will address regional-specific climate challenges, with the aim of accelerating action and readiness for climate-related disasters.

HAPPENING THIS WEEK-

#1- Abu Dhabi Crown Prince heads to Singapore tomorrow: Sheikh Khaled bin Mohamed bin Zayed Al Nahyan is set to visit Singapore tomorrow, where he is scheduled to meet with the country’s Prime Minister Lawrence Wong, Wam reports. He is also set to explore potential cooperation with senior officials and executives from the tech, AI, and urban planning sectors.

#2- OneConnect Dubai 2024 will take place tomorrow at the Marriott Resort Palm Jumeirah in Dubai, according to a press release. The event will bring together global cybersecurity experts and local thought leaders, featuring keynote sessions by industry leaders, a CISO panel discussion, and discussions with professionals from the UAE and the wider Middle East.

#3- The Sharjah International Conference in Biotechnology (SICBiotech) will take place tomorrow and after at the University of Sharjah. The event will bring together leading scientists in biotechnology.

#4- The Healthcare Future Summit is set to take place at the Dubai World Trade Center tomorrow and after, according to a statement. The summit will discuss advances in disease management, AI integration to streamline vaccine distribution, and resource management, with a focus on vaccine policies in the GCC.

#5- Dubai will host the World Cities Cultural Summit from 30 October to 1 November. The summit probes how cities can create a fostering environment for artists and entrepreneurs, while addressing global challenges, such as the climate crisis and AI.

#6- The Connected Construction Conference will kick off on 30 October at the Museum of the Future in Dubai, welcoming leaders, decision-makers, and BIM specialists from the construction industry to showcase new technological advancements and address challenges facing the sector.

#7- The Binance Blockchain Week will take place on 30 and 31 October in Dubai. The conference will welcome traders, builders, founders, institutional investors, regulators, global officials, and innovators to discuss the future of blockchain and Web3 technology.

THE BIG STORY ABROAD-

Election news, escalations between Iran and Israel, and chatter around a potential ceasefire in Gaza continue to push business news further to the bottom of the foreign press’ front pages.

Japan’s ruling coalition lost its parliamentary majority for the first time since 2009 in snap elections yesterday, according to public broadcaster NHK’s projections, casting the country into political uncertainty. While the Liberal Democratic Party lost seats, Japan’s largest opposition party — the Constitutional Democratic Party — made big gains.

Market analysts are expecting the JPY and the Nikkei to suffer from an expected uncertainty in the legislative process of the country, Semafor said. The JPY has already weakened to its lowest level in almost three months following the news, Bloomberg reports. The Nikkei, however, has yet to show signs of faltering, rising 1% in early trade this morning, while the Topix is also up.

Israeli and Iranian officials are making their thoughts known on the impact of Israel’s strikes on Iran on Saturday, with Israeli Prime Minister Benjamin Netanyahu claiming the attack “severely [harmed] its defense capabilities and its ability to produce missiles that would be launched at us,” after Israeli officials initially kept quiet on the details of the strike, Bloomberg reports. Iran’s supreme leader, Ali Khamenei, on the other hand, said the strike must “neither be downplayed nor exaggerated,” BBC reported. The UAE condemned the attack in a Foreign Affairs Ministry statement, expressing “deep concern” over the escalation and emphasizing the need for a diplomatic resolution.

What about that ceasefire in Gaza? Egypt’s President Abdel Fattah El Sisi said (watch, runtime: 21:55) yesterday that Egypt has proposed an initial two-day ceasefire in Gaza to exchange Israeli detainees of Hamas for Palestinian prisoners. The temporary ceasefire would then see permanent ceasefire talks resume within 10 days, El Sisi added.

It’s unclear if Israel and Hamas are on board: Unnamed sources told Al Arabiya that both sides signaled it will commit to the new accord, though Israeli reports claim Israeli Prime Minister Benjamin Netanyahu is still set on continuing its invasion and strikes on northern Gaza during ceasefire negotiations, going against one of Hamas’ key conditions.

The situation on the ground remains dire: El Sisi’s announcement came as Israeli strikes killed 75 Palestinians across Gaza, with the UN describing the situation in northern Gaza as “unbearable.”

***

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?

***

CIRCLE YOUR CALENDAR-

Adipec will take place between 4-7 November at Adnec center Abu Dhabi. The event will bring together the global energy industry to examine the roles of AI and finance in advancing the energy transition. The event will feature three new conferences that include perspectives from finance, technology, youth, and the Global South.

Gulfood Manufacturing will take place between 5-7 November at the Dubai World Trade Center. The event will showcase trends and solutions in global food manufacturing, with more than 2.5k companies set to attend.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

Leave a comment

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