Good morning, friends. We have a packed issue for you this morning, with a fresh batch of earnings, a big potential M&A from Cyvn Holding, who’s eyeing an acquisition of McLaren, Dubai’s new budget for the next three years, and plans for an e-invoicing system. Let’s dive in.

WEATHER- The mercury peaks at 34°C in Dubai today, before cooling to an overnight low of 27°C. Over in Abu Dhabi, expect a high of 30°C and a low of 28°C.

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WATCH THIS SPACE-

#1- Covestro’s management signaled it will likely recommend Adnoc’s EUR 14.7 bn (c. USD 16.3 bn) takeover bid to the company’s shareholders, subject to a final review of the offer, according to a statement from the German chemicals manufacturer. An official response to the acquisition bid will be issued “in the next two weeks,” Reuters reports.

In context: The acceptance period for Adnoc’s voluntary public takeover offer wraps up on 27 November. Adnoc has been in ongoing negotiations for the takeover, which is set to be the biggest acquisition from a Middle Eastern buyer in Europe in 16 years, for more than a year.

Also- Covestro turned profitable in 3Q 2024 as it logged EUR 33 mn, compared to EUR 31 mn in losses in the same period last year. The company generated EUR 3.6 bn in sales during the quarter, marginally up y-o-y from EUR 3.57 bn. In 9M 2024, Covestro saw its net losses jump 572.7% y-o-y to EUR 74 mn amid what it says was a challenging market environment.

#2- The UAE’s trade agreement with Vietnam is projected to add USD 8 bn to the local economy by 2032, Foreign Trade Minister Thani Al Zeyoudi told Wam (watch, runtime: 03:29). Vietnam is the UAE’s largest non-oil trading partner in the Association of Southeast Asian Nations (ASEAN), with non-oil trade between both countries growing to USD 6.1 bn in 1H 2024, up 8.7% y-o-y.

The agreement will reduce tariffs on customs between the countries by 90%, Al Zeyoudi said, while phasing out tariffs on 99% of Vietnam’s exports, Reuters reports, citing a Vietnamese Trade Ministry statement. Vietnam also pledged to remove tariffs on 98.5% of the UAE’s exports.

ICYMI- The UAE and Vietnam and the UAE inked a comprehensive partnership agreement earlier this week that will see both countries cooperate across several sectors and unlock USD 20 bn in trade. The agreement is expected to give a boost to sectors like food production, textiles, machinery, metal industries, logistics, and infrastructure, Al Zeyoudi told the news agency.

#3- UK developer Leos Developments launched a USD 7 bn investment fund in the UAE and is currently relocating its global headquarters to Dubai, CEO Rui Liu told Arabian Business. This fund will back the launch of 10 UAE-based projects in 2025. A portion of the fund is currently being used to develop projects in Meydan and Dubai Silicon Oasis, the company’s Chief Operating Officer Jake Jacobs said.

Remember- Leos Developments launched a AED 1.75 bn luxury residential development in Dubai’s Meydan called Knightsbridge last month.

DATA POINTS-

#1- Sharjah saw the number of issued and renewed licenses go up 16% in 3Q 2024 to 17.9k, the Sharjah Economic Development Department said in an X post. This included 15.8k renewed licenses and 2.1k new ones. Commercial licenses accounted for 11.3k of all issued and renewed licenses, professional licenses comprised 5.4k, and industrial licenses accounted for 873.

#2- Dubai saw a 45% increase in the number of new real estate investors in 9M 2024, adding 132k transactions worth AED 291 bn, according to media reports (here and here). Foreign investors accounted for the lion’s share of new investors in the sector with 106k transactions valued at AED 235 bn.

Dubai saw a 35% y-o-y increase in real estate transactions in 9M 2024 to 163k, with their value up 23% to AED 544 bn, Director-General of Dubai Land Department Marwan Ahmed bin Ghalita was quoted as saying by Al Bayan. Meanwhile, real estate sales rose 30% y-o-y to AED 376 bn.

#3- UAE issuers raised USD 11.7 bn through 28 issuances in 3Q 2024, leading the GCC bonds and sukuk market with a 42% market share, according to the Kuwait Financial Center (Markaz). On a nine-month basis, UAE entities raised USD 32.1 bn through 88 issuances, coming in second place after Saudi Arabia’s USD 47.8 bn issuances.

REMEMBER- The UAE was among the leading countries in terms of sukuk issuances in 1H 2024, amid increased demand and a shift towards expanding the non-oil sector.

HAPPENING TODAY-

#1- The Sharjah International Conference in Biotechnology (SICBiotech) is on its second day at the University of Sharjah, before it wraps tomorrow. The event will bring together leading scientists in biotechnology.

#2- TheHealthcare Future Summit is also on its second day at the Dubai World Trade Center. 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, according to a statement.

#3- Dubai will host the World Cities Cultural Summit from today through to Friday. 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.

#4- The Connected Construction Conference will kick off today 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.

#5- The Binance Blockchain Week will take place today and tomorrow 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.

#6- The Annual Islamic Finance Conference kicks off today at the DIFC Atrium in Dubai. The conference will host experts from the Islamic financial services sector and senior analysts to discuss the industry’s global outlook and growth potential.

#7- The two-day International Geotechnical Innovation Conference kicks off today at Le Meridien Dubai Hotel & Conference Center in Dubai. The event features discussions on advanced ground engineering, innovative geotechnical solutions, and an exhibition showcasing the latest technologies in geotechnical engineering.

THE BIG STORY ABROAD-

It’s another mixed day in the foreign press dominated by US elections news as Kamala Harris deliver her closing remarks ahead of elections, more strikes in Gaza and a worsening humanitarian crisis, and a smattering of business news courtesy of earnings season.

#1- Less than one week from the US elections, Harris doubled down on her fight against The Donald with closing remarks at the Ellipse, where Trump had rallied his supporters on 6 January to fight against his loss in the 2020 elections, resulting in the US Capitol riot. She said Trump was “unstable, obsessed with revenge, consumed with grievance and out for unchecked power,” a day after Trump’s rally in Madison Square Garden hit a lot of nerves due to racist remarks from his allies. (Reuters | CBS | Semafor | The Guardian)

#2- At least 93 Palestinians — at least 20 of whom were children — were killed in northern Gaza yesterday in an airstrike on a residential building, an attack which the US called “horrifying,” Reuters reports. The US envoy to the United Nations also said Israel is not tackling the “catastrophic humanitarian crisis” in Gaza, as it faces a looming deadline imposed on 13 October to facilitate aid into Gaza or potentially lose US weapons support, the Guardian reports separately.

ALSO GETTING ATTENTION- Hezbollah appointed a new successor to its slain leader Hassan Nasrallah, Naim Qasem, in a move showing “continuity” and “resilience,” experts say. (Bloomberg)

#3- A handful of earnings are getting attention:

  • Google owner Alphabet reported a 34% jump in net income on the back of strong performance from its cloud division — results that help appease investors’ concerns over the payoff of Big Tech’s investments in AI. (FT | CNBC | Reuters)
  • Visa also saw its net income jump more than expected in a positive indication of consumer spending, beating market estimates. (Reuters | CNBC | FT)

ALSO- For the fellow iSheep, have you seen Apple’s new releases? The tech giant released its new Mac Mini — the tiniest desktop machine in its history — as well as the M4 iMac, and rolled out its first Apple Intelligence software capabilities across iOS, iPadOS, and macOS a day earlier.

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