Good morning, friends. It’s a big day over in the US of A as polls close, with things slightly calmer here at home as Adipec enters its third day. But we have PMI data on the UAE and Dubai in October, as well as an ambitious new national investment strategy targeting AED 2.2 tn in FDI by 2031. There’s also a slew of energy news out of Adipec. Let’s dive right in.

WEATHER- Expect some more clouds and fog today, with Dubai looking at a high of 35°C and a low of 28°C. Over in Abu Dhabi, temperatures will peak at 30°C and hit a low of 28°C.

WATCH THIS SPACE-

#1- The GCC IPO market saw a rise in proceeds in 3Q 2024, despite having fewer IPOs compared y-o-y, according to PwC Middle East’s IPO Watch (pdf). The increase was led by NMDC Energy’s listing, which raised AED 3.22 bn and was 31x oversubscribed, marking the UAE’s biggest listing so far this year. The other three listings in the regional markets this quarter took place on Saudi Arabia’s parallel market Nomu.

The aftermarket performance for this year’s IPOs has remained robust, with most of the 10 biggest listings trading above their initial offering prices.

The outlook for the GCC IPO market is positive, according to PwC, which cites a healthy pipeline for IPOs in the region from companies from a diverse range of sectors

The bond market recorded USD 4.4 bn worth of issuances in 3Q, up 30% y-o-y, according to PwC. Meanwhile, some USD 5.2 bn in Sukuk were issued, with 88% listed on Nasdaq Dubai and the Qatar Stock Exchange. GCC governments accounted for nearly 65% of sukuk and bond issuances.

#2- MAF shuts down Carrefour-branded stores in Jordan + launches new supermarket chain: Dubai-based conglomerate Majid Al Futtaim (MAF) shut down its Carrefour stores in Jordan, replacing them with a new Jordanian retail chain, according to a statement. The new chain — Hypermax — will see the first store inaugurated today at City Mall in Amman. The store will be the first of 34 that the brand plans to roll out across the Kingdom. Hypermax will focus on providing locally sourced food products and household essentials.

The rationale: While the company did not reveal the reason behind the closure, the move follows a campaign by the Boycott, Divestment, and Sanctions (BDS) movement in Jordan targeting the retailer for its position on the current conflict in Gaza. The company operates 375 Carrefour stores across 15 countries and owns the rights to operate the brand in over 30 countries in the Middle East, Africa and Asia. Bloomberg also had the story.

#3- Mubadala Energy and PLN eye gas power project in South Andaman: Mubadala Energy and Indonesia’s Perusahaan Listrik Negara (PLN) inked an agreement to explore power generation from the South Andaman blocks to address Indonesia’s energy demand and for infrastructure development, according to a press release. The entities will conduct a joint study to examine potential gas processing and transportation.

This follows Mubadala’s discovery of over 8 tn cubic feet of natural gas at the Layaran and Tangkulo fields in North Sumatra in South Andaman, offshore North Sumatra, Indonesia, earlier in May, marking the company’s second deepwater find in South Andaman, following one at the Layaran-1 well in December of last year. The company wrapped up its drilling campaign in South Andaman in September.

Umm Al Qaiwain is stepping up its logistics game: Umm Al Quwain Crown Prince Sheikh Rashid bin Saud bin Rashid Al Mu’alla announced the establishment of a Logistics City and a Cargo Airport during the UAE Government Annual Meetings 2024, Wam reports. .

DATA POINTS-

#1- UAE banks’ total capital and deposits rose by 10.5% y-o-y to reach an all-time high of AED 502.6 bn in July 2024, according to a Central Bank of the UAE’s (CBUAE) statement (pdf). Meanwhile, total investments by banks increased by 19.3% y-o-y to AED 691.2 bn.

#2- The Supreme Committee for Urban Planning allocated over 17.4k residential land plots to citizens since the launch of Dubai 2040 Urban Master Plan in March 2021, Wam reports.

#3- Bond and sukuk issuances in the UAE reached USD 294.4 bn in 3Q 2024, up 13.1% y-o-y, Fitch Ratings’ Managing Director and Global Head of Islamic Finance Bashar Al Natoor told Wam. Sukuk comprised 20% of total issuances — making the UAE the world’s fourth largest sukuk issuer, with a 6.6% share of the global sukuk market. Regionally, the UAE ranks second in the GCC for total outstanding sukuk with a 16.2% share.

AED-denominated issuances made up 21.1% of total issuances by 1H 2024, bolstered by the government’s AED-focused monetary policy, Al Natoor explained. The UAE also leads in USD-denominated debt issuance among emerging markets (excluding China), trailing only Saudi Arabia and Brazil.

The debt market is forecast to surpass USD 300 bn by the end of 2024, Al Natoor said.

PSAs-

#1- Sewage fees are getting more expensive: Dubai Municipality greenlit a new sewage fee structure — its first update in 10 years — to keep pace with a rising population and encourage water conservation, according to a Dubai Media Office statement. The new tariff system will be rolled out gradually over the next three years, with the structure outlined below:

  • 1.5 fils per gallon starting in 2025;
  • 2 fils per gallon starting in 2026;
  • 2.8 fils per gallon starting in 2027.

The new tariff still sits below the global average, Dubai authorities said.

#2- Sharjah authorities approved a budget of over AED 75 mn to cancel citizen debt, according to a statement . The approved amount is designated for the 27th batch of payments, aimed at settling the debts of 158 individuals, including those convicted in financial cases and deceased insolvent. This latest batch takes the total payouts to AED 1.2 bn.

HAPPENING TODAY-

#1- LuLu Retail will set the final price for its IPO today, after boosting the size of the offering to 30% amid heightened demand that saw order books fully subscribed within the first hour of opening. Shares will start trading on 14 November.

#2- Adipec is on its third day today and runs through to tomorrow at Adnec Center in Abu Dhabi. The event — the biggest oil and gas forum in the world — brings together over 40 ministers and over 200 C-suite executives and technology leaders from the Middle East, Asia, Africa, Europe, and the Americas, focusing on innovation and partnerships to advance the energy transition.

#3- The 2024 UAE Government Annual Meetings are on their final today in Abu Dhabi, chaired by Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum, according to the Dubai Media Office. The meetings bring together over 500 dignitaries, including UAE rulers, crown princes, and government officials to discuss means for enhancing the country’s government performance and competitiveness. The meetings wrap tomorrow.

This year’s agenda features new organizational priorities and frameworks, with national retreats focusing on identity, family, and AI, and panel sessions to review national priorities and strategies for economy and investment, AI, education, sports, family, and community empowerment. Dedicated sessions for young government leaders are also on the roster, alongside exclusive local government meetings for Ajman, Umm Al Quwain, and Ras Al Khaimah.

#4- Gulfood Manufacturing is on its second day today and runs through to Thursday 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.

#5- GulfHost is also on its second day at the Dubai World Trade Center and run through to Thursday. The event will feature over 350 exhibitors showcasing innovations in hospitality and foodservice equipment, along with networking opportunities for more than 25k industry professionals.

#6- Design Next exhibition is on its second day at the Dubai Design District as part of Dubai Design Week and wraps up Sunday, 10 November. The event showcases sustainable design solutions and features discussions by industry leaders.

#7- The WHO’s latest Emergency Medical Teams (EMT) Global Meeting starts today at Conrad Abu Dhabi Etihad Towers, marking the first time the event is hosted in the Middle East. Organized in partnership with Abu Dhabi’s Department of Health, the meeting aims to advance global emergency response and rapid deployment capabilities. It will wrap this Thursday, 7 November.

#8- Dubai is hosting the World Finance Forum 2024 today at Sofitel Dubai The Palm. The event will welcome CFOs and finance directors from leading companies to discuss emerging trends, growth prospects, and potential challenges in the financial landscape.

#9- The UAE BioTech Symposium is on its final day in Masdar City. The event discusses the latest developments in biotechnology, with participants including researchers, entrepreneurs, government entities, and strategic investors.

THE BIG STORY ABROAD-

No surprises here: Election Day in the US is fully dominating news coverage in the international press this morning, as polls close and the ballot counting continues. The counting is likely to take several days, particularly as this year’s elections are closely contested and several states are “too close to call” and likely to hinge on the results from the country’s seven swing states — Georgia, North Carolina, Pennsylvania, Arizona, Michigan, Nevada, and Wisconsin.

What we know so far: Donald Trump is so far in the lead, with victories in Texas and Florida — each of which have a large number of electoral votes — as well as a smattering of other states. Kamala Harris has secured a victory so far in Washington, D.C., Vermont, and Massachusetts, among others. Trump is looking likely to secure the overall vote, although Harris still has a path to victory if she manages to come out on top in Pennsylvania, Michigan, and Wisconsin. Meanwhile in the Senate, the Republican Party has so far gained a seat and is closing in on a majority.

You can check out live results from the Associated Press, Reuters, the New York Times, the Wall Street Journal. The Financial Times and Bloomberg also have coverage.

IN NON-ELECTION NEWS- Israeli Prime Minister Benjamin Netanyahu fired Defense Minister Yoav Gallant and appointed Israel Katz — who was foreign minister — in his stead. Gideon Saar is now Israel’s foreign minister in Katz’s place. Netanyahu’s decision to fire Gallant — a move he was reportedly considering for weeks — is due to the two disagreeing on critical issues, including Gallant supporting a ceasefire and hostage release agreement with Hamas in Gaza. The former defense minister was also pressing for an investigation into the country’s security failures in Hamas’ 7 October attack, and opposes a law that would allow ultra-Orthodox Jews to be exempt from mandatory military service. Reuters, the Financial Times, Axios, and Bloomberg have the story.

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