Good morning, friends. We’re nearing the end of another busy week of IPO, M&A and debt news. Today’s issue is a mixed bag: We have a new forecast from Moody’s for economic growth next year, our friends at Mashreq inking Qatar’s first bilateral s-linked facility, and GCC financial services authorities greenlighting a fund passporting framework. Plus: A lot more investment news and M&A updates.

BUT FIRST- The DFM rose 0.6% to hit its highest levels in a decade, helped by share price increases from Emirates NBD and the DFM operator.

WEATHER- It’s another warm and sunny day, with temperatures peaking at 31°C in Dubai before cooling to 24°C overnight. In Abu Dhabi, the mercury peaks at 28°C, with an overnight low of 26°C.

Another USD 1 tn milestone: Dubai International Financial Center (DIFC) is now hosting more than 920 family-related firms with over USD 1.2 tn in assets under management, Bloomberg reports, citing DIFC Authority CEO Arif Amiri. “[DIFC is] now one of the top ten locations in the world for hedge funds activity. And based on the current trajectory, we are on track to become one of the top five in the coming years,” Amiri said at the Future of Finance forum in Dubai.

There’s been a lot of tns lately: UAE-listed stocks also hit the USD 1 tn milestone earlier this week, fueled by the IPO boom and IHC’s recent share buyback program.

WATCH THIS SPACE-

#1- UK Prime Minister Keir Starmer reportedly plans to visit the UAE and Saudi Arabia next month as the country looks to draw GBP bns of fresh investment from Gulf sovereign wealth funds to boost the UK Labor government’s growth agenda, the Financial Times reports, citing people familiar with the matter. Starmer could vie for investments for energy and infrastructure, including projects like the Sizewell C nuclear power plant in eastern England.

REMEMBER – The UK is close to inking a trade agreement with the Gulf Cooperation Council (GCC) “as early as this year” and is also considering individual trade agreements with specific GCC countries, Bloomberg reported earlier this month. The UK and GCC have held seven rounds of trade talks since 2022, with UK Foreign Secretary David Lammy visiting Abu Dhabi in September and UK Business and Trade Secretary Jonathan Reynolds visiting Dubai this month to push negotiations forward.

UAE-UK relations have been shaky, with Abu Dhabi-backed RedBird IMI formally withdrawing its bid to acquire UK papers the Telegraph and Spectator earlier in May, following months of opposition from the UK government. The UAE had previously pledged to invest GBP 10 bn in the UK, which the FT says has already been invested in sectors including life sciences, renewables, and tech.

#2- Abu Dhabi + Singapore sovereign wealth funds eye stake in Pye-Barker Fire & Safety: The Abu Dhabi Investment Authority (Adia) and Singapore’s GIC are in advanced talks to acquire a minority stake in US-based Pye-Barker Fire and Safety in a transaction that could potentially value the fire protection services firm at USD 6 bn (including debt), Bloomberg reports, citing sources it says are familiar with the matter. The two sovereign wealth funds will purchase the stake from Leonard Green and Partners and Altas Partners.

ALSO FROM ADIA- The sovereign wealth fund and private equity firms EQT and Auba Investment are selling a 6.7% stake in Swiss skincare company Galderma in a bid to raise CHF 1.3 bn (USD 1.5 bn), Bloomberg reports, citing a filing it has seen. The sale has reportedly been oversubscribed.

This marks the third sell-off in as many months, with Adia and co-investors’ sale of a USD 1.2 bn stake in September, and a 10% stake t to France’s L’Oréal in August in a transaction valued at USD 1.85 bn. The shareholders held a combined 77.21% of the company before the selldown started.

Background: Adia, Swedish private equity company EQT, and Singapore’s GIC acquired Galderma — formerly Nestlé Skin Health — for CHF 10.2 bn (c. USD 11.9 bn) from Nestlé in 2019. Initially established as a 50/50 JV between L’Oréal and Nestlé, L’Oréal sold off its 50% ownership stake in Galderma to Nestlé in 2014. The company listed on the SIX back in March of this year.

#3- US private equity firm Andalusian Private Capital plans to open its first offshore office in the UAE by early 2025, Chief Investment Officer Aaron Kless told the National. The UAE office will be either located at the ADGM or the Dubai International Finance Center (DIFC). The middle market lender, which manages USD 2 bn in commitments, will use its UAE office to serve clients across the Mena region.

The company has already held talks with investors in Abu Dhabi to explore possible partnerships and capital agreements, aiming to attract long-term contracts from three to ten years.

#4- More direct lenders are planning a UAE expansion: US private credit manager Golub Capital aims to set up a UAE office to tap regional investors for its private credit strategies, CEO Lawrence Golub told the National. The lender focuses on sectors such as software and technology, financial services, restaurant and retail, and health care.

#5- Eight small airports at Al Maktoum Int’l Airport? Dubai Airports’ CEO Paul Griffiths is looking to turn the new Al Maktoum International Airport into eight small airports that only share the runways to create a compact check-in experience, Paul Griffiths was quoted as saying by Khaleej Times.

#6- The UAE will finance Albania’s new nationwide street surveillance system, Albanian prime minister Edi Rama said at a press conference, Southeast European newswire SeeNews reports. Implemented in phases over 20 months, the project will be backed by the Abu Dhabi Fund for Development, although the financing details were not disclosed.

DATA POINTS-

Dubai International Chamber attracted 157 companies to Dubai in 9M 2024, marking a 68.8% y-o-y increase, state news agency Wam reports. This includes 39 multinational corporations and 118 SMEs. The chamber also supported the expansion of 75 local companies into new markets abroad during the period, up 241% y-o-y.

HAPPENING TODAY-

#1- Cleveland Clinic’s first Annual Nursing Conference wraps up today after its launch at the Cleveland Clinic in Abu Dhabi on Wednesday. The conference brings together registered nurses, midwives, and clinical specialists for networking and skill expansion.

#2- Ras Al Khaimah Ruler Sheikh Saud bin Saqr Al Qasimi is currently on a four-day visit to Guangdong Province, China, which commenced yesterday, Wam reports. During the visit, the RAK Ruler will sign a cooperation agreement with Guangdong, focusing on the digital economy, scientific and technological innovation, advanced manufacturing, smart cities, and culture and tourism. Al Qasimi will also hold business meetings.

#3- The International Program for Civil Aviation Leaders is on its final day today in Dubai, bringing together over 20 civil aviation ministers, as well as heads of civil aviation authorities from Arab countries to ramp up cooperation within the sector, state news agency Wam reports.

#4- Dubai Future Solutions–Prototypes for Humanity is on its third and final day today at Emirates Towers in Dubai. The event will facilitate collaboration among graduates and professors from over 800 universities, focusing on innovation in sectors such as agriculture, healthcare, energy, civil society, mobility, water, and the environment.

#5-Air Expo is on its final day at the Adnec in Abu Dhabi. The event will gather over 20k aviation professionals and will feature keynote speakers and panel discussions from industry leaders focusing on advanced air mobility, among other topics in the aviation sector.

#6- The Adia Lab Symposium 2024 is also on its final day at the ADGM. The event will feature discussions by notable researchers and scientists on the topics of climate change and AI implementations.

#7- Xpanse 2024 kicked off yesterday at the Adnec Center in Abu Dhabi, and runs until tomorrow, Wam reports. The event will focus on artificial intelligence, machine learning, genomics, quantum computing, neuromorphic computing, and 6G connectivity. Some 3k decision-makers, technology innovators, Nobel Prize winners, industry executives, CEOs, government officials, and scientists are expected to attend.

THE BIG STORY ABROAD-

Two stories are capturing the imagination of the international business press this morning: The indictment of Adani Group’s Gautam Adani on charges of bribery and fraud, and Nvidia’s most recent financials.

US prosecutors formally charged Adani — one of the richest people in the world — and seven others with being involved in a “massive” bribery and fraud scheme. The defendants allegedly planned to pay USD 265 mn in bribes to officials in the Indian government to facilitate being awarded solar energy supply contracts, including for India’s largest solar power plant. The contracts were forecasted to reel in USD 2 bn in net income over two decades.

The defendants are also being charged with raising capital “on the basis of false and misleading statements,” including USD 2 bn in syndicated loans “comprised of international financial institutions and US-based investors” and another USD 1 bn from bond offerings that were also “marketed and sold to investors in the US.” (Reuters | Financial Times | CNBC | Bloomberg)

MEANWHILE- Nvidia reported lower than expected revenue growth in its 3Q 2024-25 earnings results, with the chipmaker saying its revenues grew 94% y-o-y and 17% q-o-q. The revenue figure came in at a record high of USD 35.1 bn. However, the company’s sales forecast for the following quarter came in below projections, with the firm saying that its Blackwell AI chips are seeing “very strong” demand but costs are expected to eat away at margins. (Bloomberg | CNBC | Reuters | Financial Times)

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CIRCLE YOUR CALENDAR-

The Sharjah International Tourism and Travel Forum will kick off Monday, 25 November at the Expo Center in Sharjah. The forum features industry leaders and innovators, panel discussions and workshops on advancements in the tourism sector. Key topics include digital platforms, data-driven decision-making, health protocols, and sustainable practices.

Forbes Middle East Medical Tourism & Wellness Summit will take place on 23-24 November at Jumeirah Beach Hotel in Dubai. The summit will gather leading health and wellness professionals, innovators, and industry leaders to discuss the Middle East’s rise as a hub for healthcare and wellness solutions.

Open Source AI Summit will take place on 26-27 November at The St. Regis Saadiyat Island Resort in Abu Dhabi. The event will feature discussions on prospects for open-source artificial intelligence, as well as challenges, ethical considerations, governance, and international cooperation.

Dubai to host new global mixed martial arts championship: Dubai’s Sports Council and Department of Economy and Tourism inked an agreement with the Professional Fighters League to launch a new international mixed martial arts championship, dubbed Road to Dubai, Wam reports. The global series will feature matches in multiple cities worldwide, with the season finale to be hosted on 25 January 2025 at Dubai’s Coca-Cola Arena.

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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