Good morning, lovely people, and welcome to the start of this abridged workweek. We hope you had a relaxing long weekend and are ready to dive back into work for the final month of the year.

WEATHER- It’s another cool and breezy day in Dubai, with a high of 28°C and a low of 20°C. It’s even cooler in Abu Dhabi, where temperatures will peak at 25°C and reach a low of 20°C overnight.

WATCH THIS SPACE-

#1- Covestro shareholders greenlight Adnoc takeover: Adnoc’s USD 16.3 bn acquisition of German chemicals company Covestro has exceeded the minimum shareholder acceptance threshold, reaching around 70% as of 27 November, Reuters reports, citing a statement from Adnoc. The acceptance period for the bid ended last week, with the additional acceptance period starting yesterday and lasting until 16 December.

Remember: Covestro’s management already gave the offer a nod earlier this month, with the closing of the acquisition expected sometime in 2H 2025. 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.

#2- Branded residences in Dubai are expected to see a 10-20% uptick in value amid growing demand, real estate industry insiders told Arabian Business, with some anticipating up to 25% hikes, depending on the location and offered services. Branded residences are currently estimated at an average price of USD 1.8k (AED 6.5k) per sq ft.

Rental incomes from branded residences are also projected to see an annual growth rate of 12% by 2026. Global Branded Residences expects to see 120 branded residence projects in the UAE by 2028.

#3- The UAE and the US have discussed lifting sanctions on Syrian President Bashar Al Assad if he ends his cooperation with Iran and cuts off weapon routes to Hezbollah, unnamed sources told Reuters. These discussions came ahead of the expiry of the US’ sanctions on Syrian business sectors on 20 December (and before anti-Assad rebels launched their offensive on Aleppo this week). The UAE has been eyeing business ties with Syria, pending the end of US sanctions and Damascus’ bond with Iran, the sources mentioned.

#4- One step closer to a common Arab electricity market: The Arab League has inked key agreements for the mechanisms and framework for a common Arab electricity market during the Arab Ministerial Council for Electricity held in Egypt’s New Administrative Capital, Wam reports.

The unified market aims to connect the energy systems of 22 Arab countries by 2038, with phased implementation starting 2025, Arab League Energy Director Jamila Matar previously said. The market is expected to operate on a commercial mechanism, enabling energy exchange by utilizing surplus electricity from member states. The initiative, Matar added, could draw on the Gulf electricity interconnection project as a model for success.

The countries involved: The countries that signed the agreement include the UAE, Saudi Arabia, Kuwait, Palestine, Syria, Egypt, Qatar, Libya, Sudan, Yemen, Morocco, and Jordan.

#5- Ayana Holding’s real estate development arm Amaal plans to develop projects worth AED 5 bn within the next three to five years, Chairman Abdullah Bin Lahij told Al Khaleej. The company is exploring expansion into Abu Dhabi and Ras Al Khaimah.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- You’ll be paying less at the pump this month: The Fuel Price Committee reduced December fuel prices by nearly 5%, except for diesel, according to an Emirates General Petroleum Company statement posted on X. The reductions bring fuel prices to their lowest so far this year, Khaleej Times reports.

The breakdown per liter:

  • Super 98: AED 2.61;
  • Special 95: AED 2.50;
  • E-plus 91: AED 2.43;
  • Diesel, however, rose to AED 2.68, up from AED 2.67 in November.

#2- FTA reminds businesses of corporate tax dues: The Federal Tax Authority urged businesses to file their tax returns and pay their dues within the specified legal timeframes to avoid administrative penalties, Wam reports. The deadline was previously extended to 31 December 2024 for tax periods ending on or before 29 February 2024.

DATA POINTS-

#1- Global Food Week sees the signing of AED 6.2 bn worth of agreements: Abu Dhabi’s Global Food Week saw AED 6.2 bn in agreements signed over three days, a 59% increase y-o-y, Wam reports. The event featured over 1.6k meetings between buyers and exhibitors globally, potentially leading to an additional AED 1.7 bn in agreements. Several memorandums of understanding (MoUs) were signed in the food and beverage sector.

#2- Dubai led the Middle East in Mercer’s Quality of Living City Ranking, with Abu Dhabi following closely behind. Globally, the two cities secured the 83rd and 85th spots. The ranking assesses living standards, infrastructure, housing, recreation, socio-cultural environment, purchasing conventions, travel, traffic, air quality, and access to education.

#3- Construction contracts in the UAE amounted to a total of AED 325.9 bn in 9M 2024, Al Etihad reports, citing a BNC Network report. The country accounted for 42.9% of the total contracts awarded in the GCC region, which reached USD 207.7 bn during the period. The contracts were awarded across five sectors: industrial facilities, oil and gas, transportation, real estate, and utilities.

HAPPENING TODAY-

The WORLDEF Dubai 2024 forum will take place on 4-5 December at Dubai CommerCity. The event will gather over 5k representatives from leading organizations in digital commerce.

THE BIG STORY ABROAD-

The global press started the week speculating about the possible fall of the government in Syria, then France, and now South Korea, with President Yoon Suk Yeol’s unexpected imposition of martial law quickly rescinded after a parliamentary vote — including dissent from his own conservative People Power Party — and outrage across the political spectrum. The move, criticized as an authoritarian overreach, has sent ripples through financial markets, with investor confidence shaken and the KRW initially weakening against the greenback before climbing back after the end of martial law. (Financial Times | Wall Street Journal | Bloomberg | Reuters | Associated Press | New York Times | Guardian)

The expected collapse of French Prime Minister Michel Barnier’s government is also continuing to rank high on the digital front pages, as the country’s lawmakers get ready for a no-confidence vote later today. As in South Korea, the political uncertainty has rattled financial markets, with bond investors punishing France’s sovereign debt. President Macron appears to be making use of the plentiful sand during his trip to Riyadh to put his head in, telling reporters that he’s confident the government can survive the vote. (Financial Times | Bloomberg | Reuters | Guardian)

While over in trade war news, China has banned exports to the US of key minerals and metals — including gallium, germanium, and antimony — all used in semiconductors and military equipment, marking a sharp escalation in the ongoing US-China tech war. (Financial Times | Reuters | Associated Press | New York Times)

And in market news, some are wondering if the AI hype could soon be over, with Vanguard’s Joe Davis warning that investors have overestimated the near-term potential of artificial intelligence, raising the likelihood of a market correction. (Financial Times)

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MARKET WATCH-

All eyes on Opec+ as production decision nears: Opec+ is likely to opt for extending its oil output cuts until the end of 1Q 2025 at its meeting tomorrow in a bid to bolster oil prices, Reuters reports, citing four anonymous Opec+ sources. The move would see the group postponing plans to phase out oil supply for a third time amid a slowdown in global demand and a rise in supply outside the cartel.

Things could get bad for oil markets once oil cuts end, experts say: One analyst sees oil prices going down to USD 30-40 a barrel next year if Opec+ reversed course on the existing cuts, he told CNBC.

CIRCLE YOUR CALENDAR-

Abu Dhabi Finance Week kicks off on 9 December and lasts through 12 December. The event will feature a patchwork of forums exploring capital markets, investments, Islamic finance, sustainability, and more, with more than 600 speakers and 20k guests set to attend. Speakers include Trade Minister Thani bin Ahmed Al Zeyoud, founder and CIO of Bridgewater Associates Ray Dalio, UBS CEO Sergio Ermotti, and Jihad Azour, director for Middle East and Central Asia Department of International Monetary Fund (IMF). You can find the full agenda for the week here.

The International Desalination and Water Reuse World Congress will take place between 8-12 December at the Adnec Center in Abu Dhabi. The event will feature discussions on innovations in water desalination and reuse technologies, decarbonization efforts, integrated water resources management, and best practices for rationalizing water consumption.

The European Arab Medical Congress will take place on 11-12 December at the headquarters of Zayed Higher Organisation for People of Determination in Abu Dhabi. Hosted by the Emirates Scholar Center for Research and Studies, the event will host 50 speakers and feature 40 scientific sessions covering the latest innovations in medicine and medical technology.

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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