Good morning, friends. It’s the start of what we expect to be a business- and finance-heavy week, as thousands of finance professionals head to Abu Dhabi for Abu Dhabi Finance week.

Here’s what you’ve missed over the weekend: The non-oil business continued to expand in November; the IMF published its article IV consultation paper on the UAE, downgrading its growth forecast for 2024 but remaining upbeat on growth; and we now have a Family Ministry.

ALSO- We have an interesting read for you on our friends at Mashreq’s new Neo Corp platform, which it has started rolling out across the Gulf. We speak with the bank’s global head of transactional banking, Victor Pena, about the opportunities and challenges in the digitization of corporate banking, including trade finance, and what AI can add to the fold.

WEATHER- Dubai will see a high of 27°C today and an overnight low of 20°C. In Abu Dhabi, we have a high of 24°C, and an overnight low of 20°C.

WATCH THIS SPACE-

#1- Abu Dhabi edges closer to launching air taxi operations: US-based electric vertical takeoff and landing (eVTOL) aircraft manufacturer Archer Aviation signed an agreement to launch commercial air taxi operations in Abu Dhabi, according to an Abu Dhabi Media Office statement. This comes after the company signed a framework agreement with the Abu Dhabi Investment Office (Adio) for the operational enablement of air taxis in the country, and to locally manufacturer Archer’s aircraft and build vertiports in April.

Parties involved in the new agreement include Adio, Abu Dhabi Airports, Falcon Aviation Services, Etihad Aviation Training, the General Civil Aviation Authority, Global Air Navigation Services, Global Aerospace Logistics, and the Integrated Transport Center (Abu Dhabi Mobility).

IN OTHER SMART TRANSPORT NEWS- Uber added an autonomous driving option to its app in the UAE, part of a pilot run for the service which is slated for full commercial launch sometime in 2025, according to an Abu Dhabi Media Office statement. The service, launched under a partnership with WeRide, will initially be limited to designated areas, including Saadiyat Island, Yas Island, and routes to and from Zayed International Airport.

#2- Abu Dhabi sovereign wealth fund Mubadala has reached USD 330 bn in assets under management, Reuters quotes CEO Khaldoon Al Mubarak as saying during a summit on Friday, taking the total value of sovereign wealth funds’ assets under management to USD 13 tn for the first time ever. The fund is also focusing its efforts on Asia, in which Al Mubarak said it is currently “under-invested.”

ALSO- Mubadala plans to add an AI member to its investment committee starting next year, with the AI serving as a consultant to support decision-making on due diligence, analysis, and assessments, The National quotes Al Mubarak as saying. The AI member will offer a perspective on all committee decisions but will not be involved in the decision-making process itself.

#3- The US government greenlit the export of advanced AI chips to a Microsoft-run facility in the UAE, as a part of Microsoft’s partnership with Emirati AI firm G42, two sources familiar with the subject matter told Axios. The license requires Microsoft to prevent access to the facility by personnel from countries with US arms embargoes, or who are on the Bureau of Industry and Security (BIS) Entity List, including China, according to two sources familiar with the deal.

Background: G42 secured a USD 1.5 bn investment from Microsoft back in April that should see the firm receiving large-scale AI components. The UAE company started receiving AI chips from US chipmaker Nvidia in September after the US government approved the sale earlier this year.

REMEMBER- G42 had offloaded all its stakes in Chinese businesses in a bid to reportedly appease US partners.

PSAs-

#1- Dubai’s Roads and Transport Authority (RTA) inaugurated a three-lane bridge linking Sheikh Rashid Road to Infinity Bridge, according to a statement from the Dubai Media Office. A second bridge on Sheikh Rashid Road which will link Al Mina Intersection to Sheikh Rashid Road intersection with Sheikh Khalifa bin Zayed Street is scheduled to open in the first half of January.

This project is part of the fourth phase of the Al Shindagha Corridor Improvement Project, which involves the construction of three bridges totaling 3.1 km in length, with a combined capacity of 19.4k vehicles per hour. The phase — which will ultimately reduce travel time along the corridor from 104 minutes to just 16 minutes by 2030 — is now 71% complete.

#2- The Finance Ministry exempted SMEs, productive families, and freelancers providing services to federal entities from paying registration fees in the federal supplier registry for government entities, Al Khaleej reports.

Uh, Enterprise, what are productive families? Any household engaged in small-scale, income-generating activities, such as crafts or local goods production, often from home, is classified as a productive family.

DATA POINT-

The UAE held a 40-45% share of the Mena region’s business aviation market in 2024, increasing its portion from a 30-35% share in 2023, The National reports, citing a report by the Middle East and North Africa Business Aviation Association. Meanwhile, business jet movements at Al Maktoum International Airport are projected to exceed 18k in 2024, up from 16.7k in 2023.

HAPPENING TODAY-

#1- UK Prime Minister Keir Starmer reportedly landed in the UAE yesterday for talks with President Sheikh Mohamed bin Zayed Al Nahyan, as part of a wider Gulf trip that will also see him head to Saudi Arabia today, Bloomberg reports. The prime minister will also be working on accelerating progress on the UK-GCC trade agreement, which was said to potentially be signed as early as this year. The UK and GCC have held seven rounds of trade talks since 2022.

Starmer will also meet with representatives from Mubadala, aiming to establish investment and defense and security partnerships between the countries, The Telegraph reports, citing sources. He will likely look to drum up funding for projects including a nuclear power plant on the coast of Suffolk in the UK.

ICYMI- Speculation over the possibility that Starmer will loosen legislation that caps sovereign wealth funds’ ownership of UK newspapers has been roaming ahead of his visit, setting the stage for UAE-backed Redbird IMI to potentially hold onto the Telegraph’s ownership despite opposition from the government earlier this year.

#2- Finance professionals from the world over are in Abu Dhabi for Abu Dhabi Finance Week, which kicks off today 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.

#3- The International Desalination and Water Reuse World Congress kicked off yesterday and runs through to 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 BIG STORY ABROAD-

The collapse of Bashar Al Assad’s regime reverberates across global headlines this morning, ending over five decades of autocratic rule in Syria by members of the Assad family after a rapid opposition offensive captured several key cities, including the capital Damascus yesterday. Assad and his family have fled to Moscow, where they have been granted asylum, as per Russian state media. As celebrations erupt across Syria and the diaspora across the world, the country faces the daunting task of navigating a deeply fractured political and social landscape to rebuild from the ruins of its long civil war. (Wall Street Journal | Financial Times | Bloomberg | Reuters | Associated Press | New York Times | Washington Post | Guardian)

The power vacuum left by Assad’s departure has thrust Hayat Tahrir Al Sham and its leader Abu Mohammed Al Golani into the spotlight, with numerous outlets out with pieces trying to decipher the man and his motives. The group — once an al-Qaeda affiliate — and its leader now seek to portray themselves as a stabilizing force, issuing reassurances to Syria’s minorities and pledging to preserve state institutions after transition, but questions remain as to how much the group has changed and what role it will play in a post-Assad Syria. (Bloomberg | Reuters)

While over in the states, Trump threatened to jail some of his political opponents in his first post-election TV interview, telling NBC that Liz Cheney and others on the House committee looking into the 6 January attack on the Capitol “should go to jail.”

Fed Chair Jay Powell, however, seems off to be off the hook — for now at least — with Trump saying that Powell will not be pushed out before his term ends in May 2026. (Financial Times | New York Times | Washington Post)

And in business news, Omnicom and Interpublic are currently in merger talks to form the world’s largest advertising group in a USD 30 bn merger. (Financial Times)

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CIRCLE YOUR CALENDAR-

The International Mangrove Conservation and Restoration Conference is set for December 10-12 at Bab Al Qasr Hotel, Abu Dhabi. Specialists from 82 countries will converge to discuss the latest in mangrove restoration science. Expect plenary sessions, panel discussions, workshops, and even field trips packed into the three-day event.

Automechanika Dubai will run from 10-12 December at the Dubai World Trade Center. The event will cover nine key product areas: parts and components, electronics and connectivity, accessories and customization, tyres and batteries, car wash and care, oils and lubricants, diagnostics and repair, body and paint, and management and digital solutions. Automechanika Academy will offer industry insights and market updates.

The Forbes Middle East Under 30 Summit will take place on 10-11 December at Umm Al Emarat Park in Abu Dhabi. The event gathers young Arab leaders and entrepreneurs to highlight their achievements and innovations. Discussions will focus on the accomplishments of individuals recognized in the Forbes Middle East 30 Under 30 list.

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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