Good morning, everyone. Things are finally winding down after a whirlwind of events in Abu Dhabi, from F1 over the weekend to Abu Dhabi Finance Week and all the concurring events happening in parallel. We hope everyone who’s been busy running around between venues gets a good rest this weekend.

Today’s issue is a mixed bag, with a heavy dose of investment and startup news, a new container terminal at Khalifa Port, and a flurry of manufacturing updates. Plus: Adnoc’s XRG now has a board.

WEATHER- We’re in for a cloudy (and possibly rainy) end to the week: The National Center of Meteorology forecasts (pdf) partly cloudy conditions in northern and coastal areas and islands today through the weekend, with a chance of light rainfall and blowing dust on Saturday. Temperatures today will hit 27°C in Dubai, with an overnight low of 20°C, and 24°C in Abu Dhabi, before cooling to an overnight low of 21°C.

WATCH THIS SPACE-

#1- Abu Dhabi proposes new virtual asset regulations: The Financial Services Regulatory Authority (FSRA) of ADGM issued a consultation paper proposing updated rules to its virtual asset regulatory framework, according to a statement from the financial center. The proposed changes include refined capital requirements, fees, staking models, and criteria for non-ADGM-issued fiat-referenced tokens, as well as proposals for more investment prospects for venture capital funds.

REMEMBER- The FSRA issued a regulatory framework for the issuance of stablecoins in the ADGM earlier this month. The new regulations set out a definition for the tokens and the parameters for its issuance and use as a method of payment within ADGM.

ALSO FROM ADGM- The financial center will establish an ins. association within its jurisdiction, according to its press release (pdf). Information regarding its structure, membership, and upcoming activities will be announced later.

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#2- The Environment Agency – Abu Dhabi (EAD) is set to implement a policy for protecting soil from degradation in Abu Dhabi, in coordination with Abu Dhabi Government agencies, Adnoc, and Abu Dhabi Ports, according to the Abu Dhabi Media Office. The policy looks to secure soil sustainability and promote its optimal use as part of the emirate’s broader plan to rehabilitate 80% of degraded lands by 2030.

The details: The policy focuses on reducing degradation through adopting sustainable land and soil management systems, tightening regulatory frameworks, and raising awareness about soil. It applies to urban development, industrial, agricultural, oil and gas sectors, coastal areas, and terrestrial protected areas.

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#3- EtihadWE mulls tariff cuts for RAK industry: Etihad Water and Electricity (EtihadWE) inked an MoU with the Investment and Development Office of Ras Al Khaimah (IDO) to mull offering discounted electricity tariffs for industrial customers in the emirate, state news agency Wam reports.

The two authorities will negotiate a bulk supply agreement with an IDO-designated nominee, which would allow eligible customers to benefit from preferential rates through a bulk aggregation mechanism, though it’s not clear what makes them eligible.

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#4- GCAA overhauls private aircraft registration procedures: Private aircraft operators can now receive air operator certificates within 90 days, down from two years, as part of the General Civil Aviation Authority’s (GCAA) Golden Package for registering and operating private and business aircraft, Wam reports. Air operating authorizations can also be issued in just 60 days, while age limits to register aircraft have been eliminated, while pilots’ foreign licenses will now be transferred and verified within three days, Khaleej Times reports. It’s not clear who is eligible for the benefits of the golden package.

Also worth noting:

  • Aircraft owners can now manage and operate their own aircraft without an operator;
  • Aircraft owners can gain 100% ownership of their aircraft, eliminating the need for local partnerships;
  • Aircraft operators now also only need one aircraft to be eligible for operations, down from two previously.

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#5- The ADX expects IPO momentum to continue in 2025, with more IPOs expected next year in comparison to this year, Al Khaleej quotes ADX CEO Abdullah Salem Al Nuaimi as saying. Al Nuami does not expect any IPOs in 1Q 2025, though, when companies are focusing on getting their earnings and annual reports out.

The exchange will also undergo a complete overhaul of its system in 1Q, including updates to deposit and trading platforms, Al Nuaimi added.

The ADX has recorded a 17% y-t-d uptick in total investors for 2024, driven by high-quality listings and strong investor demand, Al Bayan cites ADX CEO Abdulla Salem Al Nuaimi as saying. Foreign investors now account for 40% of daily trading activity on the exchange.

#6- Investment platform Shuaa Capital reached an “amicable agreement” with one of its main creditors, according to a DFM disclosure (pdf). The firm expects more key agreements to take place this month, ahead of its planned issuance of mandatory convertible bonds.

REMEMBER- Shuaa Capital plans to issue a total of AED 642.5 mn of mandatory convertible bonds as part of its capital optimization plan. The company witnessed other restructures throughout 2024, including reaching an agreement with bondholders in April to extend the payment terms for some USD 150 mn worth of bonds. It also fully settled around AED 500 mn (USD 136 mn) in margin facilities with multiple UAE banks.

HAPPENING TODAY-

#1- The European Arab Medical Congress is on its final day 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.

#2- Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan is in India for the India-UAE joint commision meeting, which will wrap up today in New Delhi, with discussions between both countries on bilateral cooperation in strategic and economic aspects.

Al Nahyan met with Indian Prime Minister Narendra Modi yesterday and discussed ties in energy and tech, India’s prime minister office said in a statement.

THE BIG STORY ABROAD-

It’s a mixed bag in the foreign press this morning, with some outlets leading with the aftermath of Bashar Al Assad’s ouster in Syria, and others noting updates on the AI and crypto fronts.

The post-Assad era is top of mind for Bloomberg, which leads with Russia’s efforts to secure its military bases in Syria, with sources saying an agreement is near. The business information service also reported that it was the Kremlin who pushed Assad to flee Syria when it was clear he would be unable to survive there.

SPEAKING OF SYRIA- UAE Foreign Affairs Minister Sheikh Abdullah bin Zayed Al Nahyan discussed the importance of sovereignty and security in Syria with his Arab and regional counterparts yesterday, conducting phone calls with Iran’s Foreign Minister Abbas Araghchi, Egypt’s Badr Abdel Ati, Qatar’s Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, Jordan’s Ayman Safadi, and Morocco’s Nasser Bourita.

IN BUSINESS NEWS-

#1- Meta is releasing an AI model that can control the movements of human-like agents in the metaverse, calling it Meta Motivo. The Facebook owner is also introducing a new training model for language modeling called the Large Concept Model (LCM) — a move away from the traditional large language model (LLM — with the goal of “[decoupling] reasoning from language representation.” (Reuters)

#2- US President-elect Donald Trump’s crypto venture World Liberty Financial — co-founded by his new Middle East envoy Steve Witkoff — partnered up with crypto platform Tron, which the US and Israel say has been used by militant groups Hamas and Hezbollah. The news comes after a busy week for crypto, especially here in the UAE with the conclusion of Bitcoin Mena, where Eric Trump delivered a speech — and marks the rise of concerns over Witkoff’s involvement with World Financial and the boundaries that could be crossed between politics and business. (Reuters)

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OIL WATCH-

Global oil markets are destined to be oversupplied in 2025 based on expected supply and demand levels, despite Opec’s plans to delay output hikes to 2Q 2025, according to the International Energy Agency’s (IEA) oil market report. A lifting of production cuts in April 2025 will still lead to an oversupply of 1.4 mn bbl / d, though the IEA is assuming a 950k bbl / d overhang even if Opec+ does not commit to this timeline.

The breakdown: These expectations are based on a predicted global consumption level of 103.9 mn bbl / d in 2025, compared to an anticipated supply of 104.8 mn bbl / d, even if Opec+ delayed or scrapped plans to phase out cuts. Meanwhile, non-Opec+ supply will increase by 1.5 mn bbl / d next year, led by the United States, Brazil, Guyana, Canada and Argentina.

ICYMI- Opec slashed this year’s oil demand growth forecast by 210k bbl / d to 1.6 mn bbl / d, after accounting for “recently received bearish data for 3Q 24.”

CIRCLE YOUR CALENDAR-

Aims will take place on 16-20 December at the Adnec Center in Abu Dhabi. The conference focuses on pure and applied analysis, differential equations, and dynamical systems, covering a wide range of applications in fields such as biology, chemistry, physics, finance, and industrial mathematics.

Rise Investment Festival for Young Entrepreneurs (RICH) is set to take place from 19 to 22 December in Dubai, Wam reports. The event is organized by the Dubai Women’s Association, and aims to empower young entrepreneurs by offering opportunities to enter the labor market. Applicants must be UAE nationals aged 18-35, with innovative business projects, a valid commercial license, and an annual net income of at least 50k AED.

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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