CBUAE cut interest rates by 25 bps in line with the Fed

WHAT WE’RE TRACKING TODAY

THIS MORNING: CBUAE cuts rates by 25 bps in line with the Fed + Adia hits USD 1 tn AUM milestone

Good morning, wonderful people. It’s nearly the end of the penultimate (full) week before the end of the year, and we’re all counting down the days.

THE BIG STORY here at home is increased activity from Emirati lenders abroad, with FAB joining in on a syndicated loan for an Indian non-banking financial services player, and Emirates NBD and Abu Dhabi Islamic Bank offering financing for a student accommodation facility in London. Plus:

The Central Bank of the UAE cut interest rates by 25 bps in line with the Fed’s move to cut rates in its meeting yesterday, according to a statement (pdf). The base rate applicable to the overnight deposit facility is now at 4.4%, while the interest rate applicable to borrowing short-term liquidity from the CBUAE has been kept at 50 bps above the base rate for all standing credit facilities. We have more on the Fed’s decision in Planet Finance, below.

PLUS- The Abu Dhabi Investment Authority (Adia)’s assets under management have reached USD 1.06 tn, Forbes Middle East reports. This makes Adia the only regional fund in the “exclusive” USD 1 tn club for sovereign wealth funds — joining Norway’s Government Pension Fund Global, China Investment Corporation (CIC), and China’s SAFE Investment Center, Forbes said, citing data from the Sovereign Wealth Fund Institute (SWFI).

ALSO- We have an interesting read for you on the prospects of more US and UAE cooperation on the space sector, after the US Chamber of Commerce brought its first ever space delegation to Abu Dhabi last week.

WEATHER- Expect more clouds today in Dubai, with temperatures peaking at 25°C before cooling to an overnight low of 18°C. Over in Abu Dhabi, the mercury peaks at 22°C before cooling to 20°C overnight.

WATCH THIS SPACE-

#1- The UAE could see more multinational businesses flock to freezones in the country to hedge against the new 15% domestic minimum top-up tax (DMTT) that will be implemented at the start of next year, according to a survey by Arabian Business. This includes both companies already operating in the UAE and those planning to move in.

Remember- Large multinational enterprises will be required to pay a minimum 15% tax on net income earned in the UAE under the Finance Ministry’s recent domestic minimum top-up tax (DMTT), an increase from the current 9% corporate tax rate.

What they said: “Companies are more likely to shift their operations to [freezones] to [minimize] tax exposure, while continuing to benefit from the UAE’s strategic location, strong infrastructure, pro-business policies and [favorable] regulations,” Bal Krishen, chairman of financial services firm Century Group, told the news outlet. Krishen also expected to see the implementation of revenue tapering measures to keep companies below the DMTT eligibility threshold.

#2-The UAE is expected to lead in IPOs across the broader Europe and Mena region for the third year running with USD 6.2 bn in IPO proceeds in 2024, according to Bloomberg ’s calculations. Meanwhile, firms in the Middle East have raised a total of USD 13 bn in IPOs this year, marking the region’s second-best year since the pandemic.

Investment strategies are changing in 2025: Investors are becoming more sensitive in terms of valuation, as they move their focus to growth companies instead of simply buying yield opportunities, one expert said.

More in the pipeline: Etihad Airways is set to make its debut sometime next year on ADX; while Alpha Data is set to debut in a potentially USD 200 mn IPO on the Abu Dhabi exchange soon. On the DFM front, Dubizzle tapped several banks for a 2025 IPO, and hospitality group Five Holdings tapped advisors for a potential IPO also next year. Meanwhile, Amanat Holdings is looking to list its education and healthcare units, with Construction firm Alec, and Shisha producer Advanced Inhalation Rituals having similar plans.

#3- Private credit firms are expected to see rising demand as more medium-sized businesses grow their presence in the UAE and Saudi Arabia, among other Gulf nations, Golub Capital’s CEO Lawrence Golub told Bloomberg. In comparison to government-backed companies and large family enterprises that typically do not require direct lending capital, medium-sized businesses in the region offer “hundreds of mns not bns of USD” of lending opportunities.

ICYMI- Golub Capital, managing USD 70 bn in assets as of 1 October, received preliminary approval earlier this month to set up an office in the Abu Dhabi Global Market.

#4- Registration is now open for AIM Congress’ 2025 regional startup competition, offering a prize pool of USD 200k in investments to finalists, Wam reports. Startups have until 15 February, 2025 to submit their applications through the official website.

More about the competition: The competition targets startups in the seed and series A funding stages, inviting entrepreneurs from eight major regions, namely Latin America, Africa, Europe, the Middle East, the US, China, Southeast Asia, and India. Selected startups from the regional rounds will advance to the finals, where they will pitch their ideas and innovations to a panel of investors, industry leaders, and global decision-makers.

#5- Adia-backed Ardonagh gets a new investor: Abu Dhabi Investment Authority-backed UK ins. broker Ardonagh Group secured an investment from private equity firm Stone Point Capital to reach a USD 14 bn valuation, unnamed sources told Bloomberg. This investment will make Stone Point a minority shareholder in Ardonagh.

#6- Abu Dhabi-based agribusiness Al Dahra is negotiating with Kenya to lease 200k acres of farmland in the Galana Kulalu Irrigation development, Kenya’s principal secretary for irrigation Ephantus Kimotho told Bloomberg. The investment will amount to approximately USD 800 mn, with the two parties close to finalizing an agreement, which might be signed early next year.

PSAs-

#1- UAE citizens are now eligible for a 10-day visa-free entry to China, according to a statement from China’s State Administration of Immigration. The duration of the stay for foreign nationals from 54 countries eligible for visa-free transit — including the UAE — has been extended from the previous 72 hours and 144 hours (3 or 6 days) to 240 hours (10 days).

#2- Dubai’s Roads and Transport Authority (RTA) launched a bus pooling initiative, allowing passengers to share minibus rides through several applications, according to an RTA statement. The service will initially be available in Deira, linking it to Business Bay, Dubai Mall, Mirdif, and Dubai Festival City, before being rolled out across the emirate, CEO of RTA’s Public Transport Agency Ahmed Bahrozyan said. The bookings will be carried out through three smart applications, including Citylink Shuttle, DrivenBus, and Fluxx Daily, each operating 20 minibuses.

THE BIG STORY ABROAD-

One single story is on every front page this morning: The Federal Reserve has slashed rates for the third time this year but will be more cautious moving forward, Fed Chair Jerome Powell said in remarks that sent US stocks falling. (CNBC | Bloomberg | FT | AP | Reuters)

^^ We have the full story in this morning’s Planet Finance.

IN TECH NEWS- The US Supreme Court will next month hear TikTok’s challenge to a law that could potentially ban the application in the US. Meanwhile, the EU is pushing Apple to make its operating system more compatible with rivals.

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Emirati lenders FAB, ADIB, and Emirates NBD boost activity abroad

Emirati lenders are increasing lending activity abroad, with First Abu Dhabi Bank participating in a syndicated loan facility in India, and Emirates NBD and Abu Dhabi Islamic Bank joining in on a senior financing transaction in London.

#1- First Abu Dhabi Bank is among the lenders participating in a USD 1.3 bn syndicated social loan to Indian non-banking financial services provider Shiram Finance, marking the largest offshore borrowing by an Indian shadow lender, according to a press release (pdf).

The details: The financing includes a USD 1.2 bn tranche, a AED 275 mn tranche, and a EUR 50 mn tranche, with tenors of up to five years, it said in the statement. The transaction also includes a USD 250 mn portion from the International Finance Corporation, Bloomberg reports, citing people familiar with the matter.

ADVISORS- DBS Bank, First Abu Dhabi Bank, HSBC, the IFC, MUFG, Standard Chartered, and Sumitomo Mitsui Banking Corporation (SMBC) acted as global coordinators, mandated lead arrangers, underwriters, and bookrunners. Emirates NBD also acted as mandated lead arranger, underwriter, and bookrunner, while BNP Paribas, CTBC Bank, and

Deutsche Bank contributed as mandated lead arrangers and bookrunners. Kotak Mahindra Bank acted as mandated lead arranger.

This is not Shiram’s first time tapping offshore debt this year: The lender already sold a USD 468.4 mn loan and two USD bonds totaling USD 1.3 bn this year, as more shadow lenders from the country tap offshore debt markets after after India’s central bank tightened rules for NBFS providers to secure local currency bank loans last year.

#2- Emirates NBD and Abu Dhabi Islamic Bank closed a USD 177.6 mn senior financing transaction for a purpose-built student accommodation in London, according to a press release. The transaction was executed as a 50/50 club arrangement between the two lenders.

The project: The financed property, Paddington Citi View, comprises 353 bedrooms and is situated near London’s Paddington Station. Formerly known as Lillian Pension Hall, the asset was acquired by Union Property in 2022 from the University of London.

ADVISORS-Addelshaw Goddard served as an advisor for Emirates NBD, while ADIB was advised by Foot Anstey, and Union Property by Muckle.

New media permits office + gaming included under Dubai Media Council’s purview under new law

A bigger mandate for the Dubai Media Council: Sheikh Mohammed bin Rashid Al Maktoum enacted new legislation for the governance and operational framework of the media sector in Dubai, expanding the regulatory role of the emirate’s media council, according to the Dubai Media Office. The law will take effect upon its publication in the national gazette.

The details: The new law designates the Dubai Media Council as the regulatory authority for media activities across Dubai, including special development zones and freezones such as the Dubai International Financial Center. That includes transferring certain authorities from the Dubai Development Authority to the council’s purview.

What else is under the council’s new mandate? The updated role of the Council includes the promotion of research and innovation, fostering local talent, attracting investments, and advancing the film and gaming industries through the newly established Dubai Films and Games Commission, which replaces the Dubai Film and TV Commission.

REMEMBER- The UAE has been working on regulating the gaming sector: The General Commercial Gaming Regulatory Authority awarded the country’s first commercial gaming operator’s license to casino operator Wynn Resorts in October, after the UAE issued a regulatory framework for the gaming sector in July. The authority also awarded the UAE’s first lottery license to commercial gaming and lottery operator The Game in July, with the lottery kicking off for the first time this month.

AND- A Dubai Media Permits Office will also be established to issue permits for media activities in the emirate. This office will coordinate with the Dubai Development Authority on media activities within its jurisdiction.

Dubai Aerospace Enterprise receives USD 201 mn in settlements from ins. companies

Aircraft lessor Dubai Aerospace Enterprise (DAE) received some USD 201 mn in settlements over the last three months from ins. companies over some of its aircraft that were retained in Russia following its invasion of Ukraine, according to a press release.

What’s the beef? DAE and its affiliates had previously issued claims against a number of ins. and reins. companies, including French ins. provider Axa, against which it had issued USD 737.8 mn in claims for aircraft and equipment on lease in Russia. It reportedly reached a full settlement with Axa over some of its claimed jets in October.

This brings the total value of DAE’s reclaimed settlements to USD 319 mn — including previous settlements agreed in 2023 for seven aircraft.

What’s next? The Dubai-based lessor said it will continue to actively pursue its legal proceedings in British courts, where many trials have taken place between ins. providers and aircraft lessors over aircraft left in Russia, including a mega trial back in October.

Edge Group and Indra Sistemas formalize UAE-based radar systems manufacturing JV

Edge Group and Indra Sistemas set up radar manufacturing JV: IHC-backed defense company Edge Group and Spain’s Indra Sistemas formalized their Abu Dhabi-based joint venture (JV) partnership, Pulse, to develop and manufacture advanced radar systems, according to a press release.

We already knew this was in the works: The two companies agreed to form the JV e arlier this year, with a target to generate orders for around 300 units from clients beyond NATO and the EU.

What will the JV do? Pulse will focus on the engineering, development, manufacturing, integration, and maintenance of current and future radar systems and their components.The JV will also establish advanced research infrastructure and testing facilities in the UAE.

The JV will consist of two entities: one focused on the design, integration, sales, and maintenance of radar systems, with Indra holding a 50.01% stake and Edge holding a 49.99% stake, while the other will be responsible for manufacturing these systems in a new facility in Abu Dhabi, with Edge owning 50.01% of the entity and Indra owning 49.99%.

Looking ahead: Pulse will also have preferential rights over current and future radar orders awarded to either company, with plans to market their products in other “high-potential markets.

The UAE and the US have grown their ties in AI, defense, and green energy — now, it’s space

It’s been a little over a year since the first Emirati “Sultan of Space” — Sultan Al Neyadi — completed the first spacewalk by an Arab astronaut. That was one of many milestones the UAE has achieved in the space sector since it set its eyes on becoming a regional leader in that space, including sending Hazza Al Mansouri, the first Emirati astronaut, to space in 2019.

The UAE sent an unmanned probe to Mars in 2021, marking the first Arab mission to the planet, doubled down on satellite manufacturing, and has joined the US, Japan, Canada, and the European Union (EU) in implementing the Lunar Gateway project — which will see the world’s first space station orbiting the Moon, and will involve sending the first Emirati astronaut sent to the lunar orbit.

Its ambitions don’t end there: The UAE also aims to establish the first habitable human settlement on Mars by 2117.

There’s no denying how nascent the sector remains in the UAE — which is why it’s leaning on other leaders in the sector for bilateral synergies — namely, the US. The US and the UAE have been growing their ties in a myriad of sectors over the past few years, with a strategic partnership in the field of AI, exemplified in Microsoft’s USD 1.5 bn investment in state AI firm G42, defense, and others.

Space is no different, which is why the US Chamber of Commerce last week brought its first ever space delegation to Abu Dhabi. The delegation, comprising more than 20 companies and over 40 business leaders, engaged with key Emirati officials and private sector players, including Economy Minister Abdullah Bin Touq Al Marri and leadership from the UAE Space Agency, state-owned spacetech firm Space42, Edge Group cybertech subsidiary Fada, and others during their visit to discuss potential ways forward in the sector.

The key takeaway from the delegation? While space is still in many ways a “green tech field,” Steve Lutes, US Chamber of Commerce vice president for Middle East affairs, told EnterpriseAM UAE, the sector is now beginning to open up in terms of commercialization opportunities and partnerships with private sector players across sectors. “It’s not just a niche industry anymore,” Lutes said. “There’s an overlay with artificial intelligence, with life sciences, with the green economy and sustainability,” he added.

This is a big shift for a sector that has historically been classified as a high-level security sector, with partnerships limited to government-to-government cooperation, Lutes explained. It’s been a rigid sector in terms of the ability to share information and data, and lacked the commercial component to make it a viable sector for private sector partnership.

As the US and the UAE’s ties in technology grow, securing permissions from the US government to bring those technologies and data to the UAE is becoming easier. “There are US companies that are looking to finalize some approvals and hopefully be able to establish a manufacturing footprint here, so that’ll be a big piece of it,” Lutes said.

There’s also a lot of interest in life sciences, as well as the intersection between AI and space, and climate mitigation and space, he added.

Cooperation between US and UAE space firms is already happening: Abu Dhabi-based space and deeptech investor and International Holding Company-backed Marlan and US-based startup Loft Orbital set up a joint venture to mass manufacture satellites for the first time in the Middle East earlier this year. Satellite imagery and analytics firm Planet Labs also partnered up with the UAE’s Space Agency to develop a satellite data-based atlas to help developing countries tackle damage related to climate change.

And US firms in the sector are setting up their HQs here: US startup SolarSpace — which specializes in off-grid concentrated solar power — set up its regional headquarters in Abu Dhabi after joining the NextGen FDI Program, which helps startups set up shop in the UAE by streamlining registration and licensing procedures, visa issuances, and providing lease incentives. Fun fact: The startup had initially visited the UAE as part of a greentech delegation brought by Lutes and his team at the chamber.

A big pull for US companies to start here? Talent and leadership. “One of the most important investments that the UAE has made is in its people,” Lutes said. “That makes it a lot easier to have those R&D partnerships or to bring manufacturing operations here,” he added. SolarSpace Founder and CEO David Vili agrees: “My company has been able to achieve progress in less than one year that could take us maybe five years [to achieve] in the US,” he said, crediting that progress to the openness and progressiveness of the leadership in the UAE.

LOOKING AHEAD-

As US president-elect Donald Trump takes office, what’s the outlook on the growth of US-UAE business ties? Lutes is hopeful that the “commercial relationship would only continue to grow,” especially considering Trump is a businessman, he said.

Emirates NBD dually lists USD 500 mn bond on Nasdaq and Euronext Dublin

DEBT-

Emirates NBD dual-lists USD 500 mn sustainability-linked loan financing bond on Nasdaq and Euronext Dublin: Emirates NBD bank listed its USD 500 mn sustainability-linked loan financing bond (SLLB) on Nasdaq Dubai and Euronext Dublin, according to the Dubai Media Office. The offering is deemed the world’s first SLLB issued under the new International Capital Market Association (ICMA) — headquartered in Zurich, London, Paris Hong Kong — and the Loan Market Association (LMA) framework.

Remember- The Emirati bank first launched the USD 500 mn five-year SLLB at initial price thoughts of 125 bps over US Treasuries back in November. The issuance was marked as the bank’s first sustainability-linked issuance.

This latest debt issuance increases Emirate NBD’s total value of bonds currently listed on Nasdaq Dubai to USD 5.8 bn, spanning nine different listings.

TRADE-

The Abu Dhabi Investment Office inks MoU with US’ Export-Import Bank: State-owned Abu Dhabi Investment Office (ADIO) inked an MoU with the Export–Import Bank of the United States (EXIM) during Abu Dhabi Finance Week to strengthen trade and investment ties between the two countries, a press release reads.

The details: The UAE and the US aim to focus on collaborating to support small-and medium-sized enterprises (SMEs), with a focus on women-owned businesses, and facilitating exports and imports of goods and services. The agreement targets the sectors of emerging technologies, critical minerals, infrastructure — including telecommunications and transport systems, with an aim to support the introduction of 5G networks.

Collaborations in the energy sector: The two countries also aim to work on enhancing renewable energy solutions, including green hydrogen and energy storage systems, strengthening critical mineral supply chains, and fostering innovation in biotechnology, AI, semiconductors and quantum computing.

CONSTRUCTION-

AD Ports taps Hassan Allam for construction of Safaga terminal in Egypt: Emirati, ADQ-owned port giant Abu Dhabi Ports has chosen Egyptian construction and contracting leader Hassan Allam Construction to build the infrastructure for its Noatum Ports at the Safaga terminal in the Red Sea, according to a statement (pdf). Details about the cost of the agreement are yet to emerge.

Remember: AD Ports will develop and operate the container terminal at Safaga Port under a USD 200 mn, 30-year concession agreement that has been in the works since at least 2021. The project — which was finalized in an agreement in late 2023 — was initially expected to kick off operations in 2Q 2025. The terminal is expected to be able to handle some 5 mn tonnes of dry bulk, 1 mn tonnes of liquid bulk, 450k TEUs of containerized cargo, and 50k car-equivalent units (CEUs) of roll-on, roll-off cargo. Needed infrastructure includes administrative buildings, warehouses, roads, utilities, security systems, and more.

Data point: AD Ports has invested some USD 349 mn in Egypt over the past three years when it really began to establish itself in the country. The global port operator has now acquired local logistics firms TCI and Transmar and maritime services provider Safina. It has also landed an agreement to develop, operate, and manage three cruise terminals in Hurghada, Safaga, and Sharm El Sheikh and another for a planned roll-on, roll-off ship terminal and cruise terminal in Ain Sokhna Port.

REAL ESTATE-

#1- Abu Dhabi-based Ohana Development launched a AED 4.7 bn beachfront residential project in partnership with US-based luxury watch and jewellery brand Jacob & Co., according to a press release. Jacob & Co. Beachfront Living by Ohana is located in Al Jurf district between Dubai and Abu Dhabi, and it features one- to three-bedroom apartments, as well as three- to six-bedroom villas. The project is scheduled for delivery by 2Q 2028.

ICYMI- Ohana Development launched its Eli Saab Waterfront on Abu Dhabi’s Al Reem Island in May.

#2- One Development broke ground on its flagship AED 2 bn Laguna Residence project in Dubai’s City of Arabia, according to a press release. The project, launched in October, is scheduled for delivery in 4Q 2027.

#3- Mr. Eight Development set to launch five residential projects next year: Dubai-based Mr. Eight Developments is gearing up to launch five new “boutique-inspired” residential projects on Dubai Islands in 2025, according to a press release. “We plan on investing around [AED 1 bn] across all our projects on Dubai Islands, Mr. Eight’s Director Emils Daujats said. The team behind Mr. Eight has spent 20 years developing projects in Europe.

The developer secured eight new plots of land developed by Dubai-based developer Nakheel, on which the five projects will be launched.

TECH-

Vertical Data set to launch flagship service in the UAE under partnership with Hodler: Dubai-based digital assets investment firm Hodler Investments partnered with US-based data center infrastructure firm Vertical Data to bring the latter’s GPUaaS solution in a box service to the UAE and the wider Mena region, according to a press release (pdf).

The details: The partnership will see Vertical Data work with Hodler’s subsidiary PermianChain to deploy modular and portable data center solutions, which can be tailored to each company’s needs and available real estate space.

ICYMI- Hodler Investments partnered with Gewan Holdings in August to establish a closed-ended digital energy infrastructure fund, targeting USD 250-500 mn. The fund has already received soft commitments and contributions from undisclosed lead investors.

INFRASTRUCTURE-

Enoc and Terra partner up to establish e-bike battery swapping stations in the UAE: Emirates National Oil Compan (Enoc) inked a partnership agreement with Dubai-based battery-swapping refueling and electric scooters platform Drive Terra to build a battery swapping stations network nationwide for e-bikes, according to a press release from Enoc. The battery-swapping network aims to accelerate the adoption of e-bikes in the country.

Terra teamed up with Flyby back in March to provide it with e-bikes powered by the Middle East’s first swappable battery network in a bid to reduce emissions.

AVIATION-

Air Arabia adds new flights to Russia: Sharjah-based budget airline Air Arabia plans to launch a direct route between Sharjah International Airport and Sochi International Airport in Russia. The service will kick off from 27 June, 2025, with three non-stop flights scheduled each week on Mondays, Wednesdays, and Fridays, according to a press release. With this new route, Sochi is set to become the sixth Russian city served directly by Air Arabia from Sharjah, along with Moscow, Kazan, Samara, Ufa, and Yekaterinburg.

EDUCATION-

ADGM Academy, the educational arm of Abu Dhabi Global Market, inked seven MoUs during the Future of Talent Summit which it hosted on the sidelines of the Abu Dhabi Finance Week, according to a press release. A rundown of the MoUs:

An agreement was signed with Massachusetts Institute of Technology to leverage its expertise in research and education;
with Ray Dalio to establish frameworks for thought leadership and training initiatives;
Wealth Management Institute to launch the School of Wealth & Asset Management in Abu Dhabi;
Visa to support fintech innovation, research, and curated training programs;
Sandooq Al Watan targeting capacity building for Emiratis via initiatives supporting entrepreneurship and SME mentorship;.
Standard Chartered to advance joint research and governance in AI within financial service;.
and Abu Dhabi Youth Business Council to organize mentorship programs and initiatives to develop the professional skills of young entrepreneurs.

DISPUTE WATCH-

Three individual shareholders of Fujairah-based Brooge Energy have filed a complaint in a US federal court against EY, alleging the auditor failed to detect what they claim were fabricated revenues in Brooge Energy’s annual reports for two years, Reuters reports. The plaintiffs were once investors in a special purpose acquisition company that acquired Brooge in 2019. Brooge’s assets are now being acquired by DFM-listed Gulf Navigation.

PAYMENTS-

Turkish fintech firm Dgpays partnered with Mastercard to co-develop digital payment and loyalty solutions for Eastern Europe, the Middle East, and Africa (EEMEA), according to a press release.

Remember- Dgpays, which acquired a 65% stake in Mashreq’s payment subsidiary NeoPay earlier this year, has been eyeing expansion beyond the UAE into other GCC countries, Egypt, and Pakistan.

Fed cuts rates by another 25 bps, signals slower easing cycle next year

The US Federal Reserve cut interest rates for the third time in 2024 by 25 bps, bringing its overnight borrowing rate to 4.25%-4.5%, it said in a press release yesterday. This brings interest rates down a full percentage point this year, after it cut rates by 50 bps in September, and by 25 bps in November.

The Fed is now expected to make two rate cuts next year, according to the closely watched “dot plot,” CNBC reports — half the amount of cuts expected the last time the dot plot was updated in September. The next meeting will take place on 28-29 January.

Still, all options are on the table: The Fed is currently not on “any preset course,” Powell says, and restraint can be “dialed back more slowly” if the economy remains strong, Fed chair Jerome Powell said in a press conference (watch,runtime: 6:53). However, with the current, less restrictive policy stance, coming steps can be more cautious as further adjustments are considered.

Inflation to come in higher than expected: Expectations on inflation remain “well-anchored,” says Powell, with numbers currently still above, but moving steadily toward, the longer term 2% goal. Officials now see inflation coming in at 2.5% by the end of next year, with the 2% target likely out of reach until 2027.

Tariffs? We’ll cross that bridge when we get to it: The effect of Donald Trump’s potential tariffs on the economy is not a present situation to handle, Powell said, according to Reuters, with the proper assessment mainly taking place after the policies are officially issued.

Market reax: US stocks slid after the Federal Reserve’s decision, with the S&P 500 falling 3%, Nasdaq sliding 3.6%, and the Dow Jones declining 2.6%.The USD also hit a two-year high on the news.

MARKETS THIS MORNING-

Asian markets are also in the red following the sell-off on Wall Street, with Japan’s Nikkei down 1.2%, South Korea’s Kospi down 1.7%, and Hong Kong’s Hang Seng falling 0.9%. Wall Street futures are hovering near the flatline.

ADX	9,293	+0.3% (YTD: -3.0%)
DFM	5,037	-0.8% (YTD: +24.0%)
Nasdaq Dubai UAE20	4,095	-0.5% (YTD: +6.6%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.5% o/n	4.3% 1 yr
TASI	11,961	+0.1% (YTD: +0.2%)
EGX30	30,503	-0.3% (YTD: +22.5%)
S&P 500	5,872	-3.0% (YTD: +23.1%)
FTSE 100	8,199	+0.1% (YTD: +6.0%)
Euro Stoxx 50	4,957	+0.3% (YTD: +9.6%)
Brent crude	USD 72.98	-0.3%
Natural gas (Nymex)	USD 3.37	+2.0%
Gold	USD 2,653	-0.3%
BTC	USD 100,112	-5.0% (YTD: +138%)

THE CLOSING BELL-

The DFM fell 0.8% yesterday on turnover of AED 947.1 mn. The index is up 24% YTD.

In the green: Sukoon Ins. (+12.7%), Shuaa Capital (+3.5%), and Salik (2.2%)

In the red: Takaful Emarat (-9.9%), Al Mazaya Holding Company (-9.3%) and BHM Capital Financial Services (-8.0%).

Over on the ADX, the index closed up 0.3% on turnover of AED 1.1 bn. Meanwhile, Nasdaq Dubai fell 0.5%.

Calendar

DECEMBER

13 December – 4 January (Friday-Saturday): Liwa International Festival, Al Dhafra, Abu Dhabi.

14-21 December (Saturday-Saturday): World Schools Festival, Abu Dhabi

17-19 December (Tuesday-Thursday): China Home Life, Dubai Word Trade Center.

19-22 December (Thursday-Sunday): Rise Investment Festival for Young Entrepreneurs (RICH), Dubai.

6 December-12 January: Dubai Shopping Festival.

Signposted to happen sometime in December:

JANUARY 2025

1 January (Wednesday): ADGM to slash licensing fees for retail and non-financial firms, and hike fees for finance firms.

1 January (Wednesday): Health ins. to become mandatory for employees across the UAE.

7-9 January (Tuesday-Thursday): The Arab Plast International Trade Fair for Plastics, Recycling, Petrochemicals, Packaging and Rubber Industry, Dubai International Convention and Exhibition Center, Dubai.

9-13 January (Thursday-Monday): International Renewable Energy Agency Youth Forum, Abu Dhabi.

11-13 January (Saturday-Monday): International Renewable Energy Agency Assembly, Abu Dhabi.

11-13 January (Saturday-Monday): The 1 Bn Followers Summit, Dubai.

14-16 January (Tuesday-Thursday): World Energy Summit, Abu Dhabi.

14-16 January (Tuesday- Thursday): The Light + Intelligent Building Middle East exhibition, Dubai.

14-16 January (Tuesday- Thursday): Intersec, Dubai World Trade Center, Dubai.

19-24 January (Sunday-Friday): Coling 2025, Abu Dhabi.

20-22 January (Monday-Wednesday): FESPA Middle East, Dubai World Trade Centre, Dubai.

22-25 January (Wednesday-Saturday): The Sharjah Real Estate Exhibition (Acres), Expo Centre, Sharjah.

27-30 January (Monday-Thursday): Arab Health Exhibition, Dubai World Trade Centre, Dubai.

28-29 January (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

FEBRUARY 2025

1-6 February (Saturday-Thursday): Dubai Fashion Week, Dubai Design District.

1-8 February (Saturday-Saturday): The Mubadala Abu Dhabi Open, Zayed Sports City’s International Tennis Centre.

2-3 February (Sunday-Monday): L’Etape Dubai cycling race, Dubai.

3-6 February (Monday-Thursday): Medlab Middle East, Dubai World Trade Center.

10-12 February (Monday-Wednesday): Japan Kyoto Trade Exhibition, Dubai Word Trade Center.

16 February-1 March: Dubai Dutyfree Tennis Championships, Dubai Dutyfree Tennis Stadium in Al Garhoud.

24-25 February (Monday-Tuesday): World Passenger Experience Forum, Dubai.

24-26 February (Monday-Wednesday): Connecting Hydrogen MENA, Dubai.

28-29 February (Friday-Saturday): Investopia 2024, the St. Regis, Abu Dhabi.

28 February-29 March (Friday-Saturday): Ramadan.

Signposted to happen sometime in 1Q 2025:

MARCH 2025

18-19 March (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

31 March-2 April (Monday-Wednesday): Eid Al Fitr, national holiday.

APRIL 2025

6-11 April (Sunday-Friday): Geo-Spatial Week, Dubai.

7-10 April (Monday-Thursday) : EFG Hermes One on One conference, Dubai.

7-9 April (Monday-Wednesday): AIM Investment Summit, Abu Dhabi National Exhibition Center

14-16 April (Monday-Wednesday): Dubai Woodshow’s 21st Edition, Dubai World Trade Center

14-16 April (Monday-Wednesday): IPS congress, Dubai World Trade Center.

16-18 April (Wednesday-Friday): World Future Energy Summit, Abu Dhabi National Exhibition, Abu Dhabi.

25 April-11 May (Friday-Sunday): Dubai Esports and Games Festival, Dubai World Trade Center.

28 April-1 May (Monday-Thursday): The Arabian Travel Market, Dubai World Trade Center

Signposted to happen sometime in April:

MAY 2025

6-7 May (Tuesday-Wednesday): Global Ports Forum, Dubai.

6-7 May (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

19-22 May (Monday-Thursday): Make it in the Emirates, Adnec, Abu Dhabi.

26-28 May (Monday-Wednesday): Arab Media Summit, World Trade Center, Dubai.

30 May (Friday): Arafat Day.

31 May-2 June (Saturday-Monday): Eid Al Adha.

JUNE 2025

17-18 June (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

27 June (Friday): Islamic New Year.

JULY 2025

29-30 July (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

SEPTEMBER 2025

8-10 September (Monday-Wednesday): DigiHealth exhibition, World Trade Center, Dubai.

16-17 September (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

24-25 September (Wednesday-Thursday): Mohammed Bin Rashid Leadership Forum, Mohammed Bin Rashid Center for Leadership Development, Dubai.

OCTOBER 2025

3-16 October (Friday-Thursday): Dubai Home Festival.

27-29 October (Monday-Wednesday): Asia Pacific Cities Summit, Dubai Exhibition Center.

28-29 October (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

NOVEMBER 2025

18-19 November (Tuesday-Wednesday): Dubai Future Forum, Museum of the Future, Dubai.

DECEMBER 2025

1-3 December (Monday-Wednesday): Eid Al Etihad (UAE National Day).

9-10 December (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

Signposted to happen sometime in 2025:

Signposted to happen sometime in the fall of 2025:

Signposted to happen sometime in 2026:

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