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Adnoc’s XRG snaps up Covestro after securing shareholder approval

WHAT WE’RE TRACKING TODAY

THIS MORNING: UAEV to charge EV tariffs in January + GCC debt capital markets hit USD 1 tn

Good morning, wonderful people, and happy FRIDAY. We close out the week with big news of Adnoc’s new low carbon platform XRG securing approval from Covestro’s shareholders to acquire a majority stake in the company after over a years of talks. We also have more M&A news from Modon, which is tapping into Europe’s luxury property market, and Julphar, as well as the first blue bond issuance in the Middle East, courtesy of DP World.

WEATHER- Expect a sunnier day in Dubai, with temperatures peaking at 26°C before cooling to an overnight low of 17°C. Over in Abu Dhabi, the mercury peaks at 23°C before cooling to 20°C overnight.

WATCH THIS SPACE-

#1- GCC debt capital market reaches USD 1 tn: The GCC’s debt capital market (DCM) has a reached a milestone of about USD 1 tn outstanding at the end of the 11-month period of this year, coming on the back of an 11% y-o-y growth in the debt market, with 40% in the form of sukuk, according to a report by Fitch Ratings, citing its global head of Islamic finance, Bashar Al Natoor. The UAE and Saudi Arabia have the most developed DCMs in the region, according to the report.

Oil revenues were among the main drivers of the region’s DCM activity, with more issuances expected as oil prices fall amid modest demand and rising supply. GCC banks and corporates are also likely to diversify their debt activity through DCMs.

Fitch expects the GCC to remain among the largest emerging-market USD debt issuers in 2025 and 2026 — excluding China — as sovereigns look to invest in government projects, maturing debt, fiscal deficits, diversification goals, and regulatory reforms. However, ongoing geopolitical tensions in the Middle East and Sharia-related complexities could limit DCM growth and sukuk issuances.


#2- London-based Moore Capital Management’s hedge fund JJJ Capital Management received authorization to expand to Dubai, Bloomberg reports, citing unnamed sources with knowledge of the matter.

Influx of relocations in the UAE: The company is the latest in an influx of global financial institutions expanding to the UAE. UK-based ins. firm Rokstone, global private capital advisor Campbell Lutyens and Dutch telecom operator Veon also landed in the Dubai International Finance Market (DIFC) in November. Nineteen new companies also revealed plans to set up shop in the Abu Dhabi Global Market (ADGM) during Abu Dhabi Finance Week.

About JJJ Capital: JJJ Capital Management was founded by parents Moore Capital Management and Joeri Jacobs. The hedge fund has an office in London and specializes in discretionary global macro trading, focusing on analyzing inflation drivers and their impact on risk assets.

DATA POINTS-

The Central Bank of the UAE reported a 6.2% q-o-q increase in its foreign assets, to AED 818.5 bn in 3Q 2024, according to its Quarterly Monetary, Banking & Financial Markets Developments Report (pdf). This growth was driven by significant expansions in current account balances and deposits with foreign banks, which surged by 66.9% during the quarter, as well as a 9.4% increase in foreign investments. The Central Bank’s foreign assets rose 40.2% y-o-y as of September 2024.

PSAs-

#1- The UAE’s EV charging network UAEV will charge EV tariffs starting January, Wam reports. The pricing rates include AED 1.2/kwh plus VAT for DC chargers and AED 0.7/kwh plus VAT for AC chargers. The UAEV will also launch a phone application to provide charging station locations, live status updates, and payment options.

#2- Coming from London in the summer? You’ll need to switch from British Airways: British Airways has canceled all summer flights from London Heathrow to Abu Dhabi due to ongoing engine issues on some of its aircraft, Reuters reports. “We’ve taken this action because we do not believe the issue will be solved quickly, and we want to offer our customers the certainty they deserve for their travel plans,” the airline said.

THE BIG STORY ABROAD-

A fast-approaching partial government shutdown in the US is getting most of the foreign press’ attention this morning, after a Republican spending bill backed by President-elect Donald Trump was rejected in the US House of Representatives yesterday. Government funding should expire at midnight today, with a failure to extend that deadline expected to lead to a partial shutdown of funding for several government services, including border enforcement, national parks, and paychecks — potentially causing delays at airports ahead of the holidays. (Reuters | WSJ | AP | CNBC | FT)

Also getting a lot of attention: A French court sentenced Dominique Pélicot — who was found guilty of drugging and assaulting his wife with strangers for several years — to 20 years in prison. Another 46 defendants in the case were also found guilty of rape, while two were guilty of attempted rape. Two others were charged with [redacted] assault. (Reuters | FT | AP | NYT)

IN OTHER TRIAL NEWS- Luigi Mangione was charged with murder, stalking, along with other weapon and forgery charges, in connection with the alleged murder of UnitedHealthcare CEO Brian Thompson. He appeared in court for the first time yesterday. (FT | CNN | Reuters)

CLOSER TO HOME- Israeli warplanes struck Yemeni capital Sanaa for the first time after the Houthis launched missile attacks against Israel. The Israeli strikes reportedly killed nine people, and damaged energy facilities and power stations, Bloomberg reports.

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CIRCLE YOUR CALENDAR-

An inaugural Dubai AI Week will take place on 21-25 April at the Museum of the Future and Area 2071 in the Emirates Towers in Dubai. The event will gather global AI experts, thought leaders, and decision-makers for a series of conferences, initiatives, and exhibitions focused on advancements in artificial intelligence. It will feature the second iteration of the Dubai AI Retreat; a prompt engineering competition; a Dubai assembly for generative AI, which will see the participation of ministers and CEOs; a Dubai AI festival; and the machines can see summit.

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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M&A WATCH

Adnoc’s XRG gets Covestro shareholders’ approval to acquire majority stake in chemicals firm

That’s a wrap on Adnoc’s take over of Covestro: Adnoc’s new low-carbon energy investment arm XRG secured a majority stake in German chemicals company Covestro following the completion of its voluntary public takeover offer, according to a press release. The offer “significantly exceeded” the minimum shareholder acceptance threshold required for it to go through. The acquisition is the largest from a Middle Eastern buyer in Europe in 16 years.

What we know: XRG acquired a 91.3% stake in Covestro, with the transaction still subject to regulatory approvals, including merger control and foreign investment regulations, with an expected closing date in the second half of 2025. XRG will keep Covestro as a standalone business, Khaled Salmeen, Adnoc’s executive director for downstream and trading, told Bloomberg in an interview.

PLUS- XRG has committed to “fully support Covestro in executing its “Sustainable Future” strategy and further strategic development,” following the acquisition, the statement said.

Refresher: After over a year of negotiations, Covestro’s management expressed support for Adnoc’s EUR 14.7 bn (c. USD 16.3 bn) takeover offer earlier in November. The acquisition had already surpassed the minimum shareholder acceptance threshold when the initial acceptance period ended in November, reaching around 70%. The additional acceptance period ended 16 December.

Regulatory clearances from countries where Covestro operates are already pouring in: The acquisition received approval last week from the Competition Commission of India, where Covestro operates through its subsidiary Covestro India.

Adnoc is making big moves in petrochemicals and gas: The state oil giant completed several gas and chemicals acquisitions this year. The state-run oil giant finalized its USD 3.62 bn acquisition of OCI Global’s 50%+1 stake in the chemical producer Fertiglobe in October.The company is also looking to merge its plastics unit Borouge with Austria-based integrated oil and gas company OMV’s Borealis, but the transaction is facing delays.

XRG is starting off strong: Adnoc launched its USD 80 bn lower-carbon energy and chemicals investment platform only last month, with a target of focusing on international investments in lower-carbon energy and chemicals, and doubling its asset value over the next decade. Earlier this week, the Adnoc subsidiary partnered up with BP to launch a joint venture called Arcius Energy, which will focus on investments in lower-carbon transition fuel, with plans to invest initially in gas assets in Egypt.

ICYMI- Adnoc appointed a board for XRG last week, with CEO Sultan Al Jaber serving as executive chairman. The board includes former BP CEO Bernard Looney, Blackstone’s Jon Gray, ADQ CEO Mohamed Hassan Alsuwaidi, UAE President’s Office for Strategic Affairs Chairman Ahmed Mubarak Al Mazrouei, Abu Dhabi Department of Finance Chairman Jasem Al Zaabi, and OCI Global Executive Chair Nassef Sawiris.

The story also got ink in Reuters.

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M&A WATCH

Modon acquires luxury real estate firm in Spain + Julphar sells insulin API manufacturing subsidiary

Abu Dhabi-based Modon Holding finalized the acquisition of Spanish real estate company La Zagaleta, according to a press release (pdf), which did not disclose the value of the acquisition. The acquisition marks a “significant milestone of its entry into Europe’s luxury real estate market,” the developer said. It’s not clear whether Modon currently owns any luxury assets in Europe.

What is Modon getting? The acquisition will give the developer ownership of 2.7 mn sqm of land area inside gated luxury resort La Zagaleta in Costa del Sol, Spain. The resort will provide Modon access to a development pipeline for luxury residences, a hotel plot, and the management of over 300 existing homes. The real estate outfit plans to continue the remaining development of the estate.

More in the pipeline: The transaction also includes providing Modon ownership of La Zagaleta’s planned Majarambuz development, a 2.2 mn sqm land bank near Sotogrande, which is in the process of urbanization.

REMEMBER- The developer is pursuing international expansion, and was tapped earlier in October as the master developer on the USD 35 bn Ras El Hekma megaproject in Egypt. Its subsidiary, Adnec’s Excel London, also recently acquired London’s BDCG Holdings, which owns the Business Design Center venue in north London.

OTHER M&A NEWS-

Ras Al Khaimah-based pharma firm Julphar finalized the sale of its entire shareholding in DiabTec, a subsidiary focused on human insulin API manufacturing, according to an ADX disclosure (pdf). This subsidiary represented 12.6% of Julphar’s consolidated total assets as of 30 September. The transaction will be settled in cash at closing and is expected to positively impact the company’s net income in late 2024 or 1Q 2025, depending on the timeline of closing, though the disclosure did not mention the value of the sale.

The details: The agreement involves the manufacturing operations of insulin API and will not affect Julphar’s finished insulin product business. To maintain a consistent supply of insulin API, Julphar will establish a supply agreement with DiabTec as part of the agreement.

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DEBT WATCH

DP World issues Mena’s first blue bond

First ever blue bonds for DP World: Port operator DP World has issued the Mena region’s first blue bond worth USD 100 mn, according to a statement. The issuance is also the first corporate blue bond out of the broader Central and Eastern Europe, Middle East, and North Africa region.

SOUND SMART- What is a blue bond? A blue bond is a facility that supports sustainable marine and fisheries projects. It is used by governments or development banks to raise funds from key investors to finance marine and ocean-based projects.

Tightest spread for DP World so far: The five-year blue bond was priced at a spread of 99.6 bps above US treasuries — representing DP World’s tightest ever spread in the bond or sukuk market. It also came with a 5.25% coupon rate.

ADVISORS- Global investment management firm T. Rowe Price Associates was the main investor, while Citigroup supported the port operator in arranging the issuance under its updated sustainable finance framework.

Where will the money go? The funds will go towards several projects, including sustainable port development, expanding marine ecosystem conservation and restoration projects, and marine pollution initiatives.

REMEMBER- DP World was looking to raise at least USD 1 bn from a 10-year USD-denominated green sukuk issuance with initial price guidance of around 150 basis points above US Treasuries in September 2023.

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CAPITAL MARKETS

ADX and Shanghai bourse to link up via ETFs + Franklin Templeton launches eighth feeder fund in DIFC

ADX and Shanghai bourse to get ETF link: The Abu Dhabi Securities Exchange (ADX) is set to welcome an exchange traded fund (ETF) tracking Chinese stocks, while Shanghai’s bourse will get an Arab company-tracking ETF that feeds into a separate Abu Dhabi-listed ETF, the Financial Times reports, citing statements from Italian asset manager Azimut Group. The Italian asset manager is launching the ETFs alongside China Universal Asset Management (CUAM), with the aim of giving Chinese and UAE investors access to each other’s stock markets as part of an ETF link program between China and the UAE.

The game plan for China’s ETF: Azimut will launch an ETF on the ADX investing in CUAM’s existing ETF listed on the Shanghai Stock Exchange (SSE), which tracks the CSI A500 index, tracking 500 mid-and-small-cap companies listed on the exchange. The FT did not disclose a timeline for the ETF’s launch.

What about Abu Dhabi’s ETF? CUAM will list a separate ETF on the Shanghai exchange, which will invest in an pan-Arab-focused ETF that Azimut is set to launch on the ADX. The ETF will be launched on the ADX by 3Q 2025.

We knew this was coming: Last year, the ADX and the Shenzhen Stock Exchange (SZSE) also inked an MoU to enhance cross-border investment and ETF cooperation between China and the UAE. In August, the Shenzhen Stock Exchange and Dubai Financial Market also inked another MoU for the same purpose.

This comes amid a wider context of China-based stock exchanges boosting their ties with Arab stock exchanges through ETFs. Other than the UAE, the SZSE also inked cooperation MoUs with Saudi and Qatari exchanges. This comes amid a surge of collaboration between China and the Middle East as they look to reduce dependence on financial systems and capital flows from the West.

The ADX has been getting a lot of Asian ETFs lately, with Lunate launching a Japanese ETF earlier in May and an Indian ETF in January. Chimera also launched its S&P China HK Shariah ETF, a Shariah-compliant ETF tracking Hong Kong-listed Chinese equities, in May 2023. The ETF went live on the ADX on 5 June.

OTHER CAPITAL MARKETS NEWS-

US’ Franklin Templeton launches eighth feeder fund in DIFC: US-based investment management firm Franklin Templeton launched the FTIFF Franklin India Fund, an addition to its existing fund range Franklin Templeton Investments Feeder Funds (FTIFF) in the Dubai International Financial Center (DIFC), Trade Arabia reported. The fund gives retail investors in the UAE access to “[India’s] positive growth prospects,” Amar Mehta, head of retail for Gulf, Eastern Mediterranean & Africa at Franklin Templeton is quoted as saying, without disclosing further details on the fund’s focus.

This adds to Franklin Templeton’s seven other feeder funds in the DIFC, launched earlier in July, in a bid to give retail investors access to global and regional fixed income assets, technology assets, and Shariah-compliant strategies. The seven feeder funds are available through onshore, conventional, and Shariah-compliant consumer banks, and were launched after the Securities and Commodities Authority (SCA) issued a decision in April prohibiting funds and asset managers outside of the UAE from being publicly offered for retail subscription in the UAE.

SOUND SMART- Domestic feeder funds — essentially a sub-fund that pools investment capital under a larger umbrella fund — are one way retail investors can gain access to foreign master funds.

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TRANSPORT

RTA awards AED 20.5 bn contract for Blue Metro line development

RTA awards contract for Blue Metro line: The Dubai Roads and Transportation Authority (RTA) has awarded the project to construct the Dubai Blue Metro line, valued at AED 20.5 bn, to a consortium comprising Turkey’s Mapa and Limak, alongside China’s CRRC, according to a press release. The metro line is slated to begin operations in September 2029, with construction starting in April 2025.

The return on investments from the project is expected to come in at some AED 56 bn by 2040, due to savings in time, fuel consumption, emissions, and reduced accident-related fatalities, director general at the RTA Mattar Al Tayer said.

Project details: The 30-km line will run though 14 stations, connecting Dubai International Airport to major urban hubs such as Mirdif, Al Warqa, International City, Dubai Silicon Oasis, Academic City, and Dubai Creek Harbour. The line will have the capacity to carry 200k passengers daily by 2030, with numbers projected to rise to 320k by 2040, with an hourly capacity of 46k passengers.

Part of Dubai’s 2040 Urban Master Plan, the line aims to support the city’s vision of a “20-minute city,” which intends to keep 80% of essential services within a 20-minute radius of each part of Dubai.

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DISPUTE WATCH

Bildco settles debt with Ajman Bank

Abu Dhabi National Company for Building Materials (Bildco) reached a settlement in its legal dispute with Ajman Bank, according to an ADX disclosure (pdf). The agreement includes a signed debt settlement contract that resolves the ongoing legal dispute between the two parties. The disclosure did not mention the exact amount it paid, but Bildco said it received a 13.5% discount on the amount it owed the lender.

Ajman Bank waived all lawsuits against Bildco and released the mortgage on the company’s factory machines. The full amount has been paid, and legal procedures are in the process of completion.

This is the latest in a series of milestones for Bildco’s restructuring plans: Bildco reached a settlement with First Abu Dhabi Bank (FAB) to restructure its debt in May, offering one of its real estate assets as collateral for the arrangement. It also obtained a court order that lifts all foreclosures placed by FAB and Emirates NBD on its assets, properties, and bank accounts in September.

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KUDOS

Mashreq Al Islami’s CEO recognized as best Islamic Banking CEO by Global Business Outlook Awards + FAB classified as one of four leading GCC banks by Fitch. PLUS: Al Tamimi and Company’s training program hits 80% success rate

#1- Mashreq Al Islami’s CEO Ibrahim Al Mheiri has been recognized as the best Islamic Banking CEO in the UAE in 2024 by the Global Business Outlook Awards, according to a post on Linkedin. Al Mheiri has held the role since 2018.

#2- Fitch Ratings included First Abu Dhabi Bank (FAB) among a list of four leading banks in the GCC in its latest Gulf Cooperation Council Flagship Banks report . The bank is joined on the list by Qatar National Bank, National Bank of Kuwait, and Bank Muscat as “flagship banks” — with “dominant market positions as typically the largest franchise in their country, strong and strategic state links, [and] typically high government or ruling family ownership.”


#3- Al Tamimi and Company’s training program achieves 80% success rate: Our friends at Al Tamimi and Company’s England and Wales training program has seen 16 trainees qualify as associates, marking an 80% success rate, the law firm said in a press release (pdf).

About the program: The program, which runs through Al Tamimi Academy — the law firm’s learning hub — and allows trainees to learn across all the firm’s departments, welcomed the latest cohort of trainees for their England and Wales training program last month, bringing the total number of trainees joining the program since its launch in 2021 to 43. The law firm introduced the program following changes introduced by the UK’s Solicitors Regulation Authority (SRA) in 2020.

MORE KUDOS-

  • Real estate company Imobiliare Dubai was presented with the top award at the Binghatti Broker Awards 2024, honoring its innovative developments and performance. (Press release)
  • Abu Dhabi nabs UN Tourism QUEST award: Abu Dhabi has been awarded the United Nations Tourism Organization’s UN Tourism QUEST certification for its excellence in destination management — making it the sixth destination management organization in the world and the first in the Middle East to receive the certification. (Statement)
  • Emirati airport services provider Dnata was named Ground Support Services Provider of the Year at the Aviation Business Middle East Awards 2024. (Statement)
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MOVES

Mashreq names Jyothi Bathula as new global head of MGN + Managing Director of MGN India

Our friends at Mashreq appointed Jyothi Bathula (Linkedin) as the global head of Mashreq Global Network (MGN) and managing director of MGN India, according to a Linkedin post. Bathula has over 20 years of experience in banking and technology services. Before her appointment at Mashreq, she served as chief operating officer at UBS India Service Co, and held the role of COO for the India Operations and Technology division at Credit Suisse, where she oversaw the integration of Credit Suisse into UBS. She also held leadership positions at Credit Suisse in Singapore.

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ALSO ON OUR RADAR

Amea’s solar plant in Egypt gets fast-tracked

RENEWABLES-

Fast tracking Amea’s Benban solar plant: Amea Power will receive a golden license from the Egyptian cabinet for its 1 GW solar power plant with 600 MWh battery storage system in Benban in southern Egypt, according to an Egyptian cabinet statement. The project will see USD 850 mn in investments and will be carried out across two phases, with the first starting operations next August and seeing 300 MW of power and half the battery storage capacity come online. The second will kick off operations in April.

Remember: AMEA inked the purchase power agreement for the project with the Egyptian Electricity Transmission Company in September. The project is expected to be the continent’s largest.

Golden license? Golden licenses create a streamlined process to set up new industrial and infrastructure projects in Egypt that fit a certain list of requirements and criteria. The licenses — also known as “single approval licenses” — grant investors a single approval that covers everything from establishing the project, including land allocation and building licensing, through to the operation and management of the project.

INVESTMENT-

India-based angel fund FAAD Capital launched its investor network in Dubai, marking its first foray into international markets, according to a statement. The fund also plans to open a physical office in Dubai to strengthen its presence in the GCC region.

About FAAD Capital: The angel fund holds a corpus of USD 40 mn. It invests across diverse sectors and geographies, providing cheques ranging from USD 100k to USD 1 mn to startups in the pre-seed and series A stages.

AUTOMOTIVE-

Elite Group Holding signed a AED 100 mn Musataha agreement to develop a 1 mn sqm automotive hub in Dubai Industrial City, according to a statement. The facility is expected to begin operations in 2Q 2026, serving as the central hub for the group’s operations. The group includes companies like Elite Cars, a leading luxury car dealership in the UAE.

REMEMBER- Elite Cars was brought under a larger conglomerate named Elite Group Holding in September. The company, which began as a car dealership in the early 2000s, planned to operate over 20 facilities across the UAE by the end of 2024.

REAL ESTATE-

Dubai-based Ellington Properties awarded a AED 600 mn contract to Aroma International Building Contracting to build the Sanctuary, its first villa community located in Mohammed Bin Rashid City, according to a statement. The Sanctuary is scheduled for completion in 2Q 2026.

CAPITAL MARKETS-

#1- The Securities and Commodities Authority (SCA) revoked the license of Onepro International Brokerage, previously known as JRG International Brokerage, removing it from the register of brokerage firms, according to a SCA post on X. The SCA advised clients of Onepro who have not received their financial dues to submit applications to the SCA within three months from 19 December.

#2- ADGM’s Financial Services Regulatory Authority (FSRA) fined Aarna Capital USD 504k for deficiencies in its anti-money laundering (AML) systems and controls between 8 June 2017 and 13 January 2023, according to a statement. No instances of actual money laundering were identified, and ACL took steps to address the issues identified by the FSRA. ACL settled the matter early without disputing the findings, qualifying it for a 20% discount, decreasing the original USD 630k fine.

AGRICULTURE-

ADQ partnered with South Korean startup Aqua Development to pilot a half-hectare land-based shrimp farming facility in Kezad’s aquaculture zone, making use of Aqua Development’s patented modular system, according to a statement. The project, co-funded by ADQ’s growth lab, aims to assess the feasibility of sustainable shrimp farming in the UAE while reducing costs and increasing productivity up to tenfold compared to conventional methods.

TECH-

Nokia, e& achieve world-first gaming milestone: e& is the first operator globally to deploy Nokia’s network slicing solution to create a dedicated end-to-end slice, according to a statement. The solution is tailored to the speed and latency demands of modern gaming applications.

Network slicing? “It allows [communications service providers] to operate a variety of network services with different services requirements — such as bandwidth, latency, or availability — on the same network infrastructure,” according to Nokia’s website.

AVIATION-

Etihad Cargo will launch a new weekly freighter service to Paris Charles de Gaulle Airport starting 7 January 2025, adding over 100 tons of cargo capacity and expanding its freighter network to 12 destinations, according to a statement. The route, connecting via Abu Dhabi to major destinations in China, will cater to specialized cargo needs, including live animals, automotive shipments, and cultural goods.

FINANCE-

American ins. manager Eldridge and California-based global equity management company Carta were among the list of asset managers announcing plans to set up shop in ADGM during Abu Dhabi Finance Week, according to a press release. Eldrige manages USD 74 bn in AUM, while Carta holds an asset under administration portfolio of USD 150 bn.

Background: With the addition of these new companies, 19 major announcements of companies joining the Abu Dhabi freezone were made during this year’s edition of ADFW, collectively representing an AUM of almost USD 635 bn.

LOGISTICS-

Shipping company SeaLead launched a new direct shipping route connecting Dubai’s Jebel Ali with Karachi in Pakistan and Mombasa in Kenya, according to a press release. The service includes a port rotation of Karachi, Jebel Ali, Mombasa, and back to Karachi, with the inaugural vessel departing Karachi on 24 December.

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PLANET FINANCE

Central banks in China, UK, and Japan keep rates unchanged amid growing signs of sticky inflation

The Bank of England and the Bank of Japan kept their interest rates unchanged yesterday, capping off a year of easing with a cautious stance for 2025. Despite the US Federal Reserve and the European Central Bank’s (ECB) recent rate cuts, central bankers are signalling that inflation continues to prove stickier than expected, pointing to potentially slower easing cycles next year, and triggering sell-offs across stock markets.

THE BANK OF ENGLAND-

The Bank of England (BoE) kept its interest rate unchanged at 4.75% as it looks to “squeeze” remaining inflationary pressures and reach the 2% target, according to a BoE statement. Inflation in the UK hit an eight-month high in November, according to AP. “With the heightened uncertainty in the economy, we can’t commit to when or by how much we will cut rates in the coming year,” Reuters quotes BoE governor Andrew Bailey as saying, striking a cautious tone. The BoE decision was followed by a 1.1% drop in the FTSE 100 index.

BANK OF JAPAN-

Japan also wants to weigh upcoming risks: The Bank of Japan (BOJ) kept interest rates steady at 0.25% as it bides its time on risks overseas and the wage outlook next year, according to statements from BoJ governor Kazuo Ueda picked up by Reuters. “Underlying inflation is heightening but at a moderate pace. That is allowing us to go slow in raising rates,” Ueda said.

PEOPLE’S BANK OF CHINA-

The People’s Bank of China (PBOC) kept its main benchmark lending rates unchanged this morning, in line with economists’ expectations, CNBC reports. China’s leadership indicated a shift towards more aggressive economic support in 2025, which is expected to include interest rate cuts and a widening of the 3% fiscal deficit.

MORE FALLOUT FROM FED’S CUT-

US stocks ended the day flat despite an earlier bounce from a widespread sell-off earlier on Wednesday, with the Nasdaq and the S&P 500 both down a marginal 0.1%.

The yield on US 10-year Treasuries also hit its highest level since May at 4.59%, jumping 0.2 percentage points in the past two days, the Financial Times reports.

MARKETS THIS MORNING-

Asian markets are mixed following the interest rate decisions from China and Japan, with the Nikkei up 0.5% and China’s CSI down 0.2%. Meanwhile, Wall Street futures signal a lower open on news of a potential government shutdown this weekend.

ADX

9,273

-0.2% (YTD: -3.2%)

DFM

5,047

+0.2% (YTD: +24.3%)

Nasdaq Dubai UAE20

4,109

+0.3% (YTD: 6.9%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

4.4% o/n

4.4% 1 yr

TASI

11,892

-0.6% (YTD: -0.6%)

EGX30

30,527

+0.1% (YTD: +23.6%)

S&P 500

5,867

-0.1% (YTD: +23.0%)

FTSE 100

8,105

-1.1% (YTD: +4.8%)

Euro Stoxx 50

4,879

-1.6% (YTD: +7.9%)

Brent crude

USD 72.65

-1.0%

Natural gas (Nymex)

USD 3.63

+7.4%

Gold

USD 2,611.3

-1.6%

BTC

USD 97,648

-2.6% (YTD: 131%)

THE CLOSING BELL-

The ADX fell 0.2% yesterday on turnover of AED 918.2 mn. The index is down 3.2% YTD.

In the green: Julphar (+6.6%), Bildco (+5.0%) and RAK for White Cement and Construction Materials (+3.5%).

In the red: Commercial Bank International (-10.0%), Mair Group (-8.2%) and Sharjah Cement and Industrial Development (-7.4%).

Over on the DFM, the index closed up 0.2% on turnover of AED 771 mn. Meanwhile, Nasdaq Dubai rose 0.3%.

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MY MORNING ROUTINE

My Morning Routine: David Vili, founder and CEO of SolarSpace

David Vili, founder and CEO of SolarSpace: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is David Vili (LinkedIn), the founder and CEO of SolarSpace. Edited excerpts from our conversation:

I’m David Vili, and I’m the founder and CEO of SolarSpace. I’m a self-taught engineer. I dropped out of university when I was very young; I was in one of the top five business schools back then. With SolarSpace, we came here to the UAE as part of the US Chamber of Commerce’s greentech delegation last year, and we were later invited to become a part of the NextGen FDI Initiative by Trade Minister Thani bin Ahmed Al Zeyoudi. Since then, we’ve set up our HQ and manufacturing facility in Abu Dhabi, and an R&D center that we’re currently building in Dubai.

Sustainability has always been a very big thing for me. I see how fast we are changing the world, and we have to look a little bit further and see what progress we achieved in the last 20 or 30 years that mankind in the last 3000 years has not been able to achieve — but by the same token, we need to see how much damage we caused in the last 20 years. Each of us have to do something to be able to preserve our planet — and that was the biggest driving force for me.

But I also realize that without financial interest, nothing gets moved. Before covid-19, there wasn’t this big push for green energy that you see now. We were able to catch the wave at the right time. Now, it’s becoming mainstream, but it takes time to develop this kind of technology.

Our technology came from the University of Arizona and NASA. You know when we were kids and we had the magnifying glass to start a fire? We do something very similar — we use optical mirrors that were developed at University of Arizona and then point them to the sun to concentrate the solar light using a telescope. What we are able to achieve is around a thousand degrees celsius at the focal point — like a laser — in less than eight seconds.

We also have a second technology that was built by the NASA Glenn Research facility, and it was for the mission to planet Venus. Because every probe that we send to Venus gets destroyed in 10 minutes due to its corrosive environment, we needed something that has no moving parts. They developed a heat drive, where we take heat and convert it into sound waves, and sound waves into electrical power or cooling at very high efficiencies.

That’s on the space application side. But what do we do with this technology? We have two products right now that we’re putting on the market. The first can be used for AI data centers, where we install our technology on the roof of data centers to cool it down. This allows data centers to cut down electricity use by 60%. The second product, which we showcased at COP28, is solar desalination — where we freeze water, instead of boiling it, and drop atmospheric pressure to create a vacuum, which then makes the water evaporate, and you get pharma-grade clean water, and eliminate all the brine that’s usually dumped into the sea. You also get fully dried solids from which you can extract rear earth minerals like lithium that you can use to make batteries.

We signed an MoU with the Minister of Energy in St Kitts and Nevis Island in the Caribbean. We also signed an MoU at COP28 to use our technology to generate solar power in space — since ours is a lot more powerful and cost-effective than regular solar panels — and beam it down and link it to the grid. The way I envision it, this can later be offered [without charge] for consumers— electricity is becoming like oxygen, and I’ve suggested to the leadership here in the UAE that we build this as an infrastructure project like bridges or tunnels and provide it to the people, and they loved it.

We also started another company called RoadtoSpace to develop space capabilities. We organize space camps for Emiratis. Last year we teamed up with Khalifa University and University of Arizona to send 14 Emirati students to a space camp, where they had a lot of seminars and hands-on experiences. We’ll do this every year, and we’re also arranging for a program where a spacecraft will be jointly built by students from the UoA and UAE, and later launched into lunar orbit to search for traces of water.

I’ve been doing business since I was 15 years old, and I understand the value of human capital. A startup focused on space will have a very big capital spend, because you need smart people, and smart people cost a lot of money. We have a space act agreement with NASA that allows us to work with their scientists. We have a very similar agreement with the University of Arizona. This way, I don’t have to hire them directly, and I can ask them to work on different projects while allowing me to keep a relatively small team.

Next year, the goal is to have 30 or 35 people working at the Dubai R&D Center, and 200 people working in the Kezad facility.

My morning routine comes naturally everyday — I try to live in the present, even though I still have to plan for everything. All I do is try to maximize what I can out of each day. If I can do something today, I will do it today — I’m not going to plan to do it tomorrow.

When we are young, we have more time to do whatever we want, but we don’t really appreciate that free time. As we get older, we have less time and we cherish those little moments when we do have it. Right now, I’m at a point of my life where I simply don’t have free time. I used to do judo and then got injured, and I really enjoy reading, but I barely have any time to read.

But I’m a firm believer that if you love what you do, you don’t work a day in your life. The key thing for me is to surround myself with people I like. I don’t do anything with people I don’t know or I don’t have a connection with. I always choose friendship first, then business.

I’m a very sentimental guy. When I watch movies, I cry. My favorite is The Notebook — a classic but also a very human story.

What’s the best advice I’ve received? I’m like a sponge. When I’m next to people, it doesn’t have to be a big name or whatever — to me, everybody has a message. And for me, a lot of times, I’m looking for an answer, and then all of a sudden the bus passes by or someone talking on their phone passes by and then it clicks. So I think being alert in life and being open to ideas and suggestions is the most important thing for me.

Tags:

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.

21-25 April (Monday-Friday): The Dubai AI Week, Museum of the Future and Area 2071, Emirates Towers, Dubai.

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.

Signposted to happen sometime in 2H 2025:

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: