Dear readers,
As we enter 2022 and make plans for our goals, let us look back at some of the most important events in the industry.
Let me know what you think of this list? Did I miss anything? If so, hit reply and let me know.
Best Regards
Government
UAE Moves Weekend Days to Saturday-Sunday, Makes Friday a Half-Day – Bloomberg
– The changes, which the government said will allow the UAE to align more closely with global markets, will come into effect on Jan. 1 and apply to the public sector and schools. There will be a 4 ½-day working week with Friday – a holy day in Islam – being a half-day, the federal government said in a statement.
– The government didn’t say whether the private sector would have to adopt the new 4 ½-day weeks, with the door being left open for private companies to decide how to allocate resources.
– The changes “will increase the number of days we do business with the rest of the world, which will boost trade,” said Nabil Alyousuf, chief executive officer of Dubai-based International Advisory Group.
– Pedro Gomes, an economist at Birkbeck, University of London, and author of the book says “Starting by the public sector is a tactical mistake. It will exacerbate the narrative of the hardworking private sector versus lazy bureaucrats. This is why the Utah 2011 4-day week failed. It should be implemented to the whole economy, giving 4/6 years for the adjustment.”
Read more.
Sheikh Mohammed launches ‘Operation 300bn’ strategy to foster UAE industrial sector
“The 10-year comprehensive strategy aims to empower and expand the industrial sector to become a propeller of a sustainable national economy, increasing its GDP contribution from the current Dhs133bn to Dhs300bn by 2031.“
“Operation 300bn will result in the Ministry of Industry and Advanced Technology rolling out programmes to support more than 13,500 SMEs by 2031. Over 33,000 industrial enterprises operate in the UAE, comprising 95 per cent of small and medium-sized businesses.”
“Operation 300bn will focus on promoting existing industries and enhance their contributions to the GDP while focusing on developing a new industrial ecosystem, primarily high-tech industries and Fourth Industrial Revolution (4IR) ventures.“
Read more.
UAE to permit 100% foreign business ownership from June 1
“The UAE announced in November that foreign nationals would be allowed to own 100 per cent of commercial companies within the country, eliminating the need for a UAE national to hold the majority share.”
“The legislation, which will enable investors and business in ’10 new sectors of strategic importance to come under the purview of the law, is in its final stages of formation.”
Read more.
Abu Dhabi approves $12.3bn worth capital projects in the Emirate – GCC Business News
“Abu Dhabi’s local executive authority Abu Dhabi Executive Council has endorsed a framework between Abu Dhabi Government and Aldar Properties, a real estate development, management, and investment company, to develop $12.3 billion (AED45 billion) worth of capital projects in the Emirate.”
“The framework involves Aldar taking over the development and management of approximately $8 billion (AED 30 billion) worth of government capital projects, such as Riyadh City, Baniyas North, and developments in the Al Ain and Al Dhafra regions.”
Read more.
UAE’s MoF launches the final phase of accrual accounting system – GCC Business News
“The UAE Ministry of Finance (MoF) has launched the third and final phase for government entities to switch to an accrual accounting system, which provides an improved infrastructure that would enhance the country’s position in global competitiveness indexes.”
“The third phase will cover major entities in the federal government.”
Public Private Partnership (PPP)
Qatar’s PPP Law will open up opportunities in various sectors; Report – GCC Business News
– The country has opened new paths or investments with the creation of institutional bodies like Qatar Financial Center, Qatar Free Zones Authority and Qatar Science and Technology Park (QSTP) along with the amendment of its laws surrounding foreign ownership.
– The report titled ‘Qatar Economy Watch’ states that the public sector procurement initiatives will contribute to private sector development including Qatar Petroleum’s flagship Tawteen localization program.
Read more.
Dubai DoF reveals $6.8bn worth PPP projects to make the emirate an economic hub – GCC Business News
– The portfolio includes more than 30 significant projects in the infrastructure, public transportation and urban development sectors.
– The Dubai International PPP Conference represents a key initiative for generating new public-private partnerships which will help accelerate Dubai’s journey to the future. The event promotes innovative financing methods for partnership projects among local and international investors.
Read more.
Infrastructure
Fledgling UAE rail network step towards bridging the Gulf – France 24
– Hammadi is the first Emirati to become a train driver – in a country that already has a space programme and two of the world’s biggest airlines, but is only now developing a rail network to connect all seven of its emirates.
– When completed, Etihad Rail will operate 1,200 kilometres (750 miles) of track connecting all of the emirates – from Ghweifat in the western region of Abu Dhabi to the emirate of Fujairah on the eastern coast – and link with neighbouring Saudi Arabia.
– The long-term plan is to be part of a wider railway network that would connect all six Gulf Cooperation Council countries, including Bahrain, Kuwait, Oman and Qatar as well as the UAE and Saudi Arabia.
– Freight is currently the line’s main focus but as it is extended through the mountains between the emirates of Dubai and Fujairah, the line is also set to offer passenger services that will run at speeds of up to 200 kph (125 mph).
– Etihad Rail says that one full freight train can replace 300 trucks, and cut CO2 emissions by 70-80 percent.
Read more.
NEOM and The Line: a Saudi blueprint for the global future of urban living | Arab News
There will be no roads or cars in The Line, which positions it to be the first smart-city project to solve a problem known as the fundamental law of congestion.
All of the energy used by NEOM will be 100 percent renewable — including solar, wind, and hydrogen-based power generation — to ensure clean, pollution-free urban environments.
Technology
Electric Cars Get First Battery That Can Charge in 5 Minutes – Bloomberg
“Israeli company StoreDot Ltd. has manufactured the first battery for electric vehicles that can be charged in just five minutes, a step toward making refuelling as fast as cars at a gas station.”
“StoreDot said that rapid charging batteries could overcome range and charging anxiety, a critical barrier to mainstream EV adoption.”
Read more.
How Mars became the prize for the new space race – and why China is hellbent on winning it | Space — www.space.com
“China is not the only country at Mars. On February 9, a UAE probe, Hope, achieved the same insertion manoeuvre. It is not a direct competitor to the Chinese mission (the probe will just orbit the planet to study the Martian weather), but (NASA’s Perseverance rover), set to arrive on Feb. 18, definitively is.”
“The Indian Mars Orbiter Mission (MOM), aka Mangalyaan, reached Mars in 2014 – the first to make it at its maiden mission. This is one reason why a successful outcome of Tianwen-1 is so important for China’s status as the new space power“
“It is clear that, together with cyberspace, the cosmos has become a fundamental new war-fighting domain, where the US are the main — but not the only — adversary.”
Read more.
Entrepreneur defies Lebanon’s crises with tech hub
– The entrepreneur’s company, MultiLane, produces testing and measurement equipment for data centre infrastructure, and its international clients include Microsoft, Apple, and Google.
– Everything is conceived, designed and built out of Lebanon,“ said Daou.
– Daou has had to overcome numerous challenges, for example building his own solar power supply so as not to rely on the state electricity grid. He manages to export his products successfully.
– Global technology companies “select and choose to work with Lebanon knowing that Lebanon is a high-risk country, so we have to offer twice as much in terms of value proposition, in terms of innovation, time to market. We have to work harder,” he said.
Read more.
Abu Dhabi based ADQ to launch region’s largest tech-enabled farming hub
– The new AgTech Park project, part of Abu Dhabi Ports’ industrial cities and free zone cluster, will also help the UAE establish itself as the region’s top fresh produce farming hub, reducing the nation’s dependency on premium food imports. This strategic location will increase the region’s perishable products and food supply processing, storage, and distribution efficiency.
– Earlier this year, high-tech agricultural firm Sokovo has signed an agreement with Dubai Industrial City to establish the hydroponic farm, which will grow fresh, pesticide-free produce, a statement said.
Read more.
G42 (Mubadala) Driverless Car Service: Yas Island News – Bloomberg
– Group 42’s Bayanat unit will begin with five cars on Yas Island.
– Bayanat signed an agreement to begin autonomous vehicle trials in March and the UAE Prime Minister Sheikh Mohammed bin Rashid Al Maktoum approved testing of self-driving vehicles this month.
– Earlier this year, Cruise LLC, the self-driving car unit backed and majority-owned by General Motors Co., signed a deal to begin operating self-driving taxis in Dubai in 2023.
– Mubadala took a stake in the company last year.
Read more.
Investments
Biggest Abu Dhabi Wealth Fund Expands Foray Into Private Markets – Bloomberg
– The fund’s private equity department committed more capital than ever before last year with 24 investments, up from 18 in 2019. Direct investments and co-investments represented 55% of its overall deployment for 2020, up from 45% in 2019, with the balance committed to funds.
– The promise of higher returns at a time of extra low-interest rates is prompting the $10 trillion wealth fund industry to shift more capital into private markets that tend to be less liquid but offer steady cash flows for decades.
– Besides developed markets equities, which make up as much as 42% of ADIA’s portfolio, the fund holds bonds, alternative assets, real estate, private equity, infrastructure and cash.
Read more.
– Virgin Orbit will merge with NextGen Acquisition Corp. II, a SPAC that holds $383 million in the capital, which is expected to close by the end of 2021.
– The deal would give Virgin Orbit up to $483 million in capital, depending on how many shares in NextGen are redeemed by shareholders.
– The funds will go toward scaling up the manufacturing of the startup’s LauncherOne rocket and to support the expansion of its “space solutions business” and new product development initiatives, the company said.
– The companies expect the deal to close by the end of the year.
– The space economy is developing rapidly and Virgin Orbit is well-positioned to benefit through its ability to competitively launch at any time, from any place on Earth to any orbit and inclination.
– The company’s most recent successful launch, conducted on June 30, precisely delivered satellites for commercial and national security customers.
Read more.
New York gobbles up SPAC listings from UAE | Arab News
“After a strong run of acquisitions in the US, SPACs are looking at emerging markets, with a focus on Asia. But there are potential targets in the Middle East and the UAE in particular.”
“SPACs are speaking to us about companies here they’d like to merge with to go public,” said Fawad Tariq-Khan, head of investment banking at Dubai-based SHUAA Capital.”
“The UAE’s equity markets have not seen sizeable IPOs over the past few years”
“Companies have for many years deserted their home markets for listings in London, which offers deeper liquidity and a path to join the benchmark FTSE indexes.“
“The UAE recently introduced a raft of reforms, such as a cut in trading fees, aimed at making its equity markets more attractive.”
“Abu Dhabi-headquartered Anghami, the Middle East’s rival to Spotify, recently announced it was merging with a SPAC.”
“Trading volumes have declined substantially on local bourses from highs seen in 2014. Total traded value in the UAE has slumped by 74 percent since 2014 to 127.5 billion dirhams ($34.7 billion) last year.”
Abu Dhabi’s Wealth Funds Weigh Turkey Investments Worth Billions – Bloomberg
– Wealth funds in Abu Dhabi are on the prowl in Turkey, scouting for targets for billions of dollars in investments, according to people familiar with the matter.
– The interest preceded a breakthrough phone conversation in August between Abu Dhabi Crown Prince Sheikh Mohammed Bin Zayed Al Nahyan and Turkish President Recep Tayyip Erdogan, amid increasing signs of a thawing of relations.
– Among funds eyeing Turkish investments in recent weeks are Abu Dhabi Investment Authority, or ADIA and ADQ.
– ADQ alone is considering spending as much as $1 billion on healthcare and fintech targets.
Read more.
Abu Dhabi Fund Mubadala Capital Buys Major Taco Bell Franchisee – Bloomberg
– Mubadala Capital, the fund’s asset management arm, bought K-Mac Holdings Corp. from Lee Equity Partners Opportunities Fund, according to a statement on Thursday. Financial terms weren’t disclosed. K-Mac operates some 300 fast-food Taco Bell outlets that are primarily located in the country’s Midwest and South.
– The deal reflects Mubadala Capital’s foray into the food and beverage sector, where it invested about $1.8 billion in the past seven years alone.
– It also underlines the buyout division’s U.S. focus, a destination for about 80% of its capital, said Adib Martin Mattar, who heads private equity at Mubadala Capital.
Read more.
BlackRock-Led Group Wins $15.5 Billion Saudi Aramco Pipeline Deal – Bloomberg
– The consortium will buy a 49% stake in a new entity that holds 20-year leasing rights over pipelines carrying Saudi Aramco’s gas across the country.
– The deal, announced by Aramco on Monday, is part of Saudi Arabia’s drive to sell assets and use the money to fund new industries from artificial intelligence to electric vehicles, while also increasing output of both oil and gas.
– Bloomberg reported last month that BlackRock was among the firms that bid for the gas pipelines. Others included EIG, Italian infrastructure firm Snam SpA and China’s state-backed Silk Road Fund Co.
– Expectations that the world can move quickly to renewable sources of energy are “deeply flawed,” Aramco CEO Amin Nasser said Monday in Houston.
– Doing otherwise will lead to “energy insecurity, rampant inflation, and social unrest if prices become intolerably high,” he said.
Read more.
Energy
Masdar to build largest wind farm of Central Asia in Uzbekistan through capacity expansion – GCC Business News — www.gccbusinessnews.com
“Last year, Masdar made bilateral agreements with the Government of Uzbekistan, to develop, build and operate the wind farm project and the current expansion will make it the largest wind farm in Central Asia and attract foreign direct investments of more than $600 million into the country.”
“The 500 MW wind farm is expected to start functioning by the end of 2024.”
India’s Reliance Agrees to Build $2 Billion Petrochemical Plant in UAE – Bloomberg
– Abu Dhabi National Oil Co. and Reliance are looking to turn hydrocarbons into products that will help them tap consumer demand for plastics.
– The collaboration will see the establishment of a joint venture at Ta’ziz, the chemicals and industrial complex under development at Ruwais.
Read more.
Manufacturing
Lebanon-based BanoPuratos eyes operational expansion in Sharjah – GCC Business News
– Lebanon-based leading manufacturer of raw materials, utensils, and machinery for the food industry, BanoPuratos is planning to double its monthly production capacity from 300 tons to 600 tons and increase its list of products from 45 to 150 during the upcoming year 2022.
– Founded in 1995, BanoPuratos was established in Lebanon under the name of Bano, and the company signed a joint-venture agreement in 2019 with the Belgian Puratos Group and since then it was renamed Bano Puratos. It is now operating in Lebanon, the UAE, Kuwait, Saudi Arabia, Oman, Bahrain, and Jordan.
Read more.
Trade
Mubadala, Bpifrance enter into Africa-focused co-investment partnership – GCC Business News
– The agreement, which was confirmed on the occasion of the 13th session of the UAE-France Strategic Dialogue, will facilitate the deployment of up to $414.73 million through fund and direct investments in private equity and venture capital, with a focus on high-growth African startups, SMEs and mid-caps.
– The duo has had a strong relationship since the launch of the French Emirati Fund in 2014 and the Innovation Partnership in 2017 with nearly $1.18 billion of joint investments in French companies (directly and through funds), and a $1.18 billion commitment by Mubadala into Bpifrance’s flagship Lac1 Fund dedicated to listed French multinationals.
Read more.
UAE, Japan to launch business council
“Al Zeyoudi said that the partnership between the UAE and Japan is reflected by positive economic indexes, with the value of Japanese direct investments in the UAE since the start of 2020 totalling $4.01bn, a growth of 22.6 per cent from 2015 until 2020.”
“Japan is ranked tenth globally among the list of countries investing in the UAE, and eighth globally in terms of non-oil trade, which reached $8.95bn in the first ten months of 2020, he added.”
Read more.
UAE launches talks on Comprehensive Economic Partnership Agreement with India – GCC Business News
– The Emirates and India are considering a Comprehensive Economic Partnership Agreement (CEPA) that could increase non-oil trade between the two countries to $100 billion in five years.
– Dr Ahmed AlBanna, UAE Ambassador to India commented “Besides trade, we are keen to augment investment flows and lead the world by example.”
Read more.
UAE- Iraq to sign agreement to nourish and secure the trade ties
– The pact, signed by the UAE Ministry of Finance and Iraq’s National Investment Commission, will boost foreign investment in both countries by providing a suitable investment environment and secure a balance between rights and obligations between investors and the host country, the ministry said in a statement on Tuesday.
– Earlier this month, UAE energy company Masdar signed a deal with Iraq’s Ministry of Electricity and National Investment Commission to build power stations in five locations across Iraq.
– The pact also protects both countries’ investments from all non-commercial risks, including nationalisation, confiscation, judicial seizures and freezing.
Read more.
HealthCare
Why the Swiss medical tourism sector is looking to tap into the GCC
Switzerland’s robust healthcare system is among the best in the world. According to a 2018 Euro Health Consumer Index (EHCI) ranking which surveyed 35 European countries, the Alpine nation came out on top with 893 out of a total of 1,000 points.
Foreign patients represent around 2 per cent of total patients at Swiss hospitals.
Wettstein says
The main treatments solicited by foreign patients are in the oncology, cardiology, orthopaedics and rehabilitation categories.
The main source countries for these foreign patients, according to Wettstein, are the GCC region, Russia (including the former Commonwealth of Independent States) and EU countries.
Read more.
Real Estate
UAE allows property brokerage firms to be 100% owned by foreign nationals | Property – Gulf News
– Property brokers will be able to have full ownership of their companies in the UAE from now on, as this business activity has been removed from the ‘restricted list.’
– What the change means is that a property brokerage firm can be 100 per cent owned by a foreign national through a local UAE national is required to act as a service agent,” said Atik Munshi, Managing Partner at the consultancy Enterprise House UAE.
Read more.