🪽Flying cars

Read time: 5.5 minutes

Good morning, ☀️

Abu Dhabi Finance Week ends, Dubai Taxi’s IPO oversubscribes 130 times over, and firms with AED 1.65 trillion in AUM setup in Abu Dhabi. Plus, investors go wild for stock in a flying car company. 

Here’s what else we have for you today:

• Binance founder pleads guilty and is denied going home to the UAE

• UAE and Korea collab to help tech start ups

• Luxury living on Yas Island, Abu Dhabi

• Rest in Peace, Charlie Munger

Let’s dive in.

Markets 📈 

Money Brief 💰

A roundup of the biggest deals in the UAE this week.

Looking Ahead:

• The UAE is expected to announce a new $30 billion climate-focused investment fund at COP28, lead by UAE financing, joined by BlackRock, TPG, and Brookfield, to be overseen by UAE-backed Lunate Capital (RTR)

• S&P Global’s United Arab Emirates PMI release on Dec 6 forecasted to decline from 57.7 to 57.2 from the previous month

Earnings:

• ENBD REIT announces a 9.6% increase in half-year earnings to September, reaching AED 60.6M in sales (END)

VC:

• Immensa, a Dubai-based additive manufacturing and digital inventory platform, raises AED 73.4M in Series B financing led by Global Ventures and joined by Endeavor Catalyst, EDGO, Energy Capital Group, Shorooq Partners, and Green Coast Investments (TC)

• Raha, a logistics tech company that has recently expanded to the UAE, has successfully completed its pre-Series A funding round at AED 25.7M (MSW)

• Turkish startup Salus secures AED 17.2M for its personalized mental health platform, with investment from Dubai-headquartered Wamda Capital (TEU)

• UAE-based Modus Capital invests AED 10.3M in 8 startups through its Venture Builder platform (WAM)

M&A / Investments:

• UAE's Pure Health acquires Dubai IT firm PureCS amid IPO preparations (TNN)

• Fleeto, a Dubai-based logistics tech company, raised an undisclosed amount in its first investment round from private investors (ZWY)

IPOs:

• Dubai Taxi received over AED 150B in investor orders for its AED 1.2B IPO, oversubscribing by 130x (BB)

Partnerships / Projects:

• ADNOC and Australia’s Santos have signed a strategic collaboration agreement concerning potential development of a joint global carbon management platform (OFS)

• XSPACE partners with Dubai-based HotDesk to boost coworking space network in Saudi Arabia (LIN)

• Hub71 in Abu Dhabi has partnered with the Seoul Metropolitan Government to assist tech startups in the UAE and South Korea in their international growth and commercial activities (TFT)

• Wio partners with Fuze, two Abu Dhabi based fintech companies, to expand retail investing capabilities in the UAE (ZWY)

Personnel

• Ed Aylward joined the UAE’s new General Commercial Gaming Regulatory Authority as Head of Investigations, which is discreetly expanding its team before officially announcing the introduction of casinos. (SKF)

Crypto / FX: 

• Central Banks of UAE and China renew AED 18.9B currency swap agreements (TNN)

  Binance founder Changpeng Zhao’s request to return to his UAE home is denied after he pleaded guilty last week to US criminal charges (FC) 

• Binance scandal won’t rock UAE but Raymond Kisswany, a partner at the Dubai-based Davidson & Co Law Firm, says it’s “a significant blow” to the crypto industry’s global reputation (AGBI)

• Dubai’s LandRocker launches token sale, through both traditional cards and cryptocurrencies (YF)

Real Estate: 

• UAE-based property technology company Silkhaus will expand into Saudi Arabia, with an eye on short-term rentals (AB) 

Abu Dhabi Snapshot: Investment in Abu Dhabi real estate has been hot in the first 9 months of the year, up 56%. The value of transactions comes in at AED 67.76B. 70% more residents have bought during this period, with a whopping increase of 124% of non-residents investing. 

Just in the Q3 2023 period, residential projects have been unveiled in Yas Island, Al Reem Island, Yas Bay, Ghantoot and Saadiyat Island. (Source)

What You Get: AED 2,000,000 for a 2-bedroom apartment for sale on Yas Island, Abu Dhabi 🏖️ 

This 2 bedroom, 2 bathroom luxury apartment on Yas Island has a balcony and stunning views. The property includes a beach club, pools, co-working spaces, yoga pods, dining options, a gym, and a private cinema. (Source)

• Size: 1,293 square feet

• Asking price per square foot: AED 1592

Golden News 👑

Stock in flying car company, Archer Aviation, soars 230%

Investors around the world have noted Archer Aviation’s remarkable year-to-date stock surge. Its collaborations with Air Chateau International (the first and only private helicopter operator company in the UAE) and the Abu Dhabi Investment Office reinforce investor confidence in the company’s potential. 

With Dubai’s goal of having flying taxis by 2026, it’s not surprising there’s been so much interest. 

Details:

• Archer Aviation recently introduced a four-passenger electric vertical take-off and landing (eVTOL) aircraft.

• Strong demand: the company has been able to ink an MOU for pre-orders for the above model. 

• International operations are expected to begin in 2026.

Why it matters:

With an AED 2.2B liquidity buffer, Archer is expanding with global partnerships, including with the UAE. This company is one to watch for UAE investors assessing growth potential and transformative developments in the aviation sector. And who doesn’t want to see flying cars?

14 firms representing AED 1.65T in assets confirm operations in Abu Dhabi

Abu Dhabi Global Market has confirmed that 14 leading financial institutions, representing over AED 1.65T in assets under management, have established operations in Abu Dhabi within just one week.

Details:

• Among the institutions setting up in Abu Dhabi are the AED 529B asset manager NinetyOne, the independent financial services group Rothschild & Co, AED 387B asset manager GQG Partners, AED 220B hedge fund TCI, and social trading platform eToro.

• This wave of establishments is part of Abu Dhabi’s "Falcon Economy," which has seen 23 market announcements during Abu Dhabi Finance Week, including major operational upgrades by The World Bank and JP Morgan.

Why it matters:

This move marks a major milestone in Abu Dhabi's rise as a global financial center, receiving praise from renowned global leaders like Jamie Dimon, Ray Dalio, and Alan Howard. The influx of these institutions positions the emirate as a formidable player in the international finance arena, challenging established financial hubs worldwide.

Abu Dhabi's net asset position hits 336% of GDP

Abu Dhabi’s fiscal position looks stable for the next 2 years, due to proactive policy making and positive hydrocarbon sector assumptions.

Details:

• S&P Global Ratings affirms AA/A-1+ sovereign credit ratings.

• Abu Dhabi’s real GDP grew 9.3% in 2022 to AED 1.14T. Although expecting a mild contraction of 0.4% in 2023, S&P estimates it’ll rebound 4.5% in 2024 to AED 1.09T.

• S&P does not expect the government to require deficit financing over the period to 2026. 

Why it matters:

This sunny outlook indicates a financially stable environment and resilient economy. Investors who prioritize low-risk environments may be attracted to Abu Dhabi's strong net asset position and the government’s proactive fiscal policies.

Dubai’s Q3 earnings soar 35.8% to defy regional trends

Kamco Invest’s GCC Corporate Earnings Report: Q3 2023 reports that Dubai-listed companies have reached a 35.8% year-on-year growth. This during a regional decline of quarterly profits of other GCC-listed companies.

Details:

• The combined profit of companies listed on the Dubai Financial Market in Q3 hit AED 21.3B from AED 15.8B.

• This was driven by a broad mix of banks, real estate and utilities companies, with those 3 sectors making up 90.7% of the aggregate earnings.

• Capital goods and the food & beverages sectors both saw a decline in profits.

Why it matters:

Standout earnings serve as compelling cues for UAE-based investors, signaling opportunities in specific sectors that outperformed regional trends. Noteworthy statistics by sector include year-on-year increases in banking at 30.1%, transport at 12.9%, and utilities at 6.1%.

Expat Wallet 💸 

We’ve covered some of the new corporate tax changes in previous editions, but now we want to help you understand the criteria for tax residence rules in the UAE.

Senior wealth planner – Middle East, Joëlle de Cerjat Santa Cruz, gives us the lowdown on who’s eligible.

For individuals: To be considered a tax resident in the UAE, there are minimum time limits starting at 90 or 183 days, depending on nationality. What has changed is that there is now a full evaluation of each person’s situation and their economic activities, rather than a simple eligible/non-eligible status based on length of time in the country.

For legal entities: The new corporate income tax act states that to be a legal entity, companies must have been incorporated, formed or recognized in the UAE, or be effectively managed and controlled from the country. 

Some income earned from trading things like metals, minerals and energy on recognized stock exchanges is tax exempt.

For double taxation agreements (DTAs): To avoid double taxation between the UAE and your home country, these bilateral agreements determine how taxes are allocated between the countries. The UAE has signed DTAs with more than 130 countries.  

(Source 1, source 2 and list of countries the UAE has signed DTAs with)

Rest in Peace, Charlie Munger

Much will be said about the legendary investor, architect, and philanthropist whose wisdom and humor inspired a generation of leaders. Rather than attempting to add our own thoughts, we’ll let the man speak for himself.

That’s all for now! Wishing you a Happy UAE National Day this weekend.

See you in your inbox with more updates next week 👋🏾

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