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The UAE energy giant ADNOC launches XRG, an $80 billion lower-carbon energy and chemicals investment company, aiming to redefine global energy markets and double its value within a decade. The UAE considers an EU-inspired pollution penalty system, potentially revolutionizing its environmental policies and solidifying its regional leadership in climate action. Ras Al Khaimah surpasses Dubai and Abu Dhabi as the UAE’s top city for expatriates, excelling in affordable living and administrative ease, according to InterNations’ 2024 Expat City Ranking.

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🚀 ADNOC Unveils XRG: A $80 Billion Global Energy and Chemicals Leader

📰 What is it about?

• ADNOC’s Vision: The Abu Dhabi National Oil Company (ADNOC) launched XRG, a transformative $80 billion global investment company focused on lower-carbon energy and chemicals.

• Strategic Goals: XRG is set to leverage ADNOC’s expertise in energy and investments, initially focusing on three platforms: Global Chemicals, International Gas, and Low Carbon Energies.

• Bold Aspirations: With operations starting in Q1 2025, XRG targets more than doubling its asset value within a decade, aiming to address surging global energy and chemical demands.

💡 Why it matters?

• Global Chemicals: XRG seeks to rank among the top five global players, meeting a projected 70% increase in global chemical demand by 2050, essential for modern life.

• International Gas: With natural gas demand expected to rise 15% and LNG demand 65% by 2050, XRG’s focus positions it as a key driver in the transition to cleaner fuels.

• Low Carbon Energies: Tackling the growing need for decarbonization, XRG aims to lead markets like low-carbon ammonia, predicted to expand to 70-90 million tonnes annually by 2040.

🔜 What’s next?

• Operational Launch: XRG will begin formal activities in Q1 2025, driving its strategic agenda with sustainability at its core.

• Global Strategy Day: A high-profile event in 2025 will outline XRG’s roadmap, engaging global stakeholders in its vision for transformational growth.

• ADNOC’s Commitment: Dr. Sultan Ahmed Al Jaber reiterated ADNOC’s pledge to deliver sustainable economic growth and maintain the UAE’s leadership in global energy markets.

📈 Markets

🌍 UAE Eyes EU-Style Pollution Penalties: A Regional Climate Game-Changer

📰 What is it about?

• Bold Initiative: The UAE is exploring the introduction of a pollution-charging mechanism to incentivize businesses to curb greenhouse gas emissions.

• Proposed Systems: Options include:

  1. Cap-and-Trade: Inspired by the EU’s Emissions Trading System.

  2. Carbon Tax: Targeting companies emitting over 25,000 tons of CO₂ annually.

  3. Auction System: Modeled on Germany’s approach to taxing heating and transport fuels.

• Measuring Progress: A greenhouse gas measurement and certification system is under development, expected by January 2025.

💡 Why it matters?

• Leadership on Climate Action: This move underscores the UAE’s intent to lead regional efforts against climate change, aligning with its global commitments post-COP summit in Dubai.

• Economic Balancing Act: While the proposal highlights sustainability, critics fear it could affect the UAE's attractiveness as a corporate hub due to added regulatory costs.

• Market Liquidity Concerns: Experts stress the need to enhance the liquidity of the UAE’s carbon market to ensure the system’s effectiveness.

🔜 What’s next?

• Policy Deliberations: The UAE Ministry of Climate Change and Environment is weighing the feasibility of the proposed mechanisms.

• Implementation Framework: By January, the UAE aims to finalize its greenhouse gas certification system, laying the groundwork for robust carbon tracking.

• Global Positioning: If implemented, these policies would establish the UAE as a Middle Eastern trailblazer in climate regulations, setting a precedent for other nations in the region.

💭Quote of the day
“First, think. Second, believe. Third, dream. And finally, dare.” - Walt Disney, Animator and film producer

🌍 Ras Al Khaimah Outshines Dubai as Top UAE Destination for Expats

📰 What is it about?

• Ras Al Khaimah Shines Globally: Ranked 6th in the 2024 Expat City Ranking by InterNations, surpassing Abu Dhabi (9th) and Dubai (10th). It leads in ease of settling in and affordability.

• Global Context: Spanish cities Valencia, Malaga, and Alicante claimed the top three spots, while cities like Vancouver and Munich ranked poorly.

💡 Why it matters?

• Expat Essentials: Ras Al Khaimah ranks 2nd globally for affordable housing and tops the index for ease of settling in, with 72% of respondents finding housing easily (versus 45% globally).

• Ease of Administration: All three UAE cities dominate the Expat Essentials Index for seamless administration and digital access to government services.

• Quality of Life: While RAK excels in affordability, Abu Dhabi and Dubai lead in healthcare, infrastructure, and lifestyle quality.

🔜 What’s next?

• Strengthening Appeal: The UAE’s legal reforms, like Golden and Green Visas, continue to attract skilled workers and entrepreneurs.

• Focus on Mobility: Addressing public transportation gaps in Ras Al Khaimah could elevate its standing further.

• Cultural Integration: Continued enhancements in leisure and cultural offerings will solidify the UAE’s position as a top global destination for expatriates.

🔍In other news…

1. Abu Dhabi to introduce mandatory nutri-mark system for healthier food choices.

2. “Technologies that exclude women in design and production will not lead to a better future,” Turkish First Lady Emine Erdogan told Global Women’s Forum in Dubai.

3. Abu Dhabi-based venture capital firm Shorooq Partners has partnered with the 1 Billion Followers Summit to provide AED 50 million in funding for the 1 Billion Pitches competition.

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