Marhaba folks! 🌟

Today we will discuss,

• 🇸🇦 Monks Relocates Middle East HQ to Saudi Arabia from Dubai 🌍

• 🌍 ADNOC's €14.4 Billion Bid for Covestro: Europe's Biggest Takeover of 2024 🚀

• ✈️ Etihad Airways Eyes IPO by 2025: A Strategic Move for Abu Dhabi’s Growth 🌍

Let’s dive in!

🇸🇦 Monks Relocates Middle East HQ to Saudi Arabia from Dubai 🌍

📰 What is it about?

• Monks, the operating brand of S4 Capital founded by British advertising tycoon Martin Sorrell, is moving its Middle East headquarters from Dubai to Riyadh.

• The move includes opening a new office in Riyadh to provide advertising solutions for various sectors in Saudi Arabia, including start-ups, educational institutions, and the kingdom's giga projects.

• The relocation aligns with Saudi Arabia's new headquarters programme that mandates foreign businesses to establish their regional HQs within the country to bid on government contracts.

💡 Why it matters?

• Reflects Monks' confidence in Saudi Arabia’s potential as a hub for innovation and business in the region.

• Marks a strategic shift influenced by Saudi Arabia's push to attract more international companies to set up operations locally.

• Positions Monks to capitalize on new business opportunities in Saudi Arabia's rapidly growing market, particularly through its government and mega projects.

🔜 What’s next?

• Monks will focus on expanding its client base in Saudi Arabia and engaging in key sectors to support the kingdom's ambitious projects.

• The move may lead other international firms to consider relocating to Saudi Arabia, enhancing its status as a regional business center.

• Monks will likely strengthen its presence and offerings in the region, leveraging the growth and innovation in the Saudi market.

📈 Markets

🌍 ADNOC's €14.4 Billion Bid for Covestro: Europe's Biggest Takeover of 2024 🚀

📰 What is it about?

• ADNOC, the Abu Dhabi state oil giant, is preparing to make a formal offer to acquire Covestro, a German polyurethane producer, for €14.4 billion ($16 billion).

• The offer includes debt and follows over a year of negotiations. The deal could become Europe’s largest takeover this year.

• Sultan Al Jaber, ADNOC’s CEO, was in Germany in August to finalize the details of the deal.

💡 Why it matters?

• The acquisition would be one of the largest cash transactions ever in the chemical sector and the first Dax 40 company purchased by a Gulf state.

• Covestro’s expertise in foam chemicals places it at the center of energy transition trends, making it a valuable asset for ADNOC’s strategic goals.

• The deal underscores ADNOC's ambition to expand its global presence and diversify its investments beyond oil.

🔜 What’s next?

• ADNOC is expected to formally submit its offer, which will be closely watched by industry observers.

• If accepted, the acquisition will impact the chemical sector and potentially set new benchmarks for cross-border deals.

• Covestro’s integration into ADNOC’s portfolio will likely accelerate the company’s involvement in the energy transition and sustainable technology sectors.

Quote of the day
“Business opportunities are like buses, there’s always another one coming.” -Sir Richard Branson.

✈️ Etihad Airways Eyes IPO by 2025: A Strategic Move for Abu Dhabi’s Growth 🌍

📰 What is it about?

• Etihad Airways plans to launch an Initial Public Offering (IPO) no earlier than 2025, aiming to become the first major Gulf airline to go public.

• The decision follows a strong 2024 financial performance and considers geopolitical instability in the region.

• ADQ, the sovereign wealth fund owner, aims to capitalize on Etihad’s growth under its “Journey 2030” strategy to strengthen Abu Dhabi's position as a global travel hub.

💡 Why it matters?

• The IPO is expected to attract investors by showcasing robust financials, with Etihad reporting a 48% increase in half-year profits and a 38% rise in passenger numbers.

• It aligns with Abu Dhabi’s broader economic diversification plans and the UAE's ambition to become a leading global travel hub.

• The move would add to the wave of regional IPOs as Gulf countries seek to privatize state assets and reduce reliance on oil revenues.

🔜 What’s next?

• Etihad is working on improving transparency, governance, and its balance sheet to be IPO-ready if ADQ opts to proceed.

• The airline plans to expand to over 125 destinations and increase its fleet size to more than 160 aircraft by 2030.

• A potential IPO of Etihad will be closely monitored, especially as other regional airlines like Emirates and Flynas also consider public listings.

In other news…

1. Jordanian-American Amjad Masad-founded Replit has an AI agent who can turn conversation into software.

2. PGIM, with $1.33 trillion AUM, chooses Abu Dhabi to set up first office in Middle East.

3. Air Taxis are coming to Dubai sooner than you think!

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