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Abu Dhabi Reports 7.7% Growth in Non-Oil GDP in Q3

A general view of Abu Dhabi, UAE. (WAM)
A general view of Abu Dhabi, UAE. (WAM)
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Abu Dhabi Reports 7.7% Growth in Non-Oil GDP in Q3

A general view of Abu Dhabi, UAE. (WAM)
A general view of Abu Dhabi, UAE. (WAM)

The UAE capital Abu Dhabi posted third-quarter non-oil gross domestic product (GDP) growth of 7.7% in comparison to the same period in 2022, revealed the Statistics Center - Abu Dhabi (SCAD).

Preliminary estimates released by SCAD reveal that most non-oil activities have sustained growth rates, contributing 52.8% to the overall economy.

Despite fluctuations in the oil and gas global markets, Abu Dhabi's economy continues to exhibit promising prospects.

Ahmed Jasim Al Zaabi, Chairman of the Abu Dhabi Department of Economic Development (ADDED), said: “The consistent stellar growth of Abu Dhabi’s economy is solid proof of its resilience and the effectiveness of our approach to turn headwinds into tailwinds during this challenging time as the global economy is witnessing major shifts that impact different markets and industries around the world.”

“These results, with a 2.8% growth in real total GDP and an impressive 8.6% rise of non-oil GDP during the first 9 months of 2023, reaffirm our strong foundation and robust frameworks, paving the way for the Falcon Economy to soar further and farther.

Backed by ongoing diversification strategic programs, growing engagement of the private sector, and initiatives to attract more quality FDIs and DDIs, Abu Dhabi is cementing its status as preferred destination for talents, investments, and businesses,” according to Al Zaabi.

Abdulla Alqemzi, Acting Director General of the Statistics Centre - Abu Dhabi, said: “The third-quarter statistical indicators reflect the economic resilience of the Emirate of Abu Dhabi and showcase consistent growth since the second quarter of 2021.”

“This growth is attributed to the expanding non-oil activities, mitigating the impact of the global slowdown in oil-related activities. The statistical figures affirm the emirate's proactive efforts to diversify the economy and promote the growth of non-oil sectors,” added Alqemzi.

Manufacturing activities, which is a leading non-oil activity, reached a value of AED26.3 billion ($7.1 billion), contributing over 17% to the non-oil GDP and 9% to the overall GDP in the third quarter of 2023. This underscores the continued success of diversification initiatives.

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Business

Deal to Export Oil from Kurdish Region to Continue with No Issues, Kurdish Rudaw Reports

A staff at an oilfield holds the flag of Kurdistan. (X)
A staff at an oilfield holds the flag of Kurdistan. (X)
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Deal to Export Oil from Kurdish Region to Continue with No Issues, Kurdish Rudaw Reports

A staff at an oilfield holds the flag of Kurdistan. (X)
A staff at an oilfield holds the flag of Kurdistan. (X)

Kurdistan broadcaster Rudaw quoted the ​vice president of Iraq's state oil company SOMO as saying ‌on Saturday that ‌the ‌oil ⁠export ​deal ‌between Baghdad and Erbil is set to be renewed with ⁠out issues, Reuters reported.

In September, ‌Iraq restarted ‍the ‍export of ‍oil from its Kurdish region to Türkiye after ​an interruption of more ⁠than two years following a deal between Baghdad and the Kurdish regional government.

Business

Musk Wins Appeal that Restores 2018 Tesla Pay Deal Now Worth about $139 Billion

FILE PHOTO: Elon Musk attends the Breakthrough Prize awards in Los Angeles, California, U.S., April 13, 2024. REUTERS/Mario Anzuoni/File Photo
FILE PHOTO: Elon Musk attends the Breakthrough Prize awards in Los Angeles, California, U.S., April 13, 2024. REUTERS/Mario Anzuoni/File Photo
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Musk Wins Appeal that Restores 2018 Tesla Pay Deal Now Worth about $139 Billion

FILE PHOTO: Elon Musk attends the Breakthrough Prize awards in Los Angeles, California, U.S., April 13, 2024. REUTERS/Mario Anzuoni/File Photo
FILE PHOTO: Elon Musk attends the Breakthrough Prize awards in Los Angeles, California, U.S., April 13, 2024. REUTERS/Mario Anzuoni/File Photo

Elon Musk's 2018 pay package from Tesla, once worth $56 billion, was restored by the Delaware ​Supreme Court on Friday, nearly two years after a lower court struck down the compensation deal as "unfathomable." The ruling overturns a decision that had prompted a furious backlash from Musk and damaged Delaware's business-friendly reputation. It assures Musk greater control over the company, which he has said is his main concern, even after shareholders recently approved a new pay package that could be worth $878 billion if Tesla meets certain targets, Reuters reported.

The Supreme Court said a 2024 ruling that rescinded the pay package had been improper and inequitable to Musk. The remedy of total rescission "leaves Musk uncompensated for his time and efforts over a period of six years," the 49-page ruling issued on Friday stated.

The 2018 pay package is now worth about $139 billion based on the price of Tesla's stock at the close of trading on Friday. "For ‌Elon, this is ‌a win because he gets control faster," said Gene Munster, managing partner at Tesla ‌investor ⁠Deepwater ​Asset Management.

If Musk ‌exercises all the stock options from the 2018 package, his stake in Tesla would grow from about 12.4% to 18.1% of an expanded share base. The company is issuing shares tied to his new pay package, although he must earn them by hitting performance goals.

Tesla shares were up less than 1% in after-hours trading following the ruling.

Tesla did not immediately respond to a request for comment. Musk posted on X that he was "vindicated." Lawyers who challenged the pay package said in a statement that they were considering their next steps and were "proud to have participated in the historic verdict below, calling to account the Tesla board and its largest stockholder for their breaches of fiduciary duty." The pay package was by ⁠far the largest ever until Tesla shareholders approved the new pay plan in November. If Tesla’s appeal had failed, it could have triggered a $26 billion hit to profit over two ‌years to account for the replacement stock-compensation package it had promised Musk – at ‍today’s much higher stock price.

The 2018 pay deal provided Musk options ‍to acquire about 304 million Tesla shares at a deeply discounted price if the company hit various milestones, which it did. ‍The options represent around 9% of Tesla's outstanding stock. Musk never collected his stock options because soon after shareholders approved the 2018 compensation, the board was sued by Richard Tornetta, an investor with nine Tesla shares.

UNFRIENDLY TO BUSINESS?

In 2024, after a five-day trial, Delaware Judge Kathaleen McCormick concluded that Tesla's directors were conflicted and key facts were hidden from shareholders when they voted to approve the plan. She ordered that the 2018 plan be rescinded.

Musk ​accused Delaware judges of being activists who are hostile to tech founders and he urged businesses to follow Tesla and reincorporate elsewhere. Dropbox, Roblox, Trade Desk and Coinbase were among the handful of large companies that moved ⁠their legal homes to Nevada or Texas. However, Delaware remains by far the most popular legal home for U.S. public companies.

Tesla's board had warned that Musk, the world's richest person who also leads the SpaceX rocket venture and artificial intelligence startup xAI, could leave the electric car company if he did not get the pay he wanted and an increase in his voting power. The Delaware Supreme Court may have been reluctant to annul Musk's pay package because shareholders had overwhelmingly voted in favor of it, said Brian Dunn, director of the Institute for Compensation Studies at Cornell University’s School of Industrial and Labor Relations. "I think that there's some belief that maybe the courts shouldn't get between the shareholders and the decisions that they make," said Dunn. Shareholders approved the new pay package in November and Tesla has taken steps to reduce the risk that a shareholder could tie up the 2025 package in the courts.

The Austin-based company is now incorporated in Texas, which allows Tesla to require that any investor or group of investors must own 3% of the company stock before suing for an alleged corporate law violation. A ‌stake of that size would be worth around $30 billion and Musk is the only individual with that much stock.

Business

Maersk Tests Red Sea Route as Gaza Ceasefire Offers Hope

Containers are seen on the Maersk Triple-E giant container ship Majestic Maersk, one of the world's largest container ships, next to cranes at the APM Terminals in the port of Algeciras, Spain, January 20, 2023. REUTERS/Jon Nazca/File Photo P
Containers are seen on the Maersk Triple-E giant container ship Majestic Maersk, one of the world's largest container ships, next to cranes at the APM Terminals in the port of Algeciras, Spain, January 20, 2023. REUTERS/Jon Nazca/File Photo P
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Maersk Tests Red Sea Route as Gaza Ceasefire Offers Hope

Containers are seen on the Maersk Triple-E giant container ship Majestic Maersk, one of the world's largest container ships, next to cranes at the APM Terminals in the port of Algeciras, Spain, January 20, 2023. REUTERS/Jon Nazca/File Photo P
Containers are seen on the Maersk Triple-E giant container ship Majestic Maersk, one of the world's largest container ships, next to cranes at the APM Terminals in the port of Algeciras, Spain, January 20, 2023. REUTERS/Jon Nazca/File Photo P

Danish shipping company Maersk said that one of its vessels had successfully navigated the Red Sea and Bab el-Mandeb Strait for the first time in nearly two years, as shipping companies weigh returning to the critical Asia-Europe trade corridor.

The company stated that while it had no firm plans to fully reopen the route, it would take a "stepwise approach towards gradually resuming navigation" via the Suez Canal and the Red Sea. Maersk declined to further elaborate on its plans, according to Reuters.

Maersk ‌and rivals, ‌including Germany's Hapag-Lloyd , rerouted vessels around Africa's Cape ‌of ⁠Good ​Hope from December ‌2023 after Houthis attacked ships in the Red Sea in what they said was a show of solidarity with Palestinians in Gaza.

The Suez Canal is the fastest route linking Europe and Asia and until the attacks had accounted for about 10% of global seaborne trade, according to Clarksons Research.

CMA HAS MADE LIMITED PASSAGES THROUGH THE SUEZ CANAL

French shipping firm CMA CGM has already made limited passages through the Suez Canal when ⁠security conditions allowed, with other operators similarly exploring resumption plans. "Most carriers appear to be adopting a wait-and-see approach, monitoring ‌developments, and any meaningful reopening would likely unfold gradually," said ‍Nikos Tagoulis, analyst at Intermodal Group.

The potential ‍return of Maersk to the Suez Canal could ripple through the shipping sector, ‍where freight rates have risen because the alternative route added weeks to transit times between Asia and Europe. A recent ceasefire in the Gaza conflict has renewed hope of normalizing Red Sea traffic, though analysts note the fragility of the truce. "By the end of 2026, we estimate ​things will start to look like they were before the Houthis attack started," said Simon Heaney, a container industry analyst at Drewry Shipping Consultants. "The ⁠risk level has reduced, so they're prepared to test the waters. But the Houthis aren't particularly reliable." Maersk confirmed that one of its smaller vessels, Maersk Sebarok, had completed the first test transit through the Red Sea on Thursday and Friday, while stressing that no additional sailings were currently planned.

"Whilst this is a significant step forward, it does not mean that we are at a point where we are considering a wider East-West network change back to the trans-Suez corridor," it said.

Niels Rasmussen, chief shipping analyst at ship-owner association BIMCO, projected that broader resumption of Suez Canal transits could result in a 10% drop in ship demand.

"The possibility of a return to Suez Canal routings looms large over ‌the market outlook," he said in a note published on Thursday.