Good morning, wonderful people. The newsflow is only picking up as we near the end of the week, with tons of news from Adnoc and G42, as well as updates on several M&As we’re following.

BUT FIRST- Emirates Islamic’s sustainability sukuk was 2.8x oversubscribed: Emirates Islamic raised USD 750 mn from its debut five-year senior sustainability-linked sukuk, with over USD 2.1 bn in orders, Wam reports. The order book was 2.8x oversubscribed, allowing the lender to tighten the net income rate to a little over 5.4% annually, at a spread of 100 basis points (bps) over US treasuries. The sukuk is part of a broader USD 2.5 bn certificate issuance program.

ICYMI- The lender was on track to raise USD 750 from its debut sustainability-linked sukuk earlier this week, after the issuance attracted some USD 1.9 bn in orders. The lender narrowed the price guidance for the five-year sustainability sukuk to 100 bps from an initial price guidance of 130 bps over US Treasuries.

AND- The Central Bank of the UAE’s (CBUAE) AED-denominated T-Sukuk auction was 8.9x oversubscribed, pooling AED 9.81 bn in bids, Wam reports, citing the Finance Ministry. The three- and five-year tranches saw strong demand, with the T-Sukuk sold at 5 bps over US treasuries.

Background: The CBUAE launches regular AED-denominated Shariah-compliant sukuk auctions in a bid to strengthen the local currency’s yield curve in capital markets. More information on the program is available here.

HAPPENING TODAY-

#1- Pakistani Prime Minister Shehbaz Sharif will be in the UAE today on his first visit since his election, the Pakistani embassy in the UAE said on X. A delegation of key cabinet ministers will join him as he meets UAE President Mohamed bin Zayed Al Nahyan, with the two heads of state expected to discuss cooperation on trade and investment. The PM will also likely hold meetings with other Emirati “dignitaries, businesspersons, and heads of financial institutions.”

#2-CABSAT is on its second day at the Dubai World Trade Centre, before wrapping tomorrow. The three-day event will welcome over 18k industry professionals and media markets to explore business prospects across content, broadcast, satellite, media, and entertainment.

HAPPENING NEXT WEEK-

#1- President Sheikh Mohamed bin Zayed Al Nahyan will head to South Korea on a two-day visit next Tuesday, 28 May, at the invitation of South Korean President Yoon Suk Yeol, Wam reports. The state leaders will discuss ramping up cooperation in trade, investment, energy, and technology, in addition to regional and international developments.

#2- CBUAE will hold AED 15 bn m-bill auction: The Central Bank of the UAE (CBUAE) will auction four m-bills worth up to AED 15 bn Monday, 27 May, according to a statement (pdf). Three of the m-bills are tap issuances, with the four having tenors ranging from 28 to 280 days.

Decoding central bank speak: M-bills are short-term securities issued in AED by the CBUAE at no interest. The bonds typically have maturity dates of one to 12 months and are not retrievable through any other listing. A tap issuance allows the CBUAE to more finely control money supply by allowing it the flexibility to continue selling bills past the initial auction date.

WATCH THIS SPACE-

#1- Growing domestic consumption and the increased use of modern technologies will see the UAE continue to grow this year, Chief Investment Officer for the Global Family and Institutional Wealth at UBS Maximilian Kunkel said on the sidelines of a roundtable, according to Wam. The roundtable came ahead of the launch of the UBS Global Family Office report (pdf).

The UAE is reaping the benefits of expanding support for startups, Kunkel noted, highlighting the growth of startups in fields such as technology and innovation, which has drawn interest from international investors.

#2- Alpha Dhabi u-turns on Metito acquisition: Investment holding company Alpha Dhabi has called off its plan to acquire a majority stake in Dubai-based utility Metito Holdings, after terminating talks without citing the reason, the firm said in a disclosure (pdf).

Background: Alpha Dhabi Holding had planned to acquire a majority stake in water management solutions provider Metito in September 2023. The transaction —which was pending regulatory approvals at the time — aimed to help Metito finance its plans to expand its smart water solutions across the MENA region.

#3- UAE vows to prioritize safety in AI development: State AI group G42 and Abu Dhabi’s Technology Innovation Institute pledged to ensure the secure advancement of their AI models, as part of a landmark international agreement on AI safety signed during the Seoul AI Safety Summit.

AI developers have committed to releasing safety frameworks detailing how they will tackle challenges in their cutting-edge models, including preventing misuse, CNBC reports. These frameworks will establish red lines for risks like cyberattacks and bioweapon threats, with plans for a “kill switch” if mitigation fails.

#4- The Zayed National Museum Abu Dhabi and Guggenheim Abu Dhabi are slated for completion by next year, the National writes. Abu Dhabi’s tourism department has announced that construction of all key “assets” in the Saadiyat Cultural District is nearly finished, which includes the Natural History Museum Abu Dhabi and team Lab Phenomena Abu Dhabi.

#5- Gov’t to introduce incentives for green industrial practices? The Federal National Council (FNC) has proposed establishing new regulatory packages, including incentives and exemptions for green economic and industrial activities, with an eye to supporting economic growth and sustainability, Wam reports. The recommendations also include a proposal to improve the legislative framework to support the industrial sector, which contributed AED 197 bn to the economy in 2023.

What’s next? The FNC’s recommendations will be reviewed by the Financial, Economic, and Industrial Affairs Committee ahead of being resubmitted for approval and forwarded to the government.

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THE BIG STORY ABROAD-

One story is on every front page this morning: AI darling-of-the-moment Nvidia.

The chipmaker’s 1Q 2024 earnings showed that sales had more than tripled to USD 20 bn, topping analyst estimates and prompting many of them to suggest that the AI boom has legs. Net income was up almost 7x — sending its stock to a record USD 1,004 in after-hours trading.

Why does it matter? “Nvidia’s results have become a way for investors to gauge the strength of the AI boom that has transfixed markets in recent months,” CNBC writes.

MEANWHILE- Saudi Arabia and the US could be “weeks away” from a wide-ranging set of accords that Washington hopes will pave the path for Riyadh to normalize relations with Israel. On the agenda are pacts on security and defense and nuclear power, Reuters reports, while EnterpriseAM Saudi also expects there to be an agreement on artificial intelligence and advanced technologies.

AND- Ireland, Norway, and Spain have said they will formally recognize the state of Palestine. The Irish Times has more.

ALSO- An early UK general election: A very wet UK Prime Minister Rishi Sunak called a general election for 4 July, ending months of speculation about when he would make the call. The elections are likely to mark a turning point in the UK government, with the Conservatives likely to lose to the opposition Labour Party — this would mark the end of a 14-year of Conservatives in power. (Reuters | The Guardian | AP)

WORTH READING THIS MORNING- Reuters is out with an investigative piece on how wealthynations are capitalizing on climate funding to developing nations, while the Wall Street Journal looks at the highest-paid CEOs in America last year.

CIRCLE YOUR CALENDAR-

The Make it in the Emirates Forum is set to take place from 27-28 May at the Abu Dhabi Energy Center. The forum, which is organized by the Industry and Advanced Technology Ministry, brings together local and international decision-makers, government officials, private companies, investors, and financing institutions to support industrial growth and investment.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

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