Good morning, friends. We have a busy issue for you today, packed with startup and investment news — plus some activity in the oil and gas sector.

THE BIG STORY here at home is Adnoc Gas’ AED 2 bn EPC contracts for its gas pipeline expansion project, Estidama. We also have news of a dip in activity in our construction sector.

BUT FIRST- Remember the Chevron oil tanker seized by Iran over a year ago? It’s now anchored near the UAE’s Khor Fakkan port, a week after its release, Reuters reports, citing ship tracking data. The vessel, Advantage Sweet, was seized by the Iranian navy in April 2023 following an alleged collision with an Iranian boat in the Gulf of Oman.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- WEATHER- Brace yourselves for a sweltering day: The mercury will hit 45°C in Dubai, with an overnight low of 35°C. Things will be a little cooler in Abu Dhabi, where temperatures will hit 36°C before cooling to 34°C overnight.

#2- Nigerians can now obtain visas to the UAE after a 21-month-long travel ban was lifted, Nigerian Information Minister Mohammed Idriss said on X yesterday. The move comes following talks between Emirati and Nigerian authorities, which culminated in “updated controls and conditions” to allow Nigerians to obtain UAE visas.

Background: The ban, implemented in 2022, came due to issues like an inability to repatriate funds from Nigeria, with airlines from both countries later halting flights. Emirates had already said it would resume flights to Lagos in May.

HAPPENING TODAY-

#1- Indonesian president is in town: Indonesian President Joko Widodo arrives in the UAE today for a two-day visit, during which he will meet with President Sheikh Mohamed bin Zayed Al Nahyan to discuss the economic partnership inked between the two countries in 2022 and enhancing bilateral cooperation across various sectors, Wam reports.

#2- A meet-and-greet event with US basketball legends Steve Smith and Alonzo Mourning will kick off today at the Etihad Arena in Abu Dhabi, according to an Abu Dhabi Media Office statement. The event, which takes place on the sidelines of the 2024 USA Basketball Showcase Games in Abu Dhabi being held from July 15-17, will also feature panel discussions, and will be attended by senior executives, exclusive players and coaches. Tickets can be purchased from Etihad Arena or Ticketmaster.

The Australian Boomers lost 98-92 to Team USA in the USA Basketball Showcase Abu Dhabi yesterday. The American team features top NBA players such as LeBron James, Stephen Curry, Jayson Tatum, Joel Embiid, and Kevin Durant. Team USA is set to compete against Serbia tomorrow.

WATCH THIS SPACE-

#1- The UAE raised some USD 1.3 bn from three IPOs in 1H 2024, accounting for 37% of total IPO proceeds in the GCC, the Kuwait Financial Center (Markaz) said in a report (pdf). This marks a decline of 67% y-o-y in terms of value. On the upside, the three IPOs — Parkin and Spinneys on the DFM and Alef Education on the ADX — were among the biggest five listings in the region.

GCC IPOs’ proceeds also fell 32% y-o-y to USD 3.6 bn, with Saudi Arabia accounting for the biggest number of listings with 19 offerings, according to the report. Healthcare IPOs accounted for some 22% of IPOs, while tech accounted for 14%.

REMEMBER- We have a healthy pipeline for the rest of the year: Etihad Airways and supermarket chain LuLu group have each tapped banks to advise on their planned IPOs on the ADX, while Alpha Dhabi is mulling a USD 200 mn IPO as soon as this year. Alpha Dhabi Holding’s CEO also pointed to plans to list some of the firm’s subsidiaries this year.

Over on the DFM, both construction firm Alec and hospitality group Five Holdings tapped advisors, and shisha producer Advanced Inhalation Rituals was said to be eyeing an IPO in 1H 2024. Amanat Holdings is looking to list either its education or healthcare unit, with reports that its healthcare unit could raise some USD 200 mn as soon as this year.

#2- UAE banks’ revenues are expected to have fallen 7% y-o-y in 2Q 2024 to AED 14.8 bn, driven by a surge in interest payments on deposits that might fail to offset the increased returns received from surging lending portfolios, according to analyst forecasts picked up by CNBC Arabia (watch, runtime: 4:23). UAE lenders’ net income is also expected to be dented by the introduction of the corporate tax and the upcoming interest rate cuts by the US Federal Reserve.

Emirates NBD is expected to record the highest bottomline among the UAE’s top five lenders in 2Q 2024, with a net income of AED 5.3 bn, down 14% y-o-y, followed by First Abu Dhabi Bank with AED 4 bn in net income, down 5% y-o-y.

Abu Dhabi Commercial Bank (ADCB) is anticipated to see the only increase in net income during the quarter, reaching AED 2.1 bn, posting a 7% y-o-y growth. CNBC attributed this growth to an increase in ADCB’s client deposits.

#3- UAE ins. companies' net incomes could also fall by up to 25% in 2Q 2024, on the back of unprecedented rains in April, leading to a “massive” increase in claims related to automobiles, villas, and commercial properties, with up to 100k vehicles damaged, Khaleej Times cites Lux Actuaries and Consultants senior consulting actuary Salman Shah as saying. Ins. losses are estimated at some USD 2.4 bn, with motors' share at USD 250 mn, and property claims increasing to USD 850 mn.

Ins. companies are expected to see a drop in net income rather than outright losses, with smaller and less capitalized insurers potentially facing liquidity and solvency issues. Reins. coverage and investment income — which increased to AED 754 mn in 1Q 2024, from AED 559 mn in 1Q 2023 — will help to offset the financial impact of increased claims for the quarter.

We could see a potential spillover in 3Q, as loss amounts are revised, or companies push some losses to the next reporting period, Khaleej Times cites AM Best associate director Jessica Botelho-Young as saying.

#4- Abu Dhabi Chamber to sign 100 partnerships by year end: The Abu Dhabi Chamber ofCommerce and Industry has rolled out an initiative aimed at inking 100 partnerships with other chambers of commerce and business offices across MENA, Asia, Europe, Australia, Africa, and Latin America by the end of 2024, Wam reports. Under the initiative, the chamber’s Abu Dhabi Business Connect platform will give local businesses access to over 3 mn member companies around the world, expanding their reach to international markets. The platform will also serve as a venue for startups and SMEs to showcase their products and services to global investors.

DATA POINTS-

#1- EDB pours AED 3.6 bn into financing in 1H 2024: Emirates Development Bank (EDB) has provided some AED 3.6 bn in financing in 1H 2024 to companies across the manufacturing, advanced tech, food security, healthcare, and renewable energy sectors, Wam reports.

The breakdown: Some AED 2 bn — over half of EDB’s financing — went to the manufacturing sector, while the renewables sector got AED 833 mn in total financing. Some AED 532 mn was directed to advanced tech. Micro, small, and medium enterprises received AED 980 mn of the funds.

#2- The value of Dubai International Financial Centre (DIFC) Courts’ cases increased to a record AED 1.05 bn in 1H 2024, with 480 cases filed across all divisions, it said in a statement. The Court of First Instance comprised AED 1.02 bn of total cases in 1H 2024, with 57 cases filed, while the Small Claims Tribunal logged 265 claims worth AED 27.2 mn. DIFC Courts issued 913 orders and 85 judgments during the period.

THE BIG STORY ABROAD-

Donald Trump is still in front pages everywhere — this time after formally taking the Republican nomination. He has named Ohio Senator JD Vance as his running mate — Vance was once a Trump critic and is a sharp populist — in a move that the Wall Street Journal says could be aimed at clinching victory in the Midwest battleground states.

Trump made his first public appearance since his assassination attempt — with a big bandage on his ear — at the Republican National Convention, which is still underway at dispatch time.

ALSO- A US judge dismissed a criminal case over Trump’s handling of classified documents, in the latest legal victory for the former president, the WSJ reported separately. The judge in the case is a Trump appointee who has made a series of baffling or unorthodox rulings in the case.

AND- Trump will force Ukraine-Russia peace talks if he’s elected president, says Hungary’s prime minister, Viktor Orbán.

OVER IN FRANCE- The fragile unity within the country’s New Popular Front is fraying as coalitions within the party fail to agree over a new prime minister, France24 reports. The government is set to convene on Thursday for the first time to elect a new president of the national assembly, equivalent to the speaker of the house.

IN THE BUSINESS PRESS- Apple’s shares rose to a record high after Morgan Stanley identified the stock as a “top pick,” giving it a valuation of USD 3.62 tn, attributing the choice to the iPhone manufacturer’s AI efforts, which it expects to help boost sales.

SPEAKING OF APPLE- Fellow iSheep can now download the beta version of iOS 18 (and iPad, macOS, watch OS 18, and macOS Sequoia). (The Verge)

AND IN EARNINGS NEWS- Goldman Sachs saw its net income more than double in 2Q 2024 to USD 3 bn due to a recovery in dealmaking. Morgan Stanley is set to report its earnings today.

 

CIRCLE YOUR CALENDAR-

The Global Aerospace Summit is set to take place from 25-26 September at the St. Regis Saadiyat Island Resort in Abu Dhabi. The summit brings together CEOs from the global aerospace supply chain in a bid to ramp up investments in innovation in the aerospace, aviation, space, and defense sectors.

The IEEE/RSJ International Conference on Intelligent Robots and Systems (IROS2024) is set to take place from 14-18 October at Adnec Centre Abu Dhabi — its first time in the Middle East. Hosted by Khalifa University of Science and Technology, the annual robotics conference will be attended by researchers, academics and global industry professionals, according to a Abu Dhabi Media Office statement.

Dubai Premier Padel P1 is set to take place at the Dubai Dutyfree Tennis Stadium from 3-10 November. The event is part of a 25-tournament season spanning 18 countries and featuring 256 male and female players competing for a prize pool of EUR 470k, according to the Dubai Media Office.

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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