Good morning, lovely people. We have a packed issue for you this morning with tons of capital markets updates — from a market overhaul at the ADX to not one, but two major overseas acquisitions from local players Multiple Group and Ambrosia Investments. Plus: e& divested its stake in Khazna, with MGX and PE firm buying in. Let’s dive in.

WEATHER- Expect a mostly cloudy day today and a humid night, according to our favorite weather app and the National Center of Meteorology’s forecast (pdf). The mercury in Dubai will hit 24°C, with an overnight low of 19°C, while temperatures will hit 19°C in Abu Dhabi, with an overnight low of 19°C.

Abu Dhabi’s Adnoc Logistics and Services secures a spot in the FTSE big leagues: Energy giant Adnoc Logistics and Services was upgraded to the large-cap index of FTSE Russell in its semi-annual review (pdf), reflecting its growing market dominance. Previously classified as a mid-cap stock, the reclassification underscores its expanding scale and liquidity, making it even more attractive to institutional investors tracking the global index.

On the flip side: Americana Restaurants has been downgraded to the Mid Cap Index. The company has been struggling with a slowdown in consumer demand on the back of regional tensions, and the impacts of unfavorable foreign exchange rates. Its net income attributable to shareholders fell 38.8% y-o-y in 2024.

Other joiners: DFM-listed Parkin and Space42 were upgraded to the Mid Cap Index, up from the Small Cap Index previously, and Abu Dhabi National Hotels and Gulf Navigation Holding were added to the Small Cap Index, as well as the All Cap. The micro-cap index also saw the addition of: Bank of Sharjah, Deyaar Development, ESG Stallions Emirates, Julphar, Investcorp Capital, Invictus Investment, RAK Ceramics, Taaleem Holding, and Waha Capital.

The changes will come into effect on Monday, 24 March.

WATCH THIS SPACE-

#1- Abu Dhabi’s flagship carrier Etihad Airways is set to pull the trigger on one the region’s most anticipated IPOs this week, in what would be the GCC’s first offering of a major airline in nearly two decades, Reuters reports, citing sources it says are familiar with the matter. The IPO should see Etihad’s sole owner — Abu Dhabi sovereign wealth fund ADQ — rake in some USD 1 bn in proceeds from the sale of a 20% stake by selling new shares on the ADX. The move would give the airline an implied market cap of USD 5 bn at listing.

Etihad reportedly kicked off a roadshow last month, to sound out investors for its proposed IPO. While the offering was initially planned for last year, the airline’s FY 2024 results — which were published late last week — along with geopolitical uncertainties were said to have weighed on the timing. The ADQ-backed carrier’s net income tripled last year to AED 1.7 bn, while revenues were up 25% to AED 25.3 bn.

ADVISORS- ADQ reportedly tapped Abu Dhabi Commercial Bank, Bank of America, BNP Paribas, and Morgan Stanley as joint bookrunners for the IPO, with HSBC Holdings, First Abu Dhabi Bank (FAB) and Citigroup said to be acting as financial advisors.

#2- The UAE is exploring investments in key sectors in Kerala, including healthcare, tourism, food processing, and technology, Economy Minister Abdulla bin Touq Al Marri said during the Invest Kerala Global Summit, Business Standard.

Meanwhile, UAE-based logistics firm Sharaf Group will invest INR 5k crore (c. AED 2.1 bn) in logistics and shipping in the next five years in Kerala, The Economic Times reports, citing the group’s Vice Chairman Sharafuddin Sharaf. The investments will go into two dry ports, with the locations to be determined after discussions with the state’s government.

REMEMBER- India and UAE plan to expand their 10-year trade agreement to include eight new sectors, as they aim for upwards of USD 100 bn in annual bilateral trade. The new sectors will include AI, financial services, digital technologies, and logistics. Last year, India and the UAE inked several agreements on bilateral trade, including setting up a multi-modal trade corridor and increasing investment and cooperation across major sectors including energy and technology.

#3- Mubadala-owned Spanish oil company Moeve returned to the black in 2024, reporting a net income of EUR 92 mn after a EUR 233 mn loss in 2023, Reuters reports. The rebound was driven by a 75% earnings surge in its energy division and a 14% rise in chemicals, fueled by higher demand for products like acetone.

The company has been shifting toward low-carbon energy under a EUR 8 bn transition plan, selling 70% of its oil production assets since 2022. Strong cash generation enabled Moeve to more than double its sustainable capex to advance key projects, including a EUR 1.2 bn biofuels plant and a 2-GW green hydrogen initiative, CEO Maarten Wetselaar said.

#4- Dewa invites proposals for new solar and BESS project: The Dubai Electricity and Water Authority (Dewa) has invited expressions of interest (EOI) for the 1.6 GW seventh phase of the Mohammed Bin Rashid Al Maktoum Solar Park, along with a 1 GW battery energy storage system (BESS), according to a public notice (pdf) on Tuesday. Dewa will purchase power from the project — which will be developed under an Independent Power Project model — under a long-term power purchase agreement (PPA). The deadline for EOI submissions is 21 March and commissioning is slated for August 2027.

ICYMI- The company appointed a Deloitte-led consortium as the consultant for the project last week, which will handle the tender documents, design, submissions management, commercial negotiations, financial structuring, and PPAs, as well as reaching financial close.

#5- FAB’s End of Service Benefits Funds get the final green light: First Abu Dhabi Bank (FAB) has received final approval from the Human Resources and Emiratization Ministry and the Securities and Commodities Authority to launch its FAB End of Service Benefits (EOSB) Funds, state news agency Wam reports. These funds will be available to all private-sector entities, enabling businesses to invest and improve employees’ EOSB under the UAE’s new Alternative EOSB Savings Scheme. FAB received its preliminary approval from the UAE’s government in November 2024.

The bank has introduced a digital platform integrated with the UAE Savings Scheme that allows businesses to manage EOSB contributions and track investments. It partnered with several companies to develop the platform, including Apex Group for fund administration, Aurem for technology, and Deutsche Bank Securities for custody services.

FAB’s EOSB currently offers two capital-protected investment options managed by FAB Asset Management. The options include conventional investment in money market instruments and investments that adhere to Islamic finance principles. Additional risk-based investment options, including both conventional and Sharia-compliant strategies, will be introduced soon.

PSAs-

#1- There’s a new taxi booking service in Sharjah: Sharjah Asset Management launched the pilot phase of the emirate’s first digital taxi booking service, available through the Yango app, according to a social mediapost. The testing stage will see 500 Sharjah taxis available for booking on the platform, Al Etihad reports.

#2- The minimum you can top up your Nol Card at vending machines will be upped to AED 20 from 1 March, up from AED 5 previously, Dubai’s Roads and Transport Authority (RTA) said in a post on X.

HAPPENING TODAY-

#1- The CleanTech Innovators Exhibition’s second cycle will wrap today at the Sustainability and Innovation Center of Dubai Electricity and Water Authority (DEWA), as part of UAE Innovates 2025, which started at the beginning of the month. The event will showcase the latest technologies in green hydrogen, sustainability, digital transformation, AI, solar power, and energy storage.

#2- A Dubai government delegation is on its four-day visit to Shenzhen, China, organized by the emirate’s executive office and Dubai Chambers, state news agency Wam reports. The group will meet public and private sector leaders and tour institutions specializing in technology, innovation, digital economy, urban planning, and sustainability.

The agenda includes meetings with officials from the Shenzhen Stock Exchange to boost financial cooperation; a meeting with Shenzhen Capital Group to strengthen SME ties; one with Tencent to explore digital transformation cooperation; and another with Huawei to discuss smart government solutions and BYD. It will also aim to attract Chinese multinationals and unicorns to Dubai.

#3- Connecting Hydrogen MENA will wrap up today at Madinat Jumeirah Conference Center in Dubai. The event features more than 50 sessions and 200 speakers, set to discuss clean hydrogen and ammonia. It includes networking activities and a MENA hydrogen exhibition showcasing technologies.

#4- The Dubai Stem Cell Congress, organized by the First Stem Cell and Genomics Laboratory (FSG) with the support of the Dubai Health Authority, is on its second and final day today at the Ritz-Carlton, Dubai International Financial Center. The event brings together up to 500 delegates, including medical professionals, technologists, oncologists, and specialists, as well as 25 international speakers. This year’s theme is Bridging the Future, focusing on the latest advancements in stem cell research and regenerative medicine.

#5- Investopia 2025will kick off today and wrap up tomorrow at the St. Regis Saadiyat in Abu Dhabi. The event features over 100 speakers, including government officials, investors, entrepreneurs, economists, and major investment funds from 20 countries. It will host 2k participants and representatives from global financial and economic institutions.

THE BIG STORY ABROAD-

Ukraine has reportedly agreed to a framework for an economic agreement that will see the US tap its revenues from rare minerals. US President Trump — who pushed hard for the agreement with personal attacks on his counterpart Volodymyr Zelensky — had earlier hinted the Ukrainian President could arrive in Washington as soon as Friday to sign the agreement.

Trump is active as usual: The US president also signed an order yesterday to examine tariffs on copper, and said he will introduce a “gold card” visa program that provides a route to US citizenship for the low price of USD 5 mn. Meanwhile, his controversial USD 4.5 tn tax cut plan narrowly passed the House.

ALSO WORTH NOTING-

  • Israel and Hamas will exchange four dead Israelis for hundreds of Palestinians, temporarily saving the ceasefire. (Associated Press)
  • Tesla shares dropped 8%, with its market cap falling below USD 1 tn, wiping most gains since Trump’s election. (CNBC)

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