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WHAT WE’RE TRACKING TODAY

THIS MORNING: RedBird IMI’s Telegraph takeover bid could see more obstacles

Good morning, lovely people. We hope the first day of Ramadan has been kind to you. We have a packed issue for you this morning, filled with forecasts for our real estate sector, some updates on M&As, and big AI news from Abu Dhabi.

THE BIG STORY here at home, in our view, is S&P Global’s latest report on a potential reversal in real estate prices over the next year or year and a half.

ALSO-The UAE gets love for expat benefits: The UAE is listed among five countries that Bloomberg says are “the best countries for wealthy expats,” thanks to preferential tax policies including one of the world’s lowest corporate tax rates and a lack of taxes on personal income, capital gains, or other sources of income.

HAPPENING TODAY-

The retail subscription period for car parking space manager Parkin’s IPO wraps today, while institutional investors have until tomorrow to submit their bids. The final share price will be disclosed this Thursday, after which Parkin’s shares will start trading on 21 March.

Refresher: The Dubai Investment Fund is selling a 25% stake in Parkin, with books covered within minutes after the book building process kicked off last week, setting it up to raise up to AED 1.57 bn from the listing.

HAPPENING THIS WEEK-

Sharjah’s proposed new real estate law will be on the agenda for the Sharjah Consultative Council when it meets this Thursday, Sharjah24 reports. The bill, which was proposed last month, would introduce rental regulations and streamline government procedures for rentals in the emirate, as well as establish a center for resolving rental disputes.

WATCH THIS SPACE-

#1-UK Culture Secretary to decide on RedBird IMI’s GBP 600 mn bidfor the Telegraph: The UK’s competition watchdog the Competition and Markets Authority and Office of Communications presented their findings on the acquisition of Telegraph Media Group by Abu Dhabi-backed RedBird IMI to media secretary Lucy Frazer, according to an Ofcom statement on X. Frazer now holds the authority to determine if the acquisition poses a threat to press freedom and public interest, in which case it would be referred back to the competition watchdog for more in-depth scrutiny, the Financial Times reports, adding that the process could take months.

Sunak could in the coming days make amendments to UK legislation to allow ministers to prevent foreign interest in British media outlets, the salmon-colored paper reports, citing sources in the know. Baroness Tina Bowell had already introduced an amendment to the bill to allow the government to oppose foreign state media takeovers, with the House of Lords set to vote on the amendment tomorrow, according to the FT.

Is the Daily Mail in? Rupert Murdoch’s News Corp and owner of the Daily Mail, General Trust, have reportedly held talks to join in on RedBird IMI’s bid, Bloomberg reports, citing people familiar with the matter. The two companies’ contribution would reduce the size of RedBird IMI’s stake, potentially down to 25%, which could ease UK watchdogs’ concerns over foreign state control of the media outlet, the sources said. RedBird IMI is majority owned by deputy prime minister Sheikh Mansour bin Zayed Al Nahyan.

The caveat? A joint bid involving Murdoch and the Daily Mail could raise further concerns about media plurality and competition, according to the business information service.

#2- Ewec opens registration for 1Q 2024 CEC auction: Emirates Water and Electricity Company (Ewec) opened the registration period for its 1Q 2024 clean energy certificates (CEC) auction yesterday, according to a statement. The auction will take place this Thursday, 14 March.

REFRESHER- CECs prove renewable energy production: Renewable energy certificates (RECs) certify ownership or creation of renewable energy on a per MWh-by-MWh basis. When one MWh of renewable energy is delivered to the grid, an REC is issued. Unlike carbon credits that reduce greenhouse gas emissions, RECs offset non-renewable electricity use. In Abu Dhabi, RECs serve as the sole mechanism ensuring the use of clean energy.

WAR WATCH-

Third aid ship to leave UAE for Gaza: Following a directive from Chairman of the Emirates Red Crescent Sheikh Hamdan bin Zayed Al Nahyan, a ship carrying 4.5k tonnes of aid — including food, medical supplies, clothing, shelter materials and more — is set to leave the UAE to deliver aid to Gaza, state news agency Wam reports. This is the third Emirati aid ship to sail to war-torn Gaza as part of the Gallant Knight operation.

A new Birds of Goodness aid dispatch is also underway, with the UAE and Egypt airdropping 42 tonnes of aid to northern Gaza, which is particularly affected by food shortages, Wam reported separately.

Meanwhile, President Sheikh Mohamed bin Zayed Al Nahyan held a phone call with his Cypriot counterpart to discuss the initiative to build a maritime aid corridor to deliver aid to Gaza, Wam reports. The initiative was announced by the UAE, Cyprus, the European Commission, Germany, Greece, Italy, the Netherlands, the UK, and the US earlier this month.

DATA POINTS-

#1- The total number of issued and renewed business licenses in Sharjah grew 4.1% y-o-y in 2023, reaching 66.3k, Wam reports citing the Sharjah Economic Development Department.

#2- Sharjah saw AED 3.1 bn worth of real estate trade from 4,458 transactions in February, the Sharjah Real Estate Registration Department said, according to Wam. Of all the transactions during the month, sales accounted for 1,048 (23.5%), mortgages for 355 (8%) with a value of AED 581.4 mn, and the remaining 3,055 transactions constituted 68.5% of the total.

#3- DMCC achieved its second-best year on record in 2023 with 2.7k new companies joining, bringing the total number of companies to over 24k, according to a Dubai Media Office statement. DMCC continued to be a primary destination for foreign direct investment, contributing to 11% of Dubai’s FDI flows during the year.

#4- The Abu Dhabi Investment Authority maintained its position as the fourth largest sovereign wealth fund in the Sovereign Wealth Fund Institute’s latest listof largest sovereign wealth funds by total assets.The Abu Dhabi fund has racked up USD 993 bn in assets, trailing behind sovereign wealth funds in Norway and China, which pooled assets above USD 1 tn.

Other UAE wealth funds keeping it company: The Investment Corporation of Dubai, Abu Dhabi Developmental Holding Company, and Mubadala Investment Capital ranked among the top 20, securing the twelfth, fourteenth, and eighteenth place, followed by Emirates Investment Authority (#21) and Dubai Investment Fund (#22).

THE BIG STORY ABROAD-

It’s not the big story abroad, but it should be: Ramadan begins with hunger worsening in Gaza and no end to war in sight, writes Politico. Gaza is on (but not atop) the world’s front pages. Joe Biden had suggested a Ramadan ceasefire was in reach — it didn’t happen. That has many outlets diving deep into the state of relations between the US and Israel, including Bloomberg’s big front-page take: Tension between Israel and US is rising with Gaza death toll.

Also in Washington: Joe Biden’s USD 7.3 tn budget proposes new taxes on corporations and high-income earners.

Plus: Tiktok could face a ban in the US of A when lawmakers vote on Wednesday and Reddit is looking to raise USD 500 mn in an IPO that could set the tone for tech listings this year. (You can check out its S-1 filing here.)

Over in London: Photo editors at mainstream newspapers are freaked out that Princess Catherine’s Mother’s Day portrait was photoshopped. Much ado about nothing? Experts say the image is “consistent with an amateur splicing together different images from the same session to make a nice family portrait,” the Wall Street Journal writes.

Why all the fuss? Catherine has stepped back from public life since abdominal surgery in January.

CIRCLE YOUR CALENDAR-

The Hamdan bin Mohammed bin Rashid Al Maktoum International Photography Award has unveiled new categories — ‘Sports Photography’ and ‘Short Videos’ — open for submissions until 30 June 2024, according to the Dubai Media Office. You can submit applications here.

The EcoWaste Exhibition and Forum is set to take place between 16 to 18April at the Abu Dhabi National Exhibition Centre as one of the six specialized verticals within the program of the World Future Energy Summit, according to a press release. The event is organized by RX Middle East in partnership with Tadweer Group to showcase the latest technologies in the field of waste management.

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

Oversupply risk, global economic pressures to possibly lead to a cyclical slowdown in Dubai’s property market –S&P Global

S&P Global is doubling down on its expectation that the UAE’s residential property market could be approaching a cooldown in its latest GCC Real Estate Report (pdf), echoing its previous forecasts that we’re going to see more price growth before a reversal over the next 12-18 months. The ratings agency had forecast that prices will climb 5-7% this year in Dubai before reversing, with price declines expected to be within the 5-10% range.

An oversupply risk in Dubai could be to blame for a potential “cyclical reversal,” the ratings agency said. The report also cites global economic pressures possibly affecting demand, and points to the challenges Dubai-based developers are facing in finding fresh land, leading to higher costs for new land parcels.

Abu Dhabi is at less risk: Abu Dhabi’s property market faces less risk for reversal, owing to its slower post-pandemic appreciation than its neighboring emirate, which indicates it has yet to reach its peak.

Companies with exposure to Dubai real estate are in for “limited upside potential” given the forecast slowdown, S&P Global said.

GCC outlook: A 2-3% increase in population, coupled with GCC governments’ reforms to support new businesses and expat inflow, as well as an expected uptick in demand due to potential interest rate declines in 2H 2024, open windows for GCC real estate markets to continue growing past 2019 levels, the report notes. However, geopolitical tensions, property shortages, liquidity crunches, and funding gaps risk the sector will fall into a reversal.

ICYMI- We recently ran a deep-dive into the reasons behind the property price boom in 2023, and a breakdown of different analysts’ and pundits’ outlook for the market this year.

BINGHATTI CEO FORECASTS 14% PRICE GROWTH IN 2024-

Dubai’s property market prices are poised to “grow steadily” at a 12-14% clip in 2024,driven by factors such as population growth, increased demand for mortgages spurred by an anticipated drop in interest rates, and an influx of wealthy individuals opting to invest in the city, CEO of Binghatti Holding, Muhammad Binghatti told Khaleej Times, noting that this is a mark of “healthy growth.”

Yes, AI is going to change how you work. Welcome to the era of soft skills and BS radars.

The opening session of EFG Hermes’ One on One last week featured a panel, moderated by Enterprise, to address the question on everyone’s minds: Are we or are we not endangered by AI? Our panelists, who are friends, came from two very different schools of thought:

In one corner: Renier Lemmens (LinkedIn) is the outgoing CEO of Riyadh-headquartered fintech player Geidea who has served on the boards of more than a dozen fintechs in London and around the world. He’s a veteran of McKinsey in London, New Delhi, and San Francisco and was CEO of PayPal for EMEA. He began his career as a banker with Barclays.

In the other corner: Our friend Wael Fakharany (LinkedIn) is CEO of Edenred Middle East, which empowers businesses and more than 2 million cardholders in the UAE with smart financial technology. He’s a digital optimist to the core, with a track record that includes service as a senior executive at Google, Google X, Careem, IBM, and Oracle.

The debate: How might AI impact frontier and emerging markets? How can executives across the region adapt to the new normal?

“Many of us will not have a job, or those who succeed us won’t” was Lemmens’ starting point into the discussion. In finance and investment, more “forward-looking” companies have already started to appoint AI committee members that are now participating in meetings. Having that kind of co-pilot with infinite knowledge of your company and your competitors, and the ability to access any data about them in a matter of seconds, will have a big impact on jobs, Lemmens said.

It’s already happening, Lemmens argues: Geidea piloted AI in the legal department, and saw a massive improvement in productivity in terms of contract analysis and negotiation, Lemmens added. “Did dozens of people lose their jobs? No, but we did cancel two vacancies for paralegals,” he said, adding that the software it was piloting was an off-the-shelf, early-stage software. “It’s very early days but there’s already a significant impact [and] dislocation of [certain] types of jobs will happen in a very big way.”

For Fakharany, it’s more a matter of being one step ahead and using AI to enhance performance. “AI is legal performance enhancing drugs; some people will fall off the bandwagon but others will do more things than others,” he said. “As a manager, I would ask my team to give me more efficiency and productivity because they have superpowers with the help of AI; they would only be out of a job if they’re unable to leverage that superpower,” he added.

History also tells us that jobs will change, but will not be replaced completely, Fakharany argues, referencing the evolution of TV — from traditional cable to streaming — and software — from CDs to cloud storage.

For emerging markets, AI can help create more potential for financial inclusion and help them leapfrog, Fakharany said, adding that AI can help advance financial education and literacy, as well as access to financial services. Developed markets, on the other hand, will use AI for better fraud management and to create more sophisticated financial models, he added.

The expansion of AI will also help level the playing field, as both EMs and developed markets are grappling with similar challenges associated with AI, Lemmens said. Companies need to be discovering and working through those challenges now, or they’ll fall behind, he added.

But EMs still have some catching up to do in terms of regulations, Fakharany said. “The good news is there’s a lot of young people and energy here, and in KSA and Egypt, with a lot of labor arbitrage,” he added. The bad news, according to Lemmens, is that the burden of more education will be placed on people who don’t have access, possibly pushing them to less attractive jobs or unemployment.

Which sectors can get the most out of AI? Fakharany thinks B2B software, companies that streamline supply chains, and last-mile delivery are promising, while Lemmens believes AI can transform healthcare service delivery and drug development.

The age of soft skills + BS radars: While AI continues to develop and become more commoditized, the jobs of the future are those that center around the study of human beings, like anthropology, Fakharany argued. Lemmens, on the other hand, believes everyone will need to dig under the hood of AI and understand how it works to develop a “BS detector” that can allow them to stay ahead of the curve — AI, he says, is too important to be left exclusively to your CTO or CIO.

Abu Dhabi rolls out new investment company for AI and tech

The recently established Artificial Intelligence and Advanced Technology Council (AIATC) is rolling out a technology investment company dubbed MGX, to ramp up the development and adoption of AI in Abu Dhabi, reports the Abu Dhabi Media Office. The new company could rake in more than USD 100 bn in assets under management in a few years, Bloomberg reports, citing people familiar with the matter.

The details: The new company will develop “strategic partnerships” with domestic and global technology and investment companies, focusing on three main investment sectors. The company will pursue its own investments — separate from Mubadala and AI-focused tech group G42, who are the company’s foundational partners — with initial funding from the Abu Dhabi government, the sources said.

Focus areas: MGX will build on the emirate’s investments in AI infrastructure, including data centers and connectivity; semiconductors, including logic and memory chip design and manufacturing; and AI core technologies and applications, including AI models, software, data, life sciences, and robotics.

Who’s heading the company? CEO of Mubadala’s direct investments platform Ahmed Yahia Al Idrissi was tapped as CEO, while AIATC Chair Sheikh Tahnoun Bin Zayed Al Nahyan will chair MGX’s board, and Khaldoon Khalifa Al Mubarak will serve as vice chair. e& and Modon Properties Chairman Jassem Mohamed Bu Ataba Al Zaabi, G42 CEO Peng Xiao, and Al Idrissi will also sit in as board members.

Background: President Sheikh Mohamed bin Zayed Al Nahyan issued a directive establishing the AIATC in January to take charge of policies and strategies related to Abu Dhabi’s research, infrastructure, and investments in AI and advanced technology.

Dubai's PMI hits half-decade peak

Growth in Dubai’s non-oil sector activity surged to its highest level in February since May 2019, after hitting a five-month low in January, according to S&P Global’s purchasing manager’s index (pdf). The PMI reading rose to 58.5 in February, up from January’s 56.6, signaling an improvement in the operational environment within the emirate’s non-oil economy. With the index firmly above the 50.0 mark that indicates expansion, Dubai’s non-oil sector is poised for continued growth and development in the months ahead, according to the report.

REMEMBER- It was a good month for the whole country: The UAE’s non-oil economy continued to see “strong upward momentum” as output levels rose at their sharpest rate since mid-2019. The country’s PMI recorded 57.1 in February, up from 56.6 in January, S&P’s PMI (pdf) showed.

Healthy business activity marked by increased output: Dubai businesses saw an uptick in activity during the month, with 36% of survey respondents reporting increased output — the fastest surge in 18 months. Elevated demand, strong market conditions, and expanded project portfolios were key contributors to this growth. “The reading signals that the Dubai non-oil sector is one of the fastest growing worldwide according to global PMI data,” Senior Economist at S&P Global Intelligence David Owen said.

Surging customer demand kept order books strong,with businesses noting the impact of price cuts and promotions. Output charges dropped significantly, hitting an eight-month low, especially in the wholesale & retail sector.

Hiring reached its highest pace since August 2015, as increased workloads prompted companies to expand their workforce. Furthermore, inventory inputs and partially finished items hit a three-month peak, possibly showcasing companies’ anticipation for higher demand in the non-oil sector.

Red Sea disruptions only slightly impacted supplier performance in 1Q 2024, leading to a minor reduction in lead times for non-oil companies. Although a slight improvement from January, lead times remained the second-slowest in over a year. Input costs also rose to a three-month high but remained “modest overall.”

Businesses are more confident than they were in January, signaling heightened optimism for growth in the non-oil sector over the next 12 months. “Inflationary pressures remained soft which encouraged greater sales promotions, while employment and inventory growth strengthened. All this suggests that the non-oil sector’s expansion has further to run during 2024,” according to Owen.

Abu Dhabi unveils 144 projects, investing AED 66 bn across several sectors

Abu Dhabi launches 144 projects valued at AED 66 bn to drive growth: The Abu Dhabi Projects and Infrastructure Centre (ADPIC) announced that the Abu Dhabi Executive Council greenlit 144 projects across the emirate, with a combined budget of AED 66 bn, according to an Abu Dhabi Media Office statement. These projects span housing, education, tourism, and natural resources.

#1- HOUSING- An investment of over AED 59 bn has been earmarked for the housing sector in the emirate, with a focus on constructing housing and public amenities. ADPIC plans to develop 13k homes across Abu Dhabi, Al Ain, and Al Dhafra, and to streamline government housing allocation, cut waiting times, and boost efficiency in offering housing solutions.

#2- EDUCATION- Some AED 4 bn was allocated for education and human development, including investments in vocational training and education. This includes renovating and expanding schools and training centers, as well as launching new projects to support early childhood education and overall human capital development.

#3- TOURISM- An allocated AED 1.1 bn will go towards supporting tourism, specifically targeting cultural landmarks and infrastructure to enhance visitor experiences and safeguard Emirati heritage.

#4- NATURAL RESOURCES- Projects aimed at preserving natural resources were allocated AED 50 mn. Investments in various aquaculture farms will be ramped up to enhance the emirate’s natural resources. These farms will focus on breeding, raising, and harvesting different species of fish and shellfish, aiming to improve food security and meet market demand.

Alpha Dhabi receives acquisition offer for three subsidiaries

ADX-listed Alpha Dhabi has received an acquisition offer from National Corporation for Tourism and Hotels to snap up three of its subsidiaries, Alpha Dhabi said in a disclosure (pdf) to the ADX. No details on pricing were provided.

Background: Alpha Dhabi had acquired a 36.4% stake in National Corporation for Tourism and Hotels last year in an AED 730 mn transaction. The acquisition made Alpha Dhabi the largest single stakeholder in the company.

In detail: The companies that will be acquired — ADH Hospitality, Murban BVI Holding, and Hill View Resorts Seychelles — were originally part of Murban’s asset portfolio, but were incorporated into Alpha Dhabi’s after it acquired Murban back in 2021.

What’s next: Alpha Dhabi’s board of directors is scheduled to discuss and approve the offer this Thursday, 14 March, the disclosure says.

Masdar launches hurricane-resistant solar plant in Caribbean

Masdar’s Antigua and Barbuda hurricane-resistant hybrid solar plant is now online: Operations have commenced at the Masdar-developed hurricane-resistant hybrid solar-diesel energy plant in the Carribean’s Antigua and Barbuda, according to a press release. The UAE-Caribbean Renewable Energy Fund (UAE-CREF) inaugurated the project, which was first announced in 2017 after Hurricane Irma caused major damage to Barbuda Island.The plant aims to restore energy security to the Island, with the capacity to endure up to 265 km/h winds and other extreme weather conditions.

The details: A hybrid solar energy, battery storage and backup diesel project, the climate-resistant solar plant is expected to generate 730 kWp of solar energy, connected to an 863 kWh battery to store electricity surplus. The plant is expected to slash the Caribbean country’s diesel consumption by 406k liters and offset over 1 mn kg of CO2 emissions.

Who pitched in the funding? The project was primarily funded by UAE-CREF with USD 3.5 mn during the first funding round, in addition to USD 1 mn from the Antigua and Barbuda government, and a USD 500k donation from New Zealand, ReliefWeb reported

About the fund: Launched in 2017 at the Abu Dhabi Sustainability Week, the fund (pdf) was set up through a USD 50 mn grant from the Abu Dhabi Fund for Development (ADFD) to support renewable energy efforts across the Caribbean Island. The fund is a partnership between ADFD, Masdar, and the UAE’s Foreign Affairs and Cooperation Ministry.

The plant is the fund’s fourth project, having successfully launched three solar power projects in the Bahamas, Barbados, and Saint Vincent and the Grenadines in 2019. The UAE-CREF fund plans to develop more renewable energy facilities across the 16 Caribbean nations over three phases, in addition to cutting energy costs and bolstering the islands’ climate resilience.

Petrofac lands USD 200 mn contract for Galkynysh field operations

Petrofac has secured a USD 200 mn operations contract with Turkmenistan’s TurkmenGas for the management of the Galkynysh field, the world’s second-largest gas field, Petrofac said in a statement.

The details: The operations contract will see Petrofac provide personnel to supervise and support operations and maintenance activities, offer technical support and procurement services, and develop and implement management systems to enhance the efficient operations of the Galkynysh Gas Field Central Processing Facilities 1 and 1A.

The contract builds on Petrofac’s previous role at the Galkynysh Gas Field, where its UAE-based Engineering & Construction unit completed one of the largest engineering, procurement, construction and commissioning (EPC) projects for Turkmengas.

More on the gas field: The Turkmenistan government awarded USD 9.7 bn worth of development contracts back in 2009 — a year after the field’s discovery — to China’s state oil firm CNPC, South Korea’s LG International Corp, Hyundai Engineering, and Petrofac Emirates, Reuters reported previously. The field provides domestic energy supply for Turkmenistan, Petroface said, and serves as a vital energy supply hub for China and a potential raw material source for the Turkmenistan-Afghanistan-Pakistan-India gas pipeline, according to Albayan.

Investcorp Capital secures USD 800 mn RCF from regional and int’l lenders

Abu Dhabi-based alternative investor and Investcorp subsidiary InvestcorpCapital has entered into an USD 800 mn revolving credit facility agreement with a syndicate of regional and international banks, according to an ADX disclosure (pdf). The disclosure did not specify who the banks are.

Where the funds will go: The proceeds from the facility will go towards its investment strategy, as well as the payment of a receivable owed by one of its subsidiaries to its parent company, Investcorp, the statement said, without disclosing further details.

Advisors: Investcorp is the guarantor for the facility, according to the disclosure. Investcorp Capital will shell out a 1% guarantor and placement fee equivalent to USD 8 mn, according to an ADX disclosure (pdf).

REMEMBER- Investcorp Capital listed on the ADX this past November, raising some AED 1.66 bn (USD 450 mn). The investment firm had initially planned to raise USD 600 mn from the IPO.

First Abu Dhabi Bank’s global markets head, other senior bankers step down

First Abu Dhabi Bank’s head of global markets Thomas Spitz stepped down from his role at the bank after two years in the position, he said in a Linkedin post, noting that he has “decided to move on to new opportunities.”

Two other senior bankers — David Trafford and global head of linear trading Jason Keg — have also recently resigned from their positions, Bloomberg reports. Trafford moved on to the role of CFO at Emirates NBD.

The latest in several management shake-ups: The bank last year hired a new head of mergers and acquisitions, Eric Shehadeh, who also left less than seven months into the role, and later hired Sameh Al Qubaisi as group head of global markets. The bank also tapped Lars Kramer as its new CFO last year.

Aramex sets up regional HQ in Riyadh + HK’s Infiniti Capital Management opens Abu Dhabi office

LOGISTICS-

#1-UAE-based logistics company Aramex has inaugurated its regional headquarters in Riyadh in a bid to boost the company’s capacity to serve both new and existing businesses in the region, according to a press release. It first announced its plan to establish a regional HQ in the Kingdom back in 2021.

MAINTENANCE-

Emaar Properties tapped US transport manufacturer Otis Worldwide Corporation to update 34 elevators and eight escalators in Burj Khalifa,and service the units for an additional 10 years, according to a statement from Otis. The contract will see Otis enhance the tower’s Elevator Management System (EMS Panorama) to offer real-time remote control of settings and scheduled tasks. Otis installed the building’s original elevators and escalators back in 2010, and has had technicians posted at the tower since its opening for maintenance.

HEALTHCARE-

#1- ADGMA to boost UAE healthcare workforce with onboarding + development courses: The Abu Dhabi Global Market Academy signed agreements with Burjeel Holdings, NMC Assetco Limited, and Aster DM Healthcare, to improve the UAE’s healthcare sector workforce, state news agency Wam reports. The agreements cover working together to support talent onboarding, development, and retention through dedicated courses.

#2- Emirates Development Bank and healthcare-focused fintech company Klaimwill launch a healthcare receivables financing product, offering low-risk, short-term working capital to healthcare providers, after the two signed an MoU, the bank said in a statement. Klaim will manage the product’s dynamic backing process against real-time data to accelerate the speed at which providers can unlock receivables.

EDB 💗 healthcare: Since April 2021,EDB has allocated up to AED 326 mn in financing for the healthcare sector.

TOURISM-

Ras Al Khaimah and Musandam join forces for See Double tourism campaign: Ras Al Khaimah Tourism Development Authority, the Oman Heritage and Tourism Ministry, and Omran Group, launched the See Double campaign, promoting both destinations together for the first time, Trade Arabia reports. Running from 15 June to 15 September, the campaign encourages travelers to explore both Ras Al Khaimah and Musandam, which are a 90-minute drive apart.

FINANCE-

Abu Dhabi to upgrade Rwanda’s financial centers: Abu Dhabi Global Market (ADGM) and Rwanda’s Kigali International Financial Centre (KIFC) inked an MoU to deepen economic cooperation, focusing on capacity-building and sustainable finance, ADGM said in a statement. The agreement will see the regulatory authorities share best practices for improvement, explore mutual recognition agreements to open market access for regulated entities in both countries, and offer customized training programs.

INVESTMENT-

UAE + Korea want more cooperation on energy, industry: The UAE and South Korea inked two MoUs to promote bilateral cooperation in energy, investment, emerging industry, and new economy sectors, reports Wam. A breakdown of the agreements:

The Dubai Multi Commodities Center (DMCC) and the Korean Institute of Startup and Entrepreneurship Development agreed to support startups and entrepreneurs, and increase cooperation in entertainment, digital games, blockchain, and NFT technologies industries;
Dubai Future District Fund and the Korea Venture Investment Corporation also signed an MoU to ramp up cooperation in venture investments, and promote global growth for startups.

ALSO-ATRC to explore autonomous driving with South Korean tech company: Abu Dhabi’s Advanced Technology Research Council (ATRC) and South Korean software company Seoul Robotics are in talks for a potential research and development partnership in industrial autonomous driving, with discussions having taken place during ATRC officials’ visit to Seoul Robotics on 28 February, a press release reads.

DEFENSE-

Rabdan Academy partners with KSA’s Intra: Abu Dhabi-based defense and security institute Rabdan Academy has signed an MoU with Saudi-based Intra Defense Technologies to strengthen cooperation across research, training, and accreditation between the two entities and support the defense and security sectors, according to a statement released by the Abu Dhabi Media Office.

Private equity grapples with USD 3 tn worth of unsold companies

The private equity industry is facing a severe liquidity crunch, with firms globally sitting on a whopping 28k unsold companies valued at USD 3.2 tn, according to consultancy Bain & Co’s latest annual private equity report (pdf). Nearly half of assets have been held for four years or more, which the report says is the largest proportion since 2012.

The good and the bad: The staggering pile of assets highlights the breakneck growth of the buyout industry over the past decade, but also points to the immense challenges posed by soaring interest rates in recent years that have made exiting investments far more difficult.

Dealmaking came to a crashing halt last year as debt financing dried up: The total value of companies PE groups sold via private sales or public listings dipped 44% y-o-y in 2023 to USD 345 bn — the lowest level in a decade. The slump was even worse for portfolio companies sold to rival buyout firms, with sales tumbling 47% to USD 62 bn amid widespread pricing disagreements across the industry.

ALSO WORTH NOTING-

BTC once again reached a new record high, breaking the USD 72k barrier and hitting USD 72,886 before paring back gains yesterday. BTC was trading at USD 72,636 as of midnight CLT.
Companies have raised USD 3.2 bn through European IPOs since January — over double the amount raised during the same period last year. (Financial Times)

THE MARKETS THIS MORNING-

Asian markets are mixed this morning, with the Nikkei down 1.33% at dispatch time (setting it on course for a second day of losses). The Shanghai Composite is (just) in the red, while the Kospi and Hang Seng are in the green. Traders of Japanese equities were reacting to news that inflation in January was higher than pundits had expected, CNBC writes.

Looking ahead: Shares in Europe, on Wall Street and in Toronto look set to start the day in the green as stock futures inched up overnight. Wall Street is looking forward to the February consumer price index reading — it’s due out at 8:30am Eastern time in the US.

ADX	9,232	-0.0% (YTD: -3.6%)
DFM	4,248	-0.1% (YTD: +4.6%)
Nasdaq Dubai UAE20	3,692	-0.1% (YTD: -3.8%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.1% o/n	5.3% 1 yr
TASI	12,555	-0.5% (YTD: +4.9%)
EGX30	33,382	+1.4% (YTD: 34.1%)
S&P 500	5,118	-0.1% (YTD: +7.3%)
FTSE 100	7,669	+0.1% (YTD: -0.8%)
Euro Stoxx 50	4,930	-0.6% (YTD: +9.1%)
Brent crude	USD 82.21	+0.2%
Natural gas (Nymex)	USD 1.75	-0.7%
Gold	USD 2,182	0.0%
BTC	USD 72,636	+5.3% (YTD: +71.2%)

THE CLOSING BELL-

The ADX stayed flat yesterday on turnover of AED 871.9 mn. The index is down 3.6% YTD.

In the green: Gulf Medical Projects (+6.2%), Burjeel Holdings (+5.9%) and Sudatel Telecommunications Group (+4.5%).

In the red: Sharjah Cement and Industrial Development (-9.5%), Gulf Cement (-5.7%) and National Marine Dredging (-5.4%).

Over on the DFM, the index closed down 0.1% on turnover of AED 238.2 mn. Meanwhile Nasdaq Dubai fell 0.1%.

EARNINGS WATCH-

National General Ins.’s net income stood at AED 74.9 mn, up 24% y-o-y, according to the company’s financial statements (pdf).Ins. revenues rose to AED 745.8 mn, up 20% y-o-y.

CORPORATE ACTIONS-

#1- The National Bank of Fujairah has approved the payout of dividends consisting of a 10% AED 212 mn cash dividend and 5% bonus shares worth AED 106 mn, according to an ADX disclosure (pdf).

#2- The National Bank of Umm Al Qaiwain approved a dividend payout of AED 300 mn for 2023, according to an ADX disclosure (pdf).

#3-Abu Dhabi National Takaful Co proposed distributing dividends of 31.5 fils per share to shareholders for 2023,totaling AED 31.5 mn, according to an ADX disclosure (pdf).

#4- DFM-listed BMH Capital Financial Services approved distributing dividends worth AED 13.4 mn, according to a DFM disclosure (pdf).

CALENDAR

MARCH

5-12 March (Tuesday-Tuesday): Subscription period for retail investors for Parkin’s IPO.

5-13 March (Tuesday-Wednesday): Subscription period for institutional investors for Parkin’s IPO.

21 March (Thursday): Parkin shares begin trading.

APRIL

TBC April: DRIFTx, Abu Dhabi.

9/10 April (Tuesday/Wednesday): End of Ramadan, public holiday.

8-12 April (Monday-Friday): Eid Al Fitr, public holiday.

16-18 April (Tuesday-Thursday): World Future Energy Summit, Abu Dhabi National Exhibition Centre.

16-18 April (Tuesday-Thursday): EcoWASTE Exhibition and Forum, Abu Dhabi National Exhibition Centre

16-18 April (Tuesday-Thursday): Middle East Coatings Show, Dubai World Trade Centre.

16-18 April (Tuesday-Thursday): Middle East Energy, Dubai World Trade Centre.

24-25 April (Wednesday-Thursday): Ras Al Khaimah Investment and Trade Summit, Rak Exhibition Centre.

23-25 April (Tuesday-Thursday): Connecting Green Hydrogen MENA, Madinat Jumeirah Conference Centre.

23-25 April (Tuesday-Thursday): Argus Fertilizer Asia Conference, Abu Dhabi.

24-26 April (Wednesday-Friday): Global Education & Training Exhibition.

24 April-1 May (Wednesday-Wednesday): Abu Dhabi Mobility Week.

29-30 April (Monday- Tuesday): Dubai World Ins. Congress, Atlantis, The Palm.

MAY

6-7 May (Monday-Tuesday): Dubai Fintech Summit 2024, Madinat Jumeirah.

7-9 May (Tuesday-Thursday): AIM Congress 2024, Abu Dhabi.

8-9 May (Wednesday-Thursday): Innovative Finance Expo, Jumeirah Emirates Towers.

14-15 May (Tuesday-Wednesday): Seamless Middle East, Dubai World Trade Centre.

14-16 May (Tuesday-Thursday): The Airport Show, Dubai World Trade Centre.

15 May (Wednesday): HFM Summit, DIFC.

18-26 May (Saturday-Sunday): Abu Dhabi Comedy Week, Abu Dhabi.

JUNE

2-4 June (Sunday-Tuesday): The World Air Transport Summit and International Air Transport Association (IATA)’s annual general meeting, Dubai.

4-6 June (Tuesday-Thursday): The Hotel Show, Dubai World Trade Centre.

4-6 June (Tuesday-Thursday): INDEX, Dubai World Trade Centre.

4-6 June (Tuesday-Thursday): WORKSPACE, Dubai World Trade Centre.

4-6 June (Tuesday-Thursday): Leisure Show, Dubai World Trade Centre.

15 June (Saturday): Arafat day, national holiday.

16-18 June (Sunday-Tuesday): Eid Al-Adha, national holiday.

JULY

7 July (Sunday): Islamic new year, national holiday.

SEPTEMBER

9-11 September (Monday-Wednesday): World Utilities Congress, Abu Dhabi.

28-30 September (Saturday-Monday): World Association of Nuclear Operators (WANO) Biennial General Meeting, Abu Dhabi.

OCTOBER

30-1 November (Wednesday-Friday): World Cities Cultural Summit, Dubai.

NOVEMBER

11-14 November (Monday-Thursday): ADIPEC, Abu Dhabi.

11-14 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi.

11-14 November (Monday-Thursday): ADIPEC Decarbonisation Accelerator, Abu Dhabi.

DECEMBER

2-3 December (Monday-Tuesday): National Day, public holiday.

10-12 December (Tuesday-Thursday): Middle East Business Aviation, Dubai World Central.

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