A good day for investments, but bad day for M&A

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Parkin to price its IPO + UAE’s economy to grow 4.6% in 2024, according to Moody’s

Good morning, lovely people. We have a packed issue for you this morning as we slide into the end of the first workweek of Ramadan (but who’s counting?), so without further ado…

But first, when do we eat? Maghrib prayers are at 6:31pm in Dubai, and 6:34pm in Abu Dhabi. Fajr prayers are at 5:12am in Dubai and 5:16am in Abu Dhabi.

Several stories are vying for your attention this morning, including reports that Eagle Hills will spend EUR 5 bn on a development in Budapest, updates on two cross-border M&As that could fall through, tons of investment news, and a new legislation to regulate digital assets in Dubai.

PUBLIC SERVICE ANNOUNCEMENT-

#1- Fog alert: The National Center of Meteorology warned of a heavy fog formation in coastal and inland areas that could affect visibility until 9am today.

#2- If you were scheduled to fly Emirates between Hamburg and Dubai, your flight may have been canceled or delayed: Emirates made changes to two flights set to fly from Hamburg to Dubai today due to aviation staff in Germany going on strike. Flight EK060 has been canceled, while flight EK062 was pushed to tomorrow at 5:30pm.

WATCH THIS SPACE-

#1-Parkin is set to price its IPO today, following a successful book building process that saw books covered within seconds of books opening last week, setting it up to raise up to AED 1.57 bn from the listing. Parkin’s shares will start trading next Thursday, 21 March under the ticker PARKN.

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

#2-ADIA-backed Galderma sets price range for IPO: Abu Dhabi Investment Authority-backed Swiss pharma company Galderma has set the indicative price range for shares in its upcoming IPO on SIX Swiss Exchange at CHF 49-53 per share, the company said in a press release (pdf). The share sale could see Galderma raise some CHF 2.3 bn (USD 2.6 bn). The final pricing will be announced next Thursday, 21 March, with trading set to begin the following day.

Background: In 2019, a consortium of ADIA, Swedish private equity company EQT, and Singapore's GIC acquired Galderma, formerly called Nestlé Skin Health, for CHF 10.2 bn from Nestlé.

ADIA and EQT are set to remain major shareholders following Galderma’s debut, CEO Flemming Ornskov told Reuters last week. The proceeds from the IPO will be used to “strengthen [Galderma’s] balance sheet by repaying and refinancing debt,” the company said in its statement.

DATA POINTS-

#1- Global credit rating agency Moody’s expects the UAE’s economy to grow 4.6% in 2024,up from 3.1% in 2023, on the back of high business confidence and government reforms to attract foreign investments, The National reports, citing its latest UAE outlook. Moody’s also attributes growth to a flexible and dynamic non-oil economy buffering against global macroeconomic uncertainties, and increasing borrowers’ ability to repay loans.

The figure is more or less in line with other pundits’ forecasts: S&P Global expects the economy to accelerate to more than 5%, while the Central Bank of the UAE expects it to grow 5.7% and the Finance Ministry projects 5.3% growth. On the less bullish side, the World Bank expects to see 3.7% growth in 2024, while The Arab Monetary Fund sees the economy growing at a 4.3% clip.

The agency reaffirmed the local banking sector’s rating at Aa2 and revised its outlook to positive from stable, signifying strengthened shock-absorbing margins and high cash reserves for banks. Loans will also remain broadly stable, while deposit growth is expected to remain higher than credit demand, Moody’s reportedly said.

#2- Some AED 61 bn in local industrial exports passed through Abu Dhabi’s Ports during 2023, Albayan reports, citing data from Statistics Center Abu Dhabi. Some 20.5% of the year’s industrial exports — worth AED 12.5 bn — were concentrated in 4Q 2023. Heavy industries accounted for the lion’s share (46%) of total exports, amounting to AED 28.1 bn.

#3- Dubai real estate market prices surged during February to their highest level in almost a decade,climbing 17.4% y-o-y in February to AED 1.294 per sq ft, according to data from Property Monitor. Sales also hit a record high of 11.9k transactions, up 30.4% y-o-y.

REMEMBER- Dubai’s real estate market is widely expected to see more price growth in 2024, though most analysts predict slower growth from last year’s boom.

#4- Dubai ranked ninth in Preply’s Global Expat Index,coming ahead of cities includingToronto and Sydney with a total score of 6.8. The city was ranked as the third-best in Asia for expats planning to move in 2024, scoring 6.81 on the back of a high safety score (83.4) and an attractive tax framework.

Abu Dhabi bagged eighth place in Asia for expats planning to move in 2024 with a score of 6.09. The emirate ranked highest in safety in Asia, with an overall score of 86.71.

#5- The volume of goods processed through Dubai Commercity’s transit hub rose 56% y-o-y in 2023, and orders completed via its digital trade platform surged by 158%, according to a Dubai Media Office statement. Its digital trade platforms facilitated a 92% surge in shipping operations for goods from distribution centers.

#6- DMCC reported a record-breaking USD 38.3 bn in diamond trade in 2023, with a 32% y-o-y increase in the value of polished diamond transactions, according to a Dubai Media Office statement. The value of rough and polished diamonds traded rose 2% y-o-y to USD 38.3 bn, with a compound annual growth rate of 11% over the past five years.

THE BIG STORY ABROAD-

It’s a toss-up between the US presidential election and Tiktok for which story is getting the most attention this morning in the global business press. Media outlets around the world are taking stock of Trump v. Biden, Round II — it’s the first rematch between US presidential contenders since 1956. They’re also asking what’s next for Tiktok after the House of Representatives voted yesterday to give owner ByteDance six months to sell it or face a ban in the US of A.

Must-read on the US election:Biden and Trump clinch nominations, setting the stage for a grueling general election rematch (Associated Press).

Must-read on TikTok:What’s next for TikTok and its US users after House approves ban (Financial Times).

Cue the protectionists: Overseas takeovers of high-profile western companies are raising hackles in London and Washington. Rishi Sunak is pushing for legislation that would prevent UAE-backed RedBird IMI from bidding for The Telegraph. And across the pond, Joe Biden is expected to speak out today against Nippon Steel’s USD 14.9 bn bid for US Steel.

CIRCLE YOUR CALENDAR-

The Blockchain Life Forum 2024 is scheduled to run from Monday, 15 April to Tuesday, 16 April,at Festival Arena in Dubai. The two-day event will gather web3 and crypto professionals from over 120 countries to discuss how to read and invest in the crypto market.

The Sharjah Animation Conferenceby the Sharjah Book Authority is set to run from 1-5 May at Expo Centre Sharjah, gathering global animation leaders and artists.

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

Eagle Hills to invest EUR 5 bn into development of a railway station in Budapest

Real estate developer Eagle Hills will help develop a Budapest neighborhood under a EUR 5 bn agreement inked between Hungarian Foreign Minister Peter Szijjarto and UAE Trade Minister Thani Al Zeyoudi, Bloomberg reports. Details around the agreement are vague, though the business information service says the developer will renovate a partly disused railway station northeast of central Pest.

More funding from Hungary? Bloomberg reported late last year that the Budapest government will invest EUR 1 bn of its own funds to improve the surrounding infrastructure.

What’s next: Construction and Transport Minister Janos Lazar said the details of the project will be worked out in 1H 2024.

Background: The country had been eyeing foreign funding for the overhaul of the neighborhood into a “Dubai-style” hub for a few months, though the proposed plan was met with dissent from the municipal government, who said it would crowd the country’s historic skyline.

Eagle Hills has been expanding its reach in recent months: The Abu Dhabi-based developer last month agreed to establish a USD 4 bn real estate company in Bahrain to develop multi-purpose projects in the Kingdom.

Adnoc, BP put NewMed stake acquisition on hold + UK takes another step towards blocking RedBird IMI’s Telegraph takeover bid

Not the best day for M&A: We have news of two separate cross-border acquisitions from Emirati companies and investors that could fall through.

#1- Abu Dhabi National Oil Company (Adnoc) and UK energy giant BP have paused negotiations on a USD 2 bn major stake purchase in Israel’s NewMed Energy amid “uncertainty created in the external environment,” according to a statement (pdf) from NewMed.

It’s not completely off the table: Adnoc and BP “again expressed interest” in the stake purchase, the Israeli offshore natural gas producer said in the statement, and there is potential for the companies to complete their bid once geopolitical tensions have cooled, Bloomberg cites a person familiar with the matter as saying.

Background: Adnoc and BP agreed to jointly acquire 50% of the Israeli energy company for nearly USD 2 bn back in March 2023. As part of the acquisition, the companies planned to establish a new joint venture targeting gas development in the East Mediterranean, and other international areas of mutual interest.

Adnoc and BP have other plans in the meantime: Earlier in February, the companies agreed to form a joint venture to develop natural gas assets in Egypt. Adnoc will provide funds to support the venture’s expansion, while BP contributes its stakes in three development concessions.The JV is scheduled to go live in 2H 2024.

Reuters and the Financial Times also had the story.

#2- UK closer to blocking RedBird IMI’s GBP 600 mn bid for the Telegraph: British Prime MinisterRishi Sunak has proposed amendments to legislation that would ban foreign state ownership of British newspapers and magazines, effectively blocking the acquisition of Telegraph Media Group by Abu Dhabi-backed RedBird IMI, the Financial Times reports, citing plans outlined by UK Culture Minister Stephen Parkinson in the UK Parliament on Wednesday.

The details: Proposed amendments will see the UK’s competition watchdog, the Competition and Markets Authority, block any transactions involving a foreign state's influence over a British media group, with state influence stipulated as foreign governments acting in a private capacity and investing their private wealth. The legislation will be voted on in the next reading of a digital markets bill passing through parliament.

RedBird IMI’s take: A spokesperson from RedBird IMI told the FT that it was “extremely disappointed” by the move and is currently evaluating “next steps,” adding that the acquisition is a “fully commercial undertaking.”

REMEMBER- RedBird IMI could be joined by other companies, including Rupert Murdoch’s News Corp and the owner of the Daily Mail, General Trust. This would dilute RedBird IMI’s stake, potentially down to 25%, which could ease UK watchdogs’ concerns over foreign state control of the media outlet, sources said earlier. RedBird IMI is majority owned by deputy prime minister Sheikh Mansour bin Zayed Al Nahyan.

Background: The transaction has been contested in the UK, with 73 British MPs, including a cabinet minister and frontbenchers from both political parties calling to halt the takeover. UK Culture Secretary Lucy Frazer issued an order to prevent any further changes to the ownership of The Telegraph until the UK government completes its investigation into the takeover in February, and will decide on the bid next week after receiving findings from the Competition and Markets Authority on the acquisition.

Gulf Capital to invest USD 100 mn in Saudi startups over the next five years

Gulf Capital will invest over USD 100 mn in Saudi startups over the next five years in a partnership with the Saudi Research Development and Innovation Authority (RDIA), a Gulf Capital press release reads.

The details: The partnership will invest in Saudi tech startups in the healthcare, healthtech, technology, fintech, energy, renewables, sustainability, and future economies sectors, and help them expand across the Kingdom and further their regional and global expansion, the statement said. The asset manager will also help facilitate the entry of global innovators into the Saudi market, according to the statement.

What they said: “We have an 18-year track record of investing in Saudi technology and innovation companies and helping them expand across Saudi Arabia and the broader region. In partnership with the RDIA, we look forward to increasing and accelerating our investments into high growth companies in the Kingdom,” Gulf Capital Co-Founder and CEO Karim El Solh said.

More on Gulf Capital: The asset management firm — which currently holds some USD 2.4 bn in assets under management — focuses primarily on late-stage control buy-outs, growth capital, private debt and real estate projects in the Middle East region. To date, Gulf Capital has poured SAR 2.2 bn ( cc. USD 586.6) in investments into the Kingdom, with Saudi Arabia's top payment services provider Geidea standing as one of its major investments.

Mubadala to back US-based Blue Opal Capital

Abu Dhabi sovereign wealth fund Mubadala will be an anchor investor for New York-based private equity firm Blue Opal Capital’s second venture capital fund ahead of its IPO, state news agency Wam reports. Details on the size of Mubadala’s investment in the fund were not disclosed.

About the fund: The fund will target identifying and investing in entrepreneurial VCs, primarily those based in the US, through a platform that operates as a fund of funds.

Mubadala is ramping up its private credit investments to capitalize on the growing demand for debt capital from high-growth tech businesses, its head of credit investments Fabrizio Bocciardi said in September. The sovereign wealth fund also agreed with Goldman Sachs last month to co-invest USD 1 bn in private credit in “high quality companies and sponsors” in the Asia-Pacific region, and earmarked USD 1 bn each for alternative asset manager Blue Owl Capital ’s technology lending strategy to finance tech and software companies in September and its JV with Ares Management in March last year.

And some more: Mubadala set up a USD 2.5 bn JV with Alpha Dhabi to co-invest in global credit last year. The wealth fund also took on the role of anchor investor for a private credit fund set up by Starz Real Estate and targeting European property in November 2023.

Mubadala isn’t alone: The Abu Dhabi Investment Authority also ventured into private credit in September, backing a USD 5 bn fund launched by Wells Fargo alongside asset manager Centerbridge and making a USD 932 mn investment in Australian real estate private credit company Qualitas Diversified Credit Investments. The asset class is expected to balloon to USD 2.3 tn in size by 2027, according to Morgan Stanley.

OTHER INVESTMENT NEWS-

#1-Saudi Venture Capital invests USD 30 mn Olive Rock Partners’ private equity fund:Saudi Venture Capital (SVC) poured USD 30 mn in Abu Dhabi-based Olive Rock Partners ’ maiden private equity fund Olive Rock Partners Fund I, Saudi state news agency SPA reported yesterday, citing a SVC statement. Olive Rock Partners is an independent GCC-focused private equity fund based in the Abu Dhabi Global Market (ADGM).

Details are scant: The fund will focus on investments in “mid-market buyouts that are geographically advantaged and technologically enabled,” according to the statements. No further details were provided on the fund or its planned investments.

Abu Dhabi-based Lunate Capital and JPMorgan launch UAE's first bond ETF

Abu Dhabi’s Lunate Capital and JPMorgan Chase are introducing the first bond exchange-traded fund (ETF) for the UAE’s bond market, Bloomberg reports. The Chimera JPMorgan UAE Bond UCITS ETF is set to debut on the ADX on 26 March. The index “aims to replicate the performance” of the JPMorgan MECI UAE Investment Grade Custom Index, which monitors liquid, USD-denominated debt securities from UAE-based issuers.

The index will cover investment-grade issuances with a face amount of at least USD 500 mn, including those issued by entities such as Mubadala Investment, the Emirate of Abu Dhabi, the UAE government, First Abu Dhabi Bank, Abu Dhabi National Energy Company, and the Investment Corporation of Dubai.

The ETF will distribute dividends in June and December when available, and will have an indicative yield to maturity of 5.4% as of 7 March. The initial offering period runs from today until next Wednesday, 20 March, with an offering price set at AED 3.67 (USD 1).

The UAE is the world’s second-biggest destination for greenfield FDI

The UAE ranked second globally in the number of greenfield FDI projects in 2023 with 1,280 ventures, rising 36% y-o-y and trailing only behind the US, according to an Emirates NBD report (pdf). FDI inflows grew by 33% y-o-y to reach USD 15.08 bn.

Dubai Dubai maintained its top spot among cities with over 1k projects, while Abu Dhabi ranked 6th globally with 172 projects. It also led in terms of FDI flows, with USD 6.81 bn, Abu Dhabi close behind at USD 4.48 bn, according to the report. Sharjah secured USD 2.75 bn, primarily fueled by India-based Infinite Mining & Energy's investment in a new refinery in Hamriya Freezone.

The breakdown by sector: The businesses service sector had the largest share of greenfield FDI projects, with 383 projects during the year, followed by software and IT (269), financial services (131), industrial equipment (81), and real estate (54). Coal, oil and gas attracted the most FDI flows at USD 2.6 bn, mostly due to the USD 2.5 bn Hamriya refinery, according to the report.

At 60 projects, Dubai was the leading city in new greenfield HQ projects, beating out Singapore (40 projects) and London (31). The UAE claimed the third spot globally, with 76 greenfield HQ projects, with the UK and US taking the top two spots.

This is thanks to regulatory reforms and ease of doing business: “The introduction of regulatory reforms, including the allowance of 100% foreign ownership in specific sectors, enhanced intellectual property protections, and streamlined licensing procedures, has significantly bolstered the UAE's appeal to international investors,” the report said. “These changes have not only facilitated ease of doing business but have also instilled confidence among foreign investors regarding the protection of their investment,” it added.

Momentum expected to continue: The “synergy between improved investment conditions and robust trade partnerships” will help sustain the momentum of FDI flows and achieve the goal of USD 150 bn in FDI Inflows by 2031, according to Emirates NBD.

Mashreq plans to double down on AI for new app, with an eye to develop a superapp

Mashreq weaves AI into new app, plans superapp in the future: Mashreq plans to double down on research and development on generative AI to add more features to its newly revamped Mashreq app over the coming year, Mashreq’s executive vice president and head of Neo and personal banking, Radu Topliceanu, told Enterprise UAE. The bank is looking to “substantially” increase user engagement rates through the introduction of new, more individualized features.

“GenAI is especially exciting for us because it has the potential to unlock an extraordinary level of intuitive personalization,” he said.

“For banks, GenAI has enormous potential for process automation, cost efficiencies, security, and customer services, be it for predictive analysis, personalized engagement, chatbots, fraud detection and prevention, anti-money laundering or risk management,” he told us. “It will truly revolutionize how banks run, radically change the interface between banks and their customers, enabling lightning-fast, highly relevant, and nuanced experiences,” he added.

Mashreq launched its new consolidated mobile banking app, Mashreq UAE, which merges the Mashreq app with Mashreq Neo, late last year. The app creates a unified, single-login platform for clients to access different financial services, and weaves in AI through a virtual assistant and digital chatbot, the bank said in a press release at the time. It also streamlines the digital onboarding process for new customers, enabling them to open an account with biometric face recognition.

WATCH THIS SPACE-In the long term, the bank wants to develop the app into a superapp, integrating both financial and non-financial services, Topilceanu told us.

Feedback on the new app has been “overwhelmingly positive,” Topilceanu said, adding that the update has boosted the number of users on the app to 1.25 mn. Customer satisfaction with the digital onboarding process also significantly improved, he said.

The app allows users to access all of the bank’s financial services through a single platform — that includes investment solutions, trading, retail banking and Mashreq’s young adults-focused NeoNXT, he explained.

DIFC enacts new digital assets regime

DIFC rolls out the world’s first Digital Assets Law: The Dubai International Financial Centre (DIFC) has enacted its new Digital Assets Law (pdf), accompanied by amendments to existing legislation to address the implications of the new digital assets regime, a DIFC press release reads. The law came into force on 8 March.

The new law aims to provide clarity and a holistic legal framework for the usage of digital assets, according to the statement. Existing laws, such as the Contracts Law, Obligations Law, Security Law, Damages and Remedies Law, Trust Law, and Foundations Law, have been updated to address issues concerning digital assets, to keep up with the financial landscape as it evolves.

Why this matters: “We consider this legislation to be groundbreaking as the first legislative enactment to comprehensively set out the legal characteristics of digital assets as a matter of property law, and to provide for how digital assets may be controlled, transferred and dealt with by interested parties,” DIFC Chief Legal Officer Jacques Visser said. “In recognizing the growing potential of digital assets, the DIFC boldly positions itself as a pioneer by enacting the world’s inaugural digital assets law,” Baker McKenzie Partner Mazen Boustany told Enterprise UAE.

Digitizing paper trade documents: The DIFC also released updates to allow the usage of electronic transferable records, mirroring traditional trade paper documents such as bills of lading, bills of exchange, promissory notes, and warehouse receipts, the statement reads. These updates make international digital trade smoother by speeding up document processing, improving security, and allowing for automated transactions with smart contracts.

The DIFC also amended its Security Law to adapt to recent advancements in international secured transactions, particularly those involving digital assets as collateral. The new legislation — which replaces DIFC’s 2005 Security Law — improves its securities regime, drawing from international models like UNCITRAL’s Model Law on Secured Transaction and incorporating provisions from the new Digital Assets Law.

Global investors still have appetite for GCC assets

Reforms drive robust inflows into GCC asset markets: Global investor interest in the GCC has picked up momentum amid reforms being enacted at a “phenomenal” pace, creating “a powerful and persuasive story” for investment, HSBC’s Regional Head of Markets & Securities Services for MENAT, Nabeel Albloushi said at HSBC’s MENAT Future Forum in Dubai, according to a release (pdf).

A “compelling case” for investment: The reforms — including introducing new hedging instruments and boosting institutional investor participation in asset markets — have spurred “USD bns of fund inflows,” Albloushi said. “The region has momentum with strong growth, healthy public finances, strong demographics and lower inflation than many other parts of the world,” Albloushi added.

The UAE is paying attention: The government is planning to implement new policies to ramp up the asset management sector’s contribution to the national economy, including “[simplifying] licensing process with substantially reduced timelines,” Securities and Commodities Authority chief executive, Maryam Buti Al Suwaidi, said at the forum.

Dubai plans digital platform for setting up businesses in the emirate

Yesterday was all about facilitating business and investment for Dubai, with the emirate’s government issuing two decisions aimed at improving its investment environment and expediting regulatory procedures.

#1- Getting licensed in Dubai will be smooth(er) sailing from now on: Companies seeking to set up shop in Dubai will now be able to obtain all the licenses needed from a new unified digital platform for establishing companies in the emirate, following a decree fromDubai Ruler Sheikh Mohammed bin Rashid Al Maktoum, according to a statement.

The platform will serve as an integrated channel allowing investors to complete all their registration and licensing procedures, preventing procedure duplication by streamlining the issuance of licenses and permits through a single channel. The platform will enable companies to apply for licenses and obtain them from all relevant regulatory bodies, including the Department of Economy and Tourism, the Dubai International Financial Centre (DIFC), special development zones and freezone authorities.

#2- Dubai’s Executive Council chairman Sheikh Hamdan bin Rashid Al Maktoum also issued a new decision designed to facilitate investment procedures in the emirate, the statement reads. The decision sets out a raft of measures, including streamlining registration on the Invest in Dubai digital platform, unifying digital data registration, providing instant licensing and license renewal, one-step fee payment, and the standardization of procedures, rules and conditions.

Traveltech Seeru secured pre-seed funding led by US-based Nabtah Ventures

UAE-based traveltech Seeru closed an undisclosed pre-seed funding round led by US-based Nabtah Ventures, according to a company statement. Although no exact figure was disclosed, “the amount falls within the typical range for pre-seed rounds, typically in the six-figure range,” co-founder and CEO Abd Elmohaimen Mansi told Enterprise UAE.

Where the money is going:Seeru plans to use the funding to improve its product development and technology, as well as support recruitment efforts, marketing initiatives, global expansion plans, Mansi said.

Global expansion strategy: “Our strategy for expanding our global presence revolves around two key products aimed at different segments,” Mansi told us. “Firstly, our B2C product targets any traveler in the MENA region and beyond, providing them with a straightforward flight booking process. Secondly, our B2B product is geared towards companies and travel agencies in the region, offering direct access to extensive flight content for their employees and senior management,” he added.

Future expansion initiatives include introducing a specialized Umrah platform in 3Q 2024 and unveiling a distinctive travel marketplace catering to explorers in 4Q 2024.

About Seeru: Co-founded by Mansi and Abdullah Mancy, Dubai-based Seeru seeks to streamline travel planning. With a diverse team spanning four countries, the company serves various sectors including individual travelers, organizations, travel agencies, and meta-search companies.

National Media Office gets new director general

President Sheikh Mohammed bin Zayed Al Nahyan has appointed Jamal Mohammed Obaid Al Kaabi as director general of the National Media Office, reports Wam. The president also tapped Ibrahim Abdul Latif Ahmed Al Mousa as executive director of the authority’s support services sector, and Muhammad Ali Muhammad Al-Dhahouri as executive director of the authority’s media operations sector.

ADCB, HSBC, Commercial Bank of Dubai among underwriters for Investcorp’s USD 800 mn RCF

DEBT WATCH-

Investcorp Capital’s USD 800 mn revolving credit facility was underwritten by a consortium of five banks: Abu Dhabi Commercial Bank, Al Ahli Bank of Kuwait (DIFC Branch), Commercial Bank of Dubai, Gulf International Bank and HSBC Middle East Limited, Investcorp Capital said in an ADX disclosure (pdf).

ICYMI: Investcorp Capital entered into the revolving credit facility agreement with a syndicate of regional and international banks earlier this week. This four-year term facility, extendable by one year, offers more favorable pricing terms compared to the existing facility from Investcorp Group.

REAL ESTATE-

Abu Dhabi-based real estate developer Aldar Properties launched small-scale mid-rise residential project Nouran Living in Saadiyat Island’s Marina District, according to a press release. Nouran Living offers 372 units, starting at AED 750k, open to all nationalities. Units will be available from next Tuesday, 19 March.

INFRASTRUCTURE-

) #1- Quantum cryptography communications facility launches in UAE: Abu Dhabi's Technology Innovation Institute has launched the Abu Dhabi Quantum Optical Ground Station, the Abu Dhabi Media Office reports. The ground station will integrate Abu Dhabi and the wider UAE into the global Quantum Key Distribution network, ensuring secure and private communication through tamper-proof encryption keys.

SOUND SMART- The Quantum Key Distribution network is a form of quantum cryptography, ensuring that the sender of the information can distribute a key using quantum means ensuring security of data transmitted.

#2- Abu Dhabi, Korea to ramp up transport systems: Abu Dhabi’s Municipalities and Transport Department and Korea’s Land, Infrastructure and Transport Ministry inked an agreement to cooperate and swap expertise to advance sustainable transport solutions and urban development, reports the Abu Dhabi Media Office.

#3- Saudi Arabia’s Acwa Power has received the commercial operation certificate for its Al Taweelah desalination plant in Abu Dhabi, according to a statement. The certificate — issued by Emirates Water and Electricity (Ewec) — is for the launch of the remaining 76k cbm/day phase of the project, which already began operating at a capacity of some 454.6k cbm/day of desalination capacity in 2022. With this latest addition, the project — which cost USD 874 mn — has now achieved full commercial operation with a total capacity of 909.2k cbm/day. Acwa Power owns a 40% stake in the project company, with the remaining 60% owned by UAE’s Abu Dhabi Power Corporation and Mubadala Development Company.

LOGISTICS-

Kezad + Al Masaood Auto ink agreement for spare parts warehouse: AD Ports subsidiary Khalifa Economic Zones Abu Dhabi (Kezad) and Abu Dhabi based Al Masaood Automobiles have inked a lease agreement for 12k square meters of warehousing space in Kezad to serve as their spare parts logistics center, according to a press release. The agreement looks to streamline Al Masaood’s operations by boosting availability and dispatch rates for spare parts. No details regarding investments and timelines were disclosed in the statement.

AVIATION-

#1- Etihad Cargo has entered into a partnership with Awery AviationSoftware to boost its charter service capabilities by adopting Awery’s enterprise resource planning (ERP) system for its cargo chartering program, according to a press release. The ERP system will allow Etihad Cargo to categorize and prioritize charter queries, strengthen analytics and data storage for performance evaluation, and enhance pricing capabilities. The move will help the company meet increased demand for charter services on the back of a boom in e-commerce.

Emirates SkyCargo goes live on cargo.one: Emirates SkyCargo is now available on cargo.one, allowing customers to see Emirates SkyCargo schedules, rates, and real-time capacity while enabling instant bookings, according to the Dubai Media Office.

CONSTRUCTION-

Malaysian firm contracted for Ras Al Khaimah resort: Malaysian engineering and construction firm Eversendai was awarded a contract to develop the structural steel work for the 1.5k room Wynn Al Marjan Island Integrated Resort Development in Ras Al Khaimah, the firm said in a filing to Bursa Malaysia. The development will be carried out by the company’s subsidiary, Eversendai Mega Structure. The steel scope project for the resort is among a slew of new projects worth a collective RM 5.4 bn (AED 4.23 bn) the company secured in the UAE, Saudi Arabia, and India.

INVESTMENT-

#1- Abu Dhabi, Western Australia to deepen economic cooperation: Abu Dhabi Investment Office (Adio) and Western Australia’s Department of Jobs, Tourism, Science and Innovation inked an agreement to explore collaboration within the Diversify WA Strategy and Adio’s strategic clusters, and additional areas of mutual economic interests, reports the Abu Dhabi Media Office. The agreement will see the entities cooperate to support large-scale mining and industrial operations, startups, and SMEs, as well as promote cross-sector activities, including supply chain development and advanced manufacturing.

The UAE ❤️ Australia for trade: The UAE is Australia’s largest trade and investment partner in the Middle East, with bilateral trade reaching USD 9.3 bn in 2022. The countries launched negotiations for a Comprehensive Economic Partnership Agreement to enhance trade and investment flows in December 2023.

#2- UAE, Europe to deepen economic ties: The government’s global investment arm Investopia inked an agreement with Milan’s EFG Consulting to develop a joint framework to enhance UAE-Europe economic ties and promote investments between the UAE and Italy, reports Wam. The partnership comes ahead of the upcoming Investopia Europe event in Milan, aiming to ramp up sustainability across economic and social sectors.

TECH-

Cloudflare sets up shop in Dubai: US connectivity cloud company Cloudflare inaugurated a new office in Dubai Internet City, to be led by Cloudflare’s head of Middle East sales, Bashar Bashaireh (LinkedIn), it said in a statement. The move comes in a bid to boost the company’s investment in the Middle East. “Countries like the UAE and Saudi Arabia rank among the highest worldwide when it comes to access to the Internet, making the region a powerful source of growth and innovation,” says Cloudflare co-founder and president Michelle Zatlyn.

SPACE-

Local space sector set for upgrade: Abu Dhabi’s Department of Culture and Tourism and the Mohammed Bin Rashid Space Centre inked an agreement to advance national space exploration capabilities, focusing on education, awareness programs, and knowledge exchange, according to the Abu Dhabi Media Office.

Behind the BTC surge

Is “the halving” driving BTC’s surge? There are as many theories about what has driven BTC north of USD 72k as there are pundits talking up the asset class, but one theory gaining a lot of currency in recent days attributes it to “the halving.”

Uh, Enterprise? What that [redacted] are you talking about? “The halving” (BTC bulls insist it is “The Halving, a proper noun) is a mechanism built into the cryptocurrency designed to control the supply of new coins — effectively ensuring it remains valuable.

How it works: BTC has a built-in limit of 21 mn coins. The halving is a programmed event (architected by BTC’s pseudonymous creator, Satoshi Nakamoto) that cuts the reward for miners in half, roughly every four years, thus controlling supply and making it hard to hit 21 mn coins in circulation (cf: Zeno’s Paradox).

It’s happened before: When BTC was first introduced, the reward for mining a block (IYKYK) was 50 BTC. The reward dropped to 25 BTC in 2012 (the first halving), then to 12.5 BTC in 2016, and to 6.25 BTC in 2020.

Why is it important? The idea is that the halving makes it less attractive for “miners” to make BTC, thus slowing its production and putting a floor under the price — kind of like OPEC+ output cuts designed to make sure oil remains expensive.

When will the “halving” happen? Nobody knows for sure, but most likely in April, it seems.

How is it impacting price? Some pundits think the prospect of tighter supply going forward is behind BTC breaking the USD 72k barrier for the first time a few weeks back.

THE MARKETS THIS MORNING-

Asian markets are trading sideways this morning after Wall Street's tech rally appeared to lose momentum, CNBC reports. Futures suggest major European benchmarks are also heading for a mixed open, while things are looking up on Wall Street: Futures inched higher overnight as traders shrugged off a 46% slump in EV maker Fisker's shares after the Wall Street Journal suggested it had hired bankruptcy advisors.

ADX	9,244	+0.2% (YTD: -3.5%)
DFM	4,259	+0.2% (YTD: +4.9%)
Nasdaq Dubai UAE20	3,703	+0.3% (YTD: -3.6%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.1% o/n	5.4% 1 yr
TASI	12,723	+0.9% (YTD: +6.3%)
EGX30	31,014	-5.0% (YTD: +25.0%)
S&P 500	5,165	-0.2% (YTD: +8.3%)
FTSE 100	7,772	+0.3% (YTD: +0.5%)
Euro Stoxx 50	5,001	+0.4% (YTD: +10.6%)
Brent crude	USD 84.03	+2.6%
Natural gas (Nymex)	USD 1.66	+0.1%
Gold	USD 2,176	+0.1%
BTC	USD 73,236	+3.0% (YTD: +72.9%)

THE CLOSING BELL-

The ADX rose 0.2% yesterday on turnover of AED 1 bn. The index is down 3.5% YTD.

In the green: RAK Co. for White Cement and Construction Materials (+6.9%), GFH Financial Group (+5%) and Easy Lease Motorcycle Rental (+4.7%).

In the red: National Corporation for Tourism and Hotels (-4.9%), Sudatel Telecommunications Group (-2.5%) and Response Plus Holding (-2.3%).

Over on the DFM, the index closed up 0.2% on turnover of AED 1.2 bn, while Nasdaq Dubai is up 0.3%.

CORPORATE ACTIONS-

Shuaa Capital is seeking bondholders’ approval to change the terms of a USD 150 mn bond issuance, due on 31 March, according to a DFM disclosure (pdf). The investment bank approved the bonds back in October 2020 (pdf), priced at a coupon of 7.5% and listed on the London Stock Exchange’s International Securities Market. It has since extended their maturity date once last year.

Refresher: Shuaa saw its net losses deepen more than fivefold over the past year. The asset management firm has since accepted resignations from some of its senior management.

Abu Dhabi National Oil Company (Adnoc) approved a dividend payout of AED 1.32 bn for 2H 2023, bringing total dividends for the year to AED 2.63 bn, according to an ADX disclosure (pdf).

CALENDAR

MARCH

14 March-14 April (Thursday-Sunday): Dakakeen Festival, Khorfakkan Amphitheatre.

21 March (Thursday): Parkin shares begin trading.

26 March (Tuesday): Chimera JPMorgan UAE Bond UCITS ETF to debut on the ADX.

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.

15-16 April (Monday-Tuesday): Blockchain Life Forum 2024, Festival Arena, Dubai.

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

1-5 May (Wednesday-Sunday): The Sharjah Animation Conference, Expo Centre Sharjah.

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.

8-12 May (Wednesday-Sunday): Schmetterling Annual Conference, Al Ain and Abu Dhabi.

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.

19 May (Sunday): Investopia Europe, Milan.

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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