Presight acquires 51% of AIQ

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Stormy weather ahead + Agility Global hits the ADX today

Good morning, lovely people. It’s expected to be a stormy day today, so strap in and stay home if you can. The weather in Dubai still looked stable before we hit dispatch — save for a brief hour overnight that saw strong winds and some rain. Ras Al Khaimah also saw heavy rain, along with hail, thunder, and lighting, according to the NCM.

REMEMBER-We’re in for more rain today, along with another wave of thunderstorms and a chance of hail in some areas, the National Center for Meteorology forecasts. The Interior Ministry has advised schools nationwide to switch to remote learning today and tomorrow due to the unstable weather.

The Human Resources and Emiratization Ministry has also advised private sector companies to implement remote work today and tomorrow, while government employees will be working from home.

The Interior Ministry also closed all roads leading to areas prone to flash floods, water accumulations, and dams, cautioning residents to stay home today and avoid rainfall areas. Beaches, parks, and public markets have also been shuttered in Dubai for the day.

The Dubai Metro will continue operating until 5am tonight, rather than the usual midnight cut-off time, the Roads and Transport Authority said on X. The metro had also extended its operating hours last night. Trains from Centrepoint Station will stop exclusively at Emirates Airlines Station, Airport Station Terminals 1 and 3, and GGCO Station.

THE BIG STORIES here at home are a mix of M&A, AI, and a fresh update on the Spinneys IPO. First up: Spinneys set its final IPO price yesterday, raising AED 1.38 bn in a heavily oversubscribed book building process. On the AI front, ADX-listed Presight has acquired a 51% stake in Adnoc-G42 JV AIQ.

IN MEMORIAM-

The president’s representative in Al Ain region, Sheikh Tahnoun bin Mohammed Al Nahyan, passed away last night, Wam reports. The Presidential Court has announced a seven-day period of official mourning, during which flags will be flown at half-mast. Sheikh Tahnoun was 82 years old. Wam, The National, are all out with obituaries.

FROM THE ECONOMY MIDDLE EAST SUMMIT-

The UAE has made strides in diversifying its economy away from oil, Economy Minister Abdulla Bin Touq Al Marri said at the Economy Middle East Summit 2024 yesterday at the Abu Dhabi Global Market (ADGM), Albayan reports. The non-oil economy is expected to grow at a 4.7% clip over 2024 and 2025, he added.

IMF Executive Director Mahmoud Mohieddin also praised the UAE’s diversification efforts, with the non-oil sector currently accounting for around 74% of the country’s GDP, Wam wrote. Mohieddin also lauded the Emirates’ investments in newer economic sectors, including the green economy, the digital economy, and smart investments, contributing to the nation’s growth.

The region’s outlook, however, is mired in uncertainty: While the region is currently returning to its pre-pandemic low growth rates of around 2.7% in 2024, the regional conflict and rising levels of debt are straining the region’s outlook, World Bank Chief MENA Economist Roberta Gatti, Wam report ed separately. “Rising debt is heavily concentrated in oil-importing economies, which now have a debt-to-GDP ratio 50% higher than the global average of emerging market and developing economies,” Gatti said. Oil importers need to practice fiscal discipline, while oil exporters need to diversify their fiscal revenue.

HAPPENING TODAY-

Agility Global makes ADX debut today: Kuwaiti logistics outfit Agility Global’s shares will start trading on the Abu Dhabi Securities Exchange (ADX) today, after parent company Agility got the green light for Agility Global’s technical listing last week, according to a company disclosure. You can read Agility Global’s prospectus here (pdf).

DATA POINTS-

#1- Dubai property market had a good April: Dubai’s real estate sector reeled in AED 31.7 bn in sales last month, up 20.6% y-o-y, and marking the emirate’s highest monthly performance to date, Emarat Alyoum reports, citing data from the Dubai Land Department. Over 11.5k properties were handed over during the month, representing an increase of 44.4% y-o-y. Dubai’s property market has seen AED 140.5 bn across 48.2k sales since the start of the year.

#2- Foreign capital hits AED 3.23 mn in Sharjah: The value of foreign capital in Sharjah has seen 30% y-o-y growth in 2023, reaching AED 3.23 mn, deputy director of commercial affairs at the Sharjah Economic Development Department, Ahmed Saif bin Saad Al Suwaidi, told Sharjah24. Investors from India, Pakistan, Syria, and Egypt made up the top four.

WATCH THIS SPACE-

#1- ADIA eyes stake in Nord Anglia: Abu Dhabi Investment Authority (ADIA) is considering snagging a minority stake in international school operator Nord Anglia, Bloomberg reports, citing people with knowledge of the matter. Nord Anglia has also attracted interest from private equity buyout firms KKR, Permira, and Hellman and Friedman, which are seeking controlling stakes, and Singaporean sovereign wealth fund GIC Pte, which is interested in a minority stake in the business. Talks of a consortium between the Abu Dhabi and Singaporean wealth funds and interested private equity firms for the purchase are also in play, the sources added.

Background: The company’s major shareholders — EQT AB and Canada Pension Plan Investment Board — hired banks to explore a sale or listing of the business in February. Either of the transactions could value Nord Anglia at up to USD 15 bn.

#2- Aircraft leasing company Dubai Aerospace Enterprise (DAE) is reportedly receiving only half the number of aircraft previously agreed upon from Boeing, Reuters reports. So far, DAE has received only one aircraft from Boeing in 1Q 2024, according to DAE CEO Firoz Tarapore. “The only thing we can reliably expect from Boeing these days is a delivery delay notification as opposed to aircraft so we hope that they get their act together,” Tarapore said.

#3- Hospitality investment management company Sunset Hospitality is looking to raise USD 300 mn for expansion plans, Bloomberg reports citing people familiar with the matter. The company is reportedly collaborating with Jefferies Financial Group to attract investors and is considering raising funds from a single investor but remains “open to all options.”

MORNING MUST READ-

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THE BIG STORY ABROAD-

#1- Are Saudi and the United States closing in on AI and defense pacts separate from an agreement to recognize Israel? That’s what Bloomberg and the Guardian contend this morning, saying the two are talking now about agreements that would bind the US to protect Riyadh, see them cooperate on AI and other advanced technology, and help Saudi develop a nuclear power industry. EnterpriseAM Saudi has more. The agreement could go ahead without Saudi recognition of Israel, its backers say.

MEANWHILE- Hamas is “negative” on Israel’s latest proposal as part of Cairo-brokered ceasefire talks, but said its negotiators would continue to engage in the process.

AND- US Democrats are putting pressure on Joe Biden to push Israel not to assault Rafah, where more than 1 mn people are taking refuse from Israeli forces, Reuters reports.

#2- The US Federal Reserve said it is “more likely to keep interest rates at their current level for longer than to raise them again,” the Wall Street Journal reports after the Fed wrapped last night its two-day monetary policy meeting. At issue with the higher-for-longer stance: “It is likely to take longer for us to gain confidence that we are on a sustainable path down to 2% inflation,” the Financial Times reports Fed chair Jay Powell as having said after the meeting. “I don’t know how long it will take.”

#3- The global press remains obsessed with pro-Palestinian protests in the United States, where hundreds were arrested yesterday as many university administrators called in police. Reuters | Wall Street Journal | BBC | Politico

OUR NEXT CONFERENCE IN CAIRO-

Foreign investors are falling in love with Egypt again… Foreign investors we speak with (debt, equity, and strategic alike) have growing appetite for Egypt. They’re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that’s taking shape after the float of the EGP, and its competitive advantages are clear to many of them: It’s a massive consumer opportunity and a regional export hub of tomorrow.

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: Spark conversations about a future that sees Saudi Arabia, Egypt, and the the UAE at the heart of a more vital Middle East economy — and provide an early, actionable roadmap for those who are “long Egypt.”

We’ll be talking with you about the agenda over the coming couple of weeks. It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow’s opportunities — and who aren’t afraid to answer some tough questions.

*** Interested in attending? Tap or click here to let us know. Seating is limited.

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TAP OR CLICK HERE TO READ WITH ALL OF THE LINKS to our background and external sources.

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CIRCLE YOUR CALENDAR-

The Arab Tourism Media Awards will take place next week, from 6-9 May, at the Dubai International Convention and Exhibition Centre, state news agency Wam reports. The Arab Union of Tourist Media will present awards to 34 Arab personalities, tourism institutions, and cities that have contributed to the tourism industry in the Arab region.

The Make it in the Emirates (MIITE) Start-up Pitch Competition application deadline has been extended until 5 May for local and international tech companies in AI, 3D printing, and decarbonisation in the industrial sector, Wam reports. The competition aims to encourage technological innovation in the industrial sector, covering areas such as aviation, healthcare, automotive, electronics, energy, customized manufacturing, decarbonisation, renewable energy, artificial intelligence and digitisation, and carbon capture and storage.

The Arabian Travel Market is taking place from 6-9 May at DWTC Dubai under the theme Transforming Travel Through Entrepreneurship. The event will focus on issues relating to entrepreneurial strategies.

TheAnnual Investment Meeting (AIM) Congress is scheduled to be held on 7-9 May at the Abu Dhabi National Exhibition Centre. Gathering senior government officials and industry experts, the summit will focus on exploring means of strengthening the economy under the theme Resilient, Sustainable Economic Growth – Creating a Healthy and Prospective Investment through FDI and FPI.

The Middle East Petroleum and Gas Conference is set to take place from 20-22 May in Dubai, hosted by the Emirates National Oil Company and under the organization of S&P Global Commodity Insights. The theme of the conference is “Evolving Core Energy Markets within a Sustainable Landscape.”

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

Spinneys’ IPO subscription attracts 71 bn in orders

Supermarket chain Spinneys Dubai raised AED 1.38 bn from its IPO after pricing it at the top of the initial price range, with over AED 71 bn in orders from local, regional and international investors at the close of the offering period, according to a statement (pdf). The order book was 64x oversubscribed — without counting cornerstone investors.

Final share price: The Albwardy family-owned company set its final IPO price at the top of its initial price range at AED 1.53 per share. This gives the company a market cap of AED 5.51 bn.

The breakdown: The institutional portion of the offering was 68x oversubscribed, while the retail portion closed on Monday at a 20x oversubscription rate, according to the statement. The retail giant boosted the size of the retail portion on high demand to 7% of the offering, with institutional investors getting 93%. It also attracted Emirates International Investment Company and Franklin Templeton as cornerstone investors, with the two investors committing to purchase AED 275 mn worth of shares in the offering.

Shares will start trading on the DFM on Thursday, 9 May, under the ticker SPINNEYS, the statement reads.

Refresher: Al Seer Group is selling 900 mn of its shares — equivalent to a 25% stake — in the company on the DFM. The IPO will be among the first by a family-owned business in the UAE, and comes ahead of plans to expand into Saudi Arabia in 1H 2024.

Advisors: Our friends at HSBC Middle East are joint global coordinators alongside Emirates NBD Capital and Merrill Lynch. Our friends at EFG Hermes are joint bookrunners, while Rothschild Middle East is independent financial advisor. Emirates NBD Capital is also acting as listing advisor, while Emirates NBD Bank is lead receiving bank. Other receiving banks include our friends at FAB as well as MBank and Commercial Bank of Dubai.

Bloomberg and Reuters also had the story.

Presight is acquiring a majority stake in Adnoc-G42 AI venture AIQ

Presight snags 51% of AIQ: ADX-listed data analytics firm Presight AI Holding is acquiring a 51% majority stake in AIQ, Adnoc’s AI joint venture with G42, a press release (pdf) reads. Presight is acquiring the entirety of G42’s 40% stake in AIQ, in addition to 11% of Adnoc’s 60% stake in the JV. The transaction values AIQ at USD 1.4 bn.

What the acquisition will do: The acquisition aims at combining AI energy solutions with extensive big data analytics, to help Advance Adnocs’ plans to become the “energy industry’s leading AI company,” Industry Minister and Adnoc CEO Sultan Ahmed Al Jaber, who will assume the role of chairman at AIQ, said.

AIQ’s AI solutions are currently being commercialized and include safety detecting applications, failure detection systems, and emissions monitoring. Adnoc is currently using several of AIQ’s applications, including remotely-operated equipment and analysis and modeling of borehole data to assist with drilling activities.

Edge acquires 51% stake in Condor, strengthening position in non-lethal technologies market

Technology and defense group Edge acquired a 51% stake in Brazil-based Condor, a major global player in non-lethal technologies (NLT), Edge said in a statement. Condor boasts a collection of over 160 NLT products. The move will bolster Edge’s position in defense, public, and homeland security sectors and grow both companies’ market presence across NLT sectors and allow them to tap into markets such as the US.

What they said: “Our world is currently experiencing a period of not only increased civil unrest, immigration crisis, and street protests, but also major concerns about the levels of force used in combat situations in populated environments, asymmetric warfare, and post-war damage control, where non-lethal technologies play a relevant role,” Hamad Al Marar, Edge Group CEO said.

About Condor: Condor has a presence in more than 85 countries and is the top manufacturer of tear gas and related items for various defense and security uses worldwide. The firm also produces non-lethal products such as rubber bullets, smoke grenades, pyrotechnics, tactical kits, chemical sprays, drones, electrical incapacitating devices, and facial recognition body-worn cameras.

DFM launches private capital market platform Arena

The Dubai Financial Market is venturing into private capital markets with the launch of Arena, a platform that enables family businesses and SMEs to access a range of asset classes, including debt and equity, the exchange said in a press release (pdf). The technology used in the platform has been provided by Nasdaq, Bloomberg reports. The platform is tailored to help small businesses raise capital ahead of — or instead of — an IPO.

More on the platform: The minimum capital-raising requirement is AED 35 mn, according to the statement. Private companies raising capital via Arena can also limit who can access their shares to institutional investors, employees-only, or family and founding members, according to the statement.

Venture capital firms will also be able to sell private market shares on the platform, “thus establishing a previously unavailable liquidity pool,” the statement says. Investors will also have access to the exchange’s private market investments where they can directly invest in early-stage growth prospects, the statement reads.

What they said: “Arena is designed to facilitate seamless processes, including due diligence, book building, brokered trades, and settlement, fundamentally reshaping the landscape of investment accessibility and efficiency,” DFM CEO Hamed Ali said.

REMEMBER- The DFM drew in AED 35 bn from eight new listings in 2023, CEO Hamed Ali tells CNBC Arabia. The market’s focus is on providing incentives to the private sector, especially in sectors like education and healthcare, to make it easier for these companies to list on the market, he added. Ali also mentioned continuous efforts to assist startups before their IPOs.

Background: 2023 saw the UAE’s biggest IPO to date in March, when Adnoc Gas raised AED 9.1 bn in its market debut. Big IPOs during the year also include healthcare firm PureHealth, which raised AED 3.62 bn, and state-owned Dubai Taxi, which raised AED 1.16 bn.

CBUAE leaves interest rates unchanged

The Central Bank of the UAE (CBUAE) has left interest rates unchanged following the US Federal Reserve’s decision yesterday, maintaining its overnight deposit rate at 5.40% and the overnight lending rate at 5.90%, state news agency Wam reports.

REMEMBER- The UAE’s overnight deposit rate, or the base rate on overnight deposit facilities, is anchored to the US Federal Reserve’s interest rates as the AED is pegged to the USD.

Analysts are expecting three rate cuts this year, but Fed Chair Jerome Powell statement (pdf) accompanying yesterday’s decision leaves the timing of a rate cut unclear.

Market reax: The decision left US stock exchanges mixed, with the S&P 500 ending the day lower 0.34%, after a brief rally that followed statements from Powell that pushed back against the possibility of a rate hike as the Fed’s next move. The Nasdaq also fell 0.33%.

Masdar partners with Bahrain’s Bapco for 2 GW wind projects

Masdar + Bapco partner on wind projects: Renewables giant Masdar and Bahrain’s state-owned energy investment firm Bapco Energies signed an agreement to explore developing up to 2 GW of wind projects in Bahrain, according to a statement. The agreement focuses on near-shore and offshore wind farms for Masdar’s inaugural project in Bahrain.

The move marks Masdar’s first entrance into Bahrain’s wind sector, and will stand as the region’s first offshore wind facility once completed. No timeline or financial details were disclosed.

Not Masdar’s first overseas wind project under development in the region: Masdar, Hassan Allam Utilities, and Infinity Power are set to start construction on their 10 GW wind farm in Egypt in 1Q 2025. Once completed, the plant will be the country’s largest wind energy project to date. Masdar was also looking to acquire a stake in Turkey’s top wind power producer Fiba Yenilenebilir Enerji in September but is currently stalled over a price dispute.

The firm’s international wind portfolio is on the rise too: As part of its plans to expand its global presence, Masdar has reached financial close on EUR 488 mn in funding to secure its 49% acquisition of the 476 MW Baltic Eagle wind farm last month. Last week, the UK granted Masdar, Equinor, and China Resources Power development consent for the Dudgeon Extension, an expansion of the existing 402 MW Dudgeon offshore wind project. Masdar owns 35% of the wind farm. It also connect edits 500 MW Zarafshan wind farm to Uzbekistan’s electricity grid in January.

IN OTHER ENERGY NEWS-

Amea Power inks 20-year power purchase agreement in South Africa: Renewables company Amea Power signed a 20-year power purchase agreement with South African state power company Eskom for the 120 MW Doornhoek solar energy plant, according to a statement. The USD 120 mn solar plant will generate over 325 GWh of clean energy, offsetting 290k tons of CO2 emissions annually, and powering 25k homes.

The details: Amea holds the majority of the project’s shares, on which it partnered with Ziyanda Energy and Dzimuzwo Energy, the statement notes. The project will be financed through debt funding from Standard Bank South Africa and equity funding from the Industrial Development Corporation.

It’s Amea’s first project in the country: Amea Power was awarded the 120 MW project in 2022 with construction set to begin mid-2023. The company had secured sites for building more renewable energy projects with a total capacity of 1 GW in South Africa.

Shuaa Capital settles AED 500 mn debt

Shuaa Capital fully settled AED 500 mn (USD 136 mn) in margin facilities with multiple UAE banks, a press release (pdf) reads. These facilities are linked to a fund based in Abu Dhabi Global Market (ADGM) and overseen by a Shuaa subsidiary under FSRA regulation, according to the statement.

Shuaa is undergoing major restructuring after substantial losses in 2023: The investment bank reached an agreement with bondholders in April to stretch payment terms for approximately USD 150 mn worth of bonds after the bank’s losses deepened five-fold to AED 866 mn in 2023. The company has also placed a new management team as part of its capital optimization plan.

REMEMBER-Shuaa Capital appointed Badr Al Olama as chairman of its board of directors. Olama, who formerly served as an executive at Mubadala, was re-elected as an independent board member at Shuaa at the end of April, after former chairman Fadhel Al Ali stepped down from the position. Nabil Ramadhan was appointed as vice chairman and Ahmed Alahmadi was appointed as the company’s managing director, while Badr Al Olama was tapped as chairman.

Swvl’s bottom line climbed to USD 3.1 mn in 2023

Dubai-based mass transit app Swvl has turned profitable in 2023, recording a net income of USD 3.1 mn, bouncing back from the USD 123.6 mn in net loss in 2022, the Nasdaq-listed company said in its earnings release (pdf). Revenues fell 48% y-o-y to USD 22.8 mn, driven by a 54% y-o-y drop in B2C operations as the company shifted its focus on more profitable segments. B2B operations contributed USD 16.64 mn, falling 56% y-o-y from 2022.

Swvl attributed its turnaround to focusing on “financial stability and operational efficiency, and the effective implementation of profitability strategies during the fiscal year.”

Egypt’s FX challenges are to blame for the revenue drop: The Cairo-born company attributed the modest B2B revenue primarily to “the change in EGP to USD rates, given that the Egyptian market during FY2023 contributed to approximately 90% of the total group revenues, and the EGP depreciated in value by 25% y-o-y,” according to the company’s financial statements. Swvl also said it had terminated contracts that failed to meet its minimum income requirements, resulting in an overall lower sales value.

Swvl slashed its cashflow deficit: The company’s negative cashflow fell to USD 9.1 mn in 2023, down from USD 117 mn in 2022. Swvl was able to shrink the deficit by funding its operations through improving “working capital cycles, and most recently from the disposition of certain assets while in 2022 the financing was dependent on equity financing,” Swvl said in its financial statements.

What they said: “As we advance, our commitment to innovation will be marked by the launch of a wide range of products slated for the upcoming year and for our new potential markets. Additionally, in the meantime, we are expanding our strategic partnerships into more GCC countries. Our focus today remains towards improving profitability while resuming our high paced growth,” Swvl CEO Mostafa Kandil said.

The company plans to grow its SaaS operations: “We intend to expand our Swvl Business offerings with SaaS in 2024 and 2025. Our SaaS offerings will be targeted at corporate customers (as well as schools and municipalities) that operate their own vehicle fleets, with specific services tailored to the needs of each customer,” the company said.

Background- Swvl was hit with two delisting warnings from Nasdaq last year after the market value of its listed securities dipped below the benchmark USD 50 mn, with its share price falling below the USD 1.00 mark for several months — collapsed by more than 98% after its IPO in April 2022. This was mainly due to market volatility, as well as rising expenses and costs associated with the listing. The company exited several markets by selling off a number of its subsidiaries and laying off 50% of its global workforce as part of its portfolio optimization strategy. Its shares are now up 615% YTD, ending yesterday at USD 11.45.

FAB, Union Properties report bottom line growth in 1Q 2024, while DAE sees bottom line dip

Earnings season continues: Yesterday saw First Abu Dhabi Bank, Union Properties, and Dubai Aerospace Enterprise report their results.

FAB-

FAB reported a bottom line after tax of AED 4.15 bn in 1Q 2024, up 6% y-o-y and 4% from the previous quarter, according to the bank’s financials (pdf). The UAE’s largest lender attributes the net income growth to “well-managed expenses and robust asset quality,” with total assets crossing the AED 1.2 tn mark for the first time.

Revenues rose 18% y-o-y to AED 7.97 bn during the quarter, with net interest income growing 11% y-o-y to AED 4.85 bn on the back of “strong business volumes across sectors, products, and geographies.” Non-interest income increased 33% y-o-y to AED 3.12 bn, and made up 39% of total revenue.

What they said: “The strong revenue performance was driven by balance sheet growth, higher [net interest margins] and robust non-funded income,” Chief Financial Officer Lars Kramer said. “The strong revenue growth also enabled us to largely offset the impact of the UAE corporate tax and to maintain robust provision coverage levels particularly in the context of a global environment marked by continued uncertainties.”

UNION PROPERTIES-

Union Properties’ net income rose to AED 837 mn in 2023 from AED 30 mn in 2022, according to an earnings release, marking a 2690% increase, according to Enterprise calculations. Revenue from customer contracts rose 21.2% y-o-y to AED 508 mn during the year.

What they said: “This drives us ahead with our expansion plans, prioritizing the diversification of our business portfolio,” Managing Director Amer Khansaheb said.

ICYMI- The Motor City developer settled its debt in February with Dubailand and Emirates NBD, securing a no-objection certificate from Dubailand to repurpose Motor City land for new projects and reaching a debt settlement of AED 850 mn with Emirates NBD. This move comes as part of Union Properties’ efforts to revitalize its projects and manage its debt following the 2009 property market correction in Dubai.

DUBAI AEROSPACE ENTERPRISE-

Dubai Aerospace Enterprise’s (DAE) net income dipped 5% y-o-y to USD 69.7 mn in 1Q 2024, according to the company’s earnings release (pdf). The company’s revenues increased 9% y-o-y to USD 343.6 mn during the quarter.

A revival of the archipelago luxury community?

It’s relatively quiet for UAE in the news, save for one Bloomberg feature on the Sajwani siblings, the heirs of the Damac business, and their efforts to revive a more than a decade-old plan to develop an artificial archipelago — “The World” island — into luxury beachfront real estate through their own venture, Amali Properties. Plans to develop the island had stalled following the property market correction in Dubai in 2008.

Major Developers to work on AED 1 bn luxury project in Ras Al Khamah’s Al Marjan Island

REAL ESTATE-

#1- World’s highest rooftop beach lands in Ras Al Khaimah: Dubai-based developer Major Developers is working on an AED 1 bn luxury project in Ras Al Khamah’s Al Marjan Island, dubbed Manta Bay, {Khaleej Times} reports, citing the developer. The development includes the world’s first rooftop beach, set to be the highest globally with sand and seawater, and comes as the developer looks to capitalize on the interest among tourists in the emirate. Construction has kicked off at a cost of AED 400 mn, with handover slated for the end of 2026.

Dubai, next? The company plans to launch another project in Dubai, seeking to monetize on the heightened demand for residential properties in the emirate, Major Developers CEO Andrei Charapenak told Khaleej Times. It aims to set one world record with every new project launch in the UAE, Charapenak added.

#2- Dubai will see its first active living residential community near Global Village,courtesy of a new partnership between Aldar Properties and Dubai Holding, Aldar said in a statement. The project, dubbed Ahtlon, features a dynamic program of activities curated by wellness experts and interactive green spaces, including four parks and tracks and trails for jogging and cycling. It will offer some 1.5k units, with sales for the first phase launching next Tuesday, 7 May, at prices starting from AED 2.8 mn.

LOGISTICS-

DP World inked an agreement with Malaysia’s Suria Capital Holdings subsidiary SabahPorts to jointly manage Sapangar Bay Container Port, according to a press release.

The agreement will see DP World support efforts to boost the port’s container handling capacity from 500k TEUs to 1.25 mn TEUs by 2025, as well as to optimize workflows and digitization. The pair will also invest in improvement to the port’s cold chain storage and transport capabilities to increase the export of Sabah’s agricultural products to international markets, the statement notes.

Background: The latest partnership builds upon a long-term collaboration agreement inked by DP World and Sabah Ports in 2019, where both parties agreed to co-develop solutions to boost the port’s competitiveness, the statement added. In the long term, the partnership looks to boost land and sea connectivity in Sabah, curb transit times and costs, and improve standards across Sabah’s supply chains.

MANUFACTURING-

EDB, Sheraa, and SCCI partner for manufacturing center of excellence: Emirates Development Bank, Sharjah Entrepreneurship Center, and the Sharjah Chamber of Commerce and Industry yesterday launched a Center of Excellence for advanced manufacturing and consumer packaged goods, with the goal of supporting startups in the manufacturing industry in the UAE, according to a statement (pdf).

INVESTMENT-

#1-Investcorp Capital is set to back its newly launched USD 1 bn investment fund, Investcorp Golden Horizon, according to an ADX filing (pdf). The backing amount was undisclosed.

Background: Mubadala-backed Bahraini asset manager Investcorp launched a USD 1 bn investment fund, Investcorp Golden Horizon, geared towards investing in high-growth companies in consumer, healthcare, logistics, and business services across Saudi Arabia, the wider GCC region, and China, last month. China’s sovereign wealth fund, the China Investment Corporation, alongside private investors from the GCC, will anchor the fund.

#2- US-based investment management firm Barings has opened a Dubai office to cater to increasing demand and improve services for its clients in the region, according to a company statement. Waleed Zamel, who has prior experience at Amundi, ADIA, and Standard Chartered Bank, was appointed to lead distribution for the new Dubai office.

ENERGY-

Gecko Robotics and Al Masaood Energy inked an AED 110 mn multi-year contract with Adnoc Gas, according to a press release. The partnership will see Adnoc Gas implementing Gecko’s robots and AI data platform at their sites to enable predictive maintenance, boosting efficiency and cutting downtime and CO2 emissions. Gecko’s technology enables precise repairs and preventive maintenance in crucial infrastructure, resulting in a 99.6% increase in coverage of assets and an over 93% increase in efficiency improvement compared to manual methods.

TRANSPORT-

Alfahim Group will set up a facility to manufacture and assemble electric commercial vehicles (ECVs), particularly buses and trucks, in Abu Dhabi, after signing an agreement with the Abu Dhabi Department of Economic Development, a press release reads. Alfahim Group will also develop “energy storage and charging solutions for a variety of industries and applications,” according to the statement. No details were provided on the investment value or timeline of the facility.

REGULATION WATCH-

Sharjah’s executive council is introducing new regulations for homecare services in the emirate, with plans to set up a specialized committee to establish rules, approve cases that require homecare, and oversee the service in the emirate, Wam reports.

FINTECH-

UAE-based digital infrastructure startup Fils has inked a partnership with Pakistani digital payments provider TPS to offer carbon credits to TPS’ portfolio of clients, including banks, fintechs, and payment processors, through Fils’ payments platform, a press release reads. By integrating blockchain technology in its platform, Fils will track clients’ emissions and carbon credits to prevent credit duplication.

MEDIA-

Al Habtoor Group will launch a TV channel in Beirut, Chairman Khalaf Ahmad Al Habtoor said in a statement on X. The channel will create 300 jobs initially and aims to boost Lebanon’s economy. Lebanese Prime Minister Najib Mikati pledged support for the project, which includes a 100k-square-meter studio city. The new channel will focus on “highlighting successes and good news around the world,” Al Habtoor said.

Saudi GDP shrinks for a third consecutive quarter on the back of lower oil activity

Saudi GDP fell 1.8% y-o-y in the first quarter of the year, marking the third consecutive quarter that the Kingdom’s economy has been in contraction, according to preliminary figures from state statistics agency Gastat (pdf). The downturn was again due to a 10.6% decline in oil activity, which accounts for c. 40% of GDP (and about 75% of government revenues).

Non-oil activity was up 2.8% y-o-y, with government activity also growing at a 2% clip.

REMEMBER- The Kingdom cut oil production by 500k barrels per day in April 2023 in a bid to arrest falling oil prices. That figure became a 1 mn bpd voluntary cut by June. Though originally seen ending in December 2023, the government extended the 1 mn bpd cut through 1Q 2024 and now seems poised to continue it through June 2024, maintaining production at 9 mn bpd.

On a quarterly basis: GDP climbed 1.3% compared to the previous quarter, driven primarily by a 2.4% increase in oil activity, as well as 0.5% growth in non-oil activities. Government activity slowed by 1% q-o-q.

The Kingdom’s Finance Ministry is targeting GDP growth of 4.4% for the current fiscal year, Finance Minister Mohamed Al Jadaan said in December. The IMF revised its 2024 growth forecast for the Kingdom to 2.6% last month, pointing to the combined effects of lower oil prices and production cuts.

Activity could pick up later this year: London-based research outfit Capital Economics sees the economy recovering throughout the year, saying in a research note seen by Mubasher that the preliminary estimate of the country’s GDP this quarter is a sign that it is emerging from a recession.

MARKETS THIS MORNING-

Asian shares are mixed this morning, with the Nikkei and Kospi in the red while Hong Kong’s Hang Seng is flat and the ASX 200 is up 0.3%. The Shanghai Stock Exchange remains closed as China observes an extended labor day holiday.

Traders seem to be happy with Jay Powell’s comments that interest rates would stay put for a while longer: Dow, Nasdaq, and S&P futures are all up 0.4% or more in overnight trading.

European stocks look set for a softer open, with futures for most of the continent’s major benchmarks trending lower at dispatch time this morning.

ADX	9,032	-0.4% (YTD: -5.7%)
DFM	4,133	-0.5% (YTD: +1.8%)
Nasdaq Dubai UAE20	3,524	-1.6% (YTD: -8.3%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.0% o/n	5.5% 1 yr
TASI	12,345	-0.4% (YTD: +3.16%)
EGX30	25,270	+3.4% (YTD: +1.5%)
S&P 500	5,023	-0.3% (YTD: +5.3%)
FTSE 100	8,121	-0.3% (YTD: 6.5%)
Euro Stoxx 50	4,921	-1.2% (YTD: +8.8%)
Brent crude	83.63	-3.1%
Natural gas (Nymex)	1.93	-3.0%
Gold	2,311.00	+0.4%
BTC	USD 57,436.50	-4.2% (YTD: 36.0%)

THE CLOSING BELL-

The DFM fell 0.5% yesterday on turnover of AED 307.6 mn. The index is up 1.8% YTD.

In the green: Mashreq bank (+4.5%), Islamic Arab Ins. Company (+4.5%) and Watania International Holding (+2.9%).

In the red: Emaar Properties (-6.1%), Orascom Construction (-5.3%) and National General Ins. Company (-5.2%).

Over on the ADX, the index fell 0.4% on turnover of AED 996.5 mn. Meanwhile, Nasdaq Dubai dropped 1.6%.

UAE Minister and World Bank VP discuss regional cooperation

Partnerships with World Bank Group on Al Hussain’s agenda:Minister of State for Financial Affairs Mohamed Hadi Al Hussaini met with Ousmane Dione, World Bank Group’s Vice President for the Middle East and North Africa, in Dubai to discuss projects and partnerships with the international lender to serve local and regional priorities, Wam reports. Dione’s visit marks his first to the UAE since assuming his role.

OTHER DIPLOMACY NEWS-

State minister Ahmed Al Sayegh and Assistant to the President of Azerbaijan Hikmet Hajiyev sat down to discuss boosting economic and tradecooperation. (Statement)
State minister for international cooperation Reem Al Hashemi also led a delegation toIndia to strengthen economic ties as well as boost cooperation on trade, development, culture, science and tech, and aviation. (Statement)

Women's representation on UAE listed company boards reaches 11%, outpacing GCC's 5% + Dubai, Abu Dhabi among best five cities for work

We have two positive indicators for working and doing business in the UAE this morning, including efforts to boost gender diversity on boards and a survey ranking Dubai and Abu Dhabi among the best cities for work.

#1- Women occupy nearly 11% of seats on listed company boards in the UAE, beating the 5.3% average across the GCC, according to the GCC Board Gender Index Report 2024 (pdf) by Heriot-Watt University and Aurora50. In January of this year, women held 133 seats out of 1,231 board seats in 168 companies listed on the ADX and DFM, making up 10.8% of the total. Across the GCC’s 752 publicly listed companies, women held 5.2% of the 5,591 board seats in the same time period.

#2- Dubai and Abu Dhabi were ranked among the top five places to work in 2024, according to the latest global talent survey by Stepstone Group’s Totaljobs and Boston Consulting Group. Dubai maintained its position at third place compared to 2019 data, up three slots from 2018, while Abu Dhabi scored fourth place, up one position from 2019.

About GTS: The survey tracks insights from 150k workers across 188 countries, exploring where people will move for work and why.

The UK is popular among expats: London ranked first globally as the top city for work, with 71% of respondents citing the quality of job windows as a reason for wanting to move to the UK. Quality of life (58%) and safety, stability and security (44%) were also recorded as reasons for moving.

CALENDAR

APRIL

26 March-21 July (Tuesday-Sunday): ‘From Kalila wa Dimna to La Fontaine: Traveling through Fables’ exhibition, Louvre Abu Dhabi.

21 April-7 May (Sunday- Tuesday): The ICC Women’s T20 World Cup Global Qualifier 2024.

29 April- 5 May (Friday-Friday): The Abu Dhabi International Book Fair, Abu Dhabi National Exhibition Centre (ADNEC).

MAY

1-2 May (Wednesday-Thursday): Capital Markets Summit, Madinat Jumeirah, Dubai

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

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

6-9 May (Monday-Thursday): The Arabian Travel Market, Dubai World Trade Centre, Dubai.

6-9 May (Monday-Thursday): The Arab Tourism Media Awards, Dubai International Convention and Exhibition Centre.

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.

9 May (Thursday): Spinneys shares begin trading.

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.

15 May (Wednesday): UAE and Indian officials are set to meet for the first time on the India-Middle East-Europe Economic Corridor.

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

19 May (Sunday): InvestopiaEurope, Milan.

19 May (Sunday): RTA’s Deadline for bids to design and build Dubai Metro’s Blue Line.

20-22 May (Monday-Wednesday): Middle East Petroleum & Gas Conference, Dubai.

21-23 May (Tuesday-Thursday):International Exhibition for National Security & Resilience, ADNEC Centre Abu Dhabi.

24-25 May (Friday-Saturday): Baby Expo, Dubai World Trade Centre.

27-29 May (Monday-Wednesday): Arab Media Forum, Dubai.

30 May (Thursday):Abu Dhabi Family Office Summit, Saadiyat Rotana Resort, 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.

Signposted to happen sometime in 1H 2024:

Spinneys inaugurates its first store in KSA

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.

27-28 November (Wednesday-Thursday): RAK Energy Summit, Al Hamra International Exhibition and Conference Centre, Ras Al Khaimah.

DECEMBER

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

5-8 December (Thursday-Sunday): Formula 1 Etihad Airways Abu Dhabi Grand Prix, Yas Marina Circuit.

9-10 December (Saturday-Sunday): The Bitcoin Mena Conference, Adnec Centre Abu Dhabi.

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

Signposted to happen sometime before the end of the year:

Spinneys inaugurates three more stores in KSA

Signposted to happen sometime in 2028:

Abu Dhabi to host the 47th Chess Olympiad

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