Adnoc Drilling to sell 5.5% stake

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Pakistani PM lands in the UAE today + Alpha Dhabi terminates talks for Metito acquisition

Good morning, wonderful people. The newsflow is only picking up as we near the end of the week, with tons of news from Adnoc and G42, as well as updates on several M&As we’re following.

BUT FIRST- Emirates Islamic’s sustainability sukuk was 2.8x oversubscribed: Emirates Islamic raised USD 750 mn from its debut five-year senior sustainability-linked sukuk, with over USD 2.1 bn in orders, Wam reports. The order book was 2.8x oversubscribed, allowing the lender to tighten the net income rate to a little over 5.4% annually, at a spread of 100 basis points (bps) over US treasuries. The sukuk is part of a broader USD 2.5 bn certificate issuance program.

ICYMI- The lender was on track to raise USD 750 from its debut sustainability-linked sukuk earlier this week, after the issuance attracted some USD 1.9 bn in orders. The lender narrowed the price guidance for the five-year sustainability sukuk to 100 bps from an initial price guidance of 130 bps over US Treasuries.

AND- The Central Bank of the UAE’s (CBUAE) AED-denominated T-Sukuk auction was 8.9x oversubscribed, pooling AED 9.81 bn in bids, Wam reports, citing the Finance Ministry. The three- and five-year tranches saw strong demand, with the T-Sukuk sold at 5 bps over US treasuries.

Background: The CBUAE launches regular AED-denominated Shariah-compliant sukuk auctions in a bid to strengthen the local currency’s yield curve in capital markets. More information on the program is available here.

HAPPENING TODAY-

#1- Pakistani Prime Minister Shehbaz Sharif will be in the UAE today on his first visit since his election, the Pakistani embassy in the UAE said on X. A delegation of key cabinet ministers will join him as he meets UAE President Mohamed bin Zayed Al Nahyan, with the two heads of state expected to discuss cooperation on trade and investment. The PM will also likely hold meetings with other Emirati “dignitaries, businesspersons, and heads of financial institutions.”

#2-CABSAT is on its second day at the Dubai World Trade Centre, before wrapping tomorrow. The three-day event will welcome over 18k industry professionals and media markets to explore business prospects across content, broadcast, satellite, media, and entertainment.

HAPPENING NEXT WEEK-

#1- President Sheikh Mohamed bin Zayed Al Nahyan will head to South Korea on a two-day visit next Tuesday, 28 May, at the invitation of South Korean President Yoon Suk Yeol, Wam reports. The state leaders will discuss ramping up cooperation in trade, investment, energy, and technology, in addition to regional and international developments.

#2- CBUAE will hold AED 15 bn m-bill auction: The Central Bank of the UAE (CBUAE) will auction four m-bills worth up to AED 15 bn Monday, 27 May, according to a statement (pdf). Three of the m-bills are tap issuances, with the four having tenors ranging from 28 to 280 days.

Decoding central bank speak: M-bills are short-term securities issued in AED by the CBUAE at no interest. The bonds typically have maturity dates of one to 12 months and are not retrievable through any other listing. A tap issuance allows the CBUAE to more finely control money supply by allowing it the flexibility to continue selling bills past the initial auction date.

WATCH THIS SPACE-

#1- Growing domestic consumption and the increased use of modern technologies will see the UAE continue to grow this year, Chief Investment Officer for the Global Family and Institutional Wealth at UBS Maximilian Kunkel said on the sidelines of a roundtable, according to Wam. The roundtable came ahead of the launch of the UBS Global Family Office report (pdf).

The UAE is reaping the benefits of expanding support for startups, Kunkel noted, highlighting the growth of startups in fields such as technology and innovation, which has drawn interest from international investors.

#2- Alpha Dhabi u-turns on Metito acquisition: Investment holding company Alpha Dhabi has called off its plan to acquire a majority stake in Dubai-based utility Metito Holdings, after terminating talks without citing the reason, the firm said in a disclosure (pdf).

Background: Alpha Dhabi Holding had planned to acquire a majority stake in water management solutions provider Metito in September 2023. The transaction —which was pending regulatory approvals at the time — aimed to help Metito finance its plans to expand its smart water solutions across the MENA region.

#3- UAE vows to prioritize safety in AI development: State AI group G42 and Abu Dhabi’s Technology Innovation Institute pledged to ensure the secure advancement of their AI models, as part of a landmark international agreement on AI safety signed during the Seoul AI Safety Summit.

AI developers have committed to releasing safety frameworks detailing how they will tackle challenges in their cutting-edge models, including preventing misuse, CNBC reports. These frameworks will establish red lines for risks like cyberattacks and bioweapon threats, with plans for a “kill switch” if mitigation fails.

#4- The Zayed National Museum Abu Dhabi and Guggenheim Abu Dhabi are slated for completion by next year, the National writes. Abu Dhabi’s tourism department has announced that construction of all key “assets” in the Saadiyat Cultural District is nearly finished, which includes the Natural History Museum Abu Dhabi and team Lab Phenomena Abu Dhabi.

#5- Gov’t to introduce incentives for green industrial practices? The Federal National Council (FNC) has proposed establishing new regulatory packages, including incentives and exemptions for green economic and industrial activities, with an eye to supporting economic growth and sustainability, Wam reports. The recommendations also include a proposal to improve the legislative framework to support the industrial sector, which contributed AED 197 bn to the economy in 2023.

What’s next? The FNC’s recommendations will be reviewed by the Financial, Economic, and Industrial Affairs Committee ahead of being resubmitted for approval and forwarded to the government.

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THE BIG STORY ABROAD-

One story is on every front page this morning: AI darling-of-the-moment Nvidia.

The chipmaker’s 1Q 2024 earnings showed that sales had more than tripled to USD 20 bn, topping analyst estimates and prompting many of them to suggest that the AI boom has legs. Net income was up almost 7x — sending its stock to a record USD 1,004 in after-hours trading.

Why does it matter? “Nvidia’s results have become a way for investors to gauge the strength of the AI boom that has transfixed markets in recent months,” CNBC writes.

MEANWHILE- Saudi Arabia and the US could be “weeks away” from a wide-ranging set of accords that Washington hopes will pave the path for Riyadh to normalize relations with Israel. On the agenda are pacts on security and defense and nuclear power, Reuters reports, while EnterpriseAM Saudi also expects there to be an agreement on artificial intelligence and advanced technologies.

AND- Ireland, Norway, and Spain have said they will formally recognize the state of Palestine. The Irish Times has more.

ALSO- An early UK general election: A very wet UK Prime Minister Rishi Sunak called a general election for 4 July, ending months of speculation about when he would make the call. The elections are likely to mark a turning point in the UK government, with the Conservatives likely to lose to the opposition Labour Party — this would mark the end of a 14-year of Conservatives in power. (Reuters | The Guardian | AP)

WORTH READING THIS MORNING- Reuters is out with an investigative piece on how wealthynations are capitalizing on climate funding to developing nations, while the Wall Street Journal looks at the highest-paid CEOs in America last year.

CIRCLE YOUR CALENDAR-

The Make it in the Emirates Forum is set to take place from 27-28 May at the Abu Dhabi Energy Center. The forum, which is organized by the Industry and Advanced Technology Ministry, brings together local and international decision-makers, government officials, private companies, investors, and financing institutions to support industrial growth and investment.

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

Adnoc drilling to offer 5.5% stake to investors

A 5.5% stake in Adnoc Drilling is up for grabs: Abu Dhabi National Oil Company (Adnoc) is offering up a 5.5% stake (or 880 mn shares) in its drilling unit, Adnoc Drilling, in a secondary sale to institutional investors, the state-run oil giant said in a statement (pdf). The stake is valued at USD 989 mn, based on Adnoc Drilling’s closing share price yesterday of AED 4.13.

An eye on the MSCI + more liquidity: Adnoc is offloading the stake to “enhance liquidity and trading in Adnoc Drilling’s ordinary shares and diversify its shareholder base,” as well as help support the “Abu Dhabi equity capital market while creating sustainable value for shareholders across its listed portfolio,” the statement reads.The share free float is also expected to see Adnoc Drilling joining the MSCI Emerging Market Index at the next quarterly index review, Adnoc said in the statement.

Book-building underway: The book-building period will kick off “immediately” and will wrap today, with the final pricing to be determined upon the conclusion of the book-building process.

REMEMBER- Adnoc Drilling went public in October 2021, offering an 11% stake and raising USD 1.1 bn. Adnoc retained an 84% stake, while Baker Hughes held a 5% stake in the drilling arm.

Advisors: Our friends at EFG Hermes UAE, along with First Abu Dhabi Bank, Goldman Sachs International and JP Morgan Securities are joint global coordinators and joint bookrunners for the offering.

Adnoc acquires 10% of Mozambique LNG project

Adnoc to obtain Galp’s 10% stake in Mozambique LNG development: Adnoc signed off on acquiring Portuguese energy company Galp’s 10% stake in the Area 4 concession in Mozambique’s Rovuma basin, marking the oil giant’s debut in the African country, according to a press release. Galp secured a USD 650 mn payout from Adnoc, with an extra USD 500 mn contingent upon the approval of two planned development phases, Bloomberg reports.

The details: Adnoc obtained a stake in the operational Coral South LNG export project, which produces 3.5 mn tons annually. The planned Coral North expansion could match this output through a floating export vessel, while an onshore Rovuma project — which could see an investment decision by late 2025 — is expected to produce 18 mn tons of LNG per year. Overall, Adnoc is set to get a share of a potential 25 mn tons a year LNG capacity in Mozambique.

Adnoc is pushing to bolster its low-carbon LNG portfolio to meet its net zero targets and diversify away from oil. The oil giant has plans to ramp up LNG capacity to 15 mn tonnes per year by 2028, up from the current 6 mn tonnes.

This is the second major Adnoc transaction this week: The oil company acquired an 11.7% stake in the first phase of sustainable liquefied natural gas (LNG) producer NextDecade’s USD 18 bn Rio Grande LNG export facility in Texas earlier this week.

And more could come: The energy firm is also eyeing a takeover of German chemical company Covestro, though talks have recently stalled, and is looking to merge its two plastic units — Borealis and Borouge — but the transaction is also facing delays due to changes in management, elections in Austria, and sticking points over technicalities of the merger.

OTHER M&A NEWS-

Global Investment Holding offloads part of Eastern Company stake: Dubai-based Global Investment Holding (GIH) sold a 14.7% minority stake in Egypt-based cigarette manufacturer Eastern Company to Philip Morris International, Eastern Company Managing Director and CEO Hany Aman told Asharq Business following a press release from the company. This leaves GIH with a 15.3% stake in the company.

Background: GIH purchased a 30% stake in Eastern Company from the Holding Company for Chemical Industries (CIHC) for USD 625 mn in a transaction that valued Eastern at more than USD 2 bn back in September 2023. The transaction also saw GIH provide USD 150 mn to help Eastern purchase manufacturing inputs.

ADIA and CVC mull another bid for Hargreaves Lansdown, after the first was rejected

ADIA, CVC make a play for Hargreaves: A consortium comprising the Abu Dhabi Investment Authority (ADIA) and CVC Advisers are mulling another offer for British investment platform Hargreaves Lansdown after it rejected their earlier GBP 4.6 bn bid, Reuters reports. The company said the earlier bid “substantially undervalues Hargreaves Lansdown,” according to a statement picked up by Bloomberg. The platform has some GBP 150 mn in assets under management.

The details: Hargreaves’ board rejected a 985 pence per share bid from the consortium on April 26, according to a disclosure. The consortium said it was considering another bid for the company and has until 19 June to withdraw its initial bid or make another one, the Telegraph reported.

Market reax: Hargreaves’ share price closed up 4.95% yesterday at 979 pence following the news.

ALSO- Are CVC and ADIA also in talks to acquire DB Schenker’s logistics unit? A consortium led by CVC Capital Partners and Carlyle Group submitted a bid valuing the company at EUR 14 bn, and are in talks to team up with ADIA and Singapore wealth fund GIC for the acquisition, sources told Bloomberg.

There’s a queue: European logistics giants DSV, AP Moeller-Maersk A/S and MSC have also made offers, the people said, but the consortium is reportedly more “aggressive” in terms of pricing. Abu Dhabi sovereign wealth fund ADQ was also reportedly vying for a bid, as was Saudi shipping firm Bahri.

Microsoft and G42 invest USD 1 bn in Kenya geothermal data center

US tech giant Microsoft has joined forces with UAE AI outfit G42 to build a USD 1 bn geothermal data center in Kenya, according to a statement. The data center is part of a comprehensive suite of digital investments in Kenya to accelerate digitalization and promote cloud computing and AI services in East Africa.

The details: The facility will be located in Olkaria, a geothermal-rich area in Kenya which operates on renewable geothermal energy and water conservation technologies. G42 will offer access to Microsoft Azure through a new East Africa cloud region, expected to be up and running within two years of parties signing definitive agreements, Microsoft noted.

The letter of intent will be signed on Friday between Microsoft, G42, and Kenya’s Ministry of Information, Communication, and Digital Economy as part of Kenyan President William Ruto’s visit to the US.

Quality control and safety measures: The cloud region will operate as part of a “trusted data zone” based on global digital safety, privacy, and security standards, the tech-giant said. Both parties will also ensure the nation has sufficient resources and technical assurance before the hub is complete.

Kenya is a major player in the global geothermal ecosystem, ranking as the eighth largest geothermal power user in 2023, according to Reuters. With the current projects underway, Kenya is positioned to rank fourth on the global list of geothermal users and aims to produce over half of its electricity from geothermal sites, the newswire says, citing data from Global Energy Monitor shows.

G42 has gone all-in to improve Africa’s data infrastructure: The company inked an MoU with Kenya’s EcoCloud in March to establish a 100 MW data center powered by geothermal energy to promote the development of cloud computing and AI services in a bid to stimulate Kenya’s digital economy. It also signed an agreement with Mauritania’s Digital Transformation, Innovation, and Modernization Ministry in mid-2023 to develop and improve the country’s national data center.

This isn’t the first time Microsoft and G42 team up: Microsoft invested some USD 1.5 bn in G42 to position the UAE as a “global AI hub,” while both firms had previously inked an MoU in April 2023 to explore the development of customized cloud solutions in the UAE.

OTHER G42 NEWS-

#1-Presight is all set to snag a stake in AIQ: ADX-listed data analytics firm Presight AI Holding obtained shareholder approval yesterday to acquire a 51% majority stake in AIQ, Adnoc’s AI joint venture with G42, an ADX disclosure (pdf) reads. Presight is indirectly acquiring the entity through the acquisition of the entirety of G42’s shares in P Ventures. Presight had said in a previous press release (pdf) that the transaction values AIQ at USD 1.4 bn.

REFRESHER- Presight revealed its plans to acquire a majority stake in AIQ at the start of the month, saying it would be acquiring the entirety of G42’s 40% stake in AIQ, in addition to 11% of Adnoc’s 60% stake in the JV. 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.

AND- Presight inked an MoU with software developer Obvious Technologies to jointly develop big data and AI tech geared at enhancing enterprise operations management, according to a press release (pdf). The partnership will initially focus on crisis, emergency, and disaster management.

UAE banks lead q-o-q deposit growth in GCC banks -Kamco

UAE banks had a good quarter: UAE-listed banks recorded the highest deposit growth in 1Q 2024 among GCCbanks, with deposits growing 5.6% y-o-y to USD 803.2 bn, according to Kamco Invest’s GCC banking sector report (pdf). Total deposits for listed GCC banks hit a record USD 2.45 tn, up from USD 2.4 tn in 4Q 2023, according to the report.

Emirati banks’ lending grew 2.7% y-o-y to USD 568.4 bn, the second highest in the GCC after Saudi banks, which saw a 3.5% increase to USD 689.7 bn. GCC listed banks’ lending grew 8.1% y-o-y, reaching USD 2.2 tn in 1Q 2024.

Gross credit in the UAE banks grew by 1.1% in the first two months of 2024, reaching AED 2 tn by the end of February. This growth was driven by an increase in domestic credit, which offset a decline in foreign credit in February, reversing the trend from January when foreign credit rose and domestic credit was flat, the report reads.

UAE-listed banks also led the region in return on equity (RoE) during the quarter, achieving an RoE of 16.9%, with Saudi and Qatari banks following at 12.8% and 12.7%. This marks the largest y-o-y RoE increase, driven primarily by increased income and a relatively smaller rise in total shareholders’ equity.

The UAE led the pack among GCC banks in 1Q 2024 with a net interest margin of 3.49% on the back of ample liquidity and modest asset growth, according to the report.

UAE banks also recorded the largest decrease in impairments among GCC banks in 1Q. Overall, the GCC banking sector experienced its lowest impairments in five years during the quarter, with aggregate impairments totaling USD 2.27 bn, a 34.4% decline from 4Q 2023.

A LOOK AT THE REGION-

The GCC banking sector as a whole maintained stable bottom-line performance, showing q-o-q growth of 11.8% and a y-o-y growth of 10.5%, reaching USD 14.4 bn in 1Q 2024.

However, elevated interest rates impacted GCC banks for the first time in 12 quarters in 1Q 2024, with both interest income and non-interest income declining, according to the report. Total interest income was flat at USD 50.5 bn, with a 4.3% yield on credit. Total bank revenue for GCC-listed banks also dropped to USD 31.4 bn during the quarter, the first decline since 1Q 2021.

Operating expenses for GCC banks dropped to USD 12.5 bn during the quarter, down 4.5% from the previous quarter’s record high. However, the cost-to-income ratio for GCC banks slightly rose to 40% in 1Q 2024, mainly due to “higher costs for the twelve-month period.” Qatar had the lowest ratio at 38.2%, followed by the UAE and Saudi Arabia at 38.4% and 39.4%, respectively.

Sharjah's non-oil economy grew 7.1% in 2023

Sharjah’s non-oil economy grew 7.1% y-o-y to AED 142.5 bn in 2023, state news agency Wam reports, citing data from Sharjah’s Department of Statistics and Community Development. Real GDP grew 6.5% y-o-y, reaching AED 145.2 bn in 2023.

The stars of the show: The wholesale and retail trade, manufacturing, and construction sectors, collectively accounted for AED 72.5 bn of overall GDP.

Wholesale and retail trade and manufacturing took the lead: Wholesale and retail trade accounted for 24% of the emirate’s GDP, equivalent to AED 34.8 bn, making it the largest non-oil contributor to the economy. Manufacturing activities hit AED 24.3 bn, registering 7.6% y-o-y growth and contributing 16.7% of GDP.

How rentals and sales fared in the UAE in 1Q 2024, according to Asteco

Fresh data out on the real estate sector in 1Q 2024 points to a slightly slower growth rate in both rentals and sales prices in Dubai, along with promising signs of growth in Abu Dhabi and the northern emirates.

DUBAI-

The report paints a different picture of Dubai’s property market during the quarter: Annual growth rates in Dubai’s rental market slowed to single digits in 1Q 2024, with villa rental rates growing 6% y-o-y and apartments at 10% y-o-y, according to a report by property management firm Asteco picked up by Trade Arabia. The leasing market saw a 4% y-o-y drop in new contracts, while renewals grew 12% y-o-y.

Sales prices also saw growth levels unchanged from the same time last year for both apartments, which saw 6% y-o-y growth, and villas, with 8% y-o-y growth, the report adds.

ICYMI #1- Earlier data from JLL and CBRE pointed to higher growth in sales prices and rentals, with JLL pegging the growth of both at 21% y-o-y, and CBRE estimating a similar 20.4% y-o-y increase in sales and 21% y-o-y increase in rentals.

Buyer demand shifted to more established communities,including Jumeirah Village Circle, Business Bay, Dubai Marina and Downtown Dubai, which gained more traction. The off-plan market also comprised the largest market share in both value and transaction volume. Apartments were favored during the quarter, with 7.3k handed over, compared to little below 2.8k villas out of a total of 10k units delivered.

An additional 30k units are slated for handover in Dubai in 2024, representing a “significant increase compared to the previous quarter,” the report adds. JLL’s report forecasted some 26k additional unit deliveries this year, down 4k from Asteco’s estimate, while CBRE sees 25k new units.

ABU DHABI-

Rental rates hiked up in neighboring Abu Dhabi: Abu Dhabi saw rentals inflate 7-10% y-o-y for prime/high-end developments, owing to “significant demand,” particularly for new contracts – a higher figure than JLL’s 4% estimate and Abu Dhabi’s 4.5%. Rental rates for office space also increased 5-7% y-o-y on the back of limited supply against heightened demand.

Abu Dhabi rolled out 800 new units in 1Q to meet increased demand, focusing on Al Raha Beach. The emirate is currently working on a Yas Canal villa project, which will offer over 1.1k units exclusively for Emiratis in 4Q 2027. JLL had estimated some 1.6k new units completed in Abu Dhabi during the quarter.

Abu Dhabi saw some 2.7k transactions during the quarter, up 17% y-o-y, with off-plan sales comprising 69% of total transactions. Apartments accounted for 73% of off-plan sales, and 78% of total completed sales.

Sales prices were also up: Upper and luxury segments on Yas and Saadiyat Islands saw notable surges, with villa prices up 10-15% y-o-y.

THE NORTHERN EMIRATES-

A first look at rental rates in the northern emirates: Rental rates across the northern emirates increased 9% y-o-y in 1Q, with high-end developments experiencing more pronounced growth. Ras Al Khaimah led the race in rental increases, followed by Sharjah and Ajman. Rates remained relatively flat in Al Ain across all asset classes, with the exception of an 8% y-o-y increase in rental prices for high-quality villas.

WATCH THIS SPACE-

Villa capital gains are expected to hit a ten-year high this year, while apartment prices could hit new records, Haider Tuaima, director and head of real estate research at ValuStrat, told Zawya. Apartment prices are forecast to grow at a slower pace than villa prices, having only gained traction in 2H 2023, while villa prices have doubled since pandemic levels, and surpassed peak prices of 2014.

April numbers: Villa capital gains rose 31.2% y-o-y in April, with villas seeing a valuation of over AED 2k per sqft for the first time in 10 years. Palm Jumeirah logged the highest villa price increase at 40.1%, followed by Jumeirah Islands (39.5%), Dubai Hills Estate (36.2%), Green Community West (31.4%), and Emirates Hills (31.1%). Apartment prices increased 21.3% y-o-y.

Growing supply + buyer affordability could slow things down: An anticipated 64.4k new residential units by the year’s end “could lead to a market correction, but only if all under-construction projects are completed on schedule, which hasn’t been the case so far,” Tuaima said. The stabilization of villa rentals over the past six months signals that “tenants can no longer afford significant rent increases,” with many turning to mortgages amid rental highs, Tuaima added.

Huspy secures funding round from Balderton Capital to expand in Europe

Property tech company Huspy wrapped up a funding round led by Balderton Capital, with participation from existing investor Fifth Wall, and a few others, Trade Arabia reports. The exact amount of funding remains undisclosed, but the round valued Huspy higher than its Series A round in 2022, which raised USD 37 mn and was led by Peak XV (formerly Sequoia Capital India & SEA).

Where the money’s going: The influx will be used to build Huspy’s real estate superapp, as well as boost operations in Europe.

About Huspy: Founded in 2020, Huspy now handles over 25% of Dubai’s residential mortgages. The company offers end-to-end real estate services, with operations in Dubai, Abu Dhabi and Madrid.

Orascom Construction names new directors

Nasdaq Dubai-listed developer Orascom Construction has appointed Hassan Badrawi (LinkedIn) and Bjorn Schuurmans as non-executive, non-independent directors of the company, according to a disclosure (pdf). Badrawi, who joined Orascom Construction Industries (OCI) Global in 2001, enters the role after serving as chief financial officer of the group for seven years. Schuurmans currently serves as COO of NNS Group, the family office of Egyptian b’naire Nassef Sawiris, one of OCI Global shareholders.

Masdar inks a spate of agreements on Indonesian renewable energy projects

ENERGY-

Masdar backs Indonesia’s green energy transition: State-owned renewables giant Masdar has inked two strategic agreements and received an approval to establish renewable energy projects in Indonesia, according to a press release. The agreements were signed on the sidelines of the 10th World Water Forum in Bali. The approval will see Indonesia develop up to 2 GW of renewable energy in Indonesia’s new capital city, Nusantara, beginning with a 200 MW initial phase.

The breakdown of the agreements:

MoU with state-owned energy company Pertamina Power Indonesia (Pertamina NRE) to develop solar, wind and green hydrogen products both in Indonesia and abroad.

Joint development study agreement with PLN Nusantara Power aiming to triple the capacity of the operating Cirata floating PV project to 500 MW. The plans were initially announced last September, when Masdar and PLN signed an initial agreement to move forward with tripling the size of the plant.

RETAIL-

NCI sets up shop in the UAE: Hong-Kong based one-stop apparel solution services provider Neo-Concept International (NCI) inked an MoU with Al Nasser Holdings subsidiary Liwa Trading Enterprises to set up a joint venture in the UAE, in a bid to expand in the UAE and GCC retail markets, according to a press release. The JV will provide retail, wholesale, distribution, and e-commerce services in the UAE, Saudi Arabia, Kuwait, Bahrain, Qatar, and Oman, with operations commencing in the UAE in 4Q 2024.

Timeline: The JV will run an initial term of ten years, with automatic renewals for successive ten-year periods.

TECH-

New initiative for AI prompt engineering: Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum has rolled out a new initiative to upskill one mn individuals in AI prompt engineering over three years, reports Wam. The initiative — dubbed One Mn Prompters — will be overseen by the Dubai Future Foundation, and includes extensive training courses in AI and prompt engineering that are accredited with certifications. It comes as the demand for prompt engineering skills surpasses a previous demand for coding in the UAE.

REAL ESTATE-

#1- More details on Emaar’s new USD 15 bn development: Real estate developer Emaar’s new AED 55 bn luxury wellness residential venture — The Heights Country Club and Wellness — will be located 10 minutes away from Al Maktoum International Airport, District 2020, and Dubai Investment Park, and 30 minutes away from Downtown Dubai, according to its website.

The details: The new development will feature 3-4 bedroom townhouses, as well as 4-bedroom villas, with prices starting from AED 2.4 mn, according to the developer’s website. The development will also include 1.3 mn sqm of open space, featuring a 38 km network of cycling and jogging tracks, parks, and event plazas, as well as a wellness center that houses fitness technologies and programmes.

#2-Symbolic Developments is launching a new AED 150 mn (USD 40.3 mn) 72-story residential project dubbed Symbolic Aura located in Al Furjan neighborhood of Dubai, Trade Arabia writes. Construction is set to begin next month and is slated for completion in March 2026.

INS.-

Bermuda-based ins. company Fidelis Partnership opened a new office in Abu Dhabi as part of its expansion in the region, Al Bayan reports. The new office will bring Fidelis closer to their client base.

EARNINGS-

Wio becomes fastest neo-bank to hit profitability: Digital-only bank Wio logged a bottom line of AED 2 mn in 2023, marking it one of the fastest neo-banks globally to reach profitability, Gulf News reports, citing the lender’s financial statements (pdf). The bank’s operating income rose 994.7% y-o-y to AED 266.4 mn. Customer deposits also saw a significant increase to AED 11.4 bn, compared to AED 552.7 mn in the previous year.

About Wio: Launched in September 2022, Wio is among the few digital-only banking entities in the UAE. The neo-bank attracted over 50k customers to its Wio Business platform in 2023, and 40k customers to its Wio Personal platform, which saw deposits surpass AED 6 bn in 2023.

M&A-

BMH Capital saw nine direct transactions worth AED 207.5 mn on 59.5 mn of its shares on the DFM yesterday,Al Bayan reports, without disclosing further details.

HEALTHCARE-

Dubai Health Authority (DHA) inked an MoU with the University of Birmingham Dubai to support the development of the emirate’s healthcare sector, Wam reports. The partnership will involve collaborating on health policies and strategies development, advancing monitoring mechanisms, and assessing the efficacy of adopted policies.

LOGISTICS-

Dubai South and Aldar to develop facility for Kuehne + Nagel: Dubai South and Aldar Properties have partnered to develop a facility for Swiss-based logistics provider Kuehne+Nagel at Dubai South’s EZDubai e-commerce hub, according to a press release. The project is set to be completed in 2Q 2025. The facility spans a 22.9k sqm area and will offer logistics, e-commerce, and warehousing services along with office space. The agreement’s financial details were not disclosed.

The two sides had set up a joint venture in February to develop new logistics facilities. Aldar has also earmarked AED 1 bn in investments for logistics expansions in Abu Dhabi and Dubai.

Emerging markets’ credit ratings are on the up at last

Sovereign credit ratings in the emerging markets are back on the up on the bank of hoped-for rate cuts, post-Covid recovery, and policy moves in select markets, Reuters reports. The newswire points to Turkey, Brazil, Nigeria, Zambia and also us here in Egypt as adding to the growing evidence that there’s a turnaround in ratings after decades of downgrades.

Economies are in a very different place than they were during the pandemic: Three-quarters of sovereign credit rating movements in 2024 have been in a positive direction, while almost all were negative when we were all working from home during the pandemic, according to data from the Bank of America cited by Reuters.

The why: It varies by economy, Fitch Ratings’ Ed Parker told the newswire. Some economies have benefited from a recovery following the pandemic and energy price spikes from Russia’s invasion of Ukraine, while others have had a change of fortunes on the back of policy improvements, and frontier economies are reaping the rewards of their new-found access to debt markets, he added.

Good news for sure, but EMs still have a long way to go: Ratings upgrades and better access to debt markets are obviously a positive sign, especially after a long period of high interest rates and a strong USD. But getting too excited about the ratings upgrades risks ignoring long-term trends in developing countries’ debt markets.

MARKETS THIS MORNING-

Major Asian benchmarks slumped into the red this morning after the minutes of the US Fed’s latest meeting were released. Traders and bankers alike are concerned that the central bank is getting “cold feet on possible rate cuts” after data showed inflation was surprisingly stubborn. Of the big Asian indexes, only the Nikkei is in positive territory this morning.

Looking ahead: Nasdaq and S&P futures were up overnight after Nvidia reported record earnings — but futures have the Dow headed for a lower open at the start of trading today. European futures declined overnight.

ADX	8,973	-0.4% (YTD: -6.3%)
DFM	4,058	-0.4% (YTD: -0.1%)
Nasdaq Dubai UAE20	3,490	-0.6% (YTD: -9.2%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.2% o/n	5.5% 1 yr
TASI	12,157	+0.3% (YTD: +1.6%)
EGX30	27,227	0.0% (YTD: +9.4%)
S&P 500	5,307	-0.3% (YTD: +11.3%)
FTSE 100	8,370	-0.6% (YTD: +9.7%)
Euro Stoxx 50	5,025	-0.4% (YTD: +11.1%)
Brent crude	USD 81.90	-1.2%
Natural gas (Nymex)	USD 2.84	+6.4%
Gold	USD 2,4116	-1.4%
BTC	USD 69,423	-0.5% (YTD: +64.4%)

THE CLOSING BELL-

The ADX fell 0.4% yesterday on turnover of AED 1.1 bn. The index is down 6.3% YTD.

In the green: National Bank of Umm Al Qaiwain (+3.0%), E7 Group (+2.6%) and Manazel (+2.5%).

In the red: Ras Al Khaimah National Ins. (-10.0%), Abu Dhabi National Takaful (-9.9%) and Abu Dhabi National Co. for Building Materials (-9.9%).

Over on the DFM, the index closed down 0.4% on turnover of AED 582 mn. Meanwhile Nasdaq Dubai fell 0.6%.

UK Deputy PM makes secret visit to the UAE

UK Deputy PM Oliver Dowden touched down in the UAE last week in secret, in a bid to repair souring relations between the UAE and UK, the Financial Times reports, citing people close to talks between the nations. Dowden discussed “deepening and strengthening [UK-UAE] diplomatic and investment ties” with senior Emirati government officials during his visit, the Financial Times cites the UK Cabinet Office as saying.

The move comes as the country looks for GBP bns of fresh investment from sovereign wealth funds, and after recent ruptures worsened bilateral ties between the two countries, said officials and analysts from both sides.

REMEMBER- Abu Dhabi-backed RedBird IMI formally withdrew its bid to acquire British papers, the Telegraph and Spectator at the start of the month, following months of opposition from the UK government.

“There was probably a lot said about the UAE that was very undiplomatic,” UK business and trade secretary Kemi Badenoch told the Financial Times. Politicians “are often careless about how they speak about other countries … There are lessons to be learned about how we do that better,” Badenoch added.

ALSO- More details on the AI partnership with France: The Abu Dhabi Artificial Intelligence and Advanced Technology Council signed an AI MoU with the French Economy, Finance and Industrial and Digital Sovereignty Ministry to jointly advance AI tech and infrastructure in both countries, Wam reports.

The partnership will see the two countries explore investments in startups and investment funds focused on AI models and applications in sectors like health, financial services, software, retail, and industry, as well as next generation hardware.

ICYMI- The agreement — revealed yesterday by French Finance Minister Bruno Le Maire — will cover four new areas of cooperation, including investments in data centers and semiconductors, as well as research and skill development through the Abu Dhabi branch of the Sorbonne, the minister said.

OTHER DIPLO NEWS-

Foreign Affairs Minister Sheikh Abdullah bin Zayed Al Nahyan discussed humanitarian cooperation with UN Under-Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator Martin Griffiths on Tuesday, Wam reports. The meeting covered the situation in Gaza and the importance of securing a ceasefire.

CALENDAR

MAY

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

21-23 May (Tuesday-Thursday):CABSAT 2024, Dubai World Trade Center.

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

27-28 May (Monday-Tuesday): The Middle East Investors Summit, Rosewood Hotel, Al Maryah Island, Abu Dhabi.

27-28 May (Monday-Tuesday): Make it in the Emirates Forum, Abu Dhabi Energy Centre.

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

28 May-4 June (Tuesday-Tuesday): Subscription period for retail investors for Alef Education’s IPO.

28 May-5 June (Tuesday-Wednesday): Subscription period for institutional investors for Alef Education’s IPO.

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

JUNE

1 June (Saturday): Deadline for TiE Women MENA Programme 2024 applications.

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.

5 June (Wednesday): Deadline for Sidara to resubmit or withdraw its takeover bid to John Wood Group.

10 June (Monday) Alpha Dhabi holds shareholder vote on the sale of a 49% stake in Alpha Dhabi Construction to ADQ.

12 June (Wednesday): Alef Education shares begin trading.

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.

AUGUST

21-22 August (Wednesday-Thursday): Dubai Business Forum in Beijing, China.

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 in 2025:

6-11 April (Sunday-Friday): Geo-Spatial Week 2025, Dubai.
3-4 June (Tuesday-Wednesday): Make-A-Wish International’s Global Wish summit, Abu Dhabi.

Signposted to happen sometime in 2028:

Abu Dhabi to host the 47th Chess Olympiad

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