Sidara gets another rejection from Wood Group

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WHAT WE’RE TRACKING TODAY

THIS MORNING: IHC eyes Daman IPO + UAE to hit oil capacity targets by 2025 or early 2026

Good morning, lovely people. We have a compact issue for you this morning, as is usually the case on Mondays, though we expect the newsflow to pick up pace as the president makes his first visit to South Korea tomorrow, before heading to China later in the week.

THE BIG STORY at home is British oil services and engineering firm Wood Group’s rejection of Sidara’s third bid to acquire the company. We also have news of Adnoc eyeing an acquisition of Shell’s South African assets, and an interesting read on high net worth individuals’ interest in Dubai properties — which will see them pour some USD 4.4 bn

WEATHER- We’re breaking the 40°C mark today in both Dubai and Abu Dhabi. The mercury will hit 42°C in Dubai, with an overnight low of 29°C, while Abu Dhabi temperatures will reach 41°C, with a low of 28°C.

SPORTS-

Al Ain are Asian champions: Al Ain beat Yokohama Marinos 5-1 on Saturday to become Asian champions for the second time ever, after clinching the trophy in 2003. The team overturned its 2-1 loss in the first leg of the game in Japan with a brace each from Soufiane Rahimi and substitute Kodjo Laba, as well as a penalty from Kaku. The team now qualifies for the inaugural Fifa Club World Cup 2025.

…and Al Wasl complete the double: Al Wasl clinched the UAE Pro League trophy after its 3-0 victory over Shabab Al Ahli yesterday, giving them a nine-point advantage with only two matches remaining. This was the eighth Pro League title for Al Wasl, and follows their President’s Cup victory over Al Ain last week, giving them

PSA-

#1- The Dubai Airports Freezone’s Smart Police Station is temporarily closed, Dubai Police said in an X post.

#2- UAEPass is secure: The Telecommunications and Digital Government Regulatory Authority dismissed rumors circulating on social media regarding alleged fraud using the UAEPass, reassuring users of the app’s safety.

#3- The Abu Dhabi Agriculture and Food Safety Authority has warned against crypto mining on agricultural land, warning farmers that they will face a AED 10k fine if they allow the mining activities on their farms in a Facebook statement.

Uh, Enterprise, what’s crypto mining? In the crypto world, mining refers to an energy-intensive process that verifies transactions and generates new coins using advanced computer systems.

#4- The Federal Tax Authority (FTA) is out with a new guide on corporate tax for freezone persons, it said on LinkedIn. The guide includes information on how freezone businesses and persons can benefit from the freezone corporate tax regime, which allows qualifying freezone persons to claim a 0% corporate tax rate on their qualifying income, as opposed to the standard 9% corporate tax rate. You can find the full guide here (pdf).

WATCH THIS SPACE-

#1- IHC eyes another ADX listing: Investment giant International Holding Company (IHC) plans to list Daman Ins., a unit of its subsidiary PureHealth, on the public market, IHC CEO Syed Basar Shueb tells Bloomberg, without disclosing the size or timing of the IPO.

The move comes as the firm plans to buy back up to AED 5 bn of its shares to boost its share price and reward shareholders, “who have probably not seen the share price growth in the past year,” Shueb said. The firm’s stock has “traded in a tight range for nearly two years,” according to Bloomberg data.

REMEMBER- There are more IHC IPOs in the pipeline: Shueb told Bloomberg in March the company plans to list its recently established subsidiary 2PointZero — which holds some AED 100 bn (USD 27 bn) of assets — on the ADX sometime next year. The firm is also planning to debut two more holdings — International Technology Holding (ITH) and Sirius International Holding — on the ADX, with the company prioritizing internal business growth over pursuing new sectors, Shueb told Bloomberg. ITH will hit the bourse this year, while Sirius and 2PointZero will likely go live in 2025.

#2- Ewec opens registration for 2Q 2024 CEC auction: Emirates Water and Electricity Company (Ewec) opened the registration period for its 2Q 2024 clean energy certificates (CEC) on Thursday, Wam writes. The auction will take place on 14 June.

REMEMBER- CECs are the only accredited instruments in Abu Dhabi that prove the ownership of environmental and economic benefits of consuming clean energy. The certificates were introduced by the Abu Dhabi Department of Energy to help ensure that the emirate meets its clean energy and net zero goals.

#3- Deutsche Bahn narrows bidders for DB Schenker to four: German Deutsche Bahn has shortlisted four bidders vying for its logistics subsidiary, DB Schenker, with the shortlisted companies including a financial investor, a strategic investor, a European investor and one from the Middle East, sources told Reuters, without being specific. One or more of the bids exceed the EUR 15 bn mark, the sources said, with other bids ranging between EUR 13-14 bn.

REMEMBER-Abu Dhabi Investment Authority (Adia) has reportedly been tapped by global investment manager CVC to join its consortium to bid for the company. It is also in talks with Singapore’s GIC.

Deutsche Bahn is expected to make a decision by the end of the year, with the transaction expected to close sometime next year, the sources added.

ICYMI- Adia is not the only Middle East bidder, with the Abu Dhabi sovereign wealth fund ADQ and Saudi shipping firm Bahri also expressing interest in acquiring DB Schenker. Deutsche Bahn had kicked off the sales process for its logistics subsidiary late last year. Deutsche Bahn’s offloading of DB Schenker is expected to generate between EUR 12 bn to EUR 15 bn, which the railway operator will apply towards paying down its EUR 30 bn debt and doubling down on its core railway operations.

HAPPENING TODAY-

#1- The Central Bank of the UAE (CBUAE) will auction four m-bills worth up to AED 15 bn today, 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.

#2- The Abu Dhabi Energy Center will play host to the Make it in the Emirates Forum today and tomorrow. 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.

#3- The Middle East Investors Summit also gets underway today at Abu Dhabi’s Rosewood Hotel in Al Maryah Island. The summit, which wraps up tomorrow, will focus on potential investment in the emerging tech digital assets and crypto, sports, and entertainment sectors, with one of the key themes being the GCC’s region growing influence as a business hub.

#4- The Arab Media Summit kicks off today and will run until Wednesday, 29 May at the Dubai World Trade Center. Organized by the Dubai Press Club, the three-day summit features the Arab Youth Media Forum and the Arab Media Forum from today through Wednesday, as well as the Arab Media Award ceremony tomorrow and the Arab Social Media Influencers Award ceremony on Wednesday. The events will collectively gather over 4k participants, 250 speakers, and 200 media figures, according to the Dubai Media Office.

HAPPENING THIS WEEK-

#1- President Sheikh Mohamed bin Zayed Al Nahyan will head to South Korea on a two-day visit tomorrow, 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. Marking the president’s first visit to Korea, the landmark working visit is expected to see the two countries sign a number of investment agreements and MoUs to bolster bilateral business cooperation, according to Korean news portal Korea.net.

#2- The President will head to China next on Thursday, 30 May, at the invitation of Chinese President Xi Jinping, to ring in the 40th anniversary of diplomatic relations between the UAE and China, Wam reports. The visit seeks to build on the countries’ existing strategic partnership, with the state leaders set to discuss furthering economic, developmental, and cultural cooperation to promote sustainable development and economic growth across both countries. President Al Nahyan will also attend the latest Ministerial Conference of the China-Arab States Cooperation Forum during his visit.

#3- A big week ahead for Arab diplomacy? The foreign ministers of Saudi Arabia, the United Arab Emirates, Egypt, Jordan and Qatar will join their 27 European Union counterparts in Brussels today for talks. Look for the war in Gaza and the post-war order there to take center stage: The Arab FMs were in Paris over the weekend, where they stressed the urgency of a ceasefire in Gaza during a meeting with French President Emmanuel Macron.

DATA POINTS-

#1- Over 100k Emiratis are currently employed in the private sector, with 70k having joined the workforce over the past two and a half years, Prime Minister Sheikh Mohammed bin Rashid Al Maktoum said in a statement on X, noting that the record Emiratisation rate was achieved following the launch of the AED 24 bn Nafis program.

#2- Digital trade is set to grow at a 12.3% clip over the next four years, with over 40% of UAE consumers already utilizing buy now, pay later and fintech services for online purchases, Wam reports, citing a research paper by the Economy Ministry and the Abu Dhabi Chamber of Commerce and Industry. Some 47% of UAE-based consumers opt to pay for their digital purchases using credit cards, according to the paper, surpassing the 18% global average.

MARKET WATCH-

The UAE could reach its oil capacity target sooner than its initial 2027 goal: The UAE is on track to hit its 5 mn barrels per day (bbl / d) oil capacity target by the end of 2025 or early 2026, ahead of the original 2027 goal set by the Abu Dhabi National Oil Company (Adnoc), Bloomberg reports, citing people with knowledge of the operations. Abu Dhabi currently produces about two-thirds of its capability, and has reportedly been hoping to use up its spare capacity.

REMEMBER- Adnoc has ramped up drilling operations recently, drilling new wells in oil fields and connecting production sites to existing processing stations to squeeze out more deposits, the sources said. The oil giant raised its crude oil production capacity to 4.85 mn bbl / d from 4.65 mn bbl / d earlier this month. It recently announced resumed operations at its Ras Al Sadr field in Abu Dhabi, while Adnoc Drilling has set up a JV to unlock “unconventional” energy resources in the emirate. Adnoc Gas also earmarked USD 13 bn over the next five years to expand in domestic and international markets, with plans to double its LNG production capacity by 2028.

Pundits weigh in: “The UAE is not doing this to generate spare capacity, they’re investing to produce this stuff,” Ben Cahill, a senior fellow in the Center for Strategic and International Studies said.

Increased capacity could be a point of contention as OPEC eyes extension of cuts through 2H 2024, Bloomberg reports. The OPEC+ alliance meeting, originally planned for Vienna on 3 June, was rescheduled to be held online a day later, Bloomberg reports. It is widely expected that the meeting will lead to the extension of output reductions into late 2024 to stabilize the market and increase prices, analysts told Bloomberg separately. The decision to hold the meeting online reinforces the expectation of continued cuts, according to Viktor Katona, head crude analyst at market intelligence firm Kpler.

THE BIG STORY ABROAD-

It’s a reasonably quiet morning in the global business press, as is often the case on Mondays — and even more so when it’s a long weekend: Markets are closed today in both the United States (Memorial Day) and the UK (spring bank holiday).

Hamas fired rockets at Tel Aviv yesterday for the first time since January in what defense analysts are saying is a demonstration of resilience, the Associated Press reports. Eight rockets were launched from Rafah and several were intercepted, the Israeli military said.

Israel, in turn, killed dozens in airstrikes on Rafah hours after Hamas’ attacks. At least 35 people were killed and dozens injured.

Negotiations due to resume in Cairo tomorrow: Another round of ceasefire and hostage swap negotiations is due to kick off in Cairo tomorrow, CNN and Reuters report, citing unnamed officials. Egyptian and Qatari mediators will lead the talks with US involvement.

Aid delivery resumes: Some 200 aid trucks and four fuel trucks departed from Egypt to enter Gaza through the Kerem Shalom crossing yesterday, bypassing the Rafah crossing that has been closed for several weeks, Al Qahera News reports.

A bad morning for nervous flyers: The press is picking up on the idea that significant in-flight turbulence is becoming more common thanks to global warming after a dozen people were injured yesterday on a Qatar Airways flight that ran into turbulence over Turkey. The incident came just days after dozens were hurt in a similar Singapore Airlines incident. The story is all over front pages this morning.

Signs of the times: Hedge fund managers are blaming slow fundraising on the slow pace of exits by their counterparts in private equity. Both rely on pension plans, foundations, and endowments for assets under management, but with PE exits slowing, limited partners have less cash to put into hedge funds and other asset classes, the Financial Times writes.

Keep an eye on: Closing arguments in Donald Trump’s hush-money trial, which begin on Tuesday, and parliamentary elections in South Africa, which start on Wednesday.

Wood Group rejects another takeover bid from Sidara

Wood Group turns down another takeover bid by Sidara: British oil services and engineering firm Wood Group has rejected a higher acquisition bid from Dubai’s Sidara, according to a bourse disclosure on Friday. This is Sidara’s third bid for the British company.

ICYMI- Sidara had submitted a preliminary offer on 8 May to buy the consultancy firm at GBP 2.05 per share, which was rejected by Wood’s board, which said that it “fundamentally undervaluing Wood and its future prospects.” The company later submitted a revised bid of GBP 2.12 per share on 14 May, marking a 3.4% upward revision from its previous bid, and valuing the company at GBP 1.47 bn. Despite the increase, Wood Group’s board unanimously felt that the offer still undervalued the company.

The new bid: Sidara’s revised bid offered to buy the consultancy firm at GBP 2.20 per share, marking a 3.8% upwards revision from its previous bid and 7.3% from its first. Wood’s board unanimously rejected the offer, on the grounds that it continued to “significantly undervalue” the group.

Sidara still has a chance: Sidara has until 5 June to submit another offer or withdraw its bid.

REMEMBER- Wood is in a tight spot: Last month, shareholder Sparta Capital Management urged Wood to consider listing in the US or selling the company after negotiations with buyout group Apollo to buy the company fell through. Apollo’s bid — which it withdrew last month — had valued the company at GBP 1.66 bn at the time. Wood’s shares had fallen about 25% over the past year, Bloomberg reports, giving it a market value of GBP 1.1 bn.

Market reax: Wood’s shares closed up 5.2% at GBP 1.89 on Friday.

Advisers: JPMorgan Chase and Morgan Stanley serve as joint financial advisers and corporate brokers to Wood.

Adnoc mulls bid for Shell’s downstream assets in South Africa

The Abu Dhabi National Oil Company (Adnoc) is reportedly eyeing Shell’s downstream assets in South Africa, Bloomberg reports, citing unnamed sources familiar with the matter. The potential sale, which could be priced at USD 800 mn, would be the latest step in Shell’s ongoing divestment from South Africa, following the sale of the country’s largest oil refinery in 2022. Talks are ongoing with “several highly credible parties,” Bloomberg quotes Shell’s spokesperson as saying.

What’s on the table: The sale would include the company’s aviation, marine, construction and road, trading and supply, commercial fuels, and lubricant operations, Shell had confirmed earlier this month. Shell owns a network of 600 stations across the country.

Other potential bidders reportedly include Saudi Aramco, South Africa’s chemicals and energy player Sasol, Switzerland-based Puma Energy, and Swiss company Glencore.

REMEMBER- The oil giant has been making acquisitions to expand its LNG business and diversify operations. Adnoc made its first investment in the US last week with the acquisition of a minority stake in a USD 18 bn Texas LNG project. It also acquired a 10% stake in a concession in Mozambique. The firm is also mulling a stake acquisition in AmeriGas, the propane distribution unit of US utility holding company UGI Corp, through its subsidiary Adnoc Distribution, as part of plans to diversify away from oil.

IN OTHER M&A NEWS-

Ghitha’s trading arm Invictus made a formal offer to acquire a controlling stake in an agro-food manufacturing company primarily operating in North Africa, according to an ADX disclosure (pdf). The acquisition will directly benefit Invictus’ agro-commodity trading business, according to the statement.

REMEMBER- Invictus has been eyeing African expansion: The company completed its acquisition of a 60% stake in Zalar Holding’s interests in Moroccan agriculture trading company Graderco and all its subsidiaries in April, after expanding in Tanzania, Mozambique, Turkey, Malawi, Burundi, and Rwanda in 2023.

High net worth individuals to pour USD 4.4 bn into Dubai’s property market –Knight Frank

The world’s wealthiest are poised to buy USD 4.4 bn worth of Dubai properties: High net worth individuals (HNWIs) are projected to acquire USD 4.4 bn worth of luxury residential real estate in Dubai in 2024, according to consultancy Knight Frank’s Destination Dubai report (pdf). More than 54% of those surveyed cited the city’s high-quality infrastructure as the number one factor making Dubai an attractive place to acquire real estate.

Who are these HNWIs? The report, conducted in partnership with YouGov, surveyed 317 HNWI — 217 living abroad and 100 GCC-based HNWI expats — with a collective net-worth of USD 5.4 bn.

The appetite for Dubai’s property is “exceptionally high,” the National quotes Faisal Durrani, partner at Knight Frank, as saying. “The level of interest to invest in Dubai rises with the level of personal wealth growing, from 28% for those worth USD 2-5mn, topping out at 70% among those worth more than USD 15 mn.”

Some 85% of GCC HNWI expats are buying residential property in Dubai as an investment, with nearly half intending to purchase the property as a buy-to-let investment. Additionally, 60% of East Asian HNWIs seek investment properties in Dubai for rental income, capital gains, or portfolio diversification. Meanwhile, only 31% of all surveyed HNWIs are looking to purchase a property in Dubai as a main residence, second home, or holiday retreat.

Branded property has been gaining traction: Some 69% of HNWIs are interested in buying branded residences in the emirate, up from 59% of surveyed investors in 2023. Demand increases from 41% for those with USD 2-5 m net worths to a staggering 94% interest for those with over USD 15 mn in net worth. Among global HNWIs, 83% are interested in purchasing branded residences in Dubai.

Behind the growing demand: 36% of the surveyed expect branded property prices in Dubai to climb by 5-10% within the first year of acquisition. 59% cited high yield and investment potential alongside service provision and physical amenities as the primary drivers for buying branded residences. Brand identity followed as the third factor with 58%.

GCC-based expat investors are taking a shine to healthcare properties, with 34% showing interest in purchasing property in the healthcare sector, while 76% of the surveyed plan to acquire residential real estate. Meanwhile 28% prefer branded residential properties.

With higher wealth comes a stronger diversification push: Knight Frank noted that preference for residential properties decreases with higher net worth. Wealthy investors with net worth ranging between USD 2-5 mn target investing in the residential sector, with interest for residences falling from 74% to 56% for those whose net worth exceeds USD 15 mn. “This apparent change in attitudes towards the residential sector amongst the world’s wealthy may not necessarily indicate a lack of appetite for residential real estate, but perhaps a greater desire to diversify their portfolios,” the report explains.

ABU DHABI AND RAS AL KHAIMAH-

Abu Dhabi is getting less interest from HNWIs, with only 33% of those surveyed saying they are interested in investing in the emirate, though the figure rises to 57% for those with more than USD 15 mn in personal wealth. Some 14% cited a perception of a lack of returns as their main reason for the lack of interest, while 11% cited lack of transparency and market data. Some 40% said their purchases would be for investment purposes.

It’s a similar story in Ras Al Khaimah, which is getting increased interest from HNWIs. Some 46% of those surveyed said the emirate’s transformation makes it more attractive, with interest rising to 75% of those with a net worth of over USD 20 mn.

LOOKING AHEAD-

The consultancy projects a 5% y-o-y growth in Dubai’s prime property prices in 2024, “positioning Dubai as the third fastest-growing prime residential market in the world behind Auckland 10% and Mumbai 5.5%. Prices in the mainstream market will grow at a slower 3.5%, according to the report.

HNWI’s forecast is also sunny: The surveyed HNWis are optimistic about Dubai’s real estate market, with 36% anticipating a 5-10% price increase within the first year of purchasing a property in the emirate. The most bullish are investors with over USD 15 mn in net worth, with 57% expecting prices to surge between 10-20% within a year.

Fidelity United taps interim CEO

Fidelity United appointed its CFO Obbad Fazal (LinkedIn) as interim CEO, as it works closely with the Central Bank of the UAE to approve a permanent appointment for the CEO position, according to an ADX disclosure (pdf). Fazal replaces former CEO Bilal Adhami (LinkedIn), who resigned from his position.

Palm Jebel Ali infrastructure awards handed to DBB, Khansaheb

REAL ESTATE-

Nakheel awards Palm Jebel Ali infrastructure contracts to DBB, Khansaheb: Dubai state-owned real estate firm Nakheel awarded two construction contracts to DBB Contracting and Khansaheb Civil Engineering for the development of Palm Jebel Ali’s infrastructure, according to a statement from Dubai Media Office. DBB Contracting was awarded a contract for the construction of a 6km public access road leading directly to the luxury real estate development from the Sheikh Zayed Road and a road serving the central portion of the palm, while Khansaheb will be in charge of the roadway and lighting enhancements for Al Hesah Street at Dubai Waterfront, the main road connecting to Palm Jebel Ali.

LOGISTICS-

Dubai-basedDP World and the Saudi Ports Authority (Mawani) have brokenground on a SAR 900 mn (USD 250 mn) logistics park at Jeddah Islamic Port, according to a Dubai Media Office (DMO) statement. The new storage and distribution hub, which is set to boost trade volumes in Saudi Arabia and the region, and will become Saudi’s largest logistics park, is set to open in 2Q 2025. The project will be developed in two phases, according to the statement.

Jeddah Logistics Park is being developed under a 30-year concession worth SAR 500 mn (USD 133.33 mn) granted to DP World by Mawani in 2022, according to an earlier release. Mawani and DP World are partnering on another 30-year concession for DP World at the South Container Terminal. These two projects represent a total investment of almost SAR 4 bn (USD 1 bn), according to the statement.

SUSTAINABILITY-

#1- AD Ports launches Maritime Sustainability Research Center: AD Ports Group has launched its not-for-profit Maritime Sustainability Research Center in Abu Dhabi, to be operated and managed by Abu Dhabi Maritime Academy and located on its grounds, according to a statement from Friday. The center will be dedicated to research, seeking funding, supporting graduate study programs, and sharing knowledge amongst stakeholders in the fields of the marine environment and sustainability, artificial intelligence and robotics, maritime cyber security, big data, and maritime policies and laws.

#2- Ruler of Sharjah Sheikh Sultan bin Muhammad Al Qasimi approved the UAE’s first Aquaculture Farm in Khorfakkan in partnership with the University of Khorfakkan, Wam writes.

BANKING-

#1- Moody’s has affirmed Emirates NBD’s long-term deposit and unsecured ratings at A2, and upgraded its outlook to positive, Al Bayan writes. The credit rating agency affirmed the lender’s baseline credit assessment at baa3, with short-term deposit ratings remaining at P-1. Sukuk programs were also affirmed, and senior unsecured foreign currency at (P)A2.

#2- DMCC firms can now open Al Maryah bank accounts more easily: Al Maryah Community Bank and Dubai’s Multi Commodities Centre (DMCC) partnered to make it easier for businesses in the DMCC to open accounts through the bank’s integrated digital platform, Mbank, Wam reports. DMCC firms can now open accounts digitally in six steps within 48 hours, with no minimum balance or monthly fees. The platform provides a variety of banking solutions, such as current and savings accounts, online and mobile banking, WPS, overdrafts, loans, and trade finance.

LEGISLATION-

The Dubai International Financial Centre Courts signed a cooperation agreement with Hong Kong’s Law Society during a Hong Kong delegation visit to Dubai, Wam reports. The agreement marks the “first agreement of its kind between The Law Society of Hong Kong and a Middle East courts system,” according to The Law Society of Hong Kong President C. M. Chan.

HEALTHCARE-

The Healthy Cities programme in Sharjah could expand to include Khorfakkan, Kalba, and Al Dhaid, following a recent meeting of the Executive Committee for Expanding the Scope of Healthy Cities, Gulf News reports. The Healthy Cities program assesses city governments’ efforts to improve public health, considering factors like disease prevalence, socioeconomics, lifestyle, environment, and healthcare utilization.

MEDIA-

#1- UAE and GCC to ramp up media cooperation: The National Media Office and UAE Media Council Chairman Sheikh Abdulla bin Mohammed bin Butti Al Hamed met with Gulf Cooperation Council (GCC) Information Ministers on Friday to discuss advancing cooperation between media institutions, focusing on sustainable coordination, Wam reports.

#2- National Media Office chairman Abdulla bin Butti Al Hamed discussed with Chinese National Radio and Television Administration minister Zhu Yonglei boosting media cooperation between the two countries, Wam reports. The two officials also explored the prospects of establishing a media partnership.

TRANSPORT-

RTA App gets an upgrade: Dubai’s Roads and Transport Authority (RTA) released a new version of its RTA app, featuring a personalized dashboard with quick actions for essential services such as license renewals and purchasing parking tickets, according to a statement. The upgraded version also allows customers to make Salik online payments, voucher top-ups, and NOL top-ups directly within the app.

EDUCATION-

Abu Dhabi inaugurates new ACS campus: Tolerance and Coexistence Minister Sheikh Nahyan bin Mubarak Al Nahyan inaugurated the American Community School of Abu Dhabi in Saadiyat Island’s new campus, according to the Abu Dhabi Media Office.

SoftBank to sink USD 9 bn a year into AI

SoftBank has lots of appetite for AI: Japan’s SoftBank plans to earmark around USD 9 bn a year to AI investments as it looks to fuel the expansion of its chip-design subsidiary Arm, the Financial Times wrote.

All for the group’s “crown jewel:” The group’s founder and CEO Masayoshi Son has been pushing to transform it into an AI powerhouse, in hopes of securing acquisitions that can feed into its Arm. Much of the company’s USD 180 bn net asset value has been driven by the UK-based Arm, which saw its share price jump nearly 25% after its blockbuster September 2023 market debut. Arm’s valuation has soared since then to exceed USD 100 bn currently.

Refresher: SoftBank has shifted its investment strategy to AI and semiconductors after backtracking on venture capital investments and selling assets owned by its startup fund Vision Fund, which included a USD 14 bn stake in defunct coworking startup WeWork.

MARKETS THIS MORNING-

Asian markets are up slightly in early trading this morning as investors look forward to a week packed with macro data in the run-up to Friday’s release of US core personal consumption expenditures — a report that Reuters says “could set the stage for a cut in interest rates there, albeit not for a few months yet.”

European futures were down slightly overnight, and both Wall Street and the City are off today for holidays.

ADX	8,834	-0.6% (YTD: -7.8%)
DFM	4,013	-0.3% (YTD: -1.2%)
Nasdaq Dubai UAE20	3389	-1.1% (YTD: -11.8%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.0% o/n	5.3% 1 yr
TASI	11,851	-1.2% (YTD: -1.0%)
EGX30	27,539	+1.2% (YTD: +10.6%)
S&P 500	5,305	+0.7% (YTD: +11.2%)
FTSE 100	8,318	-0.3% (YTD: +7.6%)
Euro Stoxx 50	5,035	0.0% (YTD: +11.4%)
Brent crude	USD 82.12	+0.9%
Natural gas (Nymex)	USD 2.52	-5.2%
Gold	USD 2,357	-0.1%
BTC	USD 68,625	-0.7% (YTD: +62.3%)

THE CLOSING BELL-

The ADX fell 0.6% yesterday on turnover of AED 4.6 bn. The index is down 7.8% YTD.

In the green: Hayah Ins. (+4.8%), Phoenix Group (+4.8%) and E7 Group (+3.5%).

In the red: Taqa (-6.9%), Waha Capital (-6.0%) and Pure Health (-5.8%).

Over on the DFM, the index fell 0.3% on turnover of AED 372 mn. Meanwhile, Nasdaq Dubai closed down 1.1%.

UAE, OECD discuss cooperation

UAE, Iraqi Kurdistan talk bilateral ties: President Sheikh Mohamed bin Zayed Al Nahyan met with the president of the Iraqi Kurdistan region, Nechirvan Barzani, on Friday to discuss boosting cooperation to benefit the UAE and Iraq, and promote sustainable development, Wam reports. The leaders also swapped perspectives on several issues of mutual interest.

UAE, OECD discuss cooperation: Assistant Minister for Economic and Trade Affairs Saeed Mubarak Al Hajeri met with the Secretary-General of the Organisation for Economic Cooperation and Development (OECD), Mathias Cormann, on Friday to explore ramping up cooperation in areas of mutual interest, Wam reports. The meeting also covered the success of previous collaborations between the UAE and OECD in tax criteria and reforms.

ALSO- The Foreign Affairs Ministry said it welcomed the International Court of Justice’s latest ruling to impose additional provisional measures on Israel, calling for an immediate cessation of military activities in Rafah governorate, Wam writes.

CALENDAR

MAY

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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