Alef could raise up to AED 1.89 bn in IPO

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Adnoc Distribution eyes 200 fast EV chargers in the UAE this year + more fuel stations across Egypt, KSA and the UAE

id: 2024-05-29-02:31:45:144t

Good morning, friends. It’s another brisk news day as we reach the halfway mark of the week, with more news from Make it in the Emirates, an update on the ADX’s first IPO of the year, an M&A and a lot of activity in the logistics sector.

WEATHER- Expect a high of 41°C in Dubai, with an overnight low of 30°C. In Abu Dhabi, the mercury will hit 34°C, before cooling to 29°C overnight.

PUBLIC SERVICE ANNOUNCEMENT-

#1- Customers can now pay for the Health and Prevention Ministry’s services in installments using credit cards issued by eight local banks, courtesy of a new Easy Payment Initiative launched by the Ministry, Wam reports. Terms and conditions — including interest, installment periods, and minimum payments — are set by the participating banks.

The banks include Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, Commercial Bank of Dubai, Ajman Bank, Emirates Islamic Bank, Emirates NBD, Sharjah Islamic Bank, and Dubai Islamic Bank.

#2- Abu Dhabi Public Health Centre has launched a campaign to vaccinate children aged one to five with measles, mumps, and rubella vaccines without charge, according to a statement. The three-week campaign started yesterday and is scheduled to end on 17 June. You can book your child’s appointment by calling any of the clinics listed on the center’s website.

WATCH THIS SPACE-

#1- Adnoc Distribution plans to have installed 200 fast EV chargers by the end of the year across the UAE, up from 90 currently, CEO Bader Saeed Al Lamki told Wam (watch, runtime: 5:58) on the sidelines of Make it in the Emirates, without specifying the exact locations. The target is to have 500 fast charging points across the country by 2028, he added.

The fuel retailer also plans to install 15-20 new filling stations in key locations across the UAE, Saudi Arabia, and Egypt, he said, and is targeting 1k stations over the next five years, up from 840 currently.

#2- Dubai Industrial City plans to draw some AED 1.8 bn in investments by 2026, Abu Managing Director of Dubai Industrial City Saud Abu Alshawareb said.

ICYMI- Dubai Industrial City has expanded by completing its AED 410 mn acquisition of 13.9 mn sq-ft of new land capacity, Wam reports. The developer had recently committed some AED 966 mn to acquire commercial and industrial assets from Dubai Holding Asset Management, as part of a wider AED 1.7 bn plan to develop commercial and industrial assets across Dubai.

ALSO- Tecom inked an MoU with Korean biopharma manufacturer Medytox to collaborate “in areas of mutual interest,” Wam reports. The MoU was signed during the UAE-Korea Business and Investment Forum, which was attended by over 250 representatives from the Emirati and Korean public and private sectors.

#1- PureHealth pours AED 1 bn into local manufacturing: Healthcare giant PureHealth has injected AED 1 bn into the economy through procurement of supplies from local manufacturers since 2023 in support of the national In-Country Value (ICV) program, according to a press release (pdf). The contribution was spent as part of PureHealth’s AED 13 bn commitment to local procurement by 2032, the healthcare firm revealed the progress during the Make it in the Emirates forum.

ICYMI- The healthcare player inked an AED 3 bn offtake agreement to procure local supplies on the first day of Make it in the Emirates.

PureHealth plans to continue to explore potential offtake transactions with the Industry Ministry as part of its ongoing efforts to maintain its ICV certification across all its assets.

ICV certification? ICV certificates are issued as part of the UAE’s in-country value program, which rewards companies that prioritize localizing supply chains and attracting foreign investments. The certificate hands them an advantage in tenders and contracts.

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HAPPENING TODAY-

#1- Dubai-based contractor Drake & Scull’s shares will resume trading on the Dubai Financial Market (DFM) today, according to a DFM disclosure (pdf). The contractor’s relisting comes following its capital increase, which raised over AED 450 mn as part of its restructuring plan.

Background: The DFM approved its restructuring plan — which will write off 90% of its debt — back in November 2023, which it was required to implement within a year from approval. The construction company was suspended from trading in November 2018 on the back of excessive financial losses and reporting violations.

Drake and Scull has tapped licensed market maker BHM Capital as a liquidity provider for its listed shares on DFM, BHM stated in a disclosure (pdf).

#1- President Sheikh Mohamed bin Zayed Al Nahyan is in South Korea on the final day of a two-day visit 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.

Defense industry cooperation, business and investment, and energy initiatives are also on the agenda, with the state leaders set to discuss ramping up their “special strategic partnership,” Reuters reports, citing a statement made by South Korean President Yeol’s office.

HAPPENING THIS WEEK-

The President will head to China tomorrow, 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.

DATA POINT-

The region’s healthcare sector is expected to reach USD 135 bn by 2027, driven by rising investor confidence, according to a recent JLL report picked up by Zawya. Healthcare spending is expected to hit USD 124 bn in the region by 2028.

THE BIG STORY ABROAD-

A big US M&A and another fresh high for Wall Street are the big business stories this morning, but they’re being largely overshadowed in the US and UK by political news.

UP FIRST- The tech-heavy Nasdaq Composite has hit a fresh high at yesterday’s close, rising 0.6% to break the 17k barrier for the first time as traders returned from a three-day weekend. (CNBC)

AND- Shareholders of Hess voted yesterday to sell their company to Chevron in a USD 53 bn transaction. It’s still far from certain that sale will go through, because…

…Exxon is still looking for a way to scupper it. The story is perhaps a bit less dramatic than the 1980s oil patch soap Dallas, but if you want the inside dirt of what’s keeping the energy industry in thrall, go read: The leaders of Exxon Mobil, Chevron and Hess are duking it out over a generational oil discovery in Guyana in the Wall Street Journal. Both the WSJ and the FT are giving the shareholder vote prominent play on their front pages this morning.

IN EUROPE, an “investment shock”: Emmanuel Macron wrapped a three-day visit to Germany with the announcement that Paris and Berlin will work together to deliver an “investment shock” to the European Union to provide more incentives for manufacturers and businesses working on advanced technologies, writes Handelsblatt. Macron and his German counterpart, Olaf Sholz, telegraphed the move in an op-ed for the Financial Times earlier this week that argued the EU needs “more single market, innovation and investment to secure a common future.” The impetus? Conutering china.

IN WAR and politics:

#1- Israeli tanks and troops have reached the center of Rafah in “a sign the military could be nearing its goal of taking full control of the southern Gazan city.” The story leads the front pages from Bloomberg through to the Financial Times.

Oh, and that US pier that was going to feed Gaza? Satellite imagery shows that it’s broken apart, CNN reports.

#2- Closing arguments wrapped late yesterday in Donald Trump’s criminal hush-money trial, with the prosecutor taking six hours to bring the case home and the defense three. The jury should get the case today to start deliberations and could deliver a verdict anytime afterward.

FOOD FOR THOUGHT this morning: There are no signs that traffic will soon return to the Suez Canal as Dubai and Jeddah open new routes to Saudi Arabia and major players continue to steam around the Horn of Africa rather than transit through Egypt. The FT goes deep into how pirate attacks, instability in the Middle East, and climate change are putting “mounting strains on global shipping.”

CIRCLE YOUR CALENDAR-

Dubai Chamber to head to Senegal, Morocco: The Dubai International Chamber will kick off a trade mission to Senegal and Morocco from 3 to 7 June to as part of its African roadshow aimed at promoting and expanding Dubai-based companies’ foothold in the continent, according to a statement. The trade mission’s agenda will include holding meetings between Dubai-based companies and their counterparts in Senegal and Morocco, with a focus on exploring collaboration, expansion strategies, and forging new partnerships and trade agreements.

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

Alef’s IPO could raise as much as AED 1.89 bn

Alef sets IPO range as bookbuilding kicks off: Abu Dhabi-based edtech firm Alef Education has set an indicative price range of AED 1.3-1.35 per share for its IPO, valuing the company at up to AED 9.45 bn, it said in a statement (pdf) yesterday. The share sale could see Alef raise as much as AED 1.89 bn. The final share price will be announced next Thursday, 6 June.

ICYMI- Alef’s shareholders, Tech Nova Investment and Kryptonite Investments, are offering up to a 20% stake (1.4 bn shares) in an IPO on the ADX. This is set to be Abu Dhabi's first IPO of the year and the UAE's third, following the successful IPOs of Parkin, which raised AED 1.57 bn, and Spinneys, which raised AED 1.38 bn.

Retail investors have until next Tuesday, 4 June to subscribe, while the subscription period for institutional investors wraps on Wednesday, 5 June. Shares are expected to begin trading on 12 June, according to the prospectus.

What they said: “Our investment proposition has been incredibly well received by the market, with significant interest in our offering since announcing our intention to float,” CEO Geoffrey Alphonso said.

Advisors: FAB and EFG Hermes are acting as joint lead managers and joint bookrunners. FAB is also the listing advisor and lead receiving bank of the IPO, with Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, and Al Maryah Community Bank acting as receiving banks.

More on Alef: Founded in Abu Dhabi in 2016, Alef’s flagship learning platform provides curated study plans for students using AI and machine learning tech, spanning several international markets, including the UAE, the US, Morocco and Indonesia.

REMEMBER- We have more IPOs in the pipeline: Last week, construction firm Alec tapped advisors for an IPO on the DFM. Amanat Holdings is also reportedly looking to list either its education or healthcare unit, with reports that its healthcare unit could raise some USD 200 mn as soon as this year, while shisha producer Advanced Inhalation Rituals was said to be eyeing an IPO in 1H 2024. Over on the ADX, Etihad Airways, and supermarket chain LuLu group have each tapped banks to advise on their transactions.

Day two of Make it in the Emirates: More funding, new digitization initiatives, and new manufacturers set up shop in Dubai

The second and final day of Make it in the Emirates rang in more industry initiatives and saw more manufacturers set up shop in the UAE.

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DATA POINT- Over 1.3k products now carry the “Made in the Emirates” label since the initiative’s launch in 2023, Wam reports, citing Assistant Under-Secretary for Standards and Regulations Sector at the Industry Ministry, Farah Al Zarooni.

DIGITIZATION-

#1- Industry Ministry launches digitalization initiative: The Industry and Advanced Technology Ministry rolled out a new initiative to accelerate digital adoption across the industrial sector, dubbed Transform 4.0, Wam reports. The initiative will support 100 manufacturers, to create “a group of Industry 4.0 lighthouses over the next three to five years,” and comes as part of plans to raise the industrial sector’s contribution to the GDP to AED 300 bn by 2031.

EDB to fund the initiative: The ministry inked an MoU with Emirates Development Bank (EDB) and national telco du to boost digital transformation in manufacturing. EDB will finance the onboarded companies, while du will act as a tech partner, assisting manufacturers in implementing the digitalization roadmap.

ICYMI- EDB is allocating up to AED 5 bn to finance businesses and projects in the manufacturing sector, marking its highest funding pledged to date, in a bid to boost “technology adoption, economic resilience and diversification” in the sector.

Also chipping in: Industrial digitalization firm Maxbyte, Precast, and du have collectively committed services valued at AED 10 bn to support the program. The Industry Ministry inked an MoU with Industry Apps to provide companies under the program with access to the platform’s portfolio of smart applications to support their digital transformation. Industry Apps will also offer services worth AED 5.5 mn without charge.

FYI- Industry Apps is a platform that aids companies in “[raising] their digital maturity” and supports their digital transformation efforts.

Who’s in? Automation solutions provider ACME was the first company to be enrolled in the initiative. Other onboarded companies include Hotpack Global, Mercatus MEA, Modern Plastics Industries, Hempel Paints, Ittihad Paper Mill (IPM), HIRA Industries, Star Paper Mill, Abu Dhabi Precast, Emirates Float Glass, HIRA Industries, Lipton, IPM, Al Gharbia Pipeline, Aquachemie, iPlast, Aswan Engineering, Agthia Group, Masafi, and Union Copper Rod.

TRADE FINANCE-

The Abu Dhabi Exports Office (Adex) — the export arm of Abu Dhabi Fund for Development — has allocated AED 3.5 bn in funding to boost local companies’ exports, Deputy Director General of ADFD Khalifa Al Qubaisi told Wam on the sidelines of Make it in the Emirates, without clarifying the timeline of the disbursement or specific sectors it plans to target.

How does Adex help? The export office usually provides credit facilities to exporters, as well as financing and guarantees for foreign importers to support their imports from the UAE/

MORE LOCAL MANUFACTURING OFFTAKE AGREEMENTS-

Strata to manufacture SailGP F50 parts: Mubadala-owned composite aerostructures manufacturer Strata Manufacturing inked a partnership with global sailing competition SailGP to manufacture parts of SailGP’s F50 catamaran models, Wam reports. As a production partner, Strata will help SailGP increase the number of its international events by ramping up the production of F50 catamarans through supplying key components of the multihull sailboat fleet, used by the ten current teams in the flagship league.

Mubadala + SailGP expand partnership: The agreement, which was signed on the sidelines of the Make it in the Emirates Forum, builds on Mubadala’s existing partnership with SailGP as a global series partner. The Abu Dhabi sovereign wealth fund is the title sponsor for the upcoming Mubadala New York Sail Grand Prix, scheduled for 22-23 June.

Lunate acquires minority stake in US-based PE firm as part of USD 3 bn JV with Blue Owl

Lunate takes minority stake in US healthcare PE firm: Abu Dhabi-based alternative asset manager Lunate Capital and American asset manager Blue Owl Capital acquired a minority stake in US-based healthcare private equity firm Linden Capital Partners, according to a statement. The acquisition comes as part of Lunate and Blue Owl’s USD 3 bn fund, which was launched in February and targets acquisitions of minority stakes in midsize asset managers.

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The “passive” investment will not have an impact on Linden’s operations or investment strategies, the statement notes.

ADVISORS- Evercore acted as Linden’s financial advisor, while Kirkland & Ellis provided legal counsel. Blue Owl was advised by BofA Securities as financial advisor and by Fried, Frank, Harris, Shriver & Jacobson as legal counsel.

The UAE’s largest 10 banks raked in AED 20.8 bn worth of net income during 1Q

The combined net income of the UAE's 10 largest listed banks increased 9.3% q-o-q to AED 20.8 bn in 1Q 2024, despite static interest rates, according to Dubai-based management consultancy Alvarez & Marsal’s UAE Banking Pulse report (pdf). Growth was driven by an 18.9% q-o-q increase in non-core income, in addition to reduced operational costs and impairment charges.

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The 10 largest banks in terms of assets: First Abu Dhabi Bank (FAB), Emirates NBD, Abu Dhabi Commercial Bank, Dubai Islamic Bank, Mashreq, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, RAK Bank, Sharjah Islamic Bank, and the National Bank of Fujairah.

Total net interest income fell 1.1% q-o-q across the board as the Central Bank of the UAE left interest rates unchanged following the US Federal Reserve’s decision, maintaining its overnight deposit rate at 5.40% and the overnight lending rate at 5.90%, the report said.

REMEMBER- The Central Bank of the UAE mirrors the Fed’s interest rate policies, as the AED is pegged to the USD.

Loans and advances (L&A) increased 3.4% q-o-q, reaching their highest level in the post-covid-19 period, mainly fueled by corporates and wholesalers, who accounted for 56.7% of the total loan book, the report said. Abu Dhabi Commercial Bank and FAB led the pack with the highest growth rates in loans among the 10 banks, showcasing a 5.4% and 5.0% q-o-q increase in L&A.

Deposits outpaced L&A in growth, improving 5.1% q-o-q as almost all banks recorded increases in deposits. RAK Bank logged the highest increase in deposits during the period, with a 9.9% q-o-q increase. Sharjah Islamic Bank was the only outlier, with a 0.3% q-o-q decrease in deposits.

All banks improved cost efficiency, with our friends at Mashreq reporting a 9.1% q-o-q drop in their cost-to-income ratio.

The overall cost of risk improved to 0.41% during 1Q, as banks managed a 47.9% q-o-q decrease in aggregate impairment charges amounting to AED 2.0 bn. Emirates NBD witnessed the highest reversal in impairment charges by overturning AED 866 mn in 1Q 2024. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, RAK Bank, Sharjah Islamic Bank, and National Bank of Fujairah saw positive q-o-q shifts in cost of risk, while Dubai Islamic Bank, Mashreq, and Commercial Bank of Dubai, reported declines.

Profitability was weighed by a heavy reliance on time deposits, which constituted 44.4% of their total deposits. However, a decrease in total interest expenses signaled better asset repricing during the quarter.

A&M expects banks' profitability to be impacted by the CBUAE cutting interest rates in 2H 2024 in line with the Fed, but not in the short term.

Tecnimont secures contract to build low-carbon ammonia plant in Al Ruwais

Italian engineering firm Tecnimont was awarded the contract to build a low-carbon ammonia plant in Al Ruwais Industrial City, according to a press release. The facility, which will produce 1 mn tons of ammonia annually, is being developed by a consortium of local and global companies, including Adnoc and ADQ JV Ta’ziz, UAE-based fertilizer and ammonia producer Fertiglobe, Korea’s GS Energy Corporation, and Japan’s Mitsui & Co.

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The timeline: Construction for the ammonia plant is set to begin in 3Q 2024, with operations expected to kick off in 2027, the statement said.

Background: The consortium signed a shareholder agreement for the project in January 2023.

The project is anticipated to substantially cut carbon emissions. The initial phase, forecasted to inject a multi-bn dollar investment into the country's GDP and create thousands of jobs over the next 20 years, will produce ammonia that has 50% lower carbon intensity compared to conventional methods. The second phase will further reduce carbon intensity through carbon capture and sequestration, doubling the initial capacity.

ICYMI- Adnoc delivered the first certified bulk commercial shipment of low-carbon ammonia to Japan's Mitsui, produced at Fertiglobe’s Ruwais facility, earlier this month.

About the companies: A key subsidiary of the Maire Group, Tecnimont specializes in large-scale engineering, procurement, and construction projects in chemicals, petrochemicals, fertilizers, refining and gas monetization, and power. Ta’ziz is a chemicals and transition fuels complex under development in Abu Dhabi’s Al Ruwais Industrial City, according to its website.

Gulf Islamic Investments + Saudi-based Logipoint to launch a USD 300 mn logistics JV

GII and Saudi’s Logipoint launch a USD 300 mn logistics JV: Dubai-based private equity company Gulf Islamic Investments (GII) and Saudi Industrial Services Company (SISCO) subsidiary Logipoint inked a SAR 1 bn (USD 300 mn) agreement to establish a logistics firm that will develop Grade A warehousing solutions in Saudi Arabia, according to a press release. The ownership structure of this joint venture was not disclosed.

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The JV will initially focus on serving Riyadh and Jeddah, with plans for expansion to other cities later on. The platform aims to provide “warehousing and handling facilities as the backbone of a multi-asset logistical network serving companies across the Kingdom,” according to the press release.

What they said: “Our logistics joint-venture with Logipoint is the latest element of GII’s growth strategy within the Kingdom, which already includes a CMA banking license for GII Saudi Arabia and the acquisition of Emad Bakeries in Jeddah within the last two months,” GII co-CEO Pankaj Gupta said.

About the firms: Logipoint, based in Jeddah, focuses on investing in, managing, and operating bonded and non-bonded logistics parks and zones. GII is a Shariah-compliant private equity firm specializing in real estate, private equity, and venture capital, managing assets worth over USD 4.5 bn.

REMEMBER- Canada-based Brookfield Asset Management acquired a controlling interest in GII's logistics division earlier this month.

GrubTech bags USD 15 mn in series B funding

GrubTech secures USD 15 mn: Dubai-based F&B platform GrubTech raised USD 15 mn in a series B funding round led by KSA-based Jahez Group ’s VC arm, according to a press release. The round also saw participation from existing investors US-based Addition and Oryx Fund, Hambro Perks’ Mena-focused VC.

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Next up, expansion: The startup will use the funding to scale up its business and expand into Saudi Arabia, Europe, and the UK, according to the statement.

What they said: "Our products empower our customers to continue using elements of their tech stack, like a POS, while adopting new sales channels and digital solutions seamlessly, getting rid of silos within operations and data,” Grubtech's co-founder and CEO Mohamed Al Fayed said. “We are excited to continue our push into different markets where we've identified strong demand and growth potential,” he added.

About GrubTech: Founded in 2019, the ecommerce platform’s flagship product, gOnline, is a comprehensive order management software designed to streamline and optimize restaurant operations by integrating all orders, payments, and operations into a unified dashboard.

Two Egyptian financial services firms are expanding to the UAE

CAPITAL MARKETS-

#1- Egyptian investment platform secures ADGM license: The Abu Dhabi Global Market (ADGM) has granted Egyptian digital investment platform Thndr the greenlight to enter the Emirati market and offer its equity trading services to UAE-based investors, according to a statement from the Egyptian startup.

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What’s next? Thndr users in the UAE will be able to invest in US securities — including stocks, exchange-traded funds, and fractional shares — on the app, with no minimum investment. More investment products will be rolled out over time, the statement added.

#2- CI Capital announces GCC expansion plans: Egyptian financial services firm CI Capital plans to set up an “on-the-ground presence” for its investment bank in Saudi Arabia and the UAE, group CEO Hesham Gohar said in a press release (pdf). Gohar described the two countries as “two very important markets with robust growth, deepening capital markets and significant investor appetite.”

AGRICULTURE-

UAE telco Emirates Integrated Telecommunications Company (du) and sustainable farm producer Gracia Group launched an AI-powered agritech platform, according to a statement. The platform will use Gracia’s digital model, Agriculture 360°, to automate agricultural operations — including buying, selling, trading, and training — and provide comprehensive information on food produce, market demands, and pricing.

LOGISTICS-

AD Ports to develop green methanol export facility in Egypt: AD Ports Group inked an MoU with Egypt’s Transmar and Orascom Construction to develop a green methanol storage and export facility in Egypt in a bid to supply low-carbon fuel for the maritime shipping industry, according to a statement. The facility looks to also supply bunkering solutions for mainliners who have purchased green methanol powered vessels, the statement notes. An investment ticket or timeline for the project were not specified.

TRADE-

Nine new suppliers have joined the Go to UAE initiative, a collaboration between French multinational company Thales, Tawazun Council, and the Industry Ministry aimed at integrating suppliers into Thales’ global supply chain and helping them expand their presence and exports, Wam reports. The suppliers joining are Halcon Systems, EPI, Al Shurooq, Precision Industries, Advanced Armored Engineering, Rockford Xellerix, Milectria, and Optimal Connectivity.

HOUSING-

#1- Abu Dhabi kicks off first phase of AED 9.3 bn housing project: Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan has inaugurated the AED 3.1 bn first phase of the North Bani Yas residential project, reports Wam. The development — spanning 3.1 sqkm — will house over 1.3k residential villas for UAE nationals, in addition to 17 parks and recreational areas, a school, and five commercial complexes.

Background: The inaugural phase is part of a wider AED 9.3 bn investment plan — dubbed Named Al Mizn Neighbourhood — to develop some 3.5k new villas across 9.1 sqkm.

#2- Housing support for 1.3k Sharjah citizens: The Sharjah Executive Council has announced a new extension to the housing support initiative, providing 1.3k beneficiaries with government housing, mini residential units, as well as maintenance, additions, and demolition and reconstruction services, Sharjah24 reports. The new batch will support 700 citizens with direct grants and offer loans to 600 beneficiaries.

Voluntary carbon markets are no panacea. Plus: Wall Street moves to T+1 settlement cycle.

Voluntary carbon markets aren’t going to solve the climate crisis by themselves, US Treasury Secretary Janet Yellen argued yesterday. Voluntary carbon markets “have the potential to support significant decarbonization,” but that’s only if we make sure that the carbon credits on offer in the market “meet high-quality atmospheric integrity standards.”

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ICYMI: The Biden administration along with the departments of treasury, energy, and agriculture released their Voluntary Carbon Markets Joint Policy Statement and Principles (pdf) yesterday.

Not all carbon credits do what they say on the tin: Yellen called for greater “supply integrity,” pushing for carbon credits offered up on the market to “represent real emissions reduction and removals” and for there to be regulations in place to “avoid negative environmental and social impact.” In this relatively unregulated market, “we’ve seen too many examples where credits fail to meet this criteria,” Yellen added.

Yellen also called out corporate buyers: “Corporate buyers should prioritize reducing their own emissions, particularly through transition planning, adopting net-zero targets, and transparently reporting on progress,” Yellen argued in her pitch for “demand integrity,” rejecting the notion that companies can just rely on offsetting their emissions through carbon credits to fill their responsibilities to the climate.

The market also needs to be more transparent: In her third pillar for sorting out the voluntary carbon market in the US, Yellen called for market integrity, adding that the voluntary carbon market is “a fragmented market, with high search costs and low transparency.”

ALSO- Traders in the United States, Canada, and Mexico are under extra stress this morning after they moved back to T+1 stock trading after enjoying for the past century a more leisurely settlement schedule. Look for a bit of short-term stress this week as folks adapt to the shift, which is meant to reduce risk in the financial system, Bloomberg writes.

Sound smart: T+1 trading means settlement comes one business day after the trade — the buyer gets the stocks the next day, and the seller the money at the same time. The previous standard in the US for most equity transactions was T+2.

In our part of the world: Most Egyptian stocks are on a T+2 schedule, but some brokerages can trade select equities T+0, with settlement happening the same day trades are executed. Saudi’s Tadawul is T+2, as is the Dubai Financial Market.

MARKETS THIS MORNING-

Asian shares are in the red this morning even after the IMF upgraded its China growthforecast to 5%, with the Shanghai Composite being the only major benchmark in the green this morning. US and European equities futures are down slightly after yesterday’s fresh Nasdaq record.

ADX	8,742	-1.0% (YTD: -8.7%)
DFM	3,987	-1.0% (YTD: -1.8%)
Nasdaq Dubai UAE20	3,327	-1.7% (YTD: -13.4%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.2% o/n	5.4% 1 yr
Tadawul	11,660	-1.5% (YTD: -2.6%)
EGX30	27,195	-0.3% (YTD: +9.2%)
S&P 500	5,306	0.0% (YTD: +11.2%)
FTSE 100	8,254	-0.8% (YTD: +6.7%)
Euro Stoxx 50	5,030	-0.6% (YTD: +11.3%)
Brent crude	USD 84.22	+1.4%
Natural gas (Nymex)	USD 2.67	+3.1%
Gold	USD 2,382	+0.1%
BTC	USD 68,285	-2.0% (YTD: +61.6%)

THE CLOSING BELL-

The ADX fell 1.0% yesterday on turnover of AED 1.2 bn. The index is down 8.7% YTD.

In the green: Sudatel (+8.3%), Palms Sports (+7.5%) and Gulf Cement (+4.8%).

In the red: Al Khaleej Investment (-10.0%), Hily Holding (-9.8%) and Abu Dhabi National Takaful (-8.5%).

Over on the DFM, the index also fell 1.0% on turnover of AED 311.2 mn. Meanwhile, Nasdaq Dubai closed down 1.7%.

President talks cooperation, investment with Korean businesses, entrepreneurs

President Sheikh Mohamed bin Zayed Al Nahyan met with two Korean business delegations during his two-day visit to Korea, Wam reports. The meeting saw the president discuss with major company representatives and entrepreneurs company growth trajectories, diversification, and business challenges. President Sheikh Mohamed emphasized that the UAE is committed to creating a “supportive environment” for investment by providing companies with “robust infrastructure and favorable regulations.” The meetings saw participation from businesses including Samsung Electronics, SK Group, and Hyundai Motor Group, Reuters reports.

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WATCH THIS SPACE- Investment and cooperation agreements coming? The agreements that will be signed during the visit will provide companies in both countries with investment and cooperation opportunities, “heralding a new era in economic relations,” the president said.

Foreign Trade Minister Thani Al Zeyoudi called on Emirati and Korean private investors to leverage and boost economic cooperation between the two countries during the UAE-Korea Business and Investment Forum in Seoul, which concluded yesterday, Wam reports. Held in tandem with the president’s two-day visit, Al Zeyoudi led a high-level delegation of 60 Emirati public and private sector representatives at the forum, which featured sessions on clean energy, innovation in ICT, and streamlining trade logistics.

Al Zeyoudi also met with Korean Trade Minister Inkyo Cheong to discuss building on the strong non-oil trade between UAE and Korea, which reached USD 5.3 bn in 2023, and exploring new avenues for cooperation.

OTHER DIPLOMACY NEWS-

Dubai Media Council Chairman Ahmed bin Rashid Al Maktoum met with Yemeni Prime Minister Ahmed Awad bin Mubarak on the sidelines of the Arab Media Forum to discuss the role of media in raising public awareness and fostering dialogue. (Wam)

CALENDAR

MAY

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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