Adnoc L&S snaps up UK pool operator for USD 1.04 bn

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WHAT WE’RE TRACKING TODAY

THIS MORNING: The cost of floods on Emirates, passenger traffic growth, Etihad’s IPO, and more from IATA’s annual meeting

Good morning, friends. We have a mixed bag of news for you today, with plenty of investments in real estate and private credit leading the way — plus a bunch of forecasts for the airline industry as the IATA annual meeting draws to a close.

THE BIG STORY here at home is Adnoc Logistics & Services’ USD 1.04 bn acquisition of UK-based pool operator Navig8. Also worth your attention: Abu Dhabi Investment Authority’s latest private credit investment, which saw it anchor European asset manager Pemberton’s NAV financing strategy, as well as Emaar’s AED 1.5 bn plans to expand Dubai Mall.

WATCH THIS SPACE-

#1- Interest among real estate investors in Abu Dhabi, Sharjah, and Ras Al Khaimah’s property markets is picking up as property prices continue to soar in Dubai, partner and head of Mena research at real estate consultancy Knight Frank Faisal Durrani told Khaleej Times. Also helping spur interest are infrastructure investments and new development launches like Wynn Resorts’ plans to develop the first integrated gaming resort in the MENA region in Ras Al Khaimah at USD 3.9 bn.

Residential prices in Abu Dhabi have remained relatively flat over the past four years, Durrani says, adding that “this stability, combined with the fact that prices in Abu Dhabi are, on average, about a third cheaper than Dubai, […] has contributed to rising transactional activity,” with the emirate logging a 75% y-o-y surge in total transactions in 2023, against neighboring Dubai’s 38% y-o-y increase in the same period.

Stable prices in Abu Dhabi are also pushing tenants to ditch rentals for ownership of properties, according to Durrani. “International demand too has crept up, with the proportion of international buyers […] for Aldar’s home sales rising from 3% two years ago to 28% last year.”

ICYMI- We had detailed coverage of Knight Frank’s Destination Dubai report last month, which dives into investor sentiment for the three emirates among high net worth individuals.

#2- Emirates Airlines is reviewing its contingency plans after the April floods cost it AED 400 mn in damages and claims, Emirates chief Tim Clark told a media briefing at the International Air Transport Association (IATA) meeting in Dubai, according to the National. “We’ve got to be far more aggressive, if you can call it that, and if necessary, stop the operations and [grapple] with all the fallout,” he said. The airline needs to spend more on manpower, ground equipment, and training in order to be more prepared if a similar crisis happens again, Clark added.

#3- Etihad Airways is pushing forward with plans for its IPO on the ADX, with the company “working very hard to make it happen whenever it is the time,” Etihad CEO Antonoaldo Neves told Bloomberg in an interview (watch, runtime: 4:34). Etihad owners told Neves to run the company as if it were listed, he adds in the interview.

REMEMBER- ADQ is considering listing Etihad on the public market “as soon as this year,” with the specific timing and size of the offering still undecided. ADQ is eyeing going after both a traditional IPO and direct listing, and has tapped banks to advise on its planned IPO on the ADX. Etihad would be the first major Gulf carrier to trade publicly if the IPO goes through.

#4- ADGM to overhaul property regulations: The Abu Dhabi Global Market (ADGM) has proposed amendments and new rules to its real property regulatory framework in a recently published consultation paper (pdf). These regulatory updates aim to “address market needs and ensure [that ADGM] stays aligned with market developments,” the financial center said in a statement. ADGM has published the paper to gather feedback from all ADGM-based organizations and investors on the proposed regulations, with the deadline for submitting comments set for 19 June.

What is ADGM proposing?

Amending the real property regulations of 2015 to enhance tenant protection in short-term residential leases and close legislative gaps as it expands into Al Reem Island;
Establishing a new system for registering off-plan development projects;
Introducing a framework for registering off-plan and property professionals, including brokers, property managers, and valuers who operate within ADGM’s jurisdiction.

DATA POINTS-

The UAE and the GCC regions’ passenger traffic is poised to grow 4% y-o-y between now and the end of the decade, Wam cites regional Vice President for Africa and the Middle East at International Air Transport Association (IATA) Kamil Al Awadhi as saying. The projected growth is set to be driven by several upcoming projects in the region, including the expansion of Al Maktoum International Airport, the launch of a new airport in Kuwait, and forthcoming projects from Saudi Arabia.

The IATA expects Middle East airlines to rake in USD 3.8 bn in net income in 2024, up from the previously forecast USD 3.1 bn, the association said in its latest outlook report. The IATA attributed the upwards revision to the Mena region’s robust economies. While geopolitical risks could jeopardize Levant carriers’ growth, GCC airlines will remain “relatively less impacted unless tensions between Iran and Israel escalate.” Domestically, the UAE “continues to benefit from its attractiveness to both leisure and business travelers,” the IATA notes.

OIL WATCH-

#1- UAE oil output tops OPEC+ quota in May, Bloomberg survey shows: The UAE’s oil output reached 3.13 mn barrels per day (bbl / d) in May, exceeding its Opec+ designated production quota by some 218 mn barrels, a Bloomberg survey found. However, official data from the oil cartel shows that the UAE was compliant with its assigned quota. Opec+ collectively pumped 26.96 mn bbl / d throughout May, marking an uptick of 60k barrels from April.

REMEMBER – Opec+ agreed to extend most of their crude oil production cuts well into 3Q 2024, maintaining the current production cuts of 3.66 mn bb / d. The UAE was granted a higher production quota of 3.5 mn bbl / d in 2025, up from the current 2.9 mn.

ALSO- Opec+ may be hinting at a shift in its production policy as the fine print on its latest decision reveals it will gradually phase-out output cuts as early as October 2024, according to Bloomberg’s Javier Blas. This could either mean the group is reversing its course, growing eager to pump more oil into the market, or strategically shifting away from its USD 100-a-barrel oil target, Blas wrote.

Giving up the quest for “triple-digit prices” would not be a mistake, he added, saying that “somewhat lower prices could help it in the long-term: by easing global inflation and therefore prompting lower interest rates and higher economic growth in emerging economies; and by removing the implicit subsidy that OPEC+ was granting to its US shale rivals.”

There is no telling whether the market can digest more oil: Opec’s planned phase-out is sparking debate among pundits about whether market conditions are ready to absorb the group’s extra barrels, Bloomberg reports.

BACKGROUND- Opec+ extended crude oil production cuts during its meeting in Riyadh on Sunday. Production will remain unchanged until the end of this September, when the group will begin phasing out cuts over a 12-month period.

Oil prices fell over 3% yesterday to their lowest in close to four months as traders reacted to the Opec+ meeting.

HAPPENING TODAY-

#1- 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 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.

#2- The World Air Transport Summit and International Air Transport Association (IATA) wraps its annual general meeting and the World Air Transport Summit today. The event, hosted by Emirate Airlines, is being held in the UAE for the first time and brings together some 1.5k participants including industry leaders, government officials and media to discuss challenges facing the international aviation sector.

#3- The Hotel Show kicks off today at the Dubai World Trade Centre and runs through to Thursday, 6 June. The three-day event welcomes visitors from across the hospitality supply chain to source products from global and regional exhibitors and discuss developments within the industry.

HAPPENING THIS WEEK-

S&P Global will publish PMI figures for May next Wednesday. The non-oil sector continued to expand in April, though at a slightly slower pace due to the impacts of the storm.

THE BIG STORY ABROAD-

#1- Tension between besties Russia and China? The Financial Times is picking up on growing tension between Russia and its closest ally China, after Beijing asked to purchase Russian gas at heavily subsidized domestic prices, endangering a major gas pipeline agreement between the two countries.

#2- Closer to home: Israel’s coalition government has fallen into infighting over a proposed ceasefire plan — and relations between Cairo and Tel Aviv are ever more frosty after Israel “defied” Egyptian warnings and took control of the Philadelphi Corridor.

YOUR DAILY DOSE OF ELECTION COVERAGE- Nigel Farage, the former leader of the UK’s Independence Party and a Brexiteer, will be running in next month’s UK general election. Farage “has been one of the most influential politicians in Britain since the Thatcher era,” the Guardian writes in a profile about the politician. The general election will take place on 4 July — Labour is looking to form its first government since May 2010.

AND- Mexican voters have elected Claudia Sheinbaum as the nation’s first woman president. She looks on track to claim a 30 percentage point margin of victory, giving her the opportunity to “reshape the country’s political landscape” together with her allies, the New York Times notes. Some investors are spooked, the Financial Times writes, noting some have “sold the peso on fears of radical constitutional change.”

FINALLY- The rich be getting richer: Half of the CEOs running S&P 500 companies surveyed by AP made at least 196x what their median employee earned last year, up from 185x in 2022. Data from the newswire also showed that CEOs’ median pay package rose 12.6% to USD 16.3 mn in 2023, while wages of private sector workers rose just 4.1% during the same period.

CIRCLE YOUR CALENDAR-

The AI Retreat is set to take place on 11 June at Dubai’s Museum of the Future, according to a Dubai Media Office statement. Organized by the Dubai Centre for Artificial Intelligence, the event will gather over 1k AI experts, policymakers and business leaders to explore the potential and challenges of AI at both local and global levels.

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

Adnoc L&S acquires 80% of Navig8 in USD 1.04 bn

Adnoc L&S snaps up Navig8: Adnoc L&S is acquiring multinational shipping pool operator Navig8 in a USD 1.04 bn transaction, with transfer ownership retroactively effective from 1 January 2024, according to a press release. The company will snap up an 80% stake for USD 1.04 bn now, before buying the remaining 20% stake in Navig8 in 2027 for an additional consideration ranging from USD 335 mn to USD 450 mn. The agreement is pending regulatory approval, the statement said.

The acquisition will see Navig8 retain its management, operations, and branding, the statement also said.

A boon for Adnoc L&S: The first full financial year following the acquisition is expected to see a minimum 20% boost to Adnoc L&S’ earnings per share, the statement said. The acquisition is also expected to save Adnoc L&S some USD 100 mn per year in technical management costs and costs associated with bunkering operations, the statement explained. The acquisition will also boost Adnoc L&S’ services portfolio to include bunker trading, pooling and other services, and expand its footprint to Navig8’s 15 global locations.

All part of the big post-IPO plan: The latest acquisition comes as part of an expansion strategy unveiled ahead of Adnoc L&S’ landmark USD 769 mn IPO last year, which will see it shell out USD 5 bn in investments in the medium term, the statement said.

About Navig8: Established in 2007, Navig8 is a fully integrated shipping management service provider. Apart from a company-owned 32 vessel tanker fleet, the outfit also operates and charters other vessels.

ADIA to back Europe-based Pemberton Asset Management

Adia backs Pemberton’s NAV financing fund: An Abu Dhabi Investment Authority (ADIA) wholly-owned subsidiary will serve as anchor investor for European private credit manager Pemberton Asset Management’s new NAV strategic financing strategy, according to a statement. The exact size of the investment was not disclosed, but is expected to edge the strategy’s first close to over USD 1 bn, alongside commitments from other undisclosed investors.

Uh, Enterprise, what’s NAV financing? NAV loans — which leverage investment portfolios to access financing — are a non-dilutive tool that can boost liquidity for an illiquid fund, especially at later stages in its cycle. This form of financing is becoming increasingly popular among private equity players as traditional forms of capital-raising become harder to access.

About the strategy: The strategy offers net asset value financing and capital for private equity general partners (GPs) and funds, with a focus on backing fund commitments, succession planning, strategic initiatives, and portfolio company investments, including bolt-on acquisitions.

What they said: “NAV financing is one of the fastest growing asset classes in private credit, and we are confident Pemberton’s new strategy will prove attractive to a broad range of GPs,” ADIA private equities department’s executive director, Hamad Shahwan Aldhaheri, said.

ADIA ❤️ private credit: ADIA recently poured USD 1 bn into Barclays and AGL Credit Management’s new private credit fund, and ramped up its commitment to London-based alternative asset manager Cheyne Capital’s capital solutions strategy to GBP 650 mn. The state investor previously ventured into private credit in September, backing a USD 5 bn fund launched by Wells Fargo alongside asset manager Centerbridge and making a USD 932 mn investment in Australian real estate private credit company Qualitas Diversified Credit Investments.

Emaar earmarks AED 1.5 bn for Dubai Mall expansion

Emaar Properties will invest AED 1.5 bn to expand Dubai Mall, the developer said in a press release. The expansion will see Emaar add 240 new luxury retail stores and F&B outlets to the world’s second largest mall. While the name of the contractor was not disclosed, construction on the expansion is expected to commence soon, according to the statement.

What was said: “The new Dubai Mall expansion is a great addition to one of the most visited sites in the world. This expansion reflects Dubai’s ambitious vision to remain at the forefront of global innovation and culture, further solidifying our city’s position as a top global destination,” Emaar founder Mohamed Alabbar said.

About Dubai Mall: Spanning over 1.2 mn sq-m, Emaar’s premium shopping center is the world’s second largest shopping mall — trailing behind the New South China Mall — boasting over 1.2k stores.

ICYMI– Dubai Mall was the most visited place in the world in 2023, attracting 105 mn visitors, a 19% increase from the previous year’s 88 mn.

IN OTHER INVESTMENT NEWS-

Dubai-based real estate developer Tabeer Development is set to invest AED 1 bn in its projects this year, Al Bayan reports. The developer is also set to deliver two projects this year: 48 Parkside in Arjan and 99 Park Place in Jumeirah Circle Village. It also just announced plans to complete a high-end development in Arjan — Parkside Boulevard — by 4Q 2026.

Svarn Developments, founded by real estate veteran Ramesh Aswani, plans to invest some USD 500 mn in the UAE’s real estate market, Al Bayan reports citing the real estate company’s chairman Ramesh Aswani. The company is targeting key areas like Dubai South, Majan, and Dubai Marina.

Mashreq kicks off sale of AT1 bonds

Our friends at Mashreq have started selling their benchmark-sized, USD-denominated additional tier 1 (AT1) bonds with initial pricing expected to be in the high 7% range, Reuters reported yesterday, citing an arranging document it saw. Mashreq plans to raise USD 500 mn from the issuance, which was expected to see the final price set later yesterday.

REMEMBER- Mashreq hired banks to advise on the issuance last week. The bonds will be perpetual and non-callable for 5.5 years, meaning Mashreq can’t redeem them during that period except by paying a penalty.

Uh, Enterprise, what are AT1 bonds? They’re a common way banks raise core tier-one capital without diluting shareholders by raising equity. Additional tier one certificates (or just “AT1 certificates”) are a form of subordinated debt — they rank behind other types of bank debt in case of liquidation. That makes them riskier than senior debt, but still prioritizes them above equity holders. AT1 certificates are “perpetual” in that they have no fixed maturity date. They pay interest in much the same way as a bond does, but usually can be converted into equity in some circumstances — that’s why they’re often called CoCos in the industry, for “contingent convertibles.”

ADVISORS- Mashreq has appointed Abu Dhabi Commercial Bank, Al Ahli Bank of Kuwait’s DIFC branch, BofA Securities, Citi, Emirates NBD Capital, FAB, Kamco Investment Company, Mashreq, and Mizuho as joint lead managers and joint bookrunners.

IN OTHER MASHREQ NEWS-

The bank also facilitated a BD 130 mn (USD 343 mn) dual currency real estate financing facility for Abu Dhabi-based Eagle Hills Diyar’s Marassi Al Bahrain project, according to a press release. The funds will be used to offer more residential offerings and leisure facilities at the development.

ADVISORS- Mashreq acted as the sole coordinator, bookrunner, investment manager, security agent, and account bank on the transaction. It also underwrote and arranged the facility along with Kuwait Finance House – Bahrain.

Burjeel sets up healthcare JV with Colombian health organization

UAE’s Burjeel Holdings and Colombia’s Keralty set up JV: Healthcare provider Burjeel Holdings and Colombia’s Keralty set up a joint venture, dubbed Al Kalma, to develop and operate an integrated healthcare system for cost-efficient healthcare in the MENA region, according to a press release (pdf). The project will first begin operations in Saudi Arabia, with plans to expand to the UAE and North Africa later down the line. It will also evaluate options for countries beyond the region, the statement said.

Ownership breakdown: Burjeel Holdings and Keralty will each hold an equal 50% shareholding in the JV. The investments associated with the JV were not disclosed.

The details: The JV will operate specialized primary care centers and offer health risk management services and integrated mental health services, with a target to reach nearly 30 mn patients over the next decade.

Burjeel Holdings is the first Emirati company to form a joint venture with a Colombian healthcare institution, which comes after the two countries inked a comprehensive economic partnership agreement

About Keralty: Keralty is a multinational health organization based in Colombia, with operations in nine countries, including the US, Brazil and Peru.

DFSA eases regulations around unrecognized crypto tokens and stablecoins

The Dubai Financial Services Authority (DFSA) amended its crypto token regime based on recommendations from a January consultation paper, it said in a statement yesterday. The amendments offer more flexible regulations for investing in unrecognized crypto tokens, reduce fees on investments, and implement more stringent anti-money laundering rules.

Breakdown of the key amendments:

Reduced fees: The application fee for a crypto token to be recognized by the DFSA is now USD 5k, down from the previous USD 10k, according to appendix 5 (pdf).
Money laundering rules: Crypto businesses will have to implement stringent anti-money laundering policies for token transactions by closely monitoring transactions, reporting suspicious activities, and conducting due diligence on transfers exceeding USD 1k to ensure regulatory compliance and assess associated risks, according to appendix 4 (pdf).
External and foreign funds based in now have more freedom to invest in recognized tokens, while domestic qualified investor funds can invest up to 30% of their gross asset value in unrecognized tokens, according to appendix 1 (pdf). The recognized tokens are Bitcoin, Ether, Litecoin, XRP, and Toncoin.
The regulation of fiat crypto tokens: The fresh regulations for fiat-backed Crypto Tokens — also known as stablecoins — demand reserves matching or exceeding the token’s total value, in the same fiat currency, composed of stable, liquid, diversified, and low-risk assets. These reserves must undergo daily valuation, with monthly reports confirming compliance, all verified by an independent, qualified third party.

ALSO- The Central Bank of the UAE’s board greenlit the introduction of a licensing and regulatory system for stable cryptocurrencies, along with a series of measures geared towards supporting the banking, ins. and financial infrastructure sectors, Wam reported, without disclosing further details.

Mohamed Saeed Al Remeithi named new CEO of Abu Dhabi Aviation, CTO of Adnic resigns

Mohamed Saeed Al Remeithi (Linkedin) was appointed as the CEO of Abu Dhabi Aviation as of the start of June, according to an ADX disclosure (pdf). Al Remeithi has over 18 years of experience at Abu Dhabi Aviation, and most recently served as deputy general manager for over eight years.

Abu Dhabi National Ins. Company accepted the resignation of its executive vice president and chief operational services and technology officer Yousuf Amin (LinkedIn), effective 21 July, according to an ADX disclosure (pdf).

Emirates boss makes headlines with criticism of Heathrow, forecasts for higher ticket prices

British media was all over Emirates’ boss Tim Clark’s comments during the annual meeting of the International Air Transport Association in Dubai. The airline’s boss said Heathrow Airport is “seriously lagging” and is in need of investments, the Telegraph and the Times both report. Meanwhile, Time magazine picked up his comments on ticket prices — which are expected to go up amid the post-pandemic travel boom — and the industry’s low income margins.

NMDC Energy to set up AED 367 mn manufacturing facility in Kezad + Dubai public beaches get a revamp

MANUFACTURING-

NMDC Energy to set up AED 367 mn manufacturing facility in Abu Dhabi: Abu Dhabi’s Khalifa Economic Zone (Kezad) and National Marine Dredging Company (NMDC) subsidiary NMDC Energy inked a 50-year lease agreement for a new manufacturing facility in Abu Dhabi, targeting modular fabrication, according to an AD Ports statement. The agreement, which was signed on the sidelines of the Make It In The Emirates Forum, will see NMDC Energy invest some AED 367 mn (USD 100 mn) into the facility, which is expected to create 3k new jobs.

About the facility: The 224k sqm facility will offer top-tier services such as engineering, procurement, project management, fabrication, installation, and commissioning to the local oil and gas sector.

INFRASTRUCTURE-

Dubai allocates AED 355 mn for beach development: Dubai’s Higher Committee for Urban Planning and Well-Being awarded AED 355 mn worth of contracts to fund the development of 5.7 km of public beaches at Al Mamzar and Jumeirah 1, according to the Dubai Media Office. The projects are scheduled for completion within 18 months, according to the statement.

The project includes the establishment of Dubai’s first 24/7 night swimming beach in Deira, a 5 km pedestrian path connecting the beaches, 11 km of cycling and running tracks, and the introduction of a 200-m-long floating bridge at Al Mamzar Beach — a first in the emirate.

TECH-

WWT and NXT to build UAE’s first AI Integration Centre: US-based tech services company World Wide Technology (WWT) and NXT Global signed an MoU to launch the UAE’s first AI Integration Center, according to a press release. The partnership will be known as WWT NXT Global and will see the development of a facility in Abu Dhabi’s Masdar City to develop and export plug-and-play AI infrastructure to the world.

ICYMI- This is not the first US-UAE investment in AI: Microsoft invested some USD 1.5 bn in G42 in May. The two firms will also jointly set up a USD 1 bn fund to support AI developers, geared at strengthening the AI infrastructure and capabilities in the UAE and the wider MENA region, building on a previous partnership between G42 and Microsoft to expand existing data center infrastructure in the UAE.

M&A-

ADX-listed Rak Ceramics fully acquired Rak Porcelain for an undisclosed sum, as part of plans to focus on “core business segments,” according to an ADX disclosure (pdf).

STARTUPS-

Dubai-based rental services startup Colife has kickstarted its expansion into Asia with operations in Hong Kong, Trade Arabia reports. The startup plans to expand into 10 major cities across the world by 2028, Trade Arabia cites a statement as saying, adding that it usually budgets some USD 350k to set up operations in a new region, before ramping up investments to USD 2 mn in the first year, CEO Ilnara Muzafiarova said. Colife already operates in Dubai and Istanbul.

The details: The startup plans to focus on co-living space rentals, with a target to create more than 100 units and open a full-scale co-living house for about 60 units.

SUSTAINABILITY-

#1- Emirates Driving received a 9.7 out of 10 ESG rating from global index provider MSCI, a bourse disclosure (pdf) reads. The AAA rating is the highest in the consumer services industry as of March 2024.

#2- World Smart Sustainable Cities sets up regional office in Abu Dhabi: The Abu Dhabi Municipalities and Transport Department (DMT) has inaugurated a Mena office for the Seoul-based World Smart Sustainable Cities Organisation, after signing a friendship city agreement with the Seoul Metropolitan Government, according to the Abu Dhabi Media Office. The new office aims to foster collaboration and knowledge exchange for regional urban development.

More details: The friendship city agreement covers urban planning, transport, and smart technologies collaboration. This partnership also extends to initiatives such as autonomous vehicles, AI utilization, and open data.

REAL ESTATE-

Real estate developer Azizi Developments awarded a design contract to Dubai-based architectural and engineering consultancy National Engineering Bureau (NEB) for 11 residential towers in Azizi Venice, Trade Arabia reports. Azizi is the project’s master developer, responsible for building construction, roads, and infrastructure.

About Azizi Venice: Launched in September 2023, the AED 30 bn mixed-use development comprises over 30k residential units across 100 apartment complexes in Dubai South, plus 400 luxury villas and mansions.

INVESTMENT BANKING-

Australian investment bank Barrenjoey has introduced its fixed-income sales and trading services in Abu Dhabi, marking its first overseas expansion, Bloomberg reports. The company currently has ten people staffed in its Abu Dhabi office. The move follows investment banks Rothschild & Co and Morgan Stanley’s expansion into Abu Dhabi last year.

HEALTHCARE-

#1- ADSCC bags FACT accreditation: The Abu Dhabi Stem Cells Center (ADSCC) received the Foundation for the Accreditation of Cellular Therapy (FACT) accreditation for its cellular therapy program, in recognition of its hematopoietic cellular therapy product processing, according to the Abu Dhabi Media Office. The healthcare institution is the first in the UAE and one of only two centers in the Middle East recognized by FACT, which is considered the leading accreditation organization for cellular therapy programs on a global scale, according to the statement.

#2- Dubai Health Authority extended its partnership with National Training (Jaheziya) to enhance the emergency and health crisis management systems within Dubai’s healthcare sector, Wam reports.

INS.-

S&P Global affirmed Orient Ins. and its subsidiaries’ A+ long-term issuer credit and insurer financial strength ratings, with a stable outlook, according to a press release. The decision was based on the company’s robust capitalization, careful underwriting strategies, and reliable reins. collaborations, according to the statement.

CAPITAL MARKETS-

The ADX added ADSS as its latest brokerage, increasing the bourse’s total number of market participants to 33, according to an ADX statement.

BANKING-

S&P Global upgraded Emirates Development Bank’s (EDB) long-term issuer credit rating to AA from AA-, assigning it a stable outlook, according to a statement. The ratings agency affirmed the lender’s long-term Gulf Cooperation Council (GCC) regional scale rating at gcAAA. S&P attributed the upgrade to the UAE’s favorable macroeconomic look and credit conditions that are expected to sustain the growth of government-related entities (GREs), including EDB.

EDB now holds the highest credit rating among issuers in the UAE and the Mena region, with the upgrade representing the highest credit rating ever awarded to a financial institution across the region, Wam reports.

BUSINESS-

Dubai Chamber to draw more Polish investments: Dubai Chamber of Commerce has officially launched the Polish Business Council to bolster bilateral trade and investment relations between Dubai and Poland, according to a statement.

SMEs-

Emirates Airlines has partnered with business discovery platform HiDubai to give local businesses access to travel links that can help grow their business through the carrier’s business rewards program, a press release reads. Emirates plans to engage with more than 180k SMEs on HiDubai’s platform to onboard them onto its rewards program.

Turkey’s inflation hits 75.5% in what is believed to be the peak before a slowdown

“The worst is over” for Turkey’s inflation: Turkey’s annual consumer price inflation rose to 75.5% in May — according to the Turkish Statistical Institute — in what economists expect to be the peak of a years-long cost-of-living crisis before prices start to cool. “The worst is over,” Finance Minister Mehmet Simsek said on X. “The transition period in the fight against inflation is complete and we are entering the disinflation process,” he added.

In detail: Headline inflation in May — which was up by 5.7 percentage points from a month earlier — was driven primarily by steep annual price rises in education, housing, and restaurants. Monthly inflation climbed to 3.4% in May, up from 3.2% in April.

Despite the jubilant tone, inflation still came in higher than expected: A Reuters poll saw annual inflation peaking at 74.8% in May and monthly inflation registering 2.7-3.3%.

So where is inflation headed from here? Annual inflation will likely drop below 50% by the end of 3Q 2024, hit 33.2% in 12 months, and 21.3% in 24 months, Simsek said. Analysts polled by Reuters expect annual inflation to drop to 42.6% by the end of 2024.

MARKETS THIS MORNING-

Most Asian markets have started the day in the red, with only Hong Kong’s Hang Seng bucking the trend. There’s no clear trigger for the dip, which sees the Nikkei leading decliners at dispatch time this morning (-0.7%). Futures for major European benchmarks dipped overnight, while Nasdaq, Dow, and S&P 500 futures were largely unchanged.

ADX	8917.6	+0.6% (YTD: -6.9%)
DFM	3993	+0.4% (YTD: -1.6%)
Nasdaq Dubai UAE20	3352.3	+0.2% (YTD: -12.8%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.2% o/n	5.4% 1 yr
TASI	11,808	+1.6% (YTD: -1.3%)
EGX30	26,834	-0.1% (YTD: +7.8%)
S&P 500	5,283	+0.1% (YTD: +10.8%)
FTSE 100	8,263	-0.2% (YTD: +6.9%)
Euro Stoxx 50	5,004	+0.4% (YTD: +10.7%)
Brent crude	78.57	-3.1%
Natural gas (Nymex)	2.66	+3.0%
Gold	2,358.1	+0.5%
BTC	69,264	+1.9% (YTD: +155.4%)

THE CLOSING BELL-

The ADX rose 0.6% yesterday on turnover of AED 979.1 mn. The index is down 6.9% YTD.

In the green: Abu Dhabi National Company For Building Materials (+14.6%), RAK Co. for White Cement and Construction Materials (+5.6%) and Adnoc Logistics & Services (+4.2%).

In the red: Gulf Medical Projects (-9.6%), Al Khaleej Investment (-9.1%) and Hayah Ins. (-6.1%).

Over on the DFM, the index rose 0.4% on turnover of AED 302.1 mn. Meanwhile Nasdaq Dubai rose 0.2%.

CORPORATE ACTIONS-

Ajman Bank’s board approved a share buyback program that will see it buy back up to 10% of its shares on the DFM after receiving the regulatory approvals, according to a disclosure (pdf).

Abdullah bin Zayed meets Prime Minister of Singapore

Abdullah bin Zayed meets Prime Minister of Singapore: Foreign Affairs Minister Sheikh Abdullah bin Zayed Al Nahyan and his delegation visited Prime Minister of Singapore Lawrence Wong to congratulate him on assuming office, Wam reports. The two discussed strengthening bilateral relations between the countries and prospects for boosting economic, trade, investment, climate, education, tourism, and energy cooperation.

CALENDAR

MAY

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.

JUNE

2-4 June (Sunday-Tuesday): The World Air Transport Summit and International Air Transport Association (IATA)’s annual general meeting, Dubai.

4-6 June (Tuesday-Thursday): The Hotel Show, Dubai World Trade Centre.

4-6 June (Tuesday-Thursday): INDEX, Dubai World Trade Centre.

4-6 June (Tuesday-Thursday): WORKSPACE, Dubai World Trade Centre.

4-6 June (Tuesday-Thursday): Leisure Show, Dubai World Trade Centre.

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

3-7 June (Monday-Friday): Dubai International Chamber’s trade mission to Senegal and Morocco.

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

11 June (Tuesday): The AI Retreat, Museum of the Future, Dubai.

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

3 August (Saturday): UFC Fight Night, Etihad arena, Abu Dhabi.

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

24-27 October (Thursday-Sunday): International Sports Medicine Conference, Dubai.

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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