Dubai plans major drainage overhaul project

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WHAT WE’RE TRACKING TODAY

THIS MORNING: No slowdown in Dubai rent prices this year + Cost of living is on the rise

Good morning, wonderful people. We have another relatively busy issue for you today, leading with news of Dubai’s massive infrastructure upgrade project, as well as (yet more) M&A news — including Adnoc and Covestro entering formal negotiations after Adnoc submitted a revised takeover bid.

WATCH THIS SPACE-

#1- Dubai’s real estate market isn’t slowing down this year: Real estate and rent prices in Dubai are unlikely to “go flat” or decline this year — despite previous analyst forecasts — as transaction activity in the market remains strong, Bloomberg Middle East reporter Zeinab Fattah said (watch, runtime: 2:59). The boom in Dubai’s real estate is now expected to be sustained until 2025-2027, at which point they can begin to cool as new home deliveries begin hitting the market, Fattah said. The continued rise in rent prices reflects a shift that the “transient nature of Dubai seems to be well and over,” CBRE Group’s head of research Taimur Khan told the business information service.

Making a dent: Recent home deliveries were swiftly absorbed without impacting prices, but upcoming deliveries are anticipated to be more significant in volume. Analysts predict that around 270k homes will be delivered throughout the upcoming period.

Single-family home rentals top the price list: Since the end of 2020, city-wide property prices have surged by 60%, while rent prices have climbed by 83%. The most significant rise has been in single-family home rentals, which now average USD 96k per year.

DATA POINT- Rents in the emirate are expected to climb 10% over the next six months, Khaleej Times reports, citing Jacob Bramley, senior leasing manager at Betterhomes. The handover pipeline over the next two quarters is anticipated to sustain the “steady [rent] growth of 5-10% over the next six months,” Bramley said. Average rents across the emirate have jumped 15.7% y-o-y in 1H 2024, with apartments and townhouses rising about 15% y-o-y and villa rents seeing an 18% y-o-y surge.

The expected climb will follow a 13-quarter consecutive increase, with Dubai drawing demand “from everywhere even though the Russian buyers have declined in the market,” Prathyusha Gurrapu, head of research and advisory at Cushman & Wakefield Core told Bloomberg.

#2- Emirates Steel Arkan + Itochu kick off feasibility study on iron processing plant: Japan’s Itochu Corporation and Emirates Steel Arkan will jointly develop a new low-carbon iron processing plant in Abu Dhabi, according to a press release picked up by Zawya. The plant will be built together with Japan’s JFE Steel and will produce around 2.5 mn metric tonnes of reduced iron from 2027 onward. The supplier of iron ore will be CSN Mineracao, a Brazilian company in which Itochu has a stake.

#3- Ajman’s Department of Land and Real Estate Regulation will kick off its building classification process next Monday, 1 July, Wam reports. The initiative will see a team of specialized professionals assess buildings and real estate facilities for compliance with standards and regulations, in a bid to ensure service quality and provide transparency for investors interested in renting or purchasing property in the emirate. The process will span three months.

#4- Shanghai-based planemaker Comac has a good chance of breaking the Boeing-Airbus duopoly over the jet market within the next 10 years, CEO of aircraft lessor Dubai Aerospace Enterprise Firoz Tarapore told Reuters. Despite difficulty in obtaining certifications from European and US regulators, Comac is garnering attention as the other planemakers face labor shortages and engine issues resulting in delivery delays and disrupting airline growth plans, the newswire added. “Over the next decade COMAC has a unique opportunity to break this duopoly into a triopoly because on the one hand Airbus is sold out, and Boeing is having production problems,” Tarapore said.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- Watch out for fraud: The Abu Dhabi Global Market’s Financial Services Regulatory Authority (FSRA) issued a warning against Sterwa Holdings, whose website falsely claims it is regulated by the FSRA, which the regulatory body believes could be aimed at “conducting fraud, by harvesting personal identifiable information and other credentials.”

#2- The deadline to redeem e-AED balance is the end of this week, the Finance Ministry said, according to Al Khaleej. While the Finance Ministry will be shutting down e-AED cards, they have ensured that customers can recover any of their remaining balance before 30 June. The process can be completed by submitting a request on the ministry’s website.

DATA POINT-

#1- IPOs in the UAE have raised a combined AED 4.8 bn since the beginning of the year, with total demand for the three initial public offerings of 2024 coming in at some AED 404 bn, Wam reports.

ICYMI- State-owned Parkin and supermarket chain Spinneys each debuted on the DFM this year, while Alef Education went public on the ADX earlier this month.

#2- Dubai has jumped three spots in Mercer’s cost of living leaderboard, making it the most expensive Arab city on the index and number 15 worldwide, according to Ashraq Business. Abu Dhabi is the runner-up in the ranking of Arab cities, remaining at number 43 worldwide.

#3- Around AED 1 bn is spent on developing Al Maktoum International Airport’s infrastructure annually, Dubai South CEO Khalifa Al Zaffin told CNBC Arabia in an interview. Total investments in Dubai South amount to at least AED 27 bn, with a 50%-60% contribution from the private sector, according to Zaffin. FlyDubai is expected to transfer approximately 8 to 18 aircrafts to Al Maktoum International Airport by 2026, Al Zaffin announced.

#4- Dubai saw motor ins. premiums spike due to April’s rains with Chinese car models up 26% and Japanese and Korean up 25%, Gulf News reports. German and American cars faced a 9% increase, while EVs like Tesla rose by 10-15%.

#5- Registrations for the UAE domain “.ae” surpassed 350k registrations by 2024, with some investors selling domain names at multiples of their initial cost, according to Al Bayan. While registering a domain generally costs around USD 34, some attractive domains can multiply in value. A unique domain such as “auto.ae” was sold for USD 101k in June 2022, and “invest.ae” was sold for USD 75k in August 2021.

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THE BIG STORY ABROAD-

The big business story this morning: Nvidia shares have now slid more than 16% since Thursday, when their rise briefly made the company the most valuable in the world ahead of Apple and Microsoft. The company’s shares tumbled 7% yesterday, helping drag the Nasdaq down 1.1% for the day. (The Dow Jones Index, which doesn’t include Nvidia, was up 0.7%.) That’s left traders reading sheeps’ entrails running technical analysis in search of a support line. Want to go deeper? Check out the Financial Times | Wall Street Journal | Bloomberg.

Climate change is still getting big play on the front pages of major global business news sites. Bloomberg looks at Saudi’s heat-preparedness after some 1.3k pilgrims died on Hajj this year and a heat dome remains parked over the US and parts of Canada. Dubai, meanwhile, will spend USD 8 bn upgrading its drainage system after rains paralyzed the emirate in April.

KEEP AN EYE ON the global logistics system, where an uptick in Houthi attacks on Red Sea shipping, drought in central America, and worker strikes in the United States, Canada, and Germany have “intensified upheaval in shipping.” Read: ‘It’s all happening again.’ The supply chain is under strain in the New York Times.

Briefly noted: The US and UK press are trumpeting that Wikileaks founder Julian Assange is set to be freed after striking a plea bargain with the United States. And former European Investment Bank President Werner Hoyer is under investigation for corruption.

ELECTION WATCH- French Prime Minister Gabriel Attal takes on his two top challengers in a debate today, with President Emmanuel Macron warning of “civil war” if the far-right or far-left win at the ballot box. The two-step parliamentary election process starts on Sunday.

Up next: Rishi Sunak and Labour leader Keir Starmer face off in a debate tomorrow, while Joe Biden and Donald Trump will clash on Thursday.

Dubai plans AED 30 bn drainage infrastructure project

Dubai is planning to spend AED 30 bn to upgrade its drainage network, after record flooding in April damaged city infrastructure and disrupted operations, Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum said on X yesterday. The planned drainage network will handle up to 20 mn cubic meters of water daily, and increase the emirate’s rainwater drainage capacity eightfold, Sheikh Mohammed said.

Project timeline: Construction for the drainage network will kick off in stages, with the handover scheduled by 2033.

Seeing the cup half full: The torrential storms — which saw more than a year’s worth of rainfall in a single day — “taught us many lessons and helped us recognize where we need to improve readiness to be better prepared for the future,” Sheikh Mohammed said. Bloomberg also had the story.

We knew an upgrade was coming: In the weeks after the April storm, Prince Mohamed bin Zayed issued a directive to evaluate the country’s infrastructure. The Energy and Infrastructure Ministry began preparing a “complete study” on dam and waterway expansions, and dispatched teams to assess the impact of heavy rainfall on dams and roads and create strategies to bolster dam capacity, enhance waterways, repair damaged roads, and upgrade rainwater drainage along federal roads to withstand severe future weather events.

Adnoc and Covestro kick off negotiations after revised takeover bid

Adnoc ups its bid for Covestro takeover: German chemicals company Covestro is now in formal negotiations with the Abu Dhabi National Oil Company (Adnoc) for a potential takeover agreement after Adnoc presented a revised offer for the company, Covestro said in a press release. Adnoc is now offering EUR 62 per share, valuing Covestro at around EUR 11.7 bn.

Moving forward after lots of stalling: The two companies are now moving forward with negotiations following a year of stalled talks, with Covestro signaling the two “can generally reach a common understanding regarding core aspects of a possible transaction.” Covestro held supervision meetings mid-June to discuss allowing Adnoc to perform due diligence. Due diligence was expected to happen this month, with the revised bid expected to be made in July, according to previous media reports.

Covestro is giving Adnoc no assurances: Covestro has provided Adnoc due diligence information but stated that “there is no certainty whether the upcoming negotiations will lead to an agreement. There is also no certainty as to the final terms of any such agreement.” If the sale comes through, it would be Adnoc’s biggest-ever acquisition, Bloomberg reports.

This is Adnoc’s final offer: Adnoc confirmed that EUR 62 per share is its final offer, Bloomberg reports, citing an Adnoc statement. Over the past year, Adnoc increased its bid three times, from EUR 55 to EUR 57 and then to EUR 60 per share. The oil giant recently received approval from top officials to raise its offer, contingent on completing thorough due diligence, according to Bloomberg, citing sources familiar with the matter. Reuters and the Financial Times also had the story.

GIP, Snam SpA look mull offloading Adnoc Gas pipeline assets

Adnoc Gas stakes could be up for grabs: Global Infrastructure Partners (GIP) and Italian gas network operator Snam SpA are mulling selling their stakes in the Abu Dhabi National Oil Company’s (Adnoc) gas pipeline unit, Adnoc Gas Pipeline Assets, Bloomberg reports, citing people familiar with the matter. GIP, the unit’s largest foreign stakeholder, is working with advisors to gauge interest in its share, sources said. Snam, which holds a 6% stake in the company, is also contemplating offloading its stake.

In 2020, a GIP-led consortium secured a 49% stake in the unit: GIP led a consortium of international investors, which included Brookfield Asset Management, GIC, Ontario Teachers’ Pension Plan, and NH Investment & Securities, to acquire a 49% stake in a pipeline network for some USD 10.1 bn back in 2020. This transaction valued the entire network, including debt, at almost USD 21 bn

Lunate is a potential buyer: Abu Dhabi-based alternative investment firm Lunate reached out to key stakeholders of Adnoc Gas pipeline assets to acquire their stakes, the sources said. The ADQ-backed firm previously acquired a 40% stake in Adnoc’s oil pipeline asset network from US private equity giants BlackRock and KKR & Co in April. The firm manages around USD 105 bn assets.

Rak White Cement gets revised Ultratech offer

Ultratech amends the terms of its offer to ramp up Rak White Cement stake: Indian Cement Manufacturer UltraTech has revised its offer to acquire an additional stake in Ras Al Khaimah for White Cement (Rak White Cement), Rak White Cement said in a disclosure (pdf). UltraTech is now looking to acquire an additional 25% stake — equivalent to 125 mn shares — in Rak White Cement, revising its offer downward from the initial bid for an additional 31.6% stake (158 mn shares).

What’s next: The offer period is now being extended to 26 July, according to the disclosure. The deadline for shareholders to sell their shares to UltraTech was originally set to elapse yesterday.

REMEMBER- UltraTech acquired a 29.39% stake in Rak cement for USD 101 mn in 2022, as part of their plan to expand the cement manufacturer’s operations locally and globally, and to introduce new products to Rak Cement’s production portfolio.

OTHER M&A NEWS-

Abu Dhabi’s sovereign wealth fund Mubadala will invest USD 250 mn in the Turkish last-mile delivery company Getir as part of the company’s restructuring plans that will see it split into two separate entities, Sky News reports, citing insiders familiar with the approved restructuring plan.

Earlier this week the company’s shareholders approved splitting into two companies. One segment, specializing in food delivery in Turkey, will be primarily owned and controlled by Mubadala, with Batuhan Gultakan at the helm. Nazim Salur, the founder of the company, will not play an active role in this division. Instead, Salur will lead the other division, encompassing Getir’s ride-hailing services and additional assets.

Part of the proceeds will go towards repaying Getir’s outstanding debt, which included “ several mns of GBP owed to Tottenham Hotspur FC.”

Have Mubadala and Getir buried the hatchet? Bloomberg reported last month that tensions arose between Getir and its largest investor Mubadala after Chief Strategy Officer Derya Erdemli, was dismissed by the startup’s management. Erdemli had advised the startup to downsize operations, aligning with the investors’ recommendation to shut down foreign operations and concentrate on Turkey.

REMEMBER- Mubadala, along with other investors, provided Getir with additional funding — which Bloomberg said came in at about USD 200 mn — to Getir in late April. The investment was split into tranches, and full delivery contingent upon Getir meeting set targets, including changes to the board and a reshuffle of senior management.

OMHL snags 20% stake in Italian bicycle manufacturer

Abu Dhabi-based investment company Officine Mattio Holding Limited (OMHL) is set to acquire a 20% stake in Italian bicycle manufacturer Officine Mattio for an undisclosed sum, BikeBiz reports. OMHL will offer up financial resources to support the Italian company’s expansion plans and product diversification efforts as part of the agreement, in a bid to promote capital expansion and ramp up Italy’s cycling sector.

About Officine Mattio: The Italian company specializes in “Made in Italy” bicycles and associated parts, and offers cycling tours. Officine Mattio sponsors professional women’s racing team BePink and amateur granfondo cycling team OM.CC.

OMHL has bigger plans for the cycling industry: The investment firm plans to play “a crucial role in the cycling industry,” by rolling out long term investments in high-end bicycle manufacturers, cycling technology firms, and performance components producers.

Timeline: The transaction is set to be finalized by the end of the month, pending customary closing conditions and regulatory approvals.

Lunate launches global sukuk ETF with JP Morgan

Abu Dhabi’s Lunate Capital is introducing an exchange traded fund (ETF) tracking global sukuk as demand for stable investments soar, Lunate said in a press release. The Chimera JP Morgan Global Sukuk ETF is set to debut on the ADX on 8 July.

Details: The fund will track the performance of the JP Morgan Global Investment Grade Sukuk Index, which monitors around 70 liquid, USD-denominated sukuk instruments across several global markets. The ETF will include top-tier sovereign, quasi-sovereign, and corporate sukuk issuers.

SOUND SMART- Top tier sovereign debt issuers are highly rated sovereign issuers, while quasi-sovereign debt issuers are corporate entities guaranteed by the government, but not fully owned by the state, for example, state-owned enterprises, government agencies, and sovereign wealth funds.

Subscription period: Investors looking to subscribe to the fund can do so via six authorized participants or through the ADX eIPO investor portal starting June 24. The fund’s authorized participants include International Securities, EFG Hermes, Arqaam Securities, FAB Securities, Daman Securities, and BHM Capital.

This is Lunate’s second ETF of the year and the 16th to hit stock markets in the UAE, according to the statement. Lunate and JP Morgan Chase launched the UAE’s first bond ETF in March covering investment-grade bonds worth USD 500 mn or more, it includes issuances from the likes of Mubadala Investment, the Abu Dhabi government, and First Abu Dhabi Bank.

What they said: “This ETF offers direct access to local, regional, and global fixed income markets, meeting increasing investor demand for stable investment opportunities. Its addition strengthens Abu Dhabi’s position as a hub for finance and investment and reflects the growing interest in ETFs as versatile investment tools,” ADX CEO Abdulla Salem Alnuaimi said.

Sharjah Islamic Bank to sell new USD-denominated senior sukuk

Sharjah Islamic Bank is set to issue a benchmark-sized USD-denominated five-year senior sukuk after hiring banks to advise on the issuance, Reuters reports citing a document it saw. The sukuk will be issued under the lender’s USD 3 bn trust certificate issuance program. Investor meetings and investor calls started yesterday.

ADVISORS- Our friends at Mashreq alongside Abu Dhabi Islamic Bank, Abu Dhabi Commercial Bank, Bank ABC, Dubai Islamic Bank, First Abu Dhabi Bank, and QNB Capital are acting as joint lead managers and bookrunners. Standard Chartered Bank, Emirates NBD Capital and HSBC are acting as joint global coordinators.

UAE ranks 7th competitive economy in the world

The UAE rose to 7th place among the world’s 67 most competitive economies, climbing three spots from last year in the 2024 IMD World Competitiveness Ranking (pdf). The UAE ranked 2nd globally in economic performance, jumped to 4th place from 8th in government efficiency, and secured the 10th position in business efficiency. The World Competitiveness Report’s evaluation encompasses 336 indicators spanning economic, administrative, and social sectors, with the UAE achieving top global rankings across various indicators.

The UAE achieved top 10 rankings in more than 90 indicators worldwide, clinching 1st place in 11 areas like industrial disputes and labor force growth, 2nd place in nine areas such as tourism receipts and government policy adaptability, and 3rd place in six areas including immigration laws and city management. The UAE secured 4th place in 12 indicators, including consumer price inflation and overall productivity, and 5th place in 13 indicators such as GDP per capita and start-up procedures.

The report highlighted areas the UAE needs to enhance to avoid risking its competitiveness, including diversifying exports and transitioning away from oil dependency, integrating economic diversification with sustainability, leveraging AI tech while addressing ethical and regulatory concerns, and strengthening its resilience against climate change impacts.

Dubai Camel Racing Club gets new board

Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum formed a board for the Dubai Camel Racing Club, to be chaired by Sheikh Ahmed bin Mohammed bin Rashid Al Maktoum, Wam reports. The board’s members will include Atiq Salem Balarti Al Humairi, Rashid Mubarak Markhan Al Ketbi, Abdullah Ali bin Humaidan Al Falasi, Suhail Hamad Markhan Al Ketbi, and newly appointed CEO of the club, Ali Saeed Ali bin Saroud Al Mansouri.

The Dubai Ruler also issued a decree setting out the club’s objectives, responsibilities, organizational structure, and governance.

HSBC rolls out trading platform WorldTrader in UAE

CAPITAL MARKETS-

HSBC has debuted its global wealth trading platform WorldTrader in the UAE to offer its UAE-based customers with international investment options, according to a press release. The platform includes 77 stock exchanges across 25 markets, covering 80% of global stock market capitalisation, allowing the lender’s Wealth and Personal Banking (WPB) customers to trade equities, ETFs, and bonds as well as to invest in mutual funds and fixed income products. HSBC introduced the platform in the UAE as its first market, with plans to launch it later in select countries in the Middle East and Asia.

RETAIL-

Spinneys officially expands to KSA: Spinneys has opened its first store in Saudi Arabia at La Strada Yard, Riyadh, according to a press release (pdf) by the company. The new location spans 43,520 sqft, with in-house production capability for fresh goods. The company plans to open three more stores in Riyadh and Jeddah in 2024, and 12 stores in the rest of the Kingdom by 2028.

SECURITY-

Katim teams up with Thales to develop HF radio communication technologies: EDGE Group subsidiary Katim has inked a declaration of intent with the French defense company Thales to co-develop high-frequency radio communications solutions in the Emirates, according to a statement from Thales. The signing took place on the sidelines of the international defense expo Eurosatory.

SHIPPING-

Dubai firm’s tanker first to sail through Red Sea since January amid attacks: A liquefied natural gas (LNG) tanker owned by Dubai-based Lule One Services and managed by Dubai-based Nur Global Shipping traveled through the Red Sea last Tuesday, marking the first tanker to sail through the Bab al-Mandab strait since January after the Houthi attacks began in November, Reuters reports, citing ship tracking data from LSEG and Kpler.

The tanker — named Asya Energy — crossed the strait during the same week a vessel was sunk and “may soon become the first vessel to take the Red Sea passage since 12 January after waiting around the coast of Oman since mid-January,” Ana Subasic, natural gas and LNG analyst at data and analytics firm Kpler told the news outlet.

REAL ESTATE-

#1- Samana Developers unveils AED 855 mn Dubailand project: Dubai-based Samana Developers has launched Samana Ivy Gardens 2, a new AED 855 mn development in Dubailand, Arabian Business reports. The 35-story residential project will contain 843 units and is scheduled for delivery by November 2027.

#2- Stake joins the state-run REES initiative: The Dubai Land Department has added the real estate investment platform Stake to its Real Estate Evolution Space Initiative (REES) — which aims to attract proptech companies and support innovation in the sector — according to a statement from the authority.

About Stake: Established in 2021, the platform offers real estate investment options starting from AED 500 and allows investors to manage their transactions.

#3- Aldar Properties launches new residential project in Dubai: Abu Dhabi’s Aldar Properties has announced the soft launch of its most recent residential development in Dubai Verdes by Haven, which was developed in partnership with Dubai Holding, the company said in a statement. Verdes’ public launch is slated for 11 July, offering one-, two-, and three-bedroom apartments with prices starting from AED 990k.

PAYMENTS-

Abu Dhabi Islamic Bank (ADIB) has adopted ProgressSoft’s payment hub platform to ease remittance transfers, a press release reads. ADIB has collaborated with the Jordan-based payment solutions company to integrate cross-border transfers.

TRADE-

UAE + Czech boost trade ties: The federal export credit company Etihad Credit Ins. signed an agreement with the Czech Republic’s Export Guarantee and Ins. Corporation (EGAP) to establish a reins. framework, aimed at strengthening bilateral trade between the UAE and the Czech Republic, Wam reports. Under the agreement, both countries will collaborate to tackle “risks related to sovereign and quasi-sovereign debtors,” and provide credit solutions and ins. facilities for private sector debtors.

LOGISTICS-

Etihad Cargo adds new routes to Madrid: Etihad Cargo, the logistics and cargo arm of Etihad Airways, is launching two new flights to Madrid per week, Wam reports. The Boeing 777 freighter flights will add over 200 tonnes of cargo capacity for Europe, and will run between Abu Dhabi and Madrid. This will bring the total number of flights to Spain to 25 per week.

SPORTS-

UAE FA launches a funding program for tier 2 clubs: The UAE Football Association (UAE FA) has launched the Sports Excellence Funding Programme, with AED 12.5 mn earmarked annually, to provide “financial, technical, administrative, and logistical support” for clubs in the First Division League, the second tier in the Emirati football leagues, Wam reports.

AVIATION-

Flydubai adds more flights to Pakistan: Budget airline flydubai will run daily flights to Pakistan’s capital Islamabad and its second-largest city Lahore starting 1 July, Wam reports. The company has been operating flights to Pakistan since 2010, including to destinations like Faisalabad, Karachi, Multan, Quetta, and Sialkot.

Emirates to double daily flights to Amsterdam: Emirates will begin operating two daily flights to Amsterdam, up from one daily flight currently, starting 27 October, Simple Flying reports.

Emirates unveils AED 3.5 mn lounge in Paris: Airline Emirates inaugurated a AED 3.5 mn premium lounge at Paris’ Charles de Gaulle airport, located in Terminal 2C, according to a company statement. The lounge—which includes shower facilities, complimentary Wi-fI, and a selection of food and beverages—can accommodate up to 165 guests.

Sharjah to build Uganda’s third airport: The Sharjah Chamber of Commerce and Industry has inked an agreement with Uganda to build a new international airport for the East African country for an undisclosed sum, according to a statement by Ugandan President Yoweri Museveni office. Sharjah’s chamber is scheduled to commence construction next August, Reuters reports, citing Chairman Abdallah Sultan Al Owais.

FINANCE-

Wio Bank embeds finance services for SMEs: Abu Dhabi-based Wio Bank launched a new finance service on its digital banking application, Wio Business, targeting small and medium-sized enterprises (SMEs) in the UAE, Gulf News reports. The new service, dubbed Embedded Finance, allows businesses to link their accounts with selected software platforms— eliminating the need for third-party intermediaries—and automates bookkeeping processes, including the reconciliation of bank statements. It looks to streamline delivery and management of financial services for SMEs.

Mideast sovereign wealth fund flows to China up 2.2k% y-o-y in 2023

The world’s factory is catching the interest of Middle Eastern sovereign wealth funds in a big way: Middle East sovereign wealth funds poured some USD 2.3 bn into Chinese companies in 2023, Bloomberg reports, citing Hong Kong Monetary Authority external executive director Kenneth Hui. To put this in context, the influx of funds represents a 2.2k% y-o-y increase from the USD 100 mn China received in 2022.

When one door closes, another opens: The surge in China-bound funds from our region of the globe comes as the world’s second most populous country found itself increasingly cut off from funds from Europe and the US that had historically been an important source of finance. The EU and US hiked tariffs on Chinese imports in recent years in a bid to contain the country’s rise in sectors that much of the developed world sees as a threat to their own economies.

But wealth funds in the region have signaled that they’re not immune from US pressure: Alat, the USD 100 bn AI and advanced technology investment firm created by Saudi Arabia’s Public Investment Fund, made clear that it would divest from Chinese tech if requested to by the US, EnterpriseAM Saudi reported in May. “So far the requests have been to keep manufacturing and supply chains completely separate, but if the partnerships with China would become a problem for the US, we will divest,” Alat CEO Amit Midha told Bloomberg at the time. US officials have also reportedly asked Saudi to “choose between Chinese and American technology” as they develop a semiconductor industry that forms the backbone of AI technology.

AND- The UAE’s G42 struck earlier this year a partnership with Microsoft after turning its back on Chinese tech under heavy pressure from Washington, as we have previously noted.

MARKETS THIS MORNING-

Major Asian benchmarks are mixed this morning after yesterday’s Nvidia-led tech selloff on Wall Street. US equities futures are flat, and while most major European benchmarks look set to dip at the opening bell.

ADX	9,022	+0.1% (YTD: -5.8%)
DFM	4,000	-0.3% (YTD: +14.2%)
Nasdaq Dubai UAE20	3427	+0.4% (YTD: -10.8%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.05% o/n	5.54% 1 yr
TASI	11,697	-0.3% (YTD: -2.3%)
EGX30	26,902	-0.6% (YTD: +8.1%)
S&P 500	5,448	-0.3% (YTD: +14.2%)
FTSE 100	8,282	+0.5% (YTD: +7.1%)
Euro Stoxx 50	4,951	+0.9% (YTD: +9.5%)
Brent crude	USD 86.02	+0.9%
Natural gas (Nymex)	USD 2.82	+0.5%
Gold	USD 2,346.00	+0.6%
BTC	USD 59,504.00	-7.1% (YTD: +40.6%)

THE CLOSING BELL-

The ADX rose 0.1% yesterday on turnover of AED 945.78 mn. The index is down 5.8% YTD.

In the green: Abu Dhabi National Energy Company (+5.9%), Alef Education Holding (+5.2%) and Gulf Cement Company (+4.6%).

In the red: Aram Group (-10%), Gulf Medical Projects Company (-9.6%) and Fujairah Cements Industries (-9.3%).

Over on the DFM, the index closed down 0.3% on turnover of AED 355.38 mn. Meanwhile Nasdaq Dubai closed up 0.4%.

CORPORATE ACTIONS-

Dubai construction firm Drake & Scull was added to DFM’s general index, the sharia index, and industrial sector index yesterday, according to a statement.

REMEMBER- Drake & Scull re-listed its shares on DFM in May following a hiatus that began in 2018. Shares soared as much as 30% in trading before closing up 24% at AED 0.31. The firm was re-listed after it completed its restructuring after raising AED 450 mn in a capital increase, which saw the contractor write off over AED 4.18 bn in accumulated debt. The construction firm’s shares were suspended from trading on the back of excessive financial losses and reporting violations.

Crompton Saltini rebrands to Eden in the UAE: Luxury real estate brokerage Crompton Saltini is rebranding in the Emirates to Eden, with the goal of expanding the company beyond its ties to the names of the founders, a press release reads. The company adds that the rebranding does not imply a change in its core service.

Foreign Minister congratulates India’s FM on reappointment

Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan congratulated Subrahmanyam Jaishankar on his reappointment as India’s External Affairs Minister during a working dinner in Abu Dhabi, Wam writes. Both parties discussed strengthening bilateral trade ties, reviewing progress in trade, investment, education, and renewable energy. This comes as part of a state visit to review the comprehensive economic strategic agreement between India and the UAE.

Minister of State for Foreign Trade Thani Ahmed Al Zeyoudi met with the Mexican Governor of San Luis Potosí state, José Ricardo Gallardo Cardona, to discuss expanding bilateral cooperation and promoting non-oil trade between the UAE and Mexico, according to a statement.

CALENDAR

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.

Signposted to happen sometime in mid-August:

New regulations around telemarketing calls will go into effect

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

15 October (Tuesday): Deadline for the European Commission to make a decision on its probe into e&’s acquisition of PPF’s Eastern European assets.

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

30-1 November (Wednesday-Friday): World Cities Cultural Summit, Dubai.

29 October – 2 November (Tuesday-Saturday): Abu Dhabi Early Childhood Week, Abu Dhabi.

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.

18-20 November (Monday-Wednesday): Fastmarkets Middle East Iron & Steel 2024, Dubai.

23 November (Saturday): Wireless Festival Middle East, Etihad Park, 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.

8-12 December (Sunday-Thursday): International Desalination and Reuse Association World Congress, Adnec Centre Abu Dhabi.

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

9-12 December (Saturday-Thursday): Abu Dhabi Finance Week, 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.
TBD: The Middle East Electric Vehicle Show, Expo Center Sharjah.

Signposted to happen sometime in 2028:

Abu Dhabi to host the 47th Chess Olympiad

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