UAE-based Fertiglobe bags first ever green ammonia tender

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WHAT WE’RE TRACKING TODAY

THIS MORNING: US lawmakers call for probe into Microsoft’s partnership with G42 + FAB denies plans to acquire a stake in Yes Bank

Good morning, friends. We wrap the week with a packed issue, filled with a raft of updates on the debt and M&A front, and a big story in the world of renewables.

The big story? UAE-based urea and ammonia exporter Fertiglobe secured the first ever green ammonia tender to supply green ammonia to Germany from its plant in Egypt.

FACT CHECK-

First Abu Dhabi Bank “categorically” denied reports that it is pursuing the acquisition of a stake in India’s Yes Bank in an ADX disclosure (pdf) yesterday. Bloomberg had reported a day earlier that the lender is eyeing a USD 5 bn, 51% stake in the bank. Emirates NBD has also reportedly been vying for a stake in the Indian bank.

UPDATE-

Sharjah Islamic Bank (SIB)’s USD 500 mn sukuk issuance is now listed on Nasdaq Dubai, bringing the lender’s total sukuk listings on the bourse to USD 1.5 bn, according to the Dubai Media Office. The sukuk is the sixth issuance under SIB’s USD 3 bn Trust Certificate Issuance Program, launched in 2013.

ICYMI- SIB took a five-year USD 500 mn sukuk issuance to market last month, pricing it at a spread of 105 bps over US Treasuries on the back of robust investor demand. The issuance was 3x oversubscribed — drawing some USD 1.5 bn in orders from international investors — and features a 5.25% annual yield rate, with maturity set for 3 July 2029.

WATCH THIS SPACE-

#1- US lawmakers are calling for a probe into Microsoft-G42 partnership: Republican lawmakers are calling on the Biden administration to prepare a formal intelligence assessment of Microsoft’s USD 1.5 bn investment in state-owned AI firm G42 in a letter (pdf) addressed to the US National Security Advisor Jake Sullivan, citing concerns over the IHC-backed AI outfit’s ties to China.

The letter referred to the investment as one of the most “consequential US investments in the Middle East in decades,” and urged the administration to implement national safety safeguards, highlighting risks posed by transferring “highly sensitive, US-origin technology” and “[the US’] most critical AI technology,” without a proper regulatory framework. The congressmen asked for the assessment to be conducted before the partnership enters its second phase, which will involve the export of US technologies.

REFRESHER- In February, G42 was reported to have already sold all its stakes in all its investments in China — including a USD 100 mn stake in ByteDance — in a bid to reportedly appease US partners, culminating in Microsoft investing some USD 1.5 mn in G42. The second phase of the agreement entails Microsoft exporting large-scale AI components to the UAE, which will require licenses from the US government. Concerns that the US might pull the plug on the partnership have been swirling for weeks now, with Bloomberg recently saying that Pentagon officials are doubting G42’s commitment to fully divest from China.

The story was picked up by Bloomberg, Reuters, and the Financial Times.

#2- Fujairah Port is set to receive its first gasoline shipment from Total Energies in the coming days, state news agency Wam reports. The move comes after the French oil and gas multinational company moved its operations and petroleum activities to the emirate.

#3- The Abu Dhabi Global Market is reviewing its license fees in a bid to attract more firms and help make the transition for companies in Al Reem Island to the financial center easier, CEO of ADGM’s Registration Authority Hamad Al Mazrouei told Al Arabiya (watch, runtime: 3:15). The new fees will come as part of a wider incentive package that the ADGM will make public “soon,” Al Mazrouei said.

REMEMBER- The ADGM already waived registration fees for Reem Island businesses until November of this year as part of an incentive package aiming to facilitate their transition to the hub after Al Reem Island became part of its jurisdiction in November 2023 as part of its expansion. It also inked an MoU with the Human Resources and Emiratization Ministry to streamline work permit and license transfers.

#4- Amea Power to expand its investments in Egypt: Amea Power Chairman Hussein Al Nowais met with Egyptian Electricity and Renewable Energy Minister Mahmoud Esmat yesterday to discuss expanding the renewable energy company’s investments in Egypt, Wam reports. They addressed establishing new solar and wind energy projects with a potential total capacity of 2.5 GW, in a bid to up the share of renewable energy in Egypt’s electricity mix to more than 42% by 2030 and reduce dependency on fossil fuels.

Amea Power ❤️Egypt: Amea Power is currently working on 1 GW worth of projects in Egypt, including the 500 MW Abydos solar power plant — slated for completion in Aswan in September 2024 —- and a 500 MW Amotope wind power plant — scheduled to go live in Ras Ghareb by Summer 2025. Amea is also working on a 2.5 GW green hydrogen project in Egypt.

2.5 GW? We only know of one green hydrogen project Amea Power had agreed to develop in Egypt during Cop27, with a capacity of 1 GW.

DATA POINTS-

#1- The Central Bank’s monthly foreign assets increased in April to AED 750.29 bn, up from AED 731.62 bn in March, according to its April balance sheet (pdf). Gross bank assets inched up 1% to AED 4.3 tn, compared to AED 4.25 tn in March, the summary report stated (pdf). Gross credit also inched up 0.8% at the end of April to AED 2.06 tn.

#2- The Middle East is the new emerging market “favorite” for institutional investors, according to data gathered between 2022 and 2024 by investment data company Preqin, which showed interest from institutional investors in the region jumping to 65.5% in 2024 from 38.9% in 2022. The Middle East is outshining China and Southeast Asia as investors pivot towards regional diversification, according to Preqin’s findings.

Real estate and private equity are the alternative investments of choice: Nearly half of the surveyed investors this year allocated 20% or more of their assets under management to real estate — double the allocation in 2022. Investors are reducing their exposure to hedge funds and venture capital, which have both underperformed in the past few years.

Saudi Arabia is garnering a whopping 96.5% of interest from investors, with the UAE next in line at 41.4%, according to the survey.

#3- Dubai reduced the consumption of electricity 15.9% and water 12.4% in 2023, in comparison to a business-as-usual scenario where sustainable interventions are not implemented, Wam reports. Dubai’s green programs over the last five years helped achieve around AED 14.6 bn in financial savings. The emirate aims to achieve energy and water savings of at least 30% by 2030, and 50% by 2050.

#4- The number of m’naires in the UAE is expected to grow by 15% over the next five years, reaching 232.1k in 2028 from 202.2k today, according to investment banking company UBS’ 2024 Global Wealth Report (pdf). Some 6.7k m’naires are expected to move to the UAE this year, representing the highest net inflow of m’naires worldwide.

THE BIG STORY ABROAD-

It’s a mixed bag in the foreign press this morning, with most outlets leading with Joe Biden’s latest fumble as he plays host to the Nato summit amid widening concerns over his eligibility in the presidential race.

Biden mixed up Vice President Kamala Harris with Donald Trump, and Ukraine’s Volodymyr Zelenskiy with Vladimir Putin, during the summit, dealing another blow to his candidacy, which is losing more ground among Democrats.

He brushed his slip-ups aside and defiantly proclaimed he is the most qualified candidate to beat Trump and that he’s “got to finish the job.” Reuters is liveblogging the news conference.

IN THE BUSINESS PRESS- A couple of AI news are making the rounds:

#1- Microsoft and Apple’s decision to give up seats on OpenAI’s board was “subterfuge” in a bid to quell regulatory concerns over relationships between AI and large tech firms, co-executive of non-profit AI Now Institute Amba Kak wrote in a message to CNBC. “AI companies have strong financial incentives to avoid effective oversight, and we do not believe bespoke structures of corporate governance are sufficient to change this,” employees of the agency wrote.

#2- SoftBank has acquired struggling UK semiconductor startup Graphcore, which was valued at about USD 2.8 bn but suffered financial losses upon lackluster demand. (Bloomberg)

AND- It’s looking more likely for the US to pull the trigger on its next rate cut in September, after inflation fell more than expected to 3% in June.

The news made way for a “historically strange” day for stocks, with investors moving out of rallying tech stocks and snapping up other, smaller cap stocks, leaving the S&P 500 and Nasdaq down at market close.

CIRCLE YOUR CALENDAR-

AI office launches USD 150k challenge: The UAE is calling on Series A startups working in artificial intelligence (AI), cybersecurity, banking and financial services, customer services, financial technology, and environmental and social fields, to register for the newly launched AI Challenge.

The details: The challenge — which was created in partnership with the Office of AI, Digital Economy and Remote Work Applications, Mastercard Global Center for Advanced AI and Cyber Technology, and FIrst Abu Dhabi Bank — will hand out a USD 150k check to the final candidate and a chance to participate in Mastercard’s global events, including a program that offers mentorship. You can register for the challenge before 25 August here.

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

UAE-based Fertiglobe bags first green ammonia tender to supply green ammonia to Germany

UAE-based urea and ammonia exporter Fertiglobe secured a EUR 397 mn offtake agreement from the German government’s H2Global program to supply green ammonia to the EU from its Egyptian facilities between 2027 and 2033, following an auction, according to a statement (pdf). The contract, which will secure 10% of Germany’s annual ammonia needs, is the result of the first among a raft of global tenders to important green hydrogen derivatives.

The details: With a production cost of EUR 1k per ton, the agreement will see Fertiglobe export 19.5k tons of green ammonia in 2027, potentially scaling up output to a cumulative 397k by 2033. Fertiglobe will produce the green ammonia at its Ain Sokhna plant in Egypt, which it is developing as part of a consortium comprising Scatec, the Sovereign Fund of Egypt, and Orascom Construction.

Fertiglobe inked a 20-year offtake agreement with the consortium to provide the green hydrogen, which will be used as the raw material to produce the green ammonia at the plant, according to a statement.

About the plant: The plant kicked off its first phase in November 2022 and aims to produce some 13k tons of green hydrogen a year, which will be used to create 70k tons of green ammonia at Fertiglobe’s ammonia plants. 270 MW of solar and wind power plants will be installed to power the plant.

What’s next? The consortium expects to reach financial investment decision and financial close in 1H 2025.

The story got ink in the foreign press: Bloomberg | Reuters

UAE non-oil economy to slow to 5% in 2024 -Fitch Solutions

Growth in the UAE’s non-oil sector is expected to slow to 5% in 2024, from 6.2% in 2023, Asharq Business quotes Fitch Solutions MENA analyst Mariette Kas-Hanna as saying during a webinar. Kas-Hanna cited increasing borrowing costs as contributing to the slowdown, in addition to rising living costs driven by increasing rents in Dubai.

It’s not just us: Saudi Arabia is also expected to see the non-oil sector expand at a 2.9% clip this year, down from 4.4% in 2023, Kas-Hanna said.

This is higher than the World Bank’s forecast, but almost in line with official projections. The World Bank sees non-oil GDP growing 3.2% this year, buoyed by “strong performance in the tourism, real estate, construction, transportation, and manufacturing sectors.” The Central Bank of the UAE is more optimistic, saying it expects the sector to grow 5.4%, while Economy Minister Abdulla bin Touq Al Marri anticipates non-oil GDP to grow at a 4.9% clip in 2024.

Regional outlook: Fitch Solutions sees the Gulf region's GDP expanding 1.8% in 2024, up from 0.6% last year, before expanding 4.9% in 2025 on the back of a recovery in oil production following extended OPEC+ supply cuts. The World Bank previously lowered its 2024 MENA growth forecast to 2.8% due to continued oil production constraints.

Sharjah gov’t issues EUR 500 mn sustainability bonds

The Sharjah government has taken EUR 500 mn, 6.5-year sustainability bonds to market under its Global Medium Term Note Program, Zawya reports. The offer price for the issuance is yet to be decided, HSBC said in a notice to the London Stock Exchange, but a previous Reuters report said the emirate had set initial price guidance at around 220 bps over the mid-swap rate.

The issuance drew some EUR 1.5 bn in orders as of Thursday morning, Zawya quotes IFR as reporting.

The emirate plans to use the proceeds to finance and refinance “eligible expenditures” under its Sovereign Sustainable Financing Framework.

ADVISORS- Sharjah tapped Credit Agricole CIB, HSBC, IMI Intesa Sanpaolo, and JP Morgan as joint global coordinators on the issuance. HSBC acted as the stabilization coordinator and the sole sustainability structuring agent.

This is the second green bond issuance for the emirate this year: Sharjah closed its USD 750 mn 12-year USD-denominated senior unsecured sustainable bond issuance in March of this year, after tightening their price guidance from an initial spread of 235 basis points (bps) over US treasuries to around 195 bps. The issuance drew some USD 4 bn in orders.

ADGM publishes whistleblowing framework

ADGM strengthens transparency with whistleblowing framework: The Abu Dhabi Global Market (ADGM) published a new whistleblowing framework aiming to “sustain transparency, accountability and market integrity within the center,” according to a statement.

The framework outlines rules (pdf) that ADGM-authorized companies must implement as of 31 May, 2025, including:

Protection measures for good faith reporting of protected disclosures;
Providing safe channels for the reporting of suspected breaches;
Regular assessment of the effectiveness of the internal policies and procedures to ensure they remain up-to-date;
Establishing and maintaining written archival records of each protected disclosure, including supporting documents and details of investigations, assessments, and findings.

The rules detailed in the framework will apply to all companies regulated by the Financial Services Regulatory Authority, designated non-financial businesses or professions, and large firms operating within ADGM.

DP World could get EUR 50 mn from EBRD for Romanian port developments

EBRD mulls green loan for DP World’s Romania project: The European Bank for Reconstruction and Development (EBRD) is considering the extension of a EUR 50 mn loan to DP World via its subsidiary Constanta South Container Terminal to finance the electrification of Constanta port, according to a PSD document. The financing proposal is currently under evaluation with an approval date set for 11 September.

Where’s the money going? The electrification of the port’s terminal infrastructure will include new electrical networks and transformer points, railway lines, EVs, and charging stations in a bid to mitigate the effects of climate change, according to the document.

What we know: The total project cost is currently estimated at EUR 200 mn and will be co-financed by the EU’s Alternative Fuel Infrastructure Facility Programme (AFIF) with EBRD acting as implementing partner.

Big plans for Romania: DP World is channeling EUR 130 mn into three sites in Romania to boost cargo volumes by some 2 mn tonnes a year. The company has doubled its container shipping capacity at Constanta port as part of the project. Romania was the first European country targeted by DP World for expansion. DP World has operated in the country since 2004, and has shelled out upwards of EUR 250 mn in investments in the Eastern European state in the 20 years since.

Six UAE lenders named among top 25 in MENA

Six UAE banks made it to the Banker’s list of top 25 banks with highest capital in Mena: Emirates NBD, First Abu Dhabi Bank (FAB), Abu Dhabi Commercial Bank (ADCB), Dubai Islamic Bank (DIB), our friends at Mashreq, and Abu Dhabi Islamic Bank (ADIB) are among the top 25 banks with the highest capital in the Middle East, Al Khaleej reported, citing the results of a report by Banker Magazine listing the top 1k banks in the world. The ranking:

Emirates NBD came in 4th place with a capital of USD 26.3 bn;
FAB came in 5th with USD 25 bn;
ADCB is 6th with USD 16.2 bn;
DIB secured the 15th spot with USD 10.8 bn;
Our friends at Mashreq are in 22nd place with USD 6.8 bn;
ADIB is in 24th place with USD 5.9 bn.

Sharjah now has a media council + Bildco names new chairman

Deputy Ruler of Sharjah Sheikh Sultan bin Muhammad Qasimi will head the newly established Sharjah Media Council for a four-year term, Wam reported.

Abu Dhabi Deputy Ruler Sheikh Hamdan bin Zayed Al Nahyan is appointed as the new deputy chairman of the Presidential Court for Special Affairs with the rank of minister, Wam reported. Al Nahyan holds several other positions including chairman of the Environment Agency of Abu Dhabi and chairman of the Emirates Red Crescent

Abu Dhabi National Company for Building Materials (Bildco) has appointed Omran Al Hallami as chairman of the board, and Rasheed Ali Rasheed Al Omaira as vice chairman, according to a disclosure (pdf). Ali Rashid Nasser Al-Amira was also appointed managing director.

UltraTech closes Rak White Cement acquisition

M&A-

Indian Cement Manufacturer UltraTech completed its acquisition of an additional 25% stake in Ras Al Khaimah White Cement (Rak White Cement) — equivalent to 133 mn shares — after meeting the conditions and requirements of the sale offer, according to a bourse disclosure (pdf). The additional stake purchase brings Ultratech’s total stake in Rak White Cement to 54%, equivalent to 272 mn shares.

ICYMI- Ultratech already owned a 29% stake in Rak White Cement, which it acquired in 2022 as part of a plan to expand the cement manufacturer’s operations locally and globally, and to introduce new products to Rak Cement’s production portfolio.

DEBT-

Fitch Ratings upgraded Abu Dhabi Future Energy Company’s (Masdar) long term foreign and local currency issuer default ratings to AA- with a stable outlook, from A+ previously, it said in a statement. The agency cited support from the Abu Dhabi government as the reason for the upgrade.

ENERGY-

#1- Adnoc autonomizes well control in offshore Nasr field: The Abu Dhabi National Oil Company (Adnoc) has deployed AIQ’s AI-powered RoboWell autonomous well-control solution across 10 wells in its offshore Nasr field, with plans to expand the technology to over 300 wells in Adnoc’s offshore and onshore operations within the year, according to a statement. The move comes as the oil giant looks to ramp up operational efficiency and reliability in energy supply.

Not Adnoc’s first time adopting RoboWell: Adnoc previously used RoboWell for its first smart field, dubbed NEB field, in 2023. The technology has optimized gas lift consumption by up to 30% and increased operating efficiency by 5%.

#2- Sewa to connect natural gas to Dibba Al-Hisn by year-end: The Sharjah Electricity, Water and Gas Authority (Sewa) is set to complete its AED 31 mn project to introduce natural gas services to the Dibba Al-Hisn city by the end of 2024, Wam reports. Expected to benefit 17k residents, the project includes building a gas storage facility, laying a 84km pipeline in four phases to distribute the gas, and connecting the gas to residences internally.

REAL ESTATE-

Iman Real Estate Development has broken ground on the AED 700 mn mixed-use development project One Park Central in Jumeirah Village Circle, according to a press release. The project will have 482 residential apartments, 38 commercial units, six retail spaces, five parking levels, 23 residential floors, and 60 recreational facilities including fitness and wellness facilities. The project is scheduled for completion in 2Q 2027.

STARTUPS-

E-hailing taxi startup Hala expands to Egypt: Hala, founded in 2019 by Careem and the Roads and Transport Authority (RTA) in Dubai, signed an MoU with MwaslaTech to expand into Egypt, according to a press release. The partnership will introduce advanced mobility solutions in Egypt, including in the New Administrative Capital and other cities.

ARBITRATION-

Ajman overhauls arbitration body: The emirate of Ajman has established the Ajman Arbitration Centre, aimed at offering alternative dispute resolutions for the emirate’s financial and business sectors, Wam reports. Formerly known as the “Ajman Centre for Commercial Conciliation and Arbitration,” the new center’s mandate includes increasing arbitration awareness, enhancing local expertise, and providing dispute resolution services. Existing arbitration agreements and processes will not be nullified and will remain valid under the mandate of the new body.

PAYMENTS-

Network + Mastercard enhance commercial payment digitization: Dubai-based payments provider Network International has introduced new business payments solutions in partnership with Mastercard tailored for UAE-based businesses and travel industry firms, according to a press release. Under the partnership, Network will offer virtual card and payment card products, as well as digital expense management services, geared towards enhancing corporate clients’ payment security, streamlining their financial operations, and improving their cashflow.

TRADE-

Ras Al Khaimah + Argentina to boost private-sector cooperation: Ras Al Khaimah Chamber of Commerce and the Argentine Chamber of Commerce and Services signed an agreement to encourage private-sector trade and joint investments between the emirate and Argentina, Wam reported.The partnership also aims to boost scientific and technical relations between the two sides.

BANKING-

Ajman Bank signed an MoU with Visa to launch a new credit card aimed at supporting small and medium enterprises and commercial projects in the UAE, according to a statement. The card — called the Visa AccelRight Business Card — will help businesses manage expenses and working capital requirements. It will also have an option to separate business and personal expenses to smooth account settlement, and will simplify the payment processes for taxes while integrating a system to protect against unauthorized transactions, Al Khaleej reports.

AVIATION-

Emarat to supply Emirates’ cargo flights with fuel at Al Maktoum Airport: Fuel distributor Emirates General Petroleum Corporation (Emarat) inked an agreement with Emirates Airline Group to provide the airline with aviation fuel for its cargo operations at Al Maktoum International Airport, Wam reports.

SOCIAL SUPPORT-

Abu Dhabi to get a child center to boost childcare: Abu Dhabi Early Childhood Authority, the Family Care Authority and the Development and Fallen Heroes’ Affairs signed a service level agreement and an MoU with four Abu Dhabi based entities to establish a child center in a bid to boost the safety and well being of children in the emirate, according to the Abu Dhabi Media Office. The center will provide services such as social and psychological support, medical examinations, care for at-risk children, and early detection and intervention for diseases.

LOGISTICS-

Belgium-based dutyfree retail distributor Overseas Distribution Company (ODC) is launching a commercial and logistic office in Dubai, headed by Paul Murray (LinkedIn) as CEO, according to Seatrade Cruise News. The opening of the new office is expected to be completed in the coming months, ODC’s commercial director Manuel Demaerel said. Murray — who will be officially appointed next month — has over 25 years of experience working within the travel retail industry, including 15 years as head of travel retail at Maritime and Mercantile International in Dubai.

London introduces biggest capital rules overhaul in three decades

UK rolls out new listing rules: British regulators have pulled the trigger on the biggest overhaul of listing rules for London-listed companies in three decades, as it looks to breathe new life into capital markets amid increased international competition and investment outflows, the UK’s Financial Conduct Authority said in a statement. The new rules — which will take effect from 29 July — come as part of a wider package of reforms spearheaded by the Conservative party and expected to continue under the newly elected Labour administration.

The rule changes come as the UK looks to attract more tech firms, which have tended to go to the US where there is a dual-class structure allowing investors to maintain voting rights and control regardless of changes in the shareholding structure, the Financial Times reports. This makes it easier for investors like private equity firms and venture capitalists to maintain control of their investments post-listing.

The details: Investment groups such as private equity firms and VCs can hold supervoting rights for up to 10 years, with sovereign wealth funds allowed an even longer period of validity for the rights.

A boon for Middle East investors? The salmon-colored paper notes that the flexibility for sovereign wealth funds to invest in firms and have supervoting rights will encourage Middle East investors — who already have a lot of interest in the country’s capital markets — to list firms there.

Other changes include the removal of “premium” and “standard” categories for listings, each of which had separate requirements, and unifying and simplifying all listings’ eligibility criteria, according to the FCA.

MARKETS THIS MORNING-

Asian markets are mixed as traders mull US inflation data and the possibility of state intervention in the JPY, which strengthened against the USD early this morning. The Nikkei ended its streak of new highs with a nearly 2% dip, while the Kospi was down 1.3% at dispatch time. The Hang Seng and Shanghai indices are in the green.

Wall Street futures are flat after an unusual day that saw the S&P 500 log its worst session since April, while European futures indicate a strong open.

ADX	9,151	+0.1% (YTD: -4.5%)
DFM	4,091	+0.3% (YTD: +0.8%)
Nasdaq Dubai UAE20	3,527	+0.4% (YTD: -8.2%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.0% o/n	5.2% 1 yr
TASI	11,792	+0.1% (YTD: -1.5%)
EGX30	28,288	-0.6% (YTD: +13.6%)
S&P 500	5,585	-0.8% (YTD: +17.1%)
FTSE 100	8,223	+0.4% (YTD: +6.3%)
Euro Stoxx 50	4,976	+0.4% (YTD: +10.1%)
Brent crude	USD 85.69	+0.3%
Natural gas (Nymex)	USD 2.27	+0.2%
Gold	USD 2,418.90	-0.1%
BTC	USD 57,220	+0.1% (YTD: +29.5%)

THE CLOSING BELL-

The DFM rose 0.3% yesterday on turnover of AED 227 mn. The index is up 0.8% YTD.

In the green: Al Firdous Holdings (+4.3%), Agility (+3.1%) and Amlak Finance (+2.7%).

In the red: Al Salam Sudan (-8.2%), Sukoon Ins. (-5.2%) and Islamic Arab Ins. Company (-3.4%).

Over on the ADX, the index closed up 0.1% on turnover of AED 1.1 bn. Meanwhile Nasdaq Dubai rose 0.4%

CORPORATE ACTIONS-

Alpha Dhabi to get larger stake in NCTH: Abu Dhabi’s tourism promotion firm National Corporation for Tourism & Hotels (NCTH) approved an increase in Alpha Dhabi ’s stake in the company by issuing 1.27 bn shares to be offered at AED 1 apiece, up from 899 mn shares in exchange for acquiring three Alpha Dhabi-owned hotel businesses, according to an ADX disclosure (pdf). The new shares will be issued after NCTH completes a AED 2.17 bn capital increase to proceed with the acquisition of Alpha Dhabi’s businesses, which include ADH Hospitality, Murban BVI Holding, and Hill View Resorts in the Seychelles.

What changed? Alpha Dhabi was initially set to receive 1.25 bn new shares following NCTH’s capital increase to AED 2.15 bn.

Background: The transaction was first revealed in March, with Alpha Dhabi’s shareholders approving the asset sale in June. Last year, Alpha Dhabi acquired a 36.4% stake in NCTH for AED 730 mn, becoming its largest single stakeholder. The companies that will be acquired — ADH Hospitality, Murban BVI Holding, and Hill View Resorts Seychelles — were originally part of Murban’s asset portfolio, but were incorporated into Alpha Dhabi’s after it acquired Murban back in 2021.

UAE +Japan to boost cooperation for food security

UAE Climate Change and Environment Minister Amna bint Abdullah Al Dahak met with Japan’s Agriculture, Forestry, and Fisheries Minister Sakamoto Tetsushi, to discuss bilateral cooperation to boost food security, according to a Ministry X post. The two discussed furthering their collaborative efforts in sustainable agriculture, raising efficiency in fish farms, and innovative ways to enhance national food security and food trade.

The UAE also inked an MoU with Japan to establish a framework of cooperation on intellectual property, including patents, utility models, and industrial designs, at the World Intellectual Property Organization (WIPO) in Geneva, state news agency Wam reports.

UAE in talks with Poland to strengthen economic cooperation: The UAE had its first Strategic Financial Dialogue with Poland in Warsaw, led by Finance Ministry Undersecretary Younis Haji Al Khoori, Wam reports. The parties discussed financial and economic cooperation, and considered new avenues for partnership in the renewable energy and banking sectors.

My Morning Routine: Renoy Kundukulam, CEO of Finmark Capital

Renoy Kundukulam, CEO of Finmark Capital: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Renoy Kundukulam (LinkedIn), CEO of Finmark Capital. Edited excerpts from our conversation:

I’m a career banker who would like to be remembered for having created a legacy in terms of what I have done in the industry here in the region. I was assigned the task of setting up the wealth management unit for Noor Bank, an Islamic bank which got merged into Dubai Islamic Bank. It was a small local bank, almost seven or eight years old by then. Before then, I used to head the wealth management business for Standard Chartered, managing the Levant region, which is the UAE, Jordan, Qatar, Lebanon, Oman and Bahrain.

I can proudly say that in the six year journey that I had with Noor Bank before I moved into DIB after the merger, we had created a brand name within the wealth management fraternity in the country that was reckoned with. The big established Islamic banks, like Abu Dhabi Islamic Bank or Emirates Islamic Bank or Dubai Islamic Bank would really envy us in terms of the kind of products and innovative solutions we would bring to the table. There were a lot of barriers that were broken. I transformed it from a loss making business in 2013 — with AED 13 mn of losses in six years — to one with a topline of about AED 120 mn and a bottom line of AED 40 mn.

After the merger, I convinced a set of people within my organization to see the vision I had for Finmark. It was a covid baby — we decided to jump into it at the peak of the pandemic. We took that bold call at that point in time and were able to convince investors to support us. With the hard work of people today, I can say we’ve had three full financial years and every year, our bottom line has been in the black. We made profits right from the first year of operations.

When I was at Noor Bank, I had teams traveling to markets like Switzerland, Pakistan, Africa, and the GCC. What we found was that the business of wealth management via an intermediary is pretty huge. Of the 3 tn business in Switzerland, almost 45% of the business happens through what we call independent asset managers or external asset managers. We used to visit these intermediaries and they would bring their clients to us — because I was on the other side of the fence at that point in time — and they said, we manage client wealth and we want to diversify geographically for the client, as well as from an asset class perspective.

We are in essence an intermediary, or a multifamily office. We sit between the high net worth client and the bank. We’re all ex-bankers; most are certified investment consultants. We service the client and we provide advisory for products like stock, bonds, mutual funds, ETFs, derivative solutions, warrants, options, or even alternative investment options. We partnered with about nine different institutions across various geographies like Switzerland, Singapore, UAE, Mauritius. With the single point contact being the UAE, you can access the world in terms of where you would want your portfolio or your money to be. Our client doesn't have to visit any of these jurisdictions to get things done; we make it happen and we open and manage the account.

We have a system where there are 17 different investment banks which are plugged into the platform, sort of like an Amazon or Booking.com, and the client gets to choose where it can get the best pricing and product. For example, if I were to bank with Citibank, I would see Citibank’s pricing. But this option allows you to buy a product from any bank and custodize with your bank. We offer that value of negotiating with the bank and finding our clients the best product. We also offer continuity, especially for clients in Africa who see banks close down. We can simply move the portfolio to another bank we’re partnered with.

We also offer legacy planning for our clients, and capital advisory for lending solutions like trade finance, bridge or mezzanine finance, for corporates looking for short-term financing needs.

Our sweet spot is to look at clients with a liquid net worth of between USD 2-20 mn. We believe that these clients are disserviced at private banks, which usually like to focus on clients with a net worth of USD 25 mn and upward, and don’t have the expertise or knowledge to cater to this type of client. 70% of our clients are resident clients, and 30% are non-resident, mostly from the region, as well as Africa, Asia, and Europe.

I meet up with the HR manager once a week to understand what kind of administrative aspect needs to be looked at; employee engagement, plans to take the team out, etc. I also focus a lot on our social media marketing. The third element is sitting with the compliance team once a week to understand the status of the periodic review, how many cases we are getting, etc.

I also sit with the portfolio analyst to discuss client portfolios, issues, etc, and with the sales team. Then I sit with the service team to understand in charge of our pipeline for bank partnerships, and I meet with the top management, the head of sales and my CIO.

I also meet with people in the industry, people like me, unit heads and relationship managers to gauge any opportunities in the market. For example, we identified FX as an opportunity which is missing in our current scheme of business, so we have now applied for the license to be able to provide that service. We've also applied for an ins. intermediary license.

My morning routine is probably a bit of a disappointment [laughs]. I'm not a morning person at all. I start my day a little late, and come into the office around 9:30. I hit the gym three days a week with my trainer in the morning.

When I come into the office, I look at my schedule. My week is always scheduled early on, with weekly meetings, board meetings, and town halls all penciled in. I check if there are any urgent emails that I need to reply to, and then if I'm meeting some people during the day, I would have my meetings. I’m engaged with the team during the day; it's an open door policy. Anybody can walk in at any time.

I'm always available for client calls or discussions. Any client that is getting onboarded, I ensure that I myself go through the entire KYC before I approve it. I don't just let compliance handle it. Towards the end of the day is when I pick up Financial Times or longer reads on the markets, when I know that most of the people from my office have gone. One thing I make sure I always do before I leave my office is not to leave any unread emails.

I wind down at around 7:30 in the evening. I have my dinners at eight and then go for a walk at around 10, and then watch something on TV or Netflix and retire around 12.

I feel the idea of a work life balance is a bit of a myth, because it’s presented as something like a yin yang or, or a hero-villain kind of thing. When life is the hero, you are essentially saying work is a villain, which is not the case. The terminology is self-defeating. If I'm able to enjoy the work that I do, that is part of my life.

I have a hunger in terms of what I want to do on the professional side; I know I could probably do a lot more, whether that’s both growing this business or looking at what else I can do. On the personal side, I have liked the fact that I've been able to be more fit than what I was a few years back, so I want to work continuously on that.

I'm also working out the digital aspect of wealth management, because scalability is very important. The tech adaptation aspect in this industry is not as simple and straightforward as in others. It's a highly engaged model; you need advisory and not everything would be easily available online, so it’s that juncture that I'm trying to figure out. What is that next big thing that will be talked about maybe say five or 10 years from now? That thought keeps me awake at night sometimes.

I’m currently reading Atomic Habits, which I find quite interesting. It tells you to establish a system, not just a goal, because then you have a routine that becomes your true identity, instead of just an end goal to achieve.

One piece of advice that I tend to carry with me is to always question the status quo. I will always challenge my team and urge them to aim high. A lot of people I worked with told me they used to be skeptical about some of the steps I took, but now they tell me to keep doing that and to trust my intuition and break barriers.

CALENDAR

JULY

13-18 July (Saturday-Thursday): Asia-Pacific Accreditation Cooperation, Dubai.

31 July (Wednesday): Deadline for Sidara to submit another takeover bid to Wood Group.

AUGUST

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

20-21 August (Tuesday-Wednesday): The World ESG Summit, Dubai.

21-22 August (Wednesday-Thursday): Rex Fuels Global Expo & Conference 2024- Bitumen, Petrochemicals & Products, Dubai.

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

25 August (Sunday): Deadline to register for the AI Challenge.

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.

10-11 September (Tuesday-Wednesday): MENA PPP forum, Jumeirah Emirates Towers, Dubai.

10-11 September (Tuesday-Wednesday): MENA District Cooling Projects & MENA Cool Forum, Grand Hyatt Dubai, Dubai Healthcare City, Dubai.

11-12 September (Wednesday-Thursday): MENA oil and gas digitization conference, Abu Dhabi.

16-18 September (Monday-Wednesday): World Utilities Congress, Abu Dhabi.

23-25 September (Monday-Wednesday): WorldFreezonesOrganization’s Annual International Conference and Exhibition, Dubai.

25-26 September (Wednesday-Thursday): Green Steel Summit, Dubai, UAE.

28-30 September (Saturday-Monday): World Association of Nuclear Operators (WANO) Biennial General Meeting, Abu Dhabi.

OCTOBER

1-3 October (Tuesday-Thursday): Water, Energy and Environment Technology Exhibition, Dubai.

2-3 October (Wednesday-Thursday): The World Green Economy Summit, World Trade Center Dubai.

7-8 October (Monday-Tuesday): Forex expo, World Trade Center, Dubai.

8-10 October (Tuesday-Thursday): The Global Rail Transport Infrastructure Exhibition and Conference(Global Rail), Abu Dhabi.

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.

21-22 October (Monday-Tuesday): Port Development MEA Forum, Dubai.

21-22 October (Monday-Tuesday): Roads, Bridges, Tunnels MENA Conference, Dubai.

21-22 October (Monday-Tuesday): The Alternative Investment Summit, Dubai.

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

26-27 October (Saturday-Sunday): International Conference on Tourism, Transport, and Logistics, Dubai.

28-29 October (Monday-Tuesday): MENA Climate Proof Forum, Dubai.

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

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

NOVEMBER

4-7 November (Wednesday-Saturday): ADIPEC, Abu Dhabi.

4-7 November (Wednesday-Saturday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi.

4-7 November (Wednesday-Saturday): ADIPEC Decarbonisation Accelerator, Abu Dhabi.

6 November (Friday): World Finance Forum, Dubai.

11 November (Monday): Dubai Diamond Conference, Jafza One Convention Centre, Dubai.

11-12 November (Monday-Tuesday): META Cinema Forum, Dubai.

11-14 November (Monday-Thursday): Abu Dhabi International Petroleum Exhibition & Conference, Abu Dhabi.

11-14 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi.

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

20-22 November (Wednesday-Friday): Xpanse Abu Dhabi, Adnec Centre, Abu Dhabi

22-23 November (Friday-Saturday): Global Meet on Electronics & Electrical Engineering (GMEEE), Dubai.

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

26-27 November (Tuesday-Wednesday) Global Food Security Summit, Adnec Centre Abu Dhabi.

27-28 November (Wednesday-Thursday): RAK Energy Summit, Al Hamra International Exhibition and Conference Centre, Ras Al Khaimah.

Signposted to happen ahead of ADIPEC:

Changemakers Majlis, Abu Dhabi.

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.

10-12 December (Tuesday-Thursday): Middle East Investor Relations Association (MEIRA), Conrad Abu Dhabi Etihad Towers Hotel, Abu Dhabi.

JANUARY 2025

14-16 January (Tuesday-Thursday): World Energy Summit, Abu Dhabi.

FEBRUARY 2025

24-25 February (Monday-Tuesday): 3rd World Passenger Experience Forum, Dubai.

24-26 February (Monday-Wednesday): Connecting Hydrogen MENA, Dubai.

APRIL 2025

16-17 April: Global Ports Forum, Dubai.

OCTOBER 2025

27-29 October (Monday-Wednesday): Asia Pacific Cities Summit, Dubai Exhibition Centre.

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.
TBD: e& will complete Adnoc’s private 5G network.

Signposted to happen sometime in 2028:

Abu Dhabi to host the 47th Chess Olympiad.

Signposted to happen sometime in 2029:

Dubai to host the International Conference on Computer Vision.

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