Trump Tower is coming to Dubai

1

WHAT WE’RE TRACKING TODAY

THIS MORNING: UAE left mostly unscathed by global tech outage + Joe Biden drops out of presidential race

Good morning, wonderful people. It’s been a very eventful few days since we last wrote to you, with a global tech outage, a massive upending of the US presidential race, and tons of investment, debt, and IPO updates here at home. Read on for everything you’ve missed.

We have a mixed bag of news, including Trump Tower coming to Dubai, Masdar’s USD 1 bn green bond issuance, our friends at Mashreq pledging AED 1 bn to industry, and a JV between Mawarid and Plenty to build five indoor farms in the region.

WEATHER- The mercury peaks at 40°C today in Dubai, before hitting an overnight low of 34°C. Things are similar in Abu Dhabi, where temperatures will also hit 40°C before cooling to an overnight low of 33°C.

UAE left (mostly) unscathed by Microsoft outage: The global IT outage taking place on Friday and leaving “blue screens of death” everywhere left some UAE government online services affected, while the General Civil Aviation Authority (GCAA) logged “minor impacts on the operation of the country's airports and airlines,” with “minor delays … reported in the check-in processes for a limited number of flights,” Khaleej Times reports separately. An alternative system used by the airlines allowed the check-in operations to resume normally, the GCCA said.

Businesses, companies, and residents took the hit: “It was not a cyberattack but businesses and companies were heavily affected. Residents also felt the impact,” Women in Cybersecurity Middle East founding partner Irene Corpuz told Khaleej Times, adding that “the card payment system crashed in some stores and not everyone is carrying cash nowadays.”

ICYMI- A routine software update pushed by global cybersecurity firm CrowdStrike to its Falcon Sensor software threw some 8.5 mn machines running Microsoft Windows into boot loops. Airlines and some other companies were hit particularly hard, with many airports and airlines around the world grounding flights and doing manual paperwork. Some broadcasters were off the air, hospitals canceled procedures, and banking services were offline in many countries, Bloomberg reports. Emergency services were also hit in some countries.

The status now: Things are starting to unsnarl as technicians push out fixes, Reuters notes. Windows users who have been impacted have to reboot their machines and manually delete CrowdStrike’s botched update — a process that requires hands-on access to each device, according to Financial Times. It’s a process that could take days for businesses with large fleets of impacted devices and not enough IT staff, experts told FT.

IPO WATCH-

Amanat plans to proceed with planned IPO of its education unit after receiving the necessary regulatory approvals and engaging potential financial, legal, and commercial advisors, the company said in a DFM disclosure(pdf).

Refresher: Amanat said in May that it plans to carve out its education platform into its own holding company and tap advisors to list it on a GCC stock exchange, without specifying where it would list it or the size or value of the potential stake sale.

REMEMBER- Amanat also reportedly tapped EFG Hermes and First Abu Dhabi Bank for a listing of its healthcare unit as soon as this year that could potentially raise some USD 200 mn.

WATCH THIS SPACE-

Fertiglobe to move forward with green ammonia export after final decision on Egyptian plant: UAE-based urea and ammonia exporter Fertiglobe’s agreement to export green ammonia from its Egyptian plant to Europe will hinge on reaching financial investment decision for the Ain Sokhna green ammonia plant, Asharq Business reports, citing a company official. He clarified that the supply contract is non-binding and depends on finalizing the investment agreement with the consortium developing the plant, with a decision anticipated in 1H 2025.

REMEMBER-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, which it is developing as part of a consortium comprising Scatec, the Sovereign Fund of Egypt, and Orascom Construction.

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.

DATA POINTS-

#1- DFM achieves longest weekly gain streak in three years: The Dubai Financial Market Index rose 0.28% on Friday, crossing the 4.1k-point mark and marking a 1.9% increase over five sessions — the longest weekly gain streak in three years, Al Bayan reports.

THE BIG STORY ABROAD-

US President Joe Biden has ended his reelection campaign, releasing a statement on X saying that the decision is “in the best interest of [his] party and the country” and adding that he will “focus solely on fulfilling [his] duties as President for the remainder of [his] term.”

He quickly endorsed Vice President Kamala Harris, saying his selection of Harris as his running mate in 2020 was “the best decision [he’s] made.” Harris soon after expressed her “intention to earn and win this nomination” in an X post.

The narrative this morning is that Democrats are closing ranks around Harris as their candidate. She has built-in advantages: Because she’s already on the ticket, she’ll inherit the Biden-Harris campaign’s USD 96 mn war chest. Several of the figures tipped as potential Biden successors have already backed her, including North Carolina Governor Roy Cooper, California Governor Gavin Newsom, and Transport Secretary and 2020 presidential hopeful Pete Buttigieg, Reuters reports. As of dispatch time, some 117 democrats have rallied behind Harris, according to a WaPo tracker, including Democratic party chairs from all states

But she could still face a challenge at the Democratic National Convention, scheduled for 19 August in Chicago. Some are still calling for an open primary where anyone can throw their hat in the ring.

Unchartered territory: This is the first time since 1968 that a sitting president has not run for re-election and a candidate is selected outside of primaries and caucuses.

What happened? Biden made the decision and pushed his letter out on social media before telling most on his team. He made the move after a long meeting with a very small handful of trusted advisors. Want the inside story? Reuters | Politico | New York Times | Axios have more.

Trump has already spoken out, saying he thinks Harris will be “easier to beat” than Biden.

CLOSER TO HOME- Israel said it shot down a missile launched from Yemen yesterday, in a continuation of escalated violence from the Houthis after Israel’s first public strike against the Yemeni Houthis. The Houthis have so far launched attacks on Tel Aviv and Eilat, and have vowed to resume attacks on Israel.

ALSO HAPPENING OVER THE WEEKEND- The International Court of Justice has ruled that Israel’s occupation of Palestinian territory is unlawful and that its actions and policies are “tantamount to the crime of apartheid," the court said in its latest non-binding opinion (pdf)

Little wonder, then that geopolitical tensions are now topping sovereign wealth funds’ and central banks’ concerns for the coming decade, trumping inflation, according to a survey.

HAPPENING THIS WEEK-

The World Trade Organization will hold a general meeting in Geneva starting today and the Bank of Canada will meet tomorrow to review interest rates. Canada was the first G7 economy to cut interest rates in the current cycle.

Benjamin Netanyahu is in Washington tomorrow and the opening ceremonies for the 2024 Paris Olympic Games take place on Friday.

CIRCLE YOUR CALENDAR-

The World Green Economy Summit is set to take place on 2-3 October at the Dubai World Trade Centre. Organized by the Dubai Supreme Council of Energy, DEWA, and World Green Economy Organization, the summit will discuss decarbonization, clean energy, climate finance, and the circular economy to support the UN's Sustainable Development Goals for 2030.

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

Dar Global to develop Trump Tower Dubai

Dubai’s getting its very own Trump Tower: Saudi builder Dar Global and The Trump Organization have partnered up to develop Trump Tower Dubai, according to a press release. The new development will include a luxury hotel and Trump-branded residential units, with details on location and design expected by the end of the year. Financial details were not disclosed.

This is not the Trump Organization's first foray into Dubai: It currently operates a golf course in Dubai in partnership with real estate developer Damac.

This is the Trump Organization’s third venture in the region with Dar Global. Earlier this month, they announced a Trump Tower in Jeddah and unveiled a USD 500 mn Trump International Hotel project in Oman.

ICYMI-The Trump Organization is seeking more real estate in the region, Donald Trump’s son Eric told the Financial Times earlier. “This region has explosive growth, and that’s not stopping anytime soon.”

It’s also one of many luxury-branded tower projects planned in the emirate: Mercedez and Binghatti are set to complete a USD 1 bn tower in 2026, while Mered is developing the world’s tallest apartment building in partnership with Pininfarina. Arada is also developing an Armani-branded residence, while the Bulgari Lighthouse — which saw the sale of the most expensive apartment for AED 410 mn — is also set for completion in 2027.

Masdar raises USD 1 bn in second green bond issuance

State-owned renewable energy developer Masdar raised USD 1 bn in its second green bond issuance, according to a press release(pdf). The issuance consisted of two tranches worth USD 500 mn each, with five- and 10-year tenors, carrying yields of 4.875% and 5.25%, according to the statement. In line with Masdar's corporate credit ratings, this second issuance was rated AA- by Fitch and A2 by Moody's.

REMEMBER- Fitch recently upgraded Masdar's credit rating one notch to 'AA-', stable outlook, recognizing the company's financial strength and the support from its shareholders, the latter evidenced by their significant contributions to fund Masdar's growth ambitions.

The issuance saw strong demand, booking USD 4.6 bn in orders with a 4.6x oversubscription rate. Some 70% of the allocation went to international investors with the balance going to MENA investors.

We knew this was in the works: Masdar said in April that it was planning to take a green bond issuance worth between USD 750 mn and 1 bn to market this year to secure funding for its renewable projects in Central Asia, specifically in Uzbekistan and Azerbaijan. This comes as part of a USD 3 bn bonds program aimed at funding clean energy initiatives in the UAE and globally.

Background: The energy giant raised USD 750 mn last year in its debut green bond sale, which it listed on both the London Stock Exchange and the ADX. The bonds — which were 5.6x oversubscribed — were priced at 115 basis points over US treasuries from an initial guidance of around 150 bps over the same benchmark.

ADVISORS: HSBC, Abu Dhabi Commercial Bank, Citigroup, Credit Agricole, First Abu Dhabi Bank (FAB), Mitsubishi UFJ Financial Group, Natixis, and Standard Chartered Bank acted as joint lead managers and bookrunners.

BACKGROUND- The regional sustainable debt market has been on a tear this year: UAE’s Sharjah government issued EUR 500 mn in sustainability bonds, while Kuwait’s Warba Bank issued USD 500 mn green sukuk, and Qatar’s USD 2.5 green bond attracted USD 14 bn in orders. Al Rajhi also raised USD 1 bn from a 5-year sustainable sukuk sale in March. Meanwhile, Qatar’s QIIB listed USD 500 mn sustainable sukuk issuance on the London Stock Exchange in January, and the UAE sovereign fund Mubadala listed USD 4.5 bn and AED 750 mn green bonds on the ADX.

IN OTHER DEBT NEWS-

The National Bank of Ras Al Khaimah (RAKBank) issued a USD 600 mn, five-year EUR Medium-Term Note bond, under its Social Finance Framework, which outlines the use of funds for supporting micro, small, and medium enterprise customers, it said in a statement on Friday. The issuance was priced at a spread of 135 bps over US treasuries — tightened by 35 bps, on the back of “very strong demand and investor interest.” It is the first ever public social bond in the GCC.

The issuance was 3x oversubscribed, allowing the lender to upsize the bond to USD 600 mn. It features a 5.375% annual yield rate, with a yield to maturity of 5.439%.

Mashreq pledges another AED 1 bn for local industry

Our friends at Mashreq are allocating an additional AED 1 bn in financing for the industrial sector, according to a statement. The investment marks an extension of Mashreq’s ongoing partnership with the Industry Ministry, which saw Mashreq previously commit AED 1 bn during the Make it in the Emirates 2023 Forum.

Where the funds are going: The AED 1 bn is geared at offering additional financing solutions for industrial firms in the UAE, as part of the Make it in the Emirates initiative, and in line with the national strategy for industry and advanced technology, aimed at boosting the manufacturing sector's contribution to the country’s GDP, Wam reports.

Background: Mashreq also shelled out AED 970 mn in financing in 2023 to firms in the F&B, metal, and building materials and construction sectors.

MoIAT went big at Make it in the Emirates this year, securing some AED 23 bn in pledges for local manufacturing, and launching the AI innovation program Transform 4.0 to support 100 manufacturers in digitalization and create a group of Industry 4.0 lighthouses over the next three to five years. Emirates NBD also pledged AED 5 bn in financing for the sector.

The bigger picture: “These efforts support our strategic directions, including the development of AI applications, technological transformation, sustainability, and innovation,” MoIAT under-secretary Omar Al Suwaidi said, adding that innovative financing edges industrial companies to expand operations and integrate AI, which transforms factories into smarter, more efficient ones and ramps up added national economic value.

Plenty and Mawarid's USD 680 mn JV to develop five indoor farms in the region

The region is getting five indoor farms, courtesy of a new Mawarid JV: California-based vertical farming startup Plenty formed a USD 680 mn joint venture with Alpha Dhabi’s Mawarid to develop five indoor farms across the region over the next five years, the companies told Reuters. One of the farms will be in Abu Dhabi, and will require an initial investment of USD 130 mn.

Details: The farm is expected to break ground early next year and could be operational by 2026. It aims to produce more than 4.5 mn pounds of premium strawberries annually for local consumption and export to GCC countries. The firm has already pre-sold its strawberry production in the UAE to US berry retailer Driscoll, according to Plenty.

An unnamed local bank will also be providing part of the financing through debt, alongside the JV, a rare move in the indoor farming sector which typically depends on venture capital funding.

Seeking high profitability: “We are targeting returns north of 20%, which is significantly higher than traditional agriculture. In that context, we think there's a lot of capital for the space,” Plenty CEO Arama Kukutai said.

The high costs of constructing new vertical farms has significantly hindered scaling production, and funding for indoor farming has dropped to just a fifth of its 2021 peak, according to PitchBook data.

Vertical farming has long been a priority for the UAE: Dubai’s Badia Farms partnered with Bahrain’s Edamah to invest several mn USD for a sustainable farm in Hamala, while Abu Dhabi’s Masdar City has launched an indoor vertical farm with Singapore’s Alesca Life. Additionally, Dubai’s Crysp Farms raised USD 2.25 mn to expand domestically and into new markets.

OTHER INVESTMENT NEWS-

Beeah to invest AED 500 mn in Egypt: State-backed sustainability firm Beeah plans to invest AED 500 mn in Egypt’s waste management and sustainability, according to a statement. The firm wants to build multilateral partnerships with local and foreign partners and work with investment funds to reduce risk. This came during a meeting between company representatives and Egyptian Environment Minister Yasmine Fouad, during which they discussed potential investments available in the Egyptian local market, including medical waste management and agricultural waste recycling.

Beeah is no stranger to Egypt: The firm was tapped in December to develop the solid waste management infrastructure in Egypt’s new capital. The firm, together with the Egyptian Administrative Capital for Urban Development, plans to allocate up to EGP 1 bn to the first phase of the project.

Adia submits USD 1.6 bn bid for Indian biopharma firm Bharat Serums and Vaccines

Adia-led consortium bids USD 1.6 bn for Indian biopharma firm: A consortium comprising the Abu Dhabi Investment Authority (Adia) and Swedish private equity firm EQT has offered USD 1.6 bn to acquire Indian biopharma firm Bharat Serums and Vaccines (BSV Group), Indian newspaper Economic Times reports, citing sources in the know. Indian Mankind Pharma, is also vying for the firm, having submitted a matching USD 1.6 bn bid to take over BSV from US private equity firm Advent International. A final decision is expected soon, the outlet added.

If Adia acquires the firm at the submitted value, it would mark one of India’s largest pharma buyouts, according to Economic Times.

Mubadala was also in the race: A consortium including Mubadala, New York-based private equity firm Warburg Pincus, and India-focused investment firm ChrysCapital was previously competing for BSV, however it did not submit a binding offer to Advent.

About BSV: Founded in 1971, BSV Group specializes in developing, manufacturing, and marketing injectable medicines with a focus on biotech and biological products.

OTHER M&A NEWS-

Equitativa sells Trident Grand Mall: Equitativa, the manager of Emirates NBD’s real estate investment trust (REIT), sold Trident Grand Mall for AED 74 mn to an unnamed investor, according to a press release (pdf). The asset is the two floor retail section of Trident Grand Residence in Jumeirah Beach Residence, featuring 22 retail units and 164 basement parking spaces.

The proceeds of the sale will be used to redeem USD 380 mn sukuk certificates issued on 12 December, according to the statement. Following the sale, Emirate REIT will have nine properties across Dubai in its portfolio.

DP World + Evyap Group merge to manage two key Turkish ports

DP World + Evyap Group partner to boost port management in Turkey: DP World and Turkey’s Evyap Group have entered a strategic merger and formed a joint venture, DP World Evyap, for the management of two major ports in Turkey’s Marmara region, a statement said on Friday. Neither the investment ticket nor the timeline have been revealed.

The breakdown: Under the new venture, DP world will hold a 58% stake in Evyapport, and Evyap Group will absorb a 42% share of DP World Yarimca, according to the statement. The two maritime gateways will be rebranded to DP World Evyap Yarimca and DP World Evyap Körfez to reflect the transition.

What they said: “The new company will shorten operation times, increase service diversity and add value to our customers and Türkiye's trade with efficiencies achieved across the two partnership terminals,” said Evyap Holding CEO Mehmed Evyap.

Background: Talk of the move between DP World and Evyap first made ink nearly a year ago. The completion of the transaction was contingent upon regulatory approval, which the pair have now obtained from the Turkish Competition Authority.

The UAE ❤️ Turkey: AD Ports Group is also reportedly in talks to acquire a stake in the key Turkish port of Izmir in a USD 500 mn transaction. The agreement could see AD Ports shell out investments in an entity established by Turkey’s sovereign wealth fund to operate the facility. The UAE and Turkey inked a trade agreement last year, as the two countries looked to ramp up bilateral trade and investments.

Emirates NBD, ADCB, SIB, and more see bottom line growth in 2Q 2024

We have our first trickle of 2Q earnings, including of several major banks — which have been widely expected to report lower earnings on the back of a surge in interest payments on deposits and the corporate tax.

EMIRATES NBD-

Emirates NBD beat expectations with a 13.2% y-o-y increase in its net income to AED 7.06 bn in 2Q 2024, topping AED 7 bn for the first time ever, according to its financial statements (pdf). The surge is attributed to “the strongest ever results from Emirates Islamic, improving margins in DenizBank and sizable recoveries bolstered by a buoyant economy,” according to a separate earnings release (pdf). Revenues remained relatively flat in 2Q at AED 10.71 bn, down 1% y-o-y.

On a six months basis, the lender’s net income inched up 12% y-o-y to AED 13.78 bn in 1H 2024, while revenues stood at AED 21.38 bn, up 0.4% y-o-y.

The breakdown: The bank achieved its highest half-yearly funded and non-funded income, with an asset growth of 41% y-o-y to USD 25 bn and a healthy deposit mix growing AED 39 bn in 1H 2024. The profitability of the corporate and institutional banking segment grew 64%, with corporate lending up 7% y-o-y. Global markets and treasury generated AED 1.3 bn in income during the six month period, despite a “general increase in cost of wholesale funding and term deposits due to higher interest rates.”

The bank’s Islamic finance arm Emirates Islamic saw its bottom line grow 39.5% y-o-y to AED 852.3 mn in 2Q 2024, while its operating income also rose 12% y-o-y to AED 1.35 bn, according to its financial statements (pdf). In 1H 2024, Emirates Islamic’s bottom line climbed 37% y-o-y to a record AED 1.66 bn, driven by “superior levels” in both funded and non-funded income, according to an earnings release (pdf). Revenue rose 15% y-o-y to AED 2.7 mn in 1H 2024.

Emirates Islamic saw its total assets surpass the AED 100 bn mark at AED 102 bn, up 16% y-o-y, while deposits grew 14% y-o-y to AED 70 bn. Current and savings account balances accounted for 73% of total deposits, the bank said.

ADCB-

ADCB had a good quarter: ADX-listed Abu Dhabi Commercial Bank (ADCB)’s net income rose 19.9% y-o-y in 2Q 2024 to reach AED 2.32 bn, according to the lender's financial statements (pdf). ADCB’s operating income stood at 4.7 bn during the quarter, up 16% y-o-y. The bank also saw assets climb above AED 600 bn, according to its earnings release (pdf).

On a six month basis, ADCB saw its net income reach AED 4.5 bn in 1H 2024, up 16.9% y-o-y, according to their financials. The bank’s operating income reached AED 9.3 bn during the period, up 16.7% y-o-y, with the bank recording double-digit year-on-year growth in both net interest income and noninterest income.

AJMAN BANK-

Ajman Bank’s bottom line doubled to AED 108.1 mn in 2Q 2024, up 103% y-o-y, according to its financial statements (pdf). The lender’s net operating income stood at 233 mn in 2Q 2024, up 23% y-o-y.

In 1H 2024: Ajman Bank’s net income stood at AED 215.6 mn in 1H 2024, up 110% y-o-y. The bank’s net operating income rose 1.6% y-o-y to 428.1 mn during the six-month period.

SANAD-

Mubadala-owned Sanad logged AED 2.3 bn in revenues in 1H 2024, driven by “significant contributions from its core maintenance, repair, and overhaul and leasing divisions,” Wam reports. The global aerospace engineering and leasing solutions company increased its global orderbook to AED 33 bn in 1H 2024, representing an AED 4 bn addition to its contracted business.

Sanad expects to generate revenues of AED 4.5 bn in 2024, up 28% y-o-y, and double the revenue of 2022.

SHARJAH ISLAMIC BANK-

Sharjah Islamic Bank (SIB)’s net income rose 17% y-o-y to AED 306.5 mn in 2Q 2024, according to its financial statements (pdf). The bank’s operating bottom line also rose 9% y-o-y to AED 524.3 mn in 2Q 2024, driven by improved net fees, commissions, and other income.

Breakdown: Net income from financing and investment products totaled AED 362.5 mn during the quarter, up a marginal 4% y-o-y.

On a six-month basis, SIB’s net income rose 14% y-o-y to AED 566.2 bn in 1H 2024, while its operating bottom line grew 7% y-o-y to AED 1.03 bn.

PALM SPORTS-

International Holding Company sports management subsidiary Palms Sports saw its net income rise 6% y-o-y to AED 22.7 mn in 2Q 2024, according to the company’s financial statements (pdf). The company’s revenues saw a 212% y-o-y uptick during the quarter to reach AED 253.6 mn.

In 1H 2024, Palms Sports saw its net income after tax jump 28% y-o-y to reach AED 38.3 mn. Palms Sports’ total revenues increased by 210% y-o-y, reaching AED 512 mn, driven by “the strategic acquisition of Securiguard Middle East and the successful implementation of new projects,” according to the company’s earnings release (pdf).

Looking ahead: Palm Sports will be pursuing “ambitious plans for regional expansion, particularly in Egypt,” the earnings release said.

Dubai’s RTA to add AED 1.1 bn buses to fleet

TRANSPORT-

RTA expands fleet with AED 1.1 bn low carbon bus order: Dubai’s Roads and Transport Authority (RTA) purchased 636 new buses for AED 1.1 bn to enhance the emirate’s public transport system, it said in a statement. The new fleet — set to be delivered in 2024 and 2025 — comes as part of the RTA’s plans to boost public transport use to 25% by 2030, and to convert 100% of public transport buses to electric and hydrogen-powered buses by 2050.

The breakdown: The order includes 40 electric buses and 50 city service buses from Chinese bus manufacturer Zhongtong, 400 city service buses from German MAN Truck & Bus, 76 double-deckers from Volvo, and 70 articulated buses from Anadolu Isuzu.

REAL ESTATE-

Singapore’s Mapletree to set up shop in Abu Dhabi: Singapore’s real estate firm Mapletree Investments plans to open an Abu Dhabi office as it seeks to tap into the Emirati booming real estate sector, Bloomberg writes, citing sources it says are in the know. Mapletree, which is owned by Singapore’s state investor Temasek Holdings, re-hired its former vice president Khairul Abdullah (LinkedIn) to lead its Middle East operations, the sources added.

Remember: The company faced its first loss in two decades during the fiscal year ending in March amid declining valuations in its office portfolios across the US, Europe, and Australia.

AVIATION-

Abu Dhabi Airports rolls out smart travel project for automatic identification: Abu Dhabi Airports is set to launch a smart travel project at Zayed International Airport, integrating automatic biometric authentication systems at all the airport’s security and operations touchpoints, according to a statement. Launched in partnership with the Federal Authority for Identity, Citizenship, Customs, and Port Security, the project will use the authority’s databases to automatically authenticate departing passengers, eliminating the need for prior registration.

About the project: The biometric systems, developed by AI transport solutions firm Next 50, were first introduced by Abu Dhabi Airports and Etihad Airways with the launch of the new terminal at Zayed International Airport in November 2023. The systems include automated registration, self-service baggage, and facial recognition at e-gates and boarding gates.

The project will be implemented in three phases, currently being expanded in five additional airlines’ check-in areas, and boarding gates. Future stages will include Etihad Airways’ lounge and duty-free retail outlets.

ENERGY-

#1- Kilimanjaro teams up with Chinese firm for potential solar projects: Dubai-based renewable energy group Kilimanjaro Energy signed an MoU with Chinese solar energy systems supplier Skyworth Photovoltaic Technology to cooperate on global solar energy and energy storage projects in the commercial and industrial sectors, according to a statement from the Dubai Media Office.

Kilimanjaro eyes setting up shop in China: Kilimanjaro plans to open an office in China to offer consulting services for Chinese companies looking to expand into the region.

#2- UAE University set to get the largest solar power project in the Emirates’ education sector: Abu Dhabi Energy Services (Ades), a subsidiary of state-run Taqa, kicked off a project to implement a 9 megawatt-peak solar power plant at the United Arab Emirates University in Al Ain, Wam reports. The project is poised to become the largest solar energy undertaking in the country’s education sector.

The project will cover 25% of the university’s annual power needs via the installation of more than 14k ground-mounted solar panels. The project will take 13 months to complete.

BUSINESS-

Dubai to support the establishment of a financial center in Indonesia's new capital: The Dubai International Financial Centre agreed to support the establishment of the Nusantara Financial Centre in Indonesia’s new capital under an MoU it signed with the Nusantara Capital City Authority, according to a statement from the Dubai Media Office. The agreement will see both entities exchange expertise on regulatory frameworks and efficient business models to prompt businesses to open offices in both financial hubs.

ICYMI- Indonesian President Joko Widodo wrapped up a two-day visit to the UAE on Wednesday, where he met his Emirati counterpart Sheikh Mohamed bin Zayed Al Nahyan at Qasr Al Watan in Abu Dhabi. The two leaders signed a raft of MoUs, building on the comprehensive economic partnership inked between the two countries in 2022. The visit also saw the UAE’s Eagle Hills ink an agreement for a sizable real estate investment ticket, as well as cooperation on the banking front.

BANKING-

Central banks of UAE + Seychelles collaborate to streamline payments: The Central Bank of the UAE inked two MoUs with its counterpart in Seychelles to streamline cross-border transactions and integrate their payment networks, Wam reports. The first agreement seeks to facilitate the use of AED and SCR to settle commercial transactions between both countries, boost trade, and attract direct investments. The second agreement will see both banks link up their instant payment platforms to facilitate the electronic transfer of funds.

The second trade settlement agreement in as many weeks: The CBUAE inked an agreement with the National Bank of Ethiopia last week to explore the use of local currencies in trade and integrate their payment platforms.

HEALTHCARE-

The UAE launched a USD 150 mn global hospitals program aimed at building 10 hospitals in underserved communities, Wam writes. The first hospital set to be built under the program will be the UAE-Indonesia Hospital for Cardiac Diseases, currently under development in Surakarta and expected to open by 4Q 2024.

FINANCE-

DFSA slaps Symphony Services and its CEO with AED 1.3 mn fines: The Dubai Financial Services Authority (DFSA) issued penalty notices against Symphony Services and its CEO, Daniyar Jabarkulov, for providing false and misleading information for an AML risk assessment in December 2021 and not allowing access to requested documents during a visit in March 2022, Wam reports.

The fines: Symphony was fined AED 771.3k and had its registration as a non-financial business entity withdrawn, while CEO Jabarkulov was fined AED 513.2k and prohibited from holding any position or being employed by any licensed person or entity in the DIFC, and from engaging in any financial services-related profession.

GCC issuers raised more debt in 1H 2014, with Saudi leading the way leading the way

Sukuk and bond issuances by GCC countries grew 38% y-o-y to USD 75.5 bn in 1H 2024 with Saudi accounting for almost half of all sukuk and bond issuances out of the Gulf during the period, according to data from Kuwait Financial Centre (Markaz). The first six months of 2024 saw 173 primary debt issuances in the GCC, up from 130 in the same period last year.

Saudi issues led the market, raising USD 37 bn through 44 sales to account for 49% of the total amount raised in the GCC, according to Markaz. The UAE came second with a 27% share of issuances, raising USD 20.6 bn in 64 transactions.

How other GCC peers fared:

Qatari issuers came in third with USD 10.5 bn raised across 39 transactions;
Bahraini raised USD 3 bn from 4 issuances, Kuwait raised USD 2.6 bn from 15, and Oman raised USD 1.7 bn from an undisclosed amount of issuances.

Sovereign vs. Corporate: Sales by sovereign entities in the GCC grew 77% y-o-y during the period to USD 41.5 bn, accounting for 55% of total value of GCC primary issuances. The remaining 45% of primary issuances out of the GCC came from corporate issuers, which raised USD 34.0 during 1H 2024, marking a rise of 8% y-o-y.

Sales by issuers in the financial sector raised USD 28.8 bn, good for a 38% share of all funds raised in the period.

Conventional issuances made up 65% of total primary issuances in the Gulf at USD 48.8 bn — that’s up 56% y-o-y. Sukuk issuances totalled USD 26.6 bn to account for 35% of total issuances.

USD-denominated issuances accounted for 76% of total bond and sukuk sales, while SAR-denominated sales made up 12% of the total. (That’s in line with estimates by S&P Global, which said Saudi sukuk issuances more than tripled y-o-y in 1H 2024 to USD 10 bn.)

MARKETS THIS MORNING-

Asian shares opened lower this morning as investors around the world absorb the news that Joe Biden has dropped his bid for re-election — but futures for major Wall Street benchmarks were up across the board in overnight trading. In Europe, futures for the CAC 40 were the only losers overnight — left-wing politicians there are still trying to figure out how to put together a government after defeating a challenge from the far-right in snap elections.

ADX	9,246	+0.2% (YTD: -3.5%)
DFM	4,181	+0.3% (YTD: +3.0%)
Nasdaq Dubai UAE20	3618	+0.2% (YTD: -5.8%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.0% o/n	5.0% 1 yr
TASI	12,203	+0.1% (YTD: +2.0%)
EGX30	28,783	+0.5% (YTD: +15.6%)
S&P 500	5,505	-0.7% (YTD: +15.4%)
FTSE 100	8,156	-0.6% (YTD: +5.5%)
Euro Stoxx 50	4,827	-0.9% (YTD: +6.8%)
Brent crude	USD 82.63	-2.9%
Natural gas (Nymex)	USD 2.13	+0.1%
Gold	USD 2,447	-2.3%
BTC	USD 67,655	+0.5% (YTD: +60.6%)

THE CLOSING BELL-

The ADX rose 0.2% on Friday on turnover of AED 931.1 mn. The index is down 3.5% YTD.

In the green: Rapco Investment (+8.7%), Bank of Sharjah (+6.4%) and Apex Investment (+5.5%).

In the red: E7 Group (-6.6%), Fujairah Cement Industries (-3.4%) and National Corporation for Tourism and Hotels (-3.0%).

Over on the DFM, the index closed up 0.3% on turnover of AED 317.1 mn. Meanwhile Nasdaq Dubai rose 0.2%.

CORPORATE ACTIONS-

#1- DAE is buying back more of its bonds: Dubai Aerospace Enterprise (DAE) resumed its bond repurchase program this month, it said in a Nasdaq disclosure. The company is allowed to buy back up to USD 266 mn of its outstanding bonds and is now offering indicative bids via Bloomberg for bonds across different maturities.

REFRESHER- The company approved a USD 300 mn bond repurchase program back in 2018. It has since repurchased USD 1.2 bn of company bonds on the grounds that “their prices were misaligned with [the company’s] credit ratings.”

#2- GFH Financial Group appointed BHM Capital as liquidity provider for its listed shares on the DFM and ADX after receiving regulatory approval, according to a bourse disclosure (pdf).

President discusses Ethiopian mediation with Sudan’s Burhan

It’s been a busy few days for the UAE on the diplomatic front, with talks with Sudan, Slovenia, and Croatia, as well as cooperation with China and more post-war plans for Gaza.

#1- President Sheikh Mohamed bin Zayed Al Nahyan discussed bilateral ties and Sudan’s 15-month war with army chief and de facto ruler General Abdel Fattah Al-Burhan via a phone call in their first public communication in months, Wam reports. The two heads also reviewed a mediation offer from Ethiopia to broker a ceasefire between the Sudanese army and the paramilitary Rapid Support Forces (RSF), Reuters reports, citing diplomatic sources in the know.

#2- The General Civil Aviation Authority inked an MoU with China’s Civil Aviation Authority to boost air connectivity between the two countries’ airports and enhance bilateral air transport relations, Wam reports. The agreement was signed during a round of air services consultations held in Beijing last week.

REMEMBER- Talk that the UAE and China have been eyeing potentially ramping up bilateral air traffic after years of stagnation has been swirling for a while. The two countries want to boost flights beyond the current 56 per week per country ceiling, although no specific cap has been disclosed yet.

Who benefits: Emirates, currently operating its maximum of 35 weekly flights to China, stands to benefit significantly, alongside China Southern Airlines, which flies to the UAE 20 times per week.

#3- UAE + Slovenia hold political consultations: An Emirati delegation, led by Director of European Affairs Abdulrahman Ali Al Neyadi, met with Slovenian officials in Ljubljana for the second round of political consultations, Wam reports. The meeting saw the two delegations highlight the role of cooperation between the two countries on both bilateral and global fronts.

#4- The UAE is prepared to send troops to Gaza in a multinational stabilization mission after the war ends, Special Envoy to the Foreign Ministry Lana Nusseibah told the Financial Times, making the UAE the first country to announce its intention to deploy national forces to Gaza postwar. Nusseibah said that Abu Dhabi has held talks with the US regarding the plan and will participate in the mission provided that the US leads the mission and it receives an invitation from “a reformed Palestinian Authority (PA), or a PA led by an empowered prime minister.”

Nusseibah discussed the deteriorating humanitarian situation in Gaza with Belgian Foreign Minister Hadja Lahbib at her office last week in Brussels, ahead of the second round of political consultations between the two countries, Wam reports. The two officials also explored bilateral cooperation in areas of mutual interest.

IN MORE DIPLO NEWS-

Foreign Affairs Minister Abdullah bin Zayed Al Nahyan discussed strengthening bilateral ties and cooperation with his Croatian counterpart Gordan Grlić-Radman during a phone call. (Wam)

CALENDAR

JULY

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

AUGUST

2 August (Friday): Abu Dhabi Extreme Championship, Mubadala Arena, Abu Dhabi.

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 on 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.

25-26 September (Wednesday-Thursday): Global Aerospace Summit, Abu Dhabi, 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.

14-18 October (Monday-Friday): IEEE/RSJ International Conference on Intelligent Robots and Systems, Adnec Centre, 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

3-10 November (Sunday-Sunday): Dubai Premier Padel P1, Dubai Dutyfree Tennis Stadium, Dubai.

4-7 November (Monday-Thursday): 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

1 January (Wednesday): ADGM to slash licensing fees for retail and non-financial firms, and hike fees for finance firms.

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.

Sections

About

Privacy & Support

Get EnterpriseAM daily