Commercial property market prices on the up

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Flydubai eyes biggest aircraft order following Boeing delays + UAE’s passport is the ninth most powerful in the world -Henley

Good morning, lovely people. It’s another busy day of news with fresh data on the commercial real estate market in the first half of the year, an AED 1.8 bn investment from Aldar in Dubai’s commercial sector, and plenty of other investment news.

WEATHER- Dubai will see the mercury peak at 41°C before cooling to an overnight low of 36°C. Abu Dhabi will see highs of 38°C and a low of 35°C.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- Public buses in Dubai will soon be able to detect if passengers have not paid for their fares, as the Roads and Transport Authority plans to roll out an automated passenger counting system that matches the number of passengers against the fare collected on new buses it will deploy this year, Wam reports. Passengers caught dodging fares will be fined AED 200, according to Khaleej Times.

#2- If you see drones hovering in the skies over you, don’t panic: Dubai Police is using blue-marked drones to scan for emergencies and boost emergency response times, it said in an X post.

#3- Newly married Abu Dhabi citizens are now eligible for a zero-interest loan of up to AED 150k, as part of the new Marriage Loan initiative launched by the Abu Dhabi Social Support Authority earlier this month, according to the Abu Dhabi Media Office. Applications can be submitted by the husband through the Medeem Digital Platform from early September 2024, with eligibility requirements including holding an Abu Dhabi family book and a monthly income of no more than AED 60k.

#4- Businesses can now pay their taxes at any of Al Ansari Exchange’s branches, after the firm launched corporate tax collection services across its UAE branches, according to a press release.

WATCH THIS SPACE-

#1- Flydubai is mulling its biggest aircraft purchase in 15 years, which could support its growth into the next decade, the carrier’s CEO Ghaith Al Ghaith told Bloomberg at the Farnborough International Air Show. The airline is reevaluating its all-Boeing fleet, exploring options from both Boeing and Airbus due to significant delivery delays. Al Ghaith mentioned that Flydubai's next major order would exceed its 2017 order of 175 Boeing 737 aircraft.

Remember: UAE’s budget carrier flydubai said last week that its expansion plans will be significantly hampered by delays in Boeing’s delivery schedule. The airline is now working on “evaluating its route development plans and potential frequency revision across the network due to a lack of new aircraft deliveries over the next few months.” Fourteen 737 MAX aircraft, originally slated for delivery this year, will not be handed over to Flydubai due to Boeing’s revised schedule.

#2- Ewec launches tender for power turbine project: Abu Dhabi’s utilities provider, Emirates Water and Electricity Company (Ewec), has issued a request for proposals for the development, operation, and maintenance of a combined-cycle gas turbine in the Al Taweelah power and desalination complex, according to a statement. Ewec expects to receive bids by 4Q 2024 and will grant the successful developer an ownership stake of up to 40% in the plant.

About the project: The Taweelah power plant will have a generation capacity of up to 2.5 GW and is slated to commence commercial operations by 3Q 2028. The carbon capture-ready plant will focus on providing transitional capacity to support large-scale renewable energy and provide flexibility during periods of peak demand.

#3- Climate-focused Princeville Capital to set up shop in Hub71: California-based VC Princeville Capital is planning to launch an office in Abu Dhabi’s startup incubator Hub71, with plans to commit “multi-mn USD” in funding for climate tech startups in the hub, Bloomberg reported yesterday, citing a Hub71 statement. The VC will act as the first international anchor for Hub71, the hub said in a video (watch, runtime: 1:42).

#4- Expo City Dubai has launched land sales for its Expo Valley residential project, offering plots ranging between 7.5-12.5k sqft, with the option for buyers to combine plots, according to a press release. The developer has also awarded four construction contracts for the project, with three going to UAE-based firms, without disclosing the chosen developers.

DATA POINT-

#1- Investors like the UAE for IPOs: Some 84% of UAE-based investors said they are willing to invest in future IPOs, surpassing interest levels in 2023 and 2022, and signaling a “strong investor appetite for UAE IPOs for 2024,” according to an Edelman Smithfield’s UAE investor survey picked up by Zawya. Some 71% of investors said they trust the local book building process.

Real estate IPOs were favored by over half of investors, while technology sparked interest from 41% of investors, followed by the healthcare sector, which attracted interest from 33% of respondents.

#2- The UAE’s passport was ranked the ninth most powerful passport in the world on the Henley & Partners Passport Index, climbing 53 places to rank among the top ten passports for the first time since the launch of the index in 2006. The passport offers its holders entry to 185 countries without visas, a “result of deliberate and concerted efforts by the Emirati government to position the UAE as a global hub for business, tourism, and investment,” Henley & Partners CEO, Dr Juerg Steffen said.

THE BIG STORY ABROAD-

The foreign business press is focused squarely on the Nasdaq’s worst day since 2022. The index saw some USD 1 tn in outflows as Big Tech stocks, including Tesla and Alphabet, plunged, Bloomberg reports, saying the rout was the result of doubts about potential returns on costly investments in AI. The trigger: massive spending on the still commercially unproven technology made clear by Alphabet’s earnings.

The tech-heavy Nasdaq was down 3% at close, while the Dow was off 1.3% and the S&P 500 fell 2.3%.

Concerns that AI’s commercial hype may be overblown have grown louder as companies continue to spend big on AI infrastructure with little financial payoff, some pundits say.

Expect plenty of quarterly results from tech players next week: Microsoft is due out on Tuesday, followed by Meta, Apple, and Amazon. Nvidia will be the final one to report on 28 August.

MEANWHILE- Ether ETFs attracted inflows of USD 108 mn on the first day they went live, the Financial Times reports.

PLUS- Crowdstrike blamed the global tech outage on Friday on a bug in the test software it uses to validate content updates, according to a blog post yesterday.

Over in the world of politics, US President Joe Biden delivered a speech explaining his decision to withdraw from the presidential race, saying he is ready to “pass the torch” to the next generation as he continues his “defense of democracy.” CNN has the story, or you can catch it here on the White House’s Youtube channel (watch, runtime: 11:02).

AND- Israeli Prime Minister Benjamin Netanyahu addressed the US Congress last night, doubling down on his justification for Israel’s war on Gaza. Though Netanyahu received copious applause, particularly from the red side of the aisle, dozens of Congress Democrats did not attend, including Vice President and projected Democratic presidential nominee Kamala Harris. She is set to meet Netanyahu today.

US officials are saying ceasefire negotiations are “in closing stages,” with Reuters reporting that Netanyahu and Biden are set to iron out the gaps today. How many times have we heard that in the past six months?

CIRCLE YOUR CALENDAR-

The annual jiu-jitsu tournament, the Abu Dhabi Extreme Championship, is returning to Abu Dhabi at the Mubadala Arena on 2 August, Wam reports.

Abu Dhabi will play host to a big night for mixed martial arts fans on 3 August at Etihad arena. The UFC Fight Night will see the return of MMA champion Nick Diaz, who has been out of the limelight since 2021, as he goes head to head with Tony Ferguson.

Also set to clash: Former flyweight champion Deiveson Figueiredo will face bantamweight title challenger Marlon Vera, while world number 2 bantamweight contender Cory Sandhagen will headline against Umar Nurmagomedov.

The World ESG Summit is scheduled to take place on 20-21 August at Dusit Thani in Dubai. The two-day business conference will gather public and private sector players from key sectors like energy, utilities finance, and manufacturing to explore ESG integration across all industries.

The Dubai PodFest kicks off on 30 September at Dubai World Trade Centre in Za’abeel Hall 5, according to a press release. Organized by the Dubai Press Club, the event will bring together top podcasters and media professionals in the Arab world to discuss the future of the industry.

Sharjah will host the 2024 International Government Communication Forum on 4-5 September at the Expo Centre Sharjah, Wam reports. Organized by the Sharjah Government Media Bureau, the event aims to promote innovative government communication strategies and tools across social, economic, cultural, and tourism domains.

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

Prices are still on the rise in the commercial property market amid heightened demand

The commercial property boom has yet to cool off: Sales and rental prices for office space in Dubai continued to rise in 2Q 2024, while seeing slower growth in Abu Dhabi, according to two separate reports picked up by Khaleej Times. Despite an increase in prices, the volume of sales fell slightly — down 2% y-o-y to 2.9k — on the back of the April floods and public holidays, with the value of sales falling 6% y-o-y according to Betterhomes.

THE OFFICE MARKET-

Dubai upped workplace offerings in 2Q 2024, with some 20k sqm of new office space added, raising its stock to over 9.3 mn sqm, according to a JLL’s latest UAE real estate market overview report cited by Khaleej Times. The emirate expects to see an additional 18k sqm of space become leasable in the next two quarters.

Office space got more expensive: The average selling price for secondary office spaces in the emirate hit nearly AED 1.4k per sq ft in 2Q 2024, up 22% y-o-y. The total value of sales rose 17% y-o-y to AED 1.36 bn during the quarter.

Growth in sales came alongside a 1% y-o-y increase in office transactions, with 764 transactions recorded, indicating sustained demand for office spaces, despite the persistent supply crunch for Grade A office spaces in Dubai, according to Betterhomes. The supply crunch also created a “seller’s market,” allocating high bargaining power for landlords, with many issuing stricter lease terms.

The breakdown: Business Bay stood center for 43% of total office transactions, followed by Jumeirah Lakes Towers, which comprised 32%. Dubai Silicon Oasis made up 5% of total transactions, while Arjan and Jumeirah Village Circle accounted for 4% each.

Rentals were also on the rise: Grade A rents in Dubai’s Central Business District increased 15% y-o-y to AED 2.6k per sqm on the back of strong demand and increasing leasing activity, with office vacancies in CBD falling to 8% during the period.

Abu Dhabi’s office supply remained stable at 3.95 mn sqm, though it has some 125k sqm scheduled for delivery in 2H 2024. City-wide office vacancy rates dropped to 21% during the quarter, while Grade A rents inflated by 10% y-o-y to a little over AED 2.1k per sqm per year.

RETAIL AND HOSPITALITY-

The two emirates maintained their retail stocks in 2Q, despite heightened demand for space, particularly in well-performing super regional and regional malls. Dubai kept total stock at 4.8 mn sqm and expects to deliver 58k sqm of new retail space by the end of the year. Neighboring Abu Dhabi held retail stock still at some 3.2 mn sqm, but has 85k sqm of retail GLA in its pipeline within the year, with a focus on community and regional malls.

Limited retail availability drove rentals up: Dubai saw average rental rates in primary and secondary malls rise by 16% y-o-y, while Abu Dhabi logged an 11% y-o-y increase, according to JLL.

The emirates added a scarce amount of new keys to their hospitality segment in 2Q 2024, despite heightened tourism, with Dubai logging a 10% y-o-y increase in international visitors this year, as of May. Dubai plans to introduce an additional 4.5k keys in 2024, while Abu Dhabi will roll out 800 keys during the same period.

Still, hospitality revenues were on the rise: Revenue per available room (RevPAR) in Dubai increased by 6% y-o-y, on the back of a similar 5% y-o-y increase in average daily rates. In Abu Dhabi, RevPAR jumped by 24% y-o-y, with daily rates increasing by 13% y-o-y.

THE INDUSTRIAL MARKET-

Dubai saw robust demand for quality industrial assets, particularly in established freezones, which spiked rental rates by some 14% y-o-y across all submarkets, JLL said.

Abu Dhabi also saw heightened demand for warehouse space, posting 10% y-o-y rent growth during 2Q, driven by strong demand for vacant Grade A spaces in the Industrial City of Abu Dhabi and Kezad, which logged an 88% occupancy rate.

Tenants are snagging office space before it's on the market: Dubai saw a rise in pre-leases — unconventional before now in the emirate’s office market — with tenants securing spaces before availability.

Aldar boosts commercial portfolio in Dubai with AED 1.8 bn investments in office towers

Real estate developer Aldar Properties committed AED 1.8 bn to ramp up its portfolio in Dubai, focusing on key business districts, it said in an ADX disclosure (pdf). The projects include Aldar's first commercial development in Dubai, as well as the purchase of a fully occupied Grade A office building in Dubai Internet City (DIC), bringing the developer’s total net leasable area (NLA) to 465k sqm across 13 operational assets, with an occupancy rate of 97%.

Aldar is planning to build a Grade A office tower development with a NLA of 88k sqm on a freehold plot in Sheikh Zayed Road, beside the Dubai International Financial Centre, the disclosure reads. The project — which will also include a luxury boutique hotel and branded residences — is slated for handover in 4Q 2027, and targets high sustainability credentials.

The Abu Dhabi developer also inked an agreement to acquire 6 Falak, a fully occupied Grade A office building housing 9.1k sqm of NLA in DIC. The building, which was completed in March 2024, is home to several notable tenants including Roland Berger, Merck, and IFS. The transaction is expected to be completed in the coming weeks, the statement said.

Aldar has been expanding its portfolio in Dubai, with its first residential development — the AED 1 bn Verdes by Haven apartment complex — launched this year. It also lined up AED 1 bn (USD 272 mn) earlier in January to expand its logistics operations in both Abu Dhabi and Dubai, which included an acquisition of its first logistics zone in Dubai and plans to set up new logistics facilities. It agreed this month to develop a Grade A logistics park at National Industries Park in Jebel Ali.

Pathfinder Global raises USD 325 mn ahead of Nasdaq listing

Dubai-based retail tech startup Pathfinder Global is moving forward with a direct listing on Nasdaq in October following a USD 325 mn investment from private equity firm Silver Rock Group, which will be disbursed over the next three years after the company successfully lists, according to a press release.

Pathfinder Global is raising funds through a private placement of 2.5 mn restricted shares before its Nasdaq listing, the company’s CEO Sadique Ahmed told EnterpriseAM UAE. The private placement investors include Silver Rock — the first institution to commit — and several high-net-worth individuals, with existing shareholders and institutions also showing interest.

Following the listing, Pathfinder Global plans to dilute 10% of its shares, with the current private placement designed to attract early investors by offering them preferential access to future shares, according to Ahmed.

Pathfinder Global is opting for a direct listing rather than taking the usual venture capital route to help the company access significant funding and broaden shareholder benefits, the CEO told us. This approach allows Pathfinder to tap into a wider investor base and establish valuable international partnerships more efficiently.

The funds will be used to expedite the global rollout of Pathfinder’s RetailGPT, a platform that uses AI to optimize retail operations, as well as to enhance its features and scale its market presence. Pathfinder Global has already conducted a beta launch in India and Sri Lanka, with plans to take the software live in India, Sri Lanka, the UAE, and Saudi Arabia by September, with plans to expand to 15 more markets next year, according to the CEO.

Pathfinder Global? Founded in 2000, Pathfinder Global specializes in AI-driven solutions to improve retail operations and intelligence. The retail technology firm is integrated with over 150 shopping centers, and 40 airports across the UAE, Saudi Arabia and India. Pathfinder Global is currently targeting USD 33 mn in revenues next year, and aiming for 1 mn retailers over USD 1 bn in revenues within three years, according to Ahmed.

**This story was corrected on 27 July to note that the listing will take place on Nasdaq US, not Nasdaq Dubai.

Titan Wealth acquires UAE-based wealth manager AHR Group

Financial advisory firm Titan Wealth acquired Dubai-based wealth manager AHRGroup for an undisclosed sum, the firm said in a press release. The acquisition — which will see AHR Group rebranded to Titan Wealth International — will boost Titan’s assets to over GBP 20 bn, once AHR’s USD 2 bn assets under management are integrated into Titan. Titan is owned by Parthenon Capital Partners, Hambleden Capital, and Ares Management.

About AHR: Established in 2020, AHR Group focuses on serving the expat community in Dubai. The firm’s offices span Mauritius, Malaysia, Cyprus, the UK, and Australia.

Titan’s expansion to the UAE is a “strategic” move into a market with “significant opportunities for growth,” Titan said. The firm is looking to boost its assets to GBP 100 bn, through both organic and inorganic growth, Group CEO Andrew Fearon told the Financial Times Advisor.

Meanwhile, AHR Group will benefit from Titan’s expertise and client base, the company’s CEO Daniel Dickinson said.

Natural Ventures closes USD 100 mn fund

UAE-based venture capital firm Natural Ventures closed its debut USD 100 mn fund, according to a press release. The Natural Ventures Fund I — headquartered in the Abu Dhabi Global Market — plans to invest in advanced technologies addressing climate change, population growth, and the sustainability of water and food systems.

Key investors in Natural Ventures Fund I include Helm AG, a German chemicals manufacturer; Chemovateq, a Swiss-based family office; and an unnamed strategic UAE investor.

Helping manage the fund will be Netherlands-based AgBioScout, which specializes in agritech scouting and advisory, and UK-based Isle Utilities, an innovation consultancy focused on water and environmental technologies, under strategic partnership agreements with Natural Ventures.

The fund’s recipients to date: The fund recently led a seed funding round for US-based water purification company Active Membranes. The fund also invested in Israel-based drip irrigation firm N-Drip, German aviation and aerospace component manufacturing firm Constellr, and Israeli microalgae specialist Brevel.

Mubadala-backed Fortress backs UK’s Imagination Technologies with USD 100 mn investment

Fortress pours into UK chipmaker: Mubadala-backed Fortress Investment Group has extended a USD 100 mn convertible loan to Imagination Technologies, a British microchip company owned by private equity firm Canyon Bridge, according to a press release. The loan allows Fortress to gain ownership in the microchip firm at a later date.

Where are the proceeds going? Imagination plans to use the investment ticket to support its expansion plans, particularly in the fields of AI, graphics, and computing.

About Imagination: The semiconductor company was fully acquired in 2017 by Chinese state-backed Canyon Bridge for GBP 550 mn, subsequently delisting from the London Stock Exchange. Imagination’s clients include Apple, which uses the firm’s graphics processing units in its devices.

Fortress wants to make Imagination a big player in AI: “We look forward to bringing Fortress’s expertise in intellectual property, technology and growth investing to help Imagination continue expanding its leadership in the industry, develop new capabilities, and maximize the value of its portfolio,” Head of Intellectual Property at Fortress Eran Zur said.

Background: Mubadala finalized its acquisition of 90% of US asset manager Fortress in May, after agreeing to concede operational control and promised concessions regarding data security.

ICYMI- Fortress aims to double its assets under management to USD 100 bn within five years, as it pushes into private wealth and ins. The firm is also planning to foray into venture debt and structured trades, as well as set up an Abu Dhabi office.

ADVISORS- Barclays and Jefferies served as Imagination’s joint placement agents in the transaction.

The story got ink in The Telegraph.

SCA sets up regulatory framework for establishing SPVs

SCA rolls out regs for SPVs: The Securities and Commodities Authority (SCA) has issued regulations for special purpose vehicles (SPVs), aimed at strengthening the UAE’s securities sector and boosting investments in domestic capital markets, Wam reports. The framework sets out requirements for SPV incorporation, classification, licensing, and liquidation procedures for SPVs that fall outside the jurisdiction of financial freezones like the Dubai International Financial Center and the Abu Dhabi Global Market.

Also exempt: Federal or local government entities and their companies — unless the debt issuances offered by the SPVs are public.

Background: In 2021, the SCA issued the decision (pdf) permitting the establishment of SPVs and special purpose acquisition companies (SPACs). SPVs were introduced to facilitate debt issuances by allowing them to back sukuk and other debt instruments with assets transferred to the SPVs. The decision came into effect in January 2022.

Applications for SPVs must be submitted to the SCA for approval, with the authority either approving or rejecting the application within five days.

The SCA has also introduced a new SPV manager role to oversee the operations of the vehicle, ensuring that they comply with their designated purposes. Accordingly, the decision bars these managers from conducting mergers, legally restructuring of the SPV, or splitting the SPV.

Abu Dhabi Islamic Bank reports 2Q results

ADIB had a good quarter: Abu Dhabi Islamic Bank (ADIB) saw its net income after zakat and tax rise 29% y-o-y to AED 1.58 in 2Q 2024, as the bank grew its assets and diversified its funding base and revenue mix, ADIB’s acting group CEO Mohamed Abdelbary said in the bank’s earnings report (pdf).The bank booked AED 2.8 bn in revenues, climbing 27% y-o-y compared to the same period last year.

And a solid half: The bank’s net income after tax in 1H 2024 jumped 30% y-o-y to AED 3.03 bn. ADIB’s revenues increased 25% y-o-y to AED 5.35 bn, on the back of robust business activity across all segments and products, coupled with sustained “strength in fee-based businesses.”

ADIB’s asset base crossed the AED 200 bn mark, rising 17% y-o-y to AED 213 bn, attributable to a record 19% y-o-y growth in customer financing and “growth in balances with the Central Bank, and growth of the investment portfolio.”

COMMERCIAL BANK OF DUBAI-

The Commercial Bank of Dubai’s (CBD) net income after tax rose 15.6% y-o-y to AED 751.5 mn in 2Q 2024, according to the lender’s financial statements (pdf). The bank’s revenues rose 9.3% y-o-y to AED 1.34 bn during the quarter.

On a six-month basis, CBD’s net income rose 18.5% y-o-y to AED 1.45 bn in 1H 2024, with revenues rising 10.1% y-o-y to AED 2.71 bn, according to its earnings release (pdf). The robust growth in the bank’s net income was attributed to “customer business activity and strong overall revenues,” CBD CEO Bernd van Linder said.

Assets and deposits: The bank saw its assets grow 14.9% y-o-y to AED 141 bn during the first half of the year, while customer deposits increased 16.5% y-o-y to AED 99.8 bn at the end of the 6-month period.

Emirates NBD advises on Turkey’s renewed EUR 176 mn green loan

DEBT-

Turkey renews EUR 176 mn green loan: Emirates NBD Capital — the investment banking arm of Emirates NBD — acted as sustainability coordinator and acting agent on the renewal of a sustainability-linked EUR 176 mn loan for Dutch-based ING Bank ’s Turkish unit, according to a press release. The 367-day loan — which it raised from a syndicate of 31 banks across 18 different countries — is a renewal of an existing facility and marks ING Türkiye's fourth sustainability-linked syndicated loan. The renewal attracted demand 2.5x its initial target.

The details: The loan will be used for general trade finance purposes, with pricing set at 2.50% above the secured overnight interest rate for loans in USD, and 2.25% above the Euro Interbank Offered Rate for the EUR-denominated loans. The loan includes sustainability performance criteria, allowing for improved pricing if ING Türkiye meets targets for green and social loans, including asset generation and improvement in its Organization Health Index score.

OTHER ADVISORS- ING Bank NV will support the UAE bank as the second sustainability coordinator.

TECH-

#1- Geospatial services provider Bayanat plans to enter a joint venture with South Korean autonomous driving startup Autonomous A2z to develop autonomous systems and vehicles for passenger transport in the UAE and MENA region, according to a statement. The two companies will also explore use cases beyond public transport, the statement added. The statement did not disclose the financial details for the partnership or a shareholder ownership breakdown.

Background: The two companies first partnered to demonstrate remote control of a vehicle 7k km away at DriftX this year.

#2- Open Innovation AI to use AMD’s GPUs: Abu Dhabi’s Open Innovation AI has teamed up with US chipmaker AMD to integrate the latter’s Instinct graphics processing units in the development of its AI orchestration platform, according to a statement picked up by Zawya.

BUSINESS-

#1- The Sharjah Chamber of Commerce and the Chamber of Commerce and Industry of Tunis explored ways to boost cooperation between the private sectors of each city, particularly in the exchange of economic data, investments, and events, Wam reports. The delegation invited Tunisian firms to participate in Sharjah’s next Acres conference in 2025.

#2- Abu Dhabi’s Youth Business Council is now live: The Abu Dhabi Chamber of Commerce and Industry has launched the Abu Dhabi Youth Business Council, aimed at supporting young Emirati entrepreneurs and boosting their engagement within the emirate’s private sector, Wam reports. The council’s board will include 18 young entrepreneurs and will be headed by Mansour Abduljabbar Al Sayegh, who was appointed as its president.

INFRASTRUCTURE-

Sheikh Mohammed bin Zayed’s Exit 55 expanded: Exit 55 at Sheikh Mohammed bin Zayed Road in Dubai, which leads to Al Rebat Street, saw the addition of a third lane under a 600 m widening project carried out by the Roads and Transport Authority, according to a statement from the Dubai Media Office. The expansion is estimated to increase vehicle capacity at the exit from 3k to 4.5k cars per hour and cut travel time from the road to Al Rebat Street by 60% to 4 minutes.

PHARMA-

Dubai-based healthcare company Pharma 1 Drug Store obtained exclusive commercialization rights for FDA-approved contraceptive gel Phexxi in the Middle East under a license and supply agreement it signed with US manufacturer Evofem Biosciences, according to a statement from the latter. Pharma 1 Drug Store will apply for regulatory approval of Phexxi in the UAE in the “very near future,” CEO Abdulwahab Atfahsaid, adding that it will hit shelves immediately after approval is obtained. The pharma firm will be able to sell it in Kuwait, Saudi Arabia, Qatar, and other unspecified countries in the region.

AVIATION-

Air India Express adds a new route to Abu Dhabi: Indian budget airline Air India Express has launched a new route from Bengaluru to Abu Dhabi, where it will run four weekly flights on Tuesdays, Thursdays, Saturdays, and Sundays, according to Gulf News.

RETAIL-

The world’s first Black+Decker retail store just opened in Dubai at Al Ghurair Center, according to a statement picked up by Zawya. The US home appliances giant is looking to launch more stores in the west of Dubai before expanding into Abu Dhabi, Mustafa Riaz, CEO of Black+Decker’s UAE partner Al Wifaq General Trading, said.

COMMODITIES-

Abu Dhabi launches platform for food security data: The Abu Dhabi Agriculture and Food Safety Authority launched a platform to track data on agricultural production and strategic food reserves and waste, the Abu Dhabi Media Office stated. The platform also provides insights on supply and demand levels and forecasts on potential changes in food prices, production levels, and environmental threats.

TELECOMS-

Moody’s affirmed e&’s Aa3 long-term rating with a stable outlook, citing its strong market position, robust financials and strategic global expansion, Al Bayan reports.

TAX-

The Federal Tax Authority has launched a training program for qualified tax experts, Wam reports. The program targets Federal Tax Authority staff, university students and graduates, and tax specialists, aiming to employ skilled aspirants in tax administrations.

FINTECH-

Dubai-based fintech company Quantix, an AstraTech subsidiary, will be able to offer loans after receiving the first Finance Company License from the CBUAE, Wam reports. The license enables Quantix to provide microfinancing and retail financing services through its digital platforms, including personal loans, short-term credit, vehicle loans, BNPL, RNPL (Rent Now, Pay Later),and SNPL (Send Now, Pay Later).

Background: The CBUAE introduced regulations for short-term credit in January requiring BNPL providers to apply for a finance company license, and implementing a cap on credit lines and fees.

BANKING-

The National Bank of Ras Al Khaimah’s (Rakbank) USD 600 mn social bond issuance received a Baa1 rating with a stable outlook from Moody’s, according to a disclosure (pdf).

BACKGROUND- Rakbank issued the first-ever public social bond in the GCC — a USD 600 mn, five-year EUR Medium-Term Note bond — under its Social Finance Framework. The issuance was 3x oversubscribed and received a BBB+ senior unsecured long term rating from Fitch Ratings.

“Long India, short China” may get a boost when MSCI rebalances its emerging markets index next month

A review of the MSCI emerging markets index in August could see India overtake Taiwan and become the second-heaviest-weighted market in the index, right behind China, the Financial Times writes.

What’s happening? Rising share prices, strong corporate earnings, and fresh paper in the market “have pushed India to just under a fifth of the MSCI emerging markets index while China has fallen to a quarter, from more than 40 per cent in 2020,” the FT writes.

More weight to India would confirm fund managers’ current bias: “The two consensus trades in emerging markets today are ‘long India, short China’,” Varun Laijawalla, an EM portfolio manager at asset manager NinetyOne, said.“The valuation spread between these two markets is as wide as it’s ever been.”

MARKETS THIS MORNING-

It’s red as far as the eye can see in Asia this morning as shares there tracked yesterday’s big dip on Wall Street, where jitters about the commercial viability of AI saw the Nasdaq 100 turn in its worst single-day performance since 2022. The Nikkei was down more than 3%, the Kospi off almost 2%, and the ASX 200 had lost nearly 1% as of dispatch time this morning.

Chinese shares are also taking a hit: Hong Kong’s Hang Seng is down 0.5% and the Shanghai Composite has dipped 0.4%.

Futures suggest that European equities will also face selling pressure at the opening bell later this morning, though perhaps less sharp than in Asia and the US (Europe isn’t exactly a hotbed of tech innovation). Wall Street stock futures gained slightly in overnight trading, implying that traders may think yesterday’s selldown was a bit too sharp.

What to watch for: Plenty of Big Tech earnings next week will provide fresh catalysts, as we note in this morning’s Big Story Abroad, above.

ADX	9,263	+0.3% (YTD: -3.3%)
DFM	4,228	+0.3% (YTD: +4.2%)
Nasdaq Dubai UAE20	3,666	+0.4% (YTD: -4.9%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.9% o/n	5.0% 1 yr
TASI	12,101	0.0% (YTD: +1.1%)
EGX30	29,090	-0.4% (YTD: +16.9%)
S&P 500	5,427	-2.3% (YTD: +13.8%)
FTSE 100	8,153	-0.2% (YTD: +5.4%)
Euro Stoxx 50	4,861	-1.1% (YTD: +7.5%)
Brent crude	81.35	-0.4%
Natural gas (Nymex)	2.12	+0.3
Gold	USD 2,447	-0.3%
BTC	USD 64,414	-1.9% (YTD: +47.5%)

THE CLOSING BELL-

The DFM rose 0.3% yesterday on turnover of AED 382.0 mn. The index is up 4.2% YTD.

In the green: National International Holding Company (+14.7%), Parkin (+11.8%) and Mashreqbank (+5.4%).

In the red: BHM Capital Financial Services (-9.8%), Al Ramz Corporation Investment and Development (-8.1%) and Takaful Emarat (-4.9%).

Over on the ADX, the index also closed up 0.3% on turnover of AED 999.4 mn. Meanwhile Nasdaq closed up 0.4%.

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.

14 August (Wednesday): UAE to participate in ceasefire talks co-mediated by the US and KSA between the warring factions in Sudan.

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

4-5 September (Wednesday-Thursday): 2024 International Government Communication Forum, Expo Centre Sharjah, Sharjah.

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.

30 September (Monday): Dubai Podfest, World Trade Center, Dubai.

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.

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