Fujairah is developing a petroleum logistics zone in Egypt

1

WHAT WE’RE TRACKING TODAY

THIS MORNING: Adia eyes stake in Vodafone Idea? + Flying taxis could come earlier than expected

Good morning, wonderful people, and happy FRIDAY. We close out the week with an issue packed with a deluge of earnings from the likes of Emaar and Spinneys, and a lot of activity from UAE companies in Egypt.

THE BIG STORY here at home is Fujairah inking an agreement with Egypt to develop a USD 3 bn petroleum logistics zone in El Alamein.

WEATHER- Our spell of rain looks to be over, with clouds dissipating and temperatures rising to 41°C in Abu Dhabi, before cooling to an overnight low of 33°C. In Dubai, the mercury hits 40°C today, with an overnight low of 33°C.

WATCH THIS SPACE-

#1– Joby is bringing air taxis to the UAE earlier than expected: Electric aircraft developer Joby Aviation announced its plans to launch battery-powered air taxis in Dubai by late 2025, CEO JoeBen Bevirt said in the company’s 2Q earnings call. The company will kick off infrastructure work later this year, begin initial flights in early 2025, and aims for full commercialization by year-end.

REMEMBER- This new timeline is ahead of the previously agreed-upon 2026 launch date set with Dubai’s Road and Transport Authority in February. The taxis will be designed to carry a pilot and four passengers at speeds of up to 200 miles per hour, slashing journey times from DXB to Palm Jumeirah to 10 minutes, down from 45 minutes by car.

#2- Adia eyes Indian govt’s Vodafone Idea stake -report: The Abu Dhabi Investment Authority (Adia) is reportedly among the shortlisted bidders for the Indian government’s 23.15% stake in Indian telco Vodafone Idea, Indian paper the Financial Express reports, citing people in the know. Qatar’s sovereign wealth fund Qatar Investment Authority and Singapore’s Temasek are also competing to acquire the stake, with talks still in the early stages.

Background: The Indian government, which became Vodafone’s largest shareholder in 2023 with a 32% stake, saw its stake reduced to 23.15% following the telco’s INR 180 bn (c. USD 2.14 bn) follow-on-public offering — the largest follow-on public offer in India to date. The Indian government aims to raise between USD 2.2-2.4 bn by the end of FY 2024 by offloading various stakes in state-owned companies.

Adia seems to be bullish on Indian investments: The latest news comes on the heels of a series of potential bids by the sovereign wealth fund in various Indian companies. Most recently, Adia kicked off talks with EQT Baring Private Equity for a 10% stake in education loan provider HDFC Credila Financial Services. An Adia-backed consortium is also bidding to buy a 51%, USD 4.8 bn stake in Indian food brand Haldiram. Adia and Qatar Investment Authority were also among 50 investors backing Indian conglomerate Adani’s power distribution arm Adani Energy Solutions’ secondary share sale, which is worth up to USD 1 bn.

#3- The government has banned oil tankers flying Eswatini’s flag from arriving at Emirati ports, distancing itself from vessels associated with transporting Russian oil, Bloomberg reports, citing a government circular (pdf) posted on the Port of Fujairah website. Eswatini is new in global shipping, with no ships sailing under its flag in 2023. While most of these ships’ ownership is unclear, several Eswatini-flagged tankers have been involved in transporting oil produced in Russia and Iran, according to Kpler data.

Not the first flag banned: The decision follows a circular at the beginning of the year, which prohibited Cameroonian-flagged vessels due to concerns that many of the ships have been assembled to transport sanctioned Russian oil.

THE BIG STORY ABROAD-

Early last week, US jobs data fueled one of the biggest global market routs in years. Yesterday, jobless data fueled a big comeback — just another day in the financial markets rollercoaster of 2024.

Wall Street stocks notched their best day since 2022, with the S&P 500 up 2.3% and the tech-heavy Nasdaq up 2.9%, helping make up some of the losses made earlier this week.

The unwinding of carry trades is getting a lot of attention in the foreign press. Reuters has a handy in-depth primer on the impact of the Bank of Japan’s moves on global markets, with a historical look at the bank’s intervention with the currency, while Bloomberg looks more broadly at JP Morgan’s data on the unwinding of carry trades over the past year. We have more in Planet Finance, below.

The US is also making headlines on the politics side for several reasons:

#1- The US, Qatar, Egypt are calling for a round of Gaza ceasefire talks next Thursday in Doha or Cairo to “close all remaining gaps,” the countries said in a statement. The move comes as the region braces for an Iranian attack on Israel in the wake of a string of Israeli killings of Hamas and Hezbollah officials.

#2- Former President Donald Trump has challenged his opponent, Vice President Kamala Harris, to three debates, with the first set to take place on 10 September. (The Guardian | Semafor)

IN TECH NEWS- Fellow iSheep (and fans of more compact tech), Apple’s Mac Mini — which will run on its new M4 chip — will be its smallest desktop computer yet, sources told Bloomberg. The new model is due for release later this year.

OLYMPICS-

It’s almost a wrap at the Paris Olympics 2024, with the final ceremony slated to take place on Sunday. Here’s what not to miss on the final days of the competition:

TODAY-

#1- Four boxing finals are taking place today, with Algeria’s Imane Khelif gunning for gold in a fight against China’s Yang Liu later tonight.

#2- Spain takes on hosts France in the football final of the Olympics today at 8pm UAE time, setting up the former for its second trophy this year or for France to take home the gold for the first time in 40 years — either way, it’ll be the first time a European side takes home gold since Spain in 1992.

#3- Plus: The US women’s basketball team will face off against Australia; while the breaking bronze medal is up for grabs.

TOMORROW-

Thirty-nine gold medals are up for grabs tomorrow in the busiest single day for gold in the competition for decades. Keep an eye out for the women’s football final between US and Brazil; the men’s basketball final between the US and hosts France; men’s handball final (also) between US and France; 4x400m relays; the men’s marathon; and water polo women’s finals.

SUNDAY-

The final day of the Olympics brings with it a few exciting events, including women’s sprint, women’s weightlifting, women’s basketball, and men’s water polo. And of course: the closing ceremony, set to take place 11pm UAE time at the stadium.

The medal standings now at the Paris Olympics:

USA (30 gold, 103 overall)
China (29 gold, 73 overall)
Australia (18 gold, 45 overall)
France (14 gold, 54 overall)
UK (13 gold, 51 overall)

Want to see when your favorite sport is on? Check out the official schedule here.

MEANWHILE- Are you planning to be in Egypt on 24 September? You may be interested in attending our 2024 Enterprise Finance Forum. Seating is strictly limited at our flagship, invitation-only forum for C-suite executives and other senior leaders.

Why attend? We’re in the early days of a generational realignment of power in our industry — in our region and beyond — and on the cusp of the biggest intergenerational transfer of wealth the world has ever seen. With that as the backdrop, we’re going to take stock of where we stand six months after the float of the EGP and ask what’s next for finance in Egypt and the wider region. Among the questions we’ll be asking:

What roles will Egypt, Saudi and the UAE play in the regional industry going forward?
What are foreign investors looking for right now?
Is real estate the only asset class in Egypt?
What does the next generation of leaders think as they take over established family businesses?

Do you want to request an invitation? Tap or click the image below.

MARKET WATCH-

Abu Dhabi National Oil Company (Adnoc) has set the official selling price for its benchmark Murban crude at USD 83.8 per barrel for September, up from August’s USD 82.52, Reuters reports.

***
DID YOU KNOW that we also cover Egypt and Saudi Arabia?

Tap or click here to get your own copy of EnterpriseAM UAE delivered every weekday before 7am UAE time — without charge, thanks to our friends at Mashreq.
***

Fujairah to establish USD 3 bn logistics zone in Egypt

Fujairah has inked an MoU with Egypt to build a USD 3 bn petroleum logistics zone at Al Hamra Port on the Mediterranean coast, according to a statement by the Egyptian Cabinet. The construction of the zone is expected to take three years after kicking off in 1H 2025, following the completion of technical studies, a senior Egyptian official told Asharq Business.

Still ironing out the details: The emirate is currently negotiating with Egypt’s petroleum authority to decide on whether to develop the zone jointly at Al Hamra Port in El Alamein, or whether the emirate will acquire the plot independently for a fee, the official revealed.

We knew this was coming: Last April, the emirate signed a preliminary agreement with Egypt and Adnoc petrochemicals JV Borouge to set up a freezone focused on the production, storage and trade of oil and its derivatives. The emirate also discussed investing in Egypt’s petroleum sector during a visit by Egyptian Petroleum minister Karim Badawi to Fujairah last month. The two sides talked about partnering to develop joint projects, aimed at enhancing the Egyptian sector’s capacities.

Fujairah will help ramp up Egypt’s energy supply: Under the agreement, Fujairah might export petroleum products to the local Egyptian market through Fujairah Oil Industry Zone’s partnerships with global oil and gas suppliers, by “offering a competitive edge to the Egyptian General Petroleum Corporation,” the statement reads.

Egypt to get an Emirati industrial zone? The UAE and Egypt are also in talks to build an Emirati industrial zone in Egypt’s East Port Said, which would include solar and wind energy, sewage treatment, seawater desalination, and aluminum manufacturing projects, according to a statement by the Egyptian Industry and Transport Ministry. The zone could also be a freezone or special economic zone exempt of customs duties, the statement said.

Masdar is building another wind farm in Egypt

A new Masdar wind project in Egypt? Egypt’s Electricity ministry is reportedly set to sign an agreement with state-run renewables giant Masdar for a 200 MW wind farm, an Egyptian government source told EnterpriseAM. The project has an investment ticket of USD 180 mn.

The details: The project will be developed under a build-own-operate model, with the Egyptian Electricity Transmission Company (EETC) set to be the offtaker of the generated electricity throughout the project’s lifetime. EETC is currently reviewing the final terms of the agreement.

What’s next? Madar is currently working with a number of unnamed banks to submit a financial proposal within a month, the source added. A meeting will also be held in the upcoming weeks to discuss the plans for different phases of the project.

Masdar 💚 Egypt: An Infinity Power-Hassan Allam Utilities-Masdar consortium reportedly received the land for their USD 11 bn, 10 GW wind farm project in Sohag in in July. The consortium is expected to reach financial close and break ground on Egypt’s largest wind energy project — which is also set to be one of the largest wind farms globally and the largest in Africa — in March 2026. The consortium, alongside global energy giant BP, will also set up an 8 GW green hydrogen and ammonia plant in the Suez Canal Economic Zone.

Peak earnings season

EMAAR-

Real estate developer Emaar Properties’ net income attributable to shareholders rose to AED 5.3 bn in 1H 2024, according to its website. Meanwhile, revenues rose 17% y-o-y to AED 14.4 bn during the six-month period, according to its earnings release (pdf).

The developer saw its sales leap 56% y-o-y, reaching a record AED 31.5 bn during the first six months of 2024, with 2Q 2024 sales outperforming sales in the first quarter. The record sales have bolstered Emaar’s revenue from its backlog of property sales to AED 90.1 bn, up 43% y-o-y — set to sustain Emaar over the next 4-5 years.

REMEMBER- In real estate, sales ≠ revenues. With off-plan sales dominating the industry, most real estate companies book a sale when you sign a contract to buy a home. But they only record (some or all) of the value of the unit it sold you when it (a) delivers the unit to you or (b) hits a percentage completion on a total project. In most cases, then, revenues are composed of sales from past periods, while sales in a given quarter will be recognized as revenues in the future when units are completed or delivered.

How Emaar’s subsidiaries performed: Emaar Development booked AED 7.3 bn in revenues in 2Q 2024, while Emaar Malls saw its revenues reach AED 2.8 bn in 1H 2024. Emaar’s hospitality, leisure, and entertainment divisions boosted its revenues 9% y-o-y, contributing AED 1.8 bn, in the first half of the year.

SPINNEYS-

Spinneys logs first post-IPO financial results: Spinneys’ net income grew 17.7% y-o-y to AED 71.8 mn in 2Q 2024, according to the company’s second financial statements (pdf) filed with the DFM. The company booked AED 782.8 mn in revenues, up 9% y-o-y.

On a six-month basis, Spinneys’ bottom line grew 15% y-o-y to AED 146.5 mn in 1H 2024. The company’s revenues grew 10% y-o-y to AED 1.6 bn on the back of a 9.8% increase in same store sales, according to a separate earnings release (pdf). The growth in revenues was bolstered by the opening of four new locations in Dubai — Al Khawaneej, Sobha, The Kitchen by Spinneys in Dubai Mall — and its first store in Riyadh, Saudi Arabia.

First post-IPO interim dividends: The company’s board approved interim dividends of AED 103 mn for 1H 2024, set to be distributed this month.

REMEMBER- Spinneys debuted on DFM in May: Al Seer Group listed 900 mn of its shares — equivalent to a 25% stake — in Spinneys on the DFM earlier in May, raising AED 1.38 bn after receiving more than AED 71 bn in orders.

ADNOC DISTRIBUTION-

Abu Dhabi National Oil Company (Adnoc) Distribution reported a 12.9% y-o-y increase in net income attributable to shareholders to AED 622.8 mn in 2Q 2024, according to its financials (pdf). The company’s revenues rose 8% y-o-y to AED 8.78 bn, driven by increased fuel volumes and higher selling prices on the back of rising crude oil prices and growth in non-fuel retail business, Adnoc Distribution said in its earnings reports (pdf).

On a six-month basis, Adnoc Distribution saw its net income attributable to shareholders rise 7% y-o-y to AED 1.17 bn, attributable to the increased field volumes and selling prices and the consolidation of TotalEnergies Marketing Egypt. The fuel retailer booked AED 17.5 bn in revenues, increasing 8.7% y-o-y in 1H 2024.

Dividends: Adnoc Distribution proposed dividends of USD 350 mn for 1H 2024, set to be distributed in October 2024, the company said in its earnings release (pdf).

Looking ahead, the fuel retailer plans to invest between USD 200-300 mn in CAPEX during 2024, with 70% of the sum to be allocated towards “growth-focused initiatives.”

ETIHAD AIRWAYS-

Etihad Airways saw its income after tax rise 48% y-o-y to AED 851 mn in 1H 2024, according to an earnings release. The Abu Dhabi-based carrier’s revenue increased 21% y-o-y to AED 11.7 bn during the same period, fueled by a 24% y-o-y increase in passenger revenues due to the expansion of its network, the statement added. The UAE carrier also saw a 10% y-o-y increase in cargo revenue fueled by increased demand and cargo fleet capacity expansion. The carrier saw a 38% y-o-y increase in passenger numbers to 8.7 mn during the period.

More fleet expansion ahead: Etihad Airways added 16 more aircrafts to its 92 fleet, including three A321neos, and is expecting to add more than 20 new generation aircraft to its fleet in the next 18 months that aim to reduce emissions and increase efficiency by 20% compared to previous models.

Etihad has been on a roll: Etihad Airways saw its income after tax rise 791% y-o-y to a record AED 525 mn in 1Q 2024, and booked AED 5.7 bn in revenues for the quarter, up 21% y-o-y. Etihad’s parent company ADQ is potentially going after both a traditional IPO and direct listing on ADX at the end of the year, with the offering expected to raise as much as USD 1 bn. The airline tapped Abu Dhabi Commercial Bank, Bank of America, BNP Paribas, and Morgan Stanely as joint bookrunners as advisors back in May.

The airline has met most regulatory requirements, though a date has not yet been set, CEO Antonaldo Neves told Sky News Arabia. Neves stated that while the majority of IPO criteria have been fulfilled, the timing will hinge on shareholder approval. Neves also mentioned plans to expand its global network by adding 10 new destinations and aims to triple passenger numbers compared to 1H.

RAK PROPERTIES-

Ras Al Khaimah developer RAK Properties’ net income rose 9% y-o-y to AED 47.6 mn in 2Q 2024 as the developer saw robust demand and successful project launches during the first half of the year, according to its quarterly financials (pdf) and earnings release (pdf). Meanwhile, revenues rose 26.7% y-o-y to AED 320.6 mn during the quarter.

In 1H 2024, net income rose 1.9% y-o-y to AED 89.1 mn, while revenues grew 19.3% y-o-y to AED 610.4 mn.

Looking ahead: The developer is forecasting further revenue growth on the back of a solid pipeline of developments and support from the Ras Al Khaimah government, which increased its stake in the company to 34%, up from 5%, earlier this year.

DEWA-

Dubai Electricity and Water Authority (Dewa) posted a 3.5% y-o-y decline in net income to AED 1.91 bn in 2Q 2024, according to the authority’s financials (pdf). The company’s revenues rose 7.8% to AED 7.86 bn.

The company’s 1H saw a similar result: The company’s net income dropped 6.6% y-o-y to AED 2.55 bn in 1H 2024 due to the impact of the corporate tax and higher appreciation, while revenues rose 7.3% to 13.66 bn over the same period. Revenue growth came on the back of and increase in demand for electricity, water and cooling services, the authority said.

What they said: “The demand for power and water in 2024 grew by 6.7% and 4.3% respectively reflecting continuous growth in Dubai,” Dewa CEO Saeed Mohammed Al Tayer said in a separate statement (pdf).

DUBAI INVESTMENTS-

Dubai Investments’ net income rose 22% y-o-y to AED 289.1 mn 2Q 2024, according to the company’s financial statements (pdf). The company recorded AED 1.24 bn in revenues during the quarter, up 22% y-o-y. On a six-month basis, Dubai Investments reported a 27% y-o-y drop in net income to AED 401.5 mn in 1H 2024, on revenues of AED 2.03 bn (relatively flat y-o-y).

ARAMEX-

Logistics outfit Aramex’s net income fell 83% y-o-y to AED 3.1 mn in 2Q 2024, according to its financial statements (pdf). In a separate earnings release (pdf), Aramex attributed the y-o-y decrease to seasonal challenges in 2Q — including adverse weather conditions and public holidays — resulting in slower business activity and fewer operational working days. The seasonal impact is estimated at AED 45 mn in lost revenues and AED 8.8 mn in lost net income. The company recorded AED 1.5 bn in revenues, up 8% y-o-y.

On a six-month basis, Aramex saw its bottom line rise 17% y-o-y to AED 49.8 mn. The company’s top line also increased 8% during the same period to AED 3.04 bn, buoyed primarily by new clients and improved sales, especially in international and domestic express operations.

Looking ahead: “Aramex is poised to sustain its growth momentum across key product lines in the second half of the year,” the release said, adding that the company will continue to make strategic investments in infrastructure and talent to broaden its customer base. Full-year revenues are projected to grow at 8-9% in 2024.

DANA GAS-

Sharjah’s Dana Gas saw its net income increase 2.5% y-o-y to AED 124 mn in 2Q 2024, according to the company’s financials (pdf). The company also penciled in a 2.3% y-o-y increase in its net revenue to AED 267 mn. Improved margins for the period mitigated a 7% revenue decline caused by lower realized prices, Dana Gas said in a separate earnings release (pdf).

For the first half of 2024, Dana Gas saw its net income fall 13.5% y-o-y to AED 263 mn on the back of lower realized prices at its Khor Mor gas field in Iraq’s Kurdistan region, as well as lower production output in Egypt primarily due to natural field declines. The energy company’s revenues reached AED 557 mn, marking a 5% y-o-y decline.

Production levels in Iraq rose 3%, fueled by higher gas volumes for local power plans amidst growing demand. A new payment mechanism with the local Iraqi government has improved receivables, with regular payments since November 2023 reducing past dues, according to Dana Gas CEO Richard Hall.

Dana Gas and its partners are finalizing a new completion date for the KM250 project following the drone attack on the Khor Mor gas field in late April and will update the market on the revised timeline and costs “soon.”

UNIKAI FOODS-

Dubai-based Unikai Foods reported a bottom line of AED 10.2 mn in 2Q 2024, up 27.6% y-o-y, according to the company’s unaudited financials (pdf). The company’s revenues increased 14.8% y-o-y to AED 109.4 mn. On a 1H basis, the company’s net income increased 71% y-o-y to AED 14.6 mn, while revenues rose 18.5% y-o-y to AED 205.9 mn.

UNION COOP-

Union Coop’s net income after tax increased 21% y-o-y in 1H 2024 to AED 163.1 mn, according to its financial statements (pdf). The company booked revenues of AED 962.3 mn, up 5% y-o-y during the same period.

Dubai’s RTA bags Prince Michael International Road Safety Award

Dubai’s Roads and Transport Authority (RTA) received the Prince Michael International Road Safety Award in the Safer Road Users category, it said in a statement. The award was in recognition of the RTA’s safety training program for motorcycle delivery drivers in Dubai, which saw it collaborate with accredited driving institutes to train and certify instructors, who then trained motorcycle delivery drivers according to a rigorous safety system.

Foreign Trade Minister Thani bin Ahmed Al Zeyoudi named Rorix Chair

Trade minister to chair new IHC trade arm: The International Holding Company (IHC) named Foreign Trade Minister Thani bin Ahmed Al Zeyoudi (LinkedIn) chairman of its newly formed global finance and trade facilitation holding company Rorix Holdings, Wam writes.

ICYMI- Abu Dhabi’s USD 895 bn IHC set up a new global finance and trade facilitation holding company dubbed Rorix Holdings on Tuesday. Rorix Holdings will focus on financial services, trade finance, advisory, commodities, and trade ins.

Wynn Resorts invests USD 514.4 mn to date in Marjan gaming resort + earmarks land for future development

HOSPITALITY-

Wynn Resorts invests USD 514.4 mn to date in Marjan gaming resort: High-end hotel developer and operator Wynn Resorts poured some USD 356.5 mn into its 40%-owned joint venture with local developer Marjan and RAK Hospitality in 2Q 2024, which is developing the USD 3.9 bn gaming resort Wynn Al Marjan, the company said in its earnings release for the quarter.

The details: The funds went towards the acquisition of its portion of the JV’s acquisition of 155 acres of land in Marjan Island, making up about a quarter of the island’s total land mass, including 70 acres earmarked for future development. The latest investment brings its total investments in the project to date to USD 514.4 mn, out of a forecast USD 900 mn share of investments.

The developer also made “substantial progress” on debt financing for the project, Zawya quotes CEO Craig Billings as saying during an earnings call, adding that it expects to finalize this by the end of the year.

!_Subhed_! INVESTMENT-

Adani Airports forms new Abu Dhabi-based subsidiary: Adani Group’s airport management arm Adani Airport Holdings established a wholly owned subsidiary, dubbed Global Airports Operator, in Abu Dhabi to oversee investments and operations outside of India, the company said in a filing (pdf) on India’s National Stock Exchange. The formation of the new subsidiary is part of Adani’s plan to expand its aviation network in Eastern Africa, South Asia, and Southeast Asia, Jeet Adani told Bloomberg.

!_Subhed_! M&A-

ADQ-owned F&B firm Agthia has earmarked AED 403 mn for potential mergers and acquisitions, Agthia’s president of the snacking segment and government relations, Mubarak Al Mansoori, told Al Etihad, highlighting that the company is actively seeking expansion opportunities across the region. Agthia primarily targets markets with large populations and high consumption trends for acquisitions, Al Mansoori added.

!_Subhed_! FINTECH-

UAE-based fintech Sav secured in-principle approval for a Category 4 license from the Dubai Financial Services Authority, enabling the company to integrate broader financial services once fully licensed, a press release reads. Sav will be able to expand its offerings to include arranging money services, advising on and arranging investments, and managing credit arrangements.

NBFS-

#1- Indian Andromeda + Dubai’s Wealth Link Solutions provide home loans for expat Indians: Indian loan distributor Andromeda has partnered with Dubai-based Wealth Link Solutions to expand into the Middle East, according to a press release. With this expansion, the lender is targeting the region’s 9.5 mn non-resident Indian population, offering them access to home loans for their properties in India.

#2- Corporate banking solutions firm Banqeta will provide Europe Emirates Group’s clients with corporate bank accounts that they can open online, as well as digital wallets, multi-currency accounts, and Visa payment cards, a press release reads.

#3- Network International expands into West Africa: Dubai-based financial services firm Network International has launched a USD 250 mn cloud-based and integrated payment suite, dubbed Network One, in Nigeria, the Cable cites the company as saying at a media briefing earlier this week. The platform will serve banks, telecommunications operators, fintechs, and mobile network operators in Nigeria and the West African region.

!_Subhed_! TECH-

#1- UAE-Vietnam tech skill development partnership: UAE-based Meerana Technologies and Vietnamese technology company FPT agreed to enhance digital skills among Emiratis with specialized AI and software training programs, the Dubai Media Office writes.

#2- InSky Robotics sets up shop in RAK: Australian tech company InSky Robotics is establishing its first GCC facility, dubbed VIM Solar Robotics, in Al Hamra, Ras Al Khaimah, according to a press release. The facility will assemble, store, and supply Voltimate robotic cleaners. The move comes as the company looks to cater to heightened demand in the GCC region for robotic solutions in the solar energy sector.

!_Subhed_! TRANSPORT-

Abu Dhabi has a new plan in place to improve traffic safety, launched by the Traffic Safety Technical Committee, comprising members from the Integrated Transport Centre, Abu Dhabi Police, and the Abu Dhabi Department of Health, Wam reports. The plan, dubbed Work Accelerators, will see the entities form teams to develop and implement plans focusing on traffic accident analysis, pedestrian and micro-mobility safety, delivery driver safety, freight transport safety, driver behavior, and road speed limits.

!_Subhed_! IPO-

Adia anchors Indian baby products retailer ahead of IPO: Abu Dhabi Investment Authority (Adia) invested USD 8 mn in Indian baby products retailer FirstCry ahead of its USD 501 mn IPO on the Bombay Stock Exchange, Reuters reports. FirstCry raised a total of INR 18.86 bn (USD 224.5 mn) from institutional investors, and USD 3.36 bn total, with the IPO receiving bids for some 606.4 mn shares, approximately 12x the shares available, according to exchange data.

!_Subhed_! MANUFACTURING–

FBB Tech to help ramp up Egypt’s exports: UAE-based company FBB Tech and electrical appliances manufacturer Hisense Egypt will develop a USD 38 mn manufacturing project in Egypt’s Suez Canal Economic Zone (SCZone), after inking a contract with Chinese industrial developer TEDA Egypt, Wam reports.

The game plan: The project will have a production capacity of 2.5 mn units, with the first phase focused on televisions, audio recorders, and monitors. Some 70% of production will be exported to countries in Europe, North and East Africa, and the Middle East, while the remaining 30% will be allocated to the Egyptian market.

!_Subhed_! INS.-

Phinsys sets up shop in DIFC: Phinsys, a London-based company offering intelligent automation services for finance and accounting in the ins. sector, opened a new regional office in Dubai International Financial Centre (DIFC), according to a statement.

The great unwinding: Global investors reverse three-quarters of the year’s carry trade

Three-quarters of global carry trades have been reversed, wiping out most of their gains for the year, according to financial experts at JPMorgan, Bloomberg reports. Recent market shifts have eroded its gains by about 10% since May — a change that suggests that investors are pulling away from this strategy, which had been profitable since the end of 2022.

Enterprise, what is a carry trade? Carry trade is a strategy where investors borrow money at low interest rates in one currency and invest it in another country in the local currency with higher interest rates. This can potentially yield high returns when market conditions are favorable.

So what’s the problem? The global carry trade strategy is currently “not offering an attractive risk-reward,” the investment bank said. When market conditions change unexpectedly, the potential rewards may not be enough to justify the risks, especially with global events such as the US elections potentially influencing markets further.

With the instability of global markets, differences in interest rates have also become less reliable. For example, changes in monetary policy on the central bank level — such as unexpected interest rate changes made by the Federal Reserve and the Bank of Japan — influence global borrowing and lending conditions. Case in point: The historically popular JPY-USD carry trade lost its appeal to investors this week when BoJ’s interest rate hike fueled an increase in the value of the JPY.

Is recovery on the cards? While there might be a small chance for recovery in the carry trade this month, the overall strategy is currently not as appealing as it has been until recently due to heightened risks, JP Morgan analysts concur.

This week’s global unwinding can also be credited in a large part to investors and macro funds unwinding their positions in carry trades, with tech stocks likely suffering the brunt due to carry trade-funded positions in the asset class, analysts told Reuters.

MARKETS THIS MORNING-

Asian markets are rebounding early this morning after Wall Street notched its best day in two years, with the Nikkei up 1.6%, the Topix and South Korea’s Kospi each up 1.4%. Meanwhile, Wall Street futures opened lower, with S&P 500 futures briefly down 0.3% ahead of dispatch time.

ADX	9,255	+0.1% (YTD: -3.4%)
DFM	4,196	0% (YTD: +3.4%)
Nasdaq Dubai UAE20	3688	+0.6% (YTD: -4%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5% o/n	4.6% 1 yr
TASI	11,667	-0.5% (YTD: -2.5%)
EGX30	28,750.8	+0.4% (YTD: +15.5%)
S&P 500	5,319	+2.3% (YTD: +11.5%)
FTSE 100	8,145	-0.3% (YTD: +5.3%)
Euro Stoxx 50	4,669	+0.7% (YTD: +3.3%)
Brent crude	USD 79.01	+0.87%
Natural gas (Nymex)	USD 2.13	+0.71%
Gold	USD 2,463.3	+1.27%
BTC	USD 61,383.9	-0.5% (YTD: +39%)

THE CLOSING BELL-

The ADX rose 0.1% yesterday on turnover of AED 1.27 bn. The index is down 3.4% YTD.

In the green: Bank of Sharjah (+9.4%), Fujairah Building Industries (+8.9%) and Q Holding (+4%).

In the red: Burjeel Holdings (-6%), Al Yah Satellite Communications Company (-4%) and Phoenix Group (-3.6%).

Over on the DFM, rose 0.04% on turnover of 474.8 mn. Meanwhile Nasdaq Dubai rose 0.6%

My Morning Routine: Aka Leung, UAE country manager at Bitget

Aka Leung, country manager of Bitget in the UAE: 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 Aka Leung (LinkedIn), the UAE country manager at Bitget. Edited excerpts from our conversation:

My name is Aka Leung. I am the UAE Country Manager for Bitget. I am based in Hong Kong and my current role focuses on helping boost Bitget’s market share in the MENA region. Four years ago, I was working in a traditional local marketing agency, but I saw a chance in cryptocurrency and [felt] that it would be an important industry in the near future.

I began my crypto career four years ago at Huobi Global, now known as HTX, where I worked on regional growth in Latin America and the Commonwealth of Independent States (CIS) regions. My role then involved increasing the company’s market share by boosting sign-ups, first-time trades, daily active users, and trading volumes.

I noticed NFTs gaining traction in 2022, with NFT platforms like Azuki and Bored Ape launching during that time. At that time I had spent around one year growing [HTX’s] market share. So, I quit my job at Huobi Global and joined a local Hong Kong company focusing on the NFT marketplace, launching various NFT collections and our own launchpad.

I joined Bitget after the NFT heat cooled off, which happened quite fast. I have been at Bitget for around two years. I started as an operations manager, mainly focusing on the CIS and English-speaking regions, especially the UK, Canada, and Australia. I moved to the MENA region about one year ago and am now the UAE country manager, still working to grow our market share in the MENA region. We have achieved significant success, with our daily active users increasing almost tenfold.

I lead a regional team of around six people who help with operations, business development, marketing, social media, and VIP client management. Every morning, I review daily data to evaluate our performance, analyze trading volumes, and sign-up volumes through different channels. I also review transactions from key opinion leaders and approve business development agreements. I plan and manage various platform campaigns and marketing activities, such as launching token campaigns based on recent trends.

Bitget aims to bridge the gap between traditional and crypto finance. Currently, only about 10% of the global population is familiar with cryptocurrency. Many people might have heard of it but are skeptical or unsure about investing. But with the increasing government awareness and supportive policies, like the UAE’s AED stablecoin, there’s a good opportunity to expand the market and educate non-crypto users who are already interested.

As the country manager for the UAE, my responsibility is to help educate local users, many of whom may not be familiar with cryptocurrency.

AI is a major trend in the crypto sector right now. There is a growing focus on AI, with some tokens dedicated to AI development particularly popular right now. AI is an exciting topic, but we’re still in the early stages.

Crypto investors are currently cautious because of market fluctuations, which are influenced by factors such as US government policies, internal factors in the UK, and changes in the value of currencies like the JPY.

However, I believe more people will soon be joining the crypto space. In recent years, there have been crises with some centralized finance (CeFi) platforms and banks, which has led more people to explore decentralized finance (DeFi), especially as Web3 emphasizes DeFi. Unlike traditional systems which require human involvement, DeFi relies on blockchain technology, which enhances investor trust, but we still need time to build up the market and gain more confidence from traditional investors.

For the time being, I believe investors might need some time to settle, especially with the recent significant drops in both traditional finance and crypto markets. The recent global stock market crash has affected crypto exchanges, and now many investors are in a wait-and-see mode as the high fear index has indicated recently. Factors like the US elections have influenced both traditional and crypto markets and I think investors are still observing and waiting for the right [time] to invest.

In the long run, though, I believe more investors will start investing in crypto. Despite the current disruptions in traditional markets, the crypto industry is growing. If you look at trading volumes and active users compared to a few years ago, there’s a clear upward trend. Many people, including some of my friends, are still unfamiliar with crypto, which shows there’s potential for further growth and awareness.

Bitget is exploring getting licensed in MENA markets, but specifics about licensing are not available yet. The UAE is a particularly promising market. There are many high-wealth residents and the government’s regulations are crypto-friendly. Many crypto exchanges are moving their offices to the UAE, which is another reason why we’re bullish on the UAE crypto market. Other countries in the Middle East, like Egypt and Saudi Arabia, have large populations and significant potential.

We’re currently working on localizing our products for different markets. There are many countries to consider, not just the UAE, and each requires a different strategy to effectively target and attract more local users. The UAE’s strong appetite for cryptocurrencies is supported by the government’s favorable regulations, such as the introduction of the AED stablecoin, enabling local users to purchase services and products locally using the stablecoin. I view this regulatory support as just the first step and see it [driving] more companies and investors to the local crypto market in the UAE.

My morning starts with a cup of coffee. I normally wake up at 9am and work until around midnight Hong Kong time because of the different time zones between me and my teammates. I work over 10 hours a day, coordinating with my team, managing various aspects of our operations, including responding to media inquiries and coordinating campaigns and online and offline marketing events.

For my next career goal, I’d like to lead more markets for Bitget other than MENA. This could include English-speaking regions or exploring potential markets in the Asia-Pacific area.

I love going for a drive with no destination in mind when I need to relax after a busy day and on weekends. It helps me clear my head and shake off any stress. On weekends, I like to treat myself by shopping for things like nice watches or Japanese Gundam figures. Other than work, the constants I rely on are coffee and driving to stay focused and motivated.

The best advice I’ve received was from my family: never give up on what you’re doing and believe in yourself. Confidence from within in your own abilities helps you overcome any challenges you face in both your personal and professional life.

CALENDAR

AUGUST

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.

5 September (Thursday): Deadline to apply for the sixth edition of Access Sharjah Challenge.

5 September (Thursday): Deadline to apply for Dubai Future Academy’s FEEL: A Disruptive Futures Program.

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.

15-19 September (Sunday-Thursday): Loop Beyond Borders, 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.

8-9 October (Tuesday-Wednesday)): Global Trade and Supply Chain Summit, 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 October (Saturday): UFC 308: TOPURIA vs HOLLOWAY, Etihad Arena, Abu Dhabi.

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.

19-20 November (Tuesday-Wednesday): Dubai Future Forum.

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.

11-13 December (Friday-Sunday): European-Arab Medical Congress, Abu Dhabi.

Signposted to happen sometime in December:

UAE-China Summit, 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.

MAY 2025

26-28 May (Monday-Wednesday): Arab Media Summit, World Trade Centre, 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 the fall of 2025:

2025 Games of the Future, Dubai.

Signposted to happen sometime in 2026:

The UAE to host the Arab Competition Forum

Signposted to happen sometime in 2028:

Abu Dhabi to host the Chess Olympiad.

Signposted to happen sometime in 2029:

Dubai to host the International Conference on Computer Vision.

Sections

About

Privacy & Support

Get EnterpriseAM daily