ADQ buys into Sotheby’s

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WHAT WE’RE TRACKING TODAY

THIS MORNING: GulfNav’s Brooge acquisition could take place this month

Good morning, wonderful people. We kick off the workweek with a busy issue, with big M&A news from the ADQ and Abu Dhabi Investment Authority.

ADQ has agreed to acquire a minority stake in Sotheby’s, in a move that could see the fine arts collector open up a branch in Abu Dhabi; while an Abu Dhabi Investment Authority consortium has received the greenlight for the GBP 5.41 bn takeover of British investment platform Hargreaves Lansdown. We have more in the news well, below.

BUT FIRST- We’re getting two new anti-money laundering (AML) and counter-terrorism financing (CFT) committees, in line with new government amendments to provisions related to AML and CFT, Wam reports. The amendments will see a National Committee for AML/CFT and Combating the Financing of Illegal Organizations established, as well as a Supreme Committee for the Oversight of the National Strategy for AML/CFT, tasked with assessing and overseeing the effectiveness of strategies and measures rolled out.

REMEMBER- The UAE has been boosting its anti-money laundering efforts in recent years in a bid to get marked off the Financial Action Task Force (FATF) ’s graylist, and it finally did so in February of this year. The government also said it would roll out a national AML / CFT strategy until 2027 in the coming months.

WEATHER- Temperatures have cooled down in Dubai, with the mercury peaking today at 38°C, before cooling to an overnight low 35°C. Abu Dhabi will hit a high of 37°C, and an overnight low of 34°C.

WATCH THIS SPACE-

#1- GulfNav’s Brooge acquisition could take place this month: Nasdaq-listed Brooge Energy will hold an extraordinary general assembly on 26 August to appoint a new board of directors that will initiate signing procedures for its merger with maritime and shipping company GulfNav, Al Bayan reports. An undisclosed financial firm was hired to evaluate the transaction, while Hadef & Partners and Middle East Alliance Legal Consultancy (ME-Alliance) are handling legal affairs.

REMEMBER-Gulfnav submitted a proposal earlier in the year for the structure of the acquisition of oil storage outfit Brooge Petroleum and Gas Investment Company to the Securities and Commodities Authority, after submitting a proposal to fully acquire the company from Brooge Energy back in October 2023. The acquisition was initially expected to close in 4Q 2023. GulfNav said last month it aims to complete the evaluation within the coming weeks.

#2- Petrobras dials back expectations of a potential buyback of Mataripe refinery from Mubadala: Brazil's state-controlled oil firm Petrobras said re-acquiring the Mataripe refinery from Abu Dhabi’s sovereign wealth fund Mubadala is “not a priority,” Bloomberg quotes Petrobras CEO Magda Chambriard as saying. The transaction is “a business like any other proposed to Petrobras,” Chambriard said, adding that the company is currently analyzing a proposal from Acelen, the company Mubadala set up to run the refinery. It has yet to set up the corporate model for a potential repurchase, Petrobras CFO Fernando Melgarejo said, emphasizing that any transaction depends on economic viability.

REFRESHER- Petrobras was said to be finalizing due diligence last month to re-acquire the Mataripe refinery from Mubadala, after selling it for USD 1.65 bn in 2021. Rumors of a potential buyback began circulating earlier this year, when Mubadala signed an MoU with Petrobras to partner on a USD 13.5 bn biofuels project in Brazil.

#3- The UAE is set to participate in the Turkmenistan Investment Forum on 19-20 September, Al Bayan reports. The event will focus on investment prospects in the country’s oil and gas, energy, construction, and agriculture sectors and will feature high-level discussions on the fuel and energy sectors and smart agriculture. Turkmenistan will showcase the ongoing expansion of the Galkynysh gas field as well as the Turkmenistan-Afghanistan-Pakistan-India gas pipeline project, which transports 33 bn meters of gas annually.

UAE energy firms have a foothold in Turkmenistan: Petrofac's UAE-based engineering & construction unit Petrofac Emirates landed a USD 200 mn contract to manage the Galkynysh Gas Field, marking one of the largest engineering, procurement, construction and commissioning (EPC) projects for Turkmengas. Meanwhile, state-owned Dragon Oil has plans to develop oilfields in the country.

DATA POINTS-

#1- The national in-country value (ICV) program has redirected over AED 48 bn to the national economy in 1H 2024, Wam reports. Currently including 31 federal and local entities and national companies, the program saw investments made by ICV certified companies hit nearly AED 205 bn by mid-2024, a 20% y-o-y increase from 1H 2023. National spending on local procurement surged to AED 67 bn in 2023, marking a 25% y-o-y increase

ICV certification? ICV certificates are issued as part of the UAE’s in-country value program, which rewards companies that prioritize localizing supply chains and attracting foreign investments. The certificate hands them an advantage in tenders and contracts.

#2- Public transport users in Dubai grew 6% y-o-y in 1H 2024 to 361.2 mn, with the daily average number of riders reaching near 2 mn during the six-month period, Dubai’s Roads and Transport Authority (RTA) said in a statement. The Dubai Metro saw the lion’s share of users with 133 mn passengers (37%), followed by taxis (27%) and public buses (24.5%). Shared mobility transport methods — including e-hail vehicles, rental vehicles, and on-demand buses — transported some 27.8 mn passengers.

Looking ahead: The RTA aims to increase the share of public and shared transport journeys to 25% by 2030, up from 20.9% by the end of 2023.

THE BIG STORY ABROAD-

The international business press is having another slow morning without one unifying story taking the lead. A few of the stories getting top billing this morning:

From the campaign trail: Kamala Harris is more trusted among American voters to handle the country’s economy than Donald Trump, coming in one percentage point above the former US president in a recent survey, the Financial Times reports. Although Harris’ edge over Trump is narrow, the current vice president polled seven percentage points higher than US President Joe Biden’s performance in US voter sentiment.

Israel is doubling down on its defenses and shoring up resources such as alternative fuel supplies as it expects a retaliatory attack from Iran could be imminent. Iran has vowed to respond to Israel for the assassination of Hamas political leader Ismail Haniyeh in Tehran last month. Meanwhile, Israel is also ordering more displaced Palestinians in Khan Younis to evacuate the area, which it declared a “dangerous combat zone.” (Bloomberg | Reuters)

OLYMPICS-

The 2024 Paris Olympics closing ceremony wrapped overnight at Stade de France, marking the end of the summer games after two and a half weeks of action. The end of the Games earned plenty of attention (New York Times | BBC | The Guardian)

The ceremony featured performances by French band Phoenix, an iconic jump of Tom Cruise from the roof of the stadium, H.E.R., Red Hot Chilli Peppers, Billie Eilish, Snoop Dogg, and Dr Dre.

While Team USA tied with China for gold medals, USA topped the charts for overall medal count as they gear up to host the next 2028 summer games in Los Angeles. The US team is going home with a total of 125 medals, leaving one behind after gymnast Jordan Chiles was stripped of her bronze medal from last week’s floor final after the International Olympic Committee (IOC) ruled against her in a score dispute.

Not leaving the city of love just yet: As the Olympics wind down, the Paralympics are gearing up to kick off. Taking place in Paris as well, the Paralympics will start on Wednesday, 28 August and continue for 11 days.

New games, new boss: Thomas Bach’s 12-year stint as IOC president is coming to an end, as per IOC governance rules limiting each person’s term to 12 years, AP reports.

The medal table:

USA (40 gold,125 overall)
China (40 gold, 91 overall)
Japan (20 gold, 45 overall)
Australia (18 gold, 53 overall)
France (16 gold, 64 overall)

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.

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CIRCLE YOUR CALENDAR-

Dubai is set to host the UAE-Russia Investment Forum on 1 October at the Millennium Dubai Hotel, a press release reads. The one-day event will explore new investment opportunities and address business challenges amid geopolitical changes.

Startup exhibition Gitex Global is scheduled to be held on 14-18 October in Dubai at the World Trade Center, bringing together over 6k startups across the AI, cybersecurity, mobility, edtech, and sustainable tech sectors, among others.

Abu Dhabi will host the International Union for Health Promotion and Education (IUHPE) World Conference on 13-16 May 2025, marking the first time the event is held in the Middle East, Wam writes. Organized by the Abu Dhabi Public Health Centre (ADPHC), the conference will focus on global health challenges, promoting health education, and international collaboration.

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

ADQ to acquire minority stake in Sotheby's for USD 1 bn

Abu Dhabi’s sovereign wealth fund ADQ will acquire a minority stake in the UK’s Sotheby’s in a USD 1 bn investment alongside b’naire Patrick Drahi, who also committed capital to retain his majority stake, an ADQ press release reads. The transaction — expected to close by year end — is meant to trim Sotheby’s debts and drive its global growth, particularly in the Middle East, according to the statement.

The details: ADQ will acquire newly issued Sotheby’s shares, with telecom bn’aire Drahi — who bought Sotheby’s for USD 3.7 bn in 2019 — committing capital to retain his majority stake. A Sotheby’s spokesperson confirmed that ADQ will provide the majority of the investment, Bloomberg reports.

ADQ’s venture in fine arts: The state investor’s stake could open the door for a Sotheby’s branch in Abu Dhabi, complementing the emirate’s efforts to enhance its art and culture scene, according to an ADQ spokesperson, the Financial Times writes.

A change of heart: The partnership with ADQ marks a shift for Drahi, who previously resisted bringing in outside investors. Drahi’s decision to bring in outside investors to help manage Sotheby's likely comes as the bn’aire’s holding company Altice group faces mounting debt, the salmon-colored paper writes.

The fine arts collector is in the red: Sotheby’s has been under financial strain, with its parent company Bidfair reporting USD 3.5 bn in long-term debt as of the end of last year. In 2023, the auction house's revenue dropped to USD 1.36 bn from USD 1.4 bn in 2022. Interest expenses also rose, reaching USD 267 mn compared to USD 218 mn the previous year. This financial pressure led S&P Global Ratings to downgrade Sotheby’s credit rating to B minus, citing declining profitability and elevated leverage.

Abu Dhabi Investment Authority’s consortium to snag Hargreaves in GBP 5.41 bn takeover

Adia, CVC and Nordic Capital now own Hargreaves: A consortium comprising Abu Dhabi Investment Authority’s (Adia) subsidiary Platinum Ivy, private equity firm CVC Capital, and Sweden’s Nordic Capital acquired 100% of UK Hargreaves Lansdown for GBP 5.4 bn after the investment firm accepted the consortium’s final formal offer, according to a London Stock Exchange filing. The consortium expects to close the takeover in 1Q 2025.

Hargreaves co-founders gave the green light: Co-founders Peter Hargreaves and Stephen Lansdown, who together own a 25% stake in the firm, have both agreed to vote in favor of the offer.

The details: The transaction will see Hargreaves’ shareholders receive GBP 11.40 per share, representing a 54.1% premium over its closing price before the Adia-led consortium made its initial bid. The offering will also see the consortium pay out a GBP 0.30 per share dividend for Hargreaves last financial year, ending June 2024. The transaction also offers Hargreaves shareholders an option to roll over some or all of their shares into the consortium’s acquisition vehicle, giving them maximum equity of 35%. Peter Hargreaves plans to reinvest half of his 19.8% stake, and will pocket the remaining GBP 535 mn, according to Reuters, while Lansdown sold his entire 5.7% stake for GBP 309 mn.

This was a long time coming: Hargreaves Lansdown granted Adia and CVC Capital due diligence in July, after the consortium submitted a fourth bid following several rejections, valuing it at around GBP 5.41 bn. Hargreaves’ board said at the time it was willing to recommend the proposal. Investors had reportedly raised concerns over the fairness of the proposed takeover for Hargreaves’ shareholders, with the main sticking point being the weeding out of funds that will be unable to retain their stakes in Hargreaves following its delisting from the LSE, the Financial Times reported earlier.

Where’s the money coming from? The consortium plans to finance part of the acquisition with a GBP 1.72 bn interim senior loan facility provided by a group of private credit funds, including Apollo Global Management and KKR & Co, Bloomberg reports.

The consortium wants Hargreaves to regain ground: “The company now requires substantial investment in an extensive technology-led transformation to improve HL's proposition and resilience, and to drive the next phase of HL's growth and development,” the consortium said, emphasizing the need to improve Hargreaves’ competitive edge in the market.

The story got plenty of ink in international press: Financial Times | The Guardian | Wall Street Journal | The Independent | CNBC

Abu Dhabi Investment Authority invests in Flyr

An Abu Dhabi Investment Authority (Adia) subsidiary has participated in a USD 295 mn funding round for California-based travel startup Flyr, according to a press release. Led by US investment firm WestCap, the funding round valued the company at USD 900 mn, Bloomberg reports, citing people familiar with the matter. Other investors in the round included BlackRock and Streamlined Ventures.

The breakdown: The funding comprised USD 225 mn in a series D round and USD 70 mn in debt from Vista Credit Partners, and brings Flyr’s total raised capital to date to USD 500 mn.

Where are the proceeds going? The startup plans to use the capital injection to develop its product offerings globally and accelerate “modern reservation systems that form the digital foundation for every airline,” according to the statement

Looking ahead, Flyr, which has completed six acquisitions over the past two years, plans to continue its acquisition spree. “[Flyr is] definitely keeping [its] ear to the ground to see if there are other opportunities on the horizon,” CEO Alex Mans told Bloomberg.

About Flyr: Founded in 2013, Flyr develops AI-enabled softwares to help airlines price and plan flights, with a focus on improving revenue performance through forecasting, automation, and analytics.

Sidara subsidiary Dar commissioned to design Ethiopia’s new USD 6 bn airport

Dubai-based Sidara’s engineering consultancy subsidiary Dar Al Handasah has signed an MoU with Ethiopian Airlines for the design of an airport in Ethiopia, slated to become Africa’s largest upon completion in 2029, Reuters quotes Ethiopian Airlines’ CEO Mesfin Tasew as saying at a press conference. Situated near Bishoftu, approximately 45 km from Addis Ababa, the airport will be capable of handling 100 mn passengers each year and accommodating 270 aircraft. The first phase of construction is estimated to cost around USD 6 bn, according to Tasew.

Details: Dar is set to design the new airport facilities and help Ethiopian Airlines select contractors for the airport, Ethiopian state-affiliated broadcasting network Fana quoted Tasew as saying. The airport will cover 35 sq km and will have four runways. The construction of the facility will be split into two phases, with phase one expected to handle around 60 mn passengers annually, and phase two increasing capacity to over 100 mn passengers.

Not the first agreement of the kind this year: Dar Al Handasah inked a five-year contract back in June with Kuwait’s Directorate General of Civil Aviation (DGCA) to supervise construction and design of several facilities at Kuwait International Airport.

Property sales and rents up in Abu Dhabi in 2Q 2024 -ValuStrat

Abu Dhabi’s residential and commercial markets showed “robust growth and stability” in 2Q 2024, according to a report by ValuStrat. Growth came despite declines in off-plan sales and residential ticket sizes in the emirate.

Prices continued to rise in 2Q: ValuStrat’s price index in Abu Dhabi rose 4.4% y-o-y, and 1.3% quarterly in 2Q 2024. Prices for villas in Abu Dhabi rose by 7.3% y-o-y during the quarter, while prices in the apartment segment “stabilized,” with marginal capital gains of 1.4% y-o-y in 2Q 2024.

But average sales value declined for both off-plan and ready units: The average ticket size for off-plan units decreased 18.4% y-o-y during 2Q to AED 2 mn, while off-plan transaction volume decreased by 41% y-o-y, driven by fewer project launches this year. The average ticket size for ready homes also fell by 2.7% y-o-y to AED 2.3 mn, despite a 44.1% y-o-y increase in transaction volume.

On the rentals side: Rates in Abu Dhabi’s rental market grew by 4.4% y-o-y in 2Q 2024, with average residential occupancy rates jumping to 91.6%. Villa rental rates grew 5.7% y-o-y. Meanwhile, apartment rental rates increased 3.2% y-o-y.

CBRE and ValuStrat differ on where price and rental increases lie: CBRE said apartment prices rose in the emirate by 6.2% y-o-y, while villa prices grew 3.9% y-o-y. Rentals for apartments were estimated to have risen 6.6% y-o-y, while villa prices grew at a more marginal 2.5% y-o-y.

REMEMBER- Apartments and villa prices and rentals increased in the emirate in 1H 2024, with luxury apartments seeing the biggest rental hike at 21% y-o-y, while luxury villas saw the biggest sales price growth, Bayut estimated.

THE OFFICE MARKET-

Asking rents in primary commercial districts grew by 13.7% y-o-y, and 9.1% q-o-q, the report adds. Average occupancy in central business districts stood at 88.7% during the quarter.

More earnings roll in

TABREED-

District Cooling company Tabreed saw its net income rise 3% y-o-y to AED 164.5 mn in net income in 2Q 2024, according to the firm’s financials (pdf). Tabreed’s revenues inched up 1.3% y-o-y, reaching AED 611.4 mn during the three-month period, with the company attributing growth to sustained profitability margins and an 8% increase in consumption volumes, according to its earnings release.

On a six-month basis, Tabreed saw its net income dip 29% y-o-y to AED 283.8 mn in 1H 2024. The company’s revenues remained relatively flat at AED 1.08 bn during the same period.

Tabreed signals it’s ready once again to invest in the Egyptian market: The district cooling firm is in talks to expand its operations in Egypt following the launch of its project at Marakez’s Downtown Katameya Mall, CFO Adel Al Wahedi told Asharq Business.

The EGP’s stability is what swayed Tabreed: The company has been hesitant to invest in Egypt because it conducts its activities in local rather than foreign currency, Al Wahedi explained. However, the firm has taken note of the stability of the EGP over recent weeks.

Remember: The firm terminated an EGP 1.6 bn contract with Egyptians for Healthcare Services at the start of the year for its unit CapitalMed’s medical complex in Badr City in Egypt. The company’s CEO Khalid Al Marzooqi said that the pre-float FX crisis had made the project “financially unsustainable.”

It’s also considering issuing green sukuk and bonds to refinance some of its debt, Al Wahedi added.

PLUS- The firm appointed Bakheet Al Katheeri (LinkedIn) as its new chairman, replacing Khaled Al Qubaisi, who has served as Chairman since 2017. Al Katheeri is currently the CEO of Mubadala’s UAE Investments platform, and previously headed Mubadala Energy.

AL ANSARI-

Al Ansari Financial Services saw its net income fall 18% y-o-y in 2Q 2024 to AED 106.7 mn, according to its financial statements (pdf). The company’s operating income remained flat at AED 292.3 mn, cushioned by a 6% y-o-y growth in its remittance segment, signaling a “positive trajectory for the remittance business and a potential reduction in customers’ reliance on the parallel market,” Al Ansari said in its earnings release (pdf).

On a six-month basis, Al Ansari’s bottom line declined 22% y-o-y to AED 205.5 mn in 1H 2024, mostly due to the introduction of the corporate tax. The company’s operating income inched down 2% y-o-y to AED 257.9 mn in 1H.

ABU DHABI AVIATION-

Abu Dhabi Aviation’s (ADA) net income reached AED 695.4 mn in 2Q 2024, up from the previous AED 15.7 mn net loss recorded in 2Q 2023, according to the company’s financials (pdf). The company’s revenues reached AED 1.55 bn, up 3.3% y-o-y during the period.

On a six month basis, ADA’s net income reached AED 722.2 mn in 1H 2024, up 612% y-o-y. The company’s revenues amounted to AED 3.23 bn during the period, down 4.4% y-o-y on the back of “operational streamlining at newly acquired businesses,” ADA said in a separate earnings release (pdf).

ICYMI- ADA completed an acquisition of stakes in three aviation firms from ADQ subsidiary ADQ Aviation in a transaction valued at AED 4 bn back in May. ADQ Aviation transferred stakes in the three companies — Etihad Airways Engineering, Advanced Military Maintenance Repair and Overhaul Centre (Ammroc), and Global Aerospace Logistics (GAL) — in exchange for shares in ADA.

ABU DHABI NATIONAL INS.-

Abu Dhabi National Ins. Company (ADNIC)’s bottom line remained flat at AED 104.2 mn in 2Q 2024, according to the company’s financial statements (pdf). ADNIC’s ins. revenues increased 53% y-o-y to AED 1.74 bn. On a six month basis, ADNIC’s net income also remained flat y-o-y at AED 205.2 mn, with revenues increasing 54% y-o-y to reach AED 3.29 bn.

Kuwait’s Menzies Aviation eyes “aggressive” expansion in UAE + Saudi Arabia

AVIATION-

#1- Menzies Aviation eyes tapping into the UAE market: The world’s largest aviation services firm Menzies Aviation plans to make an “aggressive” expansion into the UAE and Saudi Arabia in the next five years, Chairman of the Kuwaiti-owned company Hassan El-Houry told Gulf News.

About Menzies: Menzies Aviation currently operates over 295 airports across 65 countries and handles more than 4.5 mn flights and 2 mn tons of cargo annually. The UK-based company was acquired by Kwuait’s Agility Logistics in 2022.

#2- Eihad to fly its A380 to Singapore for the first time: Etihad Airways will start using its A380 fleet in flights to Singapore from 1 February 2025, a statement from the Abu Dhabi flag carrier showed. Etihad also said it plans to increase the number of weekly flights to Thailand to 41 from the current 35 starting 27 October 2024, with 21 flights to Bangkok and 20 to Phuket.

ENERGY-

Abu Dhabi to implement a centralized system to track stack emissions: The Environment Agency of Abu Dhabi has embarked on a new project that will tie up stack emission monitoring systems in the emirate’s industrial, energy, and oil and gas sectors to a central monitoring system, Wam reported. The project will allow the agency to collect real-time data on air pollutants from up to 500 stacks and take action if the emissions exceed the permissible limit.

There’s more: Facilities that don’t require the installation of emission monitoring systems will still be obliged to submit their emission records online to feed them into the central database. Some 53 stacks have been linked so far to the central emission monitoring system.

BANKING-

The National Bank of Fujairah has partnered with UK’s Intellect Global TransactionBanking (iGTB) to access its cloud-based solutions and open finance platform eMACH.ai to boost digital transformation at the bank and roll out new digital services to its customers, a joint statement (pdf) showed.

TECH-

Adnec taps QPortal to facilitate booking for its community sports events: Adnec Group, the organizer of Abu Dhabi Summer Sports and Al Ain Summer Sports, has partnered with Qode to use its online venue management solution QPortal to streamline the booking procedures for attendees of the community sports events, according to a statement from Adnec.

EDUCATION-

Sharjah’s Ruler Sultan bin Muhammed Al Qasimi will officially inaugurate Al Dhaid University on 16 September, two weeks after the start of the academic year, Al Qasimi was quoted by Wam as saying during a televised call. Located in the central region of the emirate, the university will house two faculties, agriculture and veterinary medicine.

NBFS-

MultiPass coming to Dubai: UK’s payment solutions provider MultiPass plans to launch its services in Dubai, after it received license from the Dubai Financial Services Authority, according to a statement picked up by Zawya. The license allows MultiPass to access the AED currency, as well as perform instant local payouts. The company targets businesses with frequent cross-border payment flows.

TAX-

Tax Authority doubles down on promoting tax culture: The Federal Tax Authority has inked an MoU with the Mohammed bin Rashid Housing Establishment to promote tax culture and raise the level of awareness among taxpayers about tax legislation and obligations by launching ad hoc events and initiatives, Wam reported.

Multinationals face leaner times as China’s growth slows

Multinationals are increasingly concerned about the state of China’s economy: China has not seen the economic turnaround post-Covid that many expected, with weak demand and sluggish growth pushing down consumer confidence. Amid the economic slowing, multinational companies are seeing sales decline as consumers cut back on spending and turn toward domestic brands — a trend executives believe will continue for the foreseeable future.

Sales are falling: According to advertising giant WPP, sales in the Chinese market have dropped nearly one-quarter in the last three months, reflecting the contraction of consumer appetite amid a sluggish economy. Foreign carmakers in particular have seen significant declines in sales, as consumer preference shifts toward EVs and away from the luxury auto market. Domestic competition is also playing a factor, as more and more Chinese brands outcompete multinationals in the Chinese market.

Distressed real estate markets are partly to blame: The heavily indebted Chinese real estate sector has seen growth slow since late 2021. With much of households’ wealth tied up in real estate, the downturn in the market has had a significant impact on consumer spending. “Uncertainty surrounding disposable income prospects, combined with further shrinkage of household wealth due to falling housing prices has led to a reduction in non-essential expenditure or a shift towards value-for-money product,” impacting not just restaurants but also other discretionary categories like “clothing, cosmetics, and gold and silver jewelry,” Fitch Ratings analysts say in a recent research note.

Still, a slow turnaround isn’t enough of a reason to turn one’s back on what is (arguably) the largest economy in the world, executives point out. “Even at current growth rates China still accounts for almost one-third of the world’s annual growth,” CEO of Yum China Joey Wat tells the Financial Times. And while lower sales hurt companies’ bottom lines in the present period, executives believe that the country’s “long-term fundamentals are still in place,” Anheuser-Busch InBev CEO Michel Doukeris tells the salmon-colored paper. Yet, despite a generally positive outlook, according to Wat “business is tough right now.”

MARKETS THIS MORNING-

Asian markets are mostly in the green this morning after one particularly volatile week that saw major sell-offs then sharp rebounds. The Kospi is looking at gains of 0.9%, while Hong Kong’s Hang Seng is down 0.5% at dispatch time. The Nikkei is closed today as the Japanese observe Mountain Day.

MEANWHILE- Futures for US indexes are down this morning as investors await inflation data due on Wednesday.

ADX	9,306	+0.6% (YTD: -2.8%)
DFM	4,195	0.0% (YTD: +3.3%)
Nasdaq Dubai UAE20	3681	-0.2% (YTD: -4.2%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.1% o/n	4.6% 1 yr
TASI	11,772	+1.0% (YTD: -2.2%)
EGX30	29,533	+2.7% (YTD: +18.6%)
S&P 500	5,344	+0.5% (YTD: +12.0%)
FTSE 100	8,168	+0.3% (YTD: +5.6%)
Euro Stoxx 50	4,675	+0.1% (YTD: +3.4%)
Brent crude	USD 79.66	+0.6%
Natural gas (Nymex)	USD 2.14	+0.8%
Gold	USD 2,473.40	+0.4%
BTC	USD 58,573	-4.1% (YTD: +38.6%)

THE CLOSING BELL-

The DFM fell 0.02% last Friday on turnover of AED 243.4 mn. The index is up 3.3% YTD.

In the green: Al Ramz Corporation Investment and Development (+5.3%), Depa Limited (+5.3%) and Commercial Bank of Dubai (+2.5%).

In the red: Dubai Refreshment Company (-9.9%), National International Holding Company (-9.9%) and Emirates Islamic Bank (-7.9%).

Over on the ADX, rose 0.6% on turnover of 1.09 bn. Meanwhile Nasdaq Dubai fell 0.2%.

UAE, Cyprus FMs discuss Middle East developments + Gaza

Foreign Affairs Minister discusses regional issues with Cypriot counterpart: Foreign Affairs Minister Sheikh Abdullah bin Zayed Al Nahyan discussed current developments in the Middle East with his Cypriot counterpart Constantinos Kombos, and affirmed the need for a ceasefire and humanitarian aid in Gaza, Wam reports. During their call, the two also touched on the partnership between the two nations.

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.

13-18 (Sunday-Friday): Gitex Global, Dubai World Trade Centre and Dubai Harbour.

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.

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