LuLu Retail’s IPO sells out within an hour

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WHAT WE’RE TRACKING TODAY

THIS MORNING: NMDC plans new units, expansion + Abu Dhabi Crown Prince heads to Singapore

Good morning, wonderful people. It’s shaping up to be a busy news week, as LuLu Retail kicks off its book building period with a bang, selling out orders within an hour, and Vietnam and the UAE ink an economic partnership agreement during Vietnamese Prime Minister Pham Minh Chinh’s visit to the country. We also have several M&A updates and fresh data on Dubai and Abu Dhabi’s real estate sectors. Let’s dive in.

WEATHER- Expect a high of 34°C and a low of 27°C in Dubai, while over in Abu Dhabi, the mercury peaks at 30°C before cooling to an overnight low of 29°C.

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WATCH THIS SPACE-

#1- NMDC plans to introduce new units and expand operations: The National Marine Dredging Company (NMDC) aims to develop new business units, including NMDC Construction and NMDC LNS, the company’s CEO Yasser Zaghloul told CNBC Arabia (watch, runtime: 8:11). He also said that the company is allocating proceeds from NMDC Energy AED 3.22 bn IPO to geographical expansion, including acquiring a GCC-based company in a transaction that will soon be announced.

#2- Barclays eyes Middle East expansion: Barclays is looking to deepen its presence in the Middle East with plans to expand teams in Dubai and Abu Dhabi, CEO C.S. Venkatakrishnan said on the sidelines of Saudi Arabia’s Future Investment Initiative, Bloomberg reports. The bank is also considering a re-entry into Saudi Arabia to tap into the kingdom’s increasing need for global capital market access.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- The General Pension and Social Security Authority launched a new digital pension platform, Ma’ashi, allowing employers to access the authority’s services 24/7, track the status of services or support requests submitted to the authority, and interact directly with beneficiaries, Wam reports. The platform also allows insured civilians and military personnel to directly apply for various services, including end-of-service requests and modifications to employment periods.

#2- The E304 bus route, which runs from Sharjah’s Rolla Station to Dubai’s Satwa Station, was reinstated into service yesterday, the Sharjah Road and Transport Authority announced in a post on X. The route will operate at 30-minute intervals.

DATA POINTS-

#1- The number of bank branches in the UAE dropped to 482 in 1H 2024, compared to 493 in the same period last year, as banks look to cut operating costs and shift towards digitalization, Al Khaleej reports, citing central bank figures.

#2- The UAE attracted USD 16 bn in greenfield FDI capital inflows in 2023, marking a 37% y-o-y increase, mainly driven by investments from the US, India, the UK, Saudi Arabia, and France, Wam reports, citing Under-secretary of the Investment Ministry Mohammed Abdul Rahman Al Hawi.

Five sectors accounted for 86% of FDI stock as a whole, namely wholesale and retail trade (26%), real estate (24%), finance and ins. (21%), mining and quarrying (8%), and manufacturing (7%), Al Hawi said.

HAPPENING TODAY-

wwtt5] #1- Abu Dhabi Crown Prince heads to Singapore: Sheikh Khaled bin Mohamed bin Zayed Al Nahyan is set to visit Singapore today, where he is scheduled to meet with the country’s Prime Minister Lawrence Wong, Wam reports. He is also set to explore potential cooperation with senior officials and executives from the tech, AI, and urban planning sectors.

#2- The MENA Climate Proof Forum kicks off today and runs until tomorrow in Dubai. The event will address regional-specific climate challenges, with the aim of accelerating action and readiness for climate-related disasters.

#3- OneConnect Dubai 2024 will take place today at the Marriott Resort Palm Jumeirah in Dubai, according to a press release. The event will bring together global cybersecurity experts and local thought leaders, featuring keynote sessions by industry leaders, a CISO panel discussion, and discussions with professionals from the UAE and the wider Middle East.

#4- TheSharjah International Conference in Biotechnology (SICBiotech) will take place today and tomorrow at the University of Sharjah. The event will bring together leading scientists in biotechnology.

#5- TheHealthcare Future Summit is set to take place at the Dubai World Trade Center today and tomorrow, according to a statement. The summit will discuss advances in disease management, AI integration to streamline vaccine distribution, and resource management, with a focus on vaccine policies in the GCC.

HAPPENING THIS WEEK-

#1- Dubai will host the World Cities Cultural Summit from tomorrow to 1 November. The summit probes how cities can create a fostering environment for artists and entrepreneurs, while addressing global challenges, such as the climate crisis and AI.

#2- The Connected Construction Conference will kick off tomorrow at the Museum of the Future in Dubai, welcoming leaders, decision-makers, and BIM specialists from the construction industry to showcase new technological advancements and address challenges facing the sector.

#3- The Binance Blockchain Week will take place tomorrow and after in Dubai. The conference will welcome traders, builders, founders, institutional investors, regulators, global officials, and innovators to discuss the future of blockchain and Web3 technology.

#4- The Annual Islamic Finance Conference will take place tomorrow at the DIFC Atrium in Dubai. The conference will host experts from the Islamic financial services sector and senior analysts to discuss the industry’s global outlook and growth potential.

THE BIG STORY ABROAD-

It’s a busy morning in the foreign press today, as the situation in Gaza looks increasingly dire and the US elections race continues to heat up.

Israel has moved to ban UNRWA from the country, effectively barring humanitarian aid from the largest aid provider to Gaza and the Palestinians. Several countries — including Germany, the UK, and Belgium — condemned the move. (The Guardian | CNN | Reuters | AP)

Uncertainty over the prospects of a ceasefire continues: Israeli Prime Minister Benjamin Netanyahu said he is open to a short truce in Gaza if they could agree on a small hostage swap agreement, though he also denied having received a proposal from Egypt, saying if he had, he would have accepted it on the spot. Egyptian President Abdel Fattah El Sisi had said a day earlier that he had proposed a two-day ceasefire to exchange hostages, ahead of a 10-day stretch of negotiations for a permanent ceasefire. (Bloomberg | Reuters)

Meanwhile, Netanyahu is pledging to strike more peace agreements with Arab countries in the “day after” the war, Reuters reports.

The situation on the ground: Palestine’s emergency services have warned of 100k Palestinians trapped in Jabalia without food or medical supplies, while in Lebanon, at least 60 were killed in the eastern Bekaa valley yesterday.

The Donald is appealing to religious voters in swing state Georgia as early votes kick off, while Kamala Harris doubled down on her criticism of Trump following a rally of his that saw speakers make racist remarks against Puerto Rico. (Reuters)

IN BUSINESS NEWS- Rivalry between Big Tech heats up: Microsoft is accusing Google of backing a lobbying group designed to undermine its position with competition authorities and that it runs shadow campaigns against Microsoft, while the coalition — the Open Cloud Coalition — claimed it was focus on openness in cloud services, and Google claimed Microsoft is engaging in anti-competitive practices. (Financial Times)

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Lulu Retail IPO sells out within one hour

Lulu Retail’s IPO was fully subscribed within an hour of opening its book building process yesterday, with demand exceeding the amount of shares allocated in the offering, Bloomberg reports, citing a document it reviewed. Priced at a range of AED 1.94 to AED 2.04, the IPO could raise up to AED 5.27 bn from its ADX listing, according to a statement (pdf), valuing the company at as much as AED 21.1 bn.

Refresher: Supermarket chain LuLu Group is offering up to a 25% stake (or c.2.6 bn shares) in an IPO on the ADX for its retail business, Lulu Retail. The IPO is set to be the UAE’s biggest this year, with its potential value placing it north of Spinneys’ AED 1.38 bn listing on the DFM in May; NMDC Energy’s AED 3.22 bn IPO in September; edtech firm Alef Education’s AED 1.89 bn IPO ; and ADNH Catering’s AED 864 mn listing earlier this month.

A big chunk has already been covered by cornerstone investors: Lulu Retail signed agreements with Abu Dhabi Pension Fund, Bahrain Mumtalakat, Emirates International Investment Company, and Oman Investment Authority to become cornerstone investors in its IPO. The investors committed to purchasing AED 753 mn worth of shares in the offering, with EIIC alone committing USD 100 mn (AED 367.3 mn). The exact allocation of investments among the other cornerstone investors was not disclosed.

What’s next? Both retail and institutional investors have until next Tuesday, 5 November, to subscribe. The final price will be disclosed on 6 November, after which Lulu Retail’s shares will start trading on 14 November.

ADVISORS- Abu Dhabi Commercial Bank, Citigroup, Emirates NBD Capital and HSBC Holdings are joint coordinators and bookrunners, while Alrajhi Capital, EFG Hermes UAE, First Abu Dhabi Bank, and Goldman Sachs have been tapped as bookrunners. ADCB, Citigroup, Emirates NBD Capital, HSBC Holdings, and EFG Hermes UAE are also joint lead managers, while FAB and ADCB are joint lead receiving banks, along with our friends at Mashreq, Dubai Islamic Bank, Emirates Islamic Bank, and Emirates NBD, who are acting as receiving banks. Moelis & Co. is also acting as an independent financial advisor.

More on Lulu Retail: LuLu Retail is the largest pan-GCC full-line retailer, operating over 240 hypermarket, express, and mini-market stores across the six GCC countries and serving over 600k shoppers. The company plans to open 90 new stores across the Gulf over the next five years, focusing on the UAE and Saudi Arabia, its CEO Saifee Rupawala told Bloomberg.

Mubadala gears up for an AED-denominated sukuk issuance

Mubadala’s Mamoura Diversified Global Holding (MDGH) is gearing up for a five-year AED-denominated sukuk issuance, Reuters reports, citing a document from an arranging bank. Though the exact value of the offering remains undisclosed, the sukuk will be benchmark-sized — meaning it will be sized at a minimum of USD 500 mn. The sukuk will be issued via Mamoura’s subsidiary, MDGH Sukuk, under its trust certificate issuance program.

Investor meetings organized by banks were held yesterday in Dubai to prepare for the issuance.

REMEMBER- Mubadala’s first Sharia-compliant issuance via MDGH was a USD 1 bn, 10-year sukuk priced at 70 basis points over US Treasuries, attracting USD 7 bn in orders.

ADVISORS- Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, ICBC, JP Morgan, and Standard Chartered Bank are serving as joint lead managers and bookrunners.

Esyasoft makes unsolicited takeover proposal for Good Energy

Esyasoft eyes UK renewables provider Good Energy: Dubai-based and IHC-backed technology group Esyasoft has made an unsolicited takeover proposal to UK-based renewables supplier Good Energy, according to a disclosure. Good Energy is currently evaluating the offer but has not disclosed specific terms.

What’s next? Esyasoft has until 25 November to confirm its intention to proceed with the offer.

Market reax: Good Energy’s shares soared 22% on the news.

OTHER M&A NEWS-

#1- Bawan and Petronash sign a SPA: Saudi building materials manufacturer Bawan signed a sale and purchase agreement to acquire the UAE’s Petronash Holding, according to a statement. The acquisition is valued at USD 175 mn and will be financed through bank facilities and Bawan’s internal cash reserves.

Background: Bawan signed a binding MoU with Petronash last month to acquire Petronash Holding. The agreement outlined that Bawan would initially purchase 80% of Petronash’s shares for USD 80 mn, with an additional contingent payment of up to USD 60 mn based on the company’s financial performance over the next three years.

ADVISORS- Bawan sought legal, financial, and commercial advice from Khoshaim and Associates, PwC, and Rystad Energy, while Petronash was advised by Freshfields Bruckhaus Deringer and Piper Sandler.

#2- KFH completes the sale of its full stake in Sharjah Islamic Bank: Kuwait Finance House (KFH) finalized selling its 18.2% stake in Sharjah Islamic Bank for AED 1.3 bn, after obtaining Securities and Commodities Authority approval, according to an ADX disclosure (pdf). KFH agreed to sell its 588.3 mn shares at AED 2.2 per share in August.

REFRESHER- Sheikh Sultan bin Mohammed bin Saqr Al Qasimi Foundation bought 226.5 mn shares (7%), Sharjah Social Security Fund got 194.1 mn shares (6%), and the rest of the shares (5.18%) were bought back by the bank as treasury shares.

Masdar and Emsteel kick off pilot operations at green steel plant

Masdar + Emsteel produce green steel: State-owned renewables firm Masdar and steel producer Emsteel’s pilot program to produce steel using green hydrogen as a fuel is now fully operational, according to a statement. The project uses energy from green hydrogen to extract iron from iron ore — an energy-intensive step essential to steelmaking.

Background: Masdar partnered with Emsteel — formerly known as Emirates Steel Arkan — to develop a pilot green hydrogen plant to decarbonize the UAE’s steel sector last year. The pilot project could potentially cut carbon emissions in the steel-making process by 95%, the companies said at the time.

Emsteel has more decarbonization plans: The company partnered with Japan’s JFE Steel and Itochu Corporation last year to conduct feasibility studies for a greener iron ore processing facility in Abu Dhabi. The plant is expected to begin production in 2H 2025. Emsteel and Finnish climate tech company Magsort also completed pilot testing on a decarbonization initiative aiming to slash 15% of the emissions from Emsteel’s Al Ain Cement Factory. Magsort can reduce 3-17% — depending on the type of furnace used — of CO2 emissions from the steel-making process.

ALSO- Did Masdar revise its green hydrogen target timeline? Masdar seems to have delayed its goal for green hydrogen production, saying in the statement that it now aims to achieve 1 mn tons by 2034 instead of by its previously set 2030 deadline. The renewables leader said it expects to reach this capacity a decade from now, but did not provide specific reasons for the delay. Initially, half of the production was slated to occur in Abu Dhabi.

The story got ink in Bloomberg

Residential and commercial prices rise in Abu Dhabi and Dubai in 3Q -ValuStrat

Property prices in Abu Dhabi continued to rise in 3Q 2024 despite a dip in off-plan sales, with ValuStrat’s price index rising 5.3% y-o-y and 1.7% q-o-q in the emirate during the quarter, according to a ValuStrat Real Estate Review (pdf).

On the rentals side, rates in Abu Dhabi’s rental market grew 5.8% y-o-y in 3Q 2024, “indicating sustained demand and favorable market conditions.”

The emirate saw a 51.1% increase in transactions for ready properties in the emirate, ValuStrat estimates, but off-plan sales — which represented 41.2% of overall sales — fell 58.6% y-o-y and 36.7% q-o-q owing to fewer project launches. Estimates from CBRE and Property Finder also indicated a slump of at least 40% y-o-y in total sales during the quarter.

In the office market: Median sales prices in the commercial sector rose 15.3% y-o-y during 3Q, the report adds. Asking rents in primary commercial districts grew by 25.6% y-o-y and 8.3% q-o-q, with average occupancy in central business districts reaching 90.2% during the quarter. Industrial rental rates remained stable at the lower end and rose by over 4% at the higher end.

How hospitality fared: Revenue per available room rose by 19.7% y-o-y, driven by a 9.5% y-o-y increase in the average room rate. Abu Dhabi’s hospitality sector achieved a 79.9% occupancy rate across 34k hotel keys during the quarter.

On the industrial side: Industrial prices at the higher end of the spectrum saw a 2.7% uptick, including in Mussafah and ICAD. Prices at the lower end remained stable.

DUBAI-

ValuStrat’s price index saw a 28.9% y-o-y rise in residential values in Dubai in 3Q, though the average size of sold homes shrunk to its lowest level and average sales prices per square foot softened for the first time so far this year, according to a separate ValuStrat Real Estate Review (pdf).

Prices for ready villas and townhouses rose by 33.1% y-o-y during the quarter, while prices in the apartment segment increased by 24.8% y-o-y. Nearly all villas (98%) have doubled in price since 2020, according to the report.

On the rentals side: Apartment rental rates increased by 15.4% y-o-y. Meanwhile, villa rental rates grew 4.9% y-o-y.

Mid-market and affordable properties gained traction in Dubai in 3Q 2024, the report said. Homes priced under AED 1 mn accounted for 40% of all ready home sales in the emirate during the quarter.

Demand for office space continued in 3Q, pushing capital values up 25.8% y-o-y and 2.6% q-o-q, while rents jumped 20.8% y-o-y. Warehouse demand similarly gained momentum, driving a 14.6% y-o-y and 5.2% q-o-q increase in capital values.

In the hospitality arena: Hotel occupancy reached 76.2%, rising by 0.7% y-o-y during the quarter, with the revenue per available room up 4.3% y-o-y and average daily rates up 3.2% y-o-y.

S&P Global pushes back its expectation of a cooldown in the property market on persistent demand

S&P Global no longer expects Dubai’s residential property market to cool in 2024, citing sustained high demand in a recent report. A growing population — supported by recent visa reforms — is fueling demand, with Dubai’s population expected to reach 4 mn by 2026. High rental prices are also to thank, boosting purchases in the primary market.

Construction delays could also drive prices up in the short term, alongside population growth helping to absorb the new supply.

S&P Global pushed back its expectation of a “cyclical slow down” to no earlier than 18 months from now, after having previously expected a slowdown later this year or early next year.

This should come on the back of new supply: Developers are preparing to deliver some 182k units over 2025-2026 from presales in 2022-2023. The influx of new supply, surpassing the average 40k annual units delivered pre-2024, “could saturate the unfulfilled demand and lead to lower prices and rents,” S&P Global said. Prices for ready properties are expected to continue rising slightly.

Dubai developers are set to pivot toward affordable and mid-market properties in 2025, as demand in the emirate’s luxury segment moderates, according to the report. The pace of new launches is likely to slow over the next 1-2 years as developers adjust their offerings to align with changing market dynamics.

Major developers are financially well-positioned, with Emaar, Damac, and Sobha shielded against weaker market conditions by “robust revenue backlogs after strong presales.” Any market slowdown is expected to impact smaller developers first, who may face working capital strains and reduced cash flows due to their narrower margins and limited negotiating power.

Inflation and high interest rates are not a concern, but regional tensions are: “Dubai’s residential market remains undeterred by local inflation and high interest rates since most transactions are not funded by mortgages,” S&P Global said. The ratings agency cited prolonged regional conflict as the primary risk to the market, potentially affecting investment and population growth.

But we’re in the clear for now: “The escalation of geopolitical conflicts in the Middle East has had no significant effects on Dubai’s residential real estate market,” the ratings agency said.

ADIA and APG to invest an additional USD 1.4 bn in Trans Sumatra Toll Road

Adia and APG invest in Indonesian infrastructure: The Abu Dhabi Investment Authority (Adia) and Dutch pension fund APG are investing USD 1.4 bn in Indonesia’s Medan-Binjai and Bakauheni-Terbanggi Besar toll sections of the Trans Sumatra Toll Road, as part of their USD 2.75 bn investment strategy with the Indonesia Investment Authority (INA), Reuters reports.

Details: The Medan-Binjai section runs through the capital of north Sumatra, while Bakauheni-Terbanggi Besar serves as a link between the islands of Java and Sumatra. The toll sections aim to improve regional connectivity and reduce travel times.

Background: In January, ADIA and APG made their initial investments as part of the USD 2.75 bn strategy in toll roads in Indonesia through an investment platform established in 2021 in collaboration with the INA. The investment platform has some USD 3.75 bn in investment capacity.

Sharjah establishes independent energy council

Sharjah launches energy council: Sharjah ruler Sheikh Sultan bin Mohammed Al Qasimi issued a decree establishing the Energy Council to oversee energy and water policy and support economic diversification efforts, according to a statement. Crown Prince Sheikh Sultan bin Mohammed bin Sultan Al Qasimi will act as chairman of the council, and Hatem Al Mosa (LinkedIn) as secretary general.

The council’s mandate: The council will be responsible for proposing laws and policies related to the energy sector, drafting plans to advance the sector, and developing funding strategies for energy projects in Sharjah. It will also publish annual reports on the emirate’s energy industry, sign off on energy services’ standards and fees in Sharjah, and authorize contracts and agreements for energy projects.

In a separate decree, the Sharjah Petroleum Council was renamed the Petroleum Department, with Al Mosa as its director-general, after serving as the petroleum council’s secretary general for nearly a decade.

du, NCTH, Union Properties, and ESG report 3Q earnings

DU-

du posts 43% increase in 3Q bottom line: Emirates Integrated Telecommunications Company’s (du) net income climbed 42.7% y-o-y to AED 719 mn in 3Q 2024, according to the company’s financial statements (pdf). The telco’s revenues grew 9.1% y-o-y to AED 3.6 bn on the back of “robust growth in all [its] segments,” du CEO Fahad Al Hassawi said in its earnings release (pdf).

The breakdown: du’s mobile services alone contributed AED 1.6 bn in revenues, marking a 7% y-o-y increase. The company also saw its fixed service revenues grow 8% y-o-y to AED 1.01 bn driven by sustained demand for its home wireless product, enterprise broadband services, and expanded fixed network.

du’s net income over the first nine months of the year rose 49.6% y-o-y to AED 1.9 bn. Meanwhile, the company booked AED 10.8 bn in revenues for 9M 2024, up 6.7 y-o-y.

UNION PROPERTIES-

Dubai-based Union Properties’ net income declined by 7% y-o-y to AED 18 mn

in 3Q 2024, due to a decrease in the value of other sources of income, with operating income growing 283% to AED 28.6 mn, according to its financial statements (pdf). The real estate developer’s revenue stayed nearly flat at AED 123.3 mn during the quarter.

On a 9M basis, the firm’s net income increased by 41.9% y-o-y to AED 53.1 mn on the back of its cost management and operational strategies. The company’s revenues grew 6.8% y-o-y to AED 389 mn during the first nine months. Its financial costs amounted to AED 22 mn in the first nine months, decreasing from AED 85 mn in 2023 due to long-term debt restructuring with financial institutions, according to its earnings release (pdf). The developer had reached a debt settlement agreement with Emirates NBD last February to pay AED 850 mn within nine months of signing it.

LOOKING AHEAD- The company plans on launching AED 6 bn projects in the next 18 months, CEO Amer Khansaheb said. The company recently launched its AED 1.16 bn Takaya project in Motor City as part of its expansion plan, consisting of 744 residential units, which is expected to generate AED 200 mn in net income for Union as of 2025.

NCTH-

The National Corporation for Tourism and Hotels’ (NCTH) net income more than doubled, increasing 113.0% y-o-y to AED 10.6 mn in 3Q 2024, according to the company’s financials (pdf). The company’s revenues rose 5.7% y-o-y to AED 160.5 mn.

On a 9M basis, NCTH’s bottom line narrowed 14% y-oy to AED 40.8 mn, while revenues inched up 2.1% y-o-y to AED 495.6 mn during the first nine months of 2024.

EMIRATES STALLIONS GROUP-

IHC subsidiary and construction and real estate firm Emirates Stallions Group (ESG) saw its net income fall 17.7% y-o-y to AED 31.9 mn in 3Q 2024, according to its financials (pdf). Meanwhile, the company’s revenues climbed 95.1% y-o-y to AED 261 mn, driven by “organic growth and strategic expansion,” the company said in its earnings release (pdf).

On a 9M basis, the company’s bottom line narrowed 74.4% y-o-y to AED 162.9 mn. ESG’s revenues grew 125% y-o-y to reach AED 900 mn during the same period.

DAE purchases ten aircraft for USD 500 mn

AVIATION-

Dubai Aerospace Enterprise expands fleet with ten new planes: Global aviation services firm Dubai Aerospace Enterprise (DAE) signed a USD 500 mn agreement to acquire 10 narrow-body aircraft to its fleet, expected to close by the end of the year, according to a statement. These planes will be leased to four airlines across four countries.

DAE also facilitated the sale of 36 managed aircraft, transferring equity interests from existing to new investors.

REFRESHER- DAE is on a plane buying spree: This latest acquisition comes on the heels of DAE’s purchase of 23 aircraft from several entities for USD 1.1 bn.

DEVELOPMENT FINANCE-

Abu Dhabi Fund for Development partners with Caf to promote sustainability in Latin America: Abu Dhabi Fund for Development and the Development Bank of Latin America and the Caribbean (Caf) signed an agreement to establish a framework for co-financing projects focused on sustainable growth and addressing inequalities in Latin America, Wam reports. The size of the funding was not disclosed.

MANUFACTURING-

Acube Developments launched an interior design and manufacturing arm, Acube Industries, according to a press release. The new arm’s manufacturing facility — located in Umm Al Quwain — is capable of producing 1.5k to 2k doors, 250 complete kitchens, and fully furnishing up to 50 one-bedroom apartments monthly. Acube Industries targets AED 25 mn in annual revenue.

FINTECH-

Dubai-based payments provider Network International tapped Singapore-based AntInternational to add its Alipay+ digital wallet solution to its platform in a bid to facilitate the creation of e-wallet apps via Network’s platform, according to a press release. Network will also work to allow international debit and credit cards issued in the UAE on Ant International’s payment and digitisation services platform Antom.

BUSINESS-

#1- Gallagher to provide alternative risk management services in Abu Dhabi: UK brokerage Gallagher is set to grow its presence in the Middle East and Africa after its subsidiary, Artex, secured a license to launch alternative risk management services in the Abu Dhabi Global Market (ADGM), according to a press release. The expansion will boost Gallagher’s existing footprint in the region, building on its partnership with Ace Ghallagher, which has presence across the UAE, Saudi Arabia, Bahrain, Kuwait, Lebanon, and Greece.

#2- The Securities and Commodities Authority licensed Australian trading platform and financial consultation and analysis service provider AUS Global, according to a post on LinkedIn.

TELECOMS-

e& International partnered with Huawei, Ericsson, Nokia, and Intel to support its target of achieving Level 4 autonomy across its mobile networks by 2030, according to a press release. This means e& will be able to run most operational tasks automatically — including detecting and fixing issues — with human intervention reserved only for complex decisions.

Boeing kicks off massive share sale as it looks to dodge junk credit rating

Boeing is planning a USD 19 bn share sale that will see the embattled planemaker offering up 90 mn ordinary shares and USD 5 bn in depositary shares, the company said yesterday in a filing to the US Securities and Exchange Commission. The offering — which could land Boeing up to USD 21.8 bn in proceeds when factoring potential over allotments — comes as it looks to shore up liquidity and prevent its credit rating from descending to junk status, Bloomberg reports.

The proceeds of the share sale will go towards general corporate purposes, “which may include, among other things, repayment of debt, additions to working capital, capital expenditures, and funding and investments in our subsidiaries,” the aerospace giant said in its filing. Boeing will likely funnel some of the fresh funds towards restarting and scaling production once an agreement is hammered out to end an ongoing worker walkout.

Market reaction: The company’s shares closed down 2.8% yesterday at USD 150.69 apiece.

REFRESHER- Boeing unveiled plans earlier this month to raise up to USD 25 bn through stock and debt offerings and another USD 10 bn in credit from major lenders as it struggles to maintain its credit rating with USD 11.5 bn in company-owed debt maturing through 1 February 2026. The present crisis marks the first time that the planemaker has found itself at risk of losing its investment-grade credit rating.

Boeing has had a rough time of it as of late: The company reported USD 6 bn in third quarter losses last week, putting its losses so far this year at some USD 8 bn, with CFO Brian West painting a bleak picture for the firm’s freecash flows well into next year. A six week-long walkout by machinists has halted production at several of the aircraft maker’s production lines, including those for “cashcow” 737 Max aircraft. The strike is estimated to cost Boeing up to USD 1 bn per month and negotiations with the 33k striking workers hit a deadlock over pensions last week.

The aircraft maker is also grappling with the fallout from a string of recent safety failures, beginning with a mid-air panel blow out on a Boeing aircraft in January that pushed the US Federal Aviation Administration to put in place a production cap on the 737 Max line. This was followed by whistleblower claims that the aircraft maker is not adhering to safety guidelines at its production plants.

ADVISORS- Boeing tapped Goldman Sachs, BofA Securities, Citigroup and JP Morgan as lead joint bookrunning managers on the offering, while Wells Fargo Securities, BNP Paribas, Deutsche Bank Securities, Mizuho, Morgan Stanley, RBC Capital Markets and SMBC Nikko are acting have stepped in as joint bookrunning managers.

MARKETS THIS MORNING-

Asia-Pacific markets are off to a good start this morning, with most indexes in the green in early trading. Japan’s Nikkei extended yesterday’s gains, while the Hang Seng Index and mainland China’s Shanghai Composite are also up. Korea’s Kospi index is down slightly.

It’s a different view over on Wall Street, where US futures are all in the red despite the Dow Jones, S&P 500, and Nasdaq all closing up yesterday.

ADX	9,308	+1.1% (YTD: -2.8%)
DFM	4,537	+1.3% (YTD: +11.8%)
Nasdaq Dubai UAE20	3,825	+2.3% (YTD: -0.4%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.8% o/n	4.3% 1 yr
TASI	12,053	-0.1% (YTD: 0.1%)
EGX30	30,774	-0.1% (YTD: +23.6%)
S&P 500	5,824	+0.3% (YTD: +22.1%)
FTSE 100	8,286	+0.5% (YTD: +7.1%)
Euro Stoxx 50	4,970	+0.5% (YTD: +9.9%)
Brent crude	USD 71.42	-6.1%
Natural gas (Nymex)	USD 2.26	-2.2%
Gold	USD 2,753	-0.1%
BTC	USD 69,908	+2.9% (YTD: +65.6%)

THE CLOSING BELL-

The ADX rose 1.1% yesterday on turnover of AED 1.4 bn. The index is down 2.8% YTD.

In the green: Phoenix Group (+12.8%), NMDC Group (+9%) and Response Plus Holding (+6.9%).

In the red: Abu Dhabi National Takaful (-9.9%), Aram Group (-7.0%) and Easy Lease Motor Cycle Rental (-4.4%).

Over on the DFM, the index also rose 1.3% on turnover of AED 407.6 mn. Meanwhile, Nasdaq Dubai closed up 2.3%.

CORPORATE ACTIONS-

Takaful Emarat will kick off the rights issue to existing shareholders as part of its capital restructuring on 1 November, according to a DFM disclosure (pdf). The right issue will see the ins. firm raise its share capital to AED 185 mn, up from AED 25.6 mn, by issuing 159 mn new shares, at a nominal value of AED 1 apiece.

REMEMBER- The firm reduced its capital to AED 25.7 mn by canceling 124.4 mn shares earlier this month as part of a capital restructuring plan the firm revealed in February, aimed at offsetting the AED 132 mn accumulated loss the company had incurred as of 31 December 2023.

Vietnam, UAE ink comprehensive economic partnership agreement

Vietnam and the UAE inked a comprehensive partnership agreement yesterday that will see both countries cooperate across several sectors and unlock USD 20 bn in trade, according to a joint statement on Wam. The two countries will ramp up cooperation in defense, foreign affairs, security, judicial affairs, as well as in logistics, oil and gas, renewable energy, information technology and digital transformation, and agricultural production and processing.

They will also cooperate on the Halal industry, education, and healthcare and vaccine production, the statement said.

The two countries will set up a working group for economic and trade cooperation, and will look into potentially setting up a UAE-Vietnam Business Council, a task force for investment cooperation, and a UAE-Vietnam investment fund as potential mechanisms for cooperation.

President Sheikh Mohamed bin Zayed Al Nahyan discussed with Vietnamese Prime Minister Pham Minh Chinh during his visit yesterday expanding investment and trade cooperation, Wam reports. The leaders also touched on regional and international issues, exploring new potential windows for bilateral collaboration.

AND- Dubai Chamber of Commerce set up the Vietnamese Business Council to support bilateral trade and investment between the UAE and Vietnam, Wam reports. The new business council was launched yesterday on the sidelines of the Vietnam–UAE Business Forum in Dubai.

The forum also saw the signing of several agreements, including:

UAE airlines Etihad and Emirates inked an agreement with Vietnam Airlines to boost cooperation in the aviation sector;
DP World and Vietnam Maritime Corporation will work to develop Can Tho Port and inland waterways;
UAE’s Benya Group, NDMC and AD Ports will partner with Vietnamese Vingroup on developing data and logistics infrastructure;
Emirates Driving will collaborate with automotive company Vinfast on EV manufacturing;
Abu Dhabi-based Golden Nile signed an agreement with Vietnam’s T&T Group to collaborate in the sectors of finance, agriculture, and services.

UAE + Brazil target stronger ties: The UAE and Brazil held the inaugural meeting of the UAE-Brazil Business Council in Sao Paulo to discuss boosting trade and fostering stronger economic ties, Wam reported on Saturday. The pair identified areas for cooperation in a variety of sectors, including manufacturing, sustainable agriculture, clean energy, and technology.

Fast facts: Bilateral non-oil trade between the two rose 18.2% y-o-y to hit USD 2.7 bn in 1H 2024, making Brazil one of the UAE’s largest trading partners in the region.

CALENDAR

OCTOBER

27-30 October (Sunday-Wednesday): IEEE – International Conference on Image Processing, Adnec Centre, Abu Dhabi.

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

29 October (Tuesday): OneConnect Dubai 2024, the Marriott Resort Palm Jumeirah, Dubai.

29-31 October (Tuesday-Thursday): Sharjah International Conference in Biotechnology (SICBiotech), University of Sharjah.

29-31 October (Tuesday-Thursday): Healthcare Future Summit, Dubai World Trade Center.

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

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

30 October (Wednesday): Connected Construction Conference, Museum of the Future, Dubai.

30 October (Wednesday): 14th Annual Islamic Finance Conference, DIFC Atrium, Dubai.

30-31 October: Sixth edition of Binance Blockchain Week, Coca-Cola Arena, Dubai.

NOVEMBER

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

4-6 November (Monday-Wednesday): Legislative week, Mohammed bin Rashid Al Maktoum Library, Dubai.

4-7 November (Monday-Thursday): Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC), Abu Dhabi.

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

4-7 November (Monday-Thursday): ADIPEC Decarbonisation Accelerator, Abu Dhabi.

5-7 November (Tuesday-Thursday): 2024 EMEA Stakeholder Conference, Dubai.

5-7 November (Tuesday-Thursday): 10th edition of Gulfood Manufacturing, Dubai World Trade Center.

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

6-8 November (Friday-Sunday): UAE BioTech Symposium, Masdar City, Abu Dhabi.

6-17 November (Friday- Sunday) Sharjah International Book Fair, Expo Center Sharjah, Sharjah.

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

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

13 November (Wednesday): Registration deadline for Dubai Chamber of Digital Economy’s App Olympics.

13-14 November (Wednesday-Thursday): Lease Conference Dubai 2024, Jumeirah Creekside Hotel, Dubai.

15 November (Friday): Tax amendments that exempt crypto and investments through fund managers from VAT to take effect.

18-19 November (Monday-Tuesday): Dubai Precious Metals Conference, JAFZA One Convention Center, Dubai

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

19-20 November (Tuesday-Wednesday): Dubai Future Forum, Museum of the Future, 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.

22-24 November (Friday-Sunday): Michelin Guide Food Festival, Emirates Palace Mandarin Oriental, Abu Dhabi.

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

23-24 November (Saturday-Sunday): Emirates Dubai Sail Grand Prix, SailGP Race Stadium.

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

27 November: Acceptance period for Adnoc’s Covestro takeover bid ends.

26-28 November (Tuesday-Thursday) Global Media Congress 2024, Abu Dhabi National Exhibition Centre (ADNEC).

26-29 November (Tuesday-Friday): Big 5 Global, Dubai World Trade Centre.

26-27 November (Tuesday-Wednesday): Global Women’s Forum Dubai, Madinat Jumeirah, Dubai

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

28 November-1 December (Thursday-Sunday): Spartan World Championship, Al Wathba Desert, Abu Dhabi.

30 November (Saturday): Football Legends Cup, Al Maktoum Stadium Al Nasr Sports Club, Dubai.

Signposted to happen ahead of ADIPEC:

Changemakers Majlis, Abu Dhabi.

DECEMBER

2-3 December (Monday-Tuesday): National Day, public holiday.

4-5 December (Wednesday-Thursday): Sport Impact Summit, The Palm, Dubai.

4-6 December (Wednesday-Friday): Abu Dhabi Business Week, Adnec Center, Abu Dhabi.

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.

13 December – 4 January (Friday-Saturday): Liwa International Festival, Al Dhafra, Abu Dhabi.

9-10 December (Monday-Tuesday): The Bitcoin Mena Conference, Adnec Centre Abu Dhabi.

9-12 December (Monday-ThursdayTuesday): Abu Dhabi Finance Week, Abu Dhabi.

9-12 December (Monday-Thursday): World Conference on Desalination and Water Re-use 2024, Adnec Centre, Abu Dhabi.

9-12 December (Monday-Thursday): IEEE International Conference on Data Mining 2024, Adnec Centre, Abu Dhabi.

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

10-12 December (Tuesday-Thursday): The Middle East and North Africa Business Aviation Association Show, Al Maktoum International Airport, Dubai.

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

14-21 December (Saturday-Saturday): World Schools Festival, Abu Dhabi

16-20 December (Monday-Friday): AIMS Conference 2024, Adnec Centre, Abu Dhabi.

6 December-12 January: Dubai Shopping Festival.

Signposted to happen sometime in December:

UAE-China Summit, Abu Dhabi.
Abu Dhabi Forum for Peace, Abu Dhabi.

JANUARY 2025

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

9-13 January (Thursday-Monday): International Renewable Energy Agency Youth Forum, Abu Dhabi.

11-13 January (Saturday-Monday): International Renewable Energy Agency Assembly, Abu Dhabi.

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

14-16 January (Tuesday- Thursday): The Light + Intelligent Building Middle East exhibition, Dubai.

19-24 January (Sunday-Friday): Coling 2025, Abu Dhabi.

20-22 January (Saturday-Monday): FESPA Middle East, Dubai World Trade Centre, Dubai.

FEBRUARY 2025

1-8 February (Saturday-Saturday): The Mubadala Abu Dhabi Open, Zayed Sports City’s International Tennis Centre.

2-3 February (Sunday-Monday): L’Etape Dubai cycling race, Dubai.

3-6 February (Monday-Thursday): Medlab Middle East, Dubai World Trade Center.

16 February-1 March: Dubai Dutyfree Tennis Championships, Dubai Dutyfree Tennis Stadium in Al Garhoud.

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

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

Signposted to happen sometime in 1Q 2025:

The first eight fronds of the Palm Jebel Ali will be site-ready, allowing for the commencement of villa infrastructure and civil works.

APRIL 2025

6-11 April (Sunday-Friday): Geo-Spatial Week 2025, Dubai.

7-10 April 2025 (Monday-Thursday) : EFG Hermes One on One conference, Dubai.

7-9 April (Monday-Wednesday): AIM Investment Summit, Abu Dhabi National Exhibition Center

14-16 April (Monday-Wednesday): Dubai Woodshow’s 21st Edition, Dubai World Trade Center

14-16 April (Monday-Wednesday): IPS congress, Dubai World Trade Center.

16-18 April (Wednesday-Friday): World Future Energy Summit,Abu Dhabi National Exhibition, Abu Dhabi.

28 April-1 May (Monday-Thursday): The Arabian Travel Market 2025, Dubai World Trade Center

Signposted to happen sometime in April:

Abu Dhabi Autonomous Racing League, Yas Marina Circuit in Abu Dhabi

MAY 2025

6-7 May (Tuesday-Wednesday): Global Ports Forum, Dubai.

26-28 May (Monday-Wednesday): Arab Media Summit, World Trade Center, Dubai.

SEPTEMBER 2025

8-10 September (Monday-Wednesday): DigiHealth exhibition, World Trade Center, Dubai.

24-25 September (Wednesday-Thursday): Mohammed Bin Rashid Leadership Forum, Mohammed Bin Rashid Center for Leadership Development, Dubai.

OCTOBER 2025

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

Signposted to happen sometime in 2025:

The Middle East Electric Vehicle Show, Expo Center Sharjah.
e& will complete Adnoc’s private 5G network.
Executive Committee Meeting (EXCOM 2025) conference of the World Smart Sustainable Cities Organisation (WeGO)
The International Civil Aviation Organization’s Global Implementation Support Symposium, Abu Dhabi.

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
Dubai to host the Arab Actuarial Conference
United Nations Water Conference 2026, UAE

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