Abu Dhabi raises USD 5 bn in first eurobond sale in 3 years

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WHAT WE’RE TRACKING TODAY

THIS MORNING: AED 2 bn earmarked for post-rain housing damage control + 6G before the end of the decade?

Good morning, wonderful people. We have another interesting newsday for you, as Abu Dhabi taps debt markets for the first time in three years with EUR 5 eurobonds and ADQ plans investments in Australia and Kenya.

HAPPENING TODAY-

#1- It’s the third and final day of the AVPN Global Conference 2024 at The St. Regis Saadiyat Island Resort and Park Hyatt Abu Dhabi Hotel and Villas. The event aims to bring together more than 1.5k leaders in global social investment to advance humanitarian efforts in Asia, according to an Abu Dhabi Media Office statement.

#2- Carpet and flooring industry event Domotex Middle East 2024 also wraps today at the Dubai World Trade Centre. The event brings together industry leaders like Merinos, Oriental Weavers, Solomon Carpets, and Al Abdullatif, as well as brands like Azim Silk.

HAPPENING THIS WEEK-

Lord Mayor Michael Manielli will be in the UAE this week to discuss carbon markets and debt finance for vulnerable countries with officials, in a bid to follow up on the progress made during Cop28, where he led a delegation to the summit, he told The National. The exact agenda for his visit was not disclosed.

AFTER THE STORM-

#1- The UAE cabinet has earmarked AED 2 bn to address the damages to citizens’ homes, with oversight from a newly formed committee, Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum said. Residents affected by flooding and infrastructure damage are advised to seek assistance from relevant authorities.

#2- It’s not just UAE ins. companies that will see claims jump in the aftermath of the storm — claims and reins. costs are expected to jump in several GCC countries following last week’s recent storms in the UAE, Oman, and Saudi Arabia, Asharq Business reports, citing a new report by credit rating agency Moodys.

Still, the storm will have little impact on ins. companies’ losses, on the back of relatively low ins. penetration in GCC countries and compulsory ins. such as third-party car ins. not covering weather-related damages. National protection schemes against significant losses in the ins. sector are also expected to be activated following the storms, further mitigating the impact on ins. companies’ net incomes, Moody’s added.

ICYMI #1- The credit rating agency previously said that the heavy rainfall would add pressure on local ins. companies, especially impacting small and medium-sized firms that have not seen recent income growth, and drive up reins. costs in upcoming renewals for local ins. providers relying on reins. services to mitigate their losses.

ICYMI #2- Some companies have seen ins. claims surge to a record high following last week’s heavy rainfall compared to previous peaks after rainstorms. While vehicle damage claims account for most of the claims, the companies have also received claims from restaurants, shops and other small retailers valued at “hundreds of thousands.”

#3- All roads blocked due to the storm in Sharjah are now open according to the local Emergency, Crisis, and Disaster Management Team in Sharjah, Gulf News writes.

#4-All traffic fines in Dubai incurred on 16 April during the storm will be waived, according to Dubai Police’s Commander-in-Chief Abdullah Khalifa Al Marri, Wam writes.

OUR NEXT CONFERENCE IN CAIRO-

Foreign investors are falling in love with Egypt again… Foreign investors we speak with (debt, equity, and strategic alike) have growing appetite for Egypt. They’re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that’s taking shape after the float of the EGP, and its competitive advantages are clear to many of them: It’s a massive consumer opportunity and a regional export hub of tomorrow.

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: Spark conversations about a future that sees Saudi Arabia, Egypt, and the the UAE at the heart of a more vital Middle East economy — and provide an early, actionable roadmap for those who are “long Egypt.”

We’ll be talking with you about the agenda over the coming couple of weeks. It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow’s opportunities — and who aren’t afraid to answer some tough questions.

*** Interested in attending? Tap or click here to let us know. Seating is limited.

THE BIG STORY ABROAD-

Yesterday, it was Tesla. Today, it’s Meta’s earnings getting ink everywhere in the Western business press (Reuters | Bloomberg | FT | CNBC). The company’s shares fell as much as 19% in after hours trading — wiping out nearly USD 200 bn of its market value — after raising capital expenditure guidance as it looks to ramp up spending on AI, and providing a cautious sales growth forecast. CEO Mark Zuckerberg defended its plans in a call with analysts, saying it will need to “grow our investment envelope meaningfully before we make much revenue from some of these new products.”

The company otherwise posted solid revenues for 1Q 2024, rising 27% y-o-y to USD 36.5 bn, while net income more than doubled to USD 12.37 bn, according to its earnings release.

ALSO- Binance founder Changpeng Zhao could face up to three years in prison for anti-money laundering and sanctions violations. Friends and acquaintances of Zhao sent in 350 pages worth of letters to bail him out, Bloomberg reports.

IN OTHER TRIAL-RELATED NEWS- An Arizona grand jury has indicted 18 people — most of whom are former US President Donald Trump’s Republican allies — on charges of fraud, forgery, and conspiracy, for falsely declaring the Trump president in 2020. Trump himself was named an unindicted co-conspirator. (Reuters | New York Times | Axios)

ALSO GETTING PLAY- A mega mining transaction around the corner? Australian minerBHP has reportedly made a play for British multinational miner Anglo American in what could be the industry’s largest acquisition in years. The takeover would come as BHP looks to expand its portfolio of copper mines amid the energy transition, the Financial Times cites sources as saying.

WATCH THIS SPACE-

We’re getting 6G before the decade is out: The Telecommunications and Digital Government Regulatory Authority (TDRA) has rolled out its roadmap for adopting 6G technology, aiming to adopt services UAE-wide before 2030, Wam reports. The adoption plan kicks off this year with the establishment of a committee tasked with conducting scientific research, and overseeing “the development of technical standards and specifications for 6G.”

The next-generation mobile network will build on the capabilities of 5G by improving frequency efficiency, connection density and traffic management. 6G networks will include AI, network virtualisation, sensing, and comprehensive coverage applications.

DATA POINTS-

#1- Developers in Dubai averaged one launch per every 18 hours in 1Q 2024, with a record 34k new units across 120 off-plan project launches, Khaleej Times reports, citing preliminary numbers released by Cavendish Maxwell’s property monitor. Some 30 projects were launched in March alone, adding 10k units to the market on the back of heightened demand in Dubai’s real estate market.

IN CONTEXT- The value of real estate sales in Dubai climbed 25.9%y-o-y in 1Q 2024 to AED 109.8 bn, with off-plan properties accounting for more than half of the units sold during the quarter. The off-plan market racked up AED 50.4 bn compared to AED 8.2 bn in the secondary market.

#2- Dubai and Abu Dhabi were the only two cities in MENA to rank among the top 20 in the IMD Smart City Index 2024, which surveyed 142 cities worldwide to measure how technology improves citizens’ quality of life. Abu Dhabi sat at 10th position globally, up three spots from 2023, while Dubai jumped five places to 12th.

Fast facts: Abu Dhabi has been listed in the index’s top tier since 2019, alongside Zurich, Oslo, Singapore, Beijing, and Seoul.

#3- The value of property transactions in Sharjah hit AED 10 bn in 1Q 2024, up67.1% y-o-y on the back of new development projects and government support, Wam reports, citing Sharjah Real Estate Registration Department’s latest quarterly report. The number of transactions — which include ownership transfers, sales, mortgages, and valuations — increased 9.3% y-o-y to nearly 23.5k during the quarter. Some 2.8k properties, including 2.2k residential units, were sold, collectively pooling AED 2.5 bn.

Who was involved: UAE citizens accounted for the lion’s share, coming in at AED 4.4 bn across 7.6k properties. Investors from India put money into the second-largest number of properties in the emirate (683), followed by investors from Syria (484), Pakistan (275), and Jordan (227).

CIRCLE YOUR CALENDAR-

The World Economic Forum’sSpecial Meeting on Global Collaboration, Growthand Energy for Development is scheduled for next Sunday and Monday, 28-29 April in Riyadh, Saudi Arabia. The two-day meeting addresses global challenges in economic development, including energy transitions and geopolitical tensions.

It will feature over 700 participants, including Economy Minister Abdulla Bin Touq, who will sit on a panel covering the rise of the tourism sector, and Majid Al Futtaim Holding CEO Ahmed Galal Ismail, who is participating in a panel on MENA economic perspectives.

The International Congress of Arabic Publishing and Creative Industries, hosted by the Abu Dhabi Arabic Language Centre, will convene next Sunday, 28 April at Manarat Al Saadiyat in Abu Dhabi, according to the Abu Dhabi Media Office. The event will feature speakers from 50 countries to discuss Arabic literature and creative works.

Binghatti Development Company is set to unveil the details of Binghatti Hills, the largest development project in Dubai’s skyline, next Monday, 29 April at the Four Seasons Resort Dubai at Jumeirah Beach, followed by a four-day sales event, Albayan reports. The project will comprise 1.6k residential units and 21 commercial outlets.

The Abu Dhabi International Book Fair is set to take place from 29 April to 5 May at the Abu Dhabi National Exhibition Centre (Adnec), with Egypt as the guest of honor and Egyptian novelist Naguib Mahfouz as the focus personality.

The Arabian Travel Market is taking place from 6-9 May at DWTC Dubai under the theme Transforming Travel Through Entrepreneurship. The event will focus on issues relating to entrepreneurial strategies.

The Abu Dhabi International Book Fair (ADIBF 2024) is set to take place from 29 April to 5 May at the Abu Dhabi National Exhibition Centre under the Department of Culture and Tourism. The fair will host 1,350 publishers from 90 countries and 375 local exhibitors presenting over 2k activities.

TheAnnual Investment Meeting (AIM) Congress is scheduled to be held on 7-9 May at the Abu Dhabi National Exhibition Centre. Gathering senior government officials and industry experts, the summit will focus on exploring means of strengthening the economy under the theme Resilient, Sustainable Economic Growth – Creating a Healthy and Prospective Investment through FDI and FPI.

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

Abu Dhabi raises USD 5 bn in first eurobond sale in three years

Abu Dhabi’s first eurobond sale in three years was 4x oversubscribed: Abu Dhabi has sold USD 5 bn eurobonds — its first eurobond issuance in three years — in a sale hailed as “one of the biggest from emerging markets this year,” Bloomberg reports. The offering was more than 4x oversubscribed, with investors reportedly submitting bids worth USD 22 bn, Al Arabiya reports

About the issuance: The issuance comprised three tranches with 5-, 10- and 30- tenors. The emirate narrowed the USD-denominated issuance thanks to strong investor demand from an earlier spread of 70 basis points (bps) over US treasuries, pricing the five-year tranche at 35 bps and the 10-year tranche at 45 bps over treasuries, while tightening the 30-year tranche to 90 bps over treasuries, down from 125 bps.

Background: Abu Dhabi has been eyeing a fresh eurobond issuance for some months, Bloomberg reported in February, joining a wave of debt issuances from emerging economies and looking to boost liquidity.

Abu Dhabi “doesn’t need the money,” senior portfolio manager at Arqaam Capital Mehdi Popotte told Bloomberg, however the eurobond sale will allow the emirate to bolster its presence in the debt market, “[paving] the way for Abu Dhabi’s government-related entities to issue further later this year,” Popotte added.

REMEMBER- S&P Global Ratings expected the emirate to issue around USD 2 bn in new debt annually until 2026 in order to “maintain a presence in the market,” in addition to repaying an average of USD 3 bn per year.

Advisers: The bond sale was managed by our friends at HSBC Holdings and First Abu Dhabi Bank, as well as Abu Dhabi Commercial Bank, Citigroup, JPMorgan Chase & Co, Morgan Stanley, and Standard Chartered.

ADQ, Australia’s Plenary to launch investment platform following acquisition

ADQ + Plenary unveil investment platform: Abu Dhabi’s investment company ADQ is poised to launch a co-development and investment platform in partnership with Australian asset manager Plenary Group, after it snapped up a 49% stake in the asset manager, according to a statement. The platform will focus on investing in public and social infrastructure in high-growth markets, including the GCC, MENA and Central Asia.

Australian media first got wind of the transaction yesterday, reporting that ADQ will acquire the 49% stake for USD 1 bn, citing statements from Plenary Chairman John O’Rourke. The acquisition is expected to take several months to complete.

Who is selling? The transaction will see Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) sell its entire 20% stake in Plenary. The remaining shares will be acquired through a capital injection that will help the company expand its presence across Australia, MENA, Asia, the UK, and Europe, the statement reads. CDQP will retain its majority stake in Plenary’s US construction arm, Plenary Americas.

Who owns what? Plenary will continue to be owned by its Australian founders and senior management, according to the statement. The shareholders include founders Ray Wilson and Paul Oppenheim, CEO David Lamming, and CIO Paul Crowe. Alongside three other executives, they will all retain their 41% stake in Plenary.

This marks ADQ’s first foray into Australia, ADQ Deputy Group CEO Hamad Al Hammadi said. “We are confident that our partnership in Plenary will unlock significant opportunities to contribute to the development of state-of-the-art infrastructure assets, boosting economic growth and social welfare in the target geographies. ADQ’s existing portfolio of infrastructure assets…will serve as a catalyst to leverage the significant potential of public-private partnership projects together with Plenary,” he said.

Plenary already has a presence in the region: The company established its presence in the UAE in 2022 with the UAE’s first schools infrastructure public-private partnership (PPP), the Zayed City Schools project. It has also been awarded other “major projects” expected to be announced soon, the statement said, without disclosing further details.

Al Mal Capital REIT completes AED 180 mn capital increase through tradable rights issue

Al Mal Capital’s real estate investment trust (REIT) raised AED 180 mn after completing a tradable rights issue in a bid to grow and acquire new assets, it said in a DFM disclosure (pdf). The transaction — which was greenlit by the Securities and Commodities Authority — increased the REIT’s total equity to over AED 540 mn. Al Mal is a unit of Dubai Investments.

REFRESHER- Al Mal Capital’s REIT said in February it planned to issue 400 mn new units at AED 1.1 apiece, leading to a share capital increase of up to AED 440 mn if fully subscribed. The company said it would use the proceeds to execute its investment strategy (pdf), which is geared at diversifying the portfolio, with a minimum of 75% of the funds allocated in the UAE and up to 25% in the GCC and other countries.

The mechanics: Existing unit holders received tradable rights at a ratio of one right for every 0.88 units they owned on 23 February. Every full right allowed the unit owners to ultimately buy a new unit at a price of AED 1.10. Rights were tradeable on the Dubai Financial Market from 26 February to 15 March 2024.

SOUND SMART- How rights work: Existing unit holders have the option of not exercising their rights (ie: doing nothing); they can exercise their rights (buy units in proportion to the rights they hold); or trade the rights (sell them to someone else through a DFM-listed broker — and buy more rights if they want more of the Al Mal REIT). Investors who own no units can buy the rights from current unit holders, and folks who do nothing or sell their rights would be diluted down if the rights issuance sees others subscribing.

What they said: “Using the increased capital now available to us as a result of this rights issue, AMCREIT will continue with its plans to diversify our portfolio through the acquisition of high-quality education and healthcare assets,” said Al Mal Capital CEO Naser Al Nabulsi.

What’s next for Al Mal? The Dubai-based asset manager plans to acquire an AED 400 mn educational asset — potentially growing the portfolio's value too close to AED 1 bn — and a healthcare facility later in the year, the disclosure said. The REIT said at the start of the month that it would purchase a new school in Dubai within the next two months.

Uh, Enterprise? What’s a REIT? A real estate investment trust is a mutual fund that owns, finances or manages income-generating real estate assets — commercial, residential, office, and other properties. Some will also invest in real-estate-related securities or private equity transactions that are directly related to the industry.

The REIT could kick off another capital increase in 4Q 2024, with plans to up the number of units available to 1.5-1.8 bn units by year-end, Al Mal Capital MENA Direct Investments Director Sanjay Vig previously said.

IN OTHER CAPITAL MARKETS NEWS-

DFM greenlights price stabilization for BHM Capital: Financial services firm BHM Capital received approval from the Dubai Financial Market (DFM) to carry out price stabilization mechanisms for listed stocks, according to a press release (pdf). The approval will allow BHM Capital to conduct price stabilization transactions to prop up companies’ share prices.

SOUND SMART- Price stabilizing mechanisms involve underwriters purchasing shares in the secondary market to manage volatility in share prices after an initial public offering or other transactions. Think of it as a really strategic share-buyback program run by a banker with the aim of helping a share perform better out of the gate. Share stabilization programs are typically time-limited and wrap up in a matter of weeks after a transaction.

Spinneys has tapped BHM Capital as its price stabilization manager, making the retail chain the first company to benefit from BHM Capital’s service following its debut on DFM. The company is offering a 25% stake on the DFM, and is set to raise up to AED 1.38 bn, with shares expected to begin trading on 9 May.

Core Holdings eyes education, real estate acquisitions with AED 5 bn in planned investments

Asset manager Core International Holdings is investing AED 5 bn over the next five years to boost its portfolio holdings in education, real estate, and financial management, state news agency Wam reports. The primary objective of the investment will be to “enhance the education and scientific publishing sector via its education arm,” Dar Al Marefah, CEO Hany Sabry said, without clarifying the exact breakdown of investments.

The company will also look at land acquisition, development, and project management through its real estate arm, Ara Real Estate Development, and is eyeing Saudi Arabia for investments, according to Wam.

That’s on top of a fresh AED 22 bn investment Ara recently made into a new gated community in Madinat Jumeirah in Abu Dhabi, dubbed Arabian Hills Estate, which it will manage and develop.

The investment firm has five subsidiaries, spanning real estate, education, asset management and financial services — with its asset management arm alone holding AED 723 mn assets, its real estate arm owning an AED 369 mn land bank.

OTHER INVESTMENT NEWS-

Investcorp launches USD 1 bn fund for GCC, China investments: Mubadala-backed Bahraini asset manager Investcorp launched a new USD 1 bn investment fund, Investcorp Golden Horizon, geared towards investing in high-growth companies in consumer, healthcare, logistics, and business services across Saudi Arabia, the wider GCC region, and China, according to a statement. China’s sovereign wealth fund the China Investment Corporation, alongside private investors from the GCC, will anchor the fund.

How is the UAE faring when it comes to cybersecurity preparedness?

SIGN OF THE TIMES- Some 91% of companies in the UAE rely on AI to ramp up their security defenses, focusing on threat detection, response, and recovery, digital communications technology conglomerate Cisco said in a press release. This figure is forecasted to continue rising, with nearly all (99%) companies surveyed intending to bolster their cybersecurity budgets in the coming years.

Robust cybersecurity planning comes on the back of expected threats in the landscape: Some 65% of companies in the UAE faced cybersecurity incidents in the past year that disrupted their business operations, with associated costs exceeding USD 300k for many. 85% expect to face similar incidents in the next one to two years, while 68% of organizations said they plan to roll out significant upgrades to their IT infrastructure over the period to combat security challenges.

AI as a means to combat the cyber talent gap: At the time of Cisco's survey, 90% of companies in the UAE experienced a cyber talent shortage, with only half of the respondents employing over 10 cybersecurity-related roles. The vast majority (95%) of companies are eyeing AI technology integration into their cybersecurity frameworks to bridge over 10% of vacant cybersecurity roles, signaling a positive trend towards innovative tech solutions to address talent scarcity.

Companies like pointed solutions: 82% of UAE companies said that having multiple-point solutions slowed down their team’s ability to detect, respond to, and recover from incidents. Meanwhile, 78% of organizations currently deploy ten or more point solutions in their security stacks, while 26% said they have 30 or more, which, according to Cisco’s analysis “raises concerns.”

UAE ahead globally? UAE companies reported higher interest in enhancing their cybersecurity and IT infrastructure with AI-powered technologies than companies across 30 global markets, according to Cisco’s latest Cybersecurity Readiness Index (pdf). A little over half (52%) of the total companies surveyed said they planned to upgrade their IT infrastructure in the next 1-2 years, while 97% of companies said they would increase spending on cybersecurity in 2024.

Almost nine in 10 companies surveyed — including those based in the UAE — expect their cybersecurity budget to grow by more than 10% over the next year. This comes after 91% of the companies increased their cybersecurity budgets over the past two years, with 61% growing their budgets by at least 20% and 30% increasing them by 30% or more to ward off risk due to digitization, more sophisticated attacks, and financial impact of cyber incidents, which for 12% of the companies surveyed, exceeded USD 1 mn.

Commercial Bank of Dubai, ADIB, and Palm Sports report 1Q results

We have a (small) handful of earnings this morning, including the Commercial Bank of Dubai, Abu Dhabi Islamic Bank, and International Holding Company subsidiary Palm Sports all reporting 1Q 2024 results.

ABU DHABI ISLAMIC BANK-

Abu Dhabi Islamic Bank (ADIB) saw its net income after tax increase 32% y-o-y in 1Q 2024 to AED 1.45 bn, according to the bank’s earnings release (pdf). ADIB’s revenues grew 24% y-o-y during 1Q 2024, reaching AED 2.5 bn on the back of expansion in every business segment and product line. The revenue surge was also driven by a 33% y-o-y increase in non-funded income, boosted by a 40% growth in fees and commissions.

Total assets and deposits contributed to the strong growth: ADIB’s total assets grew by 13% y-o-y during the first quarter of the year, fueled by 8% y-o-y growth in financing and 25% growth in investments. Customer deposits climbed 13% to AED 160 bn, primarily propelled by a 9% increase in current and savings accounts, which now make up 66% of total deposits.

COMMERCIAL BANK OF DUBAI-

The Commercial Bank of Dubai (CBD) saw its net income after tax rise 21.9% y-o-y to AED 701 mn in 1Q 2024, according to the lender’s earnings release (pdf). CBD attributed its success to the expansion in its loan book and current and savings accounts which drove an increase in the lender’s net interest earnings. This growth was further bolstered by non-funded income, which surpassed corporate tax charges, according to the statement.

A good quarter overall: The lender saw a 10.9% y-o-y increase in operating income to AED 1.4 bn. This growth was underpinned by a 7.9% y-o-y rise in net interest income, supported by loan and current and savings accounts expansion and high market interest rates. CBD’s net impairment losses were down 23.1% y-o-y.

PALM SPORTS-

International Holding Company sports management subsidiary Palms Sports saw its net income before tax double during 1Q 2024 to reach AED 16.8 mn, according to the company’s earnings release (pdf). Palms Sports’ total revenues increased by 207% y-o-y, reaching AED 285 mn during the quarter.

REMEMBER- Palms Sports saw its net income fall 21% y-o-y to AED 105 mn in 2023. The IHC-backed company attributed the current growth in net income to its new investment strategy, which includes securing long-term service contracts and embarking on an 'acquisition spree' across diverse sectors to expand its range of services.

The Gulf’s petro-USD influence

The Gulf region’s “petro-USD” power is in the spotlight in a long Bloomberg feature — part of Bloomberg Markets’ April/May Gulf Issue — diving into the confluence of wealth and “soft power” — and what the shift away from oil will mean for both of these in the region as we head into a less fossil-fuel-focused world. The UAE’s investments in everything from ports to agricultural land and overseas real estate exemplifies this shift, Bloomberg writes.

Siemens Mobility and Hassan Allam Construction snag UAE-Oman rail link contract

TRANSPORT-

Siemens Mobility and Egypt’s Hassan Allam Construction will build, design and integrate signaling, telecom, and power supply systems for the UAE-Oman railway link, according to a press release (pdf). The link — also known as the Hafeet Railway — is 303 km long and connects Oman’s Sohar Port to Abu Dhabi. The value of the contract was not disclosed.

ICYMI- The UAE and Oman inked USD 35 bn partnerships earlier this week, including AED 11 bn in allocations towards the rail link to kick off its construction.

Background: Etihad Rail had inked an agreement with Omani national railway developer, Oman Rail, in 2022 to set up the Oman-Etihad Rail Company, a USD 3 bn (c. AED 11 bn) 50-50 JV, for the design, development, and operation of Hafeet Railway. The transport link between the UAE and Oman, first announced in September, is aimed at bolstering trade between the two countries and the region. The rail line will serve both passenger and freight trains.

HEALTH-

Dubai and Singapore-based private equity health firm TVM Capital Healthcare poured USD 17 mn in German mental health programs provider neurocare group AG, Wamda reports. TVM Capital Healthcare's investment will expedite neurocare's global expansion ambitions, including expanding into the US and Saudi Arabia, and developing new hardware and software.

FINTECH-

#1- The Central Bank of the UAE granted digital payments services provider NetworkInternational a stored value facility (SVF) license, according to a press release. The SVF license enables Network International to issue stored value products, including e-wallets and prepaid cards.

SOUND SMART- A stored value facility refers to facilities — including non-cash assets like rewards points, cryptocurrencies, or virtual assets — that customers can pay in exchange for the storage of the value of that facility to make payments with the stored value products.

#2- Shariah-compliant lending app Qardly has soft-launched in the Emirates, allowing users to exchange no-interest loans, according to a press release.

TECH-

#1- Italian marketing solutions company Webidoo has established its regional headquarters in the Dubai International Financial Center (DIFC) Innovation Hub, Wam reports. The partnership will facilitate knowledge-sharing and joint initiatives to drive AI and Web3 technology adoption.

#2- The Abu Dhabi Global Market (ADGM) and Estonian blockchain security auditor Hacken have partnered to establish new standards for blockchain security and compliance, a press release reads.

CAPITAL MARKETS-

Astana International Exchange to join ADX’s Tabadul: The Abu Dhabi Securities Exchange (ADX) signed an agreement with Kazakhstan’s Astana International Exchange (AIX) to officially add AIX to ADX’s cross-market trading platform, Tabadul, reports Wam. The partnership will allow investors to access and directly trade on both bourses through Tabadul, with Kazakhstan’s Freedom Finance Global and BHM Capital onboarded as Tabadul hub brokers, facilitating trading access between Kazakhstan and the UAE.

AIX joins current Tabadul members ADX, Bahrain Bourse, and Muscat Securities Market.

AVIATION-

Victor lands in Abu Dhabi: Europe’s on-demand jet charter platform Victor has moved its global headquarters to Erth Abu Dhabi, reports Wam. This comes after the company was acquired by Abu Dhabi Investment Group in November 2023 (pdf). The company seeks to leverage the emirate’s aviation facilities, regulatory framework, and strategic location next to key markets to boost its MENA market share and expand operations in the region, focusing on Saudi Arabia, Kuwait, Qatar, Egypt and Turkey. It is the first platform to offer sophisticated jet chartering services in the UAE.

INFRASTRUCTURE-

The Energy and Infrastructure Ministry has launched tenders for four construction and renovation projects:

Construction of an additional building for the Federal Authority for Identity and Citizenship in Abu Dhabi, with a bidding deadline on 30 April;
Renovating the Energy and Infrastructure Ministry building in Sharjah, with a bidding deadline on 30 April;
Providing engineering consulting services for the construction of a correctional facility in Sharjah, with the deadline for bidding on 8 May;
Completing the construction of the General directorate Civil Defense Building in Ras Al Khaimah, with a bidding deadline on 16 May. More details on the tenders are available on the ministry’s website.

Third wave of bond default looms in China

China’s economy is edging closer to a potential third wave of bond defaults, on the back of sluggish economic growth, tight government policies and high financing costs, according to a report from S&P Global.

This scenario, expected as early as next year, would mark the third wave of corporate defaults in 10 years, signaling that the government’s current directives might be “creating distorted incentives in the economy,” Charles Chang, greater China country lead for corporates at S&P told {CNBC}.

“Policies aimed at reining in excessive leverage drove the two default waves so far. More policies with similar aims, scale, and effects may lead to the next wave of defaults,” Chang said in the report.

Too much interference in the market? China’s corporate bond default rate fell to 0.2% in 2023, the lowest in at least eight years and well below the 2.6% global rate, according to S&P data. “To a certain extent this is not a good sign, because we see this divergence as something that’s not the result of the functioning of markets,” Chang said.

“We’ve seen directives or guidance from the government in the past year to discourage defaults in the bond market.” But the future of the bond market in the country — once those directives end — remains uncertain, he added.

Stabilizing the real property sector is key, as it can “potentially ease off some of the negative wealth effects that we’ve been seeing since the middle of last year,” according to Chang.

Navigating the risks: The Chinese government should prioritize addressing the real estate market slump in a “comprehensive strategy,” that includes financial risk management, productivity growth and bolstering social safety nets to encourage consumer spending, according to Director of the Fiscal Affairs Department at the IMF, Vitot Gaspar.

THE MARKETS THIS MORNING-

Asian markets are down this morning following two straight days of rallies, with Japan’s Nikkei 225 falling 1.8% and South Korea’s Kospi slipping 1.12%. US futures also fell after Meta’s disappointing earnings forecast and ahead of the release of US GDP data later today.

ADX	9,045	-0.1% (YTD: -5.6%)
DFM	4,167	0.0% (YTD: +2.7%)
Nasdaq Dubai UAE20	3,554	-0.2% (YTD: -7.5%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.9% o/n	5.4% 1 yr
TASI	12,355	-1.0% (YTD: +3.2%)
EGX30	25,917	-3.2% (YTD: +4.1%)
S&P 500	5,061.9	-0.2% (YTD: +6.1%)
FTSE 100	8,036.7	-0.1% (YTD: +4.5%)
Euro Stoxx 50	4,983.6	-0.5% (YTD: +11.2%)
Brent crude	87.8	-0.7%
Natural gas (Nymex)	1.7	-5.7%
Gold	2,345.5	+0.2%
BTC	64,805.8	-2.9% (YTD: +137%)

THE CLOSING BELL-

The ADX fell 0.1% yesterday on turnover of AED 990.6 mn. The index is down 5.6% YTD.

In the green: Presight AI Holding (+4.8%), Bayanat (+4.1%) and Abu Dhabi National Company for Building Materials (+4.1%).

In the red: Rapco Investment (-9.2%), Palms Sports (-8.2%) and Al Seer Marine Supplies and Equipment (-2.8%).

Over on the DFM, the index stayed flat on turnover of AED 546.2 mn. Meanwhile, Nasdaq Dubai fell 0.2%.

CORPORATE ACTIONS-

E& has approved a new progressive dividend policy that will see it pay out dividends with an annual increase of 3 fils per share for the next three years, reaching a dividend per share of 89 fils by 2026, according to a bourse filing (pdf). The company paid out some AED 3.5 bn in dividends for 1H 2023, and will pay another AED 3.5 bn for 2H 2023 on 10 May.

Al Wathba National Ins. has approved a dividend payout of AED 51 mn for 2023,according to an ADX disclosure (pdf).

E7 Group has agreed on a 1:10 share split, according to an ADX disclosure (pdf). Each existing share, valued at AED 2.5, will now be split into ten shares, each valued at AED 0.25. The share capital of the company is AED 524 mn, constituting approximately 2 bn shares with a nominal value of AED 0.25 each.

Americana Restaurants International has approved a dividend payout of AED 661 mn for 2023, according to an ADX disclosure (pdf).

UAE to invest USD 500 mn in Kenya, including in mining and tech + Ecuador next in line for trade agreement

UAE, Kenya ink USD 500 mn investment framework agreement: Abu Dhabi sovereign wealth fund ADQ and Kenya’s National Treasury and Economic Planning Ministry have entered into a USD 500 mn framework agreement, seeking to invest in key sectors within the East African nation, Wam wrote.

…and agree to collaborate on mining and tech: The UAE’s Investment Ministry and Kenya's Ministry of Finance and National Treasury have also signed an MoU to collaborate on investments in the fields of mining and technology, Wam reports. The two countries will look at cooperation in mineral exploration, mine development, mineral processing, refining, and mineral marketing, as well as research and development in the sector, in Kenya.

Background: Foreign Trade Minister Thani Al Zeyoudi finalized a trade and economic agreement with his Kenyan counterpart Rebecca Miano in February, aiming to support growth in trade and investment flows, as well as cooperation on food production, mining, technology, and logistics.

Another trade and economic agreement coming? Foreign Trade Minister Thani bin Ahmed Al Zeyoudi and his Ecuadorian counterpart Sonsoles Garcia agreed to kick off negotiations for a trade and economic partnership agreement between both countries, Wam reported yesterday. The minister namechecked agriculture, tourism, infrastructure, technology, renewable energy as potential sectors for cooperation.

REMEMBER- The UAE signed an economic and trade agreement with Colombia last week, one day after inking another with Costa Rica, the latest in a series of agreements aimed at boosting the UAE’s non-oil foreign trade.

OTHER DIPLOMACY NEWS-

President Sheikh Mohamed bin Zayed Al Nahyan met with Bahraini King Hamad bin Isa Al Khalifa to explore boosting ties, discuss the situation in the region and urge de-escalation and calm, and strengthen Gulf relations. (Wam)
Foreign Affairs Minister Abdullah bin Zayed Al Nahyan also met with his Bahraini counterpart, to discuss boosting cooperation and the situation in Gaza. (Wam)
President Sheikh Mohamed bin Zayed Al Nahyan also spoke with Spanish Prime Minister Pedro Sanchez over the phone to discuss boosting ties and the situation in the region. (Wam)
Justice Minister Abdullah bin Sultan Al Nuaimi met with Albanian Interior Minister Taulant Balla to discuss judicial cooperation and exchanging expertise in the fields of extradition and combating money laundering and crime. (Wam)

CALENDAR

APRIL

26 March-21 July (Tuesday-Sunday): ‘From Kalila wa Dimna to La Fontaine: Traveling through Fables’ exhibition, Louvre Abu Dhabi.

21 April-7 May (Sunday- Tuesday): The ICC Women's T20 World Cup Global Qualifier 2024.

23-25 April (Tuesday-Thursday): Connecting Green Hydrogen MENA, Madinat Jumeirah Conference Centre.

23-25 April (Tuesday-Thursday): Argus Fertilizer Asia Conference, Abu Dhabi.

23-25 April (Tuesday-Thursday): Domotex Middle East 2024, Dubai World Trade Centre.

23-25 April (Tuesday-Thursday): The AVPN Global Conference 2024, The St. Regis Saadiyat Island Resort and Park Hyatt Abu Dhabi Hotel and Villas, Abu Dhabi.

23-29 April (Tuesday-Monday): Subscription period for retail investors for Spinneys’ IPO.

23-30 April (Tuesday-Tuesday): Subscription period for institutional investors for Spinneys’ IPO.

24-26 April (Wednesday-Friday): Global Education & Training Exhibition.

24 April-1 May (Wednesday-Wednesday): Abu Dhabi Mobility Week.

24-25 April (Wednesday-Thursday): Ras Al Khaimah Investment and Trade Summit, Rak Exhibition Centre.

25 April (Thursday): Bayanat AI and Yahsat simultaneous general assembly meetings

25-26 April (Thursday-Friday): DRIFTx, Abu Dhabi.

27-28 April (Saturday-Sunday): Frontiers in Advanced Hepato-Biliary Cancers and Transplant Oncology, Cleveland Clinic Abu Dhabi.

28-29 April (Sunday-Monday): World Economic Forum’s Special Meeting on Global Collaboration, Growth and Energy for Development, Riyadh, Saudi Arabia.

28 April (Sunday): International Congress of Arabic Publishing and Creative Industries, Manarat Al Saadiyat in Abu Dhabi.

29-30 April (Monday- Tuesday): Dubai World Ins. Congress, Atlantis, The Palm.

29 April- 5 May (Friday-Friday): The Abu Dhabi International Book Fair, Abu Dhabi National Exhibition Centre (ADNEC).

MAY

1-2 May (Wednesday-Thursday): Capital Markets Summit, Madinat Jumeirah, Dubai

1-5 May (Wednesday-Sunday): The Sharjah Animation Conference, Expo Centre Sharjah.

6-7 May (Monday-Tuesday): Dubai Fintech Summit 2024, Madinat Jumeirah.

6-9 May (Monday-Thursday): The Arabian Travel Market, Dubai World Trade Centre, Dubai.

7-9 May (Tuesday-Thursday): AIM Congress 2024, Abu Dhabi.

8-9 May (Wednesday-Thursday): Innovative Finance Expo, Jumeirah Emirates Towers.

8-12 May (Wednesday-Sunday): Schmetterling Annual Conference, Al Ain and Abu Dhabi.

9 May (Thursday): Spinneys shares begin trading.

14-15 May (Tuesday-Wednesday): Seamless Middle East, Dubai World Trade Centre.

14-16 May (Tuesday-Thursday): The Airport Show, Dubai World Trade Centre.

15 May (Wednesday): HFM Summit, DIFC.

15 May (Wednesday): UAE and Indian officials are set to meet for the first time on the India-Middle East-Europe Economic Corridor.

18-26 May (Saturday-Sunday): Abu Dhabi Comedy Week, Abu Dhabi.

19 May (Sunday): InvestopiaEurope, Milan.

19 May (Sunday): RTA’s Deadline for bids to design and build Dubai Metro's Blue Line.

21-23 May (Tuesday-Thursday):International Exhibition for National Security & Resilience, ADNEC Centre Abu Dhabi.

24-25 May (Friday-Saturday): Baby Expo, Dubai World Trade Centre.

27-29 May (Monday-Wednesday): Arab Media Forum, Dubai.

30 May (Thursday):Abu Dhabi Family Office Summit, Saadiyat Rotana Resort, Abu Dhabi.

JUNE

2-4 June (Sunday-Tuesday): The World Air Transport Summit and International Air Transport Association (IATA)’s annual general meeting, Dubai.

4-6 June (Tuesday-Thursday): The Hotel Show, Dubai World Trade Centre.

4-6 June (Tuesday-Thursday): INDEX, Dubai World Trade Centre.

4-6 June (Tuesday-Thursday): WORKSPACE, Dubai World Trade Centre.

4-6 June (Tuesday-Thursday): Leisure Show, Dubai World Trade Centre.

15 June (Saturday): Arafat day, national holiday.

16-18 June (Sunday-Tuesday): Eid Al-Adha, national holiday.

Signposted to happen sometime in 1H 2024:

Spinneys inaugurates its first store in KSA

JULY

7 July (Sunday): Islamic new year, national holiday.

SEPTEMBER

9-11 September (Monday-Wednesday): World Utilities Congress, Abu Dhabi.

28-30 September (Saturday-Monday): World Association of Nuclear Operators (WANO) Biennial General Meeting, Abu Dhabi.

OCTOBER

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

NOVEMBER

11-14 November (Monday-Thursday): ADIPEC, Abu Dhabi.

11-14 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi.

11-14 November (Monday-Thursday): ADIPEC Decarbonisation Accelerator, Abu Dhabi.

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

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.

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

10-12 December (Tuesday-Thursday): Middle East Business Aviation, Dubai World Central.

Signposted to happen sometime before the end of the year:

Spinneys inaugurates three more stores in KSA

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