ADCB raises USD 600 mn in Formosa bonds + 4Q was a busy quarter for regional IPOs

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Shuaa Capital covers first tranche of mandatory convertible bond issuance + Abu Dhabi vertiport locations shortlisted

Good morning, friends, and happy hump day. We have another busy issue for you this morning as earnings season kicks into high gear, with newly listed firms like Spinneys and Lulu Retail reporting their 2024 performance. Meanwhile, Abu Dhabi Commercial Bank raised USD 600 mn in Formosa bonds, and we also have a rundown of the region’s IPO activity in 4Q 2024.

WEATHER- Expect a cloudy day across the country, the National Center of Meteorology (pdf) says. Dubai will see the mercury hit 28°C today, with an overnight low of 19°C, while temperatures will hit 27°C in Abu Dhabi, with an overnight low of 19°C.

WATCH THIS SPACE-

#1- First tranche of Shuaa’s bond issuance gets subscribers: Shuaa Capit al secured binding commitments for the first tranche of its AED 425.5 mn mandatory convertible bond issuance, valued at up to AED 150 mn, it said in a disclosure (pdf). Albaher Real Estate Development, United Motors and Heavy Equipment Company, and Eshraq Investments subscribed to the offering through private placements. Following the issuance, the tranche will be converted into shares priced at AED 0.32 per share, and a follow-up issuance with a maximum value of AED 275.5 mn will be offered to the “existing bondholders of the outstanding bonds issued by a Shuaa-related special purpose entity,” the company said previously.

ICYMI- Earlier this week, we reported that Eshraq’s board approved participating in Shuaa’s bond offering — the first of several steps as Eshraq looks to optimize its investment holdings structure. Shuaa Capital’s mandatory convertible bonds come as part of its capital optimization plans, after it underwent restructuring last year following substantial losses in 2023.

#2- Dubai’s Roads and Transport Authority (RTA) will complete technical studies for its solar-powered Railbus system within two years, according to a Dubai Media Office X post. The solar-powered network, designed to complement the metro and tram, aims to be 20-30% cheaper than global counterparts, with capsule-like vehicles holding 40 passengers each.

The details: Each Railbus vehicle will use 3D-printed recyclable materials, and reach speeds of 100kph, with tracks set to be covered in solar panels.The system targets first- and last-mile transit gaps in residential areas, linking to metro stations, RTA CEO Abdul Muhsen Ibrahim Kalbat told The National, adding that a zonal ticketing model will offer tiered pricing.

What’s next? After the studies are completed, a feasibility study will be implemented to explore the best pilot routes and areas to launch the transport network, Kalbat added. Sheikh Mohammed bin Rashid and Sheikh Hamdan bin Mohammed inspected the Railbus prototype this week at the World Governments Summit.

#3- This is where you might hail an air taxi in Abu Dhabi: Abu Dhabi-based drone and aerial logistics firm LODD and Skyports Infrastructure developed designs for vertiports across Al Bateen, Yas Island, and Khalifa Port in Abu Dhabi, after completing feasibility studies, according to a statement. The companies signed an MoU for the vertiports’ development, ahead of the planned introduction of air taxis in the emirate this year.

REMEMBER- Dubai has already gotten approvals for its first vertiport. Dubai International Vertiport (DXV), the UAE’s first commercial vertiport, received design approval from the GCAA last month. Located near Dubai Airport, the facility will support air taxi operations starting in 2026. It’s the first of four planned vertiports in Dubai. Falcon Aviation and Archer Aviation are also set to develop a vertiport network across both emirates ahead of the introduction of air taxis between the two locations.

SPEAKING OF- Archer Aviation raised USD 300 mn in latest funding round: Mubadala-backed eVTOL manufacturer Archer Aviation raised USD 300 mn in a funding round from BlackRock-managed funds, bringing its total liquidity to USD 1 bn, according to a company press release. The company will use the capital to invest in composites and batteries and expects it to help support the development of its hybrid aircraft platform.

#4- The GCC has the potential to grow by an additional USD 2.8 tn over the next decade: The World Governments Summit (WGS) estimated that GCC economies can accelerate regional GDP growth from 3.5% to 6.0% if the countries surveyed improved their weakest productivity determinants, according to the summit’s Productivity Potential Index (PPI)report (pdf). This would add another USD 2.8 tn to their GDP. The report uses what it calls a Productivity Potential Index (PPI) score to look at how each country being sampled is “currently positioned to improve its productivity,” examining the factors that drive productivity in the world’s economies as well as their potential for growth.

How the UAE fared: The UAE’s PPI score indicated that productivity can improve by an additional USD 48.7 per hour worked — placing it at #5 among the six GCC countries for productivity potential, and 39th in the global ranking of 60 countries included in the survey. Saudi Arabia leads among the GCC countries with a PPI score of USD 69.3 per hour worked, followed by Kuwait (USD 60.8), Qatar (USD 57.2), and Bahrain (USD 56.9), while Oman came in sixth (USD 39.8).

PSA-

Sharjah is introducing a new sewage management service fee as of 1 April that will not apply to Emirati citizens, state news agency Wam reports. The fee has been set at 1.5 fils per gallon of water consumption based on the bill issued by the Sharjah Electricity, Water, and Gas Authority.

DATA POINT-

The UAE’s workforce expanded by 12% last year, with skilled labor increasing 13%, Emarat Alyoum reports, citing statements from Human Resources Minister Abdulrahman Al Awar at the World Government Summit. Private firms also saw a growth rate of 17% during the year, Al Awar said.

HAPPENING TODAY-

#1-The International Civil Aviation Organization (ICAO) Global Implementation SupportSymposium is on its final day at the Abu Dhabi National Exhibition Center. It will bring together 1.5k participants, including aviation ministers, industry leaders, and experts from ICAO’s 193 member states, to discuss sustainability and AI in civil aviation. The symposium will include the Global Sustainable Aviation Marketplace exhibition, dedicated to advancing the production of alternative and low-carbon aviation fuels.

#2- World of Coffee Dubai 2025 is on its final dayat Dubai World Trade Center. The global coffee trade event will bring together over 300 exhibitors, coffee professionals, producers, and enthusiasts.

#3- The World Governments Summit 2025 kicked off yesterday in Dubai and runs until tomorrow. Country leaders, international organization heads and business players are meeting to discuss six key themes: effective governance and accountability, financing the future and the global economy, climate crisis mitigation and resilient cities, human-centric futures and capacity building, global health transformations, and emerging frontiers and the future.

HAPPENING THIS WEEK-

#1- The Sharjah Consultative Council will hold its ninth session tomorrow to discuss Sharjah Health Authority’s policy, Wam reports.

#2- Dubai Rising: Building Tomorrow’s Global Business Capital will take place on Friday, 14 February at the Museum of the Future. The event — which is a collaboration between the Dubai Media Office and Georgetown University’s McDonough School of Business — features discussions on Dubai’s vision for global commerce and economic growth with officials, policymakers, business leaders, media, and scholars from the US and UAE.

#3- The National Cybersecurity Strategy will be launched this week, Cybersecurity Council head Mohamed Al Kuwaiti told state news agency Wam. The cabinet approved the strategy last week, outlining five core pillars: establishing a governance framework, safeguarding the digital infrastructure, accelerating secure innovation adoption, building cybersecurity capabilities, and strengthening local and international partnerships.

THE BIG STORY ABROAD-

Trump doubled down on his plan to forcibly displace Gazans in an impromptu press conference with King Abdullah II of Jordan, the first Arab leader to meet with the US President after his controversial statements sparked wide regional and international criticism.

“We’re gonna have Gaza … there’s nothing to buy. Gaza is a war-torn area,” Trump said, responding to a question regarding where the money will come from and who the US will buy Gaza from. Gazans will be resettled in a “parcel of land” in Jordan, another in Egypt, with other countries potentially hosting more refugees, Trump added. On the matter of cutting aid to Egypt and Jordan, the US President said: “I don’t have to threaten that, I think we’re above that.”

King Abdullah seemed unwilling to respond to Trump’s pressures to publicly endorse his plan, circling back to Jordan accepting 2k ill Palestinian children from the strip for treatment. Abdullah added that Arab nations are putting together alternative proposals with the support of regional and European players, and that there is no need to “get ahead of ourselves.” The King later reiterated in posts on X that Jordan is part of a “unified Arab position” opposing any displacement of Palestinians in Gaza and the West Bank.

Egypt was out with a statement early this morning, confirming it is planning to “present a comprehensive vision for the reconstruction of the Gaza Strip in a manner that ensures the Palestinian people remain in their homeland and aligns with their legitimate and legal rights.”

The conference came as the fraught ceasefire in Gaza is on the brink of collapsing. Israeli Prime Minister Benjamin Netanyahu warned Israel will resume “intense fighting” if Hamas does not move forwards with the planned release of Israelis, with Israeli troops already amassing in and around Gaza. Meanwhile, Trump reiterated in the presser his advice that Israel “let hell break out” if Hamas ignores the deadline he put earlier for releasing captives by Saturday noon. (Bloomberg | NYTimes | CNN | Reuters | BBC)

MORE FROM TRUMP- Trump earlier signed an executive order to halt enforcement of the Foreign Corrupt Practices Act that prohibits bribing foreign government officials for business gains. “It’s going to mean a lot more business for America,” the President said. (FT | Reuters | BBC)

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MARKET WATCH-

Theglobal oil sector will need an investment of USD 17.4 tn (c. USD 640 bn annually) to meet demand between 2024 and 2050, Opec’s Secretary-General Haitham Al Ghais told Wam. The exploration and production sectors will account for the largest share, with USD 14.2 tn in investments needed during the period (c. USD 525 bn annually).

REMEMBER- Opec expects world oil demand to increase by 18 % to 120.1 mn barrels per day by 2050. The oil cartel’s demand growth estimate is 1.4 mn bbl / d in 2025, down from last year’s estimate of 1.6 mn bbl/d in 2024. Meanwhile, the International Energy Agency forecasts oversupply in global markets in 2025, with the lifting of Opec+’s production cuts in April 2025 leading to an excess of 1.4 mn bbl, or a 950k overhang if it does not stick to this timeline.

Talabat + Oman’s OQEP generated more than half of the proceeds of the region’s IPO activity in 4Q -EY

MENA markets were home to 25 IPOs in 4Q 2024, making up nearly half (46%) of the 54 IPOs seen in the region last year, according to EY’s MENA IPO Eye 4Q 2024 report (pdf). Companies in the region raked in a total of USD 7.9 bn in IPO proceeds last quarter, up 59.4% compared to the same period in the previous year.

Talabat + OQEP saved the quarter: Talabat’s DFM debut and Oman’s OQ Exploration & Production’s Muscat listing accounted for the bulk of proceeds, at around USD 2 bn each. Without these two IPOs, IPO proceeds would have fallen on an annual basis.

Share performance on the first day of trading varied across the region during the quarter, with 12 out of 25 listings seeing gains on their debut. We took a look at post-IPO share performance across the region last year in a deep-dive last week.

A snapshot of 2024: The region saw a total of 54 IPOs across MENA markets in 2024, against 48 in 2023, most of which were concentrated in the GCC. Total listings raised a combined USD 12.6 bn in proceeds throughout the year — up 17.6% y-o-y, with the UAE being home to some of the region’s heftiest IPOs in terms of value. Nearly half of all MENA market IPOs in 4Q (11 out of 25) offered a free float exceeding 30% of their share capital, signaling strong investor appetite.

TOP PLAYERS-

Saudi Arabia topped the IPO league table in terms of volume: The Kingdom saw the highest number of listings in 4Q 2024 with 17 IPOs — five of which were on the main market — locking in USD 1.2 bn in proceeds. Arabian Mills and United International Holding raised the most proceeds in the Kingdom in 4Q at USD 300 mn each. While Tadawul IPOs raised more capital, the parallel market Nomu saw more companies going public with 12 IPOs raising a total of USD 119 mn during the quarter.

Commercial and professional services IPOs raised the most funds in the Kingdom last year at 20%, materials at 12.5%, food and beverages at 10%, and healthcare equipment and services at 10%.

The UAE ranked first in terms of value: Three companies went public on the ADX in 4Q 2024, with Lulu Retail’s USD 1.7 bn IPO, ADNH Catering USD 235 mn IPO and Mair Group’s direct listing. Meanwhile, the DFM only saw one big-ticket listing in 4Q, which raised more proceeds than all of the ADX’s combined proceeds for the period — Talabat Holding’s USD 2 bn IPO.

Meanwhile in Egypt: CBE-owned United Bank was the only company to hit the EGX in 4Q 2024, out of a total of two IPOs in the country throughout the year. The move marked the first public offering of a state-owned bank in over a decade and the first for any state-owned entity since 2021, as part of a broader privatization push.

THE OUTLOOK-

What’s in the pipeline this year? A total of 38 companies and 22 funds are planning to list across various exchanges in the region this year, signaling continued investor confidence in MENA markets. Saudi Arabia is set to lead the charge with 26 upcoming IPOs, followed by the UAE (3 IPOs), Qatar (1 IPO), Egypt (5 IPOs), and Algeria (2 IPOs). Among the high-profile companies eyeing IPOs are UAE flag carrier Etihad Airways and Dubai PE firm Amanat Holdings along with Savola’s consumer retail arm Panda Retail and PIF-backed lender Riyad Capital in Saudi Arabia.

Will ESG be steering market dynamics? EY sees ESG being a key theme shaping the Middle East’s investment landscape this year. Among other sustainability measures, the UAE’s new carbon emission law, set to take effect in May, mandates companies to report emissions, adopt decarbonization strategies and engage in carbon offsetting, setting penalties for non-compliance. These standards are expected to positively impact IPO activity, as more companies brand themselves as ESG-compliant to appeal to a wider pool of investors.

ADCB’s Formosa bond issuance raises USD 600 mn

Abu Dhabi Commercial Bank (ADCB) raised USD 600 mn through a five-year floating-rate Formosa bond, priced at a spread of 105 basis points above the secured overnight financing rate (SOFR), Asharq Business reports.

The issuance: The Reg S issuance received an A positive credit rating by S&P Global and an A+ stable rating from Fitch, Zawya reports. Settlement is expected on 26 February, with proceeds set to finance general corporate purposes for the bank.

Formosa bonds? Formosa bonds are issued in Taiwan but are denominated in a non-Taiwanese currency. The bonds will be listed on the Taipei Exchange and Euronext Dublin. Other Emirati issuers in Taiwan’s bond market include First Abu Dhabi Bank (FAB), which raised USD 800 mn and Mubadala, which issued USD 750 mn in Formosa bonds.

ADCB has been somewhat regularly tapping debt markets: ADCB was reportedly considering a USD 500 mn Tier 2 issuance last September. In 2023, the bank raised a USD 650 mn from a green bond issuance, after it raised USD 500 mn the previous year. ADCB also issued USD 540 mn in Formosa bonds in 2018.

ADVISORS- HSBC and Standard Chartered’s Taiwan offices are acting as joint managers.

OTHER DEBT NEWS-

Emirates NBD led Al Ahli Bank of Kuwait’s (ABK) USD 1 bn syndicated term loan facility — the lender’s largest debt financing to date — and acted as facility agent, according to a statement from ABK. Al Tamimi & Company advised ABK on the transaction, with partner Omar Handoush leading the legal team, according to a separate statement (pdf).

IN CONTEXT- ABK closed the USD 1 bn loan facility last month. The facility initially launched at USD 750 mn but upsized after receiving 60% oversubscription, reflecting strong demand from banks across the Middle East, Europe, Asia, and the US. The three-year facility will be used to refinance existing debt and support ABK’s general funding needs, the statement said.

Other advisors included Commerzbank, Doha Bank, Emirates NBD Capital, Industrial and Commercial Bank of China, and Sumitomo Mitsui Banking Corporation, who served as bookrunners and mandated lead arrangers. Saudi National Bank served as mandated lead arranger; Abu Dhabi Commercial Bank, HSBC, and National Bank of Fujairah as lead arrangers; the Bank of Baroda, China Construction Bank, Mashreqbank, Korea Development Bank, Banque Misr, Bank of New York Mellon, and Fubon Bank as arrangers; and Bankinter, Industrial Bank of Korea, and Citi Bank as managers; with Emirates NBD Capital also serving as documentation bank.

AppliedAI lands USD 55 mn Series A funding round led by G42

AppliedAI secures USD 55 mn Series A funding round: Abu Dhabi-based AppliedAI secured USD 55 mn in a Series A funding round led by G42, according to a press release. Palantir, Bessemer Venture Partners, McKinsey, and Accrete Capital also participated in the round. This round comes after the company’s pre-investment valuation reached USD 300 mn.

Where will the funds go? The new capital will fund AI tool development and team expansion to support more clients in the US and Europe.

G42 is not a new investor: The startup previously raised USD 42 mn in funding in 2022 from G42 and the Al Maktoum family.

About AppliedAI: Founded in London in 2021, AppliedAI relocated to Abu Dhabi in 2022 to leverage government grants. The company automates administrative tasks in heavily regulated sectors such as healthcare, ins., and pharma. Its hybrid model uses AI to help process medical billing records and ins. claims.

IN OTHER G42 NEWS-

Abu Dhabi’s G42 will invest in France in partnership with AI hosting infrastructure data center DataOne, according to a press release. The initiative is led by Core42, G42’s sovereign cloud and AI infrastructure subsidiary. The partnership will see the development of an AI data center in Grenoble, France, powered by AMD AI technologies for data centers. The new facility — offering French enterprises, researchers, and innovators the computational power required for AI development — is set to become operational by mid-2025.

REMEMBER- Abu Dhabi AI fund MGX also plans to invest USD 30-50 bn in a data center and AI campus in France, with additional funding from a consortium of French and Emirati firms. The first tranche of investment will be announced during French President Emmanuel Macron’s flagship investment event later this year.

More earnings pour in…

ADNOC DISTRIBUTION-

Adnoc’s retail arm Adnoc Distribution reported a 14.3% y-o-y decline in net income attributable to shareholders to AED 580 mn in 4Q 2024, according to the company’s management report (pdf).The decline was driven by inventory movements, AED 60 mn in corporate income tax expenses, and one-off items. Revenue for the quarter fell 7.6% y-o-y to AED 8.8 bn due to lower selling prices.

For 2024, net income decreased 7% y-o-y to AED 2.4 bn, according to the firm’s financials (pdf), impacted by higher finance costs and AED 243 mn in corporate income tax expenses. Revenues grew 2.4% y-o-y to AED 35.5 bn, supported by increased fuel volumes, a growing contribution from non-fuel retail businesses, and timing of the consolidation of TotalEnergies Marketing Egypt.

Dividends: Adnoc Distribution will distribute AED 1.3 bn in dividends for 2H 2024 in April 2025, subject to shareholders’ approval at the general assembly meeting in March, according to its earnings release (pdf). In 2024, the company approved a five-year dividend policy (2024–2028), committing to distributing USD 700 mn or a minimum of 75% of net income, whichever is higher.

Looking ahead, Adnoc Distribution plans to add 40 to 50 new stations across its network, including 30 to 40 in Saudi Arabia in 2025, the company said in its earnings release. The firm also aims to install around 100 additional fast and super-fast charging points in 2025. It also targets doubling the number of Tier-1 food and beverage properties this year.

SPINNEYS-

Spinneys saw its bottom line rise 13.9% to AED 289.6 mn in 2024, according to the retailer’s consolidated financial statements (pdf). The retailer reported a 12.3% increase y-o-y on revenue to AED 3.2 bn.

The rise in revenues is attributed to the opening of seven new stores in the UAE and Saudi Arabia, with particularly strong performance in Fresh Sales and Private Label, according to a separate earnings release (pdf). The increase in net income is driven by “efficient sourcing and supply chain management and Spinneys’ highly successful private label strategy.”

The company’s board of directors recommended a final dividend of AED 100.8 mn, equivalent to 70% of net income for the year. Subject to shareholder approval, the dividend is expected to be distributed in April 2025, and takes total dividends for the year to AED 203.4 mn.

REMEMBER- Spinneys debuted on the DFM in 2024, raising AED 1.4 bn in proceeds. The supermarket chain’s order book was 64x oversubscribed excluding cornerstone investors.

LULU RETAIL-

Lulu Retail saw its net income from continuing operations fall 38.1% y-o-y to USD 64.7 mn, on the back of “slower revenue growth and higher interest charges resulting from increased working capital debt,” according to its earnings release (pdf). Lulu Retail booked USD 1.9 bn in group revenues during the quarter, up 1.8% y-o-y. Like-for-like (LFL) sales during the quarter dipped 0.9% y-o-y, which the retailer attributed to “softer sales in Saudi Arabia, Oman, and Kuwait.”

On a full-year basis: Lulu Retail’s FY 2024 revenues rose 4.7% y-o-y to USD 7.6 bn, with net income from continuing operations rising 12.6% y-o-y during the year to USD 216.3 mn. Lulu Retail’s profit margin rose 20 basis points to 2.8% in FY 2024, “driven by an improvement in operating profit and enhanced performance in EBIT margin,” it said in the earnings release.

Dividends: Lulu Retail’s board of directors has proposed paying out a total of USD 84.4 mn in dividends for the year — equivalent to 85% of the semi-annual distributable net income from continuing operations. The total sum would see Lulu Retail pay out USD 0.82 in dividends per share.

REMEMBER- Lulu Retail made its debut on the ADX last year, raising USD 1.7 bn and achieving a USD 5.7 bn market cap. However, its shares have seen a significant drop since the debut, trading at AED 1.66 on Tuesday, down 22.9% from their debut share price of AED 2.04.

INTERNATIONAL HOLDING COMPANY-

Abu Dhabi-based International Holding Company (IHC) saw its net income drop 22.7% y-o-y to AED 25.5 bn in 2024, according to its financial statements (pdf). The conglomerate attributed the decline to allocation of resources toward high-impact projects and scaling subsidiaries, according to an earnings release (pdf). The move is part of a broader strategic pivot, with IHC doubling down on high-value investments to boost long-term shareholder returns.

The conglomerate’s revenue surged 54.4% y-o-y to AED 92.8 bn, driven by strong growth in real estate, construction, and marine and dredging segments. This performance was supported by robust market demand, strategic acquisitions, and successful project execution.

REMEMBER- The conglomerate had a busy year, establishing 2PointZero in January 2024 as a holding company with some AED 100 bn (USD 27 bn) in assets under its umbrella. Last August, it launched Rorix Holdings, a global finance and trade facilitation holding company focused on financial services, trade finance, advisory, commodities, and trade ins. Its subsidiary International Resources Holding snagged a 51% stake in Zambia’s Mopani Copper Mines for USD 1.1 bn last April, while IHC absorbed nearly 100% of Colombian food manufacturer Grupo Nutresa and raised its stake in Nutresa to 14.83% that same month. IHC also gained a 33.07% stake in Q Holding after transferring 49% of its stake in Modon Properties to the company.

PUREHEALTH-

Healthcare giant PureHealth’s turned to the black in 4Q 2024, reporting a net income of AED 279 mn, after a net loss of AED 307 mn in 4Q 2023, according to the company’s earnings release (pdf). The firm’s revenue rose by 61% y-o-y to AED 6.9 bn during the same quarter.

On an annual basis, the company’s net income rose by 77.8% y-o-y to AED 1.7 bn in 2024. The firm’s revenue rose by 57.6% y-o-y to AED 25.9 bn during the same period, attributed to “organic growth and successful local and international acquisitions,” particularly in the hospitals segment.

REMEMBER- PureHealth inked an agreement to acquire a 60% stake in Hellenic Healthcare Group in January 2025, with the sale valuing the company at USD 2.3 bn. The company also completed its acquisitions of the UK-based Circle Health Group and Sheikh Shakhbout Medical City in January 2024.

PRESIGHT-

AI-powered data analytics company Presight AI Holding reported a 7.4% y-o-y increase in net income to AED 612.8 mn for FY 2024, according to its financials (pdf). The company’s revenue climbed 24.3% y-o-y to AED 2.2 bn thanks to an increase in multi-year contracts, strong new order inflows, and expansion across international markets, according to an earnings release (pdf).

Presight’s global operations accounted for 23% of total revenue in FY 2024, with international bookings surging 3.5 times to AED 508.2 mn.

DEYAAR DEVELOPMENT-

Dubai’s Deyaar Development recorded a 7.5% y-o-y increase in net income after tax to AED 473.9 mn in 2024, according to its financials (pdf). Net income was up 14.7% to AED 505.4 mn before corporate tax. The real estate developer and service provider’s total revenue reached AED 1.5 bn, up 20.6% y-o-y.

The rise in earnings can be credited to a surge in property development revenue, according to a separate earnings release (pdf), with some AED 1.2 bn in property development revenues accured, representing a 25.6% y-o-y increase. The company also documented 5% y-o-y growth in revenue in other business segments.

The firm undertook several new developments during the year — including “strategically located projects in Dubai, such as ELEVE, Rosalia Residences, and Park Five,” as well as RIVAGE in Abu Dhabi, developed in collaboration with Arady Properties.

DUBAI ISLAMIC BANK-

Dubai Islamic bank saw its bottom line rise 16.5% y-o-y to AED 8.2 bn in 2024, according to the bank’s financial statements (pdf). The lender reported a 16% total operating income increase y-o-y to AED 23.3 bn.

Dividends: The Board of Directors proposed distributing cash dividends of 45 fils per share, subject to approval by the bank’s general assembly of shareholders, according to a separate earnings release (pdf).

NATIONAL BANK OF UMM AL-QAIWAIN-

The National Bank of Umm Al Qaiwain saw its net income increase 0.7% y-o-y to AED 506 mn in 2024, according to the bank’s financial statements (pdf). Net income before tax reached a record AED 551 mn. The lender reported a 6.1% net operating income rise y-o-y to AED 655.5 mn.

The bank proposed dividends worth 18% of its share capital, equivalent to some AED 360 mn.

Investcorp appoints Mohamed Aamer as an interim CEO + UAE President grants Omar Habtoor Al Darei minister rank

Investcorp taps interim CEO: ADX-listed Bahraini investment manager Investcorp Capital appointed Mohamed Aamer (LinkedIn) as interim CEO, replacing Timothy Mattar (LinkedIn), who is retiring after 30 years with the group, according to a press release. Aamer previously served as a managing director in Investcorp’s private wealth department. The company will conduct a formal external search for a long-term successor. Last month, the company, which listed on the ADX in 2023, said it may be looking at a potential IPO or strategic partnership in the coming years.

Omar Habtoor Al Darei granted rank of minister: President Mohamed bin Zayed Al Nahyan has granted Omar Habtoor Al Darei, chairman of the General Authority of Islamic Affairs, Endowments, and Zakat, the rank of minister by federal decree, Wam reports. Al Darei also serves as the General Director of the UAE Council for Fatwa and is a board member at Mohamed bin Zayed University for Humanities.

MultiBank introduces CFDs + Swvl secures USD 2 mn pre-funded warrants

CAPITAL MARKETS-

MultiBank’s business clients can now buy, sell CFD stocks: Financial derivatives broker MultiBank Group has introduced contracts for difference (CFD) on its mobile application and trading platform, it said in a press release. These allow traders to speculate on the price movements of stocks without actually owning them. The group has recently introduced a crypto-exchange and a new interbank trading platform with Mashreq, enabling its clients to buy and sell FX, commodities, indices, cryptocurrencies and now CFD using a single account.

STARTUPS-

#1- Dubai-based mass transit app Swvl is raising USD 2 mn from pre-funded warrants after investors have exercised their right to purchase additional shares in a previous private placement, according to a statement. The purchase price was set at USD 4.79 per share, with investors agreeing to lock up the securities bought for six months and limit transfers to less than 20% every 90 days thereafter. The company plans to use these funds to boost its working capital and general corporate purposes, including expanding its operations in the US.

REMEMBER- This investment acts as an extension to the USD 4.7 mn private placement in November 2024. The company also obtained a sustainable credit facility from HSBC to expand its pipeline of client contracts in 4Q 2024 during the same month. It previously agreed to sell USD 20 mn worth of new shares back in 2022 to an undisclosed institutional investor.

#2- Hub71 welcomes 27 startups to its latest cohort: Abu Dhabi’s global tech ecosystem Hub71 added 27 startups to its 16th cohort, expanding its total supported ventures to 357, it said in a press release. The new batch includes startups across fintech, climate tech, health tech, and digital assets, with 63% headquartered outside the UAE in major tech hubs like the US, the UK, and Germany. These startups have raised USD 145 mn (AED 532 mn) in funding collectively, with an average of USD 4.9 mn (AED 18 mn) per startup.

Notable newcomers: Among the standout entrants is Vivan Therapeutics, a UK-based precision medicine company that uses AI to personalize cancer treatment. Homegrown startups make up around one-third of the cohort. Notable UAE-based additions include Qashio, an award-winning financial management platform that has raised USD 10 mn (AED 36 mn), and Switch Foods, a food-tech company producing sustainable plant-based meats with USD 12.5 mn (AED 45.9 mn) in funding.

BUSINESS-

#1- Seed Group partners with Commenda: Seed Group, the Private Office of Saeed Bin Ahmed Al Maktoum, inked an agreement with US-based compliance management company Commenda to facilitate smoother market entry for global clients and support business expansion and compliance in Dubai and the wider UAE, Khaleej Times reports.

#2- ADDED and GWU collaborate to enhance women’s role in the economy: The Abu Dhabi Department of Economic Development (ADDED) and the General Women’s Union (GWU) have inked an agreement to empower women in the economic sector and increase their participation in business and entrepreneurship, state news agency Wam reports. The partnership includes initiatives to develop female talent, support training programs, and promote women’s involvement in non-traditional industries with low female representation.

Following up: A dedicated committee will be formed to assess progress and increase female representation in major economic activities. The agreement also establishes a direct link between ADDED’s economic license databases and GWU’s women’s progress tracking system. ADDED will also collaborate with GWU to coordinate with regional and international organizations focused on women’s economic empowerment.

OIL AND GAS-

Dragon Oil explores new investments in Iraq: A delegation from Dubai’s Dragon Oil, led by CEO Ali Rashid Al Jarwan, met with Iraq’s Oil Minister Hayan Abdul Ghani to discuss new investments in oil and gas, Wam reports. The talks focused on expanding cooperation in oil field development and exploring high-potential energy projects.

REAL ESTATE-

Ellington, RAK Properties appoint main contractor for AED 310 mn Porto Playa: Dubai-based Ellington Properties and RAK Properties have appointed Nantong Construction Group as the main contractor for Porto Playa, a AED 310 mn waterfront residential development on Hayat Island, AlKhaleej reports. The project will feature studios, apartments, townhouses, and villas, and is set for completion in 4Q 2026.

AVIATION-

SAF One + Airbus partner up to boost SAF: Dubai-based sustainable aviation fuel (SAF) developer SAF One Energy Management Limited (SAF One) inked an MoU with Airbus to advance the adoption of SAF in the aviation industry, according to a press release.

About SAF One: It is a platform for delivering SAF to the global aviation industry to reduce carbon emissions and support the transition to sustainability, according to the company’s website. SAF One does this through end-to-end solutions to cater to the increased demand for SAF through a network of airlines, financiers, and technology and feedstock providers.

COMMODITIES-

Dubai + FAO sign food safety agreement: The Dubai Government and the Food and Agriculture Organization (FAO) have inked an agreement to enhance food safety and reduce food waste and loss, FAO assistant director-general and regional representative for the Near East and North Africa, Abdul Hakim Elwaer told state news agency Wam on the sidelines of the World Government Summit. Through new policies and advanced mechanisms, the initiative aims to ensure sustainable resource management and improve supply chain efficiency.

MANUFACTURING-

Sharjah Ruler Sultan bin Mohammed Al Qasimi issued a decree establishing the Sharjah Design Centre (SDC), state news agency Wam reports. The center, based in the Sharjah Creative Quarter, will focus on prototype design and manufacturing, supporting entrepreneurship, innovation, and professional development. The decree grants the center financial and administrative independence under government ownership.

AND- Al Qasimi issued another decree appointing Hind bint Majid Al Qasimi as director of the SDC, tasked with overseeing the center’s strategic direction, administration, and development, Wam reports.

SUSTAINABILITY-

The Mohamed bin Zayed Water Initiative and the World Bank have signed an MoU to address global water scarcity by accelerating innovation, increasing investment, exploring new financing mechanisms, and fostering cooperation between public and private sectors and international organizations, state news agency Wam reports.

Trump’s tariffs could delay Fed rate cuts as inflation risks rise

Trump’s trade policies will likely put Fed rate cuts on hold — at least for now: The US Federal Reserve is expected to hold off on cutting interest rates until at least next quarter, with US President Donald Trump’s recently announced tariffs igniting fresh concerns about inflation risks, according to a Reuters poll of 101 analysts conducted between 4-10 February. The survey results suggest that Fed officials will adopt a wait-and-see approach as they assess how tariffs and other policy changes could affect the economy before making any further rate cuts.

The forecast marks a stark shift from Reuters’ January poll, which saw close to 60% of economists agree that the Fed would cut rates in March. In contrast, just 22 of the 101 analysts polled in February expected a cut in March, with another 45 penciling in a cut for 2Q 2025. Only 17 of the 99 analysts who offered end-of-year forecasts believed that the Fed would hold off on rate cuts until 2H, with another 16 not expecting any cuts this year. Futures markets, for their part, are currently pricing in just over a 50% probability of one rate cut by mid-2025.

The size of the year’s cuts is also up in the air: The range of forecasts for the Fed’s end-2025 rate target is unusually wide, spanning from 3.00-3.25% on the lower end to 4.50-4.75% on the high end.

The uncertainty is all thanks to Trump: The Fed and economic analysts alike have been bracing for the impact of Trump’s policies since his election win in November 2024, with officials indicating that they are reluctant to make additional cuts until the full effect of his policies becomes clear. The Fed declined to make a rate cut at the last meeting of its Federal Open Market Committee (FOMC) on 29 January, prompting Trump to deride the decision before making a sharp about-face several days later.

The US president’s recently imposed tariffs are a key part of the picture, with ING Economist James Knightley telling Reuters that “the tariffs are inflationary and could be quite negative for economic growth as well.” Trump has already imposed a 10% tariff on USD 450 bn worth of Chinese goods and 25% tariffs on steel aluminum imports and vowed to impose reciprocal tariffs matching those imposed by other US trade partners. The president has also threatened to impose 25% tariffs on US imports from Mexico and Canada, with the measures on hold until 1 March as the neighboring countries continue to negotiate over border security.

Analysts have broadly reconsidered their inflation forecasts since Trump’s win, with 90% of the economists that participated in both the October 2024 and February 2025 Reuters polls revising their 2025 inflation estimates upward by an average of 40 basis points between the two polls.

We may not get more clarity on the Fed’s long-term vision for interest rate cuts for quite a while: “The uncertainty is likely enough to keep Fed officials on the sidelines over the coming months, and if high tariffs are ultimately imposed then the subsequent rise in inflation will prevent further easing over the remainder of 2025,” Capital Economics’ Neil Shearing told the newswire.

MARKETS THIS MORNING-

Asian markets are in the green in early trading this morning — Japan’s Nikkei is looking at gains of 0.4%, the Shanghai Composite is up 0.1%, and Kospi is up 0.2%.

ADX	9,639	+0.1% (YTD: +2.3%)
DFM	5,336	+1.4% (YTD: +3.4%)
Nasdaq Dubai UAE20	4,470	+1.1% (YTD: +7.3%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.1% o/n	4.3% 1 yr
TASI	12,424	-0.4% (YTD: +3.2%)
EGX30	29,564	-1.1% (YTD: -0.6%)
S&P 500	6,069	0.0% (YTD: +3.2%)
FTSE 100	8,777	+0.1% (YTD: +7.4%)
Euro Stoxx 50	5,391	+0.6% (YTD: +10.1%)
Brent crude	USD 76.78	+1.2%
Natural gas (Nymex)	USD 3.52	+2.2%
Gold	USD 2,933	-0.1%
BTC	USD 95,926	-1.5% (YTD: +2.8%)

THE CLOSING BELL-

The ADX rose 0.1% yesterday on turnover of AED 1.5 bn. The index is up 2.3% YTD.

In the green: Aldar Properties (+7.1%), Rak Properties (+5.6%) and Apex Investment (+5.4%).

In the red: Lulu Retail (-9.8%), Eshraq Investment (-3.9%) and Bildco (-3.7%).

Over on the DFM, the index rose 1.4% on turnover of AED 952.6 mn. Meanwhile Nasdaq Dubai closed up 1.1%.

CORPORATE ACTIONS-

Investcorp Capital approved the distribution of USD 56.3 mn (AED 206.0 mn) in interim dividends for 2H 2024, according to an ADX disclosure (pdf).

Plenty of cooperation discussed with officials at the World Government Summit

UAE leaders engage in high-level talks at World Government Summit 2025: President Sheikh Mohamed bin Zayed Al Nahyan met with Pakistan’s Prime Minister Muhammad Shehbaz Sharif in Abu Dhabi at the World Governments Summit 2025 to discuss strengthening economic, trade, and development ties, Wam reports.

Dubai Ruler Mohammed bin Rashid Al Maktoum met with IMF Managing Director Kristalina Georgieva to discuss global economic challenges and enhancing UAE-IMF collaboration, Wam reports. Al Maktoum also held talks with several Arab finance ministers at the Arab Fiscal Forum, focusing on regional economic cooperation and knowledge exchange, Wam reports.

ALSO FROM THE SUMMIT-

Abdullah bin Mohammed Al Qasimi, Ruler’s Representative for Ras Al Khaimah, met with Sri Lankan President Anura Kumara Dissanayake to discuss expanding bilateral economic and investment ties (News 1st)
UAE Energy Minister Suhail Al Mazrouei discussed trade and renewable energy with Kyrgyzstan’s Cabinet Chairman Adylbek Kasymaliev, who invited him to a 2025 investment forum in Bishkek in 2025, (AKIpress)
Sheikh Mohammed bin Rashed Al Maktoum met with Poland’s president Andrzej Duda to discuss bilateral relations, economic cooperation and ways to strengthen through knowledge exchange in government innovation. (Statement)

Sheikh Abdullah bin Zayed Al Nahyan met with the foreign minister of Syria’s transitional government, Saad al Shibani, where the two discussed the two countries’ relations and regional developments. (Wam)
Guatemala aims to boost UAE partnerships in ports and airports, the country’s Economy Minister Gabriela García said at the World Government Summit on Tuesday. (Wam)

CALENDAR

FEBRUARY

7 February-29 April (Friday-Tuesday): The Abu Dhabi Festival, Abu Dhabi.

8-20 February (Saturday-Thursday): Dubai Games 2025, Dubai.

10-12 February (Monday-Wednesday): Japan Kyoto Trade Exhibition, Dubai Word Trade Center.

10-12 February (Monday-Wednesday): World Of Coffee Dubai 2025, Dubai World Trade Centre.

10-12 February (Monday-Wednesday): Japan Kyoto Trade Exhibition 2025, Dubai World Trade Centre.

10-12 February (Monday-Wednesday): ICAO Global Implementation Support Symposium, Abu Dhabi National Exhibition Centre.

10-13 February (Monday-Thursday): The Dubai Sugar Conference, InterContinental, Dubai Festival City.

11-13 February (Tuesday-Thursday): World Government Summit 2025, Dubai.

14 February (Friday): The deadline for the consultation period for the Securities and Commodities Authority’s draft regulation on security tokens and commodity tokens.

14 February (Friday): The Dubai Rising: Building Tomorrow’s Global Business Capital, Museum of the Future, Dubai.

14-16 February (Friday-Sunday): The UAE Muay Thai Championship, Space 42 Arena, Abu Dhabi.

14-16 February (Friday-Sunday): Taste of Dubai, Dubai Media City Amphitheatre.

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

16 February (Sunday): The International Defence Conference,The Emirates Palace, Abu Dhabi.

17-21 February (Monday-Friday): International Defence Exhibition (IDEX) in Abu Dhabi National Exhibition Center.

17-21 February (Monday-Friday): Naval Defence Exhibition (NAVDEX) in Abu Dhabi National Exhibition Center.

17-22 February (Monday-Saturday): Gulfood, Dubai World Trade Center.

19 February (Wednesday): Invest UAE seminar, V Hotel Dubai.

19-20 February (Wednesday-Thuraday): The International Conference on Reprographic Rights, Sharjah.

19-20 February (Wednesday-Thuraday): Meetings Arabia & Luxury Travel (MALT) Congress, Abu Dhabi Convention & Exhibition Bureau.

19-20 February (Wednesday-Thuraday): TheIDC Middle East CIO Summit, the Grand Hyatt Dubai.

19-21 February (Wednesday-Friday): International Dialogue of Civilizations & Tolerance Conference, Abu Dhabi Energy Centre.

19-23 February (Wednesday- Sunday): Dubai International Boat Show, Dubai Harbour.

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

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

26-27 February (Wednesday-Thursday): Affiliate World Dubai 2025, Dubai World Trade Center.

28-29 February (Friday-Saturday): Investopia 2024, the St. Regis, Abu Dhabi.

28 February-29 March (Friday-Saturday): Ramadan.

8 March (Saturday): Future Women Leaders Forum 2025, Taj Exotica, The Palm, Dubai

27-29 October (Monday-Wednesday): Future Hospitality Summit, Madinat Jumeirah, Dubai.

17-21 November (Monday-Friday): Dubai Airshow 2025, Al Maktoum International Airport, 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.

MARCH

18-19 March (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

29 March (Saturday): New traffic regulations and minimum driving age to take effect.

31 March-2 April (Monday-Wednesday): Eid Al Fitr, national holiday.

APRIL

1 April (Tuesday): New ADGM employment regulations come into effect.

1 April (Tuesday): New personal status law comes into effect.

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

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

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

7-9 April (Monday-Wednesday): Middle East Energy, Dubai World Trade Center.

7-9 April (Monday-Wednesday): World Local Production Forum’s 3rd edition, Abu Dhabi National Exhibition Center.

12-13 April (Saturday-Sunday): Global Justice, Love & Peace Summit, Dubai Exhibition Centre, Expo City Dubai.

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.

14-26 April (Monday-Saturday): Solana Economic Zone, Dubai.

15-17 April (Tuesday-Thursday): The Abu Dhabi Global Health Week, Adnec center, Abu Dhabi.

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

21-25 April (Monday-Friday): The Dubai AI Week, Museum of the Future and Area 2071, Emirates Towers, Dubai.

22-24 April (Tuesday-Thursday): DOMOTEX Middle East, Dubai World Trade Center, Dubai.

25 April-11 May (Friday-Sunday): Dubai Esports and Games Festival, Dubai World Trade Center.

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

28 April-2 May (Monday-Friday): The 64th Annual Conference of the International Federation of Ait Traffic Controllers’ Associations (IFATCA)

Signposted to happen sometime in April:

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

MAY

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

6-7 May (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

13-16 May (Tuesday-Friday): International Union for Health Promotion and Education Conference, Abu Dhabi.

13-15 May (Tuesday-Thursday): Cabsat Middle East and Satellite Middle East, Dubai World Trade Center.

15 May (Thursday-Sunday): The Economy Middle East Summit, ADGM, Abu Dhabi.

15-18 May (Thursday-Sunday): The GLA Global Logistics Conference, Grand Hyatt Dubai.

16-18 May (Friday-Sunday): GISEC, Dubai World Trade Center.

19-22 May (Monday-Thursday): Make it in the Emirates, Adnec, Abu Dhabi.

20-22 May (Tuesday-Thursday): Seamless Middle East 2025, Dubai World Trade Center.

23-25 May (Friday-Sunday): EuroLeague Final Four, Etihad Arena, Abu Dhabi.

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

30 May (Friday): Arafat Day.

31 May-2 June (Saturday-Monday): Eid Al Adha.

Signposted to happen sometime in May:

Asean and summit, Malaysia.

JUNE

17-18 June (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

24-25 June (Tuesday-Wednesday): Middle East Rail, Dubai World Trade Center.

27 June (Friday): Islamic New Year.

Signposted to happen sometime in 2H 2025:

Closing of XRG’s acquisition of Covestro

JULY

29-30 July (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

SEPTEMBER

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

16-17 September (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

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

OCTOBER

3-16 October (Friday-Thursday): Dubai Home Festival.

7-9 October (Tuesday-Thursday): The 8th International Symposium on the System of Radiological Protection, the Ritz-Carlton Abu Dhabi, Grand Canal.

9-15 October (Thursday-Wednesday): IUCN World Conservation Congress, Abu Dhabi.

17-19 October (Friday-Sunday): The International Real Estate and Investment Show, Abu Dhabi.

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

28-29 October (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

NOVEMBER

18-19 November (Tuesday-Wednesday): Dubai Future Forum, Museum of the Future, Dubai.

DECEMBER

1-3 December (Monday-Wednesday): Eid Al Etihad (UAE National Day).

1-5 December (Monday-Friday): The World Congress of Neurosurgery, Dubai World Trade Center.

9-10 December (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

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.
Universal Postal Congress 2025, Dubai.

Signposted to happen sometime in the fall of 2025:

2025 Games of the Future, Dubai.
ICOM General Conference 2025, Dubai

Signposted to happen sometime in 2026:

11-13 May (Monday-Wednesday): AI Everything Global, Adnec Center.
The UAE to host the Arab Competition Forum
Dubai to host the Arab Actuarial Conference
United Nations Water Conference 2026, UAE
9-11 January (Friday-Sunday): 1 Bn Followers Summit’s fourth edition, UAE

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