ADIA backs Adani Energy in secondary share sale

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WHAT WE’RE TRACKING TODAY

THIS MORNING: An update on Sidara’s takeover bid for Wood Group? + Mubadala taps advisors for sale of Brazilian assets

Good morning, wonderful people. We have another packed issue for you this morning — what summer lull? — filled with M&A and investment updates, and another fresh dose of real estate data. But first – an update on our Olympics run:

Swimmer Yousuf Al Matrooshi narrowly missed the semi-finals after finishing joint-second alongside St Lucia’s Jayhan Odlum-Smith — though he beat his personal record with a 50.39-second finish time.

Up today: Emirati Judoka Aram Grigorian will compete in the round of 32 at 1:06pm.

WEATHER- The mercury is peaking at 43°C today in Dubai, before cooling to an overnight low — if we can call it that — of 36°C. Over in Abu Dhabi, temperatures will hit 41°C, with an overnight low of 35°C.

No, it’s not just you. We are seeing an extreme bout of heat and humidity this year: Dubai’s “feels-like” temperatures crossed 60°C on multiple days this summer, well above the 54°C threshold known to potentially lead to “extreme danger” to health. The extreme heat this year can be attributed to climate change as well as rapid urbanization, according to Bloomberg — which is particularly magnified here in the region due to its dry desert landscape.

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

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

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

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

HAPPENING TODAY-

We might hear from Dubai’s Sidara about its offer to acquire UK engineering firm Wood Group today, which marks the deadline for it to submit a fresh bid or otherwise withdraw its offer. The company was granted due diligence and allowed to engage with Wood in June, after Wood had turned down its three previous bids. The engineering and consulting firm’s latest bid saw it offer to acquire Wood Group at GBP 2.3 per share, valuing the company at GBP 1.59 bn, which it said would be its final offer.

WATCH THIS SPACE-

#1- Adnoc could hear back from Covestro soon: German chemicals company Covestro expects to give an update on Adnoc’s acquisition bid “relatively soon”, Covestro’s Chief Financial Officer Christian Baier told Reuters. “Talks with Adnoc continue in a very constructive manner,” he said.

Remember– The Emirati state-owned oil company raised its takeover bid to EUR 11.7 bn, or EUR 62 per share, in June. Adnoc said this would be its final offer, after increasing its bid three times during the talks, which have been going on for over a year. If the transaction goes through, it will be the biggest acquisition from a Middle Eastern buyer in Europe in 16 years.

Covestro cut earnings forecast for 2024: Covestro’s EBITDA fell 16.9% y-o-y in 2Q 2024 to EUR 320 mn in 2Q 2024, prompting the company to tone down its full-year forecast to EUR 1-1.4 bn from EUR 1-1.6 bn, citing economic headwinds.

#2- Mubadala taps advisors to sell Brazilian port: Sovereign wealth fund Mubadala subsidiary Mubadala Capital and Singapore trading giant Trafigura Group have reportedly hired Goldman Sachs and UBS BB, a JV between Swiss UBS and Brazil’s Banco do Brasil, to advise on the sale of Brazilian iron-ore port terminal operator, Porto Sudeste, Reuters reports, citing people familiar with the matter. The two firms are also reportedly looking to sell Morro do Ipê, the mining project they own in the Brazilian state of Minas Gerais.

The sale will possibly take place within six to nine months, though potential buyers have not been yet contacted, one of the sources revealed. Porto Sudeste disclosed that it is in early talks with financial advisors to explore a sale in a regulatory filing earlier this month.

ICYMI- Bloomberg reported that Mubadala is looking to shed the assets earlier this month, as it looks to to use the sale proceeds to boost investments in Bahia state, including a planned refinery for green diesel and sustainable aviation kerosene. The port had exported below its capacity last year due to competition from Vale SA’s export facilities.

PUBLIC SERVICE ANNOUNCEMENTS-

Twelve new economic activities are now eligible for the Tajer Abu Dhabi License from the Abu Dhabi Business Centre at the Abu Dhabi Department of Economic Development, without requiring a physical location or rent payments to obtain the permit, according to a statement. The added activities include maritime consultancy services, tourism and recreation consultancy, logistics consultancy, network consultancies, textiles and apparel printing, and design and artwork services.

DATA POINTS-

DIFC companies surpass 6k: The Dubai International Financial Centre (DIFC) welcomed 820 new companies in 1H 2024, up 24% y-o-y to 6.2k, Wam reports. DIFC now hosts over 370 wealth and asset management firms, including over 50 hedge funds, with a total of USD 700 bn in assets under management, up 58% y-o-y. The number of funds marketed within or from the center also increased to 10k.

Occupancy levels at DIFC-owned properties remained high at 99.6%, while third-party office space reached 89%. To address the high demand, DIFC plans to add 1.6 mn sqft of A-grade commercial space in the next three years, with the inauguration of DIFC Innovation One adding over 200k sqft of space in 1Q 2024.

THE BIG STORY ABROAD-

For the first time in weeks, there’s more business news occupying front pages in the foreign press than politics, as Microsoft and Samsung kicked off 2Q earning season for Big Tech yesterday, fueling another market sell-off amid continued concerns about the commercial viability of AI.

BUT FIRST- Israel attacked a southern suburb in Beirut yesterday, claiming it killed a senior Hezbollah advisor. Israeli officials said no other attacks are planned for the time being, Bloomberg reports. The attack came in retaliation to a strike on the Golan Heights that killed 12 children and teenagers and for which Israel blamed Hezbollah. Three Lebanese civilians died in the Israeli attack, including two children, according to Reuters.

IN TECH NEWS-

#1- Investors continued to sell Big Tech, with Nvidia down 7% yesterday ahead of the sector’s earnings this week. The tech-heavy Nasdaq ended the day 1.3% down, while S&P 500 fell 0.5%. (FT)

#2- Microsoft’s Azure cloud service saw a slowdown in growth in 4Q 2023-2024, while capital spending hit USD 19 bn, with the tech giant saying the figure will increase in the new fiscal year. Microsoft’s shares were down 4% in extended trading following the results, which fueled already persistent concerns among investors about the excessive capital expenditure in AI and the lack of a fast pay-off.

#3- Samsung saw its bottom line increase six-fold on the back of a rebound in semiconductor prices and as earnings recovered from a low base, according to its earnings release (pdf).

#4- Intel plans to slash thousands of jobs in a cost reduction drive possibly as early as this week, as it continues to face subdued demand for its computer chips amid the AI boom. (Bloomberg)

AND IN OTHER BUSINESS NEWS- Standard Chartered announced plans for a USD 1.5 bn share buyback program — its biggest ever — as it lifted its income outlook on strong growth in Asia. (Reuters)

LATER THIS WEEK- Opec+ is expected to reaffirm its commitment to cutting production when it meets this Thursday, Reuters reports.

AND- US Vice President Kamala Harris is set to announce her running mate as early as next Monday before a multi-state battleground tour later next week. (Reuters)

OLYMPICS-

Today should see the postponed men’s triathlon finally happen — weather permitting (thunderstorms are expected in the evening) — after being delayed from the previous day due to poor water quality levels in the Seine. Also watch out for: Nadal and Alcaraz’s tennis doubles quarterfinal against the US’ Austin Krajicek and Rajeev Ram; 100m swimming freestyle finals for men and women; and artistic gymnastics finals.

Highlights from yesterday: Simone Biles clinched her fifth gold medal in the women’s team event; and Andy Murray and his double’s partner Dan Evans made it to the quarterfinals.

The medal standings now at the Paris Olympics:

Japan (7 gold, 13 overall)
China (6 gold, 14 overall)
Australia (6 gold, 11 overall)
France (5 gold, 18 overall)
South Korea (5 gold, 11 overall)

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

ADIA backs Adani Energy in secondary share shale

The Abu Dhabi Investment Authority and Qatar Investment Authority have invested in Indian conglomerate Adani’s power distribution arm Adani Energy Solutions’ secondary share sale, which is worth up to USD 1 bn, alongside more than 50 other investors, two sources told Reuters. The qualified institutional placement raised USD 700 mn, with a so-called greenshoe option for another USD 300 mn, the sources said.

The details: The floor price for the issue was set at INR 1,027.11, at a discount to Tuesday’s close of INR 1,124.9, according to a company statement cited by Reuters.

Background: The share sale is the first since Adani was forced to scrap a separate USD 2.5 bn share sale last year following a report from US-based Hindenburg Research’s accusing it of stock manipulation and tax fraud. ADIA was reportedly among the bidders for the share sale at the time.

The UAE has ties with Adani: Adani Energy recently partnered with an International Holding Company subsidiary to expand smart metering in India, while another Adani subsidiary agreed to digitize India’s economy through AI and blockchain with another IHC venture.

OTHER ADIA NEWS-

ADIA invested USD 6 mn in Indian pharma company Akums ahead of its IPO, acting as an anchor investor, according to Akums’ bourse filing (pdf). Adia purchased over 736k shares for USD 6 mn, representing a 6.03% stake. Akums raised nearly USD 99 mn from anchor investors, including US asset manager BlackRock and Indian SBI Mutual Fund.

Background:The company allocated earlier this week a total of 1.22 bn shares at INR 679 a piece (USD 8.11) for anchor investors. Public subscription opened yesterday and runs until tomorrow.

ADVISORS- ICICI Securities Limited, Axis Capital Limited, Citigroup Global Market India Private Limited, and Ambit Private Limited are acting as the bookrunners for the share float.

Adia is liking Indian pharma: The sovereign wealth fund was among 36 institutional investors that bought shares in Indian healthcare firm Indegene ahead of its IPO on the Bombay Stock Exchange in May, buying 276k shares for INR 12.5 mn (c. AED 550k). A consortium comprising Adia and Swedish private equity firm EQT also offered USD 1.6 bn to acquire Indian biopharma firm Bharat Serums and Vaccines (BSV Group) this month.

Al Ansari Financial Services to fully acquire Bahrain’s BFC Group

Al Ansari Financial Services to fully acquire Bahrain forex firm: Al Ansari Financial Services signed a sale and purchase agreement to acquire 100% of Bahrain-based foreign exchange and remittance company BFC Group for AED 735 mn (USD 200 mn), according to a press release (pdf). The company is set to complete the transaction in 1Q 2025, pending regulatory approvals.

What the combined entity looks like: Al Ansari will be the largest remittance and exchange provider in the GCC region in terms of branch network post-acquisition. The company will have 410 branches under its belt — a 60% boost from the number of branches it currently operates — across the UAE, Bahrain, Kuwait, and India, with a workforce of around 6k, up 25% from Al Ansari’s current staff.

A boost to Al Ansari’s revenues: The combined entity’s consolidated revenues in FY 2023 amount to some AED 1.4 bn (USD 385 mn) in FY 2023, reflecting a 22% increase over Al Ansari’s prior revenue figures.

OTHER M&A NEWS-

NMDC eyes majority stake in Emdad: The National Marine Dredging Company (NMDC) is looking to acquire a 70% stake in Abu Dhabi-based integrated oil and gas services firm Emdad, according to an ADX disclosure (pdf). NMDC has submitted a binding offer of an undisclosed value to purchase the stake, after completing due diligence.

What’s next? The offer will remain binding until 5 August, and is subject to regulatory approvals.

Rental value growth in Dubai is the highest in the world, according to Savills

Dubai ranked first globally in prime residential rental value growth in 1H 2024, logging a 12.1% increase, compared to a 9% rise in runnerup city Bangkok, and 7.5% in Lisbon, citing global real estate services provider Savills’ latest Prime Residential World Cities Index.

The emirate also ranked fifth in the world for capital value growth, growing 2.9% in the first six months of the year, and outperforming the 0.6% average capital value growth of 30 world cities predicted for 2024 as a whole. Growth indicates “relative confidence in the asset class,” according to the report, with prime gross yields in Dubai crossing 5% as of the end of 1H 2024, placing it among the highest-yielding cities alongside New York and Los Angeles.

Growth came on the back of the emirate’s pro-business government policies and attractive residence visa programs, as well as robust lifestyle credentials, according to a Savills press release picked up by Zawya.

Corporate relocations are also to thank, with “some of the finest brands and developers launching world-class projects in Dubai and the wider UAE to capitalize on the growing demand,” Savills Middle East residential agency head Andrew Cummings said.

Only up from here: “With existing supply running tight, prime rentals are not expected to cool off anytime soon,” Cummings added.

THE BIG PICTURE-

Rentals > sales: The growth of global rental markets outpaced that of sales markets across the 30 world cities surveyed in the index, with prime gross yields moving out by 10 bps in 2023 to 3.1%, and standing at 3.2% today.

Rents will continue to outperform capital values in 2024 and the medium term, according to Savills’ forecast, driven by scarce supply and high interest rates raising caution in the sales markets. “The potential for interest rate cuts in the second half of the year may encourage those would-be buyers to re-enter the sales market, easing price pressures,” Savills’ sellers said.

US court backs DP World’s USD 200 mn payout from Djibouti

US court enforces USD 200 mn ruling against Djibouti in DP World dispute: A US court has backed a decision awarding DP World USD 200 mn from the government of Djibouti over its seizure of the Doraleh Container Terminal from DP World in 2018, CNBC reports. DP World had filed the proceeding in US courts last year.

What does the decision mean? The decision upholds a third partial award in favor of DP World by the London Court of International Arbitration (LCIA), which awarded the firm USD 200 mn for damages incurred between 23 February 2018 to 31 December 2020. This is the ninth decision by an international court or tribunal in favor of DP World in this dispute.

What’s the story? DP World has been embroiled in legal squabbling with Djibouti for five years over this issue. DP World held a 33.3% stake in DCT and had operated the Doraleh terminal since 2006. Djibouti seized control of the DCT after claiming the concession agreement had unfairly favored DP World, and transferred all shares held by the Port of Djibouti in DCT to itself last September.

A long time coming: DP World hit back and doubled down on its commitment to continue its legal wrangling over the operation of Doraleh Container Terminal (DCT) in Djibouti back in March.

DP World says others should take heed: DP World is warning investors to “think twice about the safety of their existing business in Djibouti and the future value of any new investments,” as a spokesperson told CNBC.

Alef Education, Yahsat, Americana, and more post 2Q earnings

ALEF EDUCATION-

Alef Education reported a 34% y-o-y decrease in net income after tax to AED 113.1 mn in 2Q 2024, according to its consolidated financial statements (pdf). Without the impact of corporate tax and excluding income from financial assets carried at fair value, net income was up 4% y-o-y to AED 124.3 mn, on the back of “strong cost discipline coupled with stable revenue performance,” Alef said in a separate earnings release (pdf). The recently listed edtech firm’s revenues from contracts remained relatively flat y-o-y at AED 177.5 mn.

On a six-month basis, Alef’s net income fell 40% y-o-y to AED 226.2 mn in 1H 2024. Without the impact of the corporate tax, net income reached AED 248.5 mn, with margin expansion to 70%, “substantially above industry benchmarks.” The company’s revenues rose 1% y-o-y to AED 354.2 mn during the first six months of the year.

Looking ahead: The company has a “sizeable” pipeline of agreements for the second half of 2024 and is in talks with several governments to expand its offering across its high-growth target markets, including the B2B and private school market, it said in the release. Alef also initiated discussions to extend its contract with the Abu Dhabi Department of Education and Knowledge — which provisions a minimum of 80k students with a fixed fee per student, and offers “significant revenue visibility and reliability over the next seven years” — for another three years.

REMEMBER- Alef debuted on the ADX in June, raising AED 1.89 bn — making it the biggest this year — but seeing a lackluster debut, with shares falling 18% on its first day of trading. The company’s flagship learning platform spans several international markets, including the UAE, where it has already captured a 58% market share, as well as the US, Morocco and Indonesia.

YAHSAT-

Al Yah Satellite Communications Company’s (Yahsat) net income attributable to shareholders rose 11.6% y-o-y to USD 20.4 mn in 2Q 2024 on the back of consistent revenue growth across its operations, according to the company’s financials (pdf). The company’s revenues fell 5.7% y-o-y to USD 98.7 mn.

On a six month basis, Yahsat’s net income saw a 62% y-o-y increase, reaching USD 73.3 mn in 1H 2024, according to a separate earnings release (pdf). Meanwhile, revenues dipped 3% y-o-y to USD 199.7 mn.

Infrastructure and managed solutions drove growth: Yahsat attributed its performance to 1% y-o-y growth in its infrastructure operations, which involves supplying long-term communications capacity to the government, as well as 15% y-o-y growth in managed solutions, which deliver satellite comms to government entities.

Slight revenue hits from mobility and data solutions: Yahsat’s mobility satellite services segment saw a revenue drop due to fewer equipment sales following the Thuraya 3 satellite malfunction. Data Solutions — Yahsat’s smallest segment — also saw a slight revenue drop due to fewer subscribers and equipment sales, as it shifts focus to higher-margin markets.

MULTIPLY GROUP-

Abu Dhabi-based investment firm Multiply Group reported a 49% y-o-y increase in its net income to AED 319 mn in 2Q 2024, excluding fair value changes in investments, according to its earnings release (pdf). The company attributed its performance to the consolidation of new acquisitions. Including unrealized fair value changes on its investments, the group’s net income came in at AED 992 mn during the quarter.

Multiply Group’s revenues surged 60% year-on-year to AED 442 mn during the quarter, driven by growth in its four key sectors — mobility, energy and utilities, media and communications, and beauty and wellness. The media and communications sector accounted for 33% of revenues and 32% of net income, while mobility contributed 20% of revenues. The acquisition of Media 247, BackLite Media, and The Grooming Company also contributed to the group’s quarterly performance, according to the statement.

On a six-month basis, Multiply Group reported a net loss of AED 3.25 bn during 1H, down from a bottom line of AED 400.1 mn in the same period last year, according to its financials (pdf). The group’s revenues rose 53% y-o-y during the first half of the year to reach AED 833.4 mn.

AMERICANA-

Americana Restaurants saw net income drop 40.1% y-o-y to USD 51.1 mn in 2Q 2024, on the back of fewer sales amid geopolitical tensions, according to its financials (pdf) and earnings release (pdf). Revenues also decreased 14.2% to USD 559.3 mn, it said.

REMEMBER- The company has been hit by the impact of a consumer boycott of its brands that came after the start of Israel’s war in Gaza, leading it to slash nearly 100 jobs (most of them in Dubai) in January.

On a 1H basis: Americana’s net income also contracted 44.8% y-o-y to USD 80 mn in 1H 2024, with revenues also down 15.2% to USD 1.1 bn, despite the opening of 81 new stores during the period. Aside from geopolitical effects, unfavorable effects due to the devaluation of the EGP in Egypt and higher depreciation charges also contributed to the decline in performance.

Looking ahead: The company is opting a “watchful approach” to expansions, with plans to add between 175 and 185 new stores this year, the company said. It will also focus on investing in “smart pricing, targeting, promotion and marketing” to boost revenues.

PNC INVESTMENTS-

Sobha Realty parent company PNC Investments (PNCI)’s net income rose 49% y-o-y to AED 1.06 bn in 1H 2024, according to its consolidated financial statements (pdf), on the back of a 22% y-o-y growth in sales to AED 9.03 bn, according to its earnings release (pdf). The Dubai-based residential developer booked AED 3.93 bn in revenues, climbing 22% y-o-y during the first half of the year, as a result of “strong demand, ahead of schedule construction, and resilient pricing.”

Looking ahead: Sobha’s revenue backlog stands at over AED 20 bn, with over 20k units in the pipeline to support medium-term growth, the release said.

ALSO- S&P Global Ratings upgraded PNCI’s rating to BB from BB-, a note from the credit rating agency showed. S&P also revised PNCI’s outlook to stable from positive. Strong EBITDA forecasts as well as robust demand for real estate in Dubai underpinned S&P’s rating.

RAKBANK-

The National Bank of Ras Al Khaimah (RakBank) saw its net income after tax climb 14% y-o-y to AED 515.5 mn in 2Q 2024, according to its financial statements (pdf). The lender logged AED 1.17 bn in operating income during the quarter, increasing 6.6% y-o-y. Net interest income and net income from Islamic financing for the quarter rose 6.5% to AED 882.3 mn.

On a six-month basis, RakBank’s net income after tax climbed 21% y-o-y to AED 1.09 bn in 1H 2024. The bank recorded AED 2.35 bn in operating income, an 8.7% y-o-y increase, while net interest income and income from Islamic finance grew 9% y-o-y, reaching AED 1.76 bn during the first half of 2024.

Behind the growth: RakBank attributed the income increase to its “well-diversified asset growth and sticky current account savings account (CASA) base, augmented by higher foreign exchange and investment income,” the bank said in its earnings release (pdf).

DUBAI REFRESHMENT COMPANY-

Dubai Refreshment’s net income fell 85% y-o-y to AED 40 mn in 2Q 2024, according to its financials (pdf). The company saw its revenues inch up 2.8% y-o-y to AED 216.6 mn in 2Q. During 1H 2024, Dubai Refreshment reported a 77% y-o-y drop in net income, falling to AED 65.7 mn. The company booked AED 384.1 mn in revenues, up 1.3% y-o-y during the first six months of 2024.

National Geographic spotlights RAK’s nature and heritage + UAE’s growing appeal to m’naires gets ink

National Geographic writer Angela Locatelli takes an in-depth look at Ras Al Khaimah’s landscape and wildlife offerings, which she discovered while trekking in the Jebel Jais mountains, home to the world’s longest zipline, and exploring Al Wadi Nature Reserve, in addition to the emirate’s cultural heritage.

CNBC is looking at the UAE’s growing appeal to foreign wealthy individuals, with the country on track to become the world’s top destination for migrating m’naires for the third consecutive year, according to the Henley Private Wealth Migration Report. Some 6.7k m’naries are expected by the end of this year, on the back of attractive zero-income tax, golden visas, and a luxury lifestyle.

Shorooq Partners leads USD 20 mn investment in deeptech AI firm

INVESTMENT-

Shorooq Partners leads landmark AI startup funding round: Abu Dhabi-based venture capital firm Shorooq Partners Shorooq Partners led a USD 20 mn series A funding round for Saudi deep-tech AI company Intelmatix, marking the region’s largest series A round for an AI startup, according to a press release. The round saw participation from Saudi Venture Capital Company, Saudi Technology Ventures (STV), Olayan Financing Company, Sultan Holdings, Zain Ventures, and Rua Growth Fund.

About Intelmatix: Founded by MIT scientists, Intelmatix seeks to bridge the region’s AI gap through its flagship product, the Enterprise Decision Intelligence Platform, which is designed to provide comprehensive AI solutions for organizations without requiring extensive AI expertise.

The story got ink in Bloomberg.

ENERGY-

#1- Adnoc ramped up production at its offshore Satah Al Razboot oil field by 25%, reaching 140k barrels a day, the state-owned oil giant said in a statement. The state-run oil company credited the digitalization of its operations at the field, including the use of remote monitoring and AI, for the increase in production. The Satah Al Razboot field is located 120km northwest of Abu Dhabi.

This move brings Adnoc closer to its goal of producing 5 mn bpd by 2027, which Bloomberg reported earlier that the oil giant might achieve by the end of 2025 or early 2026, ahead of the original 2027 goal.

The AI tech was developed by AIQ, Adnoc’s AI joint venture with G42. AIQ’s DrillRep and OptiDrill solutions enhance drilling efficiency at the field by processing data from rigs and wells to optimize drilling operations.

#2- Ghafa Sustainability + Atsuya ink energy and water agreement: Abu Dhabi-based Ghafa Sustainability and Energy Solutions and Indian sustainability startup Atsuya Technologies signed an MoU to cooperate on sustainable energy solutions in the UAE, according to a statement. The pair will work together on implementing AI and IoT solutions to improve energy efficiency and sustainability. The agreement was signed on the sidelines of the Investopia Global talks in India’s Chennai.

#3- Dubai wraps up pilot phase for a virtual power plant: The Dubai Electricity and Water Authority has wrapped up its pilot project for a virtual power plant (VPP), the first in the region, a statement from the Dubai Media Office showed. The project — which aims to improve the stability of power distribution and accelerate sustainable energy goals — has integrated multiple energy sources, including solar inverters, battery energy storage systems, and EV chargers.

Uh, Enterprise, what’s VPP? A VPP is a network that ties up small-scale, distributed energy sources — such as rooftop solar panels and EV chargers — to supply the power grid, offering more flexibility and resilience in power distribution.

#4- UAE launches nuclear safety system at nuclear facilities: The Federal Authority for Nuclear Regulation has launched the Intelligent Operational Nuclear Safety (IONS) system in partnership with the Mohammed Bin Rashid Space Centre to enhance safety and resilience against climate change at the Barakah Nuclear Power Plant, Wam reported. IONS uses AI to monitor climate indicators — sea levels, air quality, earthquakes, and others — to estimate and predict their severity and impact on nuclear facilities.

HEALTHCARE-

#1- Cleveland Clinic Abu Dhabi has become the UAE’s largest center for AI-assisted colonoscopy, running six AI-powered units, which have screened over 2k patients in the year to date, according to a statement from the Abu Dhabi Media Office. The use of AI technology allows a real-time analysis of data during colonoscopies, which leads to a more accurate screening and faster results, the statement read.

#2- Emirates Health Services launched its virtual healthcare platform, Digital Care Center, providing video consultations for patients across multiple medical specialties, Wam reports. The center features a unified digital record connected to all the organization’s affiliated clinics and primary care facilities to ensure efficiency and continuity in providing medical care for citizens.

SUSTAINABILITY-

#1- GCFC + Irena partner to scale up global climate finance: Abu Dhabi’s Global Climate Finance Centre (GCFC) struck up a strategic partnership with the International Renewable Energy Agency (Irena) in a bid to advance climate finance and renewable energy initiatives, according to a press release. The collaboration will focus on capacity building and supporting climate initiatives by co-hosting events to aid climate firms in finding investors. The two institutions will also jointly conduct research on de-risking mechanisms and green industrialization.

#2- Arms group to supply UAE with PH2’s hydrogen fuel cell trucks: Australian hydrogen fuel cell vehicle company Pure Hydrogen (PH2) signed an MoU with family-owned conglomerate Arms Group to become the distributor for its hydrogen fuel cell and battery electric garbage and box trucks in the UAE and surrounding countries, according to a press release (pdf). The partnership will see PH2 start the sale of its hydrogen fuel cell trucks — named Taurus Prime Mover — and battery electric EVs starting from 2025 after Arms Group completed due diligence on the vehicles and the signing of definitive agreements.

TRADE-

UAE + Pakistan business bodies talk cooperation: The heads of the Federation of Chambers of Commerce and Industry (FCCI) and the Pakistan Business Professional Council (PBPC) met in Abu Dhabi to discuss strengthening cooperation between the Emirati and Pakistani private sectors, Wam reports. The meeting between FCCI secretary general Humaid Mohamed bin Salem and PBPC president Syed Qaiser Anis focused on stimulating bilateral trade and investment growth.

BANKING-

Adib Securities unveils Islamic US market trading platform: Abu Dhabi Islamic Bank’s (Adib) brokerage Adib Securities now allows investors to trade in securities on the New York Stock Exchange and Nasdaq with Sharia-compliant investment options through its upgraded trading platform Adibs Global, according to a press release.

CONSTRUCTION-

Dubai tests smart inspection vehicles for railroad right-of-way safety: Dubai’s Roads and Transport Authority has started testing new smart vehicles designed to monitor railroad right-of-way infrastructure for violations, according to a statement from the Dubai Media Office. The vehicles will be deployed at the Dubai Metro and Tram networks.

It’s a big day for capital markets with two interest rate decisions and a ton of earnings reports looming

It’s a big day for capital markets as investors await interest rate decisions from both the US Federal Reserve and the Bank of Japan. The expectation is that Japan could raise rates — and that the Fed will signal it will start cutting this fall, likely in September. The Bank of England will follow suit yesterday

Also set to drive sentiment today: Earnings reports from HSBC, Arm Holdings, and Qualcomm, among others, as well as China’s latest purchasing managers’ index and a barrel of macro data from Hong Kong to Australia.

What everyone wants to know: Will Meta’s 2Q results today spook investors as much as Microsoft’s did yesterday? The Redmond-headquartered company’s disappointing Azure cloud sales spooked investors who had already given the thumbs-down to Tesla and Alphabet last week as skepticism builds about the commercial viability of AI.

A sliver of light? Samsung (a net beneficiary of spending by companies and Big Tech on AI) reported a sharp rise in net income just before we hit “send” on this morning’s issue. The Korean giant said surging semiconductor sales drove its results for the quarter.

And then… Apple and Amazon will announce their results tomorrow.

AND IN OUR REGION- A USD 820 mn tranche from Egypt’s IMF loan should arrive in the “coming days,” the country’s Finance Minister, Ahmed Kouchouk, said in a statement released yesterday after the IMF gave the green light to the third review of Egypt’s USD 8 bn loan program. Kouchouk described the decision as a “vote of confidence” in the government’s economic policies and a “message of reassurance.”

MARKETS THIS MORNING-

Asian markets mostly in the green this morning as investors wait for macro data and an interest rate decision in Japan — and prepare for a long day of earnings as the clock marches on. Australia’s ASX 200, Korea’s Kospi and both the Hang Seng and the Shanghai Composite are in the green. Only the Nikkei is (ever so slightly) in the red as we prepare to hit “send” on this morning’s issue.

Both Wall Street and European equity futures were mixed in overnight trading as investors largely took a wait-and-see approach.

ADX	9,396	0.0% (YTD: -1.9%)
DFM	4,284	-0.6% (YTD: +5.5%)
Nasdaq Dubai UAE20	3,773	+0.1% (YTD: -1.8%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.1% o/n	4.9% 1 yr
TASI	12,065	-0.5% (YTD: +0.8%)
EGX30	29,039	+0.7% (YTD: +16.7%)
S&P 500	5,436	-0.5% (YTD: +14.0%)
FTSE 100	8,274	-0.2% (YTD: +7.0%)
Euro Stoxx 50	4,841	+0.5% (YTD: +7.1%)
Brent crude	USD 78.63	-1.4%
Natural gas (Nymex)	USD 2.12	-0.2%
Gold	USD 2,455	+0.1%
BTC	USD 66,192	-1.9% (YTD: +56.6%)

THE CLOSING BELL-

The DFM fell 0.6% yesterday on turnover of AED 672.3 mn. The index is up 5.5% YTD.

In the green: Emirates Investment Bank (+15.0%), National International Holding Company (+14.9%) and International Financial Advisors (+13.2%).

In the red: Mashreqbank (-7.2%), Watania International Holding (-6.0%) and Dubai Islamic Ins. and Reins. (-4.7%).

Over on the ADX, the index stayed flat on turnover of AED 1.6 bn. Meanwhile Nasdaq Dubai closed up 0.1%.

CORPORATE ACTIONS-

NK Trust for Commercial Investments – has offloaded an 11.3% stake, or 400 mn shares, in Abu Dhabi-based investment company Apex Investment, according to an ADX filing (pdf). NK Trust, a company owned by family members of Apex’s board, now holds a 6.5% stake in the firm.

More UAE + Chile cooperation

UAE + Chile eye sectors for cooperation Economy Minister Abdullah bin Touq Al Marri met with his Chilean counterpart Nicolás Grau to discuss bolstering economic ties after the UAE and Chile signed an economic partnership earlier this week, Wam reports. The discussions focused on collaborating in the sectors of new economy, tourism, aviation, entrepreneurship, e-commerce, renewable energy, tech, and agriculture.

Background: The two countries inked an economic partnership on Monday, aimed at boosting bilateral investments and private sector partnerships, as well as trade between the countries The agreement will eliminate tariffs for 99.5% of UAE imports from Chile, paving the way to achieve the countries’ target of doubling non-oil trade to USD 750 mn by 2030, up from USD 306 mn last year.

The next phase of the agreement will see the two countries cooperate in tourism sub-sectors, such as travel and aviation. The discussions also addressed launching programs to support small and medium enterprises in both countries, as well as introducing initiatives to facilitate exporting into foreign markets.

The pact is set to take effect in six months, Foreign Trade Minister Thani bin Ahmed Al Zeyoudi said at a roundtable, Wam reports. He revealed that the agreement — marking the UAE’s 11th under its economic partnerships program — includes a landmark chapter on women’s economic empowerment, as well as a chapter on supply chains.

The UAE and Chile’s FDI agency, Invest Chile, have several projects in the pipeline aimed at boosting trade and investment, Chile’s Economy Minister Nicolás Grau told Wam, highlighting that Emirati investments in the Latin American nation totaled USD 2 bn in 2023. Grau also noted that both countries’ business communities have expressed interest in collaborating across sectors including mining, technology, desalination, food production, and energy.

ALSO- DP World CEO Sultan Ahmed Bin Sulayem discussed with Chilean President Gabriel Boric future cooperation in logistics, tech, and sustainable development, according to a statement. Bin Sulayem stressed DP World’s commitment to “investing in Chile for the long-term and supporting Chile’s economic expansion for mutual benefit.”

AND- Dubai Chambers inked an MoU with the Chilean Exports Promotion Bureau, ProChile, to coordinate joint events and initiatives to enhance data exchange and cooperation between exporting companies from both countries, according to a statement.

MORE DIPLO NEWS-

FM meets Djibouti counterpart: Foreign Affairs Minister Sheikh Abdullah bin Zayed Al Nahyan met with Djibouti’s Foreign Affairs and International Cooperation Minister Mahamoud Ali Youssouf to discuss ramping up bilateral relations and cooperation, focusing on development goals. (Wam )
The Ports, Customs, and Freezone Corporation met with a number of Chinese traders at Dubai’s Chinese wholesale market, Dragon Mart, to discuss attracting more investors to the market and enhancing cooperation to support the traders. (Wam)

CALENDAR

JULY

31 July (Wednesday): Deadline for Sidara to submit another takeover bid to Wood Group.

AUGUST

2 August (Friday): Abu Dhabi Extreme Championship, Mubadala Arena, Abu Dhabi.

3 August (Saturday): UFC Fight Night, Etihad arena, Abu Dhabi.

14 August (Wednesday): UAE to participate in ceasefire talks co-mediated by the US and KSA between the warring factions in Sudan.

20-21 August (Tuesday-Wednesday): The World ESG Summit, Dubai.

21-22 August (Wednesday-Thursday): Rex Fuels Global Expo & Conference 2024- Bitumen, Petrochemicals & Products, Dubai.

21-22 August (Wednesday-Thursday): Dubai Business Forum in Beijing, China.

25 August (Sunday): Deadline to register for the AI Challenge.

Signposted to happen sometime in mid-August:

New regulations on telemarketing calls will go into effect

SEPTEMBER

4-5 September (Wednesday-Thursday): 2024 International Government Communication Forum, Expo Centre Sharjah, Sharjah.

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

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

10-11 September (Tuesday-Wednesday): MENA PPP forum, Jumeirah Emirates Towers, Dubai.

10-11 September (Tuesday-Wednesday): MENA District Cooling Projects & MENA Cool Forum, Grand Hyatt Dubai, Dubai Healthcare City, Dubai.

11-12 September (Wednesday-Thursday): MENA oil and gas digitization conference, Abu Dhabi.

16-18 September (Monday-Wednesday): World Utilities Congress, Abu Dhabi.

23-25 September (Monday-Wednesday): WorldFreezonesOrganization’s Annual International Conference and Exhibition, Dubai.

25-26 September (Wednesday-Thursday): Green Steel Summit, Dubai, UAE.

25-26 September (Wednesday-Thursday): Global Aerospace Summit, Abu Dhabi, UAE.

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

30 September (Monday): Dubai Podfest, World Trade Center, Dubai.

OCTOBER

1-3 October (Tuesday-Thursday): Water, Energy and Environment Technology Exhibition, Dubai.

2-3 October (Wednesday-Thursday): The World Green Economy Summit, World Trade Center Dubai.

7-8 October (Monday-Tuesday): Forex expo, World Trade Center, Dubai.

8-9 October (Tuesday-Wednesday)): Global Trade and Supply Chain Summit, Dubai.

8-10 October (Tuesday-Thursday): The Global Rail Transport Infrastructure Exhibition and Conference(Global Rail), Abu Dhabi.

14-18 October (Monday-Friday): IEEE/RSJ International Conference on Intelligent Robots and Systems, Adnec Centre, Abu Dhabi.

15 October (Tuesday): Deadline for the European Commission to make a decision on its probe into e&’s acquisition of PPF’s Eastern European assets.

21-22 October (Monday-Tuesday): Port Development MEA Forum, Dubai.

21-22 October (Monday-Tuesday): Roads, Bridges, Tunnels MENA Conference, Dubai.

21-22 October (Monday-Tuesday): The Alternative Investment Summit, Dubai.

24-27 October (Thursday-Sunday): International Sports Medicine Conference, Dubai.

26-27 October (Saturday-Sunday): International Conference on Tourism, Transport, and Logistics, Dubai.

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

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

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

NOVEMBER

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

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

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

4-7 November (Wednesday-Saturday): ADIPEC Decarbonisation Accelerator, Abu Dhabi.

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

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

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

11-14 November (Monday-Thursday): Abu Dhabi International Petroleum Exhibition & Conference, Abu Dhabi.

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

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

20-22 November (Wednesday-Friday): Xpanse Abu Dhabi, Adnec Centre, Abu Dhabi

22-23 November (Friday-Saturday): Global Meet on Electronics & Electrical Engineering (GMEEE), Dubai.

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

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

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

Signposted to happen ahead of ADIPEC:

Changemakers Majlis, Abu Dhabi.

DECEMBER

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

5-8 December (Thursday-Sunday): Formula 1 Etihad Airways Abu Dhabi Grand Prix, Yas Marina Circuit.

8-12 December (Sunday-Thursday): International Desalination and Reuse Association World Congress, Adnec Centre Abu Dhabi.

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

9-12 December (Saturday-Thursday): Abu Dhabi Finance Week, Abu Dhabi.

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

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

JANUARY 2025

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

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

FEBRUARY 2025

24-25 February (Monday-Tuesday): 3rd World Passenger Experience Forum, Dubai.

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

APRIL 2025

16-17 April: Global Ports Forum, Dubai.

MAY 2025

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

OCTOBER 2025

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

Signposted to happen sometime before the end of the year:

Spinneys inaugurates three more stores in KSA

Signposted to happen in 2025:

6-11 April (Sunday-Friday): Geo-Spatial Week 2025, Dubai.
3-4 June (Tuesday-Wednesday): Make-A-Wish International’s Global Wish summit, Abu Dhabi.
TBD: The Middle East Electric Vehicle Show, Expo Center Sharjah.
TBD: e& will complete Adnoc’s private 5G network.

Signposted to happen sometime in the fall of 2025:

2025 Games of the Future, Dubai.

Signposted to happen sometime in 2028:

Abu Dhabi to host the 47th Chess Olympiad.

Signposted to happen sometime in 2029:

Dubai to host the International Conference on Computer Vision.

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