ADQ could take over Aramex by March

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WHAT WE’RE TRACKING TODAY

THIS MORNING: PureHealth scraps NMC Healthcare acquisition? + Eshraq to invest in Shuaa’s bond offering

Good morning, wonderful people. It’s another busy day of news here at home, with several M&A updates and a EUR 500 mn issuance from Sharjah. Let’s dive in.

WEATHER- We have another warm, mostly sunny day ahead of us, with temperatures set to hit 25°C in Dubai, with an overnight low of 19°C. Over in Abu Dhabi, the mercury will reach a high of 21°C, with an overnight low of 19°C.

WATCH THIS SPACE-

#1- No sovereign USD-denominated bonds this year: The Finance Ministry is not planning any USD-denominated bond issuances this year, ministry undersecretary Younis Haji AlKhoori told state news agency Wam, adding that it will still continue to monitor global markets for future opportunities. Any international bond offerings would require prior approval from the cabinet, he noted.

More AED bonds: The Finance Ministry is moving forward with plans to issue more AED-denominated bonds with the aim of increasing liquidity in the local debt market and building a robust yield curve for the currency, Al Khoori said.

#2- PureHealth scraps NMC acquisition? Abu Dhabi-based PureHealth has reportedly scrapped plans to acquire hospital operator NMC Healthcare, Bloomberg reports, citing sources in the know. The potential acquisition fell through due to differences over valuation, sources said. The details of the potential acquisition were never made public, but were set to value NMC at at least a few bn USD.

NMC has been looking to sell the business: The hospital network operator orchestrated a strategic turnaround this year after reaching an out-of-court settlement on all of its disputes with Dubai Islamic Bank in March. It also tapped Rothschild & Co to advise on its strategic restructuring plans, including a potential sale of the business. The company was forced into administration by a London Court in 2020 after a Muddy Waters report claimed that it inflated its assets and owed over USD 4 bn in hidden debt.

#3- Eshraq to buy into Shuaa’s bond offering: Eshraq Investments’ board has approved investing in Shuaa Capital’s mandatory convertible bond offering following discussions during a board meeting last week, according to an ADX disclosure (pdf). Post-conversion, Eshraq’s equity position in Shuaa is expected to support the redemption of key assets, the statement reads.

REMEMBER- Investment platform Shuaa Capital plans to issue a total of AED 642.5 mn in mandatory convertible bonds as part of its capital optimization efforts. The firm was set to vote on the issuance of AED 425.5 mn in convertible bonds and their conversion into shares during a general assembly meeting earlier this week, which was later postponed to 17 February, following approval from its board of directors last year.

All part of a restructuring plan: The company underwent restructuring in 2024 after reaching an agreement with bondholders to extend the payment terms for USD 150 mn worth of bonds. The company also appointed a new management team, settled approximately AED 500 mn in margin facilities, and restructured AED 208 mn in outstanding obligations with its senior creditor. Additionally, it secured a USD 300 mn seven-year facility from the National Bank of Fujairah and the Arab Energy Fund in January.

#4- Egyptian-Emirati consortium secures land for Dakhla Oasis solar project: A consortium of state-owned renewables giant Masdar and Egypt’s Hassan Allam Utilities, along with Masdar and Infinity JV Infinity Power, secured a 20 sq km land plot in New Valley Governorate’s Dakhla Oasis for their 900 MW solar power plant and its accompanying battery storage, a source at Hassan Allam Utilities confirmed to EnterpriseAM. The news was first picked up by Al Arabiya.

ICYMI- The Egyptian cabinet in November greenlit two power purchase agreements between the consortium and the Egyptian Electricity Transmission Company (EETC) for two solar projects — a 300 MW facility paired with 60 MWh of battery storage at the giant Benban plant and a second solar project in the Dakhla Oasis with a capacity of 900 MW and 660 MWh of battery storage. It was reported shortly after that the trio would soon launch a tender for a contractor to carry out the projects, which had initially been slated to break ground in December.

The trio’s planned 1.2 GW worth of solar projects in the Dakhla Oasis and Benban will have a total price tag of around USD 1 bn, the source confirmed to EnterpriseAM.

The projects could be up and running this year: The New Valley facility is slated for completion in 2H 2025, and the Benban facility should be completed before the end of the year. We previously heard that the projects would begin feeding Egypt’s national grid by the end of 2H 2026.

#5- Adnoc to supply BPCL with LNG: Andoc is reportedly eyeing an agreement to supply India’s state-owned oil refiner Bharat Petroleum Corp (BPCL) with 2.5 mn tonnes of liquefied natural gas (LNG) over five years, Reuters reports, citing unnamed sources in the know. The supplies are slated to begin entering the country by April.

The details: The agreement — expected to be signed during the India Energy Week, running from today until 14 February — is set to see BPCL receive 40 cargos of LNG, with deliveries starting slow over the first two years and picking up in the following three. Adnoc has declined comment on the partnership, according to Reuters.

ALSO- Adnoc is set to ink a sale purchase agreement with Indian Oil for a 15-year agreement inked last September, the newswire reports.

#6- The UAE is positioned to benefit from the US-China trade war with Chinese companies likely looking to Dubai as a key re-export hub to avoid tariffs, experts told Khaleej Times. Dubai’s world-class infrastructure, freezones, and neutrality make it an attractive base for companies navigating tariff risks, John Donigian, senior director of supply chain strategy at Moody’s, told Khaleej Times.

How UAE businesses can gain an edge: “This shift is likely to push Chinese manufacturers to lower their prices,” said Vice Chairman of UAE-based business conglomerate Danube Group Anis Sajan. “For UAE importers, this presents a major advantage –- they can leverage the situation to squeeze better [agreements] and secure lower costs from suppliers and manufacturers,” he added. Sajan added that Chinese firms might also consider relocating production to the UAE, though labor costs will remain an important factor, Sajan added.

#7- UAE to roll out 500+ EV charging stations by 2025: The UAE plans to install over 500 electric vehicle (EV) charging stations by the end of 2025 to increase the use of clean transportation and cut carbon emissions, Sharif Al Olama, Undersecretary for Energy and Petroleum Affairs at the Energy and Infrastructure Ministry, said on the sidelines of the World Governments Summit, state news agency Wam reports.

The ministry, which holds a 50% stake in UAEV, installed 100+ EV chargers across the country in 2024 and is ramping up efforts to meet rising EV demand. The expansion follows an integrated public-private collaboration model to develop a robust charging network and meet national sustainability goals.

DATA POINTS-

#1- Abu Dhabi saw a 16% y-o-y increase in economic licenses, according to Abu Dhabi Registration and Licensing Authority (ADRA) data picked up by the Abu Dhabi Media Office. Meanwhile, renewed licenses surged 27%, and active licenses in non-financial free zones increased 22%. The emirate processed over 47k Real Beneficiary requests, while freelancer licenses grew 104% to 2.1k, with those issued to Emiratis jumping 371% to 396.

Mobdea licenses, which help Emirati women turn creative passions into businesses, grew 72% to 2.5k. Tajer Abu Dhabi, which enables businesses to operate without a physical premises, rose 20% to over 7k, with 12 new activities, bringing the total to more than 1.2k.

#2- Gross bank assets in the UAE fell 0.1% m-o-m to AED 4.45 tn at the end of November 2024, according to the Central Bank of the UAE’s (CBUAE) latest monetary and banking developments report (pdf). Gross credit declined 0.5% m-o-m to AED 2.163 tn, driven by a 0.8% drop in domestic credit, which offset a 0.9% rise in foreign credit.

The decline in domestic credit was driven by a 1.2% decrease in credit to the government, a 4.2% drop in public sector lending, and a 0.4% fall in credit to non-banking financial institutions, partially offset by a 0.1% increase in private sector lending.

Total bank deposits rose 0.1% m-o-m to AED 2.8 tn, supported by a 0.5% increase in resident deposits, which outweighed a 4.4% decline in non-resident deposits, according to the report.

The CBUAE’s total foreign assets rose AED 9.5 bn m-o-m to approximately AED 825.8 bn at the end of November 2024, according to the bank’s latest data (pdf).

#3- Eight new ADGM entrants added a combined USD 635 bn in assets under management to the ADGM ecosystem in January, the financial center said in a post on X. Last December, 19 companies said they planned to enter the ADGM.

PSA-

UAE’s Nafis program shifts to IBAN-based payments: The Emirati Talent Competitiveness Council introduced a new payment mechanism for the Nafis program, transitioning from Nafis debit cards to direct bank transfers via IBAN, according to a press release.

Beneficiaries have five months to update their IBANs, while new applicants can now enter their bank details during registration to receive financial support via direct deposit.

HAPPENING TODAY-

#1-The International Civil Aviation Organization (ICAO) Global Implementation SupportSymposium is underway and wraps tomorrow 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 kicked off yesterday and runs through tomorrow at 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 kicks off today in Dubai and runs until Thursday, 13 February. Country leaders, international organization heads and business players will meet 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 on Thursday, 13 February to discuss Sharjah Health Authority’s policy, Wam reports.

#2-Dubai Rising: Building Tomorrow’s Global Business Capital will take place on 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.

THE BIG STORY ABROAD-

The international scene is once again rife with potential conflict, after an unexpected announcement from Hamas threatened to reignite conflict in the region and put an end to the precarious ceasefire agreement in Gaza.

Gaza truce is hanging in the balance: Hamas said yesterday it will delay releasing Israeli captives indefinitely, citing Israel opening fire on Palestinians, as well as delays in allowing return to northern Gaza and delivering humanitarian aid. Israel denied any violations, and instructed its military to prepare “for any possible scenario.”

Trump butts in: While mediators and international powers are scrambling to save the situation, US President Trump advised Israel to cancel the agreement and “let hell break loose” if Hamas does not comply by Saturday noon. Trump also threatened to cut off aid to Egypt and Jordan if they refuse to take in forcibly displaced Palestinians. (Bloomberg | CNN | NYTimes | Reuters)

SPEAKING OF TRUMP- The latest trade salvo saw the president impose 25% tariffs on all imports of steel and aluminum, in a move that will impact Mexico and Canada as the US’ top foreign metal suppliers. The new measures are reportedly set to take effect on 4 March. (Bloomberg | CNBC | FT)

IN THE BUSINESS WORLD- Elon Musk and a group of co-investors submitted a whopping USD 97.4 bn bid to fully acquire ChatGPT maker OpenAI. “No thank you,” CEO Sam Altman responded in a post on X. Musk was one of OpenAI’s co-founders, before leaving in 2018. (CNBC | CNN | Reuters)

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MARKET WATCH-

Opec’s Middle Eastern heavyweights are raising oil prices, capitalizing on US sanctions that are squeezing Russian supply and the threat of tighter restrictions on Iran, Bloomberg reports. The price hikes — among the largest in years — come as refining margins in Asia improve and demand for alternative Middle Eastern crude rises. Iraq raised the price of its Basrah Medium and Basrah Heavy crude for Asian buyers to the highest since September 2022 in March. Crude prices from Abu Dhabi and Oman also saw significant increases for March supplies.

The rising prices are creating competition: The Middle East crude spot premium hit a two-year high in January, with main buyers including India and China’s oil refiners. However, this decision has prompted some Asian refiners to turn away from Middle Eastern crude and focus on shipments from the North Sea and Kazak hstan.

Aramex to respond to ADQ’s acquisition bid by next month

DFM-listed logistics giant Aramex will have until Friday, 14 March, to either accept or reject ADQ subsidiary Q Logistics Holding’ offer to acquire 100% of the freight services firm, according to the official bid document (pdf). The transaction is expected to be completed in 3Q 2025, while payment of consideration will be made within three days after completion of all the required steps.

REFRESHER- Through its subsidiary Q Logistics Holding, ADQ offered last month to buy all the Aramex shares that aren’t owned by AD Ports — another one of ADQ’s subsidiaries — which has a 22.69% stake in the freight services firm. This would be through a cash-consideration of AED 3 per share. The strategic acquisition would value Aramex at AED 4.4 bn, according to our calculations.

The pitch: ADQ wants to transform Aramex into a globally competitive company in the freight services industry, but this is expected to be “complex, capital intensive and to take time,” the document reads. This will “consequently limit the perspective of short to medium-term return for shareholders.”

Strong valuation, despite the decline in performance: The offer price of the transaction represents an attractive valuation, reflecting a strong multiple of 9x enterprise value to EBITDA for the twelve months ending September 2024, and a multiple of 29x price-to-earnings ratio for the same period. These multiples indicate that the company is being valued more favorably in terms of its earnings and growth potential, suggesting investors are willing to pay more for each USD of earnings, which is not uncommon in strategic acquisitions.

IN CONTEXT- Aramex's financial results have demonstrated a decline in performance since 2019, according to the offer document, adding that the company also declared that no dividends will be issued for 2023, indicating a lack of returns for its shareholders.

ADVISORS- Rothschild is acting as financial adviser for Q Logistics, while Emirates NBD capital is the lead manager for this project. Clifford Chance was hired to provide counsel on the potential acquisition. Aramex tapped HSBC as its financial advisor for the potential takeover.

Sharjah gov’t issues EUR 500 mn bonds, with order book 3.5x oversubscribed

The Sharjah government has issued a EUR 500 mn, seven-year bond, pricing it at a 4.698% yield after tightening by 30 basis points (bps) from initial price guidance, Wam reports. Strong investor demand led to 3.5x oversubscription, with 71% of orders coming from outside the MENA region, particularly from the UK, Europe, and the US.

REFRESHER- The EUR 500 mn issuance consists of no-grow, fixed-rate Regulation S senior unsecured bonds maturing in February 2032, and is part of Sharjah’s Global Medium Term Note Program. The Sharjah government began stabilization last week, which will continue until 14 March. The bonds will be listed on the London Stock Exchange and Nasdaq Dubai, with proceeds allocated for general budgetary purposes

REMEMBER- Sharjah previously issued two sustainability-linked bonds in 2024: a EUR 500 mn sustainability bond in July attracting EUR 2.2 bn in orders under its Sovereign Sustainable Financing Framework, and a USD 750 mn green bond in March, also receiving strong demand. Both issuances saw pricing tighten significantly.

ADVISORS- The Bank of Sharjah acted as a joint lead manager, marking its first participation in a EUR-denominated issuance, alongside other international and regional lenders.

UAE leads the region in renewables capacity

The UAE has emerged as the regional leader in renewable energy, with an installed capacity of 6.3 GW, surpassing Egypt’s 4.6 GW of installed capacity and Saudi Arabia’s 4.5 GW, according to a report (pdf) by Dii Desert Energy.

Despite having fewer than half of Egypt’s projects, the UAE’s higher installed capacity is driven by large-scale developments like the Mohammed bin Rashid Al Maktoum Solar Park, which is expected to reach 5 GW by 2030. The sixth phase — currently under construction — is set to add 1.8 GW to the grid, up from around 2.8 GW currently. Additional projects, such as Al Ajban and Khazna, will each contribute 1.5 GW to the national grid.

Currently, the UAE has 3.5 GW of renewable energy under construction, including 3.4 GW of solar PV, 200 MW of concentrated solar power (CSP), and 140 MW of onshore wind. The UAE Wind Program has already installed 103 MW across four sites, with further expansion underway.

Beyond solar and wind, the UAE is advancing in green hydrogen, targeting 1.4 mn tonnes per annum (Mtpa) by 2031 under its National Hydrogen Strategy 2050, of which 1 Mtpa will be from green hydrogen and 0.4 Mtpa from blue hydrogen. Two pilot projects are already operational, including Masdar and Emsteel’s green hydrogen pilot for iron extraction.

The country also has the largest number of operational energy storage projects in the region, with a total of four operational projects, two under development and one in the construction phase, the report said. Ewec’s 648 MWh project, which became operational in 2015, was the first in the region. The Noor Energy 1 TESS, part of the fourth phase of the Mohammed Bin Rashid Al Maktoum Solar Park, has a capacity of 5.9k MWh and is the largest thermal energy storage plant in the world.

Looking ahead, the UAE aims to install 19.8 GW of renewables capacity by 2030, according to the report.

Across the wider MENA region, total installed solar PV capacity has reached 22.3 GW, with the total number of renewables projects reaching 714 projects.

Ittihad closes USD 450 mn sustainability-linked revolving credit facility

Ittihad secures USD 450 mn credit facility: Abu Dhabi-based non-oil investment conglomerate Ittihad International Investment secured a USD 450 mn sustainability-linked, senior unsecured revolving credit facility (RCF), according to a press release.

The details: The facility has a five-year tenor — divided into an initial three-year term with two one-year extension options. It also includes an accordion feature, allowing for an increase in the facility size. The facility is divided into two branches. The breakdown:

Tranche A (USD 225 mn): Allocated for general corporate purposes, replacing an existing USD 105 mn RCF that remained undrawn.
Tranche B (USD 225 mn): Replaces Ittihad’s 90-day subsidiary-level working capital facilities. Of this, USD 145 mn will settle outstanding working capital, while USD 80 mn will remain on standby for liquidity needs — making the transaction leverage-neutral.

This flexible facility strengthens Ittihad’s capital base, enhances liquidity, and lowers financing costs, supporting its expansion plans. CFO Zahi Abu Hamze noted that the transaction aids Ittihad’s efforts to improve its credit rating. Last October, the conglomerate received an ESG provisional rating of AAA from MSCI.

ADVISORS- Emirates NBD, Commercial Bank of Dubai, and First Abu Dhabi Bank acted as Mandated Lead Arrangers and Bookrunners and sustainability joint coordinators. Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, and Emirates Islamic Bank acted as joint arrangers.

Privately owned Ittihad operates across four key verticals: consumer goods manufacturing, infrastructure and building materials, business services, and healthcare, according to a previous press release. With investments in the UAE, Saudi Arabia, and Egypt, it contributes 4% of the UAE’s non-oil manufacturing exports.

Dewa, du, Fertiglobe, Aldar and more post 2024 earnings

DUBAI ELECTRICITY AND WATER AUTHORITY-

The Dubai Electricity and Water Authority (Dewa) saw its topline increase 6.13% y-o-y to AED 7.5 bn in 4Q 2024, while its net income dipped 3% to AED 1.8 bn, according to its earnings release (pdf). Last quarter followed the same trend, where revenues increased on the back of high electricity demand, while net income fell. Dewa’s clean power generation also rose 12.83% to 1.57 TWh during the quarter.

On an annual basis, Dewa’s revenues rose 6% y-o-y to a record AED 31 bn in 2024, while net income for the year dipped 8.8% y-o-y to AED 7.2 bn, slightly lower than 2023’s AED 7.9 bn.

More records were made: Dewa also recorded its highest annual clean power generation at 6.62 TWh, its highest peak power demand at 10.76 GW, and its highest annual desalinated water production at 150.48 BIG.

There’s more to come: Dewa has a 1.8 GW solar PV plant and a 180 MIGD reverse osmosis desalination plant in the works. The company also issued an advisory service tender for an Independent Power Producer (IPP) project including a 1.6 GW solar PV plant and a 1 GW Battery Energy Storage System in November and another tender for the design, supply, installation, and commissioning of a 2.5 MW alkaline electrolyzer project in August.

DU-

Emirates Integrated Telecommunications Company (du) saw its bottom line widen 47.5% y-o-y to AED 585 mn in 4Q 2024, according to the company's earnings release (pdf). The telecommunications company reported an 8.8% y-o-y increase in revenue to AED 3.9 bn. Revenue growth was fueled by a favorable market environment, increased market share in both mobile and fixed services, and the continued expansion of its ICT offerings.

On an annual basis, du's net income rose 49.1% y-o-y to AED 2.5 bn. The company's revenues also saw a 7.3% increase to AED 14.6 bn, according to a separate financial statement (pdf).

du’s board of directors recommended the distribution of 34 fils per share as the final dividend for the year, taking annual dividends to 54 fils per share — the maximum dividends allowed by the company’s dividend policy.

ALDAR PROPERTIES-

Real estate firm Aldar Properties reported a 37% y-o-y increase in its net income to AED 1.9 bn in 4Q 2024, according to the company’s earnings release (pdf). Revenue for the quarter climbed 48% y-o-y to AED 6.5 bn.

On an annual basis, Aldar’s net income grew 47.3% y-o-y to AED 6.5 bn in 2024, according to its financials (pdf). This growth was driven by the expansion of its development and investment platforms over the past two years, CEO Talal Al Dhiyebi said. Key investments included the AED 2.3 bn acquisition of a commercial tower in Dubai International Financial Center in December.

The developer’s revenue and rental income rose by 62.4% y-o-y to AED 23 bn last year, fuelled by the “successful execution against the revenue backlog” of Aldar’s development projects. Sales rose 20% y-o-y to a record AED 33.6 bn, supported by “enhanced cross-selling” strategies to meet strong demand for luxury developments in the UAE.

Dividends: Aldar’s board of directors proposed a dividend of 18.5 fils per share, taking dividends to AED 1.5 bn for 2024, pending shareholder approval at the annual general assembly meeting.

FERTIGLOBE-

Fertiglobe’s net income down in 4Q + 2024: Adnoc-owned urea and ammonia producer and exporter Fertiglobe reported a 59% y-o-y dip in adjusted net income to USD 42 mn in 4Q 2024, according to its unaudited earnings release (pdf). Meanwhile, revenues fell 28% y-o-y to USD 466 mn. Fertigobe attributes this drop to a deliberate deferral of 239 kt worth of shipments to early 2025 to take advantage of “tightening urea markets and improved in-season pricing.” This strategy of exploiting higher urea prices is expected to transfer USD 29 mn of net profit to 1Q 2025.

On an annual basis, the company saw a 52% y-o-y decline in net income to USD 173.9 mn in 2024, while revenues for the year decreased 17% y-o-y to USD 2 bn.

The driver: Sales volume dropped 9% y-o-y to 5.6 bn tons in 2024, which the company attributed to “structural measures taken to improve reliability and efficiency levels” and deliberately delayed shipments.

Looking ahead: Fertiglobe expects tight supply in spring and rising energy prices will sustain firm fundamentals for the nitrogen market in 2025. Production shortages in main exporting countries—and remarkably low Chinese exports—strengthen the short-term outlook for nitrogen fertilizers. Robust demand for new low-carbon ammonia applications—such as maritime fuels and power production—will buoy long-term outlook.

What’s next? Fertiglobe is developing a new UAE facility with a target of producing 1 mn tons of low-carbon ammonia, while its UAE facility currently under development will start operations in 2027 yielding a final product 50% less carbon intensity than conventional ammonia. The company also expects that Exxon Mobil low-carbon hydrogen and ammonia project will reach financial close in 2025, with Adnoc slated to transfer its 35% stake in the project over to Fertiglobe when operations begin.

AL FUJAIRAH NATIONAL INS.-

AlFujairah National Ins. Company returned to profitability in 2024, reporting a net profit of 25 mn in 2024, after incurring a net loss of AED 8 mn in 2023, according to its preliminary financials (pdf). The company’s ins. revenues rose 49.1% y-o-y to AED 420.6 mn during the same period.

MAIR GROUP-

Mair Group saw its net income increase 545% y-o-y to AED 166.9 mn in 2024, according to the company's earnings release (pdf). The retail operator saw its revenues rise 48.6% y-o-y to AED 2 bn. This was driven by higher retail sales and real estate leasing revenues.

Could ManCity’s court troubles throw a wrench in UK-UAE ties? + Talabat is getting attention in the foreign press

The UAE has reportedly brought up the issue of Manchester City Football Club’s financial fair-play breaches case with the UK government, Bloomberg reports, citing sources familiar with the matter. The club — which is majority owned by Abu Dhabi United Group — is facing 115 charges, including providing wrong financial information and receiving inflated sponsorship revenues. The verdict is expected sometime in the coming months, sources said.

While British authorities are reluctant to interfere in the Premier League’s affairs, the UK is in a tough spot as it looks to keep relations with the UAE strong while it vies for more funding for strategic projects. This is especially sensitive after Abu Dhabi-backed RedBird IMI withdrew its bid to acquire The Telegraph following months of opposition from the UK government. The UAE believes that the lack of a consistent policy due to changes in leadership, the business information service cites a UAE official as saying.

“The fact that the owner and chairman of Manchester City are such senior figures in Abu Dhabi means that any adverse finding of fact by the independent commission would inevitably be taken very seriously by all concerned,” said Kristian Ulrichsen, a research fellow at the Baker Institute in Houston.

Delivery Hero’s MENA unit, Talabat, is getting attention in the foreign press after its USD 2 bn IPO, with Bloomberg saying the unit is driving the company’s growth, especially as it faces rising competition and regulatory hurdles in Asia. The unit generated some USD 5.3 bn in sales for the company in 9M 2024, while proceeds from the will help pay down some of Delivery Hero’s USD 3.8 bn in convertible bonds, CEO Niklas Östberg said. However, competition is heating up as China’s Meituan expands in the region — its app, Keeta, recently hit 1 mn weekly users, matching Talabat.

Lunate unveils US-denominated T-bill exchange-traded fund

CAPITAL MARKETS-

Lunate launches US T-bill ETF: Abu Dhabi-based alternative investment firm Lunate is launching an exchange-traded fund — Chimera iBoxx US Treasury Bill ETF — tracking outstanding T-bills, it said in a press release. The ETF is set to be listed on the ADX on 20 February, and will give investors access to USD-denominated Treasury bills and quarterly dividends. Investors can subscribe through their brokerage accounts to the fund, which Lunate’s Sherif Salem says reflects “one of the world’s most secure asset classes.”

The details: The ETF tracks outstanding T-bills, with just over half (52%) having a tenor of less than three months, 41% maturing in three to six months, and the remainder between six and twelve months, Lunate said in an emailed response to questions. Investments start from AED 10, offering portfolio diversification for both retail and institutional investors, Lunate said.

ICYMI- Lunate launched ETFs for India, Japan, the UAE, Germany and USD-denominated sukuk instruments across global markets last year, while 2023 saw it set up an ETF that tracks Hong Kong-listed Chinese equities. It also has ETFs tracking stocks in Saudi Arabia, Kuwait, Turkey, and Pakistan. Last week, it unveiled an end-of-service gratuity investment fund for private sector employees.

AVIATION-

GE Aerospace invests USD 10 mn in Dubai and Doha MRO facilities: US-based aircraft engine supplier GE Aerospace is investing USD 10 mn in its two maintenance, repair, and overhaul (MRO) facilities in Dubai and Doha, the company said in a press release (pdf). The investment — spanning 2024 and 2025 — will fund new tooling, infrastructure upgrades, and enhanced training programs, while also increasing headcount by 30%. The move will enable faster servicing of CFM LEAP engines and prepare facilities for the arrival of the GE9X, which will power the Boeing 777X, the company added. This comes as part of a wider USD 1 bn global spending plan aimed at boosting the company’s MRO capabilities.

REFRESHER- Emirates partnered with GE Aerospace to support the airline’s Boeing 777 electrical load management system last October. This 10-year “multi-[mn-USD]” agreement includes providing repairs, stock holding, inventory management, engineering control, technical documentation, obsolescence management, and reliability trend analysis.

Why it matters: More than 20 airlines in the region operate over 750 LEAP-1A and LEAP-1B engines, and the Middle East is the largest market for GE9X engine orders.

TECH-

e& UAE partners with Aleria to launch AI solutions for SMEs: e& has integrated sovereign AI-focused firm Aleria’s AI platform into its offerings to help SMEs optimize operations, decision-making, and costs, according to a press release. The integration focuses on sectors such as healthcare, hospitality, and retail. The new integration provides AI tools for workforce optimization, predictive analysis, and HR operations.

FINANCE-

#1- Professional services firm Grant Thornton UAE opened a new office in Sharjah’s City Gate Tower, according to a press release which identified the northern emirates as a region “driving economic diversification and growth across sectors such as tourism, logistics, and manufacturing.” It also has offices in Abu Dhabi and Dubai.

#2- Aument Capital gets in-principle approval from FSRA: Singapore-based investment services multi-family office Aument Capital received in-principal approval for a Category 4 license from Abu Dhabi Global Market’s (ADGM) Financial Services Regulatory Authority (FSRA), the company said in a press release. The approval enables the firm to offer financial solutions to high-net-worth individuals and entrepreneurial families in the UAE and the MENA region. Aument Capital will now focus on meeting regulatory requirements to secure a full Financial Services Permission license, the statement said.

INVESTMENT-

Finstreet and OneIM partner to explore credit investment products: Finstreet, part of IHC Group’s Sirius International Holding, signed a MoU with alternative investment management firm One Investment Management (OneIM) to explore launching a fund instrument in 1H 2025, according to a press release. They will also evaluate frameworks for creating credit instruments aligned with ADGM guidelines.

MANUFACTURING-

Hansa Green Technology expands production in Hamriyah: UAE-based LED light manufacturer Hansa Green Technology is ramping up production at its Hamriyah Freezone facility, increasing its capacity to over 1 mn LED lighting units annually, the company said in a press release. The move is in response to rising demand across the GCC. The company also plans to expand into Saudi Arabia, with a new manufacturing facility planned for Riyadh in 2025.

Trump’s steel, aluminum tariffs plan sees non-US metal stocks fall and US steel stocks rise

Trump’s latest tariffs on steel and aluminum are roiling global metals markets: US President Donald Trump’s Sunday announcement that he would impose 25% tariffs on steel and aluminum imports fueled a rally in US steel stocks yet spurred their Asian and European counterparts into the red as markets took measure of how the new tariffs will impact inflation, global growth, and trade flow.

Which countries will be most impacted? The tariffs will apply to all steel and aluminum producers without exception — a shift from Trump’s first term, which saw him eventually grant Mexico and Canada exemptions from his 25% tariff on steel and 10% tariff on aluminum. Sunday’s decision will particularly impact key US metal suppliers in Canada, Mexico, Brazil, Japan, the EU, South Korea, Vietnam, and Taiwan, with more tariffs expected to follow as trade partners impose retaliatory tariffs.

Metal stocks rally in the US, fall elsewhere: US steel manufacturers saw their shares get a significant bump during Monday trading as much of the rest of the world’s steel manufacturers saw their share prices slip. The US’ largest steelmaker Nucor closed yesterday up 5.6%, while Cleveland-Cliffs saw gains of 18%, and Steel Dynamics (5%), Century Aluminum (10%), and US Steel (5%) all closed in the green yesterday.

Meanwhile, European and Asian steelmakers without operations in the US saw their shares slip up to 2.5% on Monday, with most steel and aluminum producers trending flat or registering losses. The only exceptions to the trend were non-US steelmakers with significant operations in the US, with Australia’s steelmaker BlueScope logging a two-month high as investors bet on hopes that the company’s US operations would benefit from the tariffs.

Expect more steel manufacturers to set up shop in the US: Steel producers are reportedly making plans to bring their supply chains to the US to reduce costs ahead of the tariffs, with the world’s largest steelmaker ArcelorMittal and South Korea’s Hyundai Steel among the companies getting ready to establish plants stateside.

That target doesn’t seem to be China this time: Despite China’s position as the world’s largest steel producer and exporter, the country has largely been shut out of the US market since Trump imposed 25% tariffs on imported steel in 2018 — leaving it with little to lose from this newest round of tariffs. However, Beijing is currently facing 10% US tariffs on Chinese imports, with markets watching closely for signs of escalation or a potential agreement.

The tariffs aren’t necessarily good news for US manufacturers, particularly those in industries reliant on imported steel and aluminum who will now face higher prices for the 25% of the country’s steel imports. “US manufacturers will have to wear higher prices as a result of these 25% tariffs,” Australian and New Zealand Bank’s Commodities Strategist Daniel Hynes told Reuters.

Trump’s latest move is rekindling concerns over whether the unfolding trade war will push inflation higher or drag down global growth. European Central Bank Vice President Luis de Guindos noted that tariffs constitute a “supply shock” that will hit global economic growth hard. “The impact on inflation is much less clear,” de Guindos said. “If you have a fall in economic activity, then immediately that tempers the evolution of inflationary tensions.”

Analysts are penciling in continued market uncertainty for the foreseeable future as the cumulative effect of Trump’s tariffs gradually becomes clear. “Trade War 2.0 is different in scope and implementation from Trade War 1.0 in 2018 as it involves more countries ... [and] includes all US major trading partners that have significant trade surpluses with the US,” forex and crypto trading firm Oanda’s Kelvin Wong told Reuters. “All in all, [it] may upend global trade flows that in turn dampen global economic growth prospects, which may lead to a stagflation environment” not seen since the global recession of 2009.

MARKETS THIS MORNING-

Asian markets are mixed in early trading this morning — the Shanghai Composite is down 0.2%, the Hang Seng is up 0.3%, and the Kospi is looking at gains of 0.5%.

ADX	9,631	+0.5% (YTD: +2.3%)
DFM	5,261	+0.4% (YTD: +2.0%)
Nasdaq Dubai UAE20	4,420	+1.0% (YTD: +6.1%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.3% o/n	4.3% 1 yr
TASI	12,472	0.0% (YTD: +3.6%)
EGX30	29,905	-0.4% (YTD: +0.6%)
S&P 500	6,066	+0.7% (YTD: +3.1%)
FTSE 100	8,768	+0.8% (YTD: +7.3%)
Euro Stoxx 50	5,358	+0.6% (YTD: +9.4%)
Brent crude	USD 76.09	+1.9%
Natural gas (Nymex)	USD 3.44	+4.1%
Gold	USD 2,934	+1.6%
BTC	USD 97,331	+2.2% (YTD: +4.1%)

THE CLOSING BELL-

The DFM rose 0.4% yesterday on turnover of AED 679.5 mn. The index is up 2.0% YTD.

In the green: Mashreqbank (+5.8%), Dubai Financial Market (+2.9%) and Salik Company (+2.2%).

In the red: Dubai Refreshment Company (-9.8%), National International Holding Company (-6.4%) and Orascom Construction (-5.4%).

Over on the ADX, the index is up 0.5% on turnover of AED 1.4 bn. Meanwhile Nasdaq Dubai closed up 1.0%.

CALENDAR

FEBRUARY

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

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

10-11 February (Monday-Tuesday) MRO Middle East and Aircraft Interiors Middle East, Dubai World Trade Center.

10-11 February (Monday-Tuesday): BreakBulk Middle East, the Dubai World Trade Center.

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.

19-20 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.

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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