ADQ raises USD 2 bn in second bond issuance this year

1

WHAT WE’RE TRACKING TODAY

THIS MORNING: Union Properties plans AED 6 bn in investments + Pakistan secures fresh funding from the UAE?

Good morning, wonderful people, and a very happy FRIDAY to us all. It’s been one of the busiest weeks of news in months, with ADQ tapping debt markets for the second time this year, tons of M&A updates and real estate investments, and a whole bunch of AI news. In today’s issue, we have the latest on ADQ’s USD 2 bn bond issuance, which was 4.1x oversubscribed, plus a host of news on the energy, crypto, and hospitality fronts.

BUT FIRST, A FEW CAPITAL MARKETS UPDATES-

#1- Lunate’s German ETF goes live on ADX: Lunate Capital listed its Chimera S&P Germany UCITS ETF on the ADX yesterday, Wam reports. Launched earlier this month, the ETF tracks the S&P Germany BMI Liquid 35/20 Capped Index, featuring the top 30 listed German companies like Siemens, Allianz, Bayer, and Mercedes-Benz.

The listing brings the total number of ETFs listed on UAE stock markets to 17 ETFs and marks ADX’s 15th, “[opening] a gateway for investors to access one of Europe’s most dynamic economies, with exposure to sectors like automotive, healthcare, and technology,” ADX group CEO Abdulla Alnuaimi said.

#2- ALSO HAPPENING YESTERDAY- The DFM hit a 10-year high, with the general index rising above the 4500-point mark for the first time since 2014, Mubasher reports. The index closed up 0.84%.

WEATHER- It’s another foggy morning in Dubai and Abu Dhabi, the National Center of Meteorology says, so drive slow and stay safe, folks. The mercury hits 38°C in Dubai, with an overnight low of 32°C. Over in Abu Dhabi, the highest it will get will be 33°C — although it feels like 44°C, according to our favorite weather app — before cooling to 30°C overnight,

WATCH THIS SPACE-

#1- Dubai-based real estate developer Union properties will invest over AED 6 bn in three Motor City projects over the next 18 months, CEO Amer Khansaheb told Al Khaleej. The first project, Takaya, is a AED 2 bn development featuring three towers, along with 39 townhouses, five villas, and 55k sqft of retail space. The second project, also valued at AED 2 bn, includes four towers connected by a podium and 3% retail space. The third AED 2 bn project is currently in the design and planning phase.

The company wants to capitalize on land funding: Union Properties sold AED 1 bn worth of land over the past 18 months to improve solvency, repay debts, and support ongoing projects. The developer plans to retain 10 mn sqft of its 16 mn sqft land bank, with a developmental investment value of AED 18 bn. The sales aim to reduce debt from AED 750 mn to AED 400 mn by the end of FY 2024, according to Khansaheb.

ICYMI- The Motor City developer settled debt it had accumulated during the 2009 property market correction in February with Dubailand and Emirates NBD, securing a no-objection certificate from Dubailand to repurpose Motor City land for new projects and reaching a debt settlement of AED 850 mn with Emirates NBD.

#2- A new DIFC hosting platform will allow hedge funds to set up shop faster: London-based Capricorn Fund Managers launched a regulatory hosting platform that will enable hedge funds and investment firms to operate in Dubai under its own Dubai International Financial Center (DIFC) license, according to a statement.

#3- DP World is reportedly in talks with the Mexican government to establish an industrial complex that would see it handle cargo heading to the US from southern states, chairman and chief executive Sultan Ahmed bin Sulayem told the Wall Street Journal. DP is seeking a Mexican port with enough land to accommodate a huge industrial park in a bid to mirror the success of Jebel Ali Freezone. “We would love to have a combination of both port and industry … It really provides a lot of cargo for the port and makes it so easy for people producing to ship it immediately,” Sulayem said.

Not giving up on US ambitions: The move would further DP’s ambitions to tap into the US trade market, while building on existing networks the company has established to the north of the US in Canada with its five terminals on the East and West coasts. The company divested its assets in five US East Coast terminals back in 2006 due to heightened security fears regarding critical infrastructure ownership following the September 11 terrorist attacks.

#4- Pakistan has secured significant financing commitments from the UAE, China, and Saudi Arabia as part of a new International Monetary Fund (IMF) program, Reuters reports, citing IMF Pakistan Mission Chief Nathan Porter. These assurances go beyond a USD 12 bn debt rollover owed to these countries by Pakistan. While details of the UAE's additional contribution weren't disclosed, the new funds are part of a broader effort to stabilize Pakistan's economy.

REMEMBER- Pakistan o btained assurances from the UAE, Saudi Arabia, and China to roll over USD 12 bn in debt for a year in August. The government has already agreed to roll over two USD 1 bn deposits in January 2023 and January of this year, after originally having granted Pakistan the loan in 2019 under a USD 3 bn financial assistance package deposited with the State Bank of Pakistan.

#5- Abu Dhabi-backed chipmaker aims to raise up to USD 1 bn in IPO: Abu Dhabi-backed Cerebras Systems, an AI-focused chipmaking startup, is looking to raise between USD 750 mn to USD 1 bn from its IPO in New York, potentially valuing the company at USD 7-8 bn, Bloomberg reports, citing people with knowledge of the matter. Cerebras plans to file for the IPO with the US Securities and Exchange Commission as soon as today, with an investor roadshow following in the coming weeks.

ICYMI- We knew this was coming: Cerebras revealed last month plans to IPO in the US as early as October. The company tapped Barclays to join advisers on offering, and reportedly appointed Citigroup as the lead bank in April.

Background: In 2021, the Silicon Valley startup secured USD 250 mn in a series F funding round that saw the participation of Abu Dhabi Growth Fund and G42, valuing Cerebras at USD 4 bn.

#5- Digital Dubai is launching a “Dubai Data and Artificial Intelligence Platform” to centralize official data and statistics in partnership with Digital Dewa subsidiary Moro Hub, according to a Dubai Media Office statement. Work on the platform is expected to commence by the end of the month.

PUBLIC SERVICE ANNOUNCEMENT-

UAE airlines extend their suspension on Beirut flights as violence escalates between Israel and Hezbollah, resulting in over 620 deaths in Lebanon since Monday. Etihad Airways, flydubai, and Air Arabia have indefinitely suspended their services to Beirut, Dubaieye reports

Emirates has also extended its pause until at least 1 October, according to a travel update.

DATA POINT-

The Central Bank of the UAE is out with its own data(pdf) confirming growth in the UAE’s residential markets in 1H 2024.

Abu Dhabi: In Abu Dhabi, apartment sales surged 39% y-o-y, although villa sales faced a significant drop of 34.8%, resulting in a 2.3% overall increase in residential transactions for the emirate. The apartment sales index climbed 6.2% y-o-y in 2Q, outperforming the 3.9% y-o-y rise seen in the villa segment. On the rental front, Abu Dhabi's apartment rent index grew 6.6% y-o-y, while villa rents increased by 2.5% in the same period.

Over in Dubai: The emirate recorded a 34.8% increase in residential sales transactions, largely fueled by a 40.3% y-o-y rise in apartment sales. The apartment rent index in Dubai saw a 10.1% increase y-o-y in 2Q 2024, while villa rents rose by 9.7% in the same quarter.

HAPPENING TODAY-

#1- The 2024 Asia Pacific Group on Money Laundering (APG) annual meeting kicked off on Sunday and will run until today in Abu Dhabi, marking the first time the forum is held in the Middle East, state news agency Wam reports.

#2- Foreign Affairs Minister Sheikh Abdullah bin Zayed Al Nahyan, is heading the UAE delegation at the UN General Assembly, which will wrap up on 30 September, Wam reports.

The UAE is among several countries invited to talks planned today to discuss a six-point plan proposed by Brazil and China for dialogue between Russia and Ukraine, Reuters reports. The proposal has already been rejected by Ukrainian President Volodymyr Zelenskiy.

Also expected to attend the talks: Colombia, Egypt, Indonesia, Mexico, Saudi Arabia, and South Africa.

#3-The Dubai Crown Prince is off to Uzbekistan: Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum departed for an official visit to Uzbekistan yesterday, state news agency Wam reports. He will meet with President Shavkat Mirziyoyev and senior officials to discuss enhancing cooperation and expanding bilateral ties.

MARKET WATCH-

Opec+ on track with December oil hike: Opec+ will proceed with a planned oil production increase in December, but first needs to reduce output to address overproduction by some members, Reuters reports, citing unnamed sources. The group will raise output by 180k barrels a day, with Iraq and Kazakhstan pledging cuts to compensate for exceeding quotas earlier. This move is not aimed at regaining market share but involves phasing out voluntary cuts.

REMEMBER- The oil cartel had initially planned to start phasing out production cuts in October, but later scrapped the plans as oil prices continued to fall. The UAE is set to raise production in 2025, after Opec+ granted it a higher production quota of 3.5 mn barrels per day in 2025, up from the current 2.9 mn.

THE BIG STORY ABROAD-

Israel’s ongoing attack on Lebanon is still dominating front pages this morning, as Israeli Prime Minister Benjamin Netanyahu vowed to continue with attacks with “all [their] strength,” despite increased pressure from foreign and Arab leaders for a ceasefire.

The US and France have been leading calls for a ceasefire, with attempts to secure an end to fighting between Israel and Hezbollah for 21 days. Rejecting those calls, Israel expanded its campaign yesterday to the Syrian border, killing a total of 92 people across the country, according to a Financial Times tally. Netanyahu is set to address the UN General Assembly later today.

Pressure is also increasing on the US to interfere and put an end to the fighting, with diplomatic advisor to the UAE president Anwar Gargash saying they should not “shy away” from exercising their influence, Bloomberg reports.

IN BUSINESS NEWS- OpenAI is still getting plenty of play in the foreign press, this time as it looks to give CEO Sam Altman a stake in the company, amid an exodus of high-level executives.This is part of a wider plan for the AI leader to restructure its core business into a for-profit corporation as it seeks to remove the cap on investor returns, and become more attractive to investors, Reuters reports.

REMEMBER-State-backed AI investment firm MGX is in talks to participate in OpenAI’s multi-bn USD fundraising round, which could see it raise up to USD 6.5 bn and secure a valuation of around USD 150 bn. This is one of many moves it’s taking to cement its place as a major AI investor — after backing a new USD 30 bn AI infrastructure fund launched by BlackRock and Global Infrastructure Partners earlier this month.

***

You’re reading EnterpriseAM UAE, your essential daily roundup of business, economics, and must-read news about the UAE, delivered straight to your inbox. We’re out Monday through Friday by 7am UAE time.

EnterpriseAM UAE is available without charge thanks to the generous support of our friends at Mashreq.

Were you forwarded this email? Tap or click here to get your own copy of EnterpriseAM UAE.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on UAE@enterpriseAM.com .

DID YOU KNOW that we also cover Egypt, Saudi Arabia, and the MENA climate and logistics industries?

***

ADQ raises USD 2 bn in second bond issuance this year

Abu Dhabi’s sovereign wealth fund ADQ sold USD 2 bn worth of bonds in its second debt sale, state news agency Wam reports. The order book was 4.1x oversubscribed, drawing some USD 8 bn in bids from investors across the US, Europe, the Middle East, and Asia.

The details: Issued under its Global Medium Term Note Program, ADQ’s dual-tranche offering is set to be listed on the London Stock Exchange and consists of two tranches worth USD 1 bn each. The 7-year tranche was priced at a spread of 85 bps over US Treasuries, with an annual yield at 4.375%, while the 30-year tranche was priced at 120 bps with a 5.250% yield.

The issuance was met with strong investor demand, prompting the wealth fund to tighten the pricing by 30 bps to 85 basis points over US Treasuries for the 7-year tranche, and 120 bps over for the 30-year tranche, from an initial price guidance of 115 bps and 150 bps over.

ADVISORS- ADQ tapped Abu Dhabi Commercial Bank (ADCB), BofA Securities, Bank of China, BNP Paribas, FAB, JP Morgan, and Mizuho to serve as joint global coordinators and joint active bookrunners.

This marks ADQ’s second-ever dual-tranche bond issuance, following its maiden USD 2.5 bn issuance in May, which is listed on the London Stock Exchange and the ADX. The previous bond sale was 4.4x oversubscribed, attracting over USD 11 bn in orders.

REMEMBER- ADQ is looking to diversify its funding sources for future acquisitions, most recently snagging a USD 1 bn minority stake in Sotheby’s. It has also been exploring various regional investments, with a USD 180 mn tech-focused fund in Oman and a landmark USD 35 bn agreement with Egypt’s government back in February. It also inked agreements in Kenya worth USD 500 mn.

ADQ holds an Aa2 rating from Moody’s and an AA rating from Fitch, both with a stable outlook.

IN OTHER ADQ NEWS-

UK-based fine arts curator Sotheby’s is using ADQ’s USD 1 bn equity investment to offer its creditors a distribution of USD 700 mn, as it looks to cover its debt amid a contraction in the art and auctions markets, Bloomberg reports, citing people with knowledge of the matter. The investment, which provided the sovereign wealth fund with a minority stake, will land in Sotheby’s coffers in 4Q 2024.

Background: S&P Global Ratings had raised concerns about Sotheby’s ability to refinance its debt “if it does not improve performance,” and downgraded its credit rating further into junk territory earlier in June.

Abu Dhabi awards exploration concession to Malaysian energy outfit in Al Dhafra

Abu Dhabi’s Supreme Council for Financial and Economic Affairs (SCFEA) awarded another oil and gas exploration concession in Al Dhafra to Malaysia’s state-owned oil and gas firm Petronas, according to the Abu Dhabi Media Office. The agreement grants Petronas 100% exploration rights in the region’s Onshore Block 2, covering over 7.3k sqkm.

Background: Petronas was awarded its first Abu Dhabi concession from Adnoc in December 2022, focusing on exploring unconventional oil resources in Al Dhafra. Over in Malaysia, the two companies recently inked another agreement — alongside UK-based Storegga — to assess the feasibility of CO2 storage in saline aquifers and developing carbon capture and storage facilities in the Penyu Basin in Malaysia.

REMEMBER- This is the second concession awarded by Abu Dhabi this month: Earlier this month, SCFEA awarded a production concession in Al Ruwais to Urja Bharat (UBPL), a special purpose joint venture vehicle comprising India's Indian Oil Corporation and Bharat Petroleum Corporation.

The emirate has handed out a total of 11 blocks to international partners following successful exploration concession bid rounds in 2018 and 2019, according to the statement.

Digital energy investors Hodler + EHC Investments establish JV with projects lined up in UAE, KSA, and Egypt

New digital energy player in town: Dubai-based digital energy investor Hodler Investments and Abu Dhabi-based energy and tech investor EHC Investments are partnering up to launch Nexgen Energy Infrastructure, according to a statement (pdf). The joint venture will work on digital energy infrastructure projects in the UAE, Saudi Arabia and Egypt, Hodler Investments Managing Director Mohamed El Masri told EnterpriseAM UAE.

The game plan: Nexgen will use Holder’s digital energy platform, PermianChain, to develop critical energy infrastructure that monetizes wasted energy — like flared gas — to power AI and blockchain data center infrastructure. Its goals include reducing CO2 emissions and supplying energy to global data center operators, the statement said.

The timeline: Projects in each of their targeted countries are already in motion, with the partners working on securing the necessary licenses and permits, El Masri said. He expects construction to begin on the projects in 1Q 2025 if all goes as planned.

A chunk of the funding will come from Hodler’s digital energy infrastructure fund: Hodler and Abu Dhabi-based investment conglomerate Gewan Holding had revealed plans last month to set up a closed-ended, USD 250-500 mn digital energy infrastructure fund. The fund has already secured soft commitments worth at least USD 250 mn, and in-kind contributions from undisclosed lead investors, as well as offtake agreements with partners looking for connectivity and energy for mining and AI operations. It is currently awaiting regulatory approvals.

Dubai on track to open more than 34 new hotels in 2024 in tourism push

Some 34 new hotels are on track to open in Dubai this year, raising the total to 739, according to a Cavendish Maxwell report (pdf). The emirate had 716 hospitality establishments by the end of 1H 2024 to meet rising demand, with 67% of new supply in the luxury and upper upscale segments. An additional 18 hotels are expected to be completed next year.

Dubai’s hospitality market achieved an overall average occupancy of 78% during 1H 2024, representing a marginal 0.1% y-o-y increase, with the luxury and upper midscale segments logging the most significant gains. Revenue per available room in Dubai increased 4.7% y-o-y in 1H 2024, alongside a 4.6% increase in the average daily rate (ADR).

REMEMBER- Tourism is on the up in Dubai: The emirate attracted around 9.31 mn international visitors in 1H 2024. A record 44.9 mn visitors passed through Dubai International Airport (DXB) during the period, marking an 8% y-o-y increase, and prompting DXB to revise its 2024 passenger forecast up to a record 91.8 mn from 91 mn passengers.

IN ABU DHABI, RAS AL KHAIMAH, AND FUJAIRAH

Abu Dhabi City Hotels’ average occupancy rates hit 83% in 1H 2024, up 12% y-o-y from 76% in 2023, marking the highest y-o-y increase among the emirates, according to the report. Meanwhile, ADR in Abu Dhabi rose 11% y-o-y.

Occupancy rates were also up in Fujairah, modestly increasing 2.8% y-o-y to 77%, while Ras Al Khaimah logged a marginal decline of 0.3% y-o-y to 73%. ADR increased by 10.9% y-o-y in Ras Al-Khaimah and 2.8% y-o-y in Fujairah.

REMEMBER- Tourism is projected to account for 12% of GDP this year, totaling AED 236 bn. In 2023, GDP accounted for AED 220 bn of the national economy, reflecting an 11.7% y-o-y increase. However, rising operational costs and intensifying competition may pose challenges to growth, Cavendish Maxwell said.

Crypto ads now need to carry a warning in Dubai, as Vara cracks down on crypto marketing

Dubai tightens rules on crypto marketing: Dubai’s crypto watchdog, the Virtual Assets Regulatory Authority (Vara), introduced a new marketing framework for virtual asset service providers, tightening its rules for the promotion of virtual assets and requiring providers to highlight the risk associated with crypto investments in ad campaigns. The rules apply to all licensed virtual asset service providers, with non-licensed firms banned from marketing the digital asset.

Effective 1 October, all crypto firms promoting virtual assets in Dubai must adhere to the new rules or face fines of up to AED 10 mn, and starting at AED 500k.

Marketing campaigns will have to include disclaimers: Crypto companies will be required to state clearly the risks of investing in virtual assets to avoid misleading investors. This includes highlighting the risks of investing in crypto, with an explicit disclaimer noting that virtual assets “may lose their value in full or in part, and are subject to extreme volatility.” It also requires crypto exchanges and companies’ marketing content to refrain from using direct calls to buy crypto.

AND- No marketing of anonymity-enhanced coins: The new guidelines ban companies from marketing of anonymity-enhanced coins, which are private cryptocurrencies that cannot be traced on the blockchain.

REMEMBER- The UAE is making headway in becoming a crypto-friendly country, with the Dubai Financial Services Authority recently easing regulations around unrecognized crypto tokens and stablecoins, while the Central Bank of the UAE’s board greenlit the introduction of a licensing and regulatory system for stable cryptocurrencies.

The UAE is not alone: Countries like Belgium and Singapore have also worked to regulate crypto marketing in the past years, with the UK last year banning “refer a friend” bonuses and Belgium requiring risk disclaimers in ads.

The story got ink in Bloomberg

Dar Global posts USD 12.8 bn net loss in 1H 2024

Dubai-based luxury developer and subsidiary of Saudi-based Dar Al Arkan, Dar Global, reported a USD 12.8 bn net loss in 1H 2024, compared to a USD 20.8 mn profit in 1H 2023, according to its earnings release on the London Stock Exchange. The luxury real estate developer saw its revenue fall 59% y-o-y to USD 44.5 mn during the period. Sales were up 62.5% y-o-y to USD 1.3 bn during the period.

Behind the drop: The decline in revenue and profitability is attributed to several early-stage developments where revenue has yet to be realized. However, the company expects a stronger performance in the 2H 2024 and into 2025 as these revenues materialize.

REMEMBER- In real estate, sales ≠ revenues. With off-plan sales dominating the industry, most real estate companies book a sale when you sign a contract to buy a home. But they only record (some or all) of the value of the unit it sold you when it (a) delivers the unit to you or (b) hits a percentage completion on a total project. In most cases, then, revenues are composed of sales from past periods, while sales in a given quarter will be recognized as revenues in the future when units are completed or delivered.

What they said: “We are pleased to reiterate our target of delivering at least USD 700 mn of revenue across FY 2024 and FY 2025,” said CEO Ziad El Chaar.

Dar Global made a lot of key investments during the period, including the launch of the AED 900 mn Astera beachfront residences in Ras Al Khaimah with Aston Martin, and new Trump Towers in Jeddah and Dubai. The company also secured a 37-hectare lagoon in the Maldives for the first Dolce & Gabbana resort and expanded its Dubai portfolio with residential villas in Jumeirah Golf Estate.

Establishing new avenues of fundraising through innovative structures

Mashreq enables its financial institution clients to diversify funding streams and tap into fresh liquidity opportunities. Watch what our team can do for you here.

Nuveen joins asset manager rush to Abu Dhabi

FINANCE-

#1- US-based investment manager Nuveen is set to open its first Middle East office in Abu Dhabi after securing an Abu Dhabi Global Market license, joining the wave of asset managers expanding into the emirate, the Financial Times reports. The firm, which manages USD 1.2 tn in assets, will start with a three-person team for institutional clients, led by Fadi Khoury (LinkedIn), who will serve as the managing director for the region.

#2- Dubai Financial Services Authority (DFSA) accepted an enforceable undertaking from chartered accountant Baker Tilly, formally acknowledging that the firm failed to meet audit documentation standards, according to a DFSA statement. Baker Tilly breached two international standards on auditing and quality management, after failing to compile complete and final sets of audit documentation for multiple files over a three-year period, according to the statement.

M&A-

#1- Mashreq cashes in on Depa shares: Our friends at Mashreq sold a 24.18% stake — equivalent to 150 mn shares — in Nasdaq-listed contractor Depa to a private fund for AED 44.8 mn, according to a DFM disclosure (pdf). At AED 0.30 per share, Mashreq expects to pocket AED 16.6 mn from the sale.

Background: The lender was handed the shares from the financially troubled Arabtec Holding as part of a court judgment in exchange for guarantees in 2021.

#2- Property Finder exited its customer relationship management (CRM) business PropSpace, as it looks to focus on its core business, according to a press release. The newly created entity will be led by Patrick Caulfield (LinkedIn), who was previously managing director of UK property management CRM Arthur Online.

TRANSPORT-

Bayanat teams up with Vay on remote driving: Abu Dhabi-based software company Bayanat has partnered with German teledriving startup Vay to develop AI-powered remote driving solutions using geospatial data, according to a statement. The collaboration will see the two companies expand remote driving in the Middle East, Africa, and select Asia Pacific countries, the statement said. The two firms will also set up an R&D arm.

Background: Vay is the first and only company in Europe operating on public roads without a driver, with a commercial service launched in Las Vegas earlier this year.

HOSPITALITY-

Dubai-based engineering firm Dutco Construction was named the main contractor for the Gran Meliá luxury hotel in Port De La Mer in Jumeirah in Dubai, developed by ASB Hospitality, according to a company statement. The upcoming hotel is to hold a 5-star rating, featuring 380 luxurious rooms, including 31 executive suites with private pools, and is set to have the capacity to host 1k guests, Construction Week Online reports. The project is set to be completed in 4Q 2026.

DEBT-

The CBUAE’s latest 1.1 bn AED-denominated T-Sukuk auction was 4.6x oversubscribed, attracting AED 5.1 bn in bids, according to a finance ministry statement. The May 2027 tranche was priced at a yield of 3.67%, while the September 2029 tranche was set at 3.65%, with a spread of 13 to 15 basis points over US Treasury bonds of similar maturities at the time of issuance. This auction is part of the ministry’s 3Q 2024 Islamic Treasury Sukuk program, Wam reports.

BUSINESS-

Business and tax consultancy Proactive Zone launched a comprehensive service tailored for UK entrepreneurs looking to move their operations to Dubai, Newsfile reports. This initiative addresses the increasing interest from UK business owners seeking to benefit from Dubai's favorable tax regime. The service offers a range of solutions, including personalized tax advice, assistance with business setup, residency applications, and cultural acclimatization.

EDUCATION-

The Sharjah Private Education Authority signed a MoU with Diglossia to enhance standardized testing in private schools throughout Sharjah, state news agency Wam reports.

M&As are up this year despite headwinds and heightened regulatory scrutiny

The volume of global M&A transactions rose 14% y-o-y to USD 846.8 bn by 25 September, signaling persistent appetite despite market headwinds, Reuters reports, citing Dealogic data.

What the data shows: US M&A activity took a hit, dropping 8% y-o-y to USD 338 bn, largely due to regulatory scrutiny, market volatility, and high interest rates. Asia-Pacific led the charge with a 54% y-o-y surge in transaction volume to USD 273 bn, while Europe posted a 7% y-o-y increase, reaching USD 160 bn, the data showed.

Regulatory pressures put a damper on megadeals this year: Tougher antitrust scrutiny stalled megadeals surpassing USD 25 bn, with no transactions over USD 50 bn signed this year, according to the newswire. Increased scrutiny from antitrust watchdogs is partly to blame, analysts say.

The number of mid-sized M&A transactions increased 27% y-o-y, with 12 transactions ranging from USD 5 bn to USD 10 bn taking place so far this year, up from 10 in the same period last year, according to the data.

The biggest M&A transactions this year: Mars ’ USD 36 bn acquisition of snack-maker Kellanova, Blackstone ’s USD 16 bn buyout of AirTrunk, and Verizon ’s USD 9.6 bn purchase of Frontier Communications topped 3Q 2024’s largest transactions so far.

A slowdown in 4Q? Investors are expecting transactions to slow down ahead of the upcoming US elections, though analysts expect them to rebound early in 2025 as the US Federal Reserve’s interest rate cuts gives a boost to the economy.

IN OTHER PLANET FINANCE NEWS- Asset manager Apollo Global will use funds from Abu Dhabi’s Mubadala and other sources for a new USD 25 bn private credit initiative with Citigroup, aimed at private equity firms and lower-rated US companies, the Financial Times reports. The two firms plan to finance at least USD 25 bn in loans, targeting USD 5 bn in the first year.

REMEMBER- Mubadala backed Apollo’s private credit fund earlier this year with seed investments, with the fund and Apollo’s affiliate pooling USD 290 mn into the new fund.

MARKETS THIS MORNING-

Asian markets are mostly in the green as Chinese stocks continued a streak of gains amid news of a stimulus package aimed at reviving the economy. Hong Kong’s Hang Seng index opened up 3%, while mainland China’s CSI 300 is up 2.9%. Japan’s Nikkei is also up, while the Topix and Kospi are marginally down.

Meanwhile, Wall Street futures are largely flat after a good day for the S&P 500, which notched another record high, and the Nasdaq.

ADX	9,514	0.0% (YTD: -0.7%)
DFM	4,527	+0.8% (YTD: +11.5%)
Nasdaq Dubai UAE20	3,922	+0.1% (YTD: +2.1%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.6% o/n	4.0% 1 yr
TASI	12,374	+0.3% (YTD: +3.4%)
EGX30	31,277	+0.1% (YTD: 25.6%)
S&P 500	5,745	+0.4% (YTD: +20.5%)
FTSE 100	8,285	+0.2% (YTD: +7.3%)
Euro Stoxx 50	5,032	+2.4% (YTD: +11.3%)
Brent crude	USD 71.09	-0.71%
Natural gas (Nymex)	USD 2.59	-1.97%
Gold	USD 2,692.90	-0.1%
BTC	USD 65,266.66	+3.8% (YTD: +54.4%)

THE CLOSING BELL-

The ADX stayed flat yesterday on turnover of AED 1.9 bn. The index is down 0.7% YTD.

In the green: Union Ins. Company (+8.5%), Aram (+6.0%) and Modon Holding (+3.6%).

In the red: Fujairah Building Industries (-9.7%), Bildco (-9.4%) and Hayah Ins. Company (-8.6%).

Over on the DFM, the index rose 0.8% on turnover of AED 484.8 mn. Meanwhile Nasdaq Dubai closed up 0.1%.

My Morning Routine: Mohamed El Masri, managing director at Hodler Investments

Mohamed El Masri, managing director at Hodler Investments: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Mohamed El Masri (LinkedIn), managing director at Hodler Investments. Edited excerpts from our conversation:

If this was a LinkedIn conversation, my headline title is I’m a corporate finance professional, but at the end of the day, I'm a serial social entrepreneur at heart. It's just my spirit and I cannot control it — if I see a problem, I have to fix it. That innate passion is reflected in my journey building Hodler Investments and all the ventures underneath its umbrella, including our digital energy platform PermianChain.

I was born in Montreal, Canada, but I was raised in Saudi Arabia for most of my childhood and young adulthood. I moved back to Canada at the age of 17 to attend Concordia University and study political science. Since then, I’ve always felt that I can do more, and I didn't feel like what I was studying was enough for that, which is why I decided to venture into finance and get my diplomas and certifications to start my financial services career.

By 2014, I was back in Saudi working as a corporate finance advisor for a few years and continued that in DIFC in Dubai, until 2018 when I established my ventures and eventually set up Hodler in 2021.

Throughout that journey between 2008 and 2014, I was following Bitcoin during the early days and watching its price movements, so by 2017, I started to dig deeper and do more research — putting my political scientist hat on — and started to understand the mission and the purpose behind it.

It intrigued me and resonated with me — the need to have decentralized economies and for people to own their wealth and be able to transact freely without the presence of central authorities, but for me, something was missing, which was the compliance element. That's where I put my corporate finance hat on, and I was able to merge the two worlds — between finance, monetary policy, and politics. This is when I realized that for all of this to actually operate, massive amounts of energy are required.

Globally, I think we're close to 3% of the world's electricity being consumed by data centers, and with the acceleration of AI and other modern technology, computing requirements continue to grow. This will require a lot more energy. Large companies like Meta, Google, and Amazon, are looking for this infrastructure, so the market is there.

Consolidating my ventures under Hodler just made my life easier from an investment perspective and allowed me to focus my efforts top down. I have multiple ventures that are in vertical avenues, from energy to AI to digital asset mining, and the platform that manages the ecosystem is PermianChain. So we established Hodler in order to be able to do exactly what we're doing today, which is to forge partnerships with key players in the market and reputable firms like EHC and Gewan, to allow us to execute on our mission.

Our approach to set up an investment fund in DIFC with our fund manager is also part of our business model, to be founding members of these investment funds that support the industries that we are in.

In terms of my responsibilities, I'm basically everywhere at the same time. I'm talking to you right now. I'm drafting a term sheet for a new client. I’m running through calls and meetings. At this point, I'm still not fortunate enough to have an assistant, so it's just me and my partners. We're at the office in the morning; we're on calls throughout the day, and we're driving to Abu Dhabi every other day, strategizing with our partners, working with engineers — whether it’s petroleum engineers or electrical, mechanical, or data center engineers — and putting the pieces together.

My morning usually starts with my kids jumping on the bed — that's my alarm. Then I take a quick drink of water, have my coffee, and get ready to start the day, usually starting with the gym and then to the office. I take time in traffic to answer emails.

The constant in my days is caring for my family, and forcing my business partner to join me at the gym.

For the last year, I have not been doing any switching off. I just try to get my six to eight hours of sleep.

There's no such thing as a work-life balance, because honestly, if you love what you do, you can't stop, even if you want to. You would go to bed and if you have your phone next to you, then you're going to turn it on and try to check on things that you missed out on today, and think about things that you want to get done tomorrow. The only time I switch off is really in the morning when I'm at the gym.

Currently at Hodler, we're in that phase where we can't switch off. Maybe later, the time will come where we will move slower because we're strategizing and we're building on growth, but at this point, we're on the launch pad.

My goals for Hodler are to put the USD 500 mn worth of projects under our portfolio and strengthen the existing partnerships that we forged with EHC and Gewan, because it's a real honor to be working with them. In terms of my personal life, I think I’ve achieved everything that I've set out to achieve ever since I was 18 years old. I don't measure my success with money, I measure it based on milestones and relationships, and the relationships I've built at this point are beyond what I would have ever dreamed of. Having the blessings of my parents, and the love of my siblings and wife and kids — what more can a man ask for?

I'm currently reading a book called The New Map by Daniel Yergin. It really offers a global perspective on what's happening in our world at this time, and how energy is the base of every nation's sovereignty. I also like to read a few pages of the Quran at night to give me the advice and reassurance I need to remain sane and hopeful.

The one piece of advice that has always resonated with me is the advice I received from my father, and it’s actually a verse from Surah Al Luqman that says to always be humble, but not let people walk all over you.

CALENDAR

SEPTEMBER

22-27 September (Sunday-Friday): APG Annual Meeting and Technical Assistance & Training Forum 2024, Abu Dhabi.

24-30 September (Tuesday- Monday): The UN General Assembly, New York.

28 September (Saturday): Mining Grid crypto and blockchain ecosystem, Dubai, 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.

2-3 October (Wednesday-Thursday): MENA District Cooling Projects & MENA Cool Forum, Grand Hyatt Dubai, Dubai Healthcare City, Dubai.

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

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

7-10 October (Monday-Thursday): The World Air Taxi Congress, The Grand Hyatt Dubai, Dubai.

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

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

9-10 October (Wednesday-Thursday): The Regional Data and Community Development Forum, Al Jawaher Reception and Convention Centre, Sharjah.

10-13 October (Thursday-Sunday): The Abu Dhabi Grand Slam Judo tournament, Mubadala Arena.

13-14 October (Sunday-Monday): Abu Dhabi Wedding Show, Park Hyatt Abu Dhabi.

13-16 October (Sunday-Wednesday): DMCCxAGCC: Global AI Challenge *Sustainability Edition, Dubai.

14-18 October (Monday-Friday): Gitex Global, Dubai World Trade Centre and Dubai Harbour.

15-16 October (Tuesday-Wednesday): SuperBridge Summit 2024, Dubai World Trade Centre, Dubai.

13-16 October (Sunday-Wednesday): Expand North Star, Dubai Harbour.

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

14 October (Monday): The Smart Cities MENA Summit, Dubai.

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.

20-23 October (Sunday-Wednesday): The 63rd International Congress and Convention Association (ICCA) Congress, Abu Dhabi National Exhibition Centre, Abu Dhabi.

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 October (Saturday): UFC 308: TOPURIA vs HOLLOWAY, Etihad Arena, Abu Dhabi.

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.

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

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

NOVEMBER

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

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

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

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

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.

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

19-20 November (Tuesday-Wednesday): Dubai Future Forum.

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

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

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

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

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

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

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

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

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

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

Signposted to happen ahead of ADIPEC:

Changemakers Majlis, Abu Dhabi.

DECEMBER

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

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

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

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

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

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

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

6 December-12 January: Dubai Shopping Festival.

Signposted to happen sometime in December:

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

JANUARY 2025

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

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

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

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

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

FEBRUARY 2025

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

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

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

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

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

Signposted to happen sometime in 1Q 2025:

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

APRIL 2025

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

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

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

Signposted to happen sometime in April:

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

MAY 2025

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

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

JUNE 2025

3-4 June (Tuesday-Wednesday): Make-A-Wish International’s Global Wish summit, Abu Dhabi.

OCTOBER 2025

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

Signposted to happen sometime in 2025:

The Middle East Electric Vehicle Show, Expo Center Sharjah.
e& will complete Adnoc’s private 5G network.
The International Civil Aviation Organization’s Global Implementation Support Symposium, Abu Dhabi.

Signposted to happen sometime in the fall of 2025:

2025 Games of the Future, Dubai.

Signposted to happen sometime in 2026:

The UAE to host the Arab Competition Forum
Dubai to host the Arab Actuarial Conference

Signposted to happen sometime in 2028:

Abu Dhabi to host the Chess Olympiad.

Signposted to happen sometime in 2029:

Dubai to host the International Conference on Computer Vision.

Sections

About

Privacy & Support

Get EnterpriseAM daily

ADQ raises USD 2 bn in second bond issuance this year

An independent publication supported by

Today at a glance

THIS MORNING: Union Properties plans AED 6 bn in investments + Pakistan secures fresh funding from the UAE?

Related

This publication is proudly sponsored by

ADQ raises USD 2 bn in second bond issuance this year

Related

Abu Dhabi awards exploration concession to Malaysian energy outfit in Al Dhafra

Related

Related

Digital energy investors Hodler + EHC Investments establish JV with projects lined up in UAE, KSA, and Egypt

Related

Dubai on track to open more than 34 new hotels in 2024 in tourism push

Related

Crypto ads now need to carry a warning in Dubai, as Vara cracks down on crypto marketing

Related

Dar Global posts USD 12.8 bn net loss in 1H 2024

Related

Establishing new avenues of fundraising through innovative structures

Related

Nuveen joins asset manager rush to Abu Dhabi

Related

M&As are up this year despite headwinds and heightened regulatory scrutiny

Related

My Morning Routine: Mohamed El Masri, managing director at Hodler Investments

Related

CALENDAR

Related

About

Privacy & Support

My EnterpriseAM

Sign in

Check your email! We've sent you a magic link to sign in.

Sections

About

Privacy & Support

Get EnterpriseAM daily

ADQ raises USD 2 bn in second bond issuance this year

An independent publication supported by

Today at a glance

Get Enterprise daily

Related

This publication is proudly sponsored by

Related

Related

Related

Related

Related

Related

Related

Related

Related

Related

Related

CALENDAR

Related

An independent publication supported by

About

Privacy & Support

My EnterpriseAM

Sign in

Check your email! We've sent you a magic link to sign in.