ADQ taps debt markets with second dual-tranche bond this year

1

WHAT WE’RE TRACKING TODAY

THIS MORNING: More family offices, lenders set up shop in Dubai + Kenya eyes USD 1.5 bn bailout from the UAE

Good morning, lovely people. In keeping with the theme of the week, we have another news dump day with a bunch of M&A updates, debt and M&A news, and more positive news for the UAE’s AI and tech ambitions.

WEATHER- It’s another mostly sunny day today, though we see a thick fog forming in Dubai, so be careful while driving today. Dubai is set to see a daytime high of 38°C and an overnight low of 30°C, while Abu Dhabi will see a high of 34°C before the mercury dips to 31°C at night.

WATCH THIS SPACE-

#1- Nigerian b’naire Aliko Dangote is establishing a family office in Dubai that will look to expand his group’s portfolio beyond industrials, he told Bloomberg. Dangote’s daughter, Halima, moved to the emirate last month to manage the firm.

His ties with Dubai go way back: Dubai Holding bought a minority stake in his cement company a decade ago, and Dangote more recently invested in UAE-based emerging markets asset manager Gateway Partners.

Remember: The number of m’naires in the UAE is expected to grow by 15% over the next five years, reaching 232.1k in 2028 from 202.2k currently, amid an influx of high net-worth individuals who are setting up family offices here, according to a study by the investment bank UBS. The country is expected to see 6.7k more m’naires this year, the highest net inflow of m’naires worldwide.

#2- South African bank Investec opened a regional office in the Dubai International Financial Centre to serve high-net-worth clients and family offices in the GCC, the lender said in a statement. Investec plans to capitalize on the extensive expat community in the emirate, with 5k of its UK clients living in Dubai, and more than 2.4k South African-affiliated companies being registered in the emirate, Bloomberg reports.

SPEAKING OF DUBAI’S POSITION AS A FINANCIAL CENTER- Dubai moved up on the Global Financial Centers Index to land in the 16th spot globally, up from 20th in a previous ranking in March. It maintained the first spot in the Mena region, followed by Abu Dhabi, which moved up two ranks to land in the 35th place. The index is published by London’s commercial think-tank firm Z/Yen Group.

#3- French private equity firm PAI Partners is vying with US peer Clayton, Dubilier & Rice for the acquisition of Sanofi’s consumer health unit, after both companies filed binding offers to the French drugmaker, Bloomberg reports, citing people familiar with the matter. The bids could value the unit at over EUR 15 bn (c. USD 16.74 bn), sources said, in what could be one of Europe’s largest transactions this year. Sanofi said it would make a decision in the coming days after reviewing the offers.

REMEMBER- PAI has been in talks with the Abu Dhabi Investment Authority to potentially join its bid. It’s also reportedly in talks with Canada’s British Columbia Investment Management Corporation and Singapore’s sovereign wealth fund GIC, sources told Bloomberg.

An acquisition might not be the only outcome: Sanofi could opt for a spinoff of the unit if the offers didn’t meet its expectations, Bloomberg cites sources as saying. Taking the company public is also on the table, a company representative said, adding that a transaction is expected to take place in 4Q 2024 at the earliest.

REMEMBER- Another Adia + PAI transaction is in the works: Adia is mulling investing at least EUR 1 bn in Froneri, PAI’s ice cream JV with Nestlé, which owns brands like Haagen-Dazs.

#4- Kenya is negotiating a USD 1.5 bn loan with Abu Dhabi to help close its financing gap and boost its FX reserves, Bloomberg reports, citing unnamed sources. The proposed loan could carry an interest rate of 8.2%, lower than current yields on Kenya’s sovereign bonds. The country’s fiscal deficit stands at 4.3% of GDP, necessitating USD 2.8 bn in foreign loans and USD 3.2 bn in local funding to address the shortfall.

This comes on the heels of a joint committee session in Abu Dhabi last month, where the UAE and Kenya discussed enhancing cooperation in trade, investment, tourism, energy, and defense. Earlier this year in February, the two nations concluded discussions on a trade and economic partnership agreement, with plans to formalize it soon.

#5- NeoPay to expand in the region? New majority owners of our friends at Mashreq’s payment services provider NeoPay, Bahrain-based asset management firm Arcapita Group Holdings and Turkish fintech firm Dgpays, want to expand its services outside the UAE and into other GCC countries, Egypt, and Pakistan, Arcapita’s Managing Director of MENA Investment Yousif Al Abdalla told Al Arabiya (watch, runtime: 9:30). The expansion could happen through M&As with firms operating in the market, forming JVs with local banks, or acquiring the necessary license to operate in the new markets, he added.

Remember: Arcapita and Dgpays recently snapped up 65% of Mashreq Bank’s payment subsidiary NeoPay in a transaction valuing it at USD 385 mn.

PUBLIC SERVICE ANNOUNCEMENT-

Drivers in Ajman will need to be careful with violations like mobile phone usage and failure to wear seatbelts, with the emirate set to launch a smart monitoring system on 1 October to detect the violations, Ajman police stated in an X post.

HAPPENING TODAY-

#1- The Freight Summit Global Conference is on its final day today at the W Hotel in The Palm, Dubai. The conference is slated to bring together over 400 international freight forwarders to network and boost partnerships globally.

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

#5- Gulfood Green is on its final day today at the Dubai World Trade Centre. The event connects startups and investors in the FoodTech and AgriTech sectors, exploring new methods of food production, trade, and consumption. You can register here.

#6- The Global Aerospace Summit is on its second and final day today in Abu Dhabi. The summit will gather key players in the global aerospace supply chain industry along with high level industry and government officials to discuss industry services, legal structure and resource sharing.

#8- 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 for tomorrow 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.

#9- The Dubai World Trade Centre is hosting the ISM Middle East 2024 event today, featuring discussions on trends in the sweets and snacks industry.

#10- The Private Label Middle East event is taking place today at the Dubai World Trade Centre, with a focus on making products more accessible to consumers while promoting ecological responsibility.

#11- The 42nd edition of the ArabLab Live exhibition is on its final day today at the Dubai World Trade Centre. The exhibition is showcasing over 1k exhibitors, featuring seminars on biotechnology, environmental analysis and food safety to foster networking and discussions on laboratory advancements.

HAPPENING NEXT WEEK-

CBUAE to auction AED 14.1 bn M-Bills: The Central Bank of the UAE (CBUAE) will offer up to AED 14.1 bn in four M-Bills at an auction on Monday 30 September, according to a statement (pdf) from the bank. The bills will have tenors ranging from 28 to 266 days.

Decoding central bank speak: M-bills are short-term securities issued in AED by the CBUAE at no interest. The bonds typically have maturity dates of one to 12 months and are not retrievable through any other listing. A tap issuance allows the CBUAE to more finely control money supply by allowing it the flexibility to continue selling bills past the initial auction date.

THE BIG STORY ABROAD-

Business news is once again being pushed down the digital front page as the world’s press cover frantic diplomatic efforts to try to put together a ceasefire to stop “hell … breaking loose” — in the words of UN Secretary-General António Guterres. French and US authorities pushed for a temporary ceasefire between Israel and Hezbollah at the UN General Assembly yesterday, with French president Emmanuel Macron saying, “Israel cannot, without consequence, just expand its operations to Lebanon.” The two countries are apparently pushing for a 21-day ceasefire, according to two sources speaking to the Financial Times, with Biden expressing hopes that a truce might help pave the way to “dealing with the [occupied] West Bank” and Gaza.

Alongside hopes for a ceasefire are fears of an Israeli ground invasion into Lebanon after Israeli Chief of Staff Lieutenant General Herzi Halevi told Israeli troops that the country’s airstrikes on Lebanon were aimed not just at degrading Hezbollah’s capabilities, but “to prepare the ground for your possible entry.”

ELSEWHERE IN THE REGION- Libya’s two opposing governments have reportedly agreed on a new central bank leadership to be announced later today, sending Brent crude futures down 2.3% by the end of trading with the expectation of the country to soon up supply. The country’s oil output has fallen by more than half this month after a dispute between competing political factions over central bank-controlled oil revenues led to the removal of the bank’s governor and production strikes in protest.

AND IN BIG TECH NEWS- OpenAI’s CTO Mira Murati announced her departure yesterday — the third in a string of high-profile departures from the AI leader after John Schulman and Ilya Sutskever earlier this year. It was also revealed that OpenAI is in the midst of formulating a plan to restructure the core business into a for-profit corporation as the company seeks to remove the cap on investor returns.

PLUS- The FBI is investigating California-based VC fund Hone Capital on allegations of accessing information about the technology, finances, and clients of US-based startups for the benefit of their Beijing-based financiers or even even the Chinese state. The VC fund has invested in more than 360 tech startups in less than three years, including acquiring stakes in driverless car maker Cruise, payments group Stripe, and aerospace engineer Boom.

***

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 launches dual tranche issuance

ADQ takes second bond issuance to the market: Abu Dhabi’s sovereign wealth fund ADQ tapped banks to market 7-year and 30-year USD-denominated benchmark-sized bonds, Zawya reports, citing IFR. The sovereign wealth fund has set the initial pricing for the 7-year tranche at 115 bps over US Treasuries, with a guidance of 150 bps over for the 30-year tranche. The senior unsecured notes are being issued under ADQ’s global medium term note program.

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. It has recently 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.

CBUAE revises 2024 growth outlook up to 4%

CBUAE upgrades 2024 growth outlook: The Central Bank of the UAE (CBUAE) upgraded its growth outlook for 2024 for the third time this year, penciling in 4% growth, up from its 3.9% June projection, according to its Quarterly Economic Review (pdf).

The CBUAE attributed the adjustment to the “improved performance of the oil sector,” with other industries also expected to buoy growth including tourism, transport, financial services, ins., construction, real estate, and communication.

The oil sector is now expected to grow 0.7% in 2024, up 0.4 percentage points from the previous 0.3% projection, with a 3.3% increase in gas and non-oil fuels and a 0.6% decline in oil output. In 2025, the sector is expected to grow a lot more — but less than previously expected, with the central bank revising its growth forecast for the sector down to 7.7% in 2025, compared with its previous 8.4% forecast.

REMEMBER- The UAE’s oil production has been inching up slightly in recent months, as the country looks to boost production in line with increasing capacity. Opec+ granted the UAE a higher production quota of 3.5 mn barrels per day in 2025, up from the current 2.9 mn, and had allowed Opec countries to begin to ease supply cuts starting October — but later scrapped the plans as oil prices continued to fall.

The UAE’s ins. sector saw strong growth in 1H 2024, with gross written premiums up 31.2% y-o-y to AED 35.7 bn, driven by property and liability (+39.4%), health (+30.7%), and life insurance premiums (+9.1%). Gross claims paid jumped 34% to AED 18.9 bn, fueled by a 46.2% rise in property claims and a 150% increase in life ins. claims.

On the other hand, the non-oil sector’s growth forecast was revised down to 5.2% this year, down from its earlier 5.4% projection. It sees the sector growing 5.3% in 2025, largely driven by the government’s “strategic plan and policies” to attract foreign direct investment. Another key factor the central bank sees propelling the non-oil industry is the introduction of full foreign ownership of companies and tax reforms.

The CBUAE lowered its inflation forecast for 2024 to 2.2%, down from its previous projections of 2.3% in June.

The central bank dialed back its forecast for growth in 2025, penciling in 6% growth, driven by sustained growth in the non-oil sector and a rise in oil production, down from a 6.2% projection in June.

What headwinds lie ahead? Potential escalations in geopolitical tensions and Opec’s oil production cuts could possibly weigh on growth, the central bank said. On the flip side, a “faster-than-expected reduction in interest rates in the major advanced economies” could lead to positive outcomes such as boosting global demand and attracting capital inflows into emerging markets like the UAE.

GulfNav’s board greenlights terms for Brooge takeover

GulfNav closes in on Brooge takeover: Maritime player GulfNav received board approval for key terms for its acquisition of oil storage outfit Brooge Petroleum and Gas Investment Company from Brooge Energy, according to a press release (pdf). The acquisition will be executed through a share swap agreement.

GulfNav’s board approved a capital increase of AED 448.5 mn, equivalent to the number of shares to be issued to Brooge. The capital increase is set to be financed through a mix of payments, new shares, and a convertible bond issuance to Brooge.

REMEMBER- Gulfnav submitted an acquisition proposal earlier in the year to the Securities and Commodities Authority (SCA), following its initial proposal back in October 2023. The acquisition was initially expected to close in 4Q 2023. In July, GulfNav said it aimed to complete the evaluation within the coming weeks, and in August, the company was slated to hold a general assembly to initiate the signing procedures for the transaction.

What’s next? The terms of the transaction will be presented to GulfNav shareholders at a general assembly for final approval, subject to SCA clearance. Once approved, GulfNav will move forward with the acquisition.

About Brooge: Founded in 2013, Brooge is a leading player in the crude oil storage sector, with the capacity to store 6.3 mn barrels of oil in Fujairah. The firm plans to double its capacity in the coming years.

Aldar to invest AED 1.5 bn in Abu Dhabi, Ras Al Khaimah hotels + Wheel of Fate’s new real estate unit earmarks AED 10 bn in real estate investments

More investments in real estate and hospitality are trickling in, with Aldar Properties committing yet more funds to its hotel portfolio and a new Dubai-based real estate player planning some USD 2.7 bn projects across the UAE.

Aldar Properties to invest in hotel revamps-

Aldar Properties is committing AED 1.5 bn to expand and revamp its hotels in Abu Dhabi and Ras Al Khaimah, the developer said in an ADX disclosure (pdf). The developer plans to introduce new luxury brands to the capital, the statement said, without disclosing a timelines for any of the projects.

The Abu Dhabi upgrades:

The six-hotel complex known as the Yas Plaza Hotels will become the world’s largest Vignette Collection resort, dubbed Straylight Yas, featuring a private beach and new beachfront suites;
Nurai Island will undergo “major refurbishment and expansion” into the largest resort in the region, with upgraded villas, F&B options, and luxury facilities;
Tilal Liwa in Al Dhafra will also be rebranded under the Vignette Collection, and will feature new luxury suites, desert experiences, and upgraded F&B offerings, kids club, and spa facilities;
The Eastern Mangroves hotel will be upgraded to focus on luxury rooms and suites, as well as leisure and event facilities and new luxury residential and retail offerings, and will be rebranded as the Waldorf Astoria Abu Dhabi through a Hilton partnership;

In Ras Al Khaimah: Aldar will upgrade its Rixos Bab Al Bahr and DoubleTree by Hilton Resort & Spa Marjan Island with phased renovations to guest rooms and public spaces.

ICYMI- Aldar has kicked up its efforts to diversify its portfolio: Last week, it teamed up with Mubadala on four joint ventures to develop and manage real estate in Abu Dhabi worth AED 30 bn. Earlier this year, Aldar set aside AED 1 bn to expand its logistics operations in Abu Dhabi and Dubai, and AED 5 bn for commercial, retail, and hospitality assets set to open between 2025 and 2027. In July, it also committed AED 1.8 bn to bolster its commercial presence in key Dubai business districts. The developer also plans to launch a Nobu Hotel on Saadiyat Island, slated for handover in 2027.

New Wheel of Fate real estate unit to invest in Dubai, Ras al Khaimah-

Source of Fate will pour AED 10 bn into UAE real estate developments: The new real estate arm of the Dubai-based conglomerate Wheel of Fate, Source of Fate, is planning to invest USD 2.7 bn in five new real estate projects across the UAE, Arabian Business reports, citing a press release. The projects include two residential developments in Dubai and three projects on Al Marjan Island in Ras Al Khaimah.

What we know: The company will focus on luxury properties, with off-plan sales to brokers, real estate investors and prospective homeowners taking place over the coming months, General Manager Majid Jack Hsiung stated.

ADVISORS- Source of Fate appointed real estate consultant Savills as an advisor on its expansion plan.

Dubai’s real estate bubble risk accelerated over the past year -UBS

Dubai’s real estate market saw the highest risk increase globally since mid-2023, while still remaining in the moderate risk territory, according to UBS’ latest Global Real Estate Bubble Index (pdf). The emirate’s risk score climbed to 0.64 in 2024, up from 0.14 last year, pushing its ranking to 14th from 23rd — the largest risk score increase among all analyzed cities. Dubai also topped the index for price increases.

What exactly is a real estate bubble? A real estate bubble refers to a situation where property values in a specific area are excessively inflated compared to their actual worth, often due to speculation and other external influences. This can lead to abrupt downturns, where prices drop sharply as the market seeks to correct itself — often through overcorrection.

Home price surge: Home prices in Dubai have surged 17% over the past year and are now 40% higher than in 2020, driven by a wave of demand fueled by rapid population growth and an influx of international investors from regions with shaky economic climates. Even with these price hikes, rental yields remain solid at 6-7%, thanks to a 60% increase in real rents.

But with growth comes risk: Speculative buying and off-plan sales have driven much of the price surge, especially in the luxury sector, which UBS sees being potentially overvalued, and expects to see some volatility.

Still, strong demand fundamentals buoy the sector, with rising household incomes, high cash transaction levels, and a thriving local economy expected to keep it in check.

Looking ahead, the market faces a few hurdles: Economic slowdowns and oil price drops pose potential risks, and with Dubai’s housing stock expected to grow by a third by 2029, long-term price growth may be harder to sustain, the report says.

Adia backs SC Lowy’s South Korean real estate fund

Adia backs South Korean real estate fund: The Abu Dhabi Investment Authority (Adia) invested an undisclosed amount in a South Korean real estate credit fund managed by alternative asset manager SC Lowy, IPE Real Assets reports. Adia made the investment — of which a “significant” proportion has already been deployed — through a separately managed account, according to details of the transaction picked up by Preqin.

About the fund: SC Lowy’s Strategic Investments Fund IV is an Asia Pacific-focused direct lending fund providing financing to South Korean-based developers, construction companies, and domestic financial institutions, focusing on residential, commercial, and logistics projects in major cities. It closed USD 130 mn at the start of 2024, and has a USD 500 mn target.

What they said: “We see a huge [window] with stable returns of around 15% IRR and 1.5x [multiple on invested capital],” SC Lowy chief strategy officer Lionel de Somer told Preqin. “Given the lack of private capital in Asia, a booming economy, the need for private credit will increase in the next couple of years,” he added.

REMEMBER- Adia is pouring more into alternative funds: Last week, Adia shelled out funding for London-based credit investor Polus Capital Management, while in June, the sovereign wealth fund made a USD 199.8 mn investment in Australian real estate private credit company Qualitas Diversified Credit Investments, and an unspecified investment in Jain Global. During the same month, an Adia subsidiary backed European Pemberton Asset Management’s new Nav strategic financing strategy.

Microsoft plans first regional engineering development center in Abu Dhabi

Microsoft to build first engineering facility in the region in Abu Dhabi: Microsoft is establishing an engineering development center in Abu Dhabi, marking its inaugural engineering facility in the region, according to a press release.

The center will help upskill local talent: The center will focus on upskilling professionals and emerging talent in areas such as cloud computing, artificial intelligence, and cybersecurity. The company intends to achieve this through collaboration with local universities, training centers, and government programs to improve employability in tech-driven sectors.

The tech giant has been expanding its footprint here: Microsoft last week partnered up with G42 to open two artificial intelligence centers in Abu Dhabi to improve AI access in the Middle East and Global South. This partnership builds on previous USD 1.5 bn Microsoft investment in G42 in April.

Dubai inflation sees uptick in August, fueled by increase in fuel, housing, and utilities costs

Dubai’s annual inflation accelerated in August, inching up to 3.38% y-o-y, compared to the 3.32% y-o-y increase recorded in July, according to figures from the Dubai Statistics Center (pdf).

The culprits: Prices of housing, water, electricity, gas, and other fuels — the largest component of the basket of goods and services — surged at the highest pace this year to 6.92% y-o-y during August. Food and beverage inflation also picked up, reaching a five-month high of 2.75% y-o-y, compared to 2.46% y-o-y in July. Additionally, prices for restaurants and accommodation services rose to 0.22% y-o-y from a decrease of 0.31% y-o-y.

REMEMBER- The Fuel Price Follow-up Committee hiked fuel prices for August by around 2%, but slashed them by 6% in September.

Month-on-month, Dubai’s inflation accelerated to its highest level since January, rising to 0.55%, up from its 0.08% dip in July, according to the statistics center’s monthly inflation report (pdf).

New Ajeej Capital and Nuwa Capital partnership launches USD 100 mn private debt fund

GCC-focused investment partnership Amplify Growth launched a USD 100 mn private debt fund targeting tech companies across the Mena+Turkey region, according to a press release. The fund will be mainly dedicated to firms in the Series A to Series C stages.

About Amplify Growth: The partnership was recently established by Dubai-based asset manager Ajeej Capital, who manages the fund, and venture capital platform Nuwa Capital, serving as an advisor.

The first transaction is wrapping up with more to come: Amplify has already sealed its first transaction with a Saudi-based fintech company, declining to share its name. A second investment from the fund will be announced soon, fund head Sharaf Sharaf said.

Amplify will dedicate up to 20% of its capital to companies outside the region working towards entering markets in the region, and standard businesses aiming to incorporate technology into their operations.

Uber and WeRide are bringing robotaxis to the UAE

TRANSPORT-

Uber to add self-driving vehicles to its fleet: Uber partnered with WeRide to introduce WeRide’s self-driving vehicles on the Uber app, starting in the UAE, according to a company statement. The partnership is set to kick off in Abu Dhabi later this year, where select WeRide vehicles will be available for Uber users.

About WeRide: The company boasts the largest robotaxi fleet in the UAE, accessible via its TXAI app. It was awarded the UAE’s first national license for self-driving vehicles in July 2023, allowing it to test and operate its autonomous fleet nationwide.

INVESTMENT-

Sovereign wealth fund Mubadala’s asset management arm Mubadala Capital participated in a USD 65 mn series A funding round for UK-based GC Therapeutics (GCTx), according to a press release. The round was led by Cormorant Asset Management, with participation from Andreessen Horowitz, Medical Excellence Capital, Cercano Management and Pear VC.

The funding will allow GCTx to expand its cell therapy platform, which uses advanced technology to develop treatments for gastrointestinal, neurological, and immunological diseases.

Mubadala Capital ❤️ biotech: Mubadala Capital poured USD 680 mn to acquire Belgian biopharma firm UCB’s carved out neurology and allergy business in China back in August. Mubadala Capital also invested in three US biotech startups — Outpace Bio, Metsera, and Capstan Therapeutics — with a combined USD 617 mn.

DEBT-

Real estate developer Arada completed a USD 150 mn tap into its USD 400 mn sukuk issuance on both the London Stock Exchange and Nasdaq Dubai, bringing the total issuance to USD 550 mn, according to a statement.

The tap issuance saw strong demand from investors: The issuance was 3.2x oversubscribed, receiving over USD 480 mn in orders. The tap was priced at USD 102.54, with an average yield of 7.35%, 15 basis points (bps) down from the initial guidance.

ICYMI- Arada took a five-year USD 400 mn sukuk to market in June — part of its USD 1 bn sukuk program — with the proceeds allocated for general corporate purposes and to support its projects. The issuance was 3.5x oversubscribed, drawing some USD 1.45 bn in orders.

FINANCE-

DMCC partners with Palestine Islamic Bank to facilitate Islamic finance via its Tradeflow platform: The Dubai Multi Commodities Centre (DMCC) signed an MoU with Palestine Islamic Bank (PIB) to enable secure Sharia-compliant transactions via the DMCC Tradeflow platform, according to a press release.

E-COMMERCE-

iDeals sets its eyes on Mexico: Dubai-based e-commerce platform iDeals partnered with Al Fajer family, owner of Al Fajer Enterprises conglomerate, to launch its business in Mexico, according to a press release. Raul Fager will serve as iDeals’ CEO in Mexico.

OECD revises 2024 global growth forecast to 3.2%, hinting stability

The global economy is inching closer towards stability, with the impact of aggressive rate hikes by central banks starting to fade, according to the Organisation for Economic Cooperation and Development (OECD)’s latest economic foreca st (pdf). The Paris-based organization revised its global growth forecast for 2024 to 3.2%, up 0.1 percentage points. The projection for 2025 was kept at the same level.

What’s driving the change? A combination of cooling inflation, recovering trade flows, and easing labor market pressures is boosting the economy and allowing central banks to begin to ease monetary policy. If the decline in oil prices persists, headline inflation could fall a further 0.5 percentage points lower than expected next year, the OECD says.

The big picture: Global growth is expected to stabilize despite geopolitical tensions and sluggish labor markets. The OECD now expects the UK economy to expand by 1.1% in 2024, up from its previous estimate of 0.4%, and by 1.2% in 2025, up 0.2% percentage points from its previous estimate. Growth in the euro zone is expected to nearly double from 0.7% growth this year to 1.3% in 2025, as incomes outpace inflation.

Meanwhile, the US and China are up for more modest slowdowns, with interest rate cuts expected to help cushion the US economy’s slowdown to 1.8% next year from 2.6% in 2024, up from a previous 2025 estimate of 1.6%.

The story got ink in Reuters and Bloomberg.

MARKETS THIS MORNING-

Asian markets are largely in the green, with China’s CSI 300 continuing a five-day streak of gains as investors cheer the economic stimulus package introduced by the government earlier this week. Japan’s Nikkei and South Korea’s Kospi are also both up 1.7%. Over on Wall Street, the Dow Jones broke its four-day streak of gains, with futures little changed this morning.

ADX	9,516	+0.6% (YTD: -0.6%)
DFM	4,489	+0.6% (YTD: +10.6%)
Nasdaq Dubai UAE20	3,917	+1.0% (YTD: +2.0%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.6% o/n	4.1% 1 yr
TASI	12,344	+0.6% (YTD: +3.1%)
EGX30	31,251	+1.2% (YTD: +25.5%)
S&P 500	5,722	-0.2% (YTD: +20.0%)
FTSE 100	8,269	-0.2% (YTD: +6.9%)
Euro Stoxx 50	4,917	-0.5% (YTD: +8.8%)
Brent crude	USD 73.46	-2.3%
Natural gas (Nymex)	USD 2.64	+0.23%
Gold	USD 2,681.10	+0.2%
BTC	USD 63,439.50	-1.2% (YTD: +50.2%)

THE CLOSING BELL-

The DFM rose 0.6% yesterday on turnover of AED 353.3 mn. The index is up 10.6% YTD.

In the green: Al Salam Sudan (+7.2%), Drake & Scull International (+3.8%) and Parkin Company (+3.6%).

In the red: International Financial Advisors (-10.0%), Depa Limited (-7.6%) and Mashreqbank (-2.6%).

Over on the ADX, the index also rose 0.6% on turnover of AED 1.9 bn. Meanwhile Nasdaq Dubai closed up 1.0%

Trade agreement locked in with New Zealand + More from the president’s trip to the US

New Zealand and the UAE have reached a trade and economic agreement and finalized a bilateral investment treaty to boost export flows and investments between the two countries, according to a New Zealand government statement. The agreement will see the UAE remove tariffs on 98.5% of imports from New Zealand, with that figure expected to rise to 99% within three years, as well as making “commitments” that provide “greater certainty” for New Zealand exporters, the statement said.

By the numbers: Trade between the two countries came in at NZD 1.3 bn (USD 813.5 mn) in the year to June 2024, with the UAE mostly importing dairy and industrial products, and getting exports in the form of horticulture tourism. New Zealand imported NZD 152 mn of products and services from the UAE in the same period, including plastics, carpets, travel services and glass.

Sectors expected to benefit: Professional services, education services, audio-visual and gaming sectors, engineering and environmental services will all benefit from the agreement, the statement said. The agreement also includes chapters on intellectual property, sustainable development, labor, sustainable agriculture, climate, and indigenous trade.

This was fast: The two countries launched talks for the trade agreement in May.

And is the second trade agreement reached this month: The UAE also finalized a trade agreement with Australia earlier this month.

CALENDAR

SEPTEMBER

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

22-26 September (Sunday-Thursday): Sharjah-Europe Businesswomen Forum, Brussels.

24-26 September (Tuesday-Thursday): Careers UAE 2024, Dubai World Trade Centre, Dubai.

24-26 September (Tuesday-Thursday): Gulfood Green, Dubai World Trade Centre, Dubai.

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

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

24-30 September (Tuesday- Monday): 79th session of the UN General Assembly (UNGA 79), 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