ADX to see three more IPOs this year

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Adnoc to pull the trigger on Covestro takeover this week? + More good news for our AI ambitions

Good morning, wonderful people. We’re back to the regular news dump of the fall season, with news of a new ADX IPO, IRH planning investments in South Africa, and Adnoc Drilling expediting its drilling plans in Abu Dhabi.

ALSO- We have an exclusive with ADX CEO Abdulla Alnuaimi, who told us what else is in store for the ADX for the rest of the year — more IPOs, a new index, and tokenized bonds are on the cards — and what his priorities are for the exchange. Let’s dive in.

WEATHER- The bouts of rain seem to be giving way to sunshine in Dubai today, with temperatures expected to hit 38°C, before cooling to an overnight low of 31°C. Over in Abu Dhabi, expect lots of sun and temperatures to hit 35°C, before cooling to 31°C overnight.

WATCH THIS SPACE-

#1- Adnoc to pull the trigger on Covestro takeover this week? That’s according to the Wall Street Journal, who quotes sources as saying that the company is set to announce the takeover agreement this week if no snags disrupt their plans. The state-run oil firm was said to be finalizing a formal bid of around EUR 14.4 bn, including debt, to acquire German chemicals company Covestro, last month. Adnoc’s CEO Sultan Al Jaber reportedly touched down in Germany in August to wrap up negotiations.

Remember: Adnoc said in June that it was ready to raise its takeover bid to EUR 62 per share, giving Covestro a potential valuation of EUR 11.7 bn. This came after revising its offer three times during the talks, which have been ongoing for over a year. Adnoc was reportedly nearly done with due diligence in August.

#2- Also reportedly nearing an acquisition: ADX-listed PureHealth, which is said to be pursuing the acquisition of the largest hospital operator in Greek and Cyprus, Hellenic Healthcare Group, Gulf News reports, citing unnamed market sources. The healthcare giant will be buying CVC’s stake in Hellenic for an undisclosed sum. This would mark PureHealth’s second European expansion after acquiring the UK healthcare operator Circle Health Group for USD 1.2 bn.

#3- Morgan Stanley sees casinos in the UAE potentially generating USD 3-5 bn in gaming revenue annually, supported by the UAE’s busy airports, high population of high-net-worth individuals, and concentration of five-star hotels, it said in a note picked up by media outlets (here, here, and here). However, achieving these figures is dependent on whether locals are allowed to gamble and the long-term impact of geopolitical tensions in the region, the investment bank said.

REMEMBER- The UAE issued a regulatory framework for the gaming sector last July as the country makes a push in the sector, though it still has yet to clarify regulations around gambling. Still, gaming establishments are already underway, with Ras Al Khaimah set to welcome the region's first gaming resort, the USD 3.9 bn Wynn Al Marjan Island Resort, by 2027, and Las Vegas entertainment giant MGM Resorts applying for a license to run casino operations in Abu Dhabi.

#4- District cooling firm Empower received board approval to obtain a three-year unsecured loan to refinance outstanding debt of AED 2.75 bn, according to a DFM disclosure (pdf).

Not the only UAE firm to refinance its debt: AD Ports Group has also recently agreed with two UAE banks to refinance a USD 2.25 bn loan. This came on the heels of the Central Bank of the UAE cutting the overnight deposit rate by 50 basis points to 4.90% from 5.40% last month, following in the footsteps of the Fed. The move allowed the company to capitalize on lower rates by securing longer loan tenors at more competitive rates.

#5- DIFC to roll out expansion plan in 2025: Dubai International Financial Centre (DIFC) is set to unveil “significant expansion plans” by the end of next year that will be implemented over the next three to four years, DIFC’s Chief Business Development Officer Salmaan Jaffery told Bloomberg (watch, runtime: 6:03). The expansion is poised to meet the demand inflows for DIFC office space, Jaffery said, noting that the center aims to deliver “new real estate products as well as new capacity.”

REMEMBER- Occupancy levels at DIFC-owned properties remained high at 99.6% in 1H 2024. The center welcomed 820 new companies in 1H 2024, up 24% y-o-y.

ICYMI- DIFC has been planning to add 1.6 mn sq ft of A-grade commercial space in the next three years to address high demand, after inaugurating DIFC Innovation One in 1Q 2024, adding over 200k sqft of space. The center also plans to launch a DIFC Funds Center in 1Q 2025, offering hedge fund spinouts, fund platforms, and boutique asset management firms.

#6- US eases AI chip shipments to MENA data centers: The US Commerce Department introduced a new rule set to make it easier for data centers in the Middle East to receive shipments of AI chips, the US Commerce Department said in a statement. The new rule enables data centers to receive chips under a general authorization by applying for a validated end user status, rather than requiring individual licenses from their US suppliers.

The rule will require data centers to undergo a rigorous review process to make sure safeguards are in place to ensure the safe use of US technology, the Commerce Department said in a statement.

What could it mean for the UAE? This may help state-owned AI outfit G42 — which operates data centers — receive US tech exports without additional hurdles. The company should be receiving large-scale AI components from Microsoft as part of the second phase of US tech giant’s USD 1.5 bn investment in G42, which required licenses from the US government. The UAE has already started receiving Nvidia chips as part of the partnership after the US approved their sale earlier this year, and after the two sides agreed on safeguards like the use of US defense tech to prevent potential breaches amid heightened tensions between the US and China.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- You’ll be paying less at the pump this month: The Fuel Price Committee reduced fuel prices for October by about 8%, following a 6% price decrease last month, according to an X post by the Emirates General Petroleum Company. The breakdown for one liter:

Super 98: AED 2.66;
Special 95: AED 2.54
E-Plus 91: 2.47,
Diesel: AED 2.60

Taxi fare prices in Ajman are dropping in tandem to reach AED 1.75 per km, according to an X post. This is a five fils reduction from September’s AED 1.8 per km fare.

#2- Investors and companies can now access real-time updates on all commercial licenses for companies across the seven emirates, courtesy of a new National Economic Register (Growth) platform launched by the Economy Ministry, Khaleej Times reports. The platform serves as the largest economic database in the UAE, featuring information on over 4k economic activities, including business license authenticity and market trend analyses.

#3- REMINDER- Drivers in Ajman need to be careful with violations like mobile phone usage and failure to wear seatbelts. Starting today, October 1, the emirate has launched a smart monitoring system to detect these violations, Ajman police stated in an X post.

#4- Dubai's Road and Transport Authority inaugurated a new two-lane bridge on Al Khail Road, located between the intersections of Al Khamila and Hessa Street, Khaleej Times reports. This bridge is designed to accommodate up to 3.2k vehicles per hour and aims to ease traffic congestion towards Deira.

#5- Ras Al Khaimah Police will be launching 20 smart gates, providing real-time updates on weather and road conditions, integrated with the main operations room for continuous traffic monitoring, according to an X post. They will also feature AI-powered cameras for immediate incident reporting, with installation currently underway.

#6- Emirates Airlines extended the suspension of flights between Dubai and Beirut until 8 October, according to an Emirates travel update. Passengers traveling to Beirut through Dubai will be barred from taking their flights at their point of origin.

#7- Local orgs can now access World Bank advisory services online: The Finance Ministry launched a World Bank’s advisory page on its website, providing local organizations with access to the Bank’s advisory services and it allows them to monitor the status of their requests, Wam reports.

#8- UAE residents registered in the unemployment ins. system can now collect their unemployment ins. payments from any of Al Fardan Exchange’s 87 branches nationwide, according to a press release. The service, launched under a partnership between Al Fardan and Dubai Ins., is available for customers in the unemployment ins. system, which provides financial support to employees who have been registered for at least 12 continuous months and lost their jobs unexpectedly. The partnership makes Al Fardan the first exchange in the UAE to offer such ins. payouts.

DATA POINTS-

#1- The CBUAE saw strong demand for its September M-bill issuance, which raised AED 11.6 bn after seeing its four tranches oversubscribed, according to CBUAE data (pdf). The breakdown:

The 266-day tranche was 2.57x oversubscribed, attracting AED 10.26 bn in bids at an average yield of 4.49%;
The 28-day tranche was 1.18x oversubscribed with bids worth AED 4.27 bn, at a 5.04% yield;
The 70-day tranche was 1.67x oversubscribed, with bids worth AED 2.5 bn and a yield of 4.95%,
while the 98-day tranche drew AED 4.98 bn in bids at a 4.88% yield, with an oversubscription rate of 1.99x.

HAPPENING TODAY-

#1- Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan is heading to Qatar today on an official visit to meet Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani and other senior Qatari officials, according to the Abu Dhabi Media Office.

#2- The Dubai World Trade Centre will host the Water, Energy and Environment Technology Exhibition 2024 from 1-3 October. Organized by the Dubai Electricity and Water Authority, the event will focus on advancements in cybersecurity, digital transformation, and sustainability, showcasing the latest technologies and solutions to enhance digital and environmental security.

HAPPENING THIS WEEK-

#1- The Dubai World Trade Centre will host the World Green Economy Summit from 2-3 October 2024. Organized by the Dubai Supreme Council of Energy, Dubai Electricity and Water Authority, and the World Green Economy Organization, the event will focus on green finance and sustainable development, highlighting global efforts to increase climate resilience and bolster international cooperation.

#2- The Sport Industry Forum kicks off on 2 October at NYU Abu Dhabi, according to a press release (pdf). The two-day event will gather over 300 leaders from the global and regional sports sectors to discuss the future of sports in the UAE.

#3- The Mena Cool Forumwill take place on 2 and 3 October, at the Mövenpick Grand Al Bustan in Dubai. The forum will facilitate discussions on the selection strategies between district cooling and conventional HVAC systems. It will cover new developments, policies, project reviews, innovations, regional updates, and decarbonization efforts.

#4- The Mövenpick Grand Al Bustan in Dubai will also host The Future FoodForum 2024 on 2-3 October. The event focuses on food, consumer behavior, and the government’s role in the food and beverage sector.

THE BIG STORY ABROAD-

Israel’s launch of a ground invasion in southern Lebanon is dominating front pages in the foreign press, after the Israeli military said it will be carrying out “limited” ground raids against Hezbollah targets in the area. In the meantime, aerial attacks continued through the night in Beirut’s suburbs, with at least 95 killed in the past 24 hours. (Reuters | Bloomberg | NY Times)

The strikes yesterday also killed Hamas leader Fateh Sherif Abu El Amin, Hamas confirmed.

It’s quiet over in the business press, though two stories are grabbing headlines:

#1- US Federal Reserve Chair Jerome Powell said that the Fed is not “in a hurry” to cut interest rates, hinting that the central bank will go for two 25 bps rate cuts in its next meetings as previously projected. (Reuters)

#2- CVS Health could potentially split its ins. and retail units, amid escalating pressure from investors to boost its performance, Reuters reports. This would effectively unwind CVS’ USD 70 bn takeover of healthcare insurer Aetna in 2017.

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ADNH Catering plans to sell 40% stake in ADX IPO

Abu Dhabi National Hotels (ADNH) is planning to offer up to a 40% stake in an IPO on the ADX for its catering business, ADNH Catering, this month, according to a prospectus (pdf) published yesterday. ADNH will be offering their shares in the IPO.

We knew this was coming: ADNH tapped Citigroup and First Abu Dhabi Bank (FAB) to work on the planned IPO for ADNH Catering back in July.

The book-building process starts next Monday, 7 October, with the subscription period for retail investors wrapping on 14 October. Institutional investors’ subscription period will wrap a day later, on 15 October. Shares are expected to begin trading on 23 October, according to the prospectus.

The IPO is set to be priced on 7 October, with the range determined by the success of its book-building process.

The breakdown: Some 90% of the shares on offer will be allocated to institutional investors, while 9.83% will go to retail investors, and 0.17% will go to ADNH employees. Up to 10% of the company’s shares are also offered on a preferential basis to existing shareholders who subscribe to the offering,

More on ADNH Catering: ADNH owns 12 hotels in the UAE — including the Ritz Carlton and Park Hyatt in Abu Dhabi — and also manages three other hotels, its website says. The catering unit is the country’s largest provider of food services, cleaning and support services, and manpower supply. It serves hospitals, workplaces, universities and schools.

The company is looking to tap into the KSA market, where it currently operates via its JV with Compass Group, ADNH Compass, in which it bought out the remaining stake for AED 227 mn back in March. “We see the Kingdom of Saudi Arabia as a particularly compelling growth [window] for ADNH Catering, where we plan to build on our experience and track record across various sectors in the UAE to support clients across the country,” ADNH Catering CEO Clive Cowley said in a separate statement (pdf).

ADVISORS- FAB, Emirates NBD Capital, and Abu Dhabi Commercial Bank (ADCB) are acting as joint lead managers and joint bookrunners, with Citigroup and FAB also acting as joint coordinators. FAB is also the listing advisor and lead receiving bank of the IPO, with Abu Dhabi Islamic Bank, ADCB, Emirates NBD, and Emirates Islamic Bank acting as receiving banks.

REMEMBER- This would be the ADX’s fourth listing this year: ADNH Catering’s listing follows NMDC Energy’s AED 3.22 bn IPO earlier in September and edtech firm Alef Education’s AED 1.89 bn IPO in June. Earlier in May, Agility Global had a technical listing on the ADX in May, and quadrupled on its debut.

There’s more in the ADX pipeline:

LuLu Group is planning to list its shares on the ADX and Riyadh’s Tadawul by the last week of October or early November;
Alpha Data could tap the bourse this year;
Etihad Airways has tapped advisors for what could be the Gulf’s first airline IPO next year.

ADX gears up for three IPOs, new index launch, and tokenized bonds by year-end

ADX anticipates three new IPOs in 2024: The Abu Dhabi Securities Exchange (ADX) is gearing up for three new IPOs in 2024, following a successful year in which six IPOs made headlines in 2023, with three ranking among the “top 20” globally in terms of value and subscriptions, ADX Group CEO Abdulla AlNuaimi told EnterpriseAM UAE on the sidelines of Portfolio Egypt. One IPO is already underway, with two more expected by year-end, he added. (For a refresher on the ADX’s IPO pipeline, read our IPO Watch, above.)

The ADX is already nearing its target market cap of AED 3 tn, with the market cap currently hovering at AED 2.9 tn, he told us. The ADX had set the AED 3 tn target two years ago, he added.

Local investors have the largest share of trading activity, he said. In daily trading, institutional investors represent 80%, while retail investors account for 20%. Foreign investors are also more active on the exchange as opposed to Arab investors due to the inclusion of ADX stocks on indices like MSCI and FTSE, he said.

A focus on investor relations + roadshows: Ongoing strategies to reel in more investors include launching awareness campaigns and roadshows in locations such as New York and London, alongside improving ADX-listed companies’ visibility. The exchange is also making investor relations a key focus, in a bid to improve companies’ communication with investors and encourage them to communicate directly with their investors.

New index to launch this year? AlNuaimi confirmed plans for a new index launch by late 2024 or early 2025, without disclosing the nature of the index. Currently, 12 indices trade on the ADX, including an ESG index developed in late 2023 through a partnership with FTSE Russell.

REMEMBER- The ADX is currently working on developing an Islamic index, which will include an endowment shares service to donate shares for charitable causes.

Next up: Tokenization. The exchange is now working with HSBC towards launching the first tokenized bonds by year-end, Alnuaimi said.

International Resources Holding inks partnership to invest in South African logistics and clean energy assets

IHC to up its investment in South African assets: Abu Dhabi-based International Resources Holding (IRH), a subsidiary of the UAE’s International Holding Company, partnered with South Africa’s Public Investment Corporation (PIC) to invest in green energy, rail infrastructure, and mining in South Africa, according to a statement. PIC is Africa’s largest asset manager, holding some USD 169 bn in assets across the mining, agriculture, manufacturing, real estate, and financial services sectors.

The partnership will focus on:

Bringing undeveloped mining assets to full production capacity;
Offsetting the energy production capacity of coal-fired thermal plants scheduled to be decommissioned in a bid to reduce greenhouse gas emissions;
Boosting the country's export capacity by ironing out bottlenecks across key mining corridors leading to the Richards Bay, Saldanha, and Durban ports;
Establishing an AI geoscience venture to conduct geological surveys and research to identify new mining prospects.

IN CONTEXT- South Africa’s state-owned logistics company, Transnet, has been facing challenges like equipment shortages and maintenance delays, largely stemming from years of insufficient investment, with severe inefficiencies at the country’s ports.

REFRESHER- IHC is ramping up efforts to secure critical metal supplies from Africa, acquiring a 51% stake in Zambia’s Mopani Copper Mines for USD 1.1 bn in April. Though it withdrew a bid for Vedanta's 51% stake in Zambia's Konkola Copper Mines, the company is eyeing EMR Capital’s 80% stake in Zambia’s Lubambe Copper Mine and is in advanced talks to mine nickel in Burundi, along with metals in Tanzania and Kenya. IHC is also focusing on renewable energy in mining, planning to use solar power at iron ore sites in Angola, with USD 1 bn in mining acquisitions expected this year.

Adnoc Drilling’s Turnwell is plans acceleration of drilling program

Adnoc Drilling’s JV with SLB and Patterson-UTI is now online: Adnoc Drilling has inked final agreements with US-based tech company SLB and land drilling firm Patterson-UTI Energy to form its new Turnwell JV, following the “successful start-up and operational delivery” of the first wells in the campaign, according to two separate statements (here (pdf) and here). “Unconventional” here refers to oil and gas resources trapped in subsurface reservoirs that require additional technology to unearth.

REMEMBER- Adnoc Drilling had set up the new company to recover unconventional energy resources across 144 wells in the UAE under a USD 1.7 bn contract handed out by the parent company, Adnoc, in May. Abu Dhabi alone is estimated to hold some 220 bn barrels of unconventional oil and 460 tn cubic feet of unconventional gas, Adnoc Drilling said at the time.

The JV is set to accelerate the drilling works for the 144 wells planned to be delivered as part of the program, with a “significant” number of additional wells expected to be added in its second phase, the statements said. The JV will use batch drilling to accelerate drilling works, the statement said.

Who owns how much in Turnwell? Adnoc Drilling holds a 55% stake in Turnwell, which serves as its unconventional drilling arm. SLB owns 30% and Patterson-UTI holds the remaining 15% of the JV. Patterson-UTI will provide its unconventional drilling and completion services in exchange for its minority stake. The US drilling firm will also provide a modest all-cash sum to help cover its needed working capital.

Enersol will pitch in: Enersol, a JV between Adnoc Drilling and Alpha Dhabi Holding, will support the expedition of the project through its subsidiary Gordon Technologies, which will provide measurement while drilling (MWD) tech to shorten drilling time, enhance well-bore quality and boost overall drilling efficiency.

REMEMBER- Enersol raised its stake in Gordon to 64.2% for USD 270 mn earlier in September.

The JV will reflect positively on Adnoc Drilling’s financials as of 2025, the statement added.

Podeo secures USD 5.4 mn for global expansion

Podeo closes series A funding round: Dubai-based podcast platform Podeo raised USD 5.4 mn in a series A funding round, led by Dubai-based VC Oraseya Capital, the VC arm of Dubai Integrated Economic Zones Authority, according to a press release (pdf). The funding round saw participation from Ibtikar Fund, Cedar Mundi Ventures, Samarium, iSME, and Razor Capital.

Where’s the money going? Podeo plans to use the funding to accelerate its expansion, targeting emerging markets like Latin America, Eastern Europe, and Southeast Asia, founder Stefano Fallaha told TechCrunch. The platform plans to eliminate creator subscription fees, providing podcast hosting and distribution at no charge to help creators boost their discoverability. The funds will also enhance AI-driven services and expand podcast product offerings.

About Podeo: Founded in 2020 by Fallaha (LinkedIn), Anthony Essaye (LinkedIn), and Mario Hayek (LinkedIn), Podeo is a podcast app that helps creators distribute and monetize their content audio across various platforms, including radio, airlines, ride-hailing services, gaming, and chat apps. The app currently hosts over 100k creators, with a global listener base of over 50 mn.

National Bank of Fujairah + Abu Dhabi’s Reem Mall name new CEOs

The National Bank of Fujairah (NBF) named Adnan Anwar (LinkedIn) as the bank’s new CEO effective today, following the resignation of former CEO Vince Cook, according to an ADX disclosure (pdf). Anwar enters the role with some 20 years of experience at the bank, having served as NBF’s deputy CEO for four years and previously as CFO for 15 years.

Abu Dhabi’s Reem Mall has appointed Nadia Akil (LinkedIn) as the mall’s new CEO, starting 1 January 2025, according to a press release. Akil enters the role with 12 years of experience heading United Projects for Aviation Services Company (UPAC), a subsidiary of warehousing firm Agility, where she oversaw the completion of the USD 1.3 bn Reem Mall. Akil also held various senior positions at Agility and Citigroup.

AD Ports’ Maqta Gateway + Presight team up for AI-powered logistics solutions

LOGISTICS-

Maqta Gateway + Presight AI to deliver AI-driven trade and logistics solutions in the UAE: AD Ports Group’s Maqta Gateway has inked a partnership agreement with ADX-listed data analytics firm Presight AI to develop AI-powered digitized solutions for trade and logistics, according to a statement. The two companies will work together on the development and commercialization of AI and data analytics solutions for the trade of goods across ports, the statement said.

REAL ESTATE-

#1- Amis hands Woodland Residences construction contract to Dar Al Aayan: Dubai-based real estate developer Amis Properties awarded a contract to Dar Al Aayan Contracting to build its AED 425 mn Woodland Residences project, according to a press release. The project is located in District 11 of Meydan, and is scheduled for delivery in April 2026.

#2- Alef launches AED 2.5 bn Sharjah development: Sharjah-based real estate developer Alef Group launched a AED 2.5 bn residential project, Olfah, in Sharjah, according to a press release. The development features 12 buildings housing one- to three-bedroom units, as well as Sharjah's largest private community park. The project’s construction and delivery timelines were not disclosed.

M&A-

EGA completes US recycled aluminum manufacturer takeover: Mubadala-backed Emirates Global Aluminium (EGA) finalized its acquisition of an 80% stake in US-based aluminum recycling company Spectro Alloys, after inking an equity purchase agreement for the transaction back in August, according to an EGA statement. The value of the transaction was not disclosed.

HOSPITALITY-

#1- IHG Hotels signs franchise agreement for the world’s tallest hotel tower: UK-based IHG Hotels and Resorts inked a franchise agreement with Dubai-based property development and asset management firm The First Group to launch the tallest all-hotel tower in the world Ciel next year, according to a press release. The property will be part of IHG’s Vignette Collection.

#2- Omniyat unveils AED 7 bn Alba hotel: Dubai-based developer Omniyat launched the Alba Hotel and Residences, a 95-key luxury beachfront development valued at AED 7 bn, according to a press release. Designed by Zaha Hadid, the hotel will be located on Dubai’s Palm Jumeirah and will be managed by UK-based Dorchester Collection. The project is slated to open in 2028.

FINTECH-

#1- Amazon Payment Services will integrate Mastercard Gateway payment processing solution into its platform across the UAE, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, and South Africa under a new multi-year partnership between the two, according to a statement (pdf).

#2- SME merchants using payment solutions provider Magnati will be able to access credit facilities from RakBank under a freshly-inked agreement between the two to launch a merchant financing platform, Wam reports. The platform will streamline the loan application process and allow automatic repayment deductions to be made from daily payouts. The platform will cover business loans, invoice financing, equipment financing, POS financing, receivables financing, and ins.

BANKING-

EDB + Adib partner to support SME financing: Emirates Development Bank (EDB) and Abu Dhabi Islamic Bank (Adib) entered into a partnership aimed at boosting financial support for UAE-based SMEs under a joint finance guarantee scheme, according to a press release. The partnership will see EDB guarantee up to 50% of the financing provided by Adib to SMEs, primarily geared towards firms in key sectors such as manufacturing, food security, advanced tech, healthcare, and renewables.

Background: The partnership builds on EDB’s existing Credit Guarantee Scheme, which has provided AED 1.58 bn in financing to SMEs since its launch in April 2021. With Adib’s collaboration, EDB aims to reach AED 30 bn in SME financing by 2026.

DEBT-

Chalhoub Group taps Emirates NBD for SAR 100 mn loan: Luxury products retailer Chalhoub Group secured a loan agreement from Emirates NBD for SAR 100 mn to finance its sustainability targets and net-zero action plan, according to a press release.

BUSINESS-

The Emirates Entrepreneurship Association inked an MoU with Mappable to facilitate entrepreneurs' and SMEs' access to the company’s digital mapping solutions, according to a press release.

EDUCATION-

Dubai-based 01Edu expands in Egypt: Learning platform 01Edu partnered up with the USD 41.2 mn educational initiative NextEra Education to integrate AI into the Egyptian educational system, according to the Head of 01Edu Middle East Walid Tarabih’s post on LinkedIn.

China’s stock market is now in bull territory as stimulus package drives extended rally

Buoyed by last week’s stimulus package, Chinese equities are on a tear: Chinese equities had their best day in 16 years yesterday, after “fevered trading” saw the country hitting CNY 1 tn-worth of shares traded in the shortest amount of time in its history. Chinese markets closed up 8% yesterday and will now be closed for a weeklong holiday until next Tuesday as the country celebrates its 7-day “Golden Week” of National Day holidays.

In Shenzhen, the ChiNext index — which is tech-heavy — closed up 15.4% yesterday, marking its strongest single-day performance since it was established in 2010. Reuters, Bloomberg, the Financial Times, and CNBC have the story.

(**Tap or click the headline above to read this story with all of the links to our background as well as external sources.)

The single-day performance came as investors continue to ride the wave of momentum from last week’s stimulus announcement, with China’s central bank announcing it is rolling out broad monetary stimulus measures to jumpstart the country’s faltering growth, including slashing a key short-term interest rate and lowering the reserve requirement ratio (RRR) to its lowest point since 2018. Critically, the stimulus package also sought to address China’s flagging property market by reducing borrowing costs on USD 5.3 tn worth of mortgages and lowering down-payment requirements for second homes.

Bull market territory? Yesterday’s jump extended a rally that now puts China’s CSI300 blue-chip index nearly 30% above its lowest performance in February, with the majority of that jump — around 25% — happening in the past week since the rollout of the stimulus package. Although in percentage terms, the stock market’s performance is in bull market territory, some analysts are hesitant to characterize it as a bull market because such a large portion of the gains materialized in such a small period of time.

Not having as good of a time: Quant funds. China’s quant funds are struggling to keep up with margin calls as the equity rally puts pressure on their liquidity, according to Bloomberg. “When the surge in index futures exceeded gains in the underlying stocks on Friday, it imposed paper losses on some quants’ hedging positions … When brokerages closed the short positions, they pushed the index futures further up along with investors [expecting] a further rally, worsening the short squeeze,” the business information service said, citing an asset management player.

MARKETS THIS MORNING-

It’s holiday season: With South Korean, Hong Kong, and Chinese markets all closed for holidays, Japan’s Nikkei is alone in rebounding 1.7% after slipping in trading yesterday. Mainland Chinese markets are closed for the entire week, but the rest will be back to work tomorrow.

Meanwhile, Wall Street futures are flat after the S&P 500’s record close for September.

ADX	9,425	-0.5% (YTD: -1.6%)
DFM	4,503	-0.4% (YTD: +10.9%)
Nasdaq Dubai UAE20	3,860	-0.8% (YTD: +0.5%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.8% o/n	4.0% 1 yr
TASI	12,226	-0.4% (YTD: +2.2%)
EGX30	31,587	+0.4% (YTD: +26.9%)
S&P 500	5,762	+0.4% (YTD: +20.8%)
FTSE 100	8,237	-1.0% (YTD: +6.5%)
Euro Stoxx 50	5,000	-1.3% (YTD: +10.6%)
Brent crude	USD 71.77	-0.3%
Natural gas (Nymex)	USD 2.90	-0.9%
Gold	USD 2,655	-0.2%
BTC	USD 63,662	-3.4% (YTD: +50.9%)

THE CLOSING BELL-

The ADX fell 0.5% yesterday on turnover of AED 1.9 bn. The index is down 1.6% YTD.

In the green: Taqa (+10.7%), Abu Dhabi National Hotels (+4.7%) and Modon Holding (+4.1%).

In the red: Fujairah Building Industries (-9.9%), Bildco (-7.9%) and Emirates Stallions Group (-6.0%).

Over on the DFM, the index fell 0.4% on turnover of AED 458.3 mn. Meanwhile Nasdaq Dubai closed down 0.8%.

CORPORATE ACTIONS-

Agility Global’s liquidity provision agreement with BHM Capital expired on 30 September, and will not be extended for another term, according to a DFM disclosure (pdf).

UAE, Paraguay explore cooperation on renewables, investment + Sudanese army denies bombing of UAE ambassador’s residence

UAE, Paraguay discuss cooperation at UN: Foreign Affairs Minister Sheikh Abdullah bin Zayed Al Nahyan met with his Paraguayan counterpart Rubén Ramírez Lezcano on the sidelines of the UN General Assembly (UNGA) in New York, Wam reports. Their discussions focused on the UNGA agenda and explored opportunities for bilateral cooperation in economics, investment, and renewable energy.

ALSO FROM UNGA- The UAE inked an MoU with Guyana to allow travel without visas between the two nations, according to a ministry statement.

The Sudanese army denied accusations of bombing the UAE ambassador's residence in Khartoum, emphasizing that it has no intention of targeting diplomatic missions and United Nations agencies, it said in a Facebook post. The army shifted the blame towards the Rapid Support Forces. This came in response to the UAE blaming the Sudanese army for the attack and the extensive damage done to the embassy’s building.

ALSO WORTH KNOWING-

Abu Dhabi opens Solomon Islands embassy: Trade Minister Thani bin Ahmed Al Zeyoudi and Solomon Islands Prime Minister Jeremiah Manele officially inaugurated the Oceanian nation’s embassy in Abu Dhabi yesterday, marking the launch of the Solomon Islands' diplomatic mission in the UAE. (Wam)
UAE provides water aid in Gaza and directs USD 100 mn relief to Lebanon: The UAE distributed potable water and water tanks to medical points and areas of displacement in Khan Yunis in Gaza, as part of Operation Chivalrous Knight 3, Wam reports. The UAE also directed a USD 100 mn relief package to Lebanon, Wam reports separately.

CALENDAR

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.

2-3 October (Wednesday-Thursday): Future Food Forum, Le Méridien Dubai Hotel & Conference Centre, Dubai.

3-5 October (Thursday- Saturday): MeFitProConference and Exhibition, Dubai World Trade Centre.

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

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

7-9 October (Monday-Wednesday): AccessAbilities Expo, Dubai World Trade Centre.

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.

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 October (Thursday): Game Changers - Dubai Real Estate Summit, Coca-Cola Arena, 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

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

28 April-1 May (Monday-Thursday): The Arabian Travel Market 2025, 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.

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