Alec moves forward with IPO plans

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Another DFM IPO this year?

Good morning, lovely people. It’s a busy morning in the UAE, with news of another Dubai IPO making progress, the completion of a key acquisition by Abu Dhabi-backed RedBird IMI, and fresh macro figures on Dubai and Sharjah.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- WEATHER- The National Center of Meteorology forecasts a gradual temperature rise from today to Wednesday. In Abu Dhabi, mercury will hit 37°C today and tomorrow, cooling to an overnight low of 24°C. The heat will peak at 42°C on Wednesday. Dubai’stemperature will be slightly milder, rising to 35°C today and tomorrow, with a peak of 37°C on Wednesday. Overnight lows in Dubai will range between 24-23°C over the next three days.

#2- Adjusted truck hours in Dubai: Dubai's Roads and Transport Authority has amended truck ban hours on Sheikh Mohammed bin Zayed Road, specifically in the section between Ras Al Khor Street and Sharjah in both directions, it said on X. Trucks will be restricted from the road from 6:30-8:30am, 1-3pm, and 5:30-8pm. Truck drivers can use alternative routes, including Emirates Road, during restricted times.

#3- The Dubai Metro’s rain-impacted Onpassive, Equiti, and Mashreq stations resume operations starting today, according to the Dubai Roads and Transport Authority. The Energy Metro Station will reopen next week.

#4- More than 400 scholarships are up for grabs for exceptional Emirati students in nine Dubai private schools, thanks to a collaboration between the Knowledge and Human Development Authority (KHDA), the Knowledge Fund, and nine private schools, according to a statement. The Dubai Distinguished Students Programme will cover 50% of tuition fees for outstanding students in grade 4-10, including Dubai International Academy, Uptown International School, Dubai Heights Academy, and Dar Al Marefa School. Eligibility criteria can be found here, and the deadline to apply for a scholarship is 5 June.

#5- Applications for the Culture Ministry’s latest National Grant Programme for Culture and Creativity are open until 1 June, state news agency Wam reports. The program, which launched in 2023, supports Emirati creatives across several fields — including books and literature, music, film and TV, and performing arts and theater — in a bid to ramp up their exposure to local, regional, and international audiences and foster home-grown talent. Professionals can submit their proposals across four categories, with the largest grant offering some AED 100k.

#6-Dubai military personnel can soon file complaints and grievances through a new system established by the Dubai Government Human Resources Department, according to a statement.

WATCH THIS SPACE-

#1- Malaysian resort company Genting Group is considering launching integrated casino resorts in the UAE, with an international tender for a casino-only development in the Middle East unlikely, Genting Chairman Lim Kok said at the company’s annual meeting in April, according to a bourse disclosure (pdf). “The company would be happy to work on an IR development in the Middle East, leveraging the company’s experience in non-gaming offerings,” Thay said.

REMEMBER- The UAE is considering legalizing gambling: The move comes after the UAE established a federal body last September to regulate the gaming industry, signaling a potential shift in its stance on gambling, which is currently illegal in the UAE under Sharia law. Abu Dhabi and Ras Al Khaimah are frontrunners in rolling out casinos ahead of their neighbor Dubai, which reportedly put immediate plans to allow gambling on hold in November.

Not the first integrated resort landing here at home: High-end hotels and casinos developer Wynn Resorts announced its plans to develop a USD 3.9 bn integrated resort in Ras Al Khaimah, which will include gaming areas. The project will be the first integrated gaming resort in the MENA region, and is slated for handover in 2027.

#2-Dubai Investments plans IPO for a subsidiary on the DFM: Dubai Investments expects to exit at least one of its investments this year, potentially through a listing on the DFM, Vice Chairman Khalid Ben Kalban told CNBC Arabia (watch, runtime: 10:11). The company is reevaluating some of its investments and might opt for strategic sales alongside potential listings on the DFM.

#3- Adnoc to open US trading desk: Abu Dhabi National Oil Company (Adnoc) is planning to set up a trading desk in the US as part of its global expansion plans, Reuters reports, citing sources familiar with the matter. The state-backed oil giant is reportedly in the process of tapping senior energy traders to oversee the US expansion. Adnoc launched a trading office in Geneva earlier this month, the sources told Reuters.

ICYMI- The oil giant is mulling a stake acquisition in AmeriGas, the propane distribution unit of US utility holding company UGI Corp, through its subsidiary Adnoc Distribution, a move that would mark Adnoc’s entry into the US market.

#4- Work on Ras El Hekma to kick off sooner than expected: ADQ plans to break ground on infrastructure and construction work for its Ras El Hekma project before the end of the year, Egyptian Housing Minister Assem El Gazzar told Asharq Business, explaining that ADQ has already acquired the the necessary permissions and licenses. ADQ was initially expected to break ground on the project early next year.

ICYMI: Egypt expects to transfer the land for the project to the newly established Ras El Hekma for Urban Development Project Company “in the coming days,” Egyptian cabinet spokesman Mohamed El Homsani said earlier this week.

HAPPENING THIS WEEK-

#1- TheMiddle East Petroleum and Gas Conference kicks off today and runs until Wednesday in Dubai. Hosted by the Emirates National Oil Company and organized by the S&P Global Commodity Insights, the theme of the conference is “Evolving Core Energy Markets within a Sustainable Landscape.”

#2-The Global Prompt Engineering Championship, the world’s biggest AI prompt challenge, will take place today and tomorrow, at the Emirates Towers and the Museum of the Future. The championship's final stage features 30 participants from the fields of art, literature, and coding, selected from thousands worldwide, writes Wam. They will be competing for a grand prize of AED 1 mn.

#2- The International Exhibition of National Security and Resilience2024 Conference is happening on 21-22 May 2024 at Adnec Abu Dhabi, coinciding with the International Exhibition of National Security and Resilience, Wam reports. The conference is set to gather top CEOs, leaders, and experts from different fields to discuss security challenges and promote strategic partnerships.

DATA POINTS-

#1- Sharjah Electricity, Water and Gas Authority connected over 1.1k projects in Sharjah to the power grid in 1Q 2024, with a total capacity surpassing 109 MW, state news agency Wam reports. The authority also approved 1.2k requests to install electric distribution panels for new and existing projects.

#2-The UAE smart building market size is projected to reach AED 500 (USD 113.8 mn) mn by 2028, growing 11.73% y-o-y over the next four years, Mubasher reports, citing a study by Samsung. The value of the global smart building market is anticipated to increase to USD 408 bn, giving the UAE more than a quarter of the global market size.

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THE BIG STORY ABROAD-

One story has captured the attention of the foreign press this morning: Search and rescue operations are underway to find Iranian President Ibrahim Raisi and Foreign Minister Hossein Amirabdollahian after their helicopter crashed in the country’s northwest. Their lives are “at risk,” according to Iran’s state news agency, Irna.

The search is being slowed by poor weather, a contributing factor in the crash. The two were returning from a visit to the border with Azerbaijan, where they inaugurated a dam, media reports suggest.

Business as usual? Iranian Supreme Leader Ayatollah Ali Khamenei says there will be “no disruption to state affairs,” Reuters reports.

The story is everywhere: (CNBC | Financial Times | Bloomberg | AP | Reuters)

The UAE is following the crash “with great concern” and has offered to help with search and rescue operations, according to a a Foreign Ministry statement.

OTHER STORIES on which you’ll want to keep any eye as the week unfolds:

We could see a verdict as early as this week in Donald Trump’s hush-money trial in New York;
Boeing will send two astronauts to the space station tomorrow in the first crew test of its Starliner capsule;
G7 finance ministers and central bankers will meet on Thursday in Italy to chew over the state of the global economy.

CIRCLE YOUR CALENDAR-

The Dubai Business Forum in Beijing, China is set to take place between 21-22 August, Wam reports. Hosted by Dubai Chambers, the event aims to attract foreign direct investments by presenting investment prospects.

TheTiE Women MENA Programme 2024 is now accepting applications until June 2024.The program supports women entrepreneurs across the region with mentorship, financial advice, workshops, and pitch coaching. Winners can earn up to USD 50k at the global finals and USD 25k at the finals in Dubai.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

ICD-backed Alec taps banks ahead of planned IPO

Construction firm Alec is moving forward with its planned IPO, with Dubai’s main investment entity appointing Emirates NBD Capital and JPMorgan Chase as advisors, Bloomberg reports, citing people familiar with the matter. The Investment Corporation of Dubai (ICD) also tapped Moelis & Co to advise on the IPO, which could take place as soon as in 2H 2024, according to the unnamed sources. The exact size and timing of the listing are still under discussion, the sources said.

REMEMBER- ICD had held preliminary discussions regarding a potential IPO of Alec in March.

Alec’s IPO would mark Dubai’s third IPO of the year, and the seventh company to list on the Dubai bourse as part of the government’s privatization plan to list 10 state-owned companies on the bourse. Parkin debuted on the DFM in March, raising AED 1.57 bn.

There’s more in the pipeline: Amanat Holdings is reportedly looking to list either its education or healthcare unit, with reports that its healthcare unit could raise some USD 200 mn as soon as this year. Meanwhile, shisha producer Advanced Inhalation Rituals was said to be eyeing an IPO in 1H 2024. Over on the ADX, edtech firm Alef Education, Etihad Airways, and supermarket chain LuLu group have each tapped banks to advise on their transactions.

Dubai inflation hits six-month high in April

Annual inflation in Dubai reached 3.9% in April, the highest since October 2023, according to figures from the Dubai Statistics Center (pdf). This is an increase from the 3.34% rate recorded in March.

The culprits: Prices of housing, water, electricity, gas, and other fuels — the largest component of the basket of goods and services — increased at the highest pace this year to 6.46% during April, compared to 6.34% in March, while food and beverage inflation decelerated to 2.29% from 3.1%. Price increases from restaurants and hotels have also risen to 2.17% in April from 1.17% during the previous month.

REMEMBER- Fuel prices climbed for the fourth consecutive month in May, marking a seven-month high.

Month-on-month, Dubai’s inflation increased to 0.76% in April, up from 0.24% in March, according to the statistics center’s monthly inflation report (pdf).

RedBird IMI completes acquisition of UK-based All3Media

Abu Dhabi-backed RedBird IMI has completed its acquisition of UK media company All3Media from Warner Bros and Liberty for GBP 1.5 bn, according to a statement. The acquisition was approved by regulators in the US, UK, and Germany. RedBird IMI head and former CNN Global President Jeff Zucker will now chair All3Media's board, with group CEO Jane Turton and COO Sara Geater retaining their roles.

REFRESHER- RedBird IMI finalized an agreement to acquire All3Media from Warner Bros and Liberty earlier in February. The acquisition is the group's fifth and largest acquisition to date, and comes after RedBird IMI formally withdrew its bid to acquire British papers, the Telegraph and Spectator at the start of the month, following months of opposition from the UK government.

About All3Media: All3Media is the largest independent production company in the UK, with 50 production labels and a distribution catalog of over 30k hours under its management. The company has a global presence in the UK, US, Germany, Netherlands, Belgium, and New Zealand, and produces 4k hours annually for several platforms.

ADVISORS-RedBird Advisors acted as financial advisor to RedBird IMI and RedBird Capital Partners, while Gibson, Dunn & Crutcher acted as its legal advisor. JP Morgan acted as financial advisor to Warner Bros and Liberty Global, and DLA Piper acted as their legal advisor.

OTHER M&A NEWS-

Abu Dhab-based electrical equipment manufacturer Electra Investment Holding submitted a voluntary purchase offer for up to a 24.5% stake in Egypt’s Elsewedy Electric, according to a statement (pdf) by Egypt’s Financial Regulatory Authority, which is currently studying the offer.

The details: Electra wants to acquire at least 15% of the company, and has offered to pay a USD 1.05 a pop — marking a premium of c. 11% to Elsewedy Electric’s Sunday share price of EGP 44.41, according to our math. This gives the potential transaction — assuming Electra acquires the full 24.5% stake — a value of USD 558.1 mn.

Current ownership: The Elsewedy family currently holds over 68% of the company’s shares.

Advisors: EFG Hermes is Electra’s sole financial advisor for the transaction, an informed source told Enterprise.

S&P maintained Sharjah’s sovereign credit rating with a stable outlook

S&P Global has maintained Sharjah’s long- and short-term foreign- and local-currency sovereign credit rating at BBB-/A-3 with a stable outlook, the ratings agency said in a statement. S&P also affirmed the emirate’s transfer and convertibility assessment — S&P’s view on the likelihood that a non-sovereign entity could face restricted access to FX, to ensure the sovereign has the ability to meet debt requirements — at AA+.

The rationale: The ratings agency held the ratings steady anticipating “fiscal deficits to gradually narrow over 2024-2027, owing to the government's revenue-enhancing measures, the UAE-wide implementation of corporate tax, and favorable economic growth prospects in Sharjah.”

Sharjah faces the risk of a downgrade “if net general government debt [continues] to rise, for example due to delays in implementing the fiscal consolidation plan or weaker economic growth. This could then further increase the government's already high debt-service costs,” the ratings agency said.

The ratings agency has revised its forecast for the emirate’s GDP growth in 2025 and through 2027 on the back of “strong private-sector activity,” according to S&P. The ratings agency maintained its growth outlook for 2024 at 2.5%, but said it expects the emirate’s GDP to grow at a 2.7% clip in 2025, 3.0% in 2026, and 3.0% in 2027. This is an upgrade from the previously penciled in 2.0% growth forecast for each of 2025 and 2026.

Sharjah’s economy is “relatively diverse,” S&P said, expecting the emirate’s five biggest sectors — construction, wholesale and retail trade, real estate activities, manufacturing, and financial services — to support the growth.

OTHER KEY INDICATORS-

The budget deficit will narrow to 5.7% this year;
Debt will fall to 55% of GDP this year before inching up to 60% in 2027;
GDP per capita is expected to grow between 1.5-2.0% through 2027.

Zero Gravity to launch USD 300 mn EV facility in Abu Dhabi

Zero Gravity + China’s Nanjing Golden Dragon Bus to electrify UAE’s buses: UAE-based AI and tech company Zero Gravity has partnered with China's Nanjing Golden Dragon Bus to manufacture EVs and motors in Abu Dhabi, Al Khaleej reported on Sunday. The project is expected to kick off in three months, Al Khaleej said.

The details: Zero Gravity plans to invest USD 300 mn in a facility that will produce long-range electric buses and vehicles, equipped with advanced safety systems as well as motors to electrify existing vehicles. The project aims to reduce reliance on imported EVs, cut carbon emissions, and support the local economy.

What they said: “Through this large-scale project, Zero Gravity aims to convert bus engines, including school buses, from traditional fuel engines to electric engines, in addition to manufacturing public transport buses and other electric vehicles,” CEO of Zero Gravity Tariq Al Hosani said.

About Zero Gravity: Zero Gravity is an Abu Dhabi-based corporation that offers services including IT solutions, broadcasting, event management, cybersecurity, gifting and printing solutions, security and telecommunications, and civil works, according to its website.

The UAE is electrifying its transportation fleets: The UAE’s DP World and autonomous and electric freight mobility outfit Einride inked an agreement to deploy 100 electric trucks at Jebel Ali Port last week. Abu Dhabi’s Integrated Transport Center (ITC) also inked an agreement with Einride to establish a network deploying 1k all-electric heavy-duty trucks in February.

How Swvl turned profits and boosted its share price in 2023

Since its IPO in 2022, Egypt-founded and Dubai-based mass transit app Swvl has weathered many headwinds. The startup went public on Nasdaq through a special purpose acquisition company (SPAC) merger at a time when blank check firms fell out of favor amid market volatility. The startup saw its share price tumble to below USD 1.00, prompting Nasdaq to send it delisting warnings and Swvl to implement a reverse stock split. The startup, which had been investing aggressively into expansions in Europe and Latin America, also went on a cost-cutting spree and shifted its business model to become profitable within a year.

The reverse stock split worked for its share price: Reverse stock splits reduce the number of shares in circulation, boosting the share price. Swvl’s 1-for-25 reverse split merged 25 ordinary shares into a single share. Its share price has risen 838.9% over the past six months.

It also pursued new investments, agreeing to sell USD 20 mn-worth of new shares in 2022 to an institutional investor in a private placement.

And the restructuring and cost-cutting strategy boosted profitability. The Nasdaq-listed startup turned to the black in 2023, with a net income of USD 3.1 mn, bouncing back from the USD 123.6 mn in net loss in 2022.

We spoke with Mostafa Kandil (LinkedIn), CEO and founder of Swvl, to learn more about Swvl’s turnaround, the strategies it implemented to turn to profitability, and its upcoming expansion plans.

Edited excerpts from our conversation:

Covid-19 and the Russia-Ukraine war hit the startup hard: Swvl lost over 90% of its business due to pandemic-related disruptions, Kandil said. To add salt to the wound, one of its largest investors — an American investor — had huge exposure to Russia and was forced to dump Swvl shares when the Russia-Ukraine war hit. “This had nothing to do with our performance, because everything that we promised, we were delivering on,” Kandil said, adding that they were even “over-delivering.”

The IPO didn’t go exactly as planned: By the time the Securities and Exchange Commission approved Swvl’s SPAC merger — which took eight months — the war had hit and market volatility had been at its peak, Kandil said. The transaction saw an 85% redemption rate, “which means we only received 15% [of the proceeds] we expected to receive,” former CFO Youssef Salem told Enterprise previously.

Plus: Emerging markets, which were Swvl’s largest markets, saw economic headwinds + currency depreciation: “The average currency basket of the markets we had a foothold in was devalued by 60%,” Kandil said.

That is when the layoffs came in. “We realized we needed to be profitable with significantly lower funding than anticipated from the SPAC merger,” Kandil said. The company exited several markets by selling off a number of its subsidiaries and laying off 50% of its global workforce as part of its portfolio optimization strategy.

Dire times call for drastic action: “The company let go of offices and the management team had to take pay cuts,” he added. Some markets it decided to exit indefinitely while others would see operations paused and potentially resumed later, he said.

“We had to exit from countries like Kenya, where we did not see potential to get to 40% margins, the purchasing power was small, and there was constant depreciation of the currency,” he explained. The startup also took the difficult decision of shutting down in Pakistan. “There were constant currency devaluations, the country's outlook was unstable, and we did not foresee an opportunity to get into really high margins there, which was our primary focus,” he said.

Now, its focus is purely on MENA and developed markets. “With the market here [in the region] being cashflow positive, we decided to use the MENA market as a launchpad to other geographies, which we are doing today,” Kandil said. “Our plan is to expand in developed markets like North America and Europe,” he said, adding the GCC to his list.

ICYMI- Before the startup was hit with headwinds, Swvl had expanded into Europe with its acquisition of Barcelona-based mobility platform Shotl. It also took a controlling stake in transit company Viapool, which operates in Argentina and Chile, as well as Mexico’s Urbvan Mobility, and entered Central Europe with its acquisition of German company Door2Door.

The startup had already shrunk its operations in the UAE earlier since it was “very efficient and did not have room for us,” he said, but Kandil said it now plans to expand existing contracts and see more returns from its UAE business.

Its shift towards B2B and B2G also helped: Swvl had initially launched with a B2C business model, but B2B and B2G now comprise over 78% of its business, Kandil said. “The reason for this shift was that we realized our users are taking two daily commutes mostly to work or to school and back home,” he explained. “Our thought process was, what if we do not spend on marketing or retaining users, but rather focus on signing up the entities’ users for commutes instead of onboarding person by person, [and achieve] a better customer lifetime value to customer acquisition cost ratio,” he said. This shift proved very successful, Kandil added.

Swvl now has a diverse portfolio spanning schools, universities, corporates, factories, call centers, and warehouses. Neither one of its industries make up more 20% of its total revenues, Kandil explained,

Swvl’s plan for this year is to reinvest in the business and continue to be cashflow positive in the markets where it operates, Kandil said. “In 2024, we plan to be slightly profitable, while reinvesting in building the team, building sales, and developing the product,” he said. The startup is planning expansions in the Gulf, US, and Europe, and is looking at ways to fund them, he added. “Investors are not expecting Swvl to make meaningful profits at the current scale, but expectations are to scale up while maintaining profitability,” he said.

2025 could be the year Swvl reaps the benefits of its efforts: “We do not expect to post high income gains in 2024 but by 2025 the results should pay off, as we expand and grow the business more,” he said.

Mubadala reports 2023 annual report + Takaful Emarat posts 1Q results

MUBADALA-

Mubadala’s assets under management rose 9.5% y-o-y to AED 1.11 tn in 2023, making it the second largest state fund in Abu Dhabi, after the Abu Dhabi Investment Authority, it said in its annual report (pdf). Mubadala racked up AED 99 bn in proceeds during the year, down 6.6% y-o-y on the back of “divestments of certain legacy assets and capital recycling into priority investment areas.” The state investor’s portfolio split remained relatively stable, with 38% in private equity, 25% in public markets, and 16% in real estate and infrastructure.

Mubadala logged a five-year rate of return of 10.3%, up nearly two percentage points from 8.5% in the previous year. Some AED 30 bn were issued to refinance maturing debt and support the investor’s growth plans, including an inaugural USD 750 mn green bond issuance last October, which was 9.1x oversubscribed.

Mubadala is expected to take a credit hit due to loans to Signa: Mubadala’s Mamoura Diversified Global Holding expects a AED 1.16 bn credit hit on the back of loans issued to the Austrian Signa real estate conglomerate, which filed for insolvency at the end of last year following recent turmoil in European property markets, according to Mamoura’s financials (pdf). Mubadala had filed claims for EUR 713 mn against Signa and its founder, Rene Benko, but the claims were rejected in arbitration proceedings.

The fund shelled out AED 89 bn in sectors including AI, technology, digital infrastructure, life sciences, clean energy, and private credit. Mubadala earmarked USD 2.5 bn to its newly established JV with Apollo Global Management, and USD 1 bn to its JV with Ares Management. It also invested in leading pan-Americas data center company Aligned, in a strategic bid to steer investments towards North America, Asia, and Europe.

TAKAFUL EMARAT-

Takaful Emarat posted a net loss of AED 8.9 mn in 1Q 2024, according to the company’s financial statements (pdf). The ins. company’s revenues increased 77% y-o-y to AED 84 mn, according to the statement.

The company attributed its 2024 net loss to several factors, including struggling margins and high medical claims expenses in the medical ins. portfolio, lower investment returns, unsuccessful tech investments, the termination of a planned merger with Salama, asset revaluations, and bad debt write-offs, a DFM filing (pdf) reads.

ICYMI- Takaful Emarat has kicked off a capital restructuring that will see it increase its capital by AED 185 mn. It has already received in-principle approval from the Central Bank of the UAE.

Revent secures USD 900k in a pre-seed funding round

Dubai-based electronics platform Revent raised USD 900k in a pre-seed round, according to a press release. The round was led by US-based venture capital firm Techstars and a group of angel investors in e-commerce. The funds will go towards constructing a self-service platform for businesses as well as expanding Revent's clientele in Saudi Arabia.

About Revent: Co-founded by Baldeep Singh (LinkedIn) and Dhananjay Choubey (LinkedIn) in 2022, Revent offers pre-owned devices to SMEs on a monthly subscription basis across the UAE and Saudi Arabia. “Revent offers devices at up to 40% lower cost of ownership to businesses compared to traditional options and that is one of the reasons for rapid growth of the company,” Techstars managing director Vijay Tirathrai said.

Dubai crown prince launches AI cluster

AI-

Dubai inaugurates the region’s biggest AI Cluster: Dubai’s Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum has opened the first phase of the Dubai AI Campus cluster at the Innovation Hub in the Dubai International Financial Center, Wam writes. The campus is the region’s biggest AI-dedicated cluster, offering co-working spaces to tech startups, high computing capabilities through Nvidia’s DGX platform, and accelerator programs.

The progress so far: The initial phase of the cluster features over 75 registered businesses. The second phase is anticipated to expand to over 100k sqft, up from the current 10k sqft, accommodating an additional 500 companies and generating over 3k jobs by 2028.

Some of the perks: Companies will be able to form partnerships with the cluster’s leading tech partners including Amazon Web Services, HP, Microsoft, Oracle and Nvidia. Businesses in the cluster will also benefit from the DIFC's new Digital Assets Law, which provides a clear legal framework for the use of digital assets.

HEALTHCARE-

#1- PureHealth launched a mental health platform dubbed Sakina, according to the Abu Dhabi Media Office. The Sakina network will feature 34 satellite clinics, two mental health hubs, two specialized neurodiversity centers, and nine integrated clinics, with over 500 clinical professionals, according to the statement. PureHealth’s AI-enabled app, Pura, will also offer tertiary care provision, and will allow users to monitor and track their health.

#2- Abu Dhabi to scale up emergency medicine: Abu Dhabi’s Department of Health inked an agreement with the International Federation for Emergency Medicine (IFEM) to advance emergency medicine in Abu Dhabi, focusing on swapping up-to-date experiences and technologies, according to the Abu Dhabi Media Office. IFEM inaugurated its first regional office in Abu Dhabi as part of the agreement.

#3- Abu Dhabi’s DoH also inked an agreement with Roche Middle East on the sidelines of Abu Dhabi Global Healthcare Week to develop real-world data collection frameworks in Abu Dhabi, in a bid to ramp up innovation, health services, and treatment available to patients, and strengthen the emirate’s research network, Wam reports. The agreement will see the entities embark on potential evidence-generation activities to monitor rare, priority diseases, and deploy real-world data to study spinal muscular atrophy and Duchenne Muscular Dystrophy in Abu Dhabi.

#4- Attentive Science sets up Abu Dhabi HQ: Non-clinical research organization Attentive Science has established its regional headquarters in Masdar City as part of its global expansion strategy, Wam reports. The research organization cited the Department of Health’s “inviting and very active support,” as well as the rapid growth of the life science ecosystem in Abu Dhabi as key factors in its decision to choose the emirate for its regional HQ.

SUSTAINABILITY-

UAE and China mull clean energy and water cooperation: Dubai Electricity and Water Authority CEO Saeed al Tayer met with a delegation from Chinese state-owned engineering company PowerChina on Friday to discuss cooperation in the energy and water sectors, focusing on renewable energy projects, smart grid solutions, water infrastructure development, and joint R&D initiatives, according to the Dubai Media Office.

ENERGY-

Renewables giant Acwa Power has received the commercial operation certificate to begin operating Phase C of the USD 570 mn 900 MW Shuaa Energy 3 solar project in Dubai — a part of Mohammed bin Rashid Al Maktoum (MBR) solar park in the UAE, it said in a disclosure to Tadawul. Phase C will have a capacity of 300 MW.

REMEMBER- The MBR solar park, which is the world’s largest single-site solar park using the independent power producer (IPP) model, will have a production capacity of 5 GW by 2030 and will help slash 6.5 mn tons of carbon emissions annually upon completion. The project — which will be constructed by India’s Larsen & Toubro’s (L&T) construction arm — is expected to kick off operations in phases between 4Q 2024 and 2026.

A look at ownership: Shuaa Energy 3 is a special purpose vehicle (SPV) set up to develop the fifth phase of the MBR solar park. Dubai state utility Dewa owns a 60% stake and is the sole off-taker of power, while Acwa Power holds a 24% stake. The Gulf Investment Corporation holds the remaining 16%.

CUSTOMS-

Virtual Corridors Cargo Movement System launched in Abu Dhabi: Abu Dhabi Customs has launched the first phase of the Virtual Corridors Cargo Movement System, which will facilitate the movement of duty-suspended goods between customs ports, freezones, and bonded warehouses in the emirate, according to a statement released on Thursday. The first phase covers shipments and goods being transported from Khalifa Port to companies and private customs warehouses established in Khalifa Economic Zones Abu Dhabi (Kezad), according to the statement.

How it works: The system requires input of details about the shipments, including information from the manifest or bill of lading, according to the statement. Once the application is approved, a cargo transfer certificate is issued instantly, and the shipment can be tracked through an electronic customs seal, according to the statement.

BUSINESS-

The Sharjah Chamber of Commerce has inked a MoU with Lithuania to establish the UAE-Lithuanian Business Council, Wam reports. The council aims to boost and bolster bilateral trade between the countries.

PORTS-

#1- Noatum expands into Turkey: AD Ports subsidiary Noatum Logistics has opened a Noatum Maritime office in Turkey, a press release reads. The office will offer integrated services across the maritime operation chain locations in Istanbul and Izmir.

#2-Arabian Chemical Terminals in Abu Dhabi (ACTAD) has kicked off operations at its new chemical tank storage terminal in Khalifa Port, in a bid to assist local industries in importing and exporting liquid chemicals, according to a press release. The terminal features 40 tanks with a total storage capacity of 100k cubic meters, a 500 sqm warehouse for dangerous goods and provisions for drums and IBCs filling, and an independently third-party laboratory for sampling and testing.

TRANSPORT-

#1- The Integrated Transport Centre (Abu Dhabi Mobility) has completed its project to upgrade the Sheikh Zayed tunnel’s lighting system, replacing over 5k interior lights with LEDs, aiming to cut consumption by around 17% and improve operational efficiency to 90%, according to a statement.

#2- Dubai’s Roads and Transport Authority is set to build a 13.5 km multi-use track connecting Al Sufouh to Dubai Hills via Hessa Street, according to an RTA statement. The multifunction track is set to service cyclists, scooter riders, and pedestrians. The project includes widening Hessa Street from two to four lanes in each direction, doubling its capacity to 16k vehicles per hour.

BANKING-

SIB joins Haifin: Sharjah Islamic Bank (SIB) has joined e& tech solutions arm e& Enterprise’s Haifin platform, as part of the bank’s long-term strategy to invest in new banking technologies for improved risk management and security, Wam reports. Haifin uses blockchain and AI to verify trade finance transactions and prevent potential fraud.

REFRESHER- e& Enterprise rebranded its blockchain trading platform UAE Trade Connect to Haifin earlier in March. The platform now has a total of 14 members.

Latest inflation data sends USD rally into reverse

The aftermath of promising inflation data continues: US inflation fell to 3.4% in April after months of higher than expected readings, prompting investors to rethink their forecasts on the Federal Reserve’s upcoming move, writes the Financial Times.

No more hikes: “The inflation data this week meant another rate hike is off the table… now it’s just a matter of time until they start cutting,” Bank of America’s head of G10 foreign exchange strategy told the paper. Traders now expect the Fed to deliver two quarter-point rate cuts in 2024.

The USD reacts: Reignited optimism for a cut has sent the USD rally into reverse, with the greenback expected to record its first down month of 2024.

US stocks are at an all time high: The weakening USD has helped drive up US stock markets, with Wall Street’s benchmark indexes — the S&P 500, Nasdaq and Dow — all hitting record highs last week.

Don’t celebrate yet: “We are at a turning point but we are going to faff around here for some indeterminate period of time, ”a foreign exchange strategist at Société Générale told the FT. Fed chair Jay Powell has said time and time again that the central bank will not cut rates before it ensures that the country is on a sustainable path to 2% inflation — its core target.

MARKETS THIS MORNING-

Asian markets are solidly in the green this morning, tracking last week’s gains on Wall Street, and both US and European equities futures ticked slightly higher overnight.

ADX	9,042	0.0% (YTD: -5.6%)
DFM	4,068	-0.4% (YTD: +0.2%)
Nasdaq Dubai UAE20	3,490	-0.6% (YTD: -9.2%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.0% o/n	5.5% 1 yr
TASI	12,198	0.0% (YTD: +1.9%)
EGX30	27,316	+4.5% (YTD: +9.7%)
S&P 500	5,303	+0.1% (YTD: +11.2%)
FTSE 100	8,420	-0.2% (YTD: +8.9%)
Euro Stoxx 50	5,064	-0.2% (YTD: +12.0%)
Brent crude	USD 83.98	+0.9%
Natural gas (Nymex)	USD 2.63	+5.3%
Gold	USD 2,417	+1.3%
BTC	USD 66,211	-1.1% (YTD: +56.5%)

THE CLOSING BELL-

The DFM fell 0.4% yesterday on turnover of AED 406.4 mn. The index is up 0.2% YTD.

In the green: Dubai Refreshment Company (+15.0%), Aramex (+7.8%) and Watania International Holding (+(4.4%).

In the red: Agility (-10.0%), Al Salam Sudan (-3.2%) and Mashreqbank (-2.8%).

Over on the ADX, the index stayed flat on turnover of AED 963.5 mn. Meanwhile Nasdaq Dubai dropped 0.6%.

CALENDAR

MAY

20-22 May (Monday-Wednesday): Middle East Petroleum & Gas Conference, Dubai.

20-21 May (Monday-Tuesday): The Global Prompt Engineering Championship, Dubai.

21-23 May (Tuesday-Thursday):International Exhibition for National Security & Resilience, ADNEC Centre Abu Dhabi.

24-25 May (Friday-Saturday): Baby Expo, Dubai World Trade Centre.

27-29 May (Monday-Wednesday): Arab Media Forum, Dubai.

30 May (Thursday):Abu Dhabi Family Office Summit, Saadiyat Rotana Resort, Abu Dhabi.

JUNE

1 June (Saturday): Deadline for TiE Women MENA Programme 2024 applications.

2-4 June (Sunday-Tuesday): The World Air Transport Summit and International Air Transport Association (IATA)’s annual general meeting, Dubai.

4-6 June (Tuesday-Thursday): The Hotel Show, Dubai World Trade Centre.

4-6 June (Tuesday-Thursday): INDEX, Dubai World Trade Centre.

4-6 June (Tuesday-Thursday): WORKSPACE, Dubai World Trade Centre.

4-6 June (Tuesday-Thursday): Leisure Show, Dubai World Trade Centre.

5 June (Wednesday): Deadline for Sidara to resubmit or withdraw its takeover bid to John Wood Group.

10 June (Monday) Alpha Dhabi holds shareholder vote on the sale of a 49% stake in Alpha Dhabi Construction to ADQ.

15 June (Saturday): Arafat day, national holiday.

16-18 June (Sunday-Tuesday): Eid Al-Adha, national holiday.

Signposted to happen sometime in 1H 2024:

Spinneys inaugurates its first store in KSA

JULY

7 July (Sunday): Islamic new year, national holiday.

AUGUST

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

SEPTEMBER

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

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

OCTOBER

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

NOVEMBER

11-14 November (Monday-Thursday): ADIPEC, Abu Dhabi.

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

11-14 November (Monday-Thursday): ADIPEC Decarbonisation Accelerator, Abu Dhabi.

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

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.

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

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

Signposted to happen sometime before the end of the year:

Spinneys inaugurates three more stores in KSA

Signposted to happen in 2025:

6-11 April (Sunday-Friday): Geo-Spatial Week 2025, Dubai.
3-4 June (Tuesday-Wednseday): Make-A-Wish International’s Global Wish summit, Abu Dhabi.

Signposted to happen sometime in 2028:

Abu Dhabi to host the 47th Chess Olympiad

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