Anghami and OSN+ are one

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Yet another potential IPO + Shuaa Capital has until the end of the week to finalize bond restructuring

Good morning, wonderful people. We have a packed issue for you this morning as we race towards the end of Ramadan, so let’s dive in.

BUT FIRST- A quick note: We may have been overly excited in our coverage of the private sector holiday notice, and did not mention that there is a chance the private sector only gets a six-day holiday next week. Since the ministry said the holiday would end on 3 Shawwal — whichever day of the Gregorian calendar that might be — Friday, 12 April could be declared a normal working day if Ramadan ends on Monday, rather than Tuesday as forecast.

Private schools, universities, and nurseries are all getting the nine days from Monday, 8 April, to Sunday, 14 April off, the Knowledge and Human Development Authority said.

** So, when do we eat? Maghrib prayers are at 6:39pm in Dubai and 6:42pm in Abu Dhabi, and you have until 4:53am to hydrate and caffeinate ahead of Fajr in Abu Dhabi, and until 4:50am in Dubai.

It’s an M&A-heavy newsday here at home, with not one, not two, but three mergers and acquisitions going through — including OSN+’s merger with Anghami, ADIA’s acquisition of Landmark Dividend, and Borealis’ acquisition of Integra Plastics. Also worth your time: ADIA invests more into private credit | Dubai private schools get green light to hike tuition fees | Retail investors can no longer subscribe to foreign funds.

SMART POLICY- Visa is rolling out three new AI-powered products to prevent risk and fraud, targeting non-Visa card payments, token fraud prevention, and real-time account-to-account payment protection, it said in a statement (pdf). The products — which will be accessible to clients sometime this year — will fall under the credit card company’s Visa Protect suite, comprising some 200 value-added services across five categories.

ICYMI- We recently attended a roundtable with three of Visa’s top risk and fraud officers, who talked us through the most common payment scams, how AI is making it tougher to secure financial transactions, and how it can also be used to fight back.

HAPPENING TODAY-

The UAE’s PMI figures will be out shortly after we hit “send” on this morning’s issue. The non-oil sector expanded at its fastest pace in five years in February, turning in the highest output growth rate since June 2019. We’ll have the full rundown in tomorrow’s edition.

OPEC+ member countries are set to meet later today for their regularly scheduled ministerial monitoring committee meeting. The alliance will take stock of the market and reassess their agreed output cuts.

What the pundits are saying: The committee “is unlikely to recommend any oil output policy changes” after having extended oil output cuts of 2.2 mn bbl / d at its last meeting, Reuters reports, citing five OPEC+ sources. The expectation comes as oil prices have been rising steadily since December, fueled by OPEC+’s voluntary supply cuts, strong demand outlook for 2024, Red Sea tension, which has prompted cargo ships to take the longer and more oil-consuming routes to avoid the Gulf of Aden and Red Sea, writes Bloomberg.

HAPPENING THIS WEEK-

Shuaa bond restructuring deadline pushed: The deadline for negotiations with Shuaa Capital’s bondholders to restructure some USD 150 mn in outstanding bonds, which matured on Sunday, has been extended to the end of this week, as trading remains suspended on the Dubai Financial Market (DFM) due to the asset manager’s failure to file audited financial statements for 2023, a DFM filing (pdf) reads.

Background: Shuaa Capital asked bondholders two weeks ago to restructure some USD 150 mn in outstanding bonds owed by a special purpose vehicle it owns, saying that the “amended terms and conditions” have already been agreed by 25% of bondholders.

WATCH THIS SPACE-

#1-Enercap eyes potential listing: Energy storage player Enercap could potentially go public before the end of 2024 or in early 2025, Chairman Waseem Ashraf Qureshi said, according to Al Bayan. The company could decide to debut its shares on the Dubai Financial Market, the Abu Dhabi Exchange, or the Nasdaq Dubai, and has not made a decision on which exchange it will go with, Qureshi said. The potential listing comes as Enercap plans to invest AED 220 mn to build a new factory in Abu Dhabi, which will be its second facility in the country.

#2-Funds manager National Bonds expects to receive regulatory approval for its new pension fund for UAE employers within six weeks, National Bonds CEO Mohammed Qasim Al Ali told Gulf News. The fund will gather earmarked end-of-service and gratuity scheme payments from employers.

National Bonds had a good year: As of December 2023, the investment portfolio of National Bonds surpassed AED 14 bn (USD 3.8 bn), Wam reports. National Bonds’ Golden Pensions Plan, launched last year, attracted around 34k enrollments by 2023, contributing to the company’s investment portfolio. This surge, alongside AED 6.4 bn in new sales, reflects a 122% increase in monthly direct debits from savers, according to the CEO.

#3- Borouge pledges net zero: Abu Dhabi-based petrochemicals company has committed to bring scope 1 (polyethylene and polypropylene) and scope 2 (energy consumption) carbon emissions down to zero by 2045, setting intermediate targets to reduce greenhouse gas emissions intensity by 25% and energy intensity by 30% by 2030, reports Wam. The firm plans to roll out energy efficiency programs and explore new decarbonization technologies to achieve its objective.

How it’s going: Borouge has already marked off one of its 2030 goals, recording a 30% reduction in emission intensity in 2023 compared to the 2018 baseline.

#4-The Energy and Infrastructure Ministry will issue on 24 April tenders for a new authority building and six upgrades across the UAE, according to its website. The projects include maintenance and addition works for schools in Ras Al Khaimah, Umm Al Quwain, and Ajman, plus maintenance and renovation projects for the Culture and Youth Ministry building in Abu Dhabi and Energy and Infrastructure Ministry building in Sharjah. One of the tenders is also seeking engineering consulting services for the construction of an additional building for the Federal Authority for Identity, Citizenship, Customs, and Ports Security in Abu Dhabi.

DATA POINTS-

#1-The Central Bank of the UAE’s foreign assets reached AED 695 bn in January 2024, according to CBUAE data (pdf), marking a 39% y-o-y increase.

#2- The Mothers’ Endowment Campaign raised AED 1.4 bn during Ramadan, surpassing its AED 1 bn target, The National reports. The fund, initiated by Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum at the start of Ramadan, aims to assist underprivileged families globally, particularly focusing on educational support.

What they said: “Contributions to this endowment exceeded Dh1.4 bn during the holy month, providing perpetual educational endowment and ongoing charity for mothers in the UAE. May this initiative bless our endeavors and journeys,” Sheikh Mohammed said in a statement on X.

#3- Emirati carriers grew their destination network to 603 global destinations in 1Q 2024, an increase of 3% y-o-y on the back of a recovering aviation sector meeting a heightened demand for travel, reports Wam. Emirates posted the largest network during the quarter with a total of 143 destinations.

More routes to be onboarded: Etihad Airways plans to expand to over 125 destinations by 2030, with up to 6 new destinations scheduled to launch this year.

MARKET WATCH-

Adnoc’s strategic move to prioritize Murban oil over Upper Zakum crude has caused a substantial drop in Upper Zakum exports, Reuters reports. The move is in line with Adnoc’s investments in refinery upgrades, particularly at its Ruwais facility, which allow it to process heavier grades more efficiently.

“They invested a lot of money over at least 3-4 years upgrading Ruwais to run heavier grades so it makes a lot of sense to run Upper Zakum and sell Murban,” said director of Surrey Clean Energy Adi Imsirovic. “Barrel-for-barrel, Murban brings more revenue for equal compliance.”

THE BIG STORY ABROAD-

The global business press is focused on the war in Gaza and tensions in Syria, with the two stories leading or getting prominent play everywhere from the Wall Street Journal to Reuters and Bloomberg.

#1- Israel’s military expressed “sincere sorrow” that it had killed seven aid workers from World Central Kitchen in an airstrike on Gaza, saying the strike was a mistake. The attack prompted the Biden administration to offer its toughest criticism yet of the Netanyahu government.

#2- Iran is furious and has vowed to respond after Israel killed top Iranian military officials in an attack on Iran’s embassy in Damascus despite diplomatic compounds having protected status under the Vienna Convention. Israel’s defense minister was unapologetic, saying, “We are in a multifront war, offensively and defensively.”

IN BUSINESS- Tesla’s shares plunged after quarterly deliveries fell for the first time since 2020, CNBC reports.The 8.5% drop in deliveries was worse than analysts had penciled in, the Wall Street Journal and Bloomberg add.

FAR, FAR AFIELD- The moon is about to get its own timezone. “The White House on Tuesday directed NASA to establish a unified standard of time for the moon and other celestial bodies, as the United States aims to set international norms in space amid a growing lunar race among nations and private companies,” Reuters writes in an exclusive.

OSN+ completes acquisition of majority stake in Anghami

Dubai-based TV satellite and streaming company OSN+ completed its acquisition of a 55.45% stake in Abu Dhabi-based Anghami, making it a majority shareholder in the Nasdaq-listed music streamer, according to a press release. OSN acquired the stake at USD 3.69 per share, 2.05x its closing price yesterday — which fell 7.7%.

The details: The new entity combines over 120 mn registered users, 2.5 mn paid subscribers, and nearly USD 100 mn in revenue, merging OSN+’s video library with Anghami’s music catalog for enhanced streaming experiences, the statement reads. Anghami co-founder and CTO, Elie Habib, will head the combined entity, while Joe Kawkabani will retain his role as OSN Group CEO.

Refresher: Anghami agreed in November 2023 to merge with Dubai-based TV satellite and streaming company OSN+. OSN+ had agreed to make a USD 50 mn investment at a valuation of USD 3.65 per share (2.03x the current share price). OSN+’s investment was expected to help prevent Anghami from being delisted from the Nasdaq, after its stock price fell below USD 1 apiece for more than 30 business days, triggering a warning notification by the exchange.

Others came to Anghami’s rescue: MBC Ventures, the VC arm of regional broadcaster MBC Group, acquired a 13.7% stake in Anghami last week, buying up 4 mn ordinary shares. Anghami’s shares rose 59% on the day of the transaction to USD 1.59 a piece.

IN OTHER M&A NEWS-

Phoenix to close USD 2.5 mn Rekt stake acquisition: The board of ADX-listed crypto firm Phoenix Group is set to meet tomorrow to approve the acquisition of a 12.5% minority stake in Dubai-based web3 gaming firm Rekt Studios, according to an ADX disclosure (pdf). The acquisition will be executed through Phoenix’s wholly-owned subsidiary, Phoenix INV Holdings.

Sukoon Ins. now owns 94.57% of Ascana, after Ascana shareholders agreed to sell an additional 1.57% of their shares to Sukoon Ins., the company said in a filing to the DFM (pdf). The transaction is worth AED 4.2 mn, according to Enterprise calculations.

REMEMBER- Sukoon Ins. already owns a 93.1% stake in Ascana, and our friends at Mashreq hold a 65.7% ownership in Sukoon Ins.’s share capital. Sukoon Ins. had previously made an offer at AED 1.65 per share to acquire up to 6.95% of the remaining issued and paid-up ordinary shares of Ascana.

ADIA now owns 40% of Landmark Dividend + Borealis closes 100% acquisition of Bulgaria’s Integra Plastics

ADIA closes 40% acquisition of DigitalBridge portfolio company: Abu Dhabi Investment Authority (ADIA) has closed its acquisition of a 40% stake in global alternative asset manager DigitalBridge Group subsidiary Landmark Dividend, according to a press release. No details on the value of the transaction were disclosed.

The details: The acquisition, which was initially announced in November, “was completed alongside DigitalBridge-sponsored vehicles to support the continued expansion of Landmark’s real estate and infrastructure growth platform,” the statement says.

Advisors: Gibson Dunn & Crutcher provided counsel to ADIA, while Simpson Thacher & Bartlett acted as counsel to DigitalBridge. TAP Advisors was also financial advisor to Digital Bridge.

ADIA has been on an M&A tear: ADIA has closed a handful of M&A transactions since the beginning of the year, including snapping up a stake in Indian budget airline SpiceJet, purchasing equity shares in Indian railway equipment manufacturer Texmaco Rail, and participating in a consortium that bought a majority stake in the mall unit of Chinese property giant Dalian Wanda. The sovereign wealth fund also has its eyes on buying stakes in funds managed by Hong Kong-based private equity giant PAG. The flurry of transactions has put ADIA — along with Mubadala, Saudi Arabia’s Public Investment Fund, and the Qatar Investment Authority — as the biggest drivers of M&A activity in the region, according to a recent EY report.

IN OTHER M&A NEWS-

Borealis closes 100% acquisition of Integra Plastics: Borealis — which is 25% owned by the Abu Dhabi National Oil Company (Adnoc) — has closed its acquisition of 100% of Bulgaria’s Integra Plastics, according to a company statement. The company did not disclose the value of the transaction.

ICYMI- Borealis signed the agreement for the acquisition last November, saying at the time that its acquisition of the advanced mechanical recycling player would “strengthen our ability to deliver on our advanced mechanical recycling ambition and enable our customers to meet their sustainability targets.”

ADIA earmarks USD 1 bn for Barclays, AGL private credit vehicle

The Abu Dhabi Investment Authority (ADIA) is pouring USD 1 bn into Barclays and AGL Credit Management’s new private credit fund, Bloomberg reports, citing a source familiar with the matter. With Adia’s backing, the fund now holds more than USD 2 bn of dry powder ready for deployment. The three firms declined to confirm the exact size of the investment.

ADIA and AGL go way back: Founded in 2019, AGL was launched with a USD 500 mn investment from Adia, making the sovereign wealth fund a shareholder in the credit investment firm.

ADIA is stepping up its private credit investments: ADIA recently said it is ramping up its commitment to London-based alternative asset manager Cheyne Capital’s capital solutions strategy to GBP 650 mn, as a “compelling investment proposition in a market that is looking to private credit lenders for capital,” Executive Director of ADIA’s real estate department Mohamed Al Qubaisi said. ADIA previously ventured into private credit in September, backing a USD 5 bn fund launched by Wells Fargo alongside asset manager Centerbridge and making a USD 932 mn investment in Australian real estate private credit company Qualitas Diversified Credit Investments.

About the vehicle: The private credit fund will operate as an independent manager with a primary focus on investments in senior secured debt and offering private credit financing to major corporate borrowers, Bloomberg reports, citing a statement it has seen. The fund will give AGM “complete control” over origination, asset selection, portfolio construction and portfolio management .

AGM will hold full control under an agreement with Barclays, which will give AGL access to all of Barclays’ entire private credit portfolio. The agreement will allow AGL to choose to participate in the credit financing transactions, which will help AGL “benefit from more information than other pure-play direct lenders and asset managers,” AGL Chief Executive Peter Gleysteen told Bloomberg.

Banks can no longer market foreign funds to retail investors in the Emirates

Retail investors can no longer subscribe to offshore funds and asset managers after the UAE’s financial services watchdog the Securities and Commodities Authority ’s (SCA) rule (pdf) banning onshore banks from promoting or marketing foreign funds to retail investors entered into effect last Sunday. Under this rule, only SCA-registered funds can be promoted in the UAE to retail investors.

Background: The SCA issued the decision in January last year, prohibiting funds and assets managers based outside of the UAE from being publicly offered for subscription in the UAE. The SCA had granted a temporary grace period for foreign funds that were already registered with the SCA for retail promotion that was extended until 31 March 2024, after an initial deadline on 30 June 2023.

Exemptions: Professional investors, such as federal or local governments, government bodies and wholly-owned state-owned companies can still buy into foreign funds and invest in foreign assets, with investments of over AED 500k. They also need to have no less than AED 75 mn in assets, and an annual income of at least AED 150 mn, according to Gulf News. Foreign residents are also allowed to subscribe to overseas funds, provided they sign up through their offshore bank accounts.

Alternative options: Foreign fund managers seeking to continue offering to the retail market in the UAE have multiple options, including either obtaining a fund management license from SCA to establish a domestic feeder fund allowing retail investors to invest in a foreign master fund, or apply for a management company license, law firm Simmons and Simmons explains. They could also appoint a local, third-party SCA-licensed management company as a first step.

The SCA is looking to bring fund managers to the UAE: Under the decision, the SCA facilitated the requirements for foreign managers establishing an onshore presence by reducing minimum capital requirements from AED 50 mn to AED 1 mn, reducing registration fees, shortening license processing time, and easing accreditation requirements.

The decision helps boost the local funds market by limiting capital outflows, consequently “[setting] up more sustained inflows into local stocks,” Capital Plus managing director Naqqash Ahmed told Gulf News. It also aims to crack down on the unsupervised operations of unlicensed foreign funds in the Emirates.

The SCA’s efforts have borne fruit, with an influx of foreign asset managers flocking to the UAE over the past year.

What’s next? The SCA is hoping to attract more foreign funds to set up shop in the UAE and encourage the establishment of domestic funds, and is collaborating with other GCC financial services regulators to draft the GCC Funds Marketing Passport, pending final approval from the GCC council, according to Simmons and Simmons. The passport will mirror the EU UCITS/AIFMD Passport, enabling funds from one GCC jurisdiction to be marketed in others.The SCA is also in early talks with the Dubai Financial Services Authority and the Abu Dhabi Global Market to introduce a dual licensing framework for fund managers.

Dubai private schools can raise tuition fees by 5.2% next year

Private schools in Dubai get green light to hike fees: Private schools in Dubai will be able to raise their tuition fees by up to 5.2% for the 2024-25 academic year, after the emirate’s education regulator, the Knowledge and Human Development Authority (KHDA) set the Education Cost Index (ECI) at 2.6%, according to a statement. KHDA has greenlit the tuition fee increases for the second consecutive year after they were frozen for the three preceding academic years due to the covid-19 pandemic.

How the rules work: Each school will be allowed to raise their fees at different increments depending on their last inspection rating. While the ECI was set at 2.6%, some schools will be eligible for price hikes equivalent to double the ECI. Private schools that received downgraded ratings will not be eligible for the fee increases. Schools will be required to secure approval for tuition fee increases from KHDA.

The increases are as follows:

Schools whose rating was upgraded to “acceptable” or “good” from “weak” are eligible for a 5.2% tuition fee hike (equivalent to double the ECI);
Schools whose rating moved to “very good” from “good” will be eligible to raise fees by 1.75x the ECI, allowing them a fee increase of up to 4.55%; and
Schools moving up to “outstanding” ratings from “very good” will be eligible to increase their fees by 3.9% (equivalent to 1.5x the ECI);
Schools maintaining their ratings from last year will be eligible for a 2.6% fee increase.

DATA POINT- During the past academic year, private school enrollment climbed 12% y-o-y with more than 365k students attending 220 private schools in Dubai. Over 77% of students in the emirate were enrolled in schools rated “good” or above.

Taaleem to invest AED 750 mn to build four schools in Dubai and Abu Dhabi

Education provider Taaleem is planning to invest AED 750 mn to build four schools in Abu Dhabi and Dubai over the next three years, CEO Alan Williamson told Asharq Business (watch, runtime: 8:47). Each school will cost between AED 200-300 mn to build, Williamson said, noting that the process of building out new schools takes 2-3 years due to regulatory procedures and building code requirements.

M&A + GCC expansion are also on the radar: Taaleem is also assessing its current M&A options, with expectations of completing one or two “significant” transactions in the UAE, Williamson said, without providing further details. The company is also actively exploring potential expansions in other GCC countries, with a particular focus on Saudi Arabia, where Taaleem is also looking at three or four potential M&A transactions, according to the CEO.

More investments are needed in the education sector, according to Williamson, as approximately 65k kids will need education in the UAE over the next five years.

SMEs show renewed confidence in post-pandemic business outlook

UAE-based SMEs’ confidence has rebounded since the covid-19 pandemic, with businesses expressing optimism on future revenues and the business environment in the country, according to the RAKBank SME Confidence Index (pdf). Across the six industries covered in the index — construction and manufacturing, transport, trading, public services, professional services, and consumer and retail services — businesses reported a confidence score of more than 50.0. A score below 50.0 signals a decrease in confidence, while a score above that threshold signals an increase.

A sector-by-sector overview: SMEs in construction and manufacturing, public services, and professional services lead the pack in their confidence ratings, with the three sectors reporting a confidence score of 62. Transport SMEs follow closely behind with a confidence score of 60, while trading and consumer and retail services businesses turning in the lowest score (59) due to revenue declines and concerns over the corporate tax.

What’s driving the optimism: The renewed confidence is buoyed by an average 45% increase in SMEs’ revenues over the past two years, with the most notable rebound in revenues reported in the construction, manufacturing, and public services sectors. SMEs also pointed to a stable macroeconomic outlook supported by rebounded hotel occupancy rates compared to pre-covid levels, alongside growth in non-oil GDP.

A healthy business outlook: The report highlights a surge in consumer demand, with SMEs preparing to launch new products/services and expand operations through various channels.

But several factors are stoking worries among SMEs: Surveyed businesses pointed to the rising cost of doing business — particularly with higher labor costs and raw material prices — along with the introduction of the corporate tax in the UAE as key causes for concern moving forward. Furthermore, while the construction and manufacturing sectors experienced revenue growth, consumer services saw declines, leading to lower confidence levels compared to the overall market. Businesses also noted that higher oil prices over the past two years has been a source of financial pressure.

GFH Partner invests USD 450 mn in US real estate

GFH Financial Group’s UAE-based subsidiary, GFH Partners, invested USD 450 mn in the US real estate sector between 4Q 2023 and 1Q 2024, according to a bourse disclosure (pdf). The company’s investments were concentrated in medical clinics and student housing, which enjoy rental growth, low national vacancy rates, and stable market conditions, according to the release.

The details: GFH Partners acquired several medical clinics worth USD 150 mn, focusing on states with “favorable long-term demographic trends, low tax environments, and growing inward migration,” according to the statement. This brings GFH Partners’ clinic portfolio to more than 35 properties valued at USD 800 mn, predominantly managed by its Dallas-based subsidiary, Big Sky Medical. The company also acquired a USD 300 mn student housing portfolio, which includes three new properties near top universities, totaling 1.3k beds with a 97% occupancy rate. Prominent institutional investors invested in the portfolio, named Student Housing Portfolio III. This acquisition comes after the successful sale of Student Housing Portfolio I, which delivered a 122% return for investors in two years.

Who’s managing the assets: GFH Partners’ clinic portfolio is predominantly managed by its Dallas-based subsidiary, Big Sky Medical, while its student housing portfolio will be managed primarily byAtlanta-based subsidiary, Student Quarters.

Standard Chartered, Ajman Bank tap new execs + New appointments from DFSA, Presight, Immensa

Standard Chartered appointed Rola Abu Manneh (LinkedIn) as CEO in the UAE, Middle East and Pakistan, Bloomberg reports. Abu Maneh has been CEO of the bank’s UAE operations since 2018. This appointment is part of a wider shuffle, where Standard Chartered has promoted over twelve bankers to new positions within its corporate and investment banking units.

Ajman Bank has appointed Kashif Raza (LinkedIn) as its group head of wholesale banking, it said on LinkedIn. Raza has 25 years of experience, including heading corporate finance and investment banking at Abu Dhabi Islamic Bank for 13 years. He also previously held a role at Dubai Islamic Bank subsidiary DIB Capital.

The Dubai Financial Services Authority has reappointed Ian Johnston (LinkedIn) as vice chair of the Africa and Middle East Regional Committee, which comprises 42 regional financial regulators for capital market development and regulation, it said in a statement. The move also makes Johnston a board member of the International Organization of Securities Commissions — the global standard-setter for securities regulation — until 2026.

Digital manufacturing player Immensa appointed Nabil Habayeb (LinkedIn) to its board as an independent non-executive director, effective yesterday, according to a press release. Habayeb, who has over 41 years of experience, most recently served as president and CEO of General Electric International Markets from 2020 to 2023. Prior to that, he held the position of president and CEO of General Electric in the Middle East, North Africa, and Turkey.

Data analytics firm Presight has tapped Suhail Bin Tarraf as board member, according to an ADX disclosure (pdf). Bin Tarraf takes over the board seat from Eric Poe Xing following his resignation.

Depa reports 2023 results

Depa posted a net loss of AED 44.4 mn in 2023 compared to a net income of AED 59.1 mn in 2022, due to “impairments related to project receivable balances, particularly within Depa Interiors,” according to the company’s earnings release (pdf). The interior construction and manufacturing company’s revenues stood at AED 1.09 bn during the year, up 19% y-o-y.

Looking ahead: Depa is gearing up to expand operations into Saudi Arabia on the back of “the region’s growth potential,” Depa CEO Haitham Tuqan said. The contractor also plans to expand its reach in the construction fit-out sector through Depa Interiors and Deco Group, and explore new windows in the US upscale residential fit-out market through Vedder.

UAE suspends Gaza maritime aid following World Central Kitchen aid worker killings

The UAE has said it will pause aid shipments to Gaza via its maritime corridor from Cyprus, pending an investigation and assurances from Israel that it will protect aid workers, following an Israeli strike that killed seven World Central Kitchen workers. Reuters and Axios had the story.

Sobha to spend AED 450 mn on furniture factory in Dubai Industrial City. PLUS: Crypto, AI, transport, and real estate news

MANUFACTURING-

Sobha Furniture is spending AED 450 mn on a second factory in Dubai Industrial City, after inking a land lease agreement with the industrial hub, according to a press release. The move comes as the company bids to localize manufacturing, aiming to reduce lead times and cut transportation costs and emissions. The new fully automated facility will span 84k sqm and have a built-up area of 50k sqm, making it the largest in the UAE.

REAL ESTATE-

Jubail Island Investment Company has launched an AED 4 bn beachfront community development in Jubail Island, slated for handover by the end of 2027, reports Wam. The development, Bada Al Jubail, will span 446k sqm, with plots ranging from 2-6k sqm. Residents of the new community will have access to a 30-yacht marina, plus Jubail Island’s private schools, beach clubs, retail, and F&B destinations.

DIGITIZATION-

First Abu Dhabi Bank (FAB) and Microsoft will launch an AI innovation hub for financial services, after inking an agreement to develop new AI-based banking capabilities in the UAE, reports Wam. The hub will promote collaboration across areas of innovation through AI, with a focus on enhancing sustainability and customer experience.

FAB likes Microsoft for AI solutions: The Abu Dhabi-based bank partnered with G42 company Core42 earlier this month to expedite the bank’s data center migration to the Microsoft Azure cloud platform, and improve retail, individual, institutional, and SME services.

CRYPTO-

Deribit to set up shop in Dubai: Digital asset derivatives exchange Deribit can now offer trading services to institutional and qualified investors in the UAE after securing a Virtual Asset Service Provider license from the Virtual Assets Regulatory Authority, it said in a statement. The license is conditional on Deribit fulfilling the remaining localization requirements, which it aims to do by 3Q 2024.

The exchange platform will relocate its global HQs to Dubai as part of the move.It has appointed Luuk Strijers (LinkedIn) as CEO, and Dennis Dijkstra (LinkedIn) and Willem Meijer (LinkedIn) as non-executive directors.

TRANSPORT-

Careem has launched its Careem Food and Careem Pay platforms in Abu Dhabi, allowing residents and visitors in the emirate to order meals from restaurants and settle bills through the Careem app, according to a press release. Careem Pay offers bill payment services for ADDC water and electricity bills, Etisalat and Du bills, and Salik account recharge, with plans to add Darb and Hafilat bill payments in the future. The platform also allows users to make instant international remittances to India and Pakistan.

Gold prices hit fresh high

Gold prices hit a record high on Monday, on the back of growing expectations of the USD Federal Reserve’s interest rate cuts and the metal’s status as a safe haven asset, CNBC reports. Gold soared to a high of USD 2.29k, with the Spot gold price increasing 0.3% to reach USD 2.2k per ounce. The metal was up 1.3% this morning.

The ongoing surge in gold prices has been driven by central banks increasing their gold purchases in a bid to diversify their reserve portfolio amid heightened geopolitical tensions and accelerating inflationary pressures, market strategist at the World Gold Council Joseph Cavatoni told CNBC.

THE MARKETS THIS MORNING-

Asian markets are solidly in the red this morning, with CNBC blaming poor sentiment on electric vehicles after Tesla said yesterday it had missed delivery targets. The decline in deliveries was worse than analysts had expected. Three listed Chinese automakers, including market leader BYD, led the decliners. The sea of red extends to Europe and on Wall Street, where stock futures edged down overnight.

ADX	9,253	+0.1% (YTD: -3.4%)
DFM	4,269	+0.1% (YTD: +5.2%)
Nasdaq Dubai UAE20	3,742.35	+0.5% (YTD: -3.6%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.3% o/n	5.3% 1 yr
TASI	12,477	+0.4% (YTD: +4.3%)
EGX30	27,934	-1.3% (YTD: +12.2%)
S&P 500	5,206	-0.7% (YTD: +9.1%)
FTSE 100	7,935	-0.2% (YTD: +2.6%)
Euro Stoxx 50	5,042	-0.8% (YTD: +11.5%)
Brent crude	USD 88.92	+1.7%
Natural gas (Nymex)	USD 1.86	+1.4%
Gold	USD 2,281	+1.3%
BTC	USD 65,651	-5.7% (YTD: +55.1%)

THE CLOSING BELL-

The ADX was essentially flat yesterday, rising 0.1% on turnover of AED 988.03 mn. The index is down 3.4% YTD.

In the green: Al Buhaira National Ins. Company (+7.1%), Gulf Pharma Industries (+5.3%) and Presight AI Holding (+3.8%).

In the red: Rapco Investment (-9.5%), Aram Group (-9.4%) and GFH Financial Group (-5.9%).

Over on the DFM, the index closed up 0.1% on turnover of AED 483.7 mn.

CORPORATE ACTIONS-

Salik approved the distribution of AED 550 mnin dividends for equivalent to 7.3338 fils per share), reflecting the company’s entire net income in 2H 2023, according to a press release (pdf). This brings the company’s total dividends for the year to AED 1 bn, representing nearly all of the net income for 2023 available for distribution.

Unikai Foods approved paying shareholders 20% bonus shares as dividends for 2023,according to a DFM disclosure (pdf).

Sheikh Abdullah bin Zayed Al Nahyan talks Gaza + cooperation with Hungarian FM. Plus: UAE condemns Israeli attack on World Central Kitchen convoy

Foreign Minister Sheikh Abdullah bin Zayed al Nahyan met with his Hungarian counterpart, Péter Szijjártó, in Budapest to discuss economic, trade, investment, tourism and logistics cooperation, state news agency Wam reports. The two ministers also discussed the situation in Gaza and the importance of securing a ceasefire.

REMEMBER- The two countries recently inked an economic cooperation agreement, and agreed on a project that will see Emirati developer Eagle Hills invest EUR 5 bn to develop a railway station in Budapest.

ALSO- The UAE condemned “in the strongest terms” Israel’s deadly attack on volunteers from the World Central Kitchen, which killed seven members of the nonprofit traveling in a convoy, according to a Foreign Ministry statement. The World Central Kitchen is “the UAE’s partner in the Amalthea Initiative to strengthen the humanitarian response to civilians in northern Gaza,” the ministry noted.

OTHER DIPLO NEWS-

President Sheikh Mohammed bin Zayed Al Nahyan held a phone call with Jordanian King Abdullah bin Al Hussein to discuss cooperation and the situation in Gaza, as well as the importance of securing a ceasefire. (Wam)
Trade Minister Thani bin Ahmed Al Zeyoudi met with the chairman of Iraq’s International Development Bank, Ziad Khalaf, to discuss boosting economic ties and private sector cooperation between the two countries. (Statement)

CALENDAR

APRIL

14 March-14 April (Thursday-Sunday): Dakakeen Festival, Khorfakkan Amphitheatre.

21 March-10 April (Thursday-Wednesday): Ramadan Nights 2024, Expo Centre Sharjah.

26 March-21 July (Tuesday-Sunday): ‘From Kalila wa Dimna to La Fontaine: Traveling through Fables’ exhibition, Louvre Abu Dhabi.

4-8 April (Wednesday- Monday): The Mina Cup, JA sports center.

8-12 April (Monday-Friday): Eid Al Fitr, public holiday.

15-16 April (Monday-Tuesday): Blockchain Life Forum 2024, Festival Arena, Dubai.

17 April (Wednesday): Machines Can See, Museum of the Future, Dubai.

16-18 April (Tuesday-Thursday): World Future Energy Summit, Abu Dhabi National Exhibition Centre.

16-18 April (Tuesday-Thursday): EcoWaste Exhibition and Forum, Abu Dhabi National Exhibition Centre

16-18 April (Tuesday-Thursday): Middle East Coatings Show, Dubai World Trade Centre.

16-18 April (Tuesday-Thursday): Middle East Energy, Dubai World Trade Centre.

18-19 April (Thursday-Friday): TOKEN2049, Madinat Jumeirah in Dubai.

22-24 April (Monday-Wednesday): Emirates Skills National Competition

23-25 April (Tuesday-Thursday): Connecting Green Hydrogen MENA, Madinat Jumeirah Conference Centre.

23-25 April (Tuesday-Thursday): Argus Fertilizer Asia Conference, Abu Dhabi.

23-25 April (Tuesday-Thursday): Domotex Middle East 2024, Dubai World Trade Centre.

24-26 April (Wednesday-Friday): Global Education & Training Exhibition.

24 April-1 May (Wednesday-Wednesday): Abu Dhabi Mobility Week.

24-25 April (Wednesday-Thursday): Ras Al Khaimah Investment and Trade Summit, Rak Exhibition Centre.

25 April (Thursday): Bayanat AI and Yahsat simultaneous general assembly meetings

25-26 April (Thursday-Friday): DRIFTx, Abu Dhabi.

29-30 April (Monday- Tuesday): Dubai World Ins. Congress, Atlantis, The Palm.

29 April- 5 May (Friday-Friday): The Abu Dhabi International Book Fair, Abu Dhabi National Exhibition Centre (ADNEC).

MAY

1-2 May (Wednesday-Thursday): Capital Markets Summit, Madinat Jumeirah, Dubai

1-5 May (Wednesday-Sunday): The Sharjah Animation Conference, Expo Centre Sharjah.

6-7 May (Monday-Tuesday): Dubai Fintech Summit 2024, Madinat Jumeirah.

6-9 May (Monday-Thursday): The Arabian Travel Market, Dubai World Trade Centre, Dubai.

7-9 May (Tuesday-Thursday): AIM Congress 2024, Abu Dhabi.

8-9 May (Wednesday-Thursday): Innovative Finance Expo, Jumeirah Emirates Towers.

8-12 May (Wednesday-Sunday): Schmetterling Annual Conference, Al Ain and Abu Dhabi.

14-15 May (Tuesday-Wednesday): Seamless Middle East, Dubai World Trade Centre.

14-16 May (Tuesday-Thursday): The Airport Show, Dubai World Trade Centre.

15 May (Wednesday): HFM Summit, DIFC.

18-26 May (Saturday-Sunday): Abu Dhabi Comedy Week, Abu Dhabi.

19 May (Sunday): Investopia Europe, Milan.

19 May (Sunday): RTA’s Deadline for bids to design and build Dubai Metro’s Blue Line.

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.

JUNE

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.

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

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

JULY

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

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.

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.

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