Eagle Hills to invest USD 3 bn in Indonesia’s infrastructure

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Lots of IPOs + Alkaabi confirms plans for second nuclear plant

Good morning, friends. It’s another busy day of news as Indonesian President Joko Widodo wraps his visit to the UAE with a raft of MoUs — and a USD 3 bn investment from Eagle Hills — and we get more updates on debt issuances from Binghatti and Masdar — plus a big dose of macro data.

** PROGRAMMING NOTE- EnterpriseAM UAE is off tomorrow. Longtime readers of our other publications know that we take occasional holidays during the dog days of summer and toward year’s end to recharge our batteries. We’re taking a day tomorrow to enjoy some time with family and friends — we’ll see all of you back here on Monday at our usual time.

WEATHER- The mercury will hit 42°C today in Dubai, before cooling to an overnight low of 35°C. Abu Dhabi will see a high of 37°C and an overnight low of 32°C.

UPDATES-

#1- Abu Dhabi National Hotels (ADNH) confirmed that it is considering “strategic options” for its catering business ADNH Catering, including a potential IPO of the business in a statement. The firm had reportedly tapped banks to work on a planned initial public offering for ADNH Catering, with sources saying the IPO could raise about USD 300-400 mn.

#2- The UAE brokered a prisoner exchange agreement between Russia and Ukraine, marking its sixth mediation between the two countries this year, Wam reports. The latest exchange involved swapping 190 prisoners, bringing the total to over 1.5k individuals exchanged in 2024.

ICYMI- Bloomberg reported yesterday that the agreement involved swapping 180 prisoners.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- Good news for Reem Island businesses, not so much for finance firms at ADGM: Abu Dhabi Global Market (ADGM) will slash licensing fees by 50% or more for non-financial and retail businesses, starting 1 January 2025, Wam reports. ADGM will cut non-financial business registration fees from USD 10k to USD 5k, while annual renewal fees will drop from USD 8k to USD 5k. Retail businesses will also see their registration fees reduced from USD 6k to USD 2k and renewals halved to USD 2k.

Financial firms will see a moderate fee increase, up from USD 15k to USD 20k, with renewals rising from USD 13k to USD 15k. Tech and fintech startups will also pay slightly more, with fees increasing from USD 1k to USD 1.5k for both new registrations and renewals. Meanwhile, special purpose vehicle fees will remain at USD 1.9k.

We knew this was coming: CEO of ADGM’s Registration Authority Hamad Al Mazrouei told Al Arabiya earlier this month that the financial hub is reviewing its license fees in a bid to attract more firms and facilitate the transition for companies in Al Reem Island to ADGM. This follows the previous fee waiver for Al Reem Island businesses until the upcoming November to ease their transition after the island joined ADGM’s jurisdiction in November 2023.

#2- Robots on Abu Dhabi’s streets? You can now find robots on Abu Dhabi’s streets to ask for directions or traffic tips, courtesy of Abu Dhabi police, according to a statement.

HAPPENING TODAY-

It’s the final day of the Asia-PacificAccreditation Cooperation (APAC) annual meetings hosted by the Industry and Advanced Technology Ministry in Dubai. Held under the theme “Accreditation: Empowering Tomorrow and Shaping the Future,” the meetings bring together representatives from 65 national accreditation bodies across the Asia-Pacific region, alongside international experts in accreditation and conformity assessment, Wam reports.

WATCH THIS SPACE-

#1- Nuclear expansion to reel in bns-worth tenders: The UAE is “actively exploring” a second nuclear plant, a project that would be valued at “tens of bns of USD,” to meet soaring electricity demand, Hamad Alkaabi, the UAE’s permanent representative to the International Atomic Energy Agency, confirmed to Reuters. No final decisions have been made, but a tender could potentially be launched later this year, expected to attract bids from global nuclear players like China, Russia, and the US.

This isn’t the first time we hear about a second nuclear plant. In April, Reuters reported that the government is considering the expansion to double nuclear reactors and meet energy demands. The government was said to award the contracts this year, with the plant expected to begin operations near the Saudi Arabian border or the existing Barakah plant by 2032.

A lot is yet to be decided: While a budget or location for the second plant has not been set, “any new power plant would likely consist of two or four reactors,” Alkaabi said. The government has already held talks with major nuclear energy technology developers, Alkaabi said without disclosing their names.

We have news of two UAE-backed companies tapping public markets overseas:

#1- Abu Dhabi-backed BNPL startup Klarna is gearing up for a US IPO in 2025: Backed by the Abu Dhabi Investment Authority and Mubadala, Swedish fintech Klarna plans to go public as early as the first half of 2025, the Financial Times reports, citing people in the know. The company is mulling tapping Morgan Stanley, JPMorgan, and Goldman Sachs as underwriters on the IPO, sources said. Other banks could yet join the underwriting group, they added.

The company’s decision to pursue a listing comes as executives and advisers express confidence that the IPO market will rebound in 2025 after years of volatility, according to two individuals familiar with the matter.

Previous valuations: Klarna was last valued at USD 6.7 bn in 2022 during a fundraising round that was heavily discounted due to rising interest rates and declining tech stock prices. Previously, it had been valued at USD 46 bn in 2022.

#2- PureHealth could stand to get a capital boost from Ardent’s IPO: Healthcare giant PureHealth confirmed that US hospital operator Ardent Health Services, in which it holds a 26.05% stake, is planning to IPO on the New York Stock Exchange, the hospital operator said in a bourse filing (pdf).

ICYMI- PureHealth could potentially gain a capital boost of USD 800 mn following Ardent’s stock market debut, which is expected to bring the US hospital operator’s valuation to over USD 5 bn. The share float could see the value of PureHealth’s stake increase to about USD 1.3 bn, with the IPO expected to raise up to USD 500 mn, sources told Bloomberg.

Background: The IHC healthcare subsidiary acquired the minority stake in a transaction valued at AED 1.8 bn in May 2023.

#3- Emirates Airlines is hopeful that ongoing talks between the UAE and China will open doors for the Gulf carrier to expand its footprint in China, Orhan Abbas, Emirates’ senior vice president for operations in the Far East, told Bloomberg. The carrier wants to increase operations beyond the current limit of 35 weekly flights, Abbas said, without specifying the exact number of additional flights and routes Emirates aims to operate beyond China’s three largest cities.

DATA POINT-

#1- Dubai International Airport was confirmed the second most visited airport in the word in 2023, with Atlanta topping the leaderboard, according to a press release from Airports Council International (ACI). ACI had already said the airport jumped to second place in its preliminary ranking in April, adding that it moved up from fifth place in 2022.

Carriers saw some 8.7 bn passengers fly in 2023, up 30.5% y-o-y compared to 2022, indicating a 94.2% recovery of global passenger travel from pre-pandemic data in 2019.

#2- Equity and equity-related issuance in the MENA region hit USD 16.5 bn in 1H 2024, representing a near 3x y-o-y increase and the highest during the period since 2008, according to data from LSEG's Deals Intelligence picked up by Zawya.

The number of new issuances increased 19% y-o-y, with IPOs comprising 22% of activity, while follow-on issuance made up the remaining 78%. Energy and power was the most active sector, accounting for 74% (or USD 12.3 bn) of total equity capital raising, followed by the consumer products and services sector, comprising 8%.

Follow-on offerings raised a record USD 13 bn, led by Saudi Aramco’s USD 11.2 bn stock sale and Adnoc Drilling’s 5.5% stake sale to investors in May, which raised USD 934.5 mn.

ICYMI- GCC IPOs’ proceeds fell 32% y-o-y to USD 3.6 bn in 1H 2024, with the UAE raising some USD 1.3 bn from three IPOs, accounting for 37% of total IPO proceeds in the GCC

THE BIG STORY ABROAD-

It’s another day dominated by a mixed bag of news in the foreign press, with more updates from Trump and Biden’s presidential campaigns and the Israel-Hamas ceasefire talks, and news of new faces helming major international banks.

IN THE US-

#1- President Joe Biden was hit with another blow after testing positive for covid-19 and being forced to isolate, the White House confirmed yesterday. In the meantime, Biden is still grasping on straws to keep his candidacy, with a veer to the left in his policy seeing him promise to erase medical debt, cap rent hikes, and impose restraints on the Supreme Court, Bloomberg reports.

#2- Former President Donald Trump sent tech stocks plunging yesterday after taking a dig at Taiwan — a key chip maker — to say it should pay for US defense, the Wall Street Journal reports. The Nasdaq fell 2.8% to log its worst day since 2022.

#3- HAPPENING NOW- Trump’s running mate, JD Vance, is set to make his debut at the Republican National Convention, where the topic of the day is foreign policy and the war in Gaza.

IN THE BUSINESS PRESS-

#1- HSBC appointed Lebanese-born Georges Elhedery, who has served as group CFO since January 2023, as group CEO effective 2 September. Elhedery — who has had nearly two decades of experience at the bank, mainly in the Middle East and Africa — succeeds Noel Quinn, who resigned earlier this year. WSJ, Reuters, and the Financial Times are all out with profiles on Elhedery.

#2- Meanwhile, Brookfield could see 36-year-old Connor Teskey become its next b’naire CEO, who current CEO Bruce Flatt has been training to take on the role, Bloomberg writes in its big take.

CLOSER TO HOME- The latest round of Israel and Hamas’ ceasefire talks are facing four sticking points: Whether Israel will keep its demands to bar Hamas from northern Gaza, whether Israel will be handed control over a key southern border corridor, which hostages will be released, and the commitment to a permanent ceasefire, Bloomberg writes.

On another note: The Emmys’ nominations are out, with Netflix topping networks and FX shows Shogun and The Bear racking up dozens of nominations.

CIRCLE YOUR CALENDAR-

The Jiu-Jitsu competition Abu Dhabi Extreme Championship (ADXC 5) will return to Abu Dhabi on 2 August at the Mubadala Arena, Wam reports.

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

Abu Dhabi’s Eagle Hills earmarks USD 3 bn to develop Indonesia’s tourism

Indonesian President Joko Widodo wrapped up his two-day visit to the UAE, where he met President Sheikh Mohamed bin Zayed Al Nahyan at Qasr Al Watan in Abu Dhabi. The two leaders signed a raft of MoUs, building on the comprehensive economic partnership inked between the two countries in 2022, Wam reports. The visit also saw the UAE’s Eagle Hills ink an agreement for a sizable real estate investment ticket, as well as cooperation on the banking front.

INVESTMENT-

Eagle Hills to support Indonesia’s tourism with a USD 3 bn investment ticket: Abu Dhabi-based developer Eagle Hills has signed an agreement worth USD 3 bn with Indonesia’s State-owned Enterprises Ministry to develop the country’s tourism infrastructure, the ministry said in a statement. The agreement will be valid for one year, with an option to extend, the statement said. .

What does the agreement cover? The agreement will see the Emirati firm develop hotels, airports, and tourism destinations, including Jakarta's Soekarno-Hatta International Airport infrastructure, the Business Times reports. The agreement doesn’t set out a definite timeline for the projects, “giving flexibility on implementation,” the statement said.

REMEMBER- Eagle Hills has been expanding its investments abroad: The developer has this year lined up a USD 1.5 bn investment in a golf course and spa in Baghdad, a EUR 3 bn investment to redevelop a beachfront in Latvia, a more than EUR 5 bn investment in Budapest, and a USD 4 bn investment in real estate in Bahrain.

BANKING-

The Central Bank of the UAE will link its payments system with Bank Indonesia under an MoU signed yesterday to facilitate cross-border payments between the two countries and support economic development, Wam reports. The agreement is an extension of a similar MoU from November 2023, aimed at boosting cooperation and information exchange between the two central banks.

The MoU also sets out a joint mechanism for risk management, regulatory cooperation and user protection.

OTHER MoUs-

In the energy sector: An agreement to install solar energy systems on industrial and commercial rooftops in Indonesia, and an MoU on promoting the peaceful use of nuclear energy;
An MoU on public budget management;
An agreement to establish the Mohamed bin Zayed – Joko Widodo Mangrove Research Centre in Bali;
In finance: an MoU between Dubai International Financial Centre (DIFC) and upcoming capital city Nusantara’s Capital Authority;
A framework agreement on maritime patrol aircraft.

ON THE DIPLOMATIC RELATIONS FRONT-

The President awarded the Order of Zayed to Widodo yesterday at Qasr Al Watan, Wam reports. The Order of Zayed, the UAE's highest civilian honor, was extended to Widodo in recognition of his efforts in strengthening bilateral ties between the two countries.

The president also granted the Order of the Union to Indonesia’s Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, in acknowledgment of his efforts in boosting strategic relations between the UAE and Indonesia.

Dubai inflation ticks up in June

Dubai’s annual inflation came in at 3.85% y-o-y in June, inching up from 3.81% in May, but remaining slightly lower than its peak in April, according to figures from the Dubai Statistics Center (pdf). The higher inflation reading was driven by price increases across all goods and services categories.

The breakdown: 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 6.66% during June, compared to 6.58% in May, while food and beverage inflation accelerated to 2.35% from 2.28%.

Month-on-month, Dubai’s inflation rose to 0.28%, reversing the 0.24% decline recorded in May, according to the statistics center’s monthly inflation report (pdf).

Majarra acquires UAE-based Arabic AI and NLP startup Lableb

Majarra acquires Lableb: UAE-based Arabic digital content provider Majarra acquired Lableb, a local Arabic AI and natural language processing (NLP) startup, for an undisclosed sum, according to a press release. The two companies share founders and shareholders.

The move marks Majarra’s entry into the AI sector: “Through Lableb, we see immense potential in bringing real-life applications to Large Language Models (LLMs), some of which have emerged from our region,” said Majarra's executive chairman Abdulsalam Haykal and CEO Ammar Haykal.

Lableb will maintain its operational independence under the transaction, focusing on Arabic language processing challenges.

About Lableb: Founded in 2017 by Kinda Altarbouch (LinkedIn), Lableb’s Arabic AI and Natural Language Processing (NLP) technology powers content discovery, personalization, enterprise search, and recommendation engines. Its clientele includes online stores, government platforms, news websites, and enterprise software providers, including Microsoft, AWS, and e-commerce platforms Zid, Salla, and Shopify.

About Majarra: The mediatech company —founded in 2004 by Abdulsalam Haykal (LinkedIn) — provides Arabic content through its Majarra App, featuring a library of over 50k articles, videos, and audio content.

DP World to enter JV for Sapangar Bay Container Port development this month?

DP World is set to finalize a JV with Malaysia’s Suria Capital this month for the development of the Sapangar port, The Edge Malaysia reports. The JV — dubbed DPW Sabah — will work to establish Sapangar Bay Container Port (SBCP) as a regional trade hub for the Brunei Darussalam-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA).

About the JV: Indonesian port operator Suria Capital previously signed a conditional share subscription agreement with DP World to hand it a 51% stake in a JV. The remaining 49% would be given to Sabah Ports. The Sabah Ports Authority would then issue DP World Sabah the license to operate and manage the container port. DP World would co-manage SBSCP.

Where we’re at: Negotiations are still ongoing between DP World and the Sabah government on payment terms, including the split of proceeds from the port’s development, Managing Director of Suria Capital Datuk Ng Kiat Min told The Edge. The JV is also subject to a review of port tariffs, which the Edge says have not been changed for 35 years.

What’s next? Once terms are agreed, Suria Capital will enter discussions to extend the length of its concession agreement at the port for a further 30 years to 2064, the Edge reported previously.

A boon for DP World: The JV could potentially bring to DP world mns of RMs for DP World within the next 10 years. The partnership is set to boost cargo volumes, which are “easily worth RM 1 bn in value creation,” Min Ng said.

REFRESHER- DP World inked an agreement with Malaysia’s Sabah Ports to jointly manage SBSCP back in May. The agreement will see DP World support efforts to boost SBCP’s container handling capacity from 500k TEUs to 1.25 mn TEUs by 2025. The pair will also invest in improvement to SBCP’s cold chain storage and transport capabilities to increase the export of Sabah’s agricultural products to international markets opening growth pathways.

Background: The latest partnership builds upon a long-term collaboration agreement inked by DP World and Sabah Ports in 2019, where both parties agreed to co-develop solutions to boost SBCP’s competitiveness. Long term, the partnership looks to boost land and sea connectivity in Sabah, curb transit times and costs, and improve standards across Sabah’s supply chains.

Masdar plans second green bond issuance

Masdar plans dual-tranche green bond: Investor negotiations for Masdar’s USD-denominated Reg S dual-tranche green bond issuance began yesterday, global capital markets intelligence provider International Finance Review reports. The bonds will have tenors of five and ten years. The value of the future issuance — which will mark Masdar’s second one to date — was not disclosed.

Advisors: Abu Dhabi Commercial Bank, Citigroup, Credit Agricole, First Abu Dhabi Bank (FAB), HSBC, Mitsubishi UFJ Financial Group, Natixis, and Standard Chartered Bank have been appointed as joint lead managers and bookrunners.

We knew this was coming: Masdar said in April that it was planning to take a green bond issuance worth between USD 750 mn and 1 bn to market this year to secure funding for its renewable projects in Central Asia, specifically in Uzbekistan and Azerbaijan. This comes as part of a USD 3 bn bonds program aimed at funding clean energy initiatives in the UAE and globally.

Background: The firm raised USD 750 mn last year in its debut green bond sale, which it listed on both the London Stock Exchange and the ADX. The bonds — which were 5.6x oversubscribed — were priced at 115 basis points over US treasuries from an initial guidance of around 150 bps over the same benchmark.

There could be more planned: “The reason why you can expect that we will do another issuance this year, and in future years, is because we have a very strong pipeline of new greenfield projects around the world,” Director of Corporate Finance and Treasury Bruce Johnson said in April. “These projects are at an advanced stage of development and we are committed to meeting their equity funding needs with the proceeds of our green bonds,” he added.

Binghatti lists USD 200 mn sukuk on Nasdaq Dubai

Binghatti’s sukuk went live on Nasdaq Dubai: Real estate developer Binghatti listed a USD 200 mn sukuk tap issuance, linked to its inaugural USD 300 mn issuance in February, on Nasdaq Dubai, according to a Nasdaq notice yesterday. The tap issuance brings the value of the sukuk to USD 500 mn.

About the issuance: The tap issuance saw strong demand from both regional and international investors, and was oversubscribed 4.2x, Construction Week reports. Price on the issuance was narrowed by 20 bps from the initial price guidance on the back of strong investor appetite.

Some 40% of the order book was covered by international investors, Construction Week said.

Refresher: Binghatti said it intends to use the funds raised from its inaugural sukuk issuance to finance land purchases and to restructure its current debt.

OTHER DEBT NEWS-

Sharjah’s green bond issuance is live: The Sharjah government’s EUR 500 mn,6.5-year sustainability bonds — which drew some EUR 1.5 bn in orders as of last Thursday morning — were admitted to trading yesterday, according to a notice on the Dubai bourse. The emirate plans to use the proceeds to finance and refinance “eligible expenditures” under its Sovereign Sustainable Financing Framework.

UAE among biggest sukuk issuers in 1H 2024

The UAE was among several countries leading sukuk issuances in 1H 2024, alongside Saudi Arabia, Oman, Malaysia, and Kuwait, according to an S&P Global report. The surge in issuances was driven by high financing demands in core Islamic finance markets, including the UAE’s focus on expanding the non-oil sector and an increase in demand as investors anticipate US Federal Reserve’s rate cuts later this year.

Foreign currency-denominated issuances grew to nearly USD 6 bn during the six-month period, up from below USD 4 bn in 1H 2023, according to the report. These issuances are rising on the back of more real estate developers and banks tapping the market, the report noted.

ICYMI- Real estate developer Arada took a USD 400 mn sukuk to market in June, while Binghatti launched its debut USD 300 mn sukuk in February and Aldar Properties issued a USD 500 mn sukuk in May. Several banks also issued sukuk, including Emirates Islamic, Sharjah Islamic Bank, Dubai Islamic Bank, and First Abu Dhabi Bank. Also issuing sukuk for the first time was Mubadala, with a USD 1 bn issuance, while Emirates Strategic Investments issued a USD 700 mn sukuk.

Local currency-denominated issuances inched down slightly on the back of fewer government issuances, the report said.

The bird’s eye view: Total global sukuk issuances hit USD 91.9 bn at the mid-year mark, up slightly from USD 91.3 bn during the same period last year. The rise in sukuk issuances comes on the back of improved visibility on medium-term interest rates and high financing needs in core Islamic countries (including Saudi).

Sustainable sukuks dipped 8.8% y-o-y to USD 5.2 bn in 1H 2024, with 80% of issuances taken to market by GCC banks. The total issuance value is expected to remain around USD 10-12 bn annually barring significant policy changes.

Digital sukuks incoming? The UAE’s approval of a regulatory framework for stablecoins could encourage digital sukuk development, although it may take some time to become popularized, S&P Global said.

New accounting + auditing standards are coming down the pipeline: The Accounting and Auditing Organization for Islamic Financial Institutions recently issued new standards for sukuk — known as Sharia Standard 62 — which will require the real transfer of underlying assets to investors. This transition to asset-backed sukuks changes the nature and risk of the market could mean higher costs, asset-related risks, and legal issues, potentially leading to fragmentation, issuance delays, or reduced issuance volumes until a middle ground is found. Feedback on the standard is due by 31 July, with the new standard expected to impact the market in 2025.

Despite potential disruptions from the new standards for sukuk, along with geopolitical risks, S&P maintains a positive outlook on the sukuk market citing stable high foreign currency issuances and areas of growth in sustainable and digital sukuk. The intelligence firm affirmed its forecast for global sukuk issuances to reach USD 160-170 bn by the end of 2024.

Dubai’s property market reeled in AED 123 bn in sales in 2Q 2024 -Springfield

The value of real estate sales in Dubai climbed 35.8% y-o-y in 2Q 2024 to AED 123 bn, according to Dubai-based real estate broker Springfield Properties’ latest market overview report (pdf). This came as the total volume of property transactions in the emirate inched up 60.1% y-o-y, with some 48.2k transactions recorded during the quarter.

ICYMI- A Property Finder report, using Dubai Land Department data, estimated a similar — albeit slightly higher — figure for sales, estimating some AED 124.4 bn in sales during the quarter, marking a 37% y-o-y uptick. The report also counted some 43k transactions for the quarter, a 45% y-o-y increase — slightly lower than Springfield Properties' estimate. Primo Capital Experts, on the other hand, logged a lower account of transaction volumes (35k), a 20.5% y-o-y increase.

Off-plan properties accounted for over 26.6k transactions in 2Q 2024 — more than half of the units sold during the quarter — collectively pooling AED 67.8 bn, indicating “strong investor appetite for new developments” in Dubai, according to the report. The secondary market followed closely, seeing some 21.5k units traded at a combined value of AED 55.2 bn.

By neighborhood: Jumeirah Village Circle handed over the most units during the quarter (3.9k), followed by Business Bay (2.6k), Meydan One (1.8k), and Dubai Hills Estate (1.7k). Jumeirah Bay Island had the largest market share, reeling in approximately AED 10.6k for every sqft sold, while Bluewaters Island had the second largest presence in the market, selling units for AED 5.3k per sqft.

Over on the rentals side: Dubai witnessed a 10% y-o-y uptick in rental activity in 2Q 2024, with 211.8k rental transactions logged, hinting at heightened demand for rental properties in the emirate. The total value of transactions dipped 8% y-o-y to AED 17.8 bn, which could indicate either a decline in average rental rates, or a shift in renter preferences, according to the report.

Sustained demand for communities like Bluewaters Island and Jumeirah Islands indicate continued interest in luxury housing among renters, the report said.

Only up from here? The report forecasts a sustained upward trajectory in Dubai’s real estate market, driven by the expansion of Al Maktoum Airport, which is expected to drive property values and attract both residential and commercial investments. The emirate’s shift toward sustainability is also expected to trigger investor interest in the market, as well as the development of high-end and mixed-use communities.

Rapco’s net income falls 31% y-o-y to AED 4.7 mn in 2Q 2024

Ras Al Khaimah Poultry & Feeding Co. (Rapco Investment) recorded a net income of AED 4.7 mn in 2Q 2024, down 31% y-o-y, according to its financial statements (pdf). The company’s revenues stood at 6 mn during the period, down 9.7% y-o-y.

In 1H 2024, the company recorded a net income of AED 45 mn, reflecting a 48.8% y-o-y decrease. Revenues for the six-month period amounted to AED 6.6 mn, down 29.2% year-on-year.

CNN spotlights the Dubai Green Spine project

Again, no dominant theme runs across foreign press mentions of the UAE, but the big stories are:

#1- CNN featured Dubai-based developer URB's ambitious plan to transform Sheikh Mohamed Bin Zayed Road into a 64-km sustainable corridor, dubbed the Dubai Green Spine. This project includes solar-powered trams, a 300-MW solar energy network, mixed-use buildings, and interconnected green spaces.

#2- In an editorial for the Financial Times, UAE Assistant Minister for Political Affairs, Lana Nusseibah, called for a temporary international mission in Gaza to alleviate the crisis in Gaza and prepare it to “[reunite] with the occupied West Bank under a single, legitimate Palestinian Authority.” Nusseibah emphasized that the UAE’s position is that peace efforts must “fundamentally alter the trajectory of the Israeli-Palestinian conflict towards the establishment of a Palestinian state” that coexists with Israel.

Amea Power to expand renewable energy projects in Egypt

ENERGY-

UAE-based Al Nowais' AMEA Power got the greenlight from the Egyptian cabinet to expand its renewable energy projects in the country by next summer, according to a statement. The expansion will see AMEA up its renewable capacity in the country by 2 GW.

Remember: AMEA Power is currently working on 1 GW-worth of renewable energy projects in Egypt — a 500 MW solar Abydos plant which is set to begin operations by the end of September, as well as a 500 MW wind farm in Ras Ghareb that is lined up for completion mid-2025.

Part of a bigger plan: The UAE and Egypt are working to introduce some 4 GW of renewable energy into the national grid by next summer in a bid to help Egypt meet heightened energy demand.

AUTOMOTIVE-

Taiwanese supplier to introduce electric buses in the UAE: Taiwan-based Tron Energy Technology has inked an MoU with its UAE-based subsidiary Map Tron-E to establish a JV for developing and manufacturing electric buses in the UAE, according to a press release.

The JV plans to kick off ground testing of the buses in the UAE by late 3Q this year, with manufacturing expected set to commence in 1Q 2025. Initial phases will see the JV run efficiency tests for the eclectic buses, followed by full-scale production and distribution across the Mena region.

RETAIL-

Ajman Chamber Chairman meets Gulf Chinese Trading Corp. on investment expansion: The Chairman of the Ajman Chamber of Commerce and Industry (ACCI), Abdullah bin Mohammed Al Muwaiji, met with a delegation from the Gulf Chinese Trading Corporation, which manages Ajman's China Mall, to discuss cooperation and plans to expand investments, Wam reports. The parties discussed increasing China Mall investments and attracting Chinese firms in renewable energy, advanced industries, AI, health, and tourism sectors.

MANUFACTURING-

Rakez to host Xpro India’s first global manufacturing unit: India-based conglomerate Birla’s dielectric film producer Xpro India will develop a AED 100 mn global manufacturing unit in the UAE’s Ras Al Khaimah Economic Zone (Rakez), slated for operation in 2Q 2025, according to a statement. The project will be the firm's first manufacturing unit overseas, dubbed Xpro Dielectric Films, and will export to the US, Europe, and the Far East.

Details: The facility will produce 4.5k tonnes of dielectric films per year and is expected to create 80 new jobs in the UAE.

TRANSPORT-

#1- UAE rolls out first autonomous vehicle trial: Dubai South has carried out the first stage of the UAE’s autonomous vehicle trials in partnership with UAE-based Evocargo, according to a statement. The trial included checks for hardware, software, and reliability of the unmanned electric vehicle — dubbed Evocargo N1.

#2- Ajman to accept card payments on public transport: Ajman Transport Authority has inked an agreement with global digital payments firm BPC to introduce its smart mobility service, O-City, on public buses in Ajman, according to a press release. The agreement will allow commuters to pay for their trips directly with bank cards. The accompanying mobile application will also allow commuters to track public buses in real-time, view their trip histories, and purchase tickets online.

BANKING-

Sadad Ajman is getting an upgrade: First Abu Dhabi Bank (FAB) and its subsidiary Magnati will collaborate to develop new solutions for Ajman’s government digital payment platform Sadad Ajman and its digital wallet, after inking a service agreement with the emirate’s Department of Finance, Wam reports. Per the upgrades, the multi-channel payment platform will support various payment methods, including different types of bank cards, payment points, and the Ajman wallet, and include value-added payment features, such as enabling digital wallets like Apple Pay and Samsung Pay. Ajman government’s prepaid electronic payment cards will also be rolled out onto the platform with features and benefits.

Background: Sadad Ajman was launched in 2019, in a bid to automate and unify government revenue collection. The platform allows users to securely settle fees for government and independent services through multiple channels and payment plans.

TOURISM-

Abu Dhabi + Dubai cultural institutions join forces: Abu Dhabi’s Department of Culture and Tourism inked an agreement with the Dubai Culture and Arts Authority to collaborate on museum, archaeology, and heritage initiatives, including research, training, and conferences, according to a statement from the Abu Dhabi Media Office.

CONSTRUCTION-

Emirates Steel will partner with Malaysian steel structure firm Eversendai to supply steel for a project in Saudi Arabia’s Neom, according to a press release. Under the agreement, Emirates steel will provide its low-carbon premium steel beams for the construction of the Trojena Ski Village in Neom.

US Investment banking revenues are picking up after a two-year slump

It was a good quarter for investment banks: The five largest investment banks in the world — Goldman Sachs, JPMorgan Chase, Bank of America (BofA), Morgan Stanley, and Citigroup — posted their best quarter in over two years, the Financial Times writes. All five of the banks outperformed the S&P 500 over the past three months, while all of them but one reported higher-than-anticipated revenues — combined they reported USD 8.2 bn in investment banking revenues.

By the numbers: During 2Q, JPMorgan’s investment banking revenues surged 46% y-o-y to reach USD 2.5 bn, driven by increased fees, according to the lender’s earning release (pdf). Bank of America saw a 29% y-o-y rise in corporation investment banking fees to USD 1.6 bn, according to its earnings release (pdf). Morgan Stanley exceeded expectations with a 51% y-o-y jump in investment banking revenues, which sat at USD 1.62 bn during the quarter, boosted by heightened fixed income underwriting. Citigroup’s investment banking revenue jumped 60% y-o-y to USD 853 mn and Goldman Sachs’ investment banking fees saw a modest 21% y-o-y rise to USD 1.73 bn.

Dealmaking is picking up thanks to more interest rate visibility: Corporate banking clients are more comfortable relying on “bread-and-butter” banking services such as transaction advisory and debt offerings thanks to a steadier economic backdrop, according to the Wall Street Journal. Bankers are hopeful that a two-year dealmaking lull is about to come to an end with clever visibility on interest rates.

Debt underwriting led investment banking revenues, soaring over 50% y-o-y to reach USD 3.7 bn among the top five banks — debt-related fees surged as companies capitalized on stable interest rates to refinance or secure new debt.

Revenues from M&As saw a modest 25% y-o-y increase in 2Q, reaching USD 2.7 bn, according to FT. Despite fewer large transactions closing this year, high-value transactions are on the rise.

MARKETS THIS MORNING-

Asian markets are in the red this morning as chip-related stocks fell on Trump’s comments on Taiwan (we have more in What We’re Tracking Today), and news of potential restrictions on US exports made the rounds. Japan’s Nikkei is down 2.7%, while the Topix and Kospi both fell 1.3%. US futures inched higher after a bad day for the Nasdaq.

ADX	9,168	+0.1% (YTD: -4.3%)
DFM	4,132	+0.5% (YTD: +1.8%)
Nasdaq Dubai UAE20	3,577	+0.5% (YTD: -6.9%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.9% o/n	5.1% 1 yr
TASI	12,158	+0.6% (YTD: +1.6%)
EGX30	28,340	+1.8% (YTD: +13.8%)
S&P 500	5,588	-1.4% (YTD: -17.2%)
FTSE 100	8,187	+0.3% (YTD: +5.9%)
Euro Stoxx 50	4,891	-1.1% (YTD: +8.2%)
Brent crude	USD 85.08	+1.6%
Natural gas (Nymex)	USD 2.05	+0.7%
Gold	USD 2,465	+0.2%
BTC	USD 64,298	-0.5% (YTD: +52.1%)

THE CLOSING BELL-

The DFM rose 0.5% yesterday on turnover of AED 350.9 mn. The index is up 1.8% YTD.

In the green: Shuaa Capital (+14.7%), Agility (+4.9%) and Ithmaar Holding (+3.6%).

In the red: Al Salam Sudan (-5.7%), Al Salam Bank (-2.4%) and Parkin Company (-2.3%).

Over on the ADX, the index closed up 0.1% on turnover of AED 1 bn. Meanwhile Nasdaq Dubai also rose 0.5%.

CALENDAR

JULY

13-18 July (Saturday-Thursday): Asia-Pacific Accreditation Cooperation, Dubai.

31 July (Wednesday): Deadline for Sidara to submit another takeover bid to Wood Group.

AUGUST

2 August (Friday): Abu Dhabi Extreme Championship, Mubadala Arena, Abu Dhabi.

3 August (Saturday): UFC Fight Night, Etihad arena, Abu Dhabi.

20-21 August (Tuesday-Wednesday): The World ESG Summit, Dubai.

21-22 August (Wednesday-Thursday): Rex Fuels Global Expo & Conference 2024- Bitumen, Petrochemicals & Products, Dubai.

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

25 August (Sunday): Deadline to register for the AI Challenge.

Signposted to happen sometime in mid-August:

New regulations around telemarketing calls will go into effect

SEPTEMBER

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

10-11 September (Tuesday-Wednesday): MENA PPP forum, Jumeirah Emirates Towers, Dubai.

10-11 September (Tuesday-Wednesday): MENA District Cooling Projects & MENA Cool Forum, Grand Hyatt Dubai, Dubai Healthcare City, Dubai.

11-12 September (Wednesday-Thursday): MENA oil and gas digitization conference, Abu Dhabi.

16-18 September (Monday-Wednesday): World Utilities Congress, Abu Dhabi.

23-25 September (Monday-Wednesday): WorldFreezonesOrganization’s Annual International Conference and Exhibition, Dubai.

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

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

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

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.

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

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

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

15 October (Tuesday): Deadline for the European Commission to make a decision on its probe into e&’s acquisition of PPF’s Eastern European assets.

21-22 October (Monday-Tuesday): Port Development MEA Forum, Dubai.

21-22 October (Monday-Tuesday): Roads, Bridges, Tunnels MENA Conference, Dubai.

21-22 October (Monday-Tuesday): The Alternative Investment Summit, Dubai.

24-27 October (Thursday-Sunday): International Sports Medicine Conference, Dubai.

26-27 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.

NOVEMBER

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

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

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

4-7 November (Wednesday-Saturday): 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.

11-14 November (Monday-Thursday): Abu Dhabi International Petroleum Exhibition & Conference, Abu Dhabi.

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

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

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.

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

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

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

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

9-12 December (Saturday-Thursday): Abu Dhabi Finance Week, Abu Dhabi.

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

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

JANUARY 2025

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

FEBRUARY 2025

24-25 February (Monday-Tuesday): 3rd World Passenger Experience Forum, Dubai.

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

APRIL 2025

16-17 April: Global Ports Forum, Dubai.

OCTOBER 2025

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

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-Wednesday): Make-A-Wish International’s Global Wish summit, Abu Dhabi.
TBD: The Middle East Electric Vehicle Show, Expo Center Sharjah.
TBD: e& will complete Adnoc’s private 5G network.

Signposted to happen sometime in 2028:

Abu Dhabi to host the 47th Chess Olympiad.

Signposted to happen sometime in 2029:

Dubai to host the International Conference on Computer Vision.

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