Economic diversification to drive 5.7% growth this year, FinMin says

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Arab Health 2024 wraps today + The Abu Dhabi Arbitration Center goes live

Good morning, ladies and gents. We bring you yet another meaty issue today, with everything from fresh economic growth projections to more updates from the penultimate day of Arab Health 2024.

THE BIG STORY here at home is the Finance Ministry’s expectation that continued economic diversification will drive the economy to grow 5.3% this year.

^^ We have the full rundown on this story and others in this morning’s news well, below.

TODAY IS THE START OF A NEW MONTH- Here are the key news triggers on which to keep your eyes on during the first few weeks of February.

PMI: S&P Global will publish the UAE’s PMI figures for January on Monday, 5 February, while Dubai’s figures will be out on Thursday, 8 February.

PUBLIC SERVICE ANNOUNCEMENT-

#1- You’re going to be paying more at the pump starting today: The Energy Ministry’s Fuel Pricing Committee increased retail fuel prices for February yesterday, following three consecutive months of slashing prices. The rundown:

Super 98 is now AED 2.88 per liter, up 2.1%;
Special 95 is now AED 2.76 per liter, up 1.8%;
E-Plus 91 is AED 2.69 per liter, up almost 2%;
Diesel is adjusted to AED 2.99 per liter, down 0.33%.

HAPPENING TODAY-

#1- The Arab Health Exhibition 2024 concludes today in Dubai. Arab Health is one of the two largest regional healthcare conferences to take place every year. It takes place at Dubai World Trade Center.

#2- The Abu Dhabi Arbitration Center is live: The Abu Dhabi International Arbitration Centre (arbitrateAD) launches today, Wam reports. The center’s team includes Arnold & Porter Global Chair of International Arbitration Practice Maria Chedid (bio), who will serve as the first woman president of an arbitral court in the region.

#3- OPEC+ members will review the oil cartel’s ongoing production cuts during a Joint Ministerial Monitoring Committee today, Reuters reports. But don’t expect any breaking news from the meeting, as several OPEC+ sources told the newswire that they expect any decisions regarding extending production cuts into April to come later in the month.

#4- Trucks weighing over 65 tonnes will be subject to fines of up to AED 15k if they operate on federal roads as of today. That’s when the four-month grace period on the amended federal law on heavy vehicles elapses. The amendments, which came into effect on 1 October, granted a four-month window for vehicle owners and companies to adjust before penalties came into force. All heavy vehicles operating on the roads fall under the law’s purview, with only security, military, police, and civil defense vehicles exempt.

#5- Emiratis traveling to the UK can apply for entry using the newly introduced electronic travel authorization (ETA) starting today, the UAE Embassy in London said. The ETA will allow Emiratis to travel an unlimited number of times within the span of two years for GBP 10. You can apply here.

REMEMBER- An ETA only allows you to travel to the destination, but you will still need to obtain approval for entry into the UK through an eGate or a border force officer, Khaleej Times notes.

#6- Our friends at Mashreq are calling for nominations for its board of directors, with the period for submission open from today to Monday, 12 February, the bank said in a bourse disclosure (pdf). The bank will be electing seven new members, according to the disclosure.

HAPPENING SOON-

Ramadan could start as early as Monday, 11 March, Gulf Business reports, citing Emirates Astronomical Society Chairman Ibrahim Al Jarwan. Dubai’s Islamic Affairs and Charitable Activities Department had previously noted the start of the holy month would land on Tuesday, 12 March, but it all depends on the moon, with the UAE’s moon-sighting committee readying to head to the telescopes when it’s almost time.

One thing’s certain, though: Fasting will last 29 days, bringing Ramadan to an end on either Tuesday, 9 April or Wednesday, 10 April, depending on which predictions you’re trusting, Gulf Business also reports. The Human Resources Ministry will confirm the date of Eid Al Fitr — and its accompanying week-long holiday — during the fasting month.

DATA POINT-

#1- Oil stockpiles at Fujairah Port slumped to a five-week low, falling 4.5% week-on-week during the week ending on 29 January, on the back of jet fuel inventories dropping 21%, according to S&P Global. However, total stockpiles have inched up by 2.1% y-o-y since the end of 2023. Oil exports — not including fuel oil — climbed 12% m-o-m, reaching 414k barrels per day in January.

#2- Sharjah’s real estate transactions rose 13.1% y-o-y in 2023 to reach AED 27.1 bn, the highest level since 2017, Mubasher reports. The number of investors’ nationalities rose 21.2% y-o-y to 103 during the year, with the number of non-Arab foreign investors rising 165% in trading volume.

#3- Dubai is set to defy the trend of a global slump in luxury residence prices, with prices in the Emirate expected to rise 5.9%, Bloomberg reports, citing a Savills report. Despite an anticipated slowdown in prime residential markets worldwide, Dubai is expected to experience a growth in prices by 5.9%. The report expects major cities including Hong Kong, New York, and San Francisco to see a slowdown in high-end residential property value growth this year, penciling in a 0.6% growth rate compared to 2.2% in 2023.

THE BIG STORY ABROAD-

Two big stories are vying for your attention this morning, one of them in our neighborhood, and one in the US of A.

#1- Is Egypt about to devalue its currency? Speculation is rampant in Cairo that the Sisi administration is closing in on a much larger financing agreement with the International Monetary Fund, giving it as USD 9 bn or more in funding over a multi-year period in return for a commitment to reforms including devaluing (or floating) its embattled currency.

Egyptian shares closed sharply down yesterday as traders “adopted a ‘sell the fact’ mood, with equities being sold off as rumors about an impending pound depreciation intensify,” Bloomberg writes, citing Dubai-based Emre Akcakmak, a portfolio manager at East Capital International.

EnterpriseAM Egypt has reported that an IMF delegation in Cairo has extended its stay until today in the hope of reaching a staff-level agreement. The news comes as Egypt’s central bank moved to sop up excess local-currency liquidity in the market amid long lines at banks, reminding financial institutions yesterday of longstanding limits on cash withdrawals for both companies and individuals.

#2- The US Federal Reserve has left rates unchanged — and signaled that a rate cut in March is unlikely. It’s the fourth meeting in a row to see the Fed leave rates at a nearly 23-year high of 5.25%-5.50%. “Based on the meeting today, I would tell you that I don’t think it’s likely that the committee will reach a level of confidence by the time of the March meeting,” Fed boss Jay Powell said at a presser after the meeting.

The story is on every front page this morning: Reuters | FT | CNBC | WSJ | Associated Press | NYT | Bloomberg.

#3- On the issue of regional tensions and the Red Sea:

Iran has threatened a “decisive response” if the US strikes its “territory, or its interests or citizens abroad,” Iran’s UN Ambassador Amir Saeid Iravani said, according to Iranian state media. The statement came as the US Navy launched another attack against Houthi infrastructure in Yemen.
The European Union is set to send ships into the Red Sea by mid-February, Reuters writes, in a bid to help deter Houthi attacks on shipping. EU forces will not participate in attacks on Houthi positions, the bloc’s foreign policy chief added.

CIRCLE YOUR CALENDAR-

Conference season is heating up:

Dubai will host the Family Office Roundtable (FORT) Global this Friday, 2 February at the Museum of the Future, according to a press release. The invite-only event will center discussions on the international finance and investment communities, influential family offices, government members and dignitaries, with nearly 10k guests, hailing from over 35 countries.

The Mubadala Abu Dhabi Tennis Open will take place from Saturday, 3 February to Sunday, 11 February at Zayed Sports City’s International Tennis Centre. The tournament will feature big names including four-time Grand Slam champion Naomi Osaka, plus Elena Rybakina, Ons Jabeur, Maria Sakkari, and Barbora Krejčíková, reports The National.

Young entrepreneurs can pitch early-education startup ideas at the AbuDhabi Youth Challenge: Techstars Startup Weekend, running for three days from Friday, 2 February, to Sunday, 4 February at Cloud Spaces ADGM in Abu Dhabi. The top three teams will get AED 30k.

The Investopia Summit will take place from Wednesday, 28 February, to Thursday, 29 February, in Abu Dhabi. The two-day event will run under the theme “Emerging Economic Frontiers: Investing in Fast-Growing Sectors in the New Economy,” gathering investors, government officials, and entrepreneurs to explore investments in strategic markets.

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

UAE economy to grow by 5.7% in 2024, says FinMin undersecretary

The Finance Ministry expects the economy to grow at a 5.3% clip this year, up from its 3.1% forecast for 2023, driven by economic diversification efforts, Finance Ministry Undersecretary Younis Haji Al Khouri told Wam. Non-oil GDP is expected to grow at a 4.7% y-o-y clip in 2024, Al Khouri said.

The projection is slightly more bullish than most others: The World Bank expects to see 3.7% growth in 2024, up from the previous estimate of 3.4% in the June edition of its report, while The Arab Monetary Fund sees the GDP growing at a 4.3% clip. On the more bullish side, S&P Global is more in line with FinMin’s forecast, saying earlier this month that the economy could accelerate to more than 5%. The Central Bank of the UAE is even more bullish, saying last month it sees the economy growing at a 5.7% clip.

The non-oil GDP projection is also more bullish: The International Monetary Fund sees the non-oil sector maintaining its 4% growth in 2024, while Oxford Economics expects non-oil GDP to grow 3.8% in 2024.

ICYMI- The positive growth outlook for the Emirates’ economy comes amid expectations of a global economic slowdown, with the IMF slashing its outlook for the regional economy to 2.9% in FY 2023-24, marking a 0.5% downgrade from its previous outlook in October on the back of Saudi Arabia’s temporary oil cuts, according to its latest update (pdf).

Central Bank keeps rates steady following Fed decision

The Central Bank of the UAE (CBUAE) kept interest rates steady after the US Federal Reserve also left interest rates unchanged yesterday, CBUAE said in a statement (pdf). The central bank kept its overnight deposit rate at 5.40% and the overnight lending rate at 5.90%, 50 basis points above the base rate.

REMEMBER- The UAE’s overnight deposit rate, or the base rate on overnight deposit facilities, is anchored to the US Federal Reserve’s interest rates as the AED is pegged to the USD.

Saudi Arabia followed suit, too: The Saudi Central Bank (SAMA), which also maintains a currency peg to the USD, left its lending rates unchanged.

Emirates NBD to lend Sidara an AED 183.65 mn sustainability-linked loan

Emirates NBD will extend an AED 183.65 mn sustainability-linked loan (SLL) to infrastructure firm Sidara (formerly Dar Group), according to a Dubai Media Office statement. This agreement marks Sidara’s first sustainability-linked loan.

The loan will fund Sidara’s working capital requirements, including its efforts towards meeting net-zero targets, by “tying financial incentives to its sustainability performance,” the statement said, without clarifying the exact nature of the incentives.

SOUND SMART- SLLs link loan interest and fees to the borrower’s performance in meeting predetermined sustainability targets. A lender might reduce interest rate margins if the borrower checks off agreed-upon emission targets or upcharge them if they don’t. Before inking the agreement, the parties typically hash out the targets and performance measurement indicators.

Not the first SLL that Emirates NBD has handed out: The Dubai-based bank raised AED 6.43 tn (USD 1.75 bn) for the GCC’s first loan back in March 2021, Bloomberg reported previously. The loan saw participation from nearly 20 banks and linked sustainability metrics, including water conservation and gender diversity in top management roles, with the payouts. In December, the bank also signed an agreement with UAE-based luxury retailer Chalhoub Group for the firm’s first loan, although the value of the loan was undisclosed.

Background: London-based Dar Group recently rebranded to Sidara, a holding firm with 17 brands under its belt, including Middle East-focused Dar. The company has worked on projects like Doha Hamad International Airport, Al Wasl Plaza at Dubai’s Expo 2020, and the University of Dubai.

Five Holdings bags Spanish company Chioro for AED 210.26 mn

Dubai-based real estate and hospitality group Five Holdings completed the acquisition of Spanish company Chioro for AED 210.26 mn (EUR 52.75 mn), in a bid to diversify its property portfolio, according to a Nasdaq Dubai disclosure. The purchase agreement hands Five ownership of El Hotel Pacha in Ibiza and its adjacent land plot, the statement said, adding that it previously had leasing rights to the hotel.

Five’s plans in Ibiza: The company is looking to develop the land plot into a residential development dubbed Pacha Residences.

Payment plan: Five Holdings is shelling out some AED 44.8 mn (EUR 11.3 mn) in equity financing for the purchase, with a deferred payment plan additionally set up for AED 15.9 mn (EUR 4 mn). The remaining AED 149.4 mn (EUR 37.5 mn) will come from an external loan.

The Pacha brand is not new to Five: Five Holdings previously acquired Spanish hospitality company Pacha Group for AED 1.21 bn (EUR 303 mn) in October, funded via a green bond issuance and revolving credit facility. The purchase handed Five Holdings’ ownership of the Pacha Nightclub in Spain’s Ibiza island, in addition to Destino Pacha Hotel.

OTHER M&A NEWS-

AD Ports Group’s logistics subsidiary Noatum has completed its acquisition of 100% of Spain-based logistics outfit Sesé Auto Logisticsfor EUR 81 mn, according to a press release. The acquisition has been sanctioned by all European regulatory bodies. We first got wind of the buyout in October 2023, when the move was still pending regulatory approval.

What happens next? Sesé Auto Logistic will be fully integrated into Noatum starting this month, according to the statement. The acquisition will allow the AD Ports subsidiary to offer integrated end-to-end logistics solutions, including RoRo (roll-on, roll-off) handling, vehicle transportation, and delivery in Spain. The outfit will be rebranded as Noatum Auto Logistics, with efforts to integrate employees ongoing, the statement said.

About Sesé:The company operates in most European countries, with a fleet of upwards of 200 trucks, with offices in Spain, Germany, Poland, Czech Republic, and Hungary.

Noatum has been on an expansion spree: The outfit rebranded AD Ports’ freight-forwarding arm Micco Logistics to Noatum Logistics Middle East earlier this week, taking over Micco’s operations as the freight forwarder for upwards of 80% of Abu Dhabi’s oil, gas, and petrochemical projects. Noatum acquired 100% of APM Terminals Castellón in Spain for EUR 10 mn earlier this month, as the company looked to consolidate its operations in the country.

REMEMBER- AD Ports Group finalized its acquisition of Spain-based Noatum in mid-2023, after receiving regulatory greenlight, with the outfit being valued at EUR 660 mn at the time.

DHA introduces three-month permit for medical professionals + more from Arab Health

The Dubai Health Authority has introduced a three-month permit for visiting medical professionals in the UAE during Arab Health 2024, Gulf News cites DHA Health Regulation Sector CEO Marwan Al Mulla as saying. Medical professionals cannot apply for the service directly, and will need to apply via the DHA’s online licensing system Sheryan with a licensed healthcare facility’s medical director account. Approved permits are issued within one day.

The pitch: The permit allows medical professionals to familiarize themselves with Dubai’s local health regulations and begin the process of applying for a full professional license.

RESEARCH AND DEVELOPMENT-

The Health Ministry partnered with Dutch publishing company Elsevier to launch a health research platform housing over 43.8k papers contributed by 4k researchers, according to a ministry press release. The platform will source data, including up-to-date health information and research, from Elsevier’s Scopus database.

DHA and the Hamdan bin Rashid Al Maktoum Foundation partner for healthcare advancements: The Dubai Health Authority (DHA) and the Hamdan bin Rashid Al Maktoum Foundation inked an agreement during the Arab Health exhibition to cooperate in education, medical training, and specialized research, Wam reports. This will include exchanging expertise, joint research, and organizing training programs and conferences.

DECARBONIZATION-

The Health Ministry is also launching a carbon footprint analysis project tomeasure and cut carbon emissions in major healthcare facilities, a separate ministry press release reads. The ministry has already been using carbon footprint analysis to identify and measure greenhouse gas emissions in major UAE hospitals, including Sheikh Khalifa Medical City in Ajman and Sheikh Shakhbout Medical City in Abu Dhabi.

PUBLIC SERVICE-

Some 313 schools in the country’s northern emirates are going to be getting more comprehensive healthcare services thanks to the Emirates Health Services’ newly launched project, named Basma, according to a press release.

Issuing fatwas without a license can soon cost you AED 10-200k

Issuing fatwas without a license will come with a hefty fine: The Federal National Council (FNC) greenlit a new draft law that regulates the issuance of Islamic “fatwas” (religious edicts) in the Emirates, Emarat Al Youm reports. The law deems the UAE Council for Fatwa the sole entity authorized to issue fatwas in the Emirates, and penalizes individuals and organizations who publish fatwas without a license.

The penalties:A range of AED 10k-200k worth of fines will be imposed for unauthorized issuance or publication of fatwas, as well as any public challenges to council-issued fatwas. The fines will also be imposed on fatwas that incite hatred, sectarianism or public discord within society. If a violation is repeated more than once, the penalty will be doubled. The court can also close a violating institution or block a website for up to one year.

Background: The law, proposed earlier this month, aims to reform the Fatwa Council and develop its framework to a more “modern model” that responds to global developments, we reported earlier.

The UAE was the GCC’s second-largest insurance market in 2022, Alpen says

The UAE was the second-largest ins. market in the GCC in 2022 after Saudi Arabia, and 36th biggest globally in gross written premiums (GWP), according to UAE-based investment banking advisory firm Alpen Capital’s GCC Ins. Industry report (pdf). This growth is attributed to favorable economic conditions, rising oil prices, eased visa regulations, and structural enhancements. The country accounted for 39.3% of the GCC’s total GWPs in 2022, reaching USD 12.9 bn (AED 47 bn), primarily fueled by increases in property and liability and health ins. premiums.

SOUND SMART- Gross written premiums are ins. lingo for premiums that ins. providers charge in exchange for taking on risk.

The UAE had the highest penetration rates in both life and non-life ins. segments in the GCC in 2022, with a total ins. penetration rate of 2.5%, higher than the GCC average of 1.5%.

In terms of GWP: The UAE leads the GCC in the life ins. segment with a GWP of USD 2.8 bn in 2022. The non-life ins. sector in the UAE constituted 78.5% of the total GWP on the back of regulatory changes and higher ins. premium rates driven by a rise in claims post the covid-19 pandemic.

LOOKING AHEAD-The UAE’s ins. market is poised to grow at an annual rate of 4.9% to USD 17.9 bn (AED 65.74) by 2028, primarily driven by growth in the expansion of ins. to the northern emirates, the report said. The life ins. segment is expected to grow at a CAGR of 3.9% to USD 3.5 bn in 2028, as the population continues to grow while awareness of risk ins. and demand increase, Alpen said.

ALSO- The UAE is rolling out its unemployment ins. scheme, which is expected to attract more workers to the non-life ins. segment, Alpen said.

THE REGIONAL ANGLE-

The ins. market in the GCC is anticipated to grow at a CAGR of 5.3% to USD 44.4 bn (AED 163 bn) in 2028, after growing 15.2% y-o-y to USD 32.7 bn in 2022. This growth was driven by economic recovery post-covid and the implementation and development of mandatory health insurance across the GCC countries.

ADCB, CBD post solid 2023 earnings

Earnings season continues to be in full swing, with a handful of banks and other companies releasing results yesterday, including Abu Dhabi Commercial Bank, Commercial Bank of Dubai, Tecom Group, and Q Holding.

ABU DHABI COMMERCIAL BANK-

ADCB net income up 38% in 2023: ADX-listed Abu Dhabi Commercial Bank (ADCB) saw its net income rise 38% y-o-y to a record AED 8.2 bn in 2023, on the back of “strong credit expansion in a higher interest rate environment and growth across diverse income streams,” according to its earnings release (pdf). The bank recorded a 21% y-o-y increase in its net income from interest and Islamic financing during the year, amounting to AED 12.4 bn.

The bank also extended a record amount of loans and mortgages, it said. Its credit card issuing business also grew to capture a 21% market share in the UAE, becoming the top issuer of credit cards in the UAE in 4Q 2024, according to the statement.

On a quarterly basis: The lender’s net income jumped 28% y-o-y to AED 2.45 bn in 4Q 2023, while net income from interest and Islamic financing surged 17% y-o-y during the same period to AED 3.41 bn.

Dividends: The board proposed a total payout of AED 4.1 bn in dividends, accounting for 50% of net income, the bank said.

COMMERCIAL BANK OF DUBAI-

CBD top line jumps 45.2% in 2023:Commercial Bank of Dubai ’s (CBD) net income surged 45.2% y-o-y in 2023 to a record AED 2.65 bn due to higher revenues and strong loan growth, according to the lender’s financials (pdf). The bank saw its operating income climb 29.5% y-o-y to AED 4.9 mn on the back of higher net interest income and improved fee and commission income, the lender said.

The bank’s assets increased 11% y-o-y to AED 129 bn, while net loans and advances hit AED 83.3 bn, marking a growth of 11.5% y-o-y. Customer deposits also grew 8.9% y-o-y to AED 88.3 bn in 2023.

Dividends: The board proposed a payout of some AED 1.2 bn in dividends, it said.

TECOM GROUP-

Business district developer Tecom Group saw its net income surge 49% y-o-y to a record AED 1.1 bn during 2023, driven by strong asset performance across all business sectors, according to the company’s latest earnings release (pdf). Tecom’s top line rose 10% y-o-y to AED 2.2 bn in 2023, primarily fueled by high occupancy rates, with commercial and industrial portfolios seeing 89% occupancy, and industrial lands seeing 94%.

On a quarterly basis: The real estate company’s net income rose 259% y-o-y to AED 311 mn in the final quarter of 2023, while revenues rose 17% y-o-y to AED 579 mn, according to the earnings release.

An increase in new customers also helped drive growth: “While the majority of our revenue is attributed to retained customers, we are also pleased with an almost 15% increase in the number of new customers from 2022,” Tecom Group CEO Abdulla Belhoul said.

Positive outlook for the year: “We anticipate the demand-induced growth momentum to be sustained in 2024 and beyond,” he added.

Dividends: The company’s board proposed a dividend payout of AED 400 mn in April for 2H 2023, according to the statement.

Q HOLDING-

ADX-listed IHC subsidiary Q Holding saw its net income fall 30.2% y-o-y to AED 574 mn during 2023, according to the investment company’s earnings release (pdf). The company witnessed a 38% y-o-y surge in its top line to AED 994 mn, and recorded a 9% y-o-y increase in total assets reaching AED 21.31 bn.

Apex Investment’s vice chairman and board members resign + Edge appoints new head of missiles and weapons cluster

Three board members have resigned from ADX-listed Apex Investment’s board following net losses in 2023, according to an ADX disclosure (pdf). Apex Investment, formerly Ras Al Khaimah Cement, saw Vice Chairman Elham Al Qasim, and board members Mansour Al Mansouri and Issa Khoury, resign effective Monday.

Background: The company posted a net loss of AED 58.4 mn and an 11.8% y-o-y drop in revenues to AED 723.5 mn in 2023.

Edge appoints new cluster president: Defense conglomerate Edge Group appointed Saif Al Dahbashi (LinkedIn) as president of the group’s missiles and weapons cluster yesterday, according to a company statement. Al Dahbashi succeeds Hamad Al Marar, who was tapped as group managing director and CEO on Monday. He has over 18 years of experience, including heading Edge’s military maintenance, repair and overhaul arm Al Taif.

About the cluster: The missiles and weapons cluster is one of five Edge clusters dedicated to designing and developing smart weapons, firearms, and munitions. As cluster president, Al Dahbashi will oversee Edge defense manufacturer companies Al Tariq, Caracal, Halcon, and Lahab.

Dubai Crown prince attends wedding in Majlis Al Bateen

There’s wedding bells on UAE X, with the hashtag مجلس البطين (Majlis Al Bateen) trending after UAE President Sheikh Mansour bin Zayed Al Nahyan and Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan attended the wedding celebration of Thani, the son of Thani Murshid Chairman Mohamed Thani Murshed Al Rumaithi, and Karima, the daughter of Abdulla Ghurair Al Aujan Al Qubaisi at the majlis. The Crown Prince wished the newlyweds a prosperous life together.

Abu-Dhabi based company takeover of the telegraph paused

A couple of business stories are driving the conversation on the UAE in the foreign press this morning:

#1- UK halts Telegraph takeover: UK Culture Secretary Lucy Frazer issued an order preventing any further changes to the ownership of The Telegraph until the UK government completes its investigation into the takeover of the newspaper by Abu Dhabi-backed RedbirdIMI, Bloomberg reports.

#2- The UAE’s USD 30 bn climate fund Alterra, which was launched at COP28is also getting ink from the Financial Times, which notes that its launch comes at a time when “investible dry powder” is peaking. The article also gives a nod to the growing trend of equity managers inaugurating equity or debt private climate capital funds.

Turkey’s Aselsan sets up Abu Dhabi office + Moody’s upholds DIFC’s rating. PLUS: New flights and a mixed bag of news

MANUFACTURING-

Turkish arms manufacturer Aselsan inauguratedan office in Abu Dhabi on Tuesday, according to a company statement. The new office will attend to existing and potential clients in the UAE and the bigger Gulf region as part of Aselsan’s export-oriented growth strategy.

Aselsan is no stranger to UAE: The company previously inked a preliminary agreement with Emirati defense contractor Edge Group in October that saw the latter earmark a USD-denominated bn investment in Turkey’s arms sector, Bloomberg reported.

CAPITAL MARKETS-

Moody’s has upheld the long-term issuer ratings of the Dubai International Financial Centre (DIFC) at BAA3, Al Khaleej reports. The ratings agency also assigned a BAA3 rating with a stable outlook to the center’s USD 700 mn (AED 2.6 bn) sukuk, scheduled to mature in November 2024. The rating signifies Moody’s perception of DIFC’s strong credit profile within the BAA3 category, underpinned by a steady income stream derived from a diverse portfolio of tenant and investment properties.

AVIATION-

#1- Two weekly flights between Abu Dhabi and Haikou, China have been added to Abu Dhabi Airports Company and Chinese airline Hainan Airlines’ routes, after the two companies inked an agreement yesterday, according to a press release. The flights will take off from and land in Abu Dhabi Airports’ recently inaugurated Terminal A, which saw some 28 airlines fly in November. Hainan is the first Chinese airline in a decade to operate regular flights to and from Abu Dhabi, according to the release.

#2- Etihad Airways and Air Serbia now have a codeshare agreement, providing Etihad customers access to 12 Southeast European destinations through Air Serbia’s Belgrade hub, Times Aerospace reports. Etihad customers can now reach Air Serbia’s network more easily from key gateways like Athens, Milan, Rome, and Vienna.

ENGINEERING-

Engineering sector to get an upgrade: Investment Corporation of Dubai (ICD) ownedfacilities management group Imdaad inked a three-year MoU yesterday with the Arab Operations and Maintenance Council (OMAINTEC) to develop the skills of professionals conducting maintenance and reliability tasks in the national engineering sector, according to a press release. The two players will also conduct joint research to address the sector obstacles, potentially exploring partnership frameworks for legislative and regulatory affairs.

SUSTAINABILITY-

Ajman Bank and Mastercard for sustainability: Ajman Bank is partnering with Mastercard to use the Carbon Calculator, revealing purchase-related carbon emissions to consumers and facilitating support for reforestation via Mastercard’s Priceless Planet Coalition, according to a press release. Ajman Bank also inked the UAE Sustainable Cards Pledge, vying to make their cards made out of more sustainable materials.

INS.-

Car ins. company Shory partners with National General Ins. (NGI) to offer comprehensive car ins. products for non-GCC vehicles, according to a press release. NGI will use Shory’s digital platforms to expand non-GCC car ins. sales, while Shory will offer a broader range of comprehensive car ins. policies for such vehicles.

INFRASTRUCTURE-

Yas Island will become more inclusive for people of determination and the elderly, after Abu Dhabi’s Department of Community Development and Aldar Properties signed an agreement to launch a project that will make public facilities and the lived-environment more inclusive and accessible, the Abu Dhabi Media Office reports. The project is slated for an initial pilot phase on Yas Island this year and is slated for completion by 2025.

TRADE-

Dubai-based businesses kicked the tires on potential investments in Vietnam and Indonesia in an event organized by the Dubai International Chamber, which aimed to introduce increased trade and investment between Dubai and the two Southeast Asian countries, according to a press release.

EDUCATION-

American Hospital Dubai inked an MoU with Baylor College of Medicine (BCM) to establish a medical college in Dubai, Gulf News reports. Under the partnership, BCM will operate with its own curriculum from within the American Hospital in Dubai.

REAL ESTATE-

Swiss developer DHG Properties plans to debut its first AED 500 mn Dubai residential project next month, according to Trade Arabia. The 430-unit development will be situated in the Jumeirah Village Circle.

Aramco could float more shares on Tadawul

More Aramco shares up for grabs? Saudi Aramco will reportedly move forward with stalled plans to list more shares on the Tadawul — in what is set to be one of the biggest share sales in recent years, sources told Bloomberg. The oil giant is looking to raise at least SAR 40 bn (USD 10 bn) in proceeds from the offering.

Aramco made its Tadawul debut in 2019, raising over USD 29 bn in what remains to be the biggest IPO in history. The company floated a 1.5% stake for a top of the range price of SAR 32 a piece in a transaction that valued the company at USD 1.87 tn.

The Enterprise take: Aramco would have to float 1.3 bn shares if it were to raise the minimum target of SAR 40 bn at yesterday’s closing share price. The share price fell 2.2% to SAR 30.6 per share on yesterday’s close.

Israel’s war on Gaza is “exacerbating an already challenging environment for neighboring countries and beyond,” warns the IMF in its latest Regional Economic Outlook (pdf) for the Middle East and North Africa,. The report also cautions that if the conflict spreads outside the enclave and disruption in the Red Sea escalates, the region could face a “severe economic impact, including on trade and tourism.”

ICYMI- The Fund on Tuesday cut its growth projection for the region 0.5 percentage points to 2.9%.Disclaimer: The IMF’s outlook for the region and headline growth figures are based upon the assumption that the war on Gaza and wider disruptions stemming from it start to ease in the first quarter of 2024. However, with Israeli military officials predicting the conflict continuing throughout the year, Israeli ministers calling for ethnic cleansing and settlements in Gaza, and ceasefire negotiations hitting roadblocks, the conflict shows few signs of ending soon.

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DFM	4,169	0% (YTD: +2.7%)
Nasdaq Dubai UAE20	3,806	-0.2% (YTD: -0.9%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.2% o/n	5.0% 1 yr
TASI	11,796	-1.6% (YTD: -1.4%)
EGX30	28,281	-6.8% (YTD: +13.6%)
S&P 500	4,887	-0.8% (YTD: +2.5%)
FTSE 100	7,630	-0.5% (YTD: -1.3%)
Euro Stoxx 50	4,648	-0.3% (YTD: +2.8%)
Brent crude	USD 81.71	-1.4%
Natural gas (Nymex)	USD 2.13	+1.6%
Gold	USD 2,057	-0.5%
BTC	USD 42,578	-1.8% (YTD: +0.8%)

THE CLOSING BELL-

The ADX fell 0.1% yesterday on turnover of AED 1 bn. The index is down 0.7% YTD.

In the green: Fujairah Cement Industries (+5.6%), National Company for Tourism and Hotels (+5.6%) and Umm Al Qaiwain General Investment (+4.4%).

In the red: Union Ins. Company (-3.4%), National Bank of Ras Al Khaimah (-3.3%) and Eshraq Investments (-2.6%).

Over on the DFM, the index closed flat on turnover of AED 653.8 mn, while Nasdaq Dubai fell 0.2%.

Asian markets are mixed in early trading this morning after the US Federal Reserve yesterday poured cold water on expectations that it could start cutting interest rates as early as March. The ASX 200, Nikkei, and Shanghai were all in the red, while the Kospi and Hang Seng are (just barely) clinging to the green. Futures point to a soft opening in Europe, with most major benchmarks in the red, while Wall Street could shrug off concerns — futures for the Dow, Nasdaq, and S&P 500 are all in the green at dispatch time this morning.

CORPORATE ACTIONS-

GFH Financial Group sells 3.5% treasury shares to Southern Star Investments: GFH Financial Group signed an agreement to sell 134.3 mn treasury shares, equivalent to 3.5% of its total issued shares, to Southern Star Investments, according to an ADX disclosure.

UAE mediates another Russia-Ukraine prisoner swap

Another UAE-mediated agreement between Russia and Ukraine will see the two warring countries exchange more prisoners, according to a Foreign Ministry statement. Under the agreement, Russia released 207 Ukrainian prisoners — both military personnel and civilians — Ukrainian President Volodymyr Zelensky said (watch, runtime: 1:37). In exchange, 195 Russian soldiers returned from Ukraine, according to Reuters.

UNRWA is still getting UAE backing: UAE Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan expressed the UAE’s “unwavering support” for the UN Relief and Works Agency (UNRWA), in a phone call with UNRWA Commissioner-General Philippe Lazzarini, Wam reports. Al Nahyan highlighted UNRWA’s crucial role amid the circumstances, especially in Gaza. He praised UNRWA’s prompt response to allegations against its staff and urged donor countries to reconsider the suspension of funding, emphasizing the agency’s vital role in providing urgent services to Palestinian refugees.

Background: The US — the agency’s biggest donor — along with the UK, Italy, Canada, Finland, and Australia suspended funding to UNRWA recently over Israeli allegations that several staff members took part in the 7 October attacks. The UN has preemptively fired several employees over the accusations and is investigating the allegations.

Ras Al Khaimah ruler and UK trade envoy discuss boosting economic ties: Ras Al Khaimah Ruler Sheikh Saud bin Saqr Al Qasimi hosted UK trade envoy Gareth Johnson to discuss strengthening trade relations and strategic partnerships, Wam reports. The Ras Al Khaimah Economic Zones Authority (RAKEZ) and the British Chamber of Commerce Dubai also signed an MoU, aiming to improve trade connections and collaborative efforts.

OTHER DIPLOMACY NEWS-

Sharjah Health Authority, Australian delegation talk healthcare: Sharjah Healthcare City and Health Authority head Abdulaziz Al Muhairi held a meeting with an Australian delegation headed by Australian Consul General Bryony Hillis, to showcase potential investments in the UAE’s health sector. (Sharjah24)

CALENDAR

JANUARY

29 January-1 February (Monday-Thursday): Arab Health Exhibition 2024, Dubai World Trade Centre.

31 January-6 February (Wednesday-Tuesday): Emirates LitFest, InterContinental Hotel Festival City.

FEBRUARY

1 February (Thursday): New amendments banning trucks weighing over 65 tonnes to take effect.

1 February (Thursday): Dhow Sailing Race, Abu Dhabi Corniche

1-15 February (Thursday-Thursday): InClassica Dubai International Music Festival 2024, Dubai Opera.

2-29 February (Friday-Thursday): Ras Al Khaimah Art 2024 Festival, Al Jazeera Al Hamra.

2-4 February (Friday-Sunday): Sharjah Classic Cars Festival.

2-4 February (Friday-Sunday): All Africa Festival Abu Dhabi.

2-4 February (Friday-Sunday): Abu Dhabi Youth Challenge Techstars Startup Weekend, ADGM, Abu Dhabi.

3-11 February (Saturday-Sunday): Mubadala Abu Dhabi Opening, Zayed Sports City’s International Tennis Centre.

5-7 February (Monday-Wednesday): Middle East Bunkering Convention, Dubai, UAE.

5-8 February (Monday-Thursday): Medlab Middle East, Dubai.

6-7 February (Tuesday-Wednesday): The Middle East ProcureTech Summit, Dubai, UAE.

7-8 February (Wednesday-Thursday): Sharjah Investment Forum, Al Jawaher Reception and Convention Centre.

8-9 February (Thursday-Friday): International Crop-Science Conference & Exhibition 2024, JW Marriott, Marquis Dubai.

8-11 February (Thursday- Sunday): The UAE Tour Women.

9 February (Friday): Abu Dhabi International Airport to be renamed to Zayed International Airport.

9-11 February (Friday-Sunday): HERO Abu Dhabi, Al Hudayriat Island.

12-13 February (Monday-Tuesday): Breakbulk Middle East conference, Dubai Trade Centre.

12-14 February (Monday-Wednesday): World Government Summit, Dubai.

12-14 February (Monday-Wednesday): Sustainable Aviation Futures MENA Congress, Hotel Dubai Mall.

12-15 February (Monday-Thursday): Future Warehouse & Logistics, Dubai, UAE.

15-25 February (Thursday-Sunday): FIFA Beach Soccer World Cup 2024, Dubai.

18 February (Sunday): Abu Dhabi Run and Ride, Abu Dhabi Corniche.

19-23 February (Monday-Friday): Gulfood 2024, Dubai World Trade Centre.

20-21 February (Tuesday- Wednesday): International Dialogue of Civilizations and Tolerance Conference, Abu Dhabi National Exhibition Centre.

22-24 February (Thursday-Saturday): International Freight Forwarders Conference 2024 Dubai, Hyatt Hotel.

23-25 February (Friday-Sunday): Taste of Dubai Festival, Skydive Dubai.

23 February – 3 March (Friday-Sunday): Maritime Heritage Festival Abu Dhabi.

24 February (Saturday): Ras Al Khaimah Half Marathon, Al Marjan Island.

26-28 February (Monday-Wednesday): Management and Sustainability of Water Resources, Marriott Hotel Al Jaddaf.

27-28 February (Tuesday-Wednesday): Dubai Association Centre Conference, Dubai World Trade Centre.

26-29 February (Monday-Thursday): World Trade Organization Ministerial Conference, Abu Dhabi, UAE.

28-29 February (Wednesday-Thursday): Ras Al Khaimah Investment and Trade Summit, Rak Exhibition Centre.

28-29 February (Wednesday-Thursday): UAE delegation attends ‘Invest in Austria’ conference, Vienna.

28-29 February (Wednesday-Thursday): Third Investopia Summit, Abu Dhabi.

28 February – 1 March (Wednesday-Friday): MENA Transport Congress and Exhibition 2024, Dubai.

29 February-3 March (Thursday-Sunday): Gov Games, Dubai Festival City, Dubai.

MARCH

1-3 March (Friday-Sunday): Art Dubai, Madinat Jumeirah.

5-6 March (Tuesday-Wednesday): MRO Middle East, Dubai Trade Centre.

5-7 March (Tuesday-Thursday): World Police Summit, Dubai World Trade Centre.

5-7 March (Tuesday-Thursday): Dubai Entertainment Amusement & Leisure Exhibition, Dubai World Trade Center.

5-8 March (Tuesday-Friday): Forbes’ Third Annual 30/50 Summit In Abu Dhabi During International Women’s Day

11/12 March (Monday/Tuesday): Start of Ramadan, public holiday.

APRIL

9/10 April (Tuesday/Wednesday): End of Ramadan, public holiday.

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

16-18 April (Tuesday-Thursday): World Future Energy Summit, 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.

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

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

MAY

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

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

14-15 May (Tuesday-Wednesday): Seamless Middle East, 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.

DECEMBER

2-3 December (Monday-Tuesday): National Day, public holiday.

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

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