FAB closes in on acquisition of Turkey’s Yapi Kredi

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WHAT WE’RE TRACKING TODAY

THIS MORNING: DXB had its busiest quarter yet in 1Q 2024 + ADQ sets up investment company in Jordan

Good morning, friends, and happy hump day. It’s another more or less busy day here at home, with the dominant themes driving the news being renewables and AI.

The only major piece of news beyond those two themes is First Abu Dhabi Bank’s play for Turkey’s Yapi Kredi, which seems to be advancing amid negotiations over valuation and pricing. The bank is set to snap up a 61.2% stake for some USD 8 bn if the transaction goes through.

Plus: Emirates Islamic has taken its debut USD 750 mn green sukuk issuance to market, and Fitch has upgraded Ras Al Khaimah’s issuer default rating

WEATHER- It’s another hot and humid day in the UAE, with the mercury hitting 37°C in Abu Dhabi and 36°C in Dubai, with overnight lows between 26-28°C.

PUBLIC SERVICE ANNOUNCEMENT-

No more styrofoam cups in Abu Dhabi from 1 June: Abu Dhabi has pulled the brakes on single-use styrofoam products made of polystyrene — including cups, lids, plates, and takeaway containers — with a resolution taking effect at the beginning of June, according to the Abu Dhabi Media Office. The Abu Dhabi Department of Economic Development will conduct field inspections on sales outlets and industrial establishments from 1 June to ensure compliance, after notifying over 50k commercial establishments and 80 industrial facilities about the ban.

The ban is part of Abu Dhabi’s Environment Agency’s single-use plastic policy, introduced in 2020 to reduce microplastics and facilitate the shift to reusable solutions. The authority previously rolled out a single-use plastic bags ban in June 2022, which saw some 310 mn bags removed from circulation.

REMEMBER- Dubai will also ban single-use plastic bags as of 1 June, as part of a phased rollout aiming to ban single-use plastics by 2026.

WATCH THIS SPACE-

#1- Abu Dhabi Developmental Holding Company (ADQ) has established an infrastructure investment fund company in Jordan, Petra reports. The fund aims to pour some USD 5 bn into an array of infrastructure and development projects across the country. ADQ will spearhead investment projects in Jordan including the operation and management of a port facility in Aqaba, the establishment of a railway network connecting Aqaba port to mining zones, and the development of a waste-to-energy conversion station, Petra said. Each project will be carried out through a dedicated subsidiary.

#2- UMPC to kick off lithium production in Argentina next year: Dubai-based United Mining Projects plans to kick off lithium production for batteries in Argentina next year, targeting an output of 5k tons by 2027 with plans to double it by 2028, CEO Bradley Pielsticker said in an interview with CNBC Arabia. The company is currently mulling extraction methods, including direct extraction and evaporation ponds, he said.

REMEMBER-UMPC is investing USD 550 mn in a lithium project in Argentina ’s Catamarca province through its subsidiary, Marhen Lithium. The project also aims to develop the lithium into value-added products, with the funds set to be disbursed over a four-year period.

#3-Ajman Bank is looking to reduce the number of non-performing loans (NPLs) to align with regulatory standards by year-end, and expects a significant decrease in its NPLs — which currently make up 14% of the bank’s total loan portfolio — by 2Q 2024, the lender’s CEO Mustafa Al Khalafawi told CNBC Arabia. The bank is also exploring the possibility of launching a digital bank. While no concrete timeline has been provided, this initiative is under consideration for the coming months or years.

ICYMI- Ajman Bank’s bottom line more than doubled to a record AED 107.4 mn, up 118% y-o-y in 1Q 2024. The growth was driven by a 7% y-o-y increase in its net operating income to AED 400 mn, as well as the bank’s focus on “customer base, enhancing the credit quality, risk management and focus on recoveries.”

#4- ADQ-owned F&B firm Agthia’s income is poised to climb between 10-12% y-o-y in 2024, the company’s CFO Sherif Elfaham told CNBC Arabia (watch, runtime, 6:36). Agthia is planning to increase its exports to Egypt 40% y-o-y to AED 100 mn this year, up from AED 70 mn recorded in 2023.

ICYMI- Agthia is looking to make Egypt an export hub by setting up an export facility in Egypt to serve markets in the Gulf and North Africa, as part of a wider expansion strategy for Agthia to grow its foothold in large consumer markets such as Egypt and Saudi Arabia

Agthia anticipates booking AED 40-45 mn in sales from its recently launched Nabil protein manufacturing facility in Jeddah, Elfaham said, announcing that operations commenced at the AED 84 mn facility earlier this month.

A look at Agthia’s 1Q performance: Agthia Group’s net income rose 32% y-o-y to AED 127.6 mn in 1Q 2024. The company logged AED 1.45 bn in revenues, up 22.6% y-o-y.

DATA POINTS-

#1- Dubai International Airport (DXB) logged its busiest quarter in 1Q 2024, with 23 mn passengers passing through its terminals, up 8.4% y-o-y, according to the Dubai Media Office. Robust performance came on the back of network expansions by Emirates and Flydubai, with the airport expecting to host some 91 mn guests this year. DXB currently grids Dubai to 256 destinations across 102 countries. London attracted the highest number of passengers (961k) during 1Q, followed by Riyadh (795k), Jeddah (669k), and Mumbai (637k).

#2- The UAE ranked 18th globally and first in the Middle East region in the World Economic Forum’s latest Travel & Tourism Development Index(pdf), improving its score by 4.4% and climbing seven places from its previous 35th global ranking in the last report issued in 2021. The index, covering 119 economies, analyzes factors and policies adopted by the countries to develop their travel and tourism sector.

HAPPENING TODAY-

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

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

#3-The Electric Vehicle Innovation Summit is on its final day in Abu Dhabi. The three-day event welcomes over 300 delegates — including the Energy and Infrastructure Ministry — and 200 exhibiting brands to spotlight the future of electric vehicles in advancing sustainable mobility.

#4-CABSAT is on its second day at the Dubai World Trade Centre, before wrapping tomorrow. The three-day event will welcome over 18k industry professionals and media markets to explore business prospects across content, broadcast, satellite, media, and entertainment.

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THE BIG STORY ABROAD-

It’s a mixed bag on global front pages this morning with no single story captivating the attention of the business press.

#1- Iran will hold presidential elections on 28 June as the country looks to elect a new president following the death of Ebrahim Raisi in a helicopter crash. Vice President Mohammad Mokhber will serve as interim president in the meantime.

#2- US stocks hit another record high: The S&P 500 and tech-heavy Nasdaq Composite both hit fresh highs yesterday. US stocks have been closing in the green for the past couple of sessions following promising inflation data that reignited trader optimism that the Federal Reserve could start cutting interest rates this year.

#3- Pixar is laying off 14% of its workforce as the company adopts a quality over quantity mindset, a Disney spokesman told CNBC.

CIRCLE YOUR CALENDAR-

The Make it in the Emirates Forum is set to take place from 27-28 May at the Abu Dhabi Energy Center. The forum, which is organized by the Industry and Advanced Technology Ministry, brings together local and international decision-makers, government officials, private companies, investors, and financing institutions to support industrial growth and investment.

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

FAB closes in on acquisition of Yapi Kredi + Al Mal Capital REIT adds Dubai school to its portfolio

FAB is a step closer to acquiring a 61.2% Stake in Yapi Kredi: First Abu Dhabi Bank (FAB) is reportedly advancing in its discussions with Turkish industrial conglomerate Koc Group about a potential takeover of its 61.2% stake in Turkey's fourth-biggest private bank Yapi Kredi for USD 8 bn, Reuters reports, citing three undisclosed sources close to the matter. Talks are now being finalized after “several months of negotiations,” which initially saw FAB offer to pay USD 7.5 mn for the stake, while Koc sought out USD 8.5 bn.

Disagreements over the bank’s valuation could throw a wrench in the works, Bloomberg reports, citing people in the know. Koc is still reportedly seeking a higher price than what FAB is currently willing to offer. Due to these disagreements hampering the stake sale, FAB has not formally begun due diligence on the stake, despite negotiations being ongoing for several weeks now, according to the sources. While neither lender has tapped an adviser, the banks are still moving forward with the talks.

The Turkish lender’s market was valued at USD 7.5 bn earlier this month, though its value has now gone up to USD 10 bn, after shares rallied 10% yesterday. FAB’s USD 8 bn bid would value the bank at USD 13-14 bn.

Current ownership: Koc Financial Services holds a 41.0% stake in Yapi Kredi, while Koc Holding holds a little over 20.22% in the Istanbul-based commercial banking company.

What’s next? While declining to comment on the acquisition, the Emirates’ biggest lender acknowledged “the recent media speculation,” in a disclosure (pdf), adding that the bank is focused on “executing its growth strategy.” The lender also said that it could be holding talks “on growth potential to its operational network.” Meanwhile, Koc Holding confirmed in a statement to the Istanbul bourse that it is in preliminary talks to sell Yapi Kredi shares. Koc also said it holds the option to negotiate “possible alternatives” in its portfolio, signaling that the FAB sale is not final.

FAB has been eyeing the Turkish bank for some time: FAB mulled an acquisition of Turkish lender Yapi Kredi, valued at USD 7.6 bn, in April, as part of its global expansion strategy.

REMEMBER- Ties between the UAE and Turkey have warmed as of late: Last year, the UAE inked over USD 50 bn in agreements with Turkey during a visit from Turkish President Recep Tayyip Erdogan, including commitments to develop energy and natural resources projects and a trade agreement. Dubai Islamic Bank has also shown interest in Turkish investments, announcing in September that it plans to purchase a 20% stake in Turkey's TOM Group of Companies.

FAB also has its eyes on an Indian lender: FAB reportedly sought to acquire a 25% stake in Yes Bank, India's sixth-largest private sector lender, earlier this month. The lender held talks with the Reserve Bank of India, India’s central bank, to discuss the potential transaction.

IN OTHER M&A NEWS-

Al Mal Capital adds a Dubai school to its portfolio: Al Mal Capital’s real estate investment trust’s (REIT) board approved the purchase of a school in Dubai for a total of up to AED 415 mn, according to a DFM disclosure (pdf), without disclosing the name of the school. The transaction will see the REIT acquire the British curriculum school at an estimated value of AED 395 mn, with the financial costs amounting to up to AED 20 mn. The new acquisition brings the asset manager’s portfolio value to approximately AED 1 bn.

Background: The Dubai-based asset manager unveiled in April its plan to acquire an AED 400 mn educational asset as well as a healthcare facility later in the year.

REMEMBER- The Dubai-investments unit underwent an AED 180 mn capital increase last month, bringing the REIT’s total capital to over AED 540 mn.

SOUND SMART- A REIT or a real estate investment trust is a mutual fund that owns, finances or manages income-generating real estate assets — commercial, residential, office, and other properties. Some will also invest in real-estate-related securities or private equity transactions that are directly related to the industry.

What’s next? The REIT could kick off another capital increase in 4Q 2024, with plans to up the number of units available to 1.5-1.8 bn units by year-end, Al Mal Capital MENA Direct Investments Director Sanjay Vig previously said.

Fitch upgraded Ras Al Khaimah’s issuer default rating with a stable outlook

Fitch Ratings upgraded Ras Al Khaimah’s (RAK) long-term foreign-currency issuer default rating to A+ from A with a stable outlook, it said in a statement. The improved credit score comes on the back of stronger medium-term growth forecasts, as well as higher fiscal buffers due to the introduction of the corporate tax and increased investment inflows as its tourism industry continues to boom.

** Tap or click the headline above to read this story with all of the links to our background and outside sources.

More investments + government spending are to thank: The growth forecasts are driven by “the combination of large investment projects and further economic diversification,” the statement said, citing Wynn Resorts’ plans to develop the first integrated gaming resort in the MENA region in the emirate at USD 3.9 bn, with support from state-owned RAK Hospitality Holding and Marjan, as well RAK Central and Beach District developments in January. This is supported by federal government spending, as well as “robust international reserves” due to the peg to the USD.

RAK’s growth will outpace the UAE’s: The ratings agency now sees the emirate growing in the medium term at a 6.2% clip in 2024 and 5% clip in 2025, it said. The construction of Wynn’s gaming resort alone is expected to boost real GDP growth by two percentage points above the UAE's non-oil real GDP growth in both 2024 and 2025, the rating agency said.

Ras Al Khaimah faces the risk of a downgrade if public finances weaken, “for example, due to large, sustained increases in spending or lower state-owned enterprises profits,” Fitch said. Deterioration in macroeconomic growth, potentially triggered by lower non-oil growth in the GCC, could also trigger a lower rating, alongside a further escalation of conflict in the region.

OTHER KEY INDICATORS-

Public sector deficits will drop to 2.3% of GDP in 2024 and 2025;
Public sector debt will slightly increase to 10.9% of GDP in 2024 and 11.3% in 2025;
Deposits will fall to 11.8% of GDP this year and 10.5% in 2025;
Revenues will comprise 22.9% of GDP in 2024 and 21.8% in 2025, up from 20% in 2022 and 21.5% in 2023.

Emirates Islamic takes USD 750 benchmark ESG sukuk to the market

Emirates Islamic is set to raise USD 750 from its debut five-year senior sustainability-linked sukuk, Reuters reports, citing a document it has seen. The issuance attracted some USD 1.9 bn in orders, and is part of a broader USD 2.5 bn certificate issuance program, according to Reuters.

The details: The lender narrowed the price guidance for the five-year sustainability sukuk to 100 basis points (bps) from an initial price guidance of 130 bps over US Treasuries.

Advisors: Emirates NBD Capital and Standard Chartered Bank were appointed as joint global coordinators, while First Abu Dhabi Bank, Abu Dhabi Islamic Bank, Dubai Islamic Bank, and the Islamic Corporation For The Development of the Private Sector were selected to act as joint lead managers and joint bookrunners for the transaction.

Alcazar raises USD 490 mn for second renewables fund

Alcazar Energy Partners secured a USD 490 mn final close on its renewable energy fund, Alcazar Energy Partners II, the company said in a press release. The fund’s clean energy investments will assist emerging markets in offsetting over 3 mn tonnes of greenhouse gas emissions annually.

Who pitched in? The renewables fund received backing from eight additional leading investors, including the US International Development Finance Corporation, Alcazar said. Other development financial institution investors include the European Bank for Reconstruction and Development, the Asian Infrastructure Investment Bank and Allianz, Reuters reports.

About the fund: To date, the fund has acquired two wind farms in the Western Balkans with a total capacity of 456 MW. This includes a 118 MW wind farm in Montenegro purchased in September, as part of the fund’s plan to develop 1.6 GW of clean energy across various markets.

What was said: “...With this fund, we are well positioned to continue investing in essential renewable energy projects that advance the energy transition in places that are historically underserved by the traditional investment community,” Alcazar’s managing partner Daniel Calderon said.

Background: Alcazar reached the first close for the fund in 2022, securing USD 336.6 mn to invest in developing a portfolio of 2 GW worth of renewable energy projects across emerging markets. Alcazar Energy Partners I — the first fund by Alcazar — was launched in 2014 and raised a total of USD 240 mn to invest in equity for solar and wind energy projects with up to USD 700 mn poured into solar and wind farms in Egypt and Jordan. The first fund’s portfolio was acquired in 2021 by Chinese energy firm China Three Gorges Corporation.

Masdar and the World Bank advance Uzbek solar project

Masdar secures funds for its 250 MW solar + 63 MW battery complex in Uzbekistan: Renewables giant Masdar has secured USD 159 mn in loans, and USD 12 mn in guarantees from a number of international organizations for the construction of its 250 MW solar plant with a 63 MW battery energy storage system (BESS) in Uzbekistan’s Bukhara region, according to a press release. Masdar will receive interest rate swaps from IFC to manage risks associated with loan rates, the statement added.

The breakdown:

The International Finance Corporation (IFC) is lending some USD 53 mn, USD 20 mn of which will be provided within the joint IFC and Government of Canada program for financing climate protection initiatives;
The Asian Development Bank (ADB) has agreed on a loan of USD 46.5 mn — USD 20 mn of which will come from the ADB-managed Leading Asia's Private Sector Infrastructure Fund (LEAP), according to an ADB statement ; and has further mobilized USD 26.5 mn from the Japan International Cooperation Agency (JICA);
The rest (c. USD 33 mn) will be offered by the Dutch Entrepreneurial Development Bank;
The World Bank will also provide Uzbekistan with a financial guarantee of USD 12 mn.

About the project: The project — which will stand as Central Asia’s first renewable power facility with a utility-scale battery storage system — plans to offset around 327k metric tons of CO2, generate around 585 GWh of energy annually, and power 75k houses. Masdar was first awarded the 250 MW Bukhara Solar PV project in late 2022, a company statement said. At the time, Masdar submitted a bid with the lowest price per kWh of energy at USD 3.044 cents.

France and the UAE ink strategic AI partnership + eye nuclear investments

France inked a strategic partnership agreement with Abu Dhabi investor Mubadala on artificial intelligence, French Finance Minister Bruno Le Maire told AFP. The agreement will cover four new areas of cooperation, including investments in data centers and semiconductors, as well as research and skill development through the Abu Dhabi branch of the Sorbonne, the minister said.

“France has chosen to be the leading country in Europe on AI, and for that, we need partners,” Le Maire said during a visit to the UAE.

Background: Mubadala has already invested in France’s chip industry as a majority shareholder of GlobalFoundaries, which is building a semiconductor facility in the country with STMicroelectronics, according to AFP, which quotes Le Maire as saying that the country wants to “accelerate the deployment of these investments and expand them.”

ALSO- France is “open” to the UAE investing in its nuclear industry, including in private companies such as nuclear fuel company Orano, Le Maire told reporters in Abu Dhabi, according to Reuters, adding that he plans to hold discussions on this with senior UAE officials during his visit. Le Maire met with Khaldoon Al Mubarak, the chairman of state Emirates Nuclear Energy Corp and managing director of Mubadala, yesterday. He was also to meet with Industry and Advanced Technology Minister Sultan Al Jaber.

France is also willing to help the UAE if it decides to expand its own nuclear power industry, according to Le Maire. "If there is any possibility to extend the cooperation to the UAE on the nuclear field, we stand ready for that,” Le Maire said.

REFRESHER- The UAE is eyeing nuclear investments in Europe, and has reportedly held talks with the UK, among other European countries, to explore potential investments in the continent’s nuclear power infrastructure, Reuters reported in April. Among the potential investments is Enec buying minority stakes in European nuclear assets, with the goal of “becoming an international nuclear energy company holding minority stakes in nuclear power infrastructure of other nations, without managing or operating them.” It is also expected to tender for four new reactors for a second potential nuclear plant, we reported earlier.

Le Maire also met with President Mohamed bin Zayed Al Nahyan to discuss strategic relations in tech, industry, energy, and the economy, Wam reported.

AND- The UAE is set to expand AI collaboration with the US, state minister for AI Omar Sultan Al Olama told Reuters yesterday, stating that there are more joint investments in the AI sector in the pipeline for the two “strategic partners.” Al Olama also mentioned that the UAE has approached potential partners for the development of small modular nuclear reactors (SMRs) to power data centers, although no final agreements have been reached yet.

OTHER DIPLOMACY NEWS-

President Al Nahyan also held a phone call with European Council President Charles Michel to discuss cooperation and the situation in Gaza. (Wam)

Yalla Group, Orascom Construction see bottomline growth in 1Q 2024

ORASCOM CONSTRUCTION-

Orascom Construction saw its net income rise 27.7% y-o-y in 1Q 2024 to USD 46.1 mn, backed by strong operational performance and the company’s efforts to improve financial management, according to the company’s latest earnings release (pdf). The construction giant recorded revenues of USD 766.3 mn — a 4.8% y-o-y decrease — which the company attributed to the float of the EGP in Egypt, where it is based.

Backlog nears record high: The company’s consolidated backlog grew 33.1% y-o-y to USD 7.3 bn. New awards fell 29% y-o-y to USD 609.5 mn during the quarter.

Looking ahead: “Our backlog... has provided us with strong visibility for the upcoming period as we continue to focus on project execution, collections, financial management, and ramping up our large-scale contracts signed in 2H 2023,” said CEO Osama Bishai.

YALLA GROUP-

Yalla Group posted USD 31.1 mn in net income in 1Q 2024, up 56.2% y-o-y, the NYSE-listed social networking and gaming company said in an earnings release. Revenues rose 7.1% y-o-y to USD 78.7 mn, on the back of chatting services, which raked in USD 52.2 mn, as well as gaming services revenues which contributed USD 26.5 mn.

Looking ahead: “We are actively communicating with potential premium partners and recently joined the UK Interactive Entertainment Association,” Yalla CEO Yang Tao said.

Millennium Management adds to its Dubai hires

Global investment management firm Millennium Management appointed Nader Naeimi(LinkedIn) as a senior portfolio manager based out of Dubai, Bloomberg reports, citing people familiar with the matter. Naeimi’s experience includes three years at Singaporean sovereign wealth fund GIC, including as managing director and head of multi-asset, global macro, and over two decades at AMP Capital. The hire comes as Millennium ramps up its operations in Dubai, employing some 70 employees in the emirate.

Middle East LNG producers have a window of opportunity, Woodside CEO says

The US’ moratorium on new LNG export projects and sanctions against Russia put Middle East gas producers at an advantage, Australian Woodside Energy CEO Meg O'Neill tells Reuters reports. But while GCC energy giants such as Adnoc and Saudi Aramco are already pursuing acquisitions in the US to expand their liquified natural gas (LNG) trading, “the question is how does the Middle East respond with a number of different project sanctions,” O’Neill said.

REMEMBER- The US paused LNG export permits in January until the Department of Energy completes a study on the potential impacts of increased LNG production on climate change.

More on the first state-owned EV charging network

EVS-

More details on the first state-owned EV charging network: UAEV — the first state-owned EV charging network in the UAE — is targeting to install up to 100 160 KW fast-charging units by the year’s end, and some 1k units by 2030, UAEV Chairman Sharif Al Olama told Khaleej Times. The charging units will be available at no cost this year and will be accessible in public spaces, workplaces, shopping centers, and residential areas. There are also plans to later install chargers in malls, supermarkets, and government buildings.

ICYMI- The Energy Ministry and Etihad Water and Electricity (Etihad WE) set up a joint venture earlier this week to boost EV charging infrastructure in the UAE. The initiative expects to offset 100k tonnes of CO2 emissions by 2030, equivalent to planting 1.8 mn trees.

PRINTING-

Dubai Investments subsidiary Emirates Glass has acquired Tecglass’s Vitro-Jet FS Jumbo digital printing production line to quickly print complex designs in various sizes, Al Bayan reports.

HEALTHCARE-

Pharma giant Pfizer has developed a new once-daily oral capsule for severe alopecia areata in the UAE for patients as young as 12, a press release reads.

DISPUTE WATCH-

Limitless settles dispute with Deyaar: Dubai-based property developer Deyaar Development received the final AED 300 mn payment from a larger AED 500 mn settlement agreement from real estate developer Limitless on Monday, according to a DFM disclosure (pdf). The developer said that AED 44 mn of the payment will be added to its income for 2Q 2024. The final settlement payment is expected to increase Deyaar’s liquidity to AED 1.7 bn from AED 1.4 bn, Deyaar CEO Saeed Al Qatami told Al Bayan last week.

Background: Deyaar received the first AED 200 mn payment in 2022, after the settlement was approved in 2021 following a court ruling over a land dispute between the two developers, obligating Limitless to pay AED 412 mn to Deyaar, in addition to a compensation of some AED 61 mn.

CAPITAL MARKETS-

#1- Abu Dhabi, Dubai freezone watchdogs fine Sarwa Digital: The Dubai Financial Services Authority (DFSA) imposed AED 1.15 mn in fines on Sarwa Digital Wealth for making a public share offering through email in 2023 without an approved prospectus, according to two separate statements (here and here). The investing platform received USD 2.1 mn in subscriptions from 144 investors after the share offering email was sent to some 100k users, DFSA’s statement reads.

Sarwa was slapped with a USD 191k (AED 709 mn) fine by DFSA, reduced from USD 390k (AED 1.4 mn) following mitigation and settlement, while FSRA levied a financial penalty of USD 122k (AED 450k) on the fintech platform.

#2- Adnoc Gas saw an AED 45.7 mn direct transaction on 15 mn of its shares on the ADX yesterday, Wam reports, without disclosing further details.

TRANSPORT-

RTA to set up digital assets investment platform: Dubai's Roads and Transport Authority (RTA) inked an MoU with SmartCrowd Holding, parent company of real estate investment platform SmartCrowd, according to a statement. Under the MoU, SmartCrowd will develop a blockchain platform for RTA geared at drawing non-fungible token (NFT) and digital investments for RTA’s upcoming real estate and public assets in Dubai. These assets will include retail stores, rest areas, and service centers.

LOGISTICS-

Emirates SkyCargo expanded its e-commerce delivery service to Saudi Arabia, enabling its customers across the Kingdom to receive shipments from retailers in the UK, US, and UAE, the shipping firm said.

Safeen debuts Middle East’s first electric tug: AD Ports’ Safeen Group is piloting an electric tug within its marina service fleet, which should eliminate emissions and increase operational efficiency and cost-effectiveness, according to a statement.

Crypto gains on ETF optimism

Ether jumps on exchange-traded funds speculation: ETH approached its biggest two-day gain in nearly two years as traders await US regulators' decision on spot exchange-traded funds (ETFs) for ETH, Reuters reported.

The numbers: The crypto market’s second-largest player was up 7.3% yesterday to sit at USD 3.7k as of midnight. BTC also neared its all-time high on Tuesday, closing at USD 79.7k. BTC has surged 65% in 2024, closely trailed by ETH, which has gained 63%.

Driving the rally: Investors are keeping a close eye on the US Securities and Exchange Commission's (SEC) decision regarding ETH ETFs, expected this week, the Financial Times writes. “The political dynamics around crypto in Washington were shifting, after 18 months of regulatory crackdowns and Democrat-led blocks to regulation,” Bernstein analyst Gautaum Chhugani.

Remember: Investors poured some USD 900 mn into BTC ETFs in the three days after the SEC greenlit the funds.

Also worth knowing about this morning:

Our friends at EFG Hermes have acquired an undisclosed minority stake in the Danish digital wealth manager Kenzi Wealth. EnterpriseAM Egypt has more.
Blackstone will grant equity to rank-and-file employees of the companies in which it invests in the United States going forward. The private equity giant’s plan is “part of a broader movement in the buyout industry to expand ownership beyond management ranks. (Wall Street Journal)
The Tadawul All Share Index is nearly 6% behind the MSCI Emerging Markets gauge this year — Saudi stocks are lagging behind other EM counterparts for the first time since the pandemic. (Bloomberg)

MARKETS THIS MORNING-

Asian markets are largely unchanged in early trading this morning. Alone among major benchmarks, Japan’s Nikkei is down (-0.75%) while the Hang Seng, Kospi, and Shanghai Composite are all holding their ground. European and US futures were also pretty much flat overnight after US shares notched fresh highs again yesterday.

One weird thing: With all of these fresh highs being hit, there are virtually no headlines out there with random pundits called upon to declare that a correction is in the cards. Heck, even the so-called “fear index” — the Vix, or volatility index — is trading at a five-year low.

ADX	9,009	-0.3% (YTD: -5.9%)
DFM	4,075	+0.2% (YTD: +0.4%)
Nasdaq Dubai UAE20	3,511	0.0% (YTD: -8.6%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.1% o/n	5.4% 1 yr
TASI	12,122	0.0% (YTD: +1.3%)
EGX30	27,225	0.0% (YTD: +9.4%)
S&P 500	5,321	+0.3% (YTD: +11.6%)
FTSE 100	8,416	-0.1% (YTD: +8.8%)
Euro Stoxx 50	5,047	-0.5% (YTD: +11.6%)
Brent crude	USD 82.88	-1.0%
Natural gas (Nymex)	USD 2.66	-0.3%
Gold	USD 2,448	0.0%
BTC	USD 69,658	+0.3% (YTD: +64.8%)

THE CLOSING BELL-

The DFM rose 0.2% yesterday on turnover of AED 395 mn. The index is up 0.4% YTD.

In the green: Orascom Construction (+9.8%), GFH Financial Group (+5.0%) and Emaar Properties (+4.4%).

In the red: Dubai Refreshment Company (-10.0%), Al Ramz Corporation Investment and Development (-6.7%) and Watania International Holding (-4.0%).

Over on the ADX, the index fell 0.3% on turnover of AED 1.2 bn. Meanwhile, Nasdaq Dubai stayed flat.

CALENDAR

MAY

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

20-22 May (Monday-Wednesday): Electric Vehicle Innovation Summit, Abu Dhabi.

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

21-23 May (Tuesday-Thursday):CABSAT 2024, Dubai World Trade Center.

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

27-28 May (Monday-Tuesday): The Middle East Investors Summit, Rosewood Hotel, Al Maryah Island, Abu Dhabi.

27-28 May (Monday-Tuesday): Make it in the Emirates Forum, Abu Dhabi Energy Centre.

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

28 May-4 June (Tuesday-Tuesday): Subscription period for retail investors for Alef Education’s IPO.

28 May-5 June (Tuesday-Wednesday): Subscription period for institutional investors for Alef Education’s IPO.

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

JUNE

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

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

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

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

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

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

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

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

12 June (Wednesday): Alef Education shares begin trading.

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

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

Signposted to happen sometime in 1H 2024:

Spinneys inaugurates its first store in KSA

JULY

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

AUGUST

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

SEPTEMBER

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

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

OCTOBER

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

NOVEMBER

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

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

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

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

DECEMBER

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

5-8 December (Thursday-Sunday): Formula 1 Etihad Airways Abu Dhabi Grand Prix, Yas Marina Circuit.

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

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

Signposted to happen sometime before the end of the year:

Spinneys inaugurates three more stores in KSA

Signposted to happen in 2025:

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

Signposted to happen sometime in 2028:

Abu Dhabi to host the 47th Chess Olympiad

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