Gov’t is working on strategies to improve drainage infrastructure

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Drainage infrastructure coming? + UAE inks preliminary agreement with Turkey, Iraq, and Qatar for Development Road

Good morning, wonderful people. It’s a relatively calm newsday here at home — and abroad — with more updates coming from officials on measures to help residents who have suffered damages during the storm.

ALSO- We have news of yet another big investment coming from the UAE, this time in lithium mining in Argentina, courtesy of United Mining Projects Corporation. Also worth your attention: Ducab’s metals subsidiary acquired GIC Magnet Wire; du has launched its fintech arm, Du Pay; and sales prices in Dubai rose across 30 communities during 1Q 2024.

WEATHER- Expect a mostly sunny and hot day in Dubai and Abu Dhabi, with temperatures in the former hitting 35°C during the day, and an overnight low of 25°C. Abu Dhabi will be slightly cooler, with mercury hitting 32°C during the day and falling to an overnight low of 25°C.

OUR NEXT CONFERENCE IN CAIRO-

Foreign investors are falling in love with Egypt again… Foreign investors we speak with (debt, equity, and strategic alike) have growing appetite for Egypt. They’re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that’s taking shape after the float of the EGP, and its competitive advantages are clear to many of them: It’s a massive consumer opportunity and a regional export hub of tomorrow.

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: Spark conversations about a future that sees Saudi Arabia, Egypt, and the the UAE at the heart of a more vital Middle East economy — and provide an early, actionable roadmap for those who are “long Egypt.”

We’ll be talking with you about the agenda over the coming couple of weeks. It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow’s opportunities — and who aren’t afraid to answer some tough questions.

{ *** Interested in attending? Tap or click here to let us know.} Seating is limited.

AFTER THE STORM-

#1- Strategies for drainage infrastructure incoming: The Energy and Infrastructure Ministry is preparing a “complete study” on dam and waterway expansions to help contain future storms, following President Mohamed bin Zayed’s directive to evaluate the country’s infrastructure after severe weather, Wam reports. The ministry has dispatched teams to assess the impact of heavy rainfall on dams and roads and create strategies to bolster dam capacity, enhance waterways, repair damaged roads, and upgrade rainwater drainage along federal roads to withstand severe future weather events.

#2- Ins. claims to surge to record highs: Ins. firms are grappling with high ins. claims following the heavy rainfall that took place last week, with some reporting a 400% surge in claims compared to previous peaks after rainstorms, Khaleej Times reports. While vehicle damage claims account for most of the claims, the companies have also received claims from restaurants, shops and other small retailers valued at “hundreds of thousands,” according to firms interviewed by Khaleej Times. Consequently, ins. companies expect to “see the highest number of claims ever recorded from a single event,” eSanad CEO Anas Mistareehi said.

ICYMI- Moody’s expects the heavy rainfall to add pressure on local ins. companies, especially impacting small and medium-sized firms that have not seen recent income growth, With local ins. providers relying on reins. services to mitigate their losses, the recent weather events are projected to drive up reins. costs in upcoming renewals, according to Moody’s ins. senior analyst Mohammed Ali Londe. On the flip side, S&P Global foresees the storm having little impact on local firms as the losses are either “not [covered] or ceded to global” reins. firms.

MORE GOV’T RELIEF EFFORTS-

#1- Banks and ins. providers will allow a six-month deferral of personal and car loan repayments for customers affected by recent weather conditions, with no extra fees or interest during the deferral period, following directives from the Central Bank of the UAE (CBUAE) (pdf). The CBUAE also verified that comprehensive ins. policies will cover the losses from last week’s storm, including vehicle and property damages, with ins. providers required to provide compensation for these damages.

#2-Sharjah police has waived the fees for issuing vehicle damage certificates for cars damaged in the emirate, according to a statement. The emirate’s police department also canceled all traffic fines over violations caused by the rainfall over the past week.

Got your car damaged in Sharjah? Request the damage certificate on the police’s website or smart app.

#3- The Sharjah Private Education Authority is permitting Sharjah schools to provide in-person, remote, or hybrid classes, from today until this Thursday, due to disruptions affecting students, parents, and staff, Khaleej Times reports.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- AI is going to make building permit procedures easier in AD: Abu Dhabi’s Department of Municipalities and Transport launched two AI technologies to improve the building permit procedure, according to a Dubai Media Office statement. These technologies consist of AI-enabled building information modeling (BIM), an automated plan review system (APRS), and a virtual chatbot. The goal is to increase the efficiency and precision of permit submissions and reviews by using AI for code compliance checks and granting immediate access to building codes via a virtual assistant.

#2- You can now get short-term berth rentals + docking services at Dubai ports through RTA: Dubai’s Roads and Transport Authority (RTA) will integrate its services within the Dubai Maritime Authority’s system to provide improved marine transport services within the Ports, Customs, and Freezone Corporation, according to an RTA statement. The integration will see RTA offering options like short-term berth rentals at maritime stations which allow private boats to temporarily dock at maritime stations without requiring overnight stays.

HAPPENING TODAY-

#1- The book building process for Spinneys Dubai’s IPO kicks off today, with retail investors’ subscription period ending next Monday, 29 April, and institutional investors’ ending on Tuesday. The price range for the offering should also be announced today. Shares will begin trading on the DFM on 9 May.

Background: Supermarket chain Spinneys Dubai is planning to offer up to a 25% stake in an IPO on the DFM in what will be one of the first IPOs for a family-owned business.

#2- Dubai government employees will receive their April paychecks today, after Dubai Crown Prince Hamdan bin Mohammed Al Maktoum directed early salary payments to support government employees, military personnel, retirees, and social benefits recipients during the severe weather.

#3- The AVPN Global Conference 2024 is kicking off today and running through to Thursday at The St. Regis Saadiyat Island Resort and Park Hyatt Abu Dhabi Hotel and Villas. The event aims to bring together more than 1.5k leaders in global social investment to advance humanitarian efforts in Asia, according to an Abu Dhabi Media Office statement.

#4- The National Forum for Small and Medium Enterprises: Government Procurements will take place today at Dubai’s Emirates Towers. Organized by the Ministry of Economy, the forum welcomes Emirati entrepreneurs to explore and compete for available tenders and contracts on its digital procurement platform.

#5- Gulf Information Security Expo and Conference will take place from today to Thursday at the Dubai World Trade Centre. The event will gather hundreds of cybersecurity firms, government officials, and cyber experts from 130 countries. You can book your ticket here.

#6- Carpet and flooring industry event Domotex Middle East 2024 is scheduled from today to Thursday at the Dubai World Trade Centre. The event brings together industry leaders like Merinos, Oriental Weavers, Solomon Carpets, and Al Abdullatif, as well as brands like Azim Silk.

WATCH THIS SPACE-

#1- The UAE, Iraq, Turkey, and Qatar have signed a preliminary agreement to work together on the Development Road project, according to a statement from the Iraqi prime minister's office. The project, initiated last year by Iraq with a budget of USD 17 bn, aims to connect a significant commodities port on Iraq's southern coast — Grand Faw Port — to Turkey's border via rail and road networks.

#2- Masdar + Alpha Dhabi vying to develop solar plant in Libya: State-backed renewables giant Masdar and Alpha Dhabi’s W Solar Investment are in talks with the Libyan government to build a 500 MW solar power plant in Libya with the aim of exporting its production to Europe, Chairman of Libya’s Renewable Energy Authority, Abdul Salam Al Ansari told Asharq Business (watch, runtime 5:27). Masdar and W Solar had signed an agreement with the General Electric Company of Libya two years ago to invest in building solar plants in Libya, although no details or specific investments were disclosed at that time.

Masdar eyes China expansion: Masdar is also mulling expanding into China as it negotiates with partners the “ideal market strategy” for entering the market, COO Abdulaziz Alobaidli told The National at the World Future Energy Summit last week in Abu Dhabi, adding that “any serious investor who is ignoring China is committing a very strategic mistake.” The potential move is part of the company’s efforts to diversify its supply chain amidst geopolitical tensions impacting interest rates, logistics and supply chains to “ensure that if those challenges start to materialize, we have the right mitigations,” Alobaidli noted.

#3- Borouge to partner with Egypt on oil production freezone: Abu Dhabi-based petrochemicals firm Borouge is in early-stage talks with Egyptian Prime Minister Mostafa Madbouly to sign a preliminary agreement with the Fujairah emirate and to set up a freezone focused on the production, storage and trade of oil and its derivatives, according to a statement.

#4- Emirates NBD is eyeing a majority stake in Yes Bank, India's sixth-largest private sector lender, reports Moneycontrol, citing people familiar with the matter. Japan’s Mitsubishi UFJ Financial Group and Sumitomo Mitsui Banking Corp. are also considering bids for Yes Bank, which is expecting bids by the end of the month.

Background: A State Bank of India-led consortium is exploring plans to sell its stake in Yes Bank, after bailing out of the Indian bank in 2020. Investors were granted a three-year lock-in period, which expired in March 2023.

Emirates NBD has had its eyes on India before: Emirates NBD reportedly submitted a bid to acquire a majority stake in India’s central bank in April 2023.

DATA POINTS-

#1- The combined net income of ADX-listed banks grew 27.9% y-o-y to AED 32.6 bn in 2023,according to Mubasher statistics based on financial data announced on the Abu Dhabi bourse. The total net incomes of companies listed on the ADX climbed 7.12% y-o-y in 2023, totaling AED 148.66 bn, according to Mubasher statistics.

Our friends at First Abu Dhabi Bank recorded the highest bottom line among banks during the year (AED 16.4 bn), followed by Abu Dhabi Commercial Bank (AED 8.2 bn) and Abu Dhabi Islamic Bank (AED 5 bn). Finance House posted the largest improvement in net income in 2023, growing 177% y-o-y to AED 36 mn, while the National Bank of Fujairah came second with a bottom line of AED 725 mn, up 113% y-o-y. Investment Bank and Bank of Sharjah were the only ADX-listed banks to incur losses during the period, posting losses of AED 1.03 bn and AED 273.5 bn.

#2- The Dubai Chamber of Digital Economy attracted nine multinational companies in 2023, with a combined market value of AED 304 bn, according to the Dubai Media Office. The companies come from Asia, Europe, the US, and Latin America, and operate across various sectors, including cybersecurity, tech, robotics, autonomous systems, e-commerce, the automotive industry, and cryptocurrencies.

THE BIG STORY ABROAD-

It’s a pleasantly slow morning in the international business press.

Yesterday saw opening arguments in Donald Trump’s criminal hush-money trial — today will see prosecutors argue that The Donald is also in contempt of court for refusing to abide a gag order against attacking prosecutors, jury members, and witnesses.

It’s not a great time to be in professional services: PwC is looking to cut in half (compared to last year) the number of people it makes partners in the United States. Blame slowing demand for advisory services. McKinsey, meanwhile, is at the forefront of a movement among big consulting firms to cull underperformers. A “brutal round of career reviews” now in process at the high-flying firm.

The noise about tech stocks is about to go to 11: Tesla reports its 1Q earnings today, Meta follows suit tomorrow, while Google parent Alphabet and Microsoft both release on Thursday. They’re all filing financials after a rough couple of weeks for tech stocks in New York.

US colleges are having a moment as student protests of Israel’s war against Gaza (and US backing for it) continues to grow. Alexandria-born Columbia President Dame Minouche Shafik has suspended in-person classes to allow a cooling off period after she sent police to arrest a bit more than 100 protestors. Police have separately arrested over 50 protesters at Yale and Harvard is closing campus gates to non-students. Activists have organized “tent cities” at all three.

MORNING MUST READ-

The IMF revised downward its 2024 growth forecast for GCC countries by 1.3 percentage points since October, anticipating the region’s growth to reach 2.4% in 2024 due to Saudi Arabia’s ongoing oil production cuts, which continue to weigh on growth, according to its latest Regional Economic Outlook report (pdf).

However, the fund anticipates a rebound next year to 4.9% growth, driven by non-oil business activity expansion — to the tune of 3.6% — in 2024 as GCC members continue diversifying their economies. The fund said last week it expected to see the UAE’s economy growing 3.5% in 2024.

The fund’s revised regional outlook forecasts 2.7% growth for the MENA region in 2024, down by 0.1 percentage point from its last update, on the back of the Red Sea shipping disruptions and the oil production cuts, coupled with “existing vulnerabilities related to high debt levels and elevated borrowing costs.” Despite the challenges, the fund forecasts growth to pick up to 4.2% in 2025.

Ducab’s metals subsidiary acquires GIC Magnet Wire

Dubai Cables subsidiary Dubai Metals Business (DMB) has acquired Dubai-based copper and aluminum producer GIC Magnet Wire, according to a {press release}. The acquisition allows the Dubai Cables subsidiary to expand its downstream product offering, CEO Mohamed El Ahmedi said. GIC Magnet is also the only supplier from the region with market approval from US original equipment manufacturers (OEMs), the statement said.

The acquisition is expected to reel in some USD 40.5 mn in increased annual revenues, according to the statement.

About the companies: DMB’s products range from copper and aluminum rods and wires to cable conductors, with 75% going towards 45 countries across the Middle East, Africa, Asia, Europe, and the Americas, according to its website. GIC Magnet’s products include copper rods and paper- and fiberglass-insulated wires, with a 50k square foot manufacturing facility in Jebel Ali. The company exports to 14 countries.

Sales prices increased across 30 Dubai communities in 1Q 2024

Dubai’s property market continued to see prices rise in 1Q 2024 —Espace: Dubai’s residential property market reeled in AED 87 bn in 1Q 2024, marking an increase of 26% y-o-y, according to Dubai-based real estate agency Espace’s latest {market insights report (pdf)}. The emirate recorded over 34k sales transactions during the quarter, up 22% y-o-y on the back of increased transaction activity in the luxury property segment.

ICYMI #1- A previous report by Dubai-based real estate broker Springfield Properties estimated a similar price growth percentage (25.9%), though it pegged the overall value of sales at AED 109.8 bn. The report also recorded some 37.1k transactions during the quarter, down 0.5% y-o-y, and different from Espace’s estimate of an uptick in market volume.

Average prices inflated in 30 communities, with villa and townhouse prices growing 27% y-o-y and apartment prices increasing 18% y-o-y. Jumeirah Islands noted the largest price increase (49% y-o-y) across villas and townhouses, while JVC recorded the highest increase (30% y-o-y) across apartments. Jumeirah Golf Estates’ sales prices remained flat, owing to a 78% y-o-y surge in transaction activity for the lower price point.

Rentals were less popular: Transaction activity across the rental market continued to decline in most communities, driven by high rental prices, an affordable mortgage market, relaxed visa regulations, and ongoing population growth pushing tenants towards homeownership, the report adds. Arabian Ranches 3 and Jumeirah Islands were the only two villa and townhouse communities to record rental transaction volume increases during the quarter, increasing 127% y-o-y and 17% y-o-y, while Emaar Beachfront, Bluewaters Island, and Downtown Dubai saw increases of 189% y-o-y, 73% y-o-y, and 2% y-o-y in the apartments market.

Palm Jumeirah recorded the highest rental price increase among villa and townhouse communities, growing 63% y-o-y, followed by Dubai Hills (+36% y-o-y) and Meadows (+35% y-o-y). Bluewaters Island saw the highest rental increase in the apartments market, recording a 64% y-o-y increase.

Are the luxury and secondary segments seeing a slight slowdown? The volume of luxury homes between AED 10-20 mn sold fell 37% q-o-q, while the volume of sales of homes above AED 20 mn fell 32% q-o-q. The secondary market is also slowing to a more “realistic and sustainable levels of activity,” according to the report. More than half of units sold — roughly 19.7k — during the quarter were off-plan, while the secondary market saw 14.3k homes handed over, marking an 11% q-o-q decline. The secondary market collected slightly more in sales, however, racking up AED 44 bn compared to AED 43 bn in the off-plan market, according to Espace.

On an annual basis, the secondary luxury market continued to see growth: Secondary homes priced above AED 20 mn witnessed a 55% y-o-y growth in transaction activity during the period, while homes priced between AED 10-20 mn experienced a 48% y-o-y increase. Secondary properties valued at below AED 5 mn and between AED 5-10 mn saw less dramatic increases in trade volume, growing at 10% y-o-y and 16% y-o-y.

ICYMI #2- Some 105 homes priced over USD 10 mn were sold in Dubai in 1Q 2024, marking a 19% y-o-y increase on the back of heightened buyer interest from “international high-net-worth individuals vying for the city’s most expensive homes” and reduced supply, global property consultant Knight Frank said recently.

Secondary market figures weren’t as pronounced in Springfield’s estimate: While Springfield Properties’ report similarly highlights off-plan units as dominating market volume and share, it reports a much lower sales figure — AED 8.2 bn — and a handover of just 12.7k units, compared with AED 50.4 bn in sales for off-plan properties.

Dubai’s UMPC invests USD 550 mn in Argentinian lithium project

Dubai-based United Mining Projects Cooperation is investing USD 550 mn in a lithium project in Argentina’s Catamarca province through its subsidiary, Marhen Lithium, according to a Linkedin statement. The project also aims to develop the lithium into value-added products, with the funds set to be disbursed over a four-year period, according to iProfessional.

More details: The project is expected to create 700 jobs during the construction phase and keep 200 during production, generating some USD 168 mn for Argentina’s economy, iProfessional said.

About the project: Catamarca generates some 20k tonnes of lithium carbonate equivalent (LCE) every year and hosts most of the country’s exploration projects. Argentina is the fourth top producer of the mineral in the world, behind Australia, Chile, and China.

Blockchain VC Klumi receives ADGM license

AGDM licenses first Web3 VC: Abu Dhabi-based blockchain venture capital firm Klumi Ventures has become the first Web3 venture capital firm to be regulated by the Abu Dhabi Global Market (ADGM) after receiving a license from ADGM’s regulator, the Financial Services Regulatory Authority (FSRA), the firm said in a press release. The license allows Klumi to invest in tokens and equity investments in early stage Web3 startups.

Background: Klumi Ventures received in-principle approval from ADGM last year, the firm’s COO Manal Rifki said in an interview at Future Blockchain Summit last October (watch, runtime, 6:03).

Klumi Ventures is launching two funds, its flagship USD 100 mn fund for investing in decentralized sectors, and a USD 15 mn qualified investors fund for pre-seed and seed investments in early-stage Web3 startups.

What was said: “Its establishment as a Web3 Venture Capital Fund and bringing specialized funds that fill a critical gap in the Web3 sector's needs, positions Klumi strongly to harness the immense potential of this sector, not only in Abu Dhabi but also throughout the region,” ADGM’s market development chief, Arvind Ramamurthy said.

Introducing du Pay

Telecoms giant Emirates Integrated Telecommunications Company (EITC) — more commonly known as du — has launched du Pay, a fintech solution aimed at improving financial inclusion, accessibility, and security, according to a press release (pdf). The platform offers digital financial and payment services, including international transfers, peer-to-peer transfers, mobile top-ups, and bill payments. Du Pay also enables users, including domestic workers, to receive funds and salaries directly within the app.

REMEMBER- The company had received a license from the Central Bank of the UAE to offer new digital financial services in March.

App features: The platform supports Arabic, English, Hindi, Bangla, Malayalam, and Tamil languages to ensure inclusivity for its diverse user base. The app plans to incorporate a card feature to expand payment options.

What they said: “This is an essential step forward in realizing the vision of a digital UAE, enabled by seamless transactions for all residents in a truly inclusive, secure,and convenient financial ecosystem,” du CEO Fahad Al Hassawi said.

Looking ahead: Du is considering integrating cryptocurrency and investment tools into Du Pay, CEO of Financial Services Nicolas Levi told The National. These additions could significantly benefit investors and would be pursued through partnerships and in compliance with UAE regulations, Levi added. It’s also set to roll out a card soon, according to the statement.

DATA POINT- Market forecasts predict sustained expansion in the digital payment sector, projecting it to reach USD 3.3 tn in payment services by 2031.

Sharjah Islamic Bank's 1Q 2024 net income rises 11.4% y-oy

Sharjah Islamic Bank’s net income after tax rose 11.4% y-o-y to AED 259.7 mn, according to the company’s earnings release (pdf). The company attributes the net income growth to improving consumer demand and economic expansion in the UAE, as well as cost reductions and risk management strategies that the bank has undertaken to boost income.

Operating income reached AED 504.7 mn during the quarter, up a 4.3% y-o-y. Total assets increased by 6.4% to AED 70.1 bn, reflecting the bank's ability to grow its asset portfolio.

Dubai Foundation for Women and Children has a new board + Outsized taps regional MENA lead

Ahmed Darwish Al Muhairi will now chair the board of the Dubai Foundation for Women and Children, after Crown Prince of Dubai Hamdan bin Mohammed bin Rashid Al Maktoum issued a resolution to form the board of directors for the foundation, state news agency Wam reported. Al Muhairi was tapped six months ago as the director general of the Islamic Affairs and Charitable Activities Department in Dubai. Dr. Mona Issa Al Bahar will be the vice chair of the board.

Talent marketplace Outsized has tapped Srikant Krishnan (LinkedIn) as regional lead for MENA, based out of Dubai. Krishnan’s focus will be on expanding Outsized’s market base in key sectors in the region, according to a press release (pdf).

More on the storm + Russian expats in Dubai

It’s still all about the storm in the foreign press, with CNN sharing Nasa satellite images of Dubai and Abu Dhabi before and after the floods.

PLUS-Bloomberg is out with a photo essay chronicling the mark that Russians have left on Dubai as thousands flocked to the city over the past few years, bringing their businesses, festivals, and restaurants.

Dar Global + Aston Martin to create USD 250 mn luxury residence in Ras Al Khaimah

REAL ESTATE-

Real estate developer Dar Global and Aston Martin will create a USD 250 mn luxury beachfront residence development in Ras Al Khaimah, according to a press release. The project is set to be unveiled in May and completed by 2028 in collaboration with Aarvees Group. Aston Martin's design team will be responsible for creating the interiors for this project, located on Al Marjan Island near the Wynn Resort.

ENVIRONMENT-

Empower connects Al Wasl skyscraper to its network: Emirates Central Cooling Systems Corporation PJSC (Empower) has begun the process of connecting Dubai’s Al Wasl skyscraper to its district cooling network, according to a DFM filing (pdf). The connection will take place over two phases, with the first already underway and the second scheduled to start in 2H 2024. Once completed, the skyscraper will get 3.9k refrigeration tons (RT) of eco-friendly cooling capacity.

About the tower: The Al Wasl Tower stands at 302 meters with 65 levels and is now the world's tallest building with a ceramic façade, according to the filing.

Manufacturing of single-use plastic bags is now banned in Sharjah, Sharjah municipality said in a statement, directing all manufacturers to halt production. This move follows Sharjah Executive Council’s decision to ban single-use plastic bag usage, which took effect last January.

BANKING-

Shariah-compliant financial services are now available on Botim: Abu Dhabi Islamic Bank (ADIB) partnered with Astra Tech to integrate its Shariah-compliant financial products and services into the Botim app, reports Wam. ADIB is the first bank in the UAE to provide integrated financial services via Botim.

CAPITAL MARKETS-

The ADX inked an agreement with the Republican Stock Exchange Toshkent (RSE) in Uzbekistan to boost cooperation, according to a press release. The ADX and RSE will cooperate to improve their electronic trading and post-trading systems, exchange modern trading methods and technologies, and collaborate on educational and training programs aimed at fostering market growth and innovation. The MoU also sets the stage for RSE's inclusion as the fifth member of the Tabadul Digital Exchange Hub, the first digital exchange center in the region “based on mutual market access.”

The DFM is set to launch new futures contracts for Omani crude oil, Hapi Journal reports. These contracts, in cooperation with the Dubai Energy Exchange, will be available for trading starting tomorrow, with futures extending to June 2025.

Security solutions provider Delinea has expanded in Dubai with a new Azure Data Center, enhancing Privileged Access Management (PAM) solutions for the Middle East, according to a press release. The new center provides customers in the region with more deployment choices, catering to their compliance requirements through the company's improved cloud infrastructure on Azure.

LEGISLATION-

The Sharjah Consultative Council (SCC) approved a draft law to establish the Rental Disputes Center in Sharjah after several amendments, Wam reports. The law will regulate rental disputes and replace existing committees. The center's objective is to boost stability, govern rental relationships, and ensure fairness and effectiveness in resolving disputes.

TECH-

AI company G42 subsidiary Core42 has partnered up with US-based AI and machine learning firm Qualcomm to use its Cloud AI 100 products in its Condor AI platform, state news agency Wam reports.

One of several Emirati-American collaborations on AI: Microsoft last week invested USD 1.5 bn in G42 as part of a growing trend towards cooperation with the US over AI, as the latter looks to trump Chinese investments in the technology. G42 has been looking to expand in Western markets, and has offloaded all its stakes in Chinese businesses in a bid to reportedly appease US partners.

CRYPTO-

Binance will use VASP license to expand services: Crypto exchange Binance is planning to offer a wider range of virtual asset products to retail clients, including spot and leverage trading, as well as staking products, after bagging a license from Dubai’s Virtual Assets Regulatory Authority last week, Binance CMO Rachel Conlan told Sky News Arabia. The new license also allows the company to offer passive income opportunities. The company aims to provide the largest range of regulated virtual asset services both in the UAE and globally, Conlan adds.

FINANCIAL SERVICES-

Al Ansari Exchangewas awarded with the Payment Card Industry Data Security Standard (PCI DSS) certificate of compliance for 2024 after meeting the required data protection, encryption, vulnerability management, and network security standards, according to a DFM disclosure (pdf).

EDUCATION-

Abu Dhabi gets new agri-robotics center: A joint research center focusing on agri-robotics and automation will launch in Abu Dhabi’s Al Ain, owing to a collaboration between Khalifa University of Science and Technology and agri-tech food company Silal to ramp up innovation in the sector, according to the Abu Dhabi Media Office. The center will host support programs for startups and training programs for Khalifa University students and farmers, with research areas covering crop monitoring using AI-powered robotic platforms, computer vision for disease detection, and autonomous robotic systems for food production.

A quiet quarter for MENA equities

MENA equity capital markets recorded their lowest 1Q equity and equity-related issuances since 2021, raising USD 1.2 bn in 1Q 2024, according to data from the London Stock Exchange Group picked up by Zawya. This marks a 6% y-o-y decline, and comes on the back of a 14% y-o-y drop in issuances.

IPOs accounted for 80% of equity capital market activity, with follow-on offerings making up the rest.

IPOs generated USD 931.4 mn in 1Q 2024, representing a decrease of 74% y-o-y. Dubai parking operator Parkin’s IPO was the largest in the region, reeling in USD 428.7 mn in its DFM debut in March, followed by Saudi Arabia’s Modern Mills, which raised USD 314 mn, and the Avalon Pharma, which attracted USD 130 mn. The consumer products and services sector was the most active during the quarter, raising USD 448.1 mn.

Our friends at HSBC as well as Emirates NBD led the underwriting league table, the data shows.

NYSE 24/7?

Are you ready to trade New York equities around the clock? The New York Stock Exchange is polling “market participants” about their appetite for 24 / 7 stock trading. Regulators are separately looking into an application that could make the move possible.

Getting in step with the times? Or the fall of the last bastion of work-life balance in finance? “Stock exchanges have become something of a laggard in a world where other big markets, including US treasuries, major currencies, and leading stock index futures, can be traded around the clock from Monday to Friday,” writes the Financial Times.

And some brokers already simulate 24 / 7 weekday trading in a Rube Goldberg-type system that sees “trades either matched with their internal holdings, or conducted via a ‘dark pool’ trading venue such as Blue Ocean, where shares are often traded with Asian retail investors in their daytime,” the paper notes.

THE MARKETS THIS MORNING-

Asian shares are mixed in early trading this morning and futures suggest a soft opening for European markets and on Wall Street later today.

ADX	9,076	-0.6% (YTD: -5.2%)
DFM	4,168	-0.2% (YTD: +2.7%)
Nasdaq Dubai UAE20	3,581	-1.1% (YTD: -6.8%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.0% o/n	5.4% 1 yr
TASI	12,509	-0.1% (YTD: +4.5%)
EGX30	28,144	-1.7% (YTD: +13.1%)
S&P 500	5,010.60	+0.9% (YTD: +5.1%)
FTSE 100	8,024	+1.6% (YTD: +3.8%)
Euro Stoxx 50	4,937	+0.4% (YTD: +9.2%)
Brent crude	USD 87.00	-0.3%
Natural gas (Nymex)	USD 1.80	+0.5%
Gold	USD 2,344.50	-0.1%
BTC	USD 66,524.70	+2.8% (YTD: +57.4%)

THE CLOSING BELL-

The ADX fell 0.6% yesterday on turnover of AED 996.2 mn. The index is down 5.2% YTD.

In the green: Sharjah Cement and Industrial Development (+14.0%), Eshraq Investments (+9.5%) and Phoenix Group (+3.8%).

In the red: Invictus Investment Company (-6.3%), Alpha Dhabi Holding (-5.3%) and Ghitha Holding (-3.9%).

Over on the DFM, the index closed down 0.2% on turnover of AED 383.9 mn Meanwhile, Nasdaq Dubai fell 1.1%.

CORPORATE ACTIONS-

Drake & Scull International in the UAE is calling on shareholders to subscribe to its AED 600 mn capital increase as of this Thursday, with the subscription period ending on 10 May, according to a DFM disclosure (pdf). The capital increase — which comes as part of its restructuring plans in a bid to relist on the DFM — would bring its total issued capital to around AED 3.4 bn. The company is issuing 2.4 bn new shares, priced at a discount of AED 0.75.

Where will the funds go? The raised funds will cover debts, former employee payouts, government fees, and support operational activities and potential acquisitions.

Background: The DFM approved its restructuring plan — which will write off 90% of its debt — back in November 2023, which it was required to implement within a year from approval. The construction company was suspended from trading in November 2018 on the back of excessive financial losses and reporting violations.

ADVISORS- Emirates NBD Capital is serving as lead manager and bookrunner, while Emirates NBD Bank is serving as lead receiving bank.

Emaar Properties approved a dividend payout of AED 4.42 bn for 2023, according to a regulatory filing (pdf).

Emirates Ins. Company approved the distribution of AED 85.5 mn in dividends for 2023, equivalent to 55 fils per share, according to an ADX disclosure (pdf).

Sultan of Oman arrives in the UAE, as the two countries ink MoUs to boost ties

President Sheikh Mohamed bin Zayed Al Nahyan and Sultan of Oman Haitham bin Tariq met yesterday at Qasr Al Watan in Abu Dhabi, where they discussed strengthening bilateral relations and recent regional developments, state news agency Wam reported. Officials from the two countries inked MoUs to boost investments, as well as cooperation on renewables, sustainability, railways, tech, and education, Wam reported separately.

The two leaders promised to explore further economic prospects, and emphasized the “impenetrable fortress” that is the GCC in the face of regional and global challenges.

REMEMBER- Etihad Rail and Oman Rail signed an agreement late 2022 to create The Oman and Etihad Rail Company, which is co-owned by Oman and the UAE’s governments and yields USD 3 bn in capital slated for the design, development, and operation of railways linking Oman’s Sohar Port with the UAE’s national railway network. The transport link between the UAE and Oman, first announced in September, is aimed at bolstering trade between the two countries and the region. The rail line will serve both passenger and freight trains.

The UAE denied its involvement in any “form of aggression or destabilization” in Sudan, dispelling such claims as “disinformation and false narratives,” the UAE’s Permanent Representative to the UN Mohamed Abushahab said in a statement to the UN Security Council on Sunday. The UAE mission’s letter came in response to a statement delivered by the Sudanese permanent representative to the Security Council last Friday, accusing the UAE of supporting the Rapid Support Forces, an accusation the UAE rejected as “spurious” and “unfounded.”

The UAE stressed its ongoing commitment to supporting efforts to achieve a peaceful resolution in Sudan and that the Sudanese delegation’s accusation only serves to “deflect responsibility and undermine international efforts to address the humanitarian crisis in Sudan.”

IN OTHER DIPLOMACY NEWS-

Sheikh Tahnoun bin Zayed Al Nahyan, Abu Dhabi’s deputy ruler and national security adviser, met with Qatar’s Prime Minister and Foreign Affairs Minister Sheikh Mohammed bin Jassim Al-Thani to discuss strengthening bilateral ties. (Statement)

Abu Dhabi residents feel safer, happier this year, according to new survey

Happiness levels among Abu Dhabi residents rose to 7.69 on a scale of one to 10, up from 7.63 last year, according to Abu Dhabi’s Department of Community Development’s latest Quality of Life survey.

How do we measure happiness, you ask? The survey tracks over 92k individuals across 14 OECD indicators, including housing, job prospects, family income, work-life balance, health, education, environmental quality, and personal security. The OECD indicator for happiness evaluates “life satisfaction” on a scale of 1 to 10, according to the OECD better life index.

Feelings of safety and family life satisfaction remained the same: Some 93.6% of participants felt safe in the emirate, while three-fourths said they felt they could rely on their relatives and friends. 73% of participants reported feeling content with the amount of quality time they spent with family.

70.6% of participants reported satisfaction with their current housing. Participants’ satisfaction with the quality of life averaged a total score of 6.94 out of 10, with 34.3% of heads of households satisfied with family income, and 64.7% of employed participants satisfied with their jobs.

CALENDAR

APRIL

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

21 April-7 May (Sunday- Tuesday): The ICC Women's T20 World Cup Global Qualifier 2024.

22-24 April (Monday-Wednesday): Emirates Skills National Competition, Abu Dhabi National Exhibition Center, Abu Dhabi.

23 April (Tuesday): National Forum for Small and Medium Enterprises: Government Procurements, Emirates Towers, Dubai.

23-29 April (Tuesday-Monday): Subscription period for retail investors for Spinneys’ IPO.

23-30 April (Tuesday-Tuesday): Subscription period for institutional investors for Spinneys’ IPO.

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

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

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

23-25 April (Tuesday-Thursday): The AVPN Global Conference 2024, The St. Regis Saadiyat Island Resort and Park Hyatt Abu Dhabi Hotel and Villas, Abu Dhabi.

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

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

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

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

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

27-28 April (Saturday-Sunday): Frontiers in Advanced Hepato-Biliary Cancers and Transplant Oncology, Cleveland Clinic Abu Dhabi.

28-29 April (Sunday-Monday): World Economic Forum’s Special Meeting on Global Collaboration, Growth and Energy for Development, Riyadh, Saudi Arabia.

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

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

MAY

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

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

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

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

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

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

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

9 May (Thursday): Spinneys shares begin trading.

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

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

15 May (Wednesday): HFM Summit, DIFC.

15 May (Wednesday): UAE and Indian officials are set to meet for the first time on the India-Middle East-Europe Economic Corridor.

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

19 May (Sunday): InvestopiaEurope, Milan.

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

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

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

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

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.

Signposted to happen sometime in 1H 2024:

Spinneys inaugurates its first store in KSA

JULY

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

SEPTEMBER

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

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

OCTOBER

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

NOVEMBER

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

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

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

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

DECEMBER

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

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

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