IHC eyes USD 1 bn acquisition of Zambian mining firm

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Gov’t lends a helping hand to assist with storm-related damages

Good morning, wonderful people. We hope this week is nowhere near as crazy as the last, and that everyone has had a good, relaxing weekend to recover from the chaos.

THE BIG STORIES here at home are mostly M&A-related, with news that the International Holding Company is eyeing a USD 1 bn acquisition of Zambia’s Konkola Copper Mines, reports that Taqa’s takeover bid of Spain’s Naturgy could meet resistance from the Spanish government, and that Adnoc is eyeing a stake in US utilities firm AmeriGas. But first…

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.

Skies cleared up over the weekend after several days of record-breaking rainfall across the country that resulted in major flooding and some infrastructure damage, particularly in Dubai. The country is now easing back into normalcy, with airlines resuming operations, roads reopening, and ins. providers taking stock of the scale of the damage. Reuters took note of the impact of the storm.

The death toll: At least four people died in the country as a result of the storm, including three Philippine nationals and one Emirati national, according to Sky News.

We’re set to see more rain this week, but nothing compared to last week’s storm, officials say: The country will see “light to moderate” rainfall starting today, with a drop in temperatures starting Wednesday, according to the National Center of Meteorology. Temperatures will hit a high of 35°C in Dubai today, and an overnight low of 22°C, while Abu Dhabi will see highs of 36°C and an overnight low of 20°C. Climate expert Ahmed Habib, who works at the center, told Khaleej Times the rain will “not even be comparable” to last week’s torrential storms — which saw more than a year’s worth of rainfall in a single day.

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ARE THINGS BACK TO NORMAL?

Emirates and Flydubai resumed their regular flight operations after last week’s torrential storm, {Sky News Arabia } reports. Some 400 flights were canceled and several others were delayed due to the storm, Emirates President Tim Clarke said in an open letter of apology.

A few more days to completely clear backlogs: With the scale of disruptions — including the suspension of passenger check-ins and transit operations at Dubai International Airport, impacting thousands of travelers — it will take some time for the airline to handle the backlog of passengers and reschedule their flights, Clark said.

These roads are safe for travel again: Dubai’s Roads and Transport Authority has reopened the tunnel at the Beirut Street and Al Nahda Street intersection, Al Meydan Street at Al Asayel Street, and Sheikh Mohammed bin Zayed Road, after temporarily closing the roads due to flooding. The Sheikh Maktoum Bin Rashid Road (E11) linking Abu Dhabi to Dubai is also accepting traffic again near Ghantoot Bridge, Abu Dhabi’s Integrated Transport Center (ITC) said on X.

Still closed for traffic: Abu Dhabi’s Sheikh Mohammed Bin Rashid Al Maktoum Road (E311) after the intersecting Al Faqa is still closed in the direction of Dubai, according to the ITC.

DID YOU SUFFER PROPERTY DAMAGE?

Real estate development companies in Dubai have pledged to support residents impacted by the recent weather conditions, state news agency Wam reported. Companies will work with the Dubai Land Department to offer services including accommodation, pest management, ins.-related damage assessment, and evaluating property risk and damages, among others..

Emarat Al Youm has the contacts for developers:

Dubai Properties: 8003822462
Emaar: 80036227
Nakheel: 8006254335
Dubai Investment Group: 800PID (743)
Union Properties: 800332266

Emaar Properties plans to repair all its properties affected by the storm at no charge to residents, founder Mohamed Alabbar said, according to a Dubai Media Office statement.

For car damage: The National has a handy explainer on what to expect from your ins. provider for motor vehicle damage from the storm, depending on your policy, courtesy of the folks at Al Tamimi & Company. If you lost your license plate in the storm, you can report the incident and apply for a new plate through the RTA’s website.

If you’re in Sharjah: Sharjah residents can file for damage certificates at no cost through the Sharjah Police Smart App, with the Sharjah Police currently working to provide aid to its residents, according to Khaleej Times.

New committee to handle damage requests for Emiratis: Crown Prince of Dubai has asked for a committee to handle all requests from Emirati citizens affected by the rains to be established, Wam reported. The committee can receive requests via Whatsapp (0583009000), according to Gulf News.

Schools in Dubai are reopening, but will still offer remote learning in the transition: Dubai's Knowledge and Human Development Authority has instructed all private education institutions to allow for flexibility in the return to on-site education to accommodate the need for distance learning, in support of students and teaching staff facing “logistical challenges'” due to the aftermath of the heavy rainfalls last week, while clean-up efforts are underway. Meanwhile, Sharjah schools will continue to offer distance learning today, the Sharjah Private Education Authority directed.

WATCH THIS SPACE-

#1- Tax benefits for investing in R&D? The Finance Ministry launched a digital public consultation on Friday for a potential research and development (R&D) tax incentive to be rolled out under the corporate tax law, reports Wam. The consultation aims to gather input from relevant stakeholders — including businesses, advisors, institutions, and investors – on the scope of corporate R&D activities in the UAE, as well as the potential coverage, implementation, and administration of the tax incentive. The ministry is accepting responses until 14 May.

#2- Adnoc eyes AmeriGas stake: Abu Dhabi National Oil Company (Adnoc) is mulling acquiring a stake in the propane distribution unit of US utility holding company UGI Corp, AmeriGas, through its subsidiary Adnoc Distribution, {Bloomberg } reports, citing sources familiar with the matter. The stake purchase would value the company at several bn USD, the sources say. Adnoc has reportedly tapped advisers to discuss the stake acquisition, which would mark Adnoc’s entry into the US market. The move would be in line with the state-owned company’s efforts to diversify its portfolio by investing in other product segments beyond crude oil.

REFRESHER- Adnoc has doubled down on its efforts to increase oil and gas production capacity, earmarking USD 13 bn over the next five years to expand in domestic and international markets. The company plans to double its LNG production capacity by 2028, and grow its global presence by “acquiring new positions in the gas value chain, targeting opportunities in Europe, India, China and South-East Asia.” Adnoc is reportedly seeking to submit a bid higher than EUR 11.3 bn to acquire German polymer materials manufacturer, Covestro.

#3- Swiss Pilot Bertrand Piccard is planning a hydrogen-powered flight around the world, starting from Abu Dhabi, as he looks to promote the practicality of hydrogen aviation as a means to decarbonize the industry, Wam reports. The Swiss pilot, renowned for his 2015-2016 solar flight around the world, wants “to fly around the world nonstop in a green hydrogen-powered airplane,” he told the state news agency on the sidelines of the World Future Energy Summit last week. Piccard’s hydrogen plane, Climate Impulse, is being constructed with innovative propulsion technology, targeting a 2028 nonstop global flight.

MORNING MUST-READ-

Survey reveals next-gen family businesses’ priorities: Expanding into new markets and sectors topped the list of of business priorities for the next generation of family business members over the coming two years, followed by business development and the adoption of new technologies, according to a survey conducted by PwC in collaboration with the Dubai Centre for Family Businesses, according to a statement from the Dubai Media Office.

AI is in high favor: The poll surveyed 889 respondents from 63 countries, including a number of respondents from Dubai. Of the sample Dubai group, 87% expressed interest in investing in generative AI, with 32% believing that it will increase their businesses’ profitability within a year by enhancing operational efficiency and employee productivity, and overall business growth.

HAPPENING TODAY-

#1- Etihad resumes double-decker flights to NY: Etihad Airways is restarting flights to New York with the double-decker A380 aircraft after halting large-capacity flights to the US city during the pandemic. The airline had previously announced that it would bring back the flights in April, with the A380 scheduled to operate one of the two daily Etihad flights to New York.

#2- The ICC Women’s T20 World Cup Global Qualifier 2024 in Abu Dhabi is on its second day today, hosted by Abu Dhabi Cricket and Sports Hub, according to an Abu Dhabi Media Office statement. Featuring 10 teams including UAE, Ireland, Netherlands, Scotland, Sri Lanka, Thailand, Uganda, US, Vanuatu, and Zimbabwe, the qualifier — which wraps on 7 May — comprises 32 matches to determine two slots for the ICC Women's T20 World Cup 2024 in Bangladesh.

HAPPENING THIS WEEK-

#1- The AVPN Global Conference 2024 is scheduled to take place in Abu Dhabi from tomorrow 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.

#2- The National Forum for Small and Medium Enterprises: Government Procurements will take place tomorrow 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.

#3- Gulf Information Security Expo and Conference will take place from tomorrow 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.

#4- Carpet and flooring industry event Domotex Middle East 2024 is scheduled from tomorrow 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.

THE BIG STORY ABROAD-

It’s a quiet morning in the global business press, with earnings season looking set to dominate headlines for the rest of the week.

Reporting this week: Everyone from General Motors, Tesla, Visa, and Halliburton to Microsoft, Hilton, Nestlé, TotalEnergies, and Sainsbury’s. Tech giants Alphabet and Meta will also release results. Pundits hope strong earnings will hit the ‘reset’ button for US investors who have soured after the S&P’s day-over-day losses last week.

Donald Trump will become the first former US president to stand trial on criminal charges when opening arguments begin in a Manhattan courtroom today. The Donald is estimated to have spent more than 25% of his campaign donations on legal fees.

The war in Gaza and tensions between Iran and Israel continue to get plenty of front-page space in the business press, with the FT noting that Washington is set to impose sanctions on an Israeli military unit over human rights abuses and the WSJ giving prominent placement to a piece headlined Inside the white house’s frenetic scramble to avert a full-blown Middle East war.

Israel killed 18 children yesterday in attacks on Rafah in which four adults also died, the Associated Press reports.

ALSO WORTH A MOMENT of your time this morning:

US companies are becoming more intolerant of “office activists,” as underlined by Google’s firing of staff who had occupied the office of its cloud CEO in protest of a contract with Israel. (WSJ)
Golden visas are losing their appeal in much of Europe, with Spain being the latest to phase out its program. (NYT)

SIGN OF THE TIMES- BTC miners are looking at AI and power centers as they look to cope with reduced revenues following the halving this past weekend, CNBC writes.

AND- It’s the first day of Passover (our best wishes to readers who are celebrating) and International Earth Day.

IHC arm has its eyes on another Zambia mine acquisition

IHC’s International Resources Holding bids for Konkola Copper Mines in another Zambia acquisition: The International Holding Company’s (IHC) mining investment arm, International Resources Holding (IRH) reportedly bid over USD 1 bn for Mumbai-based Vedanta's stake in Zambia's Konkola Copper Mines, Reuters reports, citing unnamed sources. IRH has presented a non-binding offer to acquire London-based mining company Vedanta Resources' 51% stake in the mines, Reuters says, with talks still ongoing.

IHC is doubling down on securing critical metal supplies from Africa: Last month, the natural resources extractive company snagged a 51% stake in Zambia’s Mopani Copper Mines for USD 1.1 bn. IRH is also reportedly looking to bid for private equity player EMR Capital's 80% stake in Zambia’s Lubambe Copper Mine.

Stop in the tracks? Vedanta — which owns an 80% stake in KCM — is considering retaining its majority ownership of the Zambian copper field, owing to its longstanding desire to retain the assets under its belt, the sources said. The company hired Standard Chartered to seek investors with a minority interest in KCM, as opposed to IRH’s aim for a controlling stake.

Not entirely off the table: Vedanta is looking to raise USD 1 bn over five years for a Konkola-based deep mining project and USD 300 mn to settle local debts, which might make it look favorably to IRH’s bid. In 2019, the company entered into legal disputes with the Zambian government, which ended with its forced liquidation of KCM, a capital shortage and near operational standstill. Vedanta only recently gained back ownership of the copper assets in last September after pledging to invest USD 1 bn in Zambia.

Taqa’s Naturgy bid could hit resistance in Spain + Algeria, reports suggest

Could Spain and Algeria throw a wrench in Taqa’s potential Naturgy takeover? The Spanish and Algerian governments are each considering potentially blocking or otherwise negotiating more preferential terms for Abu Dhabi National Energy Company’s (Taqa) potential acquisition in Spanish gas producer and renewable energy player Naturgy, according to separate reports from Spain’s El Debate and Algerian newspaper Echorouk El Yawmi.

Spain is considering its options: Spain’s Sánchez government is reportedly looking to “facilitate” Taqa’s takeover bid for 100% of Naturgy, on the condition that Taqa would then sell back 10-15% of the company to the Spanish government, El Debate reports, citing sources it says have firsthand knowledge of the matter. The government is reportedly looking to ensure it maintains a stake in Naturgy, which it considers to be a “strategic company” since it is Spain’s main gas supplier, El Debate says. If the government is unable to reach an agreement to that effect, it could move to block the transaction altogether, according to El Debate’s sources.

Enter the “anti-takeover shield”: Spain introduced legislation back in 2020 (pdf) introducing a system known as the “anti-takeover shield” that granted the government the right to veto foreign investors’ acquisitions of companies deemed to be “strategic.” The regulation applies to the acquisition of a stake of 10% or more of listed companies, or acquisitions valued at EUR 500 mn or more for unlisted companies. The rules were initially introduced during covid-19, when foreign investors were vying for acquisitions to capitalize on market volatility that saw company valuations plummet, according to Chambers and Partners. With these rules in place, the Spanish government has the authority to block Taqa’s takeover bid for Naturgy, El Debate explains.

IN CONTEXT- Spanish protectionism is in display right now as the government there looks to ensure Saudi telecom operator Stc doesn’t become the largest single shareholder in mobile network outfit Telefonica, EnterpriseAM Saudi has reported.

Algeria is reportedly also not too keen on the agreement, and could move to block the transaction, Echorouk says, without providing further details. Algerian state-owned oil company Sonatrach holds a 4.1% stake in Naturgy and is a major international partner of the Spanish energy company. Naturgy purchases Algerian gas, which is transported through the Medgaz pipeline from Algeria’s Beni Saf to the South of Spain. Sonatrach holds a 51% stake in the pipeline, with Naturgy holding the remaining balance.

Background: Taqa is in discussions with Naturgy’s two largest shareholders — CVC and GIP — to potentially acquire their stakes in the Spanish company. Taqa is also discussing “a potential cooperation in relation to Naturgy” with Naturgy’s largest shareholder, Criteria Caixa, it confirmed last week.

Shuaa Capital restructures USD 150 mn debt

Shuaa Capital has reached an agreement with its bondholders to restructure some USD 150 mn in outstanding bonds owed by a special purpose vehicle it owns, according to a disclosure (pdf). The bondholders will now have the option to convert a portion of their debt holding into equity in Shuaa, with the remaining debt to be settled at an unspecified “pre-agreed” markdown by 31 March, 2025, the company said in the disclosure.

Why this matters: The bonds were originally due on 31 March, 2024, after Shuaa extended the maturity date of the bond. The investment bank’s board said last month that it was asking bondholders to allow it to stretch payment terms as part of a wider restructuring that it says is a checkpoint on the road to a “capital injection that will restore business stability and continuity.” The company has seen its net losses deepen more than fivefold over the past year. The company expects to wrap up the restructuring process by June, and is currently negotiating with its senior creditor over the capital injection.

Background: The bonds, approved (pdf) back in October 2020, were priced at a coupon rate of 7.5% and are listed on the London Stock Exchange’s International Securities Market.

There’s going to be new management to oversee the changes: Shuaa “is putting in place a new management team and is working to complete its capital optimization plan imminently,” with plans to issue its audited FY 2023 financial statements following the completion of negotiations with its senior creditor, it said in the disclosure. Last month, the company said it accepted the resignation of its group chief legal and compliance officer, after its head of private markets had also resigned. Earlier in January, CFO Gunshyam Kripa and two separate board members stepped down from their positions.

Masdar, Hidroelectrica to expand partnership

Masdar + Hidroelectrica to jointly invest EUR 1.5 bn in new renewables projects: State-backed renewables giant Masdar and Romanian state-owned utility company Hidroelectrica agreed to form a joint venture to develop solar and energy storage projects, extending their partnership by three years, Hidroelectrica said in a {statement }.

In detail: The JV — set to be registered by the end of June — will see the two companies collaborating on the development of onshore and floating solar projects and battery energy storage systems in Romania for three years, with an investment of EUR 1.5 bn, Romanian Energy Minister Sebastian Burduja said. The JV’s pilot project will see Masdar develop floating solar plants on seven reservoirs in the middle and downstream sections of the Olt river in Romania, Hidroelectrica CEO Borbèly Kàroly is quoted as saying by Balkan Green Energy News.

Ownership of the JV will be split 50-50 between Masdar and Hidroelectrica,Kàroly reportedly said.

The partnership could venture beyond Romania: With the extension of the JV, the firms agreed to explore potential business in other renewable energy segments — including wind power — and implement them in other countries outside Romania, Kàroly said.

The firms might potentially extend the JV for another term if it proposes final investment decisions for a total of at least 2 GW in greenfield or brownfield projects, according to the news outlet.

Background: Masdar signed a joint cooperation agreement in March last year with Hidroelectrica to deploy offshore wind energy and floating solar energy projects totalling 2 GW in Romania.

** TAP OR CLICK ON THE HEADLINE to read this section on the web with all background and external links.

Masdar to finance Central Asia renewable projects with second green bond

Masdar is planning to take a green bond issuance worth between USD 750 mn and 1 bn to market this year to secure funding for its global renewable projects, Masdar Director of Corporate Finance and Treasury Bruce Johnson tells {The National}. The company intends to use the proceeds from the issuance to finance projects in Central Asia, specifically in Uzbekistan and Azerbaijan. This comes as part of a USD 3 bn bonds program aimed at funding clean energy initiatives in the UAE and globally.

This would mark the company's second green bond issuance, after raising USD 750 mn last year in its debut green bond sale, which it listed on both the London Stock Exchange and the ADX.

Is there more where that came from? “The reason why you can expect that we will do another issuance this year, and in future years, is because we have a very strong pipeline of new greenfield projects around the world,” Johnson said. “These projects are at an advanced stage of development and we are committed to meeting their equity funding needs with the proceeds of our green bonds.”

** TAP OR CLICK ON THE HEADLINE to read this section on the web with all background and external links.

Dubai inflation mostly flat in March

Annual inflation in Dubai cooled slightly in March, inching down to 3.34% during the month from 3.36% in February, according to figures from the Dubai Statistics Center (pdf). The lower inflation reading was driven by decreased furnishings and household maintenance, information and communication, restaurants and accommodation services, and personal care and social protection costs.

The breakdown: Prices of housing, water, electricity, gas, and other fuels — the largest component of the basket of goods and services — increased at the highest pace this year to 6.34% during March, compared to 6.25% in February, while food and beverage inflation accelerated to 3.1% from 3.08%.

Month-on-month, Dubai’s inflation slowed to 0.24% in March, down from 0.54% in February, according to the statistics center’s monthly inflation report (pdf).

Abu Dhabi’s non-oil foreign trade up 7% in 2023

Abu Dhabi’s non-oil foreign trade increased 8% y-o-y in 2023, reaching over AED 281.9 bn, according to Abu Dhabi Customs statistics.

Imports are coming in strong: Imports climbed 19% y-o-y to surpass AED 136.4 bn in 2023, compared to AED 114.3 bn in 2022. Re-export activities in Abu Dhabi also grew 11% y-o-y to reach some AED 52.4 bn, up 11% y-o-y from AED 47.2 bn in 2022.

Driving growth: The growth in trade was attributed to the government’s economic diversification efforts and implementation of policies and initiatives to aimed at fostering a “business environment open to the global economies, thereby enhancing the country's competitiveness,” Director General of the General Administration of Abu Dhabi Customs Rashed Lahej Al Mansoori said, according to a statement from the Abu Dhabi Media Office.

Tech adoption played a part: The growth was also driven by the government adopting more updated technology, with Abu Dhabi Customs enhancing its operations and digital services by expanding its Invisible Customs System, such as the Trade chain platform. By introducing these initiatives, Abu Dhabi Customs aims to “streamline time and effort for customers, facilitate customs inspection procedures, and support the completion of transactions with high accuracy and speed,” Al Mansoori noted, emphasizing that the emirate has achieved a 100% compliance rate with the World Customs Organization's SAFE framework of standards.

GCC insurers’ income to expand between 5-15% in 2024 -S&P

GCC ins. providers are expected to see their income climb between 5-15% in 2024 on the back of “ongoing economic expansion in the region and rate increases,” S&P Global said in a report. “Favorable economic conditions and rate adjustments for motor and medical lines will remain key growth drivers,” S&P credit analyst Emir Mujkic says. Saudi ins. providers are projected to outpace other firms in the region this year, according to the report.

UAE ins. providers had a good 2023: Mostly driven by higher investment returns, UAE-based providers booked AED 1.8 bn in net income last year, up 19% y-o-y. The five largest listed ins. firms — out of 26 — accounted for 72% of the sector’s total income and 63% of total ins. revenues, according to S&P. This trend of market concentration is likely to continue as industry heavyweights “increasingly benefit from economies of scale and tend to have better access to resources,” compared to smaller firms, the rating agency predicts.

Weathering the (literal) storm: The ins. sector's income is projected to remain on an upward trajectory driven by higher motor premiums and increased interest rates. Despite the damage caused by heavy rainfalls over the past months, the agency foresees the storm having little impact on local insurers as the losses are either “not insured or ceded to global re-insurers,” S&P said. Cession allows local insurers to reduce their risk exposure by passing on the losses to the re-insurers.

Moody’s forecast isn’t as sunny: Despite seeing profitability gradually pick up, the heavy rainfall that recently hit the UAE is expected to add pressure on local insurers, especially impacting small and medium-sized ins. firms that have not seen recent income growth, Asharq Business reports, citing a Moody’s report. 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.

Other downside risks: The recently introduced 9% corporate tax is expected to compress earnings this year, while “investment incomes on fixed and cash deposits could decline slightly” if the US Federal Reserve moves to unwind its monetary tightening cycle this year, according to S&P.

While not currently impacting the ins. industry, geopolitical instability remains the most critical market risk, as a regional escalation of the war would be detrimental to the entire region’s economies and their banking systems, according to the report. Coupled with sluggish global economic growth, GCC insurers’ credit conditions and investment portfolios would be affected. Insurers with weaker capitalization and heightened risk exposure are expected to bear the brunt of worsened credit conditions in the scenario of prolonged geopolitical tensions as high-risk assets would “come under pressure.”

Consolidation could soften the blows: S&P Global foresees more ins. firms merging to increase their capital this year, as tighter regulations would put more pressure on smaller and underperforming companies to meet their solvency capital requirements.

ICYMI- Abu Dhabi National Ins. Company (Adnic) completed its acquisition of a 51% stake in Riyadh-based Allianz Saudi Fransi Cooperative Ins. (Allianz SF) last week, making it a majority shareholder in the Tadawul-listed ins. Company.

Credit conditions to hold firm: The rating agency projects that GCC ins. companies’ credit conditions will “remain broadly stable,” buoyed by “robust capital buffers, adequate growth,” and higher earnings.

National Bank of Umm Al Quwain reports 1Q 2024 earnings

National Bank of Umm Al Quwain’s (NBQ) reported a 26% y-o-y increase in its net income after tax in 1Q 2024 to AED 176 mn, according to the bank’s earnings presentation (pdf). The lender’s net interest income rose 27% y-o-y during the quarter to AED 176 mn.

Driving the growth: The bank attributed the performance to a “steady increase in operating income and improvement in operational efficiency.” NBQ also cited its cost optimization strategies as drivers of its income growth.

ADIA taps Brookfields managing partner for PE unit + Dubai agencies get new heads

The Abu Dhabi Investment Authority (ADIA) appointed Julian Thomas (LinkedIn) as head of Americas for its private equities department, Bloomberg reports, citing unnamed sources. Thomas, currently managing partner overseeing strategic initiatives at Brookfield Asset Management’s renewables sector, will assume the role at ADIA in the latter half of the year. Thomas has been with Brookfield since 2015 and previously held the position of chief investment officer for the renewables division.

Three Dubai agencies get new heads: Dubai Crown Prince Hamdan bin Mohammed Al Maktoum has appointed three officials to fill senior positions in three Dubai government agencies, according to a statement. Naeema Hassan Mohammed Ahli has been named CEO of the Dubai Women Establishment, while Ali Mohammed Al Ketbi from Dubai Police has been appointed as CEO of Dubai Government Workshop. Additionally, Obaid Al Nuaimi (LinkedIn) has been promoted to CEO of Aviation Security and Accident Investigation at the Dubai Civil Aviation Authority.

More on AI and the storm in the foreign press

The Financial Times is the latest to look at the US’ push for AI partnerships in the UAE as part of its quest to compete with China in AI development. Microsoft invested USD 1.5 bn in state AI company G42 last week, while OpenAI CEO Sam Altman has been shuttling between the UAE and Washington this month, meeting with government officials and investors to facilitate collaboration between AI companies and governments in both countries.

The impact of the storm on the UAE — and the need for drainage infrastructure — got more ink over the weekend. (Bloomberg | CNN | CNBC)

AD Ports and Adnoc Distribution partner to ship marine lubricants globally

SHIPPING + MARITIME-

AD Ports to ship marine lubricants globally: AD Ports Group is expanding its ports cluster business to include global marine lubricant distribution, with a new partnership with Abu Dhabi National Oil Company (Adnoc) Distribution, it said in a statement. The partnership will see AD Ports initially distribute Adnoc Distribution’s high-demand lubricants to shipping and maritime industries in the UAE, followed by a global footprint of over 70 international destinations.

INVESTMENT-

UAE, Taqa eye investment with Uzbekistan: The UAE is looking to boost ties with Uzbekistan across the energy, renewable energy, infrastructure, and transport sectors, Energy and Infrastructure Minister Suhail bin Mohammed Al Mazrouei said during a high-level visit to Uzbekistan, Wam reports. Al Mazrouei met with senior Uzbek officials, including the foreign minister, investment minister and deputy prime minister. The Abu Dhabi National Energy Company (Taqa) is considering investing in renewable energy projects in Uzbekistan, Al Mazrouei also said.

FINTECH-

xCube rolls out first fully automated security lending and borrowing service: Dubai-based brokerage platform xCube has introduced the first fully automated securities lending and borrowing (SLB) service for retail investors in the UAE, Wam reports. The platform enables retail investors on the Dubai Financial Market (DFM) to access their stocks, hedge their portfolios and lend their securities to other investors in exchange for a fee, among other services.

Chinese demand for gold pushes the metal to record highs

Chinese demand pushes gold to record highs: China extended its lead over India as the world’s biggest buyer of gold bars, coins, and jewelry — Chinese demand for gold jewelry rose 10% over the past year, while Indian demand fell 6%. Demand from China pushed the precious metal to a record-breaking USD 2.4k an ounce this year, Bloomberg reports.

China’s demand for gold stands to grow even further as a weakening local currency and ongoing property crisis pushes investors towards the metal, Hong Kong-based consultant Precious Metals Insights Managing Director Philip Klapwijk told Bloomberg. “The weight of money available under these circumstances for an asset like gold — and actually for new buyers to come in — is pretty considerable … There isn’t much alternative in China. With exchange controls and capital controls, you can’t just look at other markets to put your money into,” he added.

THE MARKETS THIS MORNING-

Asian markets are rebounding from Friday’s sell-off, with the Hong Kong’s Hang Seng leading the gainers, up nearly 2.3% in early trading. That’s raising hope that positive sentiment (or perhaps a bit of wishful thinking?) could see the Nasdaq (down 5.5% last week) and S&P (down >3% last week) snap their six-day losing streaks.

In context: The two big US benchmarks were dragged down last week by a tech selloff.

What to watch for this week: 1Q 2024 results announcements from Alphabet, Meta, and Microsoft.

Right now: US and European equities futures were up slightly in overnight trading.

ADX	9,126	-0.6% (YTD: -4.7%)
DFM	4,175	-0.8% (YTD: +2.8%)
Nasdaq Dubai UAE20	3,620	-1.4% (YTD: -5.8%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.0% o/n	5.4% 1 yr
TASI	12,518	+0.1% (YTD: +4.6%)
EGX30	28,623	+1.0% (YTD: +15.0%)
S&P 500	4,967	-0.9% (YTD: +4.1%)
FTSE 100	7,896	+0.2% (YTD: +3.6%)
Euro Stoxx 50	4,918	-0.4% (YTD: +8.8%)
Brent crude	USD 87.00	-0.3%
Natural gas (Nymex)	USD 1.75	-0.1%
Gold	USD 2,401.50	-0.5%
BTC	USD 64,628.50	-0.1% (YTD: +53.3%)

THE CLOSING BELL-

The DFM fell 0.8% yesterday on turnover of AED 310.6 mn. The index is up 2.8% YTD.

In the green: Al Salam Sudan (+5.7%), du (Emirates Integrated Telecommunications Company) (+2.0%) and Ekttitab Holding Company (+1.7%).

In the red: Dubai Islamic Ins. and Reins. (-8.2%), Dubai Refreshment Company (-7.7%) and Watania International Holding (-3.1%).

Over on the ADX, the index closed down 0.6% on turnover of AED 1.2 bn. Meanwhile, Nasdaq Dubai fell 1.4%.

CORPORATE ACTIONS-

Invictus Investment, Ghitha’s trading arm, is paying out AED 45 mn in dividends for 2023, equivalent to 16% of the company’s capital, according to an ADX disclosure (pdf).

UAE President, FM discuss regional turmoil with Iran and UN Secretary-General

UAE, Iran talk bilateral relations + regional developments: Foreign Affairs Minister Sheikh Abdullah bin Zayed Al Nahyan and his Iranian counterpart Hossein Amir-Abdollahian discussed boosting ties in a phone call on Friday, reports Wam. The foreign ministers also touched on the latest developments in the region, with bin Zayed reiterating the need for self-restraint to prevent the escalation of tensions in the Middle East and promote regional security.

The Foreign Ministry expressed “deep concern” over ongoing regional tensions, urging restraint from any actions that might further escalate instability in the region. The Ministry reiterated its call for the UN and UN Security Council to settle long-standing regional disputes and ongoing crises in order to ensure global security.

President Sheikh Mohamed bin Zayed Al Nahyan spoke with UN Secretary-General António Guterres on Saturday, discussing humanitarian cooperation between the UAE and the UN to support regional and global peace and development, reports Wam. The phone call covered Middle East developments, focusing on Gaza's humanitarian crisis and the importance of urgent aid flow and a comprehensive two-state solution to ensure stability in the region.

Foreign Trade Minister Thani bin Ahmed Al Zeyoudi met with Venezuelan President Nicolás Maduro during a working visit to several Latin American countries, where they discussed strengthening bilateral ties in investment, trade, and the economy, Wam reports. The minister also talked with Venezuelan ministers, government officials, and private sector representatives on the sidelines of his visit.

Minister of State Ahmed Al Sayegh and Korea's Vice Minister of Foreign Affairs, Kim Hong Kyun, recently met to discuss strengthening UAE-Korea ties, according to a Foreign Affairs statement. The meeting focused on renewable energy, nuclear power, defense industries, and trade collaborations. Kim commended the progress made on trade agreement discussions and expressed hope for it to be signed soon. They also discussed regional security in the Middle East and the Korean peninsula.

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.

22 April (Monday): EU-Gulf Cooperation Council High Level Forum, European Convention Centre in Luxemburg.

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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