It’s a big morning for M&A news, particularly in the healthcare sector

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WHAT WE’RE TRACKING TODAY

It’s issue #001 of EnterpriseAM UAE

Good morning, wonderful people, and welcome to the first official issue of EnterpriseAM UAE, your essential daily report on business, finance, the economy, and regulation in one of the world’s most exciting economies.

Enterprise is read by hundreds of thousands of senior people around the world — by business leaders, investors, regulators, public officials, and diplomats who need the inside track on news that will move markets, drive investment decisions, and set the corporate agenda in the UAE. They all share three characteristics: They are ambitious, they are curious about the world around them, and they want to make a difference.

We’re honored to be launching in partnership with our friends at Mashreq, a UAE-born multinational champion that for more than five decades has helped individual and corporate clients alike take charge of their financial futures. One of the UAE’s best-performing banks, Mashreq’s growing footprint spans the Middle East and North Africa with a strong presence in the financial capitals of the world, including in Europe, Asia, Africa, and the United States.

Mashreq combines the entrepreneurial spirit of Dubai with enduring trade banking relationships across the region. It’s that same spirit and view of an interconnected region that saw us bring Enterprise to life back in 2014. We owe a deep debt of gratitude to Mashreq Group CEO Ahmed Abdelaal and his team for making this possible. We are honored to count them among our friends.

EnterpriseAM UAE is a daily subscription-only report delivered at 7am UAE / 6am KSA / 7am Egypt. For nearly 10 years, we’ve been trusted by C-suite executives, directors, fund and portfolio managers, entrepreneurs, senior managers, non-execs, investment relations officers, researchers, analysts, and diplomats around the world

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THE BIG STORY ABROAD-

THE US ELECTION IS OFFICIALLY UPON US- Candidates for the Republican presidential nomination are urging supporters to turn out for the party’s first nominating contest today despite bone-chilling cold as an Arctic front moves across the United States, with some 110 mn people under wind-chill warnings this morning.

The Iowa caucuses are the first party-level contests that will determine the two candidates who face off in the fall election.

The real race is to see who is going to come in second: Former President Donald Trump looks set to come out on top in the caucuses, with a key poll on Saturday night giving him the support of 48% of all caucus-goers. Former diplomat Nikki Haley is second with 20%, edging out Florida Governor Ron Desantis with 16%.

The news is everywhere in the global business press (FT | WSJ | Reuters | Bloomberg). Follow Politico, Axios and the New York Times’ liveblog for daylong coverage if that’s your thing.

Sound smart: Pundits think that while Trump will take Iowa, Haley is showing momentum and could put in a strong showing in New Hampshire, where the Republican primary takes place on 23 January. It’s an open question, though, whether any Republican challenger has what it takes to beat Trump.

ALSO- Ikea, Volvo, and Tesla are among the European manufacturers forecasting shortages of goods amid the ongoing disruption of shipping through the Red Sea.

AND- Six pro-Palestinian activists have been arrested in the UK after plotting to disrupt trading at the London Stock Exchange, the Financial Times reports.

HAPPENING TODAY-

It’s day one of Davos:The World Economic Forum (WEF) kicks off today and runs until 19 January in Switzerland under the theme “rebuilding trust.”

The UAE is heading to Davos in force: Over 100 Emirati personalities, 80% of whom are from major national companies and the private sector, will participate in the forum. They will join international heavyweights from politics, business and civil society.

This year’s theme is “rebuilding trust.” The official launch is today, but the heavier sessions will get properly underway starting tomorrow through Friday.

You can check out the forum’s official teaser agenda here.

MEANWHILE- Investors have until Wednesday to subscribe to Lunate’s India ETF, the GCC’s first exchange-traded fund (ETF) tracking Indian stocks. Buyers can place orders through the ADX eIPO portal or via authorized participants, Lunate Capital said in a statement. The asset manager kicked off the subscription period on Friday and is set to debut the ETF on the ADX on 26 January.

About the ETF: Lunate’s Chimera S&P India Shariah ETF will track the performance of Shariah-compliant equities listed on the Bombay Stock Exchange. The fund comes after Indian stocks rallied in 2023 on the back of stronger than expected economic growth, solid company earnings, domestic mutual fund inflows and lackluster growth in China.

MORNING MUST READ-

Execs in the UAE and Saudi Arabia are concerned about how they and their companies will both keep up with rapid technological change, but 80% of them are optimistic about how their companies will fare this year and 85% have confidence in the economies in which they do business, according to the 2024 AlixPartners’ Disruption Index.

The regional carve-out from the 11-country survey includes 50 UAE and 50 Saudi execs, according to the report (pdf | website). The report surveyed 3k execs, half of them members of the C-suite and half of them working at companies worth USD 1 bn or more, in 10 industries ranging from automotive and energy to financial services, healthcare, technology, and telecoms.

Some 90% of regional execs surveyed say they thrive on disruption, well ahead of the 75% who said the same globally, according to Arabian Business, which spoke with AlixPartners’ Middle East chief, Gabriel Chahine.

CEOs in the region and around the world are most concerned about the pace of tech change as generative AI becomes a factor in more businesses. While most respondents say their boards and shareholders are responsive to the need to change business models:

85% fear change is making staff skills obsolete;
80% say staff are not open to change;
59% globally say they’re worried they’re “personally falling behind the knowledge and skills curve”;
and 63% worry their companies will struggle to keep up with the pace of technological change.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- You have until Thursday, 18 January to nominate someone for the Sharjah Entrepreneurship Festival’s 2024 Seffy Awards, which recognize impactful startup founders and mentors, state news agency Wam reports. Tap or click here to submit you nomination. Results will be out on 3 and 4 February.

#2- Temperatures will drop to 12ºC overnight in Ras Al Khaimah and Al Ain this week, accompanied by mist and fog, reports the National. You can keep your shades on this morning, however, thanks to a sunny forecast and warm temperatures, peaking at 27ºC.

#3- Avoid Sheikh Rashid Bin Saeed Street in Abu Dhabi, which is partially closed until 15 January, reports Khaleej Times.

#4-Single-use plastic bags are now banned in Ajman’s shopping malls and retail outlets, the Ajman Municipality said on X.

#5- Sheikh Zayed Road neighborhood is now Burj Khalifa: The Dubai Land Department revealed the new names for 28 areas in the city yesterday, including changing the Sheikh Zayed Road neighborhood to Burj Khalifa and Jebel Ali Village to Jebel Ali First. You can check out the full list of the name changes here.

WATCH THIS SPACE-

#1- We’re 100 days away from the Emirates Drug Establishment taking on further form. The board of the newly-established regulator met last week to sign off on a 100-day plan to complete the build-out of the new federal agency, which will be responsible for regulating all pharma products in the country, Wam reports.

#2- Ajman to get a new freezone: Ajman Ruler Sheikh Humaid bin Rashid Al Nuaimi issued two decrees yesterday to establish a new freezone in the emirate, dubbed the Ajman Centre for New Projects, state news agency Wam reports.

#3- A new AED 150 mn content creator fund will support content creators as well as the establishment of a permanent HQ for influencers. Vice President Mohammed bin Rashid Al Maktoum announced the fund.

CIRCLE YOUR CALENDAR-

The Dubai International Project Management Forum (DIPMF) starts today (Monday, 15 January) at the Madinat Arena in Madinat Jumeirah. DIPMF 2024 will focus on sustainability, modern methods of project management, and future trends and technology. The event runs until Thursday, 18 January.

iFX EXPO Dubai 2024 is also on this week: The three-day fintech and online trading expo iFX EXPO Dubai 2024 starts tomorrow, Tuesday, 16 January at the Dubai World Trade Centre. Check out the full agenda here.

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

First Abu Dhabi Bank issues first sukuk of 2024

First Abu Dhabi Bank (FAB) placed a five-year, USD 800 mn sukuk on Thursday at 85 basis points (bps) over US treasuries, good for an all-in yield of nearly 4.8%, state news agency Wam reports. The shariah-compliant bonds are part of a USD 5 bn trust certificate issuance program announced last January, according to the prospectus (pdf).

Fast fact: It’s both the first global sukuk issuance of the year and the region’s first non-sovereign issuance of 2024. (Saudi Arabia sold USD 12 bn worth of Yankee bonds in a similarly oversubscribed issuance last week.)

Investor demand was strong:The offering was 1.9x oversubscribed, with FAB receiving USD 1.45 bn in orders from international fund managers, supranationals, and banks, leading the bank to narrow the spread, Reuters reported earlier, citing a document it has seen. Some 76% of the sukuk was allocated to Islamic investors, while 38% was allocated to international counterparts, reports Wam.

Background: The spread was revised downwards from earlier guidance of 100 bps on strong investor demand, resulting in one of FAB’s lowest spreads on any USD-denominated debt transaction.

ADVISORS- Dubai Islamic Bank, Emirates NBD Capital, HSBC, KFH Capital, Sharjah Islamic Bank, Standard Chartered Bank, and the Islamic Corporation for the Development of the Private Sector were joint lead managers and bookrunners, according to Reuters.

ADQ to acquire 40.5% of Egyptian hospitality group

ADQ invests big in Egypt’s historic hotels: Abu Dhabi wealth fund ADQ and its subsidiary Adnec Group will take part-ownership of several luxury Egyptian hotels after they signed an agreement to acquire 40.5% of Icon, the hospitality arm of Talaat Moustafa Group (TMG), through a capital increase, ADQ and ADNEC said in a joint statement on Friday, without disclosing the value of the transaction.

Who owns what: ADQ and Adnec will jointly invest in the acquisition through a special purpose vehicle. Adnec will hold 51% of the new vehicle, while ADQ will own 49%.

Background: Icon acquired a 39% stake in seven historic hotels under Egypt’s state privatization program in December, with plans to eventually hold a 51% stake in the hotels, bringing the transaction’s value to USD 800 mn. The seven hotels include the Cairo Marriott Hotel in Zamalek, Marriott Mena House, Steigenberger Hotel El Tahrir Cairo, Steigenberger Cecil Alexandria, Sofitel Legend Old Cataract Aswan, Mövenpick Aswan, and Sofitel Winter Palace Luxor. Added to Icon’s existing portfolio, Icon will have 5k rooms and 15 luxury assets nationwide.

Icon already owns some of Egypt’s most well-known properties and has four more in the pipeline. Its existing portfolio includes two Four Seasons properties in Cairo and one each in Alexandria and Sharm El Sheikh as well as the Kempinski Nile Hotel. It has additional properties in development or design in Cairo, Luxor, and Marsa Alam.

We might have an idea about the value of the new transaction: TMG last month said that an “international strategic investor” would acquire a minority stake worth USD 882.5 mn in Icon via capital increase, giving it an indirect stake in the hotels. This will result in “one of the largest foreign direct inflows into Egypt in the last several years,” TMG said at the time.

What’s the money for? Proceeds from the transaction will go towards deleveraging Icon’s existing debt and to pay for the acquisition of the historic hotels from the government, according to ADQ.

ADVISORS- EFG Hermes was sole financial advisor to TMG Holding on ADQ and Adnec’s acquisition of a stake in Icon and was sole financial advisor to TMG on its acquisition of the heritage hotels from the Government of Egypt. White & Case UAE and Egypt were legal counsel to ADQ and Adnec, while Gibson Dunn, Sarie El-Din & Partners, and Shahid Law were counsel to TMG.

GII acquires USD 160 mn stake in KSA’s Abeer. PLUS: PureHealth completes acquisition of the UK’s Circle Health Group and Tawazun acquires Tasneef

It’s a big morning for M&A in the healthcare sector, with Gulf Islamic Investments acquiring a minority stake in a Saudi medical firm and newly listed PureHealth completing its acquisition of a UK big healthcare player. In other M&A news: Defense authority Tawazun Council is acquiring Tasneef.

#1- Dubai-based Gulf Islamic Investments (GII) acquired a USD 160 mn minority stake in Saudi Arabia’s Abeer Medical Company in a bid to expand its presence in new cities, Bloomberg reports, citing a company statement. The Abeer Group manages a portfolio of around 50 healthcare facilities in Saudi Arabia and around the Persian Gulf.

GII is no stranger to Saudi: In mid-2023, GII obtained a full investment license from the Saudi Capital Market Authority and announced the opening of a new office in Riyadh, according to a press release. The Shariah-compliant investment company also acquired a 70% stake worth USD 600 mn in Saudi Arabia’s largest provider of dental and dermatology care, Almeswak Dental Clinics, back in 2022.

More GII investments to come globally: GII is also earmarking some USD 1 bn for strategic investments in the US, India, and the Gulf over the next 12 months, Bloomberg reports.

#2-PureHealth completed its USD 1.2 bn acquisition of UK-based Circle Health Group as part of its global expansion program owner company Centene, according to a press release. The acquisition marks the company’s entry into the UK and was initially agreed in August.

This is PureHealth’s second acquisition in as many years: The healthcare firm acquired a USD 1.8 bn stake in the US’ fourth largest private healthcare group, Ardent Health Services.

Background: PureHealth went public on the ADX in December in what was the second-largest IPO in the UAE in 2023, valued at AED 36.2 bn.

About Circle Health:Circle Health Group is one of the UK’s largest independent hospital operators. It currently runs 53 hospitals across every region of Great Britain and treats over 2 mn privately insured, self-pay, and NHS patients with a team of 6k consultant specialists.

OTHER M&A NEWS-

Emirati defense and security acquisitions authority Tawazun Council has acquired the Emirates Classification Society (Tasneef) and its subsidiaries as part of its strategy to expand in the defense and security sector, state news agency Wam reports.The acquisition will see Tawazun Council leverage Tasneef’s expertise in maritime classification, technical consulting, and training to boost national defense capabilities.

About the two authorities:Tawazun Council is an independent government entity assisting the Defense Ministry, Abu Dhabi Police, and UAE-based security agencies with everything from R&D and certification to third-party inspection. Tasneef is concerned with maritime safety, environmental preservation, and international standards in business assurance and quality management.

Tabreed terminates CapitalMed contract with Egypt over FX concerns

Tabreed pulls the plug on Egypt contract, citing FX concerns: DFM-listed district cooling firm Tabreed has terminated a contract to build a heating and cooling plant for an Egyptian medical complex as Egypt’s foreign exchange challenges make the project “financially unsustainable,” CEO Khalid Al Marzooqi told Asharq Business. While the investment costs were in USD, its return was pegged in EGP, he explained.

BACKGROUND- Tabreed landed an AED 306.4 mn (USD 83.4 mn) contract in September 2022 to design, build, and operate a heating and cooling plant in Cairo for CapitalMed, a unit of Egyptians for Healthcare Services (EHCS). The contract came just months after Tabreed entered the Egyptian market with a contract to provide cooling services for mixed-use developer Marakez’s D5M shopping center in East Cairo.

How did EGP volatility impact the contract? Tabreed had asked EHCS to modify the water tariff rate set in the contract in response to the steeper-than-expected currency devaluation, but the latter declined the request, prompting the Emirati firm to withdraw from the project, Asharq reported, citing a source it says is in the know.

Moving forward: While Tabreed’s Chief Financial Officer Adel Al Wahedi said in July that the company was “slowing down” plans for additional investment in Egypt as it waits for a stable outlook on the EGP, Al Marzouqi told Asharq that Tabreed is “still committed to investing in the Egyptian market.”

UAE estate prices surged 10.4% y-o-y in 2023

Homebuyers in the UAE are up against the highest y-o-y jump in real estate prices globally in 2023, with house prices climbing nearly 10.4% last year, according to International Monetary Fund (IMF) data. Dubai’s per-sq-ft prices reached a high of AED 1,271 in November 2023, beating the previous peak in September 2014 by 3%, according to Cavendish Maxwell Group Company’s 2023 Monthly Market Report.

Property prices in the UAE have inflated since pre-pandemic levels, growing over 14.1%, according to the data. The UAE ranks sixth globally in estate price increases since pre-pandemic levels, trailing behind Portugal, the US, Japan, and the Netherlands.

Background: Price surges come down to a high influx of foreign workers and an increased demand from high net-worth individuals, says Sergei Rakov, head of technology at Allsopp & Allsopp. Half of Dubai’s property market consists of overseas buyers, with Russian oligarchs making up nearly 15% of the market, reports The Telegraph.

Emirati manufacturers sign USD 2.2 bn projects with Bahraini, Jordanian firms

Emirati manufacturers inked five agreements with Bahraini and Jordanian companies during a committee meeting of the Industrial Partnership for Sustainable Economic Development held in Manama, Bahrain. The projects and export agreements have a total value of about USD 2.2 bn, state news agency Wam reports.

Refresher: The UAE, Egypt, Bahrain, and Jordan set up an industrial partnership in 2022 in a bid to support industrial growth and strengthen regional supply chains.

#1- Bahrain Steel to provide Emirates Steel with USD 2 bn iron ore: Bahrain-based Foulath Holding Group ’s subsidiary, Bahrain Steel company, inked a USD 2 bn agreement to supply Emirates Steel Company with 2 mn tons of iron ore pellets over five years, according to Wam.

#2-W Motors to set up EV plant in Jordan: Dubai-based W Motors, a strategic partner of EV manufacturer NWTN Motors, will partner with Jordanian energy and mobility firm Manaseer Group to establish an EV factory in Jordan with a total investment of USD 80 mn.

#3- The Industry and Advanced Technology Ministry signed an MoU with Bahrain’s Industry and Commerce Ministry to cooperate on local production programs, leveraging the in-country value initiative aimed at bolstering the contribution of local industries and supporting local manufacturers.

Morocco’s in: The UAE welcomed Morocco’s decision to join the Integrated Industrial Partnership “given its leading industrial and economic status, and achievements across various sectors – particularly industry – which is vital to supporting investment opportunities,” Industry and Advanced Technology Minister Dr. Sultan bin Ahmed Al Jaber said.

Sound smart: Morocco has for more than a decade now been on an industrialization drive that has seen it emerge as a regional powerhouse in industries including car assembly, parts manufacturing, and aeronautics and is now home to global manufacturers giants including Renault and Boeing.

Dubai-Based warehousing startup Cargoz to expand in Saudi Arabia

Cargoz taps into fresh funding to set up shop in KSA: Logistics startup Cargoz is set to expand to Saudi Arabia in the first quarter of the year as it deploys recently raised seed funding, it said in a statement picked up by Wamda last week. The round was led by Nama Ventures with participation from RAZ Holding, Innovest Properties, and several unnamed regional family offices and angels in the industry. It did not specify how much it has raised.

Think AirBnb, but for logistics: Founded in 2022, Cargoz is a warehousing and logistics startup that connects SMEs that need flexible, on-demand warehouses to warehouse owners and operators who have empty or unused space.

Work in progress for months: In May 2023, Cargoz announced it had secured a bridge round aimed at accelerating expansion to the Kingdom, saying at the time it planned to launch in Saudi Arabia by 3Q 2023.

UAE X: So far so good in the Asian Cup

Yet another football-heavy day on UAE X: الامارات_هونج_كونج# and #كاس_اسيا2023 were the trending hashtags, after the Emirates’ 3-1 victory over Hong Kong in our first match of the Asian Cup, putting us top of Group C on goal difference.

Coffey’s Kirkoswald sets up in ADGM

Greg Coffey’s hedge fund arrival in Abu Dhabi got ink the foreign press:Australian hedge fund trader Greg Coffey has become the latest business magnate to set up shop in Abu Dhabi with the expansion of his asset management firm Kirkoswald in Abu Dhabi Global Market (ADGM), Bloomberg reports.

Abu Dhabi is getting a new medical city + ADIA invests in Indonesia’s infrastructure. PLUS: More energy, insurance, real estate and capital markets news

HEALTHCARE-

Abu Dhabi will build a medical city dedicated to women and children’s health, according to a statement from the Abu Dhabi Media Office. The facility will launch in 2027 and will include a new center of excellence — dubbed the Sheikh Khalifa Medical City (SKMC) center — for pediatric care, “the Corniche Hospital dedicated to women and newborns’ health, a rehabilitation facility, and a mental health center for women and children,” the statement read.

More about the medical city: The facility will be established by the Abu Dhabi Department of Health (DoH) in partnership with ADX-listed PureHealth, according to the health department. The Corniche Hospital will include 205 beds, while the center of excellence will have a capacity of 259 beds with a team of 200 doctors.

INFRASTRUCTURE-

#1- ADIA invests in Indonesia’s toll road investment platform: The Abu Dhabi Investment Authority (ADIA), the Dutch pension investor APG Asset Management (APG) and Indonesia’s sovereign wealth fund (INA) have invested in Indonesia’s Trans Java toll road platform, according to an ADIA press release, which did not specify the exact amount of investments ADIA made. INA has already acquired for the platform seed assets that it thinks will unlock some USD 2.75 bn worth of investment in Indonesia’s toll road networks.

Background: Back in 2021, a consortium that includes ADIA, the INA, Caisse de dépôt et placement du Québec (CDPQ), and APG inked an MoU to establish Indonesia’s first infrastructure investment platform some USD 3.75 bn in investment capacity, according to CDPQ’s press release.

#2- Data analytics firm Presight and Japan’s Hitachi Digital Services are working together on smart and cognitive city technologies, according to an ADX filing (pdf). Both parties will also explore solutions for urban planning, infrastructure, environmental and energy efficiency, along with the digitization and the integration of AI, the statement reads.

#3- Vice President Sheikh Mohammed bin Rashid Al Maktoum has approved a number of social housing projects for 2024, Wam reports. The projects include distributing 3.5k land plots in an area dubbed Latifa City and another called Al Yalayis 5 to Dubai citizens in February, and some AED 5.5 bn, 2.3k ready-to-move-in houses, in various locations across the emirate, including Al Khawaneej 2, Al Aweer, Wadi Al Amardi, and Hatta to citizens.

#4- Dubai establishes a center to address road flooding issues: Dubai’s Road and Transport Authority (RTA) opened a joint flood management room to manage road flooding caused by heavy rain, Wam reports. A designated team will use advanced technology to monitor traffic and response plans and deploy teams to mitigate and minimize the impact of flooding.

ENERGY-

Borouge inks AED 160 mn two-year agreement with Naffco: Petrochemicals firm and Adnoc-Borealis JV Borouge is set to provide fire protection systems manufacturer and supplier Naffco with sustainable polyethylene materials for its local and regional infrastructure projects under an AED 160 mn two-year agreement, a press release reads.

The projects: Supplies will go to Naffco’s projects in Guggenheim Museum, Riyadh City, Mohammad Bin Zayed City, Yas Island, Dubai Hills, Heart of Europe Island, and Etihad Water and Electricity.

REAL ESTATE-

#1- ADX-listed RAK Properties sold out the inaugural phase of its latest residential waterfront project, Quattro Del Mar in Ras Al Khaimah, according to a press release posted on Thursday.

#2- e& + Adres to boost Abu Dhabi’s digital real estate landscape: Telecom operator Etisalat by e& signed a partnership MoU with proptech solutions firm Advanced Real Estate Services (Adres) to enhance its real estate platform and its other digital products, Dari, Wam reports.

INS.-

Dubai-based Al Nabooda Ins. Brokers (ANIB) is set to expand its medical ins. portfolio to include more comprehensive coverage, customizable plans, digital health solutions and a wider network of healthcare providers, according to a press release.

JUSTICE-

Dubai Ruler Sheikh Maktoum bin Mohammed Al Maktoum approved the appointment of 10 new Emirati judges during a Dubai Judicial Council meeting, according to a statement. Sheikh Maktoum, who serves as the council’s chairman, also greenlit the enrolment of 20 Emirati citizens in a training session organized by the Dubai Judicial Institute. The 20 are on track to be named assistant prosecutors in Dubai’s Public Prosecutor’s office.

Re-ins. players scale back coverage in the region to hedge against conflict escalation

The ins. industry is adapting to a new and more volatile region: Global re-ins. firms have begun inserting get-out clauses into their policies to hedge against the potential of a full-scale Middle East conflict, writes the Financial Times, citing four industry insiders. Local insurers under the new contracts will lose their reinsurance coverage for any newly underwritten asset in the event of the clause being triggered.

Expect to claim less for more:To make matters worse for insurers, re-insurers are also upping prices and pressuring primary insurers in Lebanon, Jordan, and Israel to cap coverage — which in tandem with the get-out clauses make doing business in the region riskier and costlier than it previously was.

ALSO WORTH MENTIONING-

Citigroup to slash nearly 10% of its workforce: Citigroup will cut 20k jobs over the medium term in a bid to save up to USD 2.5 bn and boost the struggling US bank’s returns. (Earnings presentation, pdf)

ADX	9,791	-0.5% (YTD: +2.2%)
DFM	4,104	-0.3% (YTD: +1.1%)
Nasdaq Dubai UAE20	3,900	-0.3% (YTD: +1.5%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.0% o/n	5.1% 1 yr
TASI	12,060	-0.5% (YTD: +0.8%)
EGX30	25,974	+1.8% (YTD: +4.3%)
FTSE 100	7,625	+0.6% (YTD: -1.4%)
Euro Stoxx 50	4,480	+0.8% (YTD: -0.9%)
Brent crude	USD 78.29	+1.1%
Natural gas (Nymex)	USD 3.31	+7.0%
Gold	USD 2,051.60	+1.6%
BTC	USD 42,425.94	-1.3% (YTD: -0.4%)
FTSE 100	7,625	+0.6% (YTD: -1.4%)

THE CLOSING BELL-

The ADX fell 0.5% on Fridayon turnover of AED 1.1 bn. The index is up 2.32% YTD.

In the green: Gulf Pharma Industries (+12.1%), Chimera S&P Pakistan (+9.3%) and E7 Group (+7.5%).

In the red: Umm Al Quwain General Investment (-4.4%), Eshraq (-2.6%) and Easy Leace (-2.3%).

The DFMclosed down on Friday turnover of AED 249.87 mn. The index is up 1.1% YTD.

Asian markets sagged at the opening bell but have since recovered and are cautiously in the green as investors digest Taiwan’s election results on the first day of trading this week. European benchmarks look uniformly set to open in the green later this morning, while the Dow, S&P and Nasdaq are all flirting with the red.

CORPORATE ACTIONS-

Drive announces a 2-for-1 stock split: ADX-listed Emirates Driving Company (Drive) has received board approval to split the company’s shares, reducing the share’s nominal value from AED 1 to AED 0.50, according to a bourse filing (pdf). The split seeks to double the total number of issued shares from 89.8 mn to 179.5 mn.

The company also approved the capitalization of AED 448.9 mn worth of retained earnings,increasing its share capital to AED 538.7 mn (or 897.9 mn shares), according to the filing.

UAE wraps CEPA talks with Costa Rica + plans to cooperate with Kazakhstan on data centers and AI infrastructure

UAE, Kazakhstan partner on data center and AI projects: The Investment Ministryinked an agreement on Friday with Kazakhstan’s Ministry of Digital Development, Innovations, and Aerospace Industry and the Sovereign Wealth Fund Samruk-Kazyna for an investment cooperation framework for data center and AI projects in Kazakhstan, state news agency Wam reports.

The UAE has finalized talks for a comprehensive economic partnership agreement (CEPA) with Costa Rica, Arab News reports, citing a media statement. The CEPA is set to eliminate tariffs, reduce trade barriers and promote investment and private sector cooperation. The countries could cooperate further in fields including tourism, renewable energy, food security, ICT, and manufacturing, Arab News quotes Trade Minister Thani bin Ahmed Al Zeyoudi as saying.

OTHER DIPLOMACY NEWS-

President Sheikh Mohamed bin Zayed Al Nahyan discussed bilateral ties and combating terrorism during a phone call with Turkish President Recep Tayyip Erdogan. (Gulf News)
Abu Dhabi’s Zimbabwe Embassy opened a consulate in Dubai, in line with a new governmental directive, issued last Friday. The consulate began operations in Al Safa 2 on 2 January. (Statement)

Abu Dhabi AI player G42 pushes back on US allegations it’s cozy with China

G42 caught in crossfire of US-China trade war: IHC-backed tech and AI company G42 “categorically denied” in a statement last week that it has ties to the Chinese government. The company was responding to a New York Times report and a letter from a US congressional committee that claimed it was working with the Chinese military. The committee asked the US Commerce Department to consider levying trade restrictions on G42, the NYT quoted US lawmakers as saying.

G42’s response: “As an international commercial enterprise, G42 has established a worldwide network of partnerships over time, including some Chinese companies. Such engagements are standard practice among global technology companies,” the statement said. “In the field of advanced technologies, we have pursued a commercial strategy since 2022 to fully align with our US partners and not to engage with Chinese companies,” G42’s press release read.

Background: The US has been restricting trade with China in advanced fields including artificial intelligence, chipmaking and design, and quantum computing. Relations between the two are so touchy that it has taken a non-government intermediary to broker talks between US companies and Chinese experts to have secret talks on AI safety, the Financial Times reports.

CALENDAR

JANUARY

16-18 January (Tuesday-Thursday): iFX EXPO Dubai 2024, Dubai World Trade Centre.

19 January (Friday): The Abu Dhabi Extreme Championship 2 (ADXC 2), Mubadala Arena.

21-23 January (Sunday-Tuesday): World of Coffee Dubai, Dubai World Trade Centre.

23-25 January (Tuesday-Thursday): The Unmanned Systems Exhibition (UMEX) and the Simulation and Training Exhibition (SimTEX), Abu Dhabi National Exhibition Centre (ADNEC), Abu Dhabi.

26-28 January (Friday-Sunday): Dubai Challenge Cup, Al Maktoum Stadium, Dubai.

29 January- 1 February: Arab Health, Dubai World Trade Centre.

FEBRUARY

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

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

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

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

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

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

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

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

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

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

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

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

MARCH

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

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

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

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

APRIL

11 April (Thursday): End of Ramadan, public holiday.

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

16-18 April (Tuesday-Thursday): World Future Energy Summit, Abu Dhabi National Exhibition Centre.

16-18 April (Tuesday-Thursday): Middle East Coatings Show, Dubai World Trade Centre.

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

MAY

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

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

JUNE

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

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

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

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

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

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

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

JULY

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

SEPTEMBER

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

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

OCTOBER

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

NOVEMBER

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

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

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

DECEMBER

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

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

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