Lots of agreements with India. PLUS: Happy Valentine’s Day

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WHAT WE’RE TRACKING TODAY

THIS MORNING: It’s the last day of the World Governments Summit

Good morning, ladies and gentlemen, and welcome to a very packed Wednesday issue.It’s peak earnings season, but it’s also Valentine’s Day.

If you’re still thinking about date night options, might we suggest taking a skim through the latest list of MENA’s 50 Best Restaurants? Four of the five top-ranked restaurants in the list are in Dubai (which hosts 19 of the 50 best restaurants in the region), while Abu Dhabi is also home to three of the ranked restaurants.

THE BIG STORY here at home is the UAE signing several agreements with India at the World Governments Summit yesterday as Indian Prime Minister Narendra Modi is in town. The two countries signed an agreement to push forward with plans of setting up a trade corridor, as well as several other agreements. We have the full rundown in this morning’s news well, below.

It’s the third and last day of the World Governments Summit. Yesterday brought a packed AI-focused agenda, including panel discussions hosting Nobel Prize Laureate Serge Haroche and Microsoft’s Greg Wilson, among others, as well as a speech from OpenAI CEO Sam Altman (watch, runtime: 38:53). Yesterday’s speakers also included Turkish President Recep Tayyip Erdoğan (watch, runtime: 0:59), as well as President of Zimbabwe Emmerson Mnangagwa.

HIGHLIGHT REEL- Altman thinks the UAE could become the world’s AI “regulatory sandbox,” as the country has an ideal environment to create unified policies that can help address the challenges of getting “all the regulatory ideas right in a vacuum,” he told Minister of State for AI Omar Al Olama, Bloomberg reports.

AND- The Mohammed Bin Rashid School of Government (MBRSG) launched the latest Global Economic Diversification Index(pdf) at the summit. The latest EDI, which includes digital trade-specific indicators for the first time, evaluates and ranks 112 countries across 25 quantitative indicators, including economic activities, international trade patterns, and government revenue composition. The US, China, and Germany took the top three spots in the ranking, while the UAE came in at #70 with a score of 95.7.

What to expect on Day Three: Today’s agenda focuses on government services, reimagining development and future economies, public development and Arab public administration, industry and advanced technology, generative AI, geotechnology and policy, and government acceleration and transportation forum. You can find the full agenda here.

HAPPENING TODAY-

#1- UAE Innovates 2024 wraps its Ajman and Umm Al Quwain leg today, and will head to Sharjah, Ras Al Khaimah, and Fujairah tomorrow. The event’s last stop will be Dubai, running from 22-29 February, reports state news agency Wam..

#2- It’s the third and penultimate day of the Future Warehouse & Logistics 2024 Conference.On the agenda: How to boost resilience and overcome challenges, with discussions on disruptions, sustainability, internet of things, automation, workplace management, and other topics.

#3- The Ajman Department of Tourism Development UK roadshow continues,showcasing the emirate’s cultural offerings to reel in British tourists and investors in the tourism sector, according to a press release. The campaign stops in Glasgow, Birmingham, and London before wrapping tomorrow.

HAPPENING THIS WEEK

The FIFA Beach Soccer World Cup 2024will kick off tomorrow at Dubai International Stadium, before wrapping on Sunday, 25 February. The tournament will see 16 beach soccer teams, including the United Arab Emirates, battling it out for this year’s cup.

PUBLIC SERVICE ANNOUNCEMENT-

You can now request service for rain-damaged vehicles online: Car owners whose vehicles were damaged due to extreme weather conditions or natural disasters can now apply for a service certificate online, without having to bring their cars in for inspection, according to a statement. Owners must pay an AED 95 fee and attach a photo of their damaged cars before receiving the electronic certificate 1-2 business days later.

DATA POINT-

#1- Dubai’s healthcare ins. portal processed 143.3 mn transactions worth over AED 21.68 bn in 2023, according to a Dubai Health Authority statement. The portal processed 44.1 mn ins. claims over the course of the year, up from 3.67 mn claims the year prior. Some 4.5 mn people in Dubai are covered by healthcare ins., with access to over 12.2k plans from 71 ins. companies, according to the report.

#2-Only 3% of businesses in the Middle East are on track to reach their sustainability goals, despite 70% of businesses claiming to integrate sustainability in their business models, Bain & Company found in a survey conducted at the World Government Summit, according to state news agency Wam. “The gap between ambition and action occurs despite universal agreement on the case for change,” Bain Senior Partner Samer Bohsali said, adding that 90% of executives find the need for more sustainable operations.

#3- The Central Bank of the UAE’s (CBUAE) latest AED-denominated T-Sukuk auction was 6.9x oversubscribed, pooling AED 7.6 bn in bids, the Finance Ministry said. The three- and five-year tranches saw strong demand, with the T-Sukuk sold at 5 bps over US treasuries.

Background: The CBUAE launches regular AED-denominated Shariah-compliant sukuk auctions in a bid to strengthen the local currency’s yield curve in capital markets. You can find more on the program here.

WATCH THIS SPACE-

#1- The government is mulling the launch of treasury bonds for retail investors to “encourage the culture of saving and investment,” Finance Ministry Undersecretary Younis Haji Al Khoori told Sky News Arabia on the sidelines of the World Governments Summit. Plans to issue the retail t-bonds are currently being studied in coordination with the ADX and the DFM, with no date set for specific issuances.

#2- Barakah plant to go online next month: The fourth and final reactor of theBarakah nuclear power plant will begin operations in March 2024, the UAE’s Permanent Representative to the International Atomic Energy Agency Hamad Al Kaabi told Wam yesterday. Final trials are currently underway, Federal Authority for Nuclear Regulation Director General Christer Viktorsson said.

ICYMI- Barakah was completed in Decemberafter the Emirates Nuclear Energy Corporation’s operating and maintenance subsidiary, Nawah Energy Company, concluded loading fuel assemblies into the fourth reactor, bringing Barakah, the UAE’s first nuclear power plant, to the brink of operational capacity.

#3- What Al Zeyoudi wants to see at this month’s WTO meeting in Abu Dhabi: Foreign Trade Minister Thani bin Ahmed Al Zeyoudi is optimistic about the World Trade Organization’s (WTO) upcoming ministerial meeting, from 26-29 February in Abu Dhabi, he told The Financial Times. Although the rising tensions in the Red Sea due to Houthi attacks on cargo ships in Bab El Mandeb are an ongoing concern for global trade, it is unlikely to “overshadow” the meeting, with Al Zeyoudi describing it as another business challenge “we have to be more and more resilient [against].” He suggested the WTO use the conference as a chance to rebuild trust in its system and advance policy.

THE BIG STORY ABROAD-

It’s crickets out there this morning, friends. Two US-centric stories dominate the business and mainstream press alike on both sides of the Atlantic:

Nato: Joe Biden is blasting Donald Trump for “un-American” suggestions that it would be just fine if Putin were to invade Nato allies that don’t pay their dues. A Trump national security advisor is doubling down on the idea: Don’t hit your defense spending target and Nato won’t ride to the rescue if you’re invaded, he said. The exclusive is leading the front page of Reuters.
US politics: The House of Representatives has impeached a cabinet member for the first time since 1876 in what pundits are calling a partisan vote. Don’t expect the Senate to follow suit.

AND- Saudi, Emirati and Qatari sovereign funds may be in talks to join the African Development Bank after Turkey became the first non-continental equity holder in the institution in December, Semafor reports.

FINALLY- It’s election day in Indonesia, where some 100 mn people are expected to cast ballots. Former defense minister Prabowo Subianto looks set to become the next president of Southeast Asia’s largest economy.

UAE + India ink pact on trans-continental trade route

Major bilateral investments are in store for UAE, India: President Sheikh Mohamed bin Zayed Al Nahyan and Indian Prime Minister Narendra Modi signed several agreements yesterday to encourage investments and cooperation across energy, technology, and trade between the two countries, Wam reports.

The agreements have been a long time coming: While the value of the agreements was not disclosed, news of the government planning to invest USD 50 bn in India this year — its second-largest trading partner — was reported by Bloomberg back in November.

#1- The UAE and India will set up a multi-modal trade corridor linking Europe with India through the Middle East, Reuters reports. No further details about the agreement were made public. The corridor “would build on previous understandings and cooperation on this matter and foster India and the UAE cooperation furthering regional connectivity,” India’s External Affairs Ministry said in a statement.

Background: The corridor, which would connect India to Europe through the UAE, KSA, Jordan, and Israel, was initially announced on the sidelines of the G20 summit in September.

#2- The UAE will connect its instant payment platform AANI with India’s UPI to “facilitate seamless cross-border transactions between the two countries,” the statement read. The two states also agreed on connecting their domestic debit and credit cards to streamline the use of India’s RuPay across the Emirates.

#3- Other agreements signed include:

A bilateral investment treaty to serve as a “key enabler” for boosting bilateral investments;
Several MoUs to cooperate in energy and electricity interconnection, trade, and digital infrastructure; and
A cooperation protocol between the National Library and Archives of the UAE and the National Archives of India on archival and historical material restoration

ALSO- Mubadala has its eyes on India: India is an “interesting” market for innovation, with the world’s largest population and one of the most digitized economies and steady GDP growth, Mubadala CEO Khaldoon Al Mubarak said at the World Governments Summit (watch, runtime: 5:23). The country’s growth trajectory will be largely underpinned by infrastructure, Al Mubarak said, stressing that it’s important to “keep a close eye” on its growth story.

Healthtech firm TruDoc acquires Mumbai’s Wellthy Therapeutics

Dubai-based healthtech company TruDoc has acquired Indian digital therapeutics firm Wellthy Therapeutics for an undisclosed sum,according to a press release. TruDoc plans to integrate Wellthy Therapeutics’ chronic disease management solutions into its virtual healthcare services, offering a more well-rounded platform targeting some 10 mn patients, the statement said. TruDoc is a Dubai-based telehealth and virtual healthcare provider, specializing in telemonitoring acute and chronic care.

About Wellthy Therapeutics: Wellthy Therapeutics provides over 20k patients with personalized digital therapies for chronic disease management, according to the company’s website. It secured funding of an undisclosed amount from Japanese venture capital firm Beyond Next Ventures in June, expanding its platform to the Asian market.

Background: TruDoc was recently acquired by private equity fund Pulsar Capital, which purchased a controlling stake in TruDoc for an undisclosed sum last September. Pulsar Capital had first invested in a minority share in TruDoc in 2022.

UAE-based AMP Global Trading acquires 50% of Jordan’s Cement Experts Co. for Development and Investment

Emirati firm acquires 50% of Jordanian cement manufacturer:UAE-based AMP Global Trading has acquired a 50% stake in Jordan’s Cement Experts Co. for Development and Investment from Tadawul-listed Northern Region Cement Company signed for USD 55 mn, it said in a disclosure to Tadawul yesterday. The Saudi company offloaded its stake as it looks to pay off some of its debt and allocate the funds to other investments in “promising markets,” it said.

An Iraqi cement factory is part of the package: The transaction hands the UAE-based company a 51% stake owned by Cement Experts in a joint investment in a cement plant Al Kubaisa.

IN OTHER M&A NEWS-

Saudi energy, construction, and industry-focused player Algihaz Holding is restructuring its holding of Lamprell, the UAE-based offshore and onshore engineering, procurement, construction, and installation (EPCI) company, bringing its direct ownership to 90%, Aleqtisadiah reported yesterday.

Why it matters: Lamprell is part of the JV that is building the region’s biggest shipyard. The Aramco-sponsored joint venture is building International Maritime Industries (IMI) as the region’s largest full-service shipyard at Ras Al Khair on the coast of the Arabian Gulf. Lamprell holds a 20% stake alongside Aramco (40%), Bahri (20%), and Hyundai Heavy Industries (20%).

Lamprell is also active in the renewables business, providing wind turbine foundations, HVAC/HVDC offshore jackets, and multi-purpose vessels, according to the company’s website.

Regional footprint: Lamprell owns fabrication facilities in Hamriyah and Khalid Port in Sharjah, and Jebel Ali in Dubai, according to its website. The company is also operating in Iraq through its subsidiary Maritime Industrial Services.

The transaction: Algihaz has acquired the entire stake of its subsidiary Thunderball Investments, which held a 73% stake in Lamprell. Algihaz became the sole owner of Thunderball after acquiring the entire 60% stake of Blofeld Investment Management in October 2023. (You have to love the James Bond references there, folks.)

Titan earmarks AED 5 bn for lithium plant in Kezad

AED 5 bn lithium plant is coming to Kezad: Abu Dhabi’s Khalifa Economic Zone (Kezad) inked an agreement with Dubai-based manufacturer Titan Lithium to establish a lithium processing facility with a total investment of AED 5 bn in the Khalifa Industrial Area, according to a press release.

The plant is a step towards achieving sustainability: The establishment of the new facility comes as the UAE looks to become a hub for EVs under its Global EV Market initiative, as processed lithium is an essential component for the manufacturing of EV batteries. “The facility in KEZAD is not just an investment in the future of Abu Dhabi and Titan Lithium Industries, but a stride towards a sustainable and better future for the world. Lithium is the new oil, and through this project, we are positioning the UAE, and specifically Abu Dhabi, as a pivotal hub in the lithium processing domain,” Titan Lithium president Vaibhav Jain said.

About the plant: Under a 50-year land lease agreement, the 290k sqm factory will be built in three phases. With an annual production capacity of 150 tons, the factory will be dedicated to manufacturing “battery-grade lithium carbonate and lithium hydroxide for battery makers and electric vehicle OEMs,” according to the statement. The raw lithium will be imported from Titan’s mines in Zimbabwe.

Sharjah cabinet greenlights two real estate rentals draft legislations

Sharjah to get a new rental law: Sharjah Executive Council (SEC) gave preliminary approval for two draft bills to regulate real estate rentals in the emirate, state news agency Wam reports. The draft legislation will introduce rental regulations and streamline government procedures for rentals in the emirate, as well as establish a center for resolving rental disputes, the news agency added.

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

What’s next for the draft laws? The executive council will forward the bills to the Sharjah Consultative Council, where they will be reviewed before being submitted to the emirate’s ruler Sheikh Sultan bin Mohammed al-Qasimi to be ratified.

Fintech startup Kema closes USD 2 mn pre-seed round

Dubai-based fintech Kema has raised USD 2 mn in a pre-seed round led by Dubai Foundation District Fund and VC firm Speedinvest, according to a press release. The funding will help the fintech firm launch its Software-as-a-Service (SaaS) platform, expand its presence and services in the UAE, and hire new talent.

About Kema: Co-founded by Michael Ghandour, co-founder of mumzworld.com, Kema aims to accelerate SMEs’ cashflow by facilitating their financial operations using an automated invoicing system. Since its private beta launch in 2Q 2023, the fintech processed more than AED 16.5 mn in invoices, and now claims to be able to slash the duration of the account receivables process by up to 50%, according to co-founder and CTO Akash Rao.

Peak earnings season

Healthcare giant PureHealth’s net income fell 78% y-o-y to AED 965 mn in 2023 on the back of a decline in covid-related business, according to the company’s earnings release (pdf). Excluding covid business in 2022 earnings, normalized net income grew 9x in 2023.

The company’s revenues rose 31% y-o-y to AED 16.4 bn during the year, driven by growth in volume of non-covid-19 patients, higher ins. retention and premiums, and an uptick in procurement and supply chain activities.

ICYMI: PureHealth made its debut on the ADX, raising AED 3.62 bn in a heavily oversubscribed IPO in December 2023. The IPO proceeds will be used for “general corporate purposes,” the company said, and to support future expansion, potentially including acquisitions of hospital groups and healthcare assets in the Middle East, the Americas, Europe and the Far East.

EMIRATES STEEL ARKAN-

Emirates Steel Arkan reported AED 601.9 mn in 2023 net income,up 18% y-o-y on the back of increased domestic and foreign sales, according to the company’s earnings release (pdf). The steel and building materials manufacturer saw its revenues fall nearly 6% y-o-y to AED 8.9 bn despite “a challenging and volatile global economic landscape and its impact on commodity prices,” according to the company’s unaudited preliminary results (pdf).

The company saw its net income rise 69% y-o-y to AED 215 mn in 4Q 2023,while revenues increased 4% y-o-y to AED 2.4 bn during the quarter. The company attributes its growth during the period to higher volumes of rebar steel sales in the domestic market.

Looking ahead: The company plans to boost output and surpass production targets, while reducing costs, it said in the earnings release.

RAK PROPERTIES-

RAK Properties’ net income rose 555.5% to AED 201.8 mn in 2023, according to its earnings release (pdf). The real estate company’s revenues reached just over AED 1 bn, up 146.2% y-o-y, while sales increased 448% y-o-y to AED 2.8 bn.

Residential + hospitality projects both had a good year: The company experienced high demand for developments in Ras Al Khaimah and Abu Dhabi. Residential projects saw successful launches and sell-outs, along with positive reception for new projects. Hospitality projects such as the Intercontinental Ras Al Khaimah Mina Al Arab Resort and SPA also performed well in both occupancy and financial results.

DU-

du had a good year: Dubai-based telecoms operator Emirates Integrated Telecommunications, commonly known as du, reported a 36.8% y-o-y increase in its net income to AED 1.7 bn in 2023, according to an earnings release (pdf). The company’s revenues climbed 6.9% y-o-y to AED 13.6 bn, driven by demand for mobile services and growth in demand for its postpaid and fixed services.

For the year’s final quarter: The company’s 4Q bottom line increased 38.5% y-o-y to AED 396 mn, while its revenues rose by 7.3% y-o-y to AED 3.5 mn over the same period.

du’s board of directors is recommending dividends of 34 fils per share, up 41.7% from the previous year’s dividend payout.

ALPHA DHABI-

Alpha Dhabi reports record earnings: Investment holding company Alpha Dhabi saw its net income jump 25% y-o-y to a record AED 13.3 bn in 2023, according to the firm’s earnings release (pdf). Alpha Dhabi’s revenues stood at AED 45.5 bn, up 14% y-o-y during the year.

The company’s expanding portfolio drove the performance, with the firm’s holdings in the industrial sector contributing 37% of total revenues, the real estate sector contributing 23% and the construction sector contributing 19%.

Looking ahead: “As we advance into 2024, we are on a strong footing to enhance our core investment activities through strategic partnerships and acquisitions. Our joint ventures with ADNOC Drilling and Mubadala is a testament to this ambition, as we will deploy up to AED2.1 bn into oil field services and AED1.7 bn into global credit [ventures],” Alpha Dhabi CEO Hamad Al Ameri said.

WAHA CAPITAL-

Waha Capital posts 83% income growth: ADX-listed investment manager Waha Capital — the parent company of Waha Investments and Waha Land — saw its net income soar 83% y-o-y to AED 820 mn in 2023, according to the company’s earnings release (pdf). The company’s net revenues grew 70% y-o-y to AED 1.2 bn over the year.

In 4Q 2023, Waha Capital booked AED 218 mn in net income, up 39% y-o-y, while its revenues almost doubled to AED 543 mn, posting a 94% y-o-y growth.

OTHER EARNINGS NEWS-

#1-Sharjah-based Invest Bank widened its net losses by 77% y-o-y to AED 1 bn in 2023, due to impairment charges exceeding AED 1 bn, according to the company’s preliminary results (pdf). The ADX-listed bank’s revenue reached AED 238 mn, up from to AED 45 mn in 2022, mainly attributed to improved net interest income and reduced valuation losses on repossessed properties.

#2- Dubai Investments reported a 28.3% y-o-y drop in net income to AED 1.2 bn in 2023, on revenues of AED 4.2 bn (down 1.9% y-o-y), according to the company’s preliminary results (pdf). Excluding the one-off gain from selling its 50% share of DFM joint venture Emicool to global investment firm Actis in July 2022, would have made Dubai Investments’ 2023 bottom line “significantly higher” y-o-y.

#3-Abu Dhabi National Ins. Company (ADNIC)’s bottom line grew 12.2% y-o-y to AED 401.2 mn in 2023,owing to “strategic partnerships” and acquisitions, including that of Allianz Saudi Fransi Cooperative Ins. Company, according to the company’s consolidated financial statements (pdf). Total ins. revenues remained relatively flat in 2023 at AED 4.64 bn, compared to AED 4.66 bn in the previous year.

#4-Dubai Refreshment Company saw its net income grow 242.4% y-o-y to AED361.8 mn,“driven by a strong local business volume growth of 9%” and an AED 220 mn one-off gain from the sale of a manufacturing site, according to the company’s preliminary results (pdf). The company’s revenues increased nearly 7% y-o-y during the year to AED 803.1 mn.

#5-The National Marine Dredging Company saw its net income climb 65% y-o-y to AED 2.15 bn in 2023,according to the company’s financials (pdf). The company’s revenues from customer contracts increased 56.4% during the same period to AED 16.71 bn. The board proposed full-year dividend payouts of AED 618.8 mn for 2023.

#6- Dubai Islamic Ins. and Reins. (Aman) posted a net loss of AED 10.2 mn in 2023, compared with AED 1 mn in 2022 net income, according to its preliminary financials (pdf). Revenues increased 262% y-o-y to AED 235.5 mn.

#7-Emirates Reem Investments also recorded a net loss of AED 3.7 mn in 2023, compared with net income of AED 25.4 mn the year before, according to its preliminary results (pdf). Revenues grew 71% to AED 54.6 mn.

#8- Watania International Holding turned to the black in 2023,recording a bottom line ofAED 13.8 mn, compared with a loss of AED 53.1 mn in the previous year, according to the company’s earnings release (pdf). Watania’s Takaful revenues increased 12% y-o-y to AED 922 mn due to “significant improvements and corrective measures” taken, including strict underwriting discipline, the company said.

#9- Sharjah Cement and Industrial Development reported a net income of AED 1.1 mn in 2023, up from a net loss of AED 39.6 mn in the previous year, according to the company’s preliminary results (pdf). The turnaround is attributed to production cost reductions, lower energy costs and the use of alternative fuels, the company said. Revenues remained flat during the period at AED 634.5 mn.

#10- The National Corporation for Tourism and Hotels (NCTH)’s net income rose 6% y-o-y to AED 68.1 mn in 2023, according to the company’s earnings release (pdf). The company’s revenues fell 6.2% to 669.2 mn.

#11- Al Dhafra Ins. Company saw its bottom line fall 51% y-o-y in 2023 to AED 23 mn, according to the company’s preliminary results (pdf). The company’s revenues were down 3% y-o-y to AED 317 mn.

#12-Al Fujairah National Ins. Company narrowed its net losses to AED 8 mn in 2023, down from AED 20.9 mn in 2022, according to an ADX filing (pdf). The company’s ins. revenues climbed 22% y-o-y to AED 282 mn during the same period.

#13-Sharjah Ins. Company’s bottom line fell 52% y-o-y to AED 16.2 mn,and turned in AED 21.5 mn in ins. revenues, down 6% y-o-y in 2023, according to its preliminary earnings (pdf).

#14-Budget carrier Air Arabia saw its bottom line increase 27% y-o-y to AED 1.5bn in 2023on the back of robust operating capacity and an increase in routes, according to an earnings release. The airline’s topline rose 14% during the period to AED 6 bn.

#15- Emirates Investment Bank turned to the black with a bottom line of AED 107.5 mn in 2023, after posting nearly AED 24k in net losses in 2022, according to its preliminary financials (pdf). The investment bank’s revenues also rose 61% y-o-y to AED 220.6 mn.

Property Finder appoints new CTO and UAE country manager

Proptech platform Property Finder has appointed Himanshu Niranjani (LinkedIn) as its chief technology officer, and Vladimir Malugin (LinkedIn) as its country manager in the UAE, according to a press release. Niranjani replaces former CTO Gauthier Andries (LinkedIn), who served in the role since January 2023.

Dubai plans waste-to-sustainable aviation fuels project

GREEN ENERGY-

Dubai inks agreement to turn waste into fuel: Dubai Municipality has signed an agreement with Belgium’s Besix, Japan’s Marubeni Corporation subsidiary Marubeni Middle East and Africa Power, and the UAE’s turbine and aviation fuel supplier Enoc Marketing, to transform solid municipal waste into sustainable aviation fuel (SAF), Wam reports. Under the agreement, the municipality will provide solid waste — including organic waste and green hydrogen from sewage treatment — to SAF.

The timeline: The project, which is currently under study, is slated for implementation in July 2025, Dubai Municipality Director General Dawoud Al Hajri said.

The UAE has set an SAF target: The country wants to have SAF make up 1% of fuel for national airlines by 2031, according to Wam.

TECH-

Presight + Samruk-Kazyna JV to establish supercomputing and data hub in Kazakhstan: ADX-listed big data analytics outfit Presight and Kazakh sovereign wealth fund Samruk-Kazyna have inked an agreement with Kazakhstan’s Digital Development Ministry that will see the pair develop an AI supercomputer and data center cluster in Kazakhstan, according to a disclosure (pdf). The move represents the first project by the recently established Samruk-Kazyna and Presight joint venture. The statement did not disclose the value of the agreement or the project’s timeline.

The details: The project is set to unfold in two stages, with the first phase boosting computing capabilities at the Digitization Ministry’s standing facilities and the development of a Kazakh large-language model (LLM). The second phase will see the establishment of a data center and

supercomputer cluster that is powered by green energy, the statement said.

HEALTHCARE-

Abu Dhabi’s Reem Hospital has inaugurated a new mentalhealthcare facility, dubbed the Reem Neuroscience Centre, reports state news agency Wam. The hospital has the capacity to serve 6k patients a month, with 25 specialized treatment rooms, outpatient clinics, and an inpatient psychiatric department.

Abu Dhabi Health Information Exchange’s (Malaffi) image exchange platform is now a global reference site for Philips’ own image exchange solution,after Malaffi inked an agreement with Royal Philips, according to an Abu Dhabi Media Office statement. The platform allows medical facilities to swap radiology images and patient records.

Background: Abu Dhabi’s Department of Health (DoH) first launched Malaffi in 2022. The platform’s recent image extension is gridded to 64 of Malaffi’s Abu Dhabi-based healthcare facilities, with the entity planning to onboard all 67 by the end of 1Q 2024.

AGRICULTURE-

Abu Dhabi’s Masdar City launched a new indoor vertical farm in collaboration with Singaporean agritech firm Alesca Life, The National reports. The project plans to use automated monitoring systems and machine learning to grow 7.8k kg of leafy greens, lettuce and herbs annually inside two repurposed shipping containers. The farm will require 90-95% less water than conventional farms.

Markets aren’t happy after hotter-than-expected US inflation report

US markets fell yesterday and Asian shares have followed suit this morning as traders digest a hot US inflation report that some fear made it even less likely that the Federal Reserve will cut interest rates in March.

Why rates interest matters to the stock market: Lower rates traditionally = more money seeking (hopefully) better returns in public equities. Traders also generally figure that lower rates = better fortunes ahead for many types of companies on the back of more consumer spending and cheaper borrowing for corporates.

What happened yesterday: The Dow, S&P and Nasdaq all dropped 1.4-1.9% yesterday after data showed consumer prices in the US had risen in January by the most in eight months. Observers had expected inflation to continue cooling, but it ticked up to 3.1% on an annual basis.

Where we stand right now: The Nikkei and Kospi are down in early trading. US futures have steadied, pointing to a soft (but not outrageous) opening on Wall Street, and European equities look set to dip at the opening bell.

BTC hits the USD 50k mark for the first time in two years: BTC hit the USD 50k mark yesterday for the first time since December 2021, rallying on the back of expectations of interest rate cuts later this year and optimism that the US government’s approval of spot BTC exchange-traded funds last month could herald larger mainstream acceptance, Reuters reports. BTC was trading at around USD 49.7k as of midnight last night.

ADX	9,351	+0.3% (YTD: -2.4%)
DFM	4,219	+0.2% (YTD: +3.9%)
Nasdaq Dubai UAE20	3,744	+0.4% (YTD: -2.6%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.1% o/n	5.1% 1 yr
TASI	12,404	+0.9% (YTD: +3.7%)
EGX30	28,604	+0.4% (YTD: +14.9%)
S&P 500	4,953	-1.4% (YTD: +3.8%)
FTSE 100	7,512	-0.8% (YTD: -2.9%)
Euro Stoxx 50	4,689	-1.2% (YTD: +3.7%)
Brent crude	USD 82.77	+0.9%
Natural gas (Nymex)	USD 1.69	-4.5%
Gold	USD 2,006	-1.3%
BTC	USD 49,668	-0.8% (YTD: +17.0%)

THE CLOSING BELL-

The DFM rose 0.2% at yesterday’s close on turnover of AED 346.6 mn. The index is up 3.9% YTD.

In the green: National Industries Group Holding (+14.7%), International Financial Advisors (+10.0%) and Ekttitab Holding Company (+8.8%).

In the red: National International Holding Company (-9.5%), Emirates Reem Investments Company (-4.5%) and Takaful Emarat (-3.7%).

Over on the ADX, the index closed up 0.3% on turnover of AED 1.0 bn.

CORPORATE ACTIONS-

Phoenix Group has acquired “related” Netherlands-based entity Phoenix Technology Solutions for EUR 539k, according to a bourse disclosure (pdf). The acquisition, valued at EUR 539k, will boost the company’s presence in Europe by tapping Phoenix Technology Solution as a marketing platform for the region.

Agthia to dissolve inactive businesses: UAE-based F&B firm Agthia Group will dissolve a number of its dormant wholly-owned subsidiaries, including Gulf National Forage Company and Agthia Distribution, the company said in an ADX disclosure (pdf). The company will dissolve Shaklan Plastic Manufacturing after merging it with its other wholly-owned subsidiary, Al Bayan Purification and Potable Water.

UAE, Brazil, and Cuba to deliver AED 500 mn in food aid

UAE links up with future COP hosts to raise emission pledges: The UAE has agreed with upcoming COP hosts Brazil and Azerbaijan to form the COP Presidencies Troika, an initiative aimed at driving countries to make more ambitious climate pledges and moving COP28 achievements forward, according to a statement.

The details: The Troika will work on a “Roadmap to Mission 1.5°C,” a plan to significantly increase the goals and implementation of the nationally determined contributions (NDCs) of all countries under the Paris Agreement, until 2030. It will also focus on driving political action and directing resources towards climate finance, especially for developing countries.

ALSO- TheUAE, Brazil, and Cuba will distribute AED 500 mn in food aid from Brazil, after inking an agreement to enhance food security on the sidelines of COP28 last December, according to a Foreign Affairs Ministry statement. The UAE will invest in projects supporting the resilience and adaptability of food systems as part of the initiative.

President Sheikh Mohamed bin Zayed Al Nahyan met with several leaders yesterday:

Congo: The president discussed economic, investment, and development cooperation with Congo-Brazzaville President Denis Sassou Nguesso. (Wam)
Kurdistan: Cooperation and bilateral ties were the focus of a discussion with Kurdistan Region Prime Minister Masrour Barzani. (Wam)
Albania: Sheikh Mohamed also discussed bilateral relations and development with Albanian Prime Minister Edi Rama. (Wam)

OTHER DIPLOMACY NEWS-

UAE, World Bank renew payable advisory services: The Finance Ministry has renewed for the second time an agreement for payable advisory services with the World Bank’s International Bank for Reconstruction and Development that provides local and federal entities with technical support services. (Statement)

CALENDAR

FEBRUARY

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

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

7-18 February (Wednesday-Sunday): Sharjah Light Festival, Sharjah Police Headquarters.

8-14 February (Thursday-Wednesday): UAE Innovates 2024, Ajman and Umm Al Quwain.

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

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

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

13-15 February (Tuesday- Thursday): The UNESCO World Conference on Culture and Arts Education, Abu Dhabi National Exhibition Centre.

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

15-21 February (Thursday-Wednesday): UAE Innovates 2024, Sharjah, Ras Al Khaimah, and Fujairah.

16-18 February (Friday-Sunday): The Shams Creative Fest, Shams Business Center.

17 February (Saturday): UAE President Cup for Purebred Arabian Horses, Abu Dhabi Equestrian Club.

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

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

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

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

22-29 February (Thursday-Thursday): UAE Innovates 2024, Dubai.

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

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

23 February-3 March (Friday-Sunday): Sikka Art and Design Festival, Dubai

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

25 February-2 March (Sunday-Saturday): Abu Dhabi Desert Challenge 2024, Al Dhafra Region.

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

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

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

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

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

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

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

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

MARCH

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

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

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

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

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

8-9 March (Friday-Saturday): World Triathlon Championship Series 2024 Opening Race, Yas Marina Circuit on Yas Island.

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

APRIL

TBC April: DRIFTx, Abu Dhabi.

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

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

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

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

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

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

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

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

MAY

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

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

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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