LuLu Group to tap ADX and Tadawul in November?

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Adia consortium will not be acquiring DB Schenker + Alterra caps returns to lure more climate finance funds

Good morning, lovely people. It’s another busy day in the news, with updates on LuLu Group’s blockbuster IPO, Abu Dhabi’s Manchester City going on trial, and a new ETF courtesy of Lunate.

But before we get started, we’re a week away from this year’s EnterpriseAM Finance Forum, taking place on Tuesday, 24 September.

Headlining the EnterpriseAM Finance Forum: We’ll be joined for the first time on stage by a senior government official, who’s joining us to outline a vision for where we’re going as a community and as an economy. The keynote interview will get underway at 9am sharp, and you won’t want to miss our exclusive networking breakfast from 8am.

Among the topics on the agenda, which you can view here:

Welcome to the hot seat — top industry CEOs set the tone by addressing the biggest (and toughest) questions of the day.
Looking from the outside in — what foreign investors and strategics think about Egypt right now.
The only asset class in town — It’s real estate or nothing. We’ll get into the ins and outs of the industry, how it’s financing itself, which areas (and price points) are next, and more.
Gazing into that crystal ball — The outlook for dealflow in 2025, from M&A and IPOs to securitization, FX and more.
A once in a generation opportunity? — A deep dive into the promise and pitfalls of the emerging energy economy.
Do we really love banking SMEs? — With NBFIs and fintech players staking their claims, banks are starting to take the SME market seriously.
The NBFI panel — The resilience of the Egyptian consumer is the business story of the decade. How are banks and NBFS players building sustainable businesses? What are the opportunities — and credit worries — in the B2B space?

Haven’t requested an invitation yet? Do it today — space is limited. Tap or click hereto let us know you’re interested.

** IMPORTANT NOTE — If you’ve already received your invitation on email, you *must* click through to confirm you’re attending.

UPDATE- Adia out of the race for DB Schenker: The Abu Dhabi Investment Authority (Adia)-backed consortium, which also includes CVC and Singapore’s GIC, is out of the DB Schenker’s acquisition race now that Danish logistics giant DSV sealed an agreement to take over the Deutsche Bahn’s logistics unit.

REMEMBER- The consortium submitted two separate bids for DB Schenker last month, one valuing it at EUR 14 bn, and another worth EUR 16 bn that would see the German government reinvest with a minority stake.

DSV finalized an agreement to acquire DB Schenker for EUR 14.3 bn in an all-cash transaction, with the acquisition set to make the company the world’s largest freight-forwarder, doubling DSV’s revenues to EUR 39 bn and increasing its workforce to 147k employees, according to a statement.

What we know: DSV intends to finance the acquisition through debt and by selling a share of up to EUR 5 bn, the Financial Times writes. The agreement, contingent on regulatory approvals, is expected to close in 2Q 2025. Deutsche Bahn’s supervisory board and Germany’s Transport Ministry are expected to approve the agreement in the coming weeks.

WATCH THIS SPACE-

#1- The USD 30 bn climate fund Alterra is capping its own returns on high-risk investments in a bid to attract global capital, CEO Majid Al Suwaidi told Semafor in an interview. “We have different arrangements, some with strict caps on return and others based on a ‘first in, capped out’ model which is totally new.” The strategy is designed to make riskier investments more appealing, enticing global fund managers to invest in green projects.

What we know: It’s unclear where the fund would cap its returns, but the strategy has been proving fruitful in terms of attracting asset managers who normally are not active in climate finance, Al Suwaidi said, saying it’s in talks with a few.

About the fund: The USD 30 bn vehicle was launched last year during Cop28 to increase climate funding for the Global South, with an initial USD 1 bn investment from the UAE. Alterra recently said it will direct an extra USD 200 bn to investments over the next six years, after saying it aims to mobilize USD 250 bn in green investments by 2030.

ALSO- The fund is considering direct and co-investments, with agreements expected to be announced soon, Al Suwaidi said.

IN OTHER CLIMATE FINANCE NEWS- The Dubai Financial Services Authority and Hong Kong Monetary Authority signed an MoU at their inaugural climate finance conference in Hong Kong yesterday to expedite sustainable finance and facilitate collaboration on transition finance, Wam reports. Both authorities will boost cross-border dialogue, share trends, and collaborate on research and events to advance the sector.

DATA POINT-

#1- Rentals in Dubai and Abu Dhabi were more profitable in 2Q: The annual rental yield here at home rose to 5.27% in 2Q 2024, up 0.11 percentage points from the previous quarter, according to data picked up by Al Khaleej.

The yield reached 6.05% in Dubai, with studio apartments seeing the highest yields, ranging from 6.15% to 9.21%. One-bedroom apartments followed closely with ROIs between 5.03% to 7.31%, followed by two-, three-, and four-bedroom apartments.

In neighboring Abu Dhabi, the average annual rental yield stood at a slightly lower 5.95%, led by returns from four-bedroom apartments in Al Raha Beach, which saw a yield of 6.25%.

Higher yields came on the back of higher leasing activity and rising prices, with rental transactions increasing 38.4% y-o-y to approximately 41.5k in Dubai during the quarter. Average rental prices for apartments grew 8% y-o-y in Dubai and 2% y-o-y in Abu Dhabi in 2Q, with some areas in Abu Dhabi logging annual growth of up to 10% y-o-y.

HAPPENING TODAY-

#1- The Arab Water Forum kicked off yesterday and will continue until tomorrow at Adnec Center in Abu Dhabi. The event will feature over 60 exhibitors from 24 countries, along with roundtables and speaker sessions, gathering water sector leaders to discuss solutions for clean water and sanitation, with an emphasis on innovation and improving water security.

#2- The World Utilities Congress kicked off yesterday and will run until tomorrow in Abu Dhabi. The event will gather global energy leaders, policymakers, and other industry professionals from the power and water utilities value chain to discuss industry trends and challenges.

#3- The Intelligent Transport Systems World Congress 2024 kicked off yesterday and will run until Friday, 20 September in Dubai. The Congress is expected to welcome 20k participants to explore innovations in smart mobility and transportation technology.

#4- The AI in Oil and Gas Midle East conference will kick off in Abu Dhabi today and Wednesday, with a focus on AI in exploration and production, supply chains, data analytics, and more. The event will feature speakers and AI experts from across the region’s oil firms.

#5- The Inaugural Hili Forum kicked off yesterday and will wrap up today at The St. Regis Saadiyat Island Resort, Wam reports. The two-day event brings together global experts to address challenges in geopolitics, geoeconomics, and geotech. The forum aims to explore strategic solutions, present research, and offer policy recommendations.

HAPPENING THIS WEEK-

#1- The Sharjah Investment Forum will kick off on Wednesday and run until Thursday at the Jawaher Reception and Convention Centre in Sharjah. Discussions will span across investments in emerging markets and in the UAE, smart cities and economies, and more.

#2- Forbes’ Healthcare Leaders Summit 2024 will take place on Thursday and Friday at the St. Regis Saadiyat Island Resort, Abu Dhabi. The event gathers healthcare leaders from across the region to discuss innovation in healthcare and sustainability in the industry.

#3- The Central Bank of the UAE (CBUAE) will offer up to AED 11 mn in four m-bills at an auction tomorrow, according to a CBUAE announcement (pdf). Three of the m-bills are tap issuances — allowing the bank to more finely control money supply by selling bills past the initial auction date — with tenors ranging between 28 and 280 days.

Decoding central bank speak: M-bills are short-term securities issued in AED by the CBUAE at no interest. The bonds typically have maturity dates of one to 12 months and are not retrievable through any other listing.

THE BIG STORY ABROAD-

Away from the wall-to-wall coverage trying to figure out who the man accused of trying to assassinate Trump is and what drove him, the business papers and corners of the int’l press are gearing up for the US Federal Reserve’s two-day policy meeting, set to begin today.

Naturally, all eyes are on Wall Street in the run up to the Fed’s decision, with the S&P 500 closing essentially flat yesterday while the Nasdaq fell slightly. The S&P’s tech index saw the steepest declines among the S&P’s 11 major sectors yesterday, with some commentators chalking up the drop to investors’ desire to generate quick returns selling high-value tech stocks ahead of the Fed’s rate-cut decision.

Analysts remain torn between the arguments for a 25 bps cut and a more aggressive 50 bps cut amid persistent inflation and a cooling job market. Market expectations tilted toward a larger cut over the weekend, buoyed by signals from former Fed officials — meaning the central bank has the opportunity to take bold action without spooking investors.

WHILE IN BIG ENERGY NEWS- BP is now taking offers for its USD 2 bn bp Wind Energy, its onshore wind business in the US, as the energy giant seeks to offload underperforming assets and focus on its upcoming solar project Lightsource bp.

AND OVER IN AVIATION NEWS- Over 30k Boeing workers are on strike for the first time since 2008 after rejecting the terms of the company’s proposed contract, in a move that could cost the company over USD 100 mn in daily revenue, Reuters reports. A prolonged strike may also mean a credit rating downgrade, the “big three” credit ratings agencies have warned, making accessing financing even more expensive for the already indebted airplane manufacturer.

PLUS- Amazon has informed its staff that all employees will be expected to work from the office five days a week beginning next year — one of the starkest reversals of pandemic-era remote work policies seen in the corporate world thus far. In an internal memo, CEO Andy Jassy justified the move by saying that “We’ve observed that it’s easier for our teammates to learn, model, practice, and strengthen our culture” in a work environment more similar to the one that existed pre-Covid.

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PUBLIC SERVICE ANNOUNCEMENTS-

The ADX commenced its insider trading ban yesterday, which will remain in effect until listed companies fully disclose their 3Q financial results, according to a circular (pdf). During this period, chairpersons, board members and employees with access to insider information are prohibited from trading in their companies’ shares as of 15 days prior to the end of the quarterly financial period, and until the financial statements are made public.

CIRCLE YOUR CALENDAR-

Gulfood Green takes place 24-26 September at the Dubai World Trade Centre. The event connects startups and investors in the FoodTech and AgriTech sectors, exploring new methods of food production, trade, and consumption. You can register here.

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

Lulu Group to tap ADX in November, with plans for dual listing on Tadawul -report

Lulu Group gears up for ADX and Tadawul dual listing -report: Supermarket chain LuLu Group is planning to list its shares on the ADX and Riyadh’s Tadawul by the last week of October or early November, Zawya reports, citing people familiar with the matter. The offering “will be four to five times bigger than another retail IPO the UAE saw earlier this year,” the sources said.

The IPO is expected to raise between USD 1.5-1.85 bn, the sources said, potentially making it the biggest IPO of the year. This places it north of Spinneys, which raised AED 1.38 bn on the DFM in May; NMDC Energy’s AED 3.22 bn IPO earlier this month; and edtech firm Alef Education’s AED 1.89 bn IPO.

We knew this was coming: Earlier in March, LuLu Group reportedly tapped advisors to work on its planned initial public offering on the ADX this year. The offering was said to potentially raise as much as USD 2 bn. Bloomberg reported in February that the IPO was expected to happen in 2H 2024, with the company considering a potential dual-listing on the ADX and Riyadh’s Tadawul.

There’s more in the ADX pipeline:

Abu Dhabi National Hotels tapped Citigroup and First Abu Dhabi Bank to work on a planned IPO for its catering business ADNH Catering;
Alpha Data could tap the bourse this year;
Etihad Airways has tapped advisors for what could be the Gulf’s first airline IPO next year.

ADVISORS- Emirates NBD Capital, HSBC Holdings, Abu Dhabi Commercial Bank, and Citigroup are acting as joint bookrunners for Lulu’s IPO. Moelis & Company is an independent financial advisor for the IPO.

Lunate launches German ETF on ADX

Abu Dhabi’s Lunate Capital is introducing a new ETF tracking German sukuk, next week, according to a statement (pdf). The Chimera S&P Germany UCITS ETF, set to list on the ADX on 26 September, will track the S&P Germany BMI Liquid 35/20 Capped Index and feature top German companies like Siemens, Allianz, Bayer, and Mercedes-Benz. The index is up 13.5% YTD.

The initial offering period for the ETF kicked off yesterday and wraps on 20 September. The offering price was set at AED 3.71 during the initial offering period. Investors can subscribe through the authorized participants: International Securities, EFG Hermes, Arqaam Securities, and BHM Capital.

This is the fifth ETF Lunate launches this year, and the fifteenth to be listed on the Abu Dhabi bourse, according to a press release. Lunate and JP Morgan Chase launched the UAE’s first bond ETF in March covering investment-grade bonds worth USD 500 mn or more. The firm also launched its Indian ETF earlier this year on the ADX, tracking the performance of Shariah-compliant Indian stocks. In May, Lunate rolled out its Japanese ETF, tracking the S&P Japan BMI Liquid 35/20 Capped Index, and introduced its global sukuk ETF with JP Morgan in June.

It’s a good time for a German ETF: German stocks have been hitting record highs, defying concerns over Germany’s economy, which shrank in 2Q, on the back of geopolitical tensions and reduced demand from China, a key trading partner, Bloomberg reports.

ADVISORS- BNY Mellon (Ireland) has been appointed as the administrator, registrar, and distribution agent.

Manchester City sits trial for 115 charges of financial misconduct

Manchester City’s financial probe begins: The independent hearing into Abu Dhabi-owned Manchester City’s alleged 115 breaches of Premier League financial rules kicked off yesterday, according to Reuters. Dubbed the “sports trial of the century” by British media, a three-member commission will review extensive evidence over the next 10 weeks, with a decision anticipated before the season concludes next May. Appeals from either side could potentially push the process into summer 2025.

Background: The club, owned by Sheikh Mansour’s Abu Dhabi United Group, was referred to the commission in February 2023, with the legal process now stretching over 18 months. The charges cover a period from 2009 to 2018, following the Abu Dhabi group’s acquisition of the club in 2008 for a sum valuing the club’s equity and debt at EUR 200 mn (USD 360 mn). The group acquired the club from former Thai Prime Minister Thaksin Shinawatra.

City’s been in hot water before: In 2020, the football club was banned from the Champions League for overstating sponsorship revenue but successfully appealed the case.

The charges include, according to the New York Times :

54 charges of failing to provide accurate financial information;
14 charges of failing to disclose full details of player and manager payments;
Seven charges of breaching net income and sustainability rules;
Five charges of failing to comply with UEFA’s FFP regulations;
35 charges of failing to cooperate with Premier League investigations.

A guilty verdict may see City face potential penalties, fines, or even demotion from the Premier League.

City has raised its own case against the Premier League, challenging its rules on associated party transactions in a separate legal case in June. The club argued that they suffered “discrimination” under the new rules, alleging they amounted to a “tyranny of the majority.” A verdict is expected in the coming weeks, and a favorable outcome could bolster their defense in the Premier League’s ongoing case against them.

Adia, ESR offload stake in Australian logistics JV

ESR, Adia offload USD 2.2 bn logistics stake: ESR Group and the Abu Dhabi Investment Authority are selling a stake in their USD 2.2 bn Australian logistics portfolio to a Japanese-managed vehicle and a Malaysian fund in what would be the largest logistics transaction in Australia this year, according to a statement by Hankyu Hanshin Properties, which manages the Japanese JV.

The buyers will pay some AUD 536 mn for the stake, Mingtiandi reports, without disclosing the exact size of the stake.

The details: Hankyu Hanshin Properties and an unnamed Malaysian fund will acquire a portion of the 11-property portfolio, which spans major Australian cities including Sydney, Melbourne, Brisbane, and Perth.

Background: Adia and Aussie industrial developer Logos had set up a JV — named LALV —- which came under ESR management in early 2022 following the group’s USD 5.2 bn takeover of Singapore-based ARA Asset Management, which had acquired a majority stake in Logos in 2020. Adia invested additional funds in LALV in 2022, which was then valued at AUD 3.7 bn.

OTHER M&A NEWS-

Indian visa service provider BLS International signed an agreement to acquire Dubai-based visa advisory firm Citizenship Invest (CI) for USD 31 mn, CNBC TV18 reports. The acquisition, funded through internal accruals, is set to be completed by 31 October, pending regulatory approvals.

The acquisition will drive CI’s expansion, as the company plans to use BLS’ global presence across 66 countries for its expansion plans, including opening new offices and recruiting, according to a press release. The company is planning on multiplying their sales “exponentialliy” in the next three years, CI’s CEO, Inigo de Luna said.

Who are BLS and CI? BLS International holds an exclusive visa processing contract with Spain and has partnerships with 45 other governments, including Canada, Germany, Italy, and Hungary. CI, on the other hand, specialized in expedited investor programs for acquiring residency and citizenship in over 15 countries.

ADVISORS- Awad Capital acted as the exclusive financial advisor to CI for the transaction, while BLS International received legal counsel from Al Tamimi and Company.

National Bank of Fujairah issues USD 275 mn AT1 bonds

The National Bank of Fujairah (NBF) raised USD 275 mn in a mandatory convertible bond (MCBs) issuance, according to a press release (pdf). The bank issued the additional tier 1 (AT1) bonds in a bid to enhance its capital structure, support its business and operational strategy, and refinance existing AT1 USD 350 mn bonds.

Details: Privately placed with the Fujairah government, the issuance will see the bonds automatically converted into ordinary shares at a rate of AED 2.85 per share within two years.

Uh, Enterprise, what are AT1 bonds? They’re a common way banks raise core tier-one capital without diluting shareholders by raising equity. Additional tier one certificates (or just “AT1 certificates”) are a form of subordinated debt — they rank behind other types of bank debt in case of liquidation. That makes them riskier than senior debt, but still prioritizes them above equity holders. AT1 certificates are “perpetual” in that they have no fixed maturity date. They pay interest in much the same way as a bond does, but usually can be converted into equity in some circumstances — that’s why they’re often called CoCos in the industry, for “contingent convertibles.”

What they said: “This AT1 capital issuance will further reinforce NBF’s position and will provide

the solid foundation to grow and meet with any unforeseen challenges that may arise from

the evolving global economy and operating environment,” NBF’s deputy chairperson Raja Easa Al Gurg said.

Seez bags USD 4.2 mn to expand in the US

Dubai-based automotive software solutions firm Seez secured USD 4.2 mn in investments, according to a press release, which did not disclose the names of the investors. The funds will be used to expand Seez’s presence in the US.

More on Seez: The startup was founded in 2015 by Tarek Kabrit (LinkedIn) and Andrew Kabrit (LinkedIn) and currently operates in the UK, Australia, Denmark, South Africa, New Zealand, Mexico, and GCC countries. The tech firm offers car dealerships AI products, including a chatbot, and e-commerce and omni-channel solutions.

OTHER STARTUP NEWS-

Capstone secures AED 20 mn to develop blockchain platform: UAE-based blockchain startup Capstone Technology raised AED 20 mn in its first funding round, according to a press release. The funding will be used to develop the company’s Gaya blockchain project, which targets supporting entrepreneurs working in the entertainment, gaming, and AI industries.

Depa appoints CFO Nader Mardini as interim CEO after Haitham Tuqan's passing + The Gender Balance Council gets secretary-general

Depa named its CFO Nader Mardini (LinkedIn) as interim group CEO following the unexpected passing of CEO Haitham Tuqan on 15 September, according to a Nasdaq disclosure. Mardini will serve in the role until further notice.

A cabinet decision named Mouza Mohammed Al Suwaidi secretary-general of the UAE Gender Balance Council, according to the Dubai Media Office. Al Suwaidi has over 20 years of experience in the public and private sectors.

Healthcare investments and new hedge fund get ink

It’s all about investment in the foreign press this morning, with Bloomberg looking at the UAE’s increasing interest in longevity and healthcare tech in its latest edition of Mideast Money — including investments in AI to boost longevity — and CNBC (watch, runtime: 3:03) interviewing Britney Lam, head of long-short equities at Magellan Capital Holdings, about its upcoming USD 700 mn hedge fund in the UAE.

ALSO GETTING ATTENTION- Saudi footballer Fahad Al Muwallad was hospitalized in intensive care after falling from a second-floor balcony while on vacation in Dubai, Sky News reports.

AND- CNN is out with a feature on US national Taylor Dees, who moved to the UAE in 2017 and has now become a camel racer.

Bybit secures provisional approval for a VASP license

CRYPTO-

Bybit inches closer to getting a full operational license in Dubai: Bybit, the world's second-largest cryptocurrency exchange by trading volume, secured provisional approval for a Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority, according to a statement (pdf). The non-operational approval allows Bybit to serve retail and institutional investors.

Background: Bybit established its global headquarters in Dubai in 2022.

BANKING-

#1- Emirates NBD’s customers will now be able to trade in local equity markets on their banking app, ENBD X, through a new digital wealth management platform, according to Dubai's Media Office. The platform gives customers access to over 11k global equities and 150 regional equities.

#2- The Central Bank of the UAE (CBUAE) slapped an undisclosed bank operating in the Emirates with a AED 5 mn fine for failing to abide by laws on anti-money laundering and combating the financing of terrorism, according to a circular from the central bank. The CBUAE ordered the lender to inform the board of its offshore headquarters with the action.

REAL ESTATE-

#1- VTP Realty launches its first int’l sales office in Dubai: Indian real estate developer VTP Realty launched its first offshore sales office in Dubai targeting Indian expats in the GCC region who want to buy homes in Pune, where it is headquartered, according to a press release. The company will provide online registration services for properties, allowing them to register them remotely.

#2- Dutco Construction was awarded an AED 850 mn contract to build Meraas’ newest residential tower on Jumeirah Bay Island, Wam reports. The 27-storey Bvlgari Lighthouse is scheduled to be completed by 2Q 2027. It features four- and five-bedroom luxury penthouses, in addition to an eight-bedroom villa at the top three levels.

INS.-

Al Fujairah National Ins. launched the region’s first car ins. offering against natural catastrophes FloodGuard, the region’s first car insurance against natural catastrophes like floods and storms, Wam reports. The coverage limits range between AED 25k and AED 50k for a one year period, covering vehicles used exclusively for personal purposes, including those over seven years old that may not qualify for comprehensive ins.

LOGISTICS-

#1- Etihad Rail Freight inked a haulage services agreement with local construction firm Trojan General Contracting to boost delivery operations to key industrial hubs in the UAE, according to a statement.

What we know: Under the agreement, Etihad Rail will provide first and last-mile delivery services to Trojan’s quarries in Ras Al Khaimah (RAK) and Fujairah, and use its existing network to transport aggregates via its Al Ghail Dry Port rail terminal to the Abu Dhabi Industrial City and Dubai Industrial City. The freight forwarder will also provide secure storage facilities for Trojan’s goods at its Al Ghail Dry Port terminal in RAK and subsequent delivery terminals in the UAE.

#2- Aramex taps Smartt AI’s e-commerce solutions to boost UAE operations: Dubai-based Smartt AI will use its AI-driven end-to-end e-commerce solutions to boost the operational efficiency of Aramex’s fulfillment and last-mile delivery services in the UAE under a new partnership, according to a statement. Plans to expand the partnership to Saudi Arabia are also in the cards.

What we know: The pair will integrate a unified dashboard system to boost last-mile delivery tracking and oversight capabilities. The two parties will also adopt Application Programming Interfaces (APIs) to streamline bilateral communication and operations.

TOURISM-

Emaar Hospitality Group signed an MoU with Dubai's Department of Economy and Tourism to boost Dubai’s tourism sector via marketing campaigns, tourism products, and training programs, Wam reports.

HOSPITALITY-

Kuwait’s IFA Hotels and Resorts signed a contract worth AED 279.5 mn with UK-based Innovo Build Group for the construction of the Dorchester Collection’s Orla Infinity project in Palm Jumeirah, Dubai, according to a DFM disclosure (pdf). The financial impact of the project has not yet been determined.

INDUSTRY-

The UAE secures a seat on the ISO board: The UAE became a member of the International Organization for Standardization (ISO) board, after securing 86 votes during the organization’s recent annual meetings in Colombia, Wam reports. The UAE’s membership tenure will last between 2025 and 2027.

BUSINESS-

LEK Consulting launches a regional office in Abu Dhabi: Global strategy consulting firm LEK Consulting opened its first regional offices for the GCC region, one in Abu Dhabi and another in Riyadh, according to a statement (pdf).

Islamic bond market may see shift from asset-based to equity-like sukuk

Sukuk shake-up in the works? The normally steady Islamic bond market may be gearing up for a major overhaul as the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) reviews a proposal that could shift sukuk from asset-based debt instruments to equity-like, asset-backed ones, IFR reports.

Background: First proposed in November 2023, the draft for Sharia Standard 62 has been in the feedback stage, with the deadline extended twice — most recently to 31 July. There has been no update yet on a third extension.

What’s the difference? Currently, the structure of sukuk differs from bonds as they rely on an underlying asset, commonly real estate, to generate returns. The new standard, on the other hand, would give sukuk holders asset ownership, exposing them to risks like defaults. Investors would need to assess “the credit risk of the asset, rather than the credit risk of the obligor,” said Bashar Al Natoor, global head of Islamic finance at Fitch Ratings.

Issuers would also bear more risk: Issuers could face added costs from asset transfers and legal documentation, in addition to the fact that they tend to prefer retaining full control over their assets, according to a Baker McKenzie report. This shift could fragment the market or delay new sukuk issuances until a more balanced structure emerges, S&P said in a report.

Some markets could push back: AAOIFI’s standards are mandatory in countries like the UAE, Qatar, and Bahrain, but some markets might resist. UAE banks, with one of the largest sukuk markets globally, could reject the standard if it restricts liquidity access, IFR notes. This could also mean that the AAOFI’s guidelines could begin to be sidelined, with parallel markets emerging and the AAOFI potentially becoming obsolete, Mehdi Popotte, fixed-income portfolio manager at Arqaam Capital said.

GCC sukuk are having a moment: This comes as GCC sukuk are seeing their longest winning streak since early 2021, with 11 consecutive weeks of gains, according to Bloomberg’s GCC sukuk gauge. With expectations of a US Fed rate cut, investors are flocking to GCC bonds and sukuk, which have outperformed global bonds this year, the business information service reports.

MARKETS THIS MORNING-

It’s another mixed morning for Asia-Pacific markets — tracking similar movements over on Wall Street as investors prepare for the Federal Reserve to make a rate cut decision in its meeting today and tomorrow. Japan’s Nikkei is down 0.4%, while the Topix is down 0.3%. Meanwhile, markets in South Korea, mainland China, and Taiwan are closed for the mid-Autumn festival.

Wall Street futures were again flat, with the Nasdaq adding less than 0.1% and S&P 500 futures hovering near the flatline.

ADX	9,389	+0.4% (YTD: -2.0%)
DFM	4,395	+0.3% (YTD: +8.3%)
Nasdaq Dubai UAE20	3,801	+0.2% (YTD: -1.1%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.3% o/n	4.2% 1 yr
Tadawul	11,867	-0.3% (YTD: -0.8)
EGX30	30,260	-0.8% (YTD: +21.6%)
S&P 500	5,633	+0.1% (YTD: +18.1%)
FTSE 100	8,278	+0.1% (YTD: +7.1%)
Euro Stoxx 50	4,828	-0.3% (YTD: +6.8%)
Brent crude	USD 72.94	+1.9%
Natural gas (Nymex)	USD 2.37	+3.0%
Gold	USD 2,608.90	-0.1%
BTC	USD 57,855.20	-3.0% (YTD: +36.5%)

THE CLOSING BELL-

The ADX rose 0.4% yesterday on turnover of AED 1.1 bn. The index is down 2.0% YTD.

In the green: Hayah Ins. (+15%), Apex Investment (+10.6%) and Ghitha Holding (+3.7%).

In the red: Aram Group (-9.8%), Foodco National Foodstuff (-9.3%) and Palms Sports (-7.1%).

Over on the DFM, the index rose 0.3% on turnover of AED 330.3 mn. Meanwhile Nasdaq Dubai closed up 0.2%.

CORPORATE ACTIONS-

#1- Taqa rebrands subsidiaries and merges distribution arms into one unit: The Abu Dhabi National Energy Company (Taqa) has merged its subsidiaries, Abu Dhabi Distribution Company (ADDC) and Al Ain Distribution Company (AADC), into a new entity named Taqa Distribution, according to an ADX disclosure (pdf).

Taqa is also rolling out new names for its fully owned subsidiaries:

Abu Dhabi Transmission and Despatch Company (Transco) will be rebranded as Taqa Transmission;
Sustainable Water Solutions Holdings (SWS Holdings) will now be Taqa Water Solutions;
Abu Dhabi Energy Services (ADES) will become TAQA Energy Services.

CALENDAR

SEPTEMBER

15-19 September (Sunday-Thursday): Loop Beyond Borders, Abu Dhabi.

15 September - 23 February 2025 (Sunday-Sunday): Labour Sports Tournament, Dubai.

16-18 September (Monday-Wednesday): World Utilities Congress, Abu Dhabi.

16-18 September (Monday-Wednesday): Arab Water Forum, ADNEC Abu Dhabi Center.

16-20 September (Monday- Friday): Intelligent Transport Systems World Congress 2024, Dubai.

17-18 September (Tuesday-Wednesday): AI in oil and gas conference, Abu Dhabi.

18-19 September (Wednesday-Thursday): Sharjah Investment Forum, Jawaher Reception and Convention Centre, Sharjah.

19-20 September (Thursday-Friday): Healthcare Leaders Summit 2024, St. Regis Saadiyat Island Resort, Abu Dhabi.

22-26 September (Sunday-Thursday): Sharjah-Europe Businesswomen Forum, Brussels.

23-25 September (Monday-Wednesday): WorldFreezonesOrganization’s Annual International Conference and Exhibition, Dubai.

24-26 September (Tuesday-Thursday): Careers UAE 2024, Dubai World Trade Centre, Dubai.

24-26 September (Tuesday-Thursday): Gulfood Green, Dubai World Trade Centre, Dubai.

25-26 September (Wednesday-Thursday): Green Steel Summit, Dubai, UAE.

25-26 September (Wednesday-Thursday): Global Aerospace Summit, Abu Dhabi, UAE.

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

30 September (Monday): Dubai Podfest, World Trade Center, Dubai.

OCTOBER

1-3 October (Tuesday-Thursday): Water, Energy and Environment Technology Exhibition, Dubai.

2-3 October (Wednesday-Thursday): The World Green Economy Summit, World Trade Center Dubai.

2-3 October (Wednesday-Thursday): MENA District Cooling Projects & MENA Cool Forum, Grand Hyatt Dubai, Dubai Healthcare City, Dubai.

7-8 October (Monday-Tuesday): Forex expo, World Trade Center, Dubai.

7-8 October (Monday-Tuesday): AgraME, World Trade Center, Dubai.

7-10 October (Monday-Thursday): The World Air Taxi Congress, The Grand Hyatt Dubai, Dubai.

8-9 October (Tuesday-Wednesday): Global Trade and Supply Chain Summit, Dubai.

8-10 October (Tuesday-Thursday): The Global Rail Transpo[rt Infrastructure Exhibition and Conference(Global Rail), Abu Dhabi.

9-10 October (Wednesday-Thursday): The Regional Data and Community Development Forum, Al Jawaher Reception and Convention Centre, Sharjah.

10-13 October (Thursday-Sunday): The Abu Dhabi Grand Slam Judo tournament, Mubadala Arena.

13-14 October (Sunday-Monday): Abu Dhabi Wedding Show, Park Hyatt Abu Dhabi.

14-18 October (Monday-Friday): Gitex Global, Dubai World Trade Centre and Dubai Harbour.

13-16 October (Sunday-Wednesday): Expand North Star, Dubai Harbour.

14-18 October (Monday-Friday): IEEE/RSJ International Conference on Intelligent Robots and Systems, Adnec Centre, Abu Dhabi.

14 October (Monday): The Smart Cities MENA Summit, Dubai.

15 October (Tuesday): Deadline for the European Commission to make a decision on its probe into e&’s acquisition of PPF’s Eastern European assets.

21-22 October (Monday-Tuesday): Port Development MEA Forum, Dubai.

21-22 October (Monday-Tuesday): Roads, Bridges, Tunnels MENA Conference, Dubai.

21-22 October (Monday-Tuesday): The Alternative Investment Summit, Dubai.

24-27 October (Thursday-Sunday): International Sports Medicine Conference, Dubai.

26 October (Saturday): UFC 308: TOPURIA vs HOLLOWAY, Etihad Arena, Abu Dhabi.

26-27 October (Saturday-Sunday): International Conference on Tourism, Transport, and Logistics, Dubai.

28-29 October (Monday-Tuesday): MENA Climate Proof Forum, Dubai.

29 October-2 November (Tuesday-Saturday): Abu Dhabi Early Childhood Week, Abu Dhabi.

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

30 October (Wednesday): Connected Construction Conference, Museum of the Future, Dubai.

NOVEMBER

3-10 November (Sunday-Sunday): Dubai Premier Padel P1, Dubai Dutyfree Tennis Stadium, Dubai.

4-7 November (Monday-Thursday): Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC), Abu Dhabi.

4-7 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi.

4-7 November (Monday-Thursday): ADIPEC Decarbonisation Accelerator, Abu Dhabi.

6 November (Friday): World Finance Forum, Dubai.

11 November (Monday): Dubai Diamond Conference, Jafza One Convention Centre, Dubai.

11-12 November (Monday-Tuesday): META Cinema Forum, Dubai.

18-20 November (Monday-Wednesday): Fastmarkets Middle East Iron & Steel 2024, Dubai.

19-20 November (Tuesday-Wednesday): Dubai Future Forum.

20-22 November (Wednesday-Friday): Xpanse Abu Dhabi, Adnec Centre, Abu Dhabi

22-23 November (Friday-Saturday): Global Meet on Electronics & Electrical Engineering (GMEEE), Dubai.

23 November (Saturday): Wireless Festival Middle East, Etihad Park, Abu Dhabi.

23-24 November (Saturday-Sunday): Emirates Dubai Sail Grand Prix, SailGP Race Stadium.

26-27 November (Tuesday-Wednesday) Global Food Security Summit, Adnec Centre Abu Dhabi.

26-29 November (Tuesday-Friday): Big 5 Global, Dubai World Trade Centre.

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

28 November-1 December (Thursday-Sunday): Spartan World Championship, Al Wathba Desert, Abu Dhabi.

30 November (Saturday): Football Legends Cup, Al Maktoum Stadium Al Nasr Sports Club, Dubai.

Signposted to happen ahead of ADIPEC:

Changemakers Majlis, Abu Dhabi.

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.

8-12 December (Sunday-Thursday): International Desalination and Reuse Association World Congress, Adnec Centre Abu Dhabi.

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

9-12 December (Monday-ThursdayTuesday): Abu Dhabi Finance Week, Abu Dhabi.

10-12 December (Tuesday-Thursday): Middle East Investor Relations Association (MEIRA Conference), Conrad Abu Dhabi Etihad Towers Hotel, Abu Dhabi.

10-12 December (Tuesday-Thursday): The Middle East and North Africa Business Aviation Association Show, Al Maktoum International Airport, Dubai.

11-13 December (Wednesday-Friday): European-Arab Medical Congress, Abu Dhabi.

14-21 December (Saturday-Saturday): World Schools Festival, Abu Dhabi

Signposted to happen sometime in December:

UAE-China Summit, Abu Dhabi.
Abu Dhabi Forum for Peace, Abu Dhabi.

JANUARY 2025

1 January (Wednesday): ADGM to slash licensing fees for retail and non-financial firms, and hike fees for finance firms.

9-13 January (Thursday-Monday): International Renewable Energy Agency Youth Forum, Abu Dhabi.

11-13 January (Saturday-Monday): International Renewable Energy Agency Assembly, Abu Dhabi.

14-16 January (Tuesday-Thursday): World Energy Summit, Abu Dhabi.

FEBRUARY 2025

1-8 February (Saturday-Saturday): The Mubadala Abu Dhabi Open, Zayed Sports City's International Tennis Centre.

2-3 February (Sunday-Monday): L’Etape Dubai cycling race, Dubai.

24-25 February (Monday-Tuesday): World Passenger Experience Forum, Dubai.

24-26 February (Monday-Wednesday): Connecting Hydrogen MENA, Dubai.

Signposted to happen sometime in 1Q 2025:

The first eight fronds of the Palm Jebel Ali will be site-ready, allowing for the commencement of villa infrastructure and civil works.

APRIL 2025

6-11 April (Sunday-Friday): Geo-Spatial Week 2025, Dubai.

7-9 April (Monday-Wednesday): AIM Investment Summit, Abu Dhabi National Exhibition Center

14-16 April (Monday-Wednesday): Dubai Woodshow’s 21st Edition, Dubai World Trade Centre

Signposted to happen sometime in April:

Abu Dhabi Autonomous Racing League, Yas Marina Circuit in Abu Dhabi

MAY 2025

6-7 May (Tuesday-Wednesday): Global Ports Forum, Dubai.

26-28 May (Monday-Wednesday): Arab Media Summit, World Trade Centre, Dubai.

JUNE 2025

3-4 June (Tuesday-Wednesday): Make-A-Wish International’s Global Wish summit, Abu Dhabi.

OCTOBER 2025

27-29 October (Monday-Wednesday): Asia Pacific Cities Summit, Dubai Exhibition Centre.

Signposted to happen sometime in 2025:

The Middle East Electric Vehicle Show, Expo Center Sharjah.
e& will complete Adnoc’s private 5G network.
The International Civil Aviation Organization’s Global Implementation Support Symposium, Abu Dhabi.

Signposted to happen sometime in the fall of 2025:

2025 Games of the Future, Dubai.

Signposted to happen sometime in 2026:

The UAE to host the Arab Competition Forum
Dubai to host the Arab Actuarial Conference

Signposted to happen sometime in 2028:

Abu Dhabi to host the Chess Olympiad.

Signposted to happen sometime in 2029:

Dubai to host the International Conference on Computer Vision.

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