Lunate, Olayan take 49% stake in Dubai office tower

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Another stormy week. PLUS: World Bank and IMF meetings kick off in DC

Good morning, wonderful people. We hope you had a lovely Eid break and that your return to work is as smooth and easy as possible.

REMEMBER- The generous nine-day break was the last one for a while: Our next holiday won’t come before mid-June, in time for Eid Al Adha.

THE BIG STORY over the Eid break was Lunate and Riyadh’s Olayan Group’s acquisition of a 49% stake in Dubai’s largest office tower, the ICD Brookfield Place (ICDBP). The acquisition is one of the largest commercial real estate transactions globally since 2020.

PUBLIC SERVICE ANNOUNCEMENT-

#1- We’re getting some showers over the next few days: The country is expected to see heavy rainfall, accompanied by lightning and thunder, especially on coastal and southern regions, from today until early Wednesday morning, according to the National Center of Meteorology.

#2- You can now download ownership and private benefit deeds in Sharjah from UAE Pass’ digital wallet, Wam reports. The new service covers ownership, joint ownership, and usufruct deeds.

#3- Consumers now have the right to request product recalls through the Economy Ministry's 'right to recall' service, Khaleej Times reports. This service was previously limited to the good’s original supplier and “the relevant party in the UAE, or in the country of origin, or in any other country”. The service, which is free of charge, can be accessed through the ministry's website or app and is overseen by the Competition and Consumer Protection Department. Recalled goods can be viewed on the ministry's website.

HAPPENING THIS WEEK-

The 2024 spring meetings of the World Bank and the International Monetary Fund (IMF) kicked off on Thursday and run until Saturday, 20 April, in Washington, DC.

What you need to know:

#1- Minister of State for Financial Affairs Mohamed bin Hadi Al Hussaini is leading the UAE’s delegation at the meetings, according to a ministry statement. The delegation also includes other officials from the Finance Ministry and the Central Bank of the UAE, Al Arabiya reports

Kristalina Georgieva, the IMF’s managing director, will hold a press briefing this Thursday to discuss the global policy agenda, which will be followed by a separate briefing hosted by Jihad Azour, IMF’s director of Middle East and Central Asia department.

Sound smart: Georgieva just got a second, five-year term as IMF boss. Her next term begins on 1 October 2024. The IMF’s executive board said she was getting another term thanks to her “strong and agile leadership … navigating a series of major global shocks.” Georgieva was named IMF boss just months before covid-19 kicked off.

#2- Renewables giant Masdar will host the World Future Energy Summit from tomorrow through to this Thursday, 18 April, in Abu Dhabi, it said in a statement. The summit will address solutions for development in the transformation of future energy systems, and feature discussions on recycling, waste-to-energy, and air-to-water trends and progressions. The event will include a Green Hydrogen Summit to ramp up the development of the global green hydrogen economy and support the transition towards net-zero emissions, where former UK Prime Minister Boris Johnson will deliver a keynote address, Wam writes.

#3- The government-organized AI summit Machines Can See is scheduled to take place this Wednesday at the Museum of the Future in Dubai. The one-day event will discuss the use of AI to transform urban systems and services, outlook on AI investments, and explore the risks of AI.

#4- Token2049 is taking place this Thursday and Friday at Madinat Jumeirah in Dubai. The event is set to bring together over 10k attendees from more than 5k companies, featuring over 200 speakers and more than 150 exhibitors. Flare Network’s co-founder and CEO of Flare Labs, Hugo Philio is set to speak at the event on 18 April, according to a statement posted on X.

There’s no single big story abroad this morning, but driving the news for the foreseeable future:

#1- Are we looking at an Iran-Israel war? Saudi, G7, Egyptian, and G20 leaders are all pushing Tel Aviv and Tehran to cool off lest they tip things over into a wider regional conflagration. It’s the singular priority in policymaking circles this morning, as underscored by the banner headline in the Wall Street Journal: Biden wanted to avoid a regional war. Now he’s got one.

The key message to Israel, per Politico: Don’t do something you’ll regret.

Riyadh and Abu Dhabi could be key to how this all plays out, Reuters notes, given our unique positions as intermediaries between Iran, Israel, and the United States. We unpack that notion in our War Watch section, below.

#2- The wildcard: How will Netanyahu react? And on what time scale? International leaders will have plenty of forums in which to express “deep concern” this week, with G7 foreign ministers and EU heads of state both set to meet on Wednesday and G20 finance ministers meeting on Thursday.

Also “top of mind” as we keep shrugging off the post-Eid blues:

#3- The IMF and World Bank annual meetings get fully underway later today in Washington, DC. The IMF will release its World Economic Outlook and part of its Global Financial Stability report tomorrow and its fiscal monitor on Wednesday.

#4- It’s earnings season once again. 1Q figures are set to kick off in the West and here at home, with Goldman Sachs, Bank of America, Morgan Stanley, and BNY Mellon all set to release financial reports between today and tomorrow.

Not enough news in the pipeline for you? The halving of BTC should take place sometime around Saturday, Donald Trump’s criminal hush-money trial gets underway today in New York City, and India kicks off its 44-day parliamentary election process on Friday.

WATCH THIS SPACE-

#1- Abu Dhabi-backed RedBird IMI is in talks with the UK government to potentially sell the Telegraph and Spectator titles separately, a step that might draw in additional interested parties, including former Fox News head Rupert Murdoch, Bloomberg reports. RedBird IMI has tapped Raine Group to oversee any sale process and is examining various sale structures. This includes negotiations with the British Department for Culture, Media, and Sport on “whether it can convert its call option over the media assets into shares,” according to Sky News. RedBird expects that selling the Spectator independently could yield around GBP 100 mn (AED 457.2mn) or more.

REMEMBER-RedBird IMI’s acquisition of the two magazines stalled after the UK government passed a resolution that would ban foreign state ownership of media outlets.

#2- Alabbar exits Belarus: Real estate b’naire Mohamed Alabbar has entered a preliminary agreement to sell his stake in “a USD multi-bn property development” in Belarus’ capital, Minsk, amid Western sanctions imposed on the country, Reuters reports, citing sources in the know. Alabbar plans to sell off his stake through his investment vehicle Symphony Global Holdings, the sources said.

…and looks to venture into Serbia: As he is reportedly exiting his investments in Belarus, Alabbar is looking to invest in Serbia to redevelop a property that formerly belonged to the Yugoslav army into a residential complex, according to the newswire. Alabbar will cooperate on the Serbia development with former US President Donald Trump’s son-in-law Jared Kushner, Donald Trump’s son-in-law, saying he is “very excited about more high-end development in the market.” However, a source familiar with the investment plans told Reuters that the talks are still in the early stages, with the property tycoon joining as an advisor.

#3- Altman pushes for more large-scale AI infrastructure: OpenAI CEO Sam Altman pushed for private sector support for costly, large-scale AI infrastructure, boosting chip supply, energy, and data center capacity during meetings with investors and government officials in the UAE last week, Bloomberg reports, citing people familiar with the discussions. Altman’s visit to the UAE comes as he is aiming to ramp up global infrastructure for AI against concerns that infrastructure development will not keep up with rapid developments in the technology.

It’s not Altman’s first time in town: In January, Altman met with Sheikh Tahnoon bin Zayed Al Nahyan and Abu Dhabi-based G42 while attempting to onboard large global investors for a proposed USD multi-bn chip venture. The funds would go toward setting up a network of factories to manufacture semiconductors to address OpenAI’s semiconductor needs and decrease reliance on semiconductor chip giant Nvidia.

Lunate, Olayan acquire 49% stake in Dubai’s ICD Brookfield Place in rare upbeat transaction

Abu Dhabi investment firm Lunate and Riyadh’s Olayan Group have acquired a 49% stake in ICD Brookfield Place (ICDBP), buying into Dubai’s largest office tower, according to a joint statement last week. The acquisition is one of the largest commercial real estate transactions globally since 2020 — and stands out as a rare commitment to office space after demand for the asset class contracted sharply in most major global centers in the wake of the covid-19 pandemic.

What we know: A Lunate fund and Olayan Financing Company will separately acquire 24.5% stakes in the tower. The Investment Corporation of Dubai (ICD) — the Dubai government’s principal investment arm — and Brookfield will evenly split the remaining 51%. Financial terms of the agreement were not disclosed, but Bloomberg previously set the tower’s value at USD 1.5 bn.

We’ve been expecting this: The tower was put up for sale last year with interest mainly coming from buyers from the region and Asia, according to Bloomberg. Abu Dhabi wealth fund ADQ was reportedly among bidders looking to grab a minority stake in the tower.

About the tower: ICDBP is a mixed-use real estate development that is home to global financial institutions, law firms and other offices, including JP Morgan, BNP Paribas, and Clifford Chance. It is over 98% occupied at premium rents, according to the statement.

What they said: “This transaction further supports our Long Term Capital strategy to invest in premium assets, delivering attractive yields and capital appreciation,” said Lunate Managing Partner Murtaza Hussain. “This investment is a testament to the continued demand for premier office properties like ICD Brookfield Place and underscores the fact that capital continues to seek high-quality real estate globally,” added Jad Ellawn, managing partner and regional head of the Middle East at Brookfield.

Adnoc gets the green light for Fertiglobe acquisition

The European Commission has approved the Abu Dhabi National Oil Company (Adnoc)’s acquisition of Netherlands-based OCI Global’s stake in Fertiglobe, according to a European Commission (EC) statement last week. Chemical producer OCI Global previously held a 50% +1 stake in their joint venture Fertiglobe for AED 13.28 bn (c.USD 3.62 bn).

Background: The two companies signed a binding agreement to offload OCI’s 51% stake in Fertiglobe in December. Adnoc’s shares in Fertiglobe were said to have increased to 86.2% at the time, with the remaining in freefloat on the Abu Dhabi Securities Exchange. Fetiglobe shares were priced at an 8% premium at AED 3.20 (c.USD 0.87) per share, OCI said in December.

What Adnoc stands to gain: The acquisition aims to boost the production and distribution of nitrogen fertilizers by Fetiglobe, according to the EC statement. Adnoc’s acquisition of OCI’s stakes is part of a company drive to expand its global ammonia production network, in efforts to grow a platform for the low-carbon fuel which also serves a (green) hydrogen carrier.

Fertiglobe is positioning itself as a major ammonia player: Fertiglobe sent the world’s first ISCC PLUS-certified (International Sustainability and Carbon Certification) green ammonia shipment to India from its electrolyzer facility in Egypt’s Suez Canal Economic Zone in December. Fertiglobe, alongside Adnoc-ADQ JV Ta’ziz, GS Energy, and Mitsui, has also signed a shareholder agreement to construct a facility to produce some 1 mn tons of low-carbon ammonia annually in the UAE. The company is currently studying another green hydrogen project in the UAE in collaboration with Masdar and Engie.

Not the first — or last — partnership between Adnoc and OCI: Both sides inked an MoU to explore importing and distributing ammonia in the EU in December. The agreement will see the two explore joint investments in decarbonization and product distribution projects in North America and Europe. OCI is also considering offering its US crop nutrient unit Iowa Fertilizers to Adnoc for more than USD 3 bn.

IN OTHER ADNOC NEWS-

Adnoc had its eyes on BP for LNG portfolio, but has reportedly backed out: Adnoc reportedly entered discussions to acquire a “big stake” in multinational oil and gas company BP in a bid to up its liquefied natural gas (LNG) portfolio, Reuters reports, citing people familiar with the matter. Talks “didn’t go far,” after the Emirati oil giant weighed political considerations and decided that BP would not be the right fit for its strategy, the sources added. Adnoc also looked at other international companies for wider LNG access, with no further information disclosed.

The rationale for a no to BP? UK governments have in the past told BP that they would block any takeover attempts by foreign entities, owing to the company's strategic value at GBP 88 bn, Reuters adds, citing people familiar with the matter. The potential government intervention might have swayed Adnoc’s decision on the transaction — especially after the British government recently objected to a UAE-led takeover of British newspaper The Telegraph.

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

FAB eyeing Yapi Kredi acquisition amid growing interest in Turkish investments

First Abu Dhabi Bank (FAB) is reportedly mulling an acquisition of Turkish lender Yapi Kredi, valued at USD 7.6 bn, as part of a global expansion strategy, Bloomberg reports, citing unnamed sources.

Nothing is set in stone: The talks remain in early stages, Bloomberg’s sources said. Neither Yapi Kredi nor FAB commented on the reports. “As an investment holding company, we may evaluate alternatives regarding our portfolio and engage in discussions with relevant parties as necessary at all times,” Yapi Kredi’s majority owner, Koc Holding AS, said in a statement in response to reports of a MENA investor’s interest in acquisitions in Turkey, according to Bloomberg.

FAB isn’t the only UAE bank to have shown interest in Turkish investments: Dubai Islamic Bank announced in September that it plans to purchase a 20% stake in Turkey's TOM Group of Companies.

REMEMBER- Ties between the UAE and Turkey have warmed as of late: Last year, the UAE inked over USD 50 bn in agreements with Turkey during a visit from Turkish President Recep Tayyip Erdogan, including commitments to develop energy and natural resources projects and a trade agreement.

DP World is reportedly eyeing an acquisition of Hong Kong-based Cargo Services Far East

Port operator DP World is reportedly finalizing the acquisition of Hong Kong-based logistics firm Cargo Services Far East, Bloomberg reported, citing sources with knowledge of the matter. The potential acquisition could be valued between USD 300-400 mn, with the move set to expand DP World’s Asian footprint.

Details are scant: Both firms are working to finalize the transaction, with an announcement possible in the coming days, sources told Bloomberg. A final value of the acquisition depends on the assets included in the sale. We first caught wind of the talks back in November, with sources at the time valuing a potential takeover at USD 800 mn.

About the company: Cargo Services Far East — owned by Hong Kong tycoon John Lau — operates in cold chain logistics, ocean and freight shipping, and fashion distribution, according to Bloomberg. The company has offices in 35 cities in China, Singapore, Australia, South Africa, and the US. The firm’s stock dipped by around 31% over the last 12 months, valuing the company at around USD 212 mn, the outlet also said.

DP World has been on an expansion spree: DP World inked an agreement with Brazil’s leading railway operator Rumo to establish a new terminal for grains and fertilizers at Port Santos last month. The port operator also announced that it was gearing up to develop a new USD 50 mn logistics center in South Korea’s Busan New Port, with construction slated to begin at the end of the year and operations kicking off by 2Q 2026.

Airlines suspend + reroute flights following Iran attack against Israel

Air travel disrupted following Iranian retaliatory attack against Israel: Several domestic airlines — including Emirates, Etihad, and flydubai — canceled some flights and rerouted others after Iran launched a missile attack on Israel on Saturday, leading Israel, Jordan, and Lebanon to temporarily close their airspaces.

WHAT HAPPENED- Iran’s Islamic Revolution Guards Corps launched dozens of drones and missiles at Israel on Saturday, Reuters reported, citing Israel’s military as saying. The attacks — which comes after Iran vowed to retaliate for an Israeli attack on 1 April on the Iranian embassy in Damascus that killed 16 members of the Revolutionary Guards — marks a significant escalation between the regional enemies. Some 99% of the drones were intercepted, Israeli military spokesperson Daniel Hagari told the Financial Times yesterday, with the UK and US also intervening to intercept some of the drones, the newspaper reports.

Jordan, Lebanon, Iraq closed their airspaces as a temporary precautionary measure after Iran launched the drones, Bloomberg reports. Lebanon and Iraq both reopened their airspaces on Sunday morning. Amman continued its closure for several hours, but also followed suit yesterday, Reuters reports. Israel shut its airspace for both domestic and international routes on Saturday before reopening them yesterday morning. Flights will remain canceled at Tehran’s Mehrabad International Airport until 6 am, Iranian news agency IRNA reports.

Which airlines were affected: Etihad Airways canceled flights to Tel Aviv and Amman yesterday and rerouted others to and from Europe and North America, an airline representative told the National. Emirates also canceled some flights and temporarily rerouted others, but resumed operations yesterday. “With the re-opening of these airspaces, we are resuming our scheduled operations to/from Jordan, Lebanon, and Iraq from the afternoon of April 14,” a spokesperson told the newspaper.

There was a naval escalation, too: Prior to the drones, Iran’s Revolutionary Guard seized an Israeli-linked MSC container vessel, MSC Aries, in the Strait of Hormuz — around 50 nautical miles north of Fujairah — on Saturday, Asharq Business reported on Saturday. The vessel was operating a service from UAE’s Khalifa port to Nhava Sheva in Mumbai, the Financial Times reports.

UAE reacts: The UAE called for “restraint” and “to avoid exacerbating tensions and instability in the region,” according to a Foreign Ministry statement yesterday. The ministry urged reaching a resolution through diplomatic channels and “adhering to the rule of law.

Regional sources speaking to Reuters see mediators in Riyadh and Abu Dhabi being central to a potential detente in the region, as Gulf states look to prevent a full-blown war between Iran and Israel. A war would impact Gulf states who share air space with Iran and host several US military bases.

A spillover that everyone is trying to avoid: “Nobody wants an escalation. Everybody wants to contain the situation,” a Gulf source with knowledge of his government’s thinking said. “The pressure is not on Iran alone. The pressure is now on Israel not to retaliate,” the source said, adding that a response by Israel on vital Iranian sites “will affect all the region.”

FACT CHECK- The UAE has not suspended diplomatic ties with Israel, diplomatic sources from the two countries said, debunking social media claims, according to Reuters. The unverified reports of suspended ties had emerged after Israel killed seven volunteers from the nonprofit World Central Kitchen — the UAE’s partner in the Amalthea humanitarian initiative in Gaza — at the beginning of the month. The UAE condemned the attack at the time.

President Sheikh Mohamed bin Zayed Al Nahyan spoke with Qatari Emir Tamim bin Hamed Al Thani and Jordan’s King Abdullah to discuss the situation in Gaza as well as boosting diplomatic ties, Wam reported separately (here and here).

ALSO-The UAE pledged more aid for Gaza: President Sheikh Mohamed bin Zayed Al Nahyan pledged USD 15 mn to Cyprus’ Amalthea Fund, which aims to support the UAE-funded maritime corridor initiative to deliver aid to Gaza through Cyprus, according to a Foreign Ministry statement. Two aid cargo arranged by the UAE have set sail from Cyprus’ Larnaca port to Gaza through the new UAE-funded maritime corridors delivering aid to Gaza, with the first ship carrying 200 tonnes of food and supplies. The UAE has since paused aid shipments to Gaza via its maritime corridor from Cyprus following an Israeli strike that killed seven World Central Kitchen workers.

GCC banks’ Turkish subsidiaries to face higher losses in 2024 before disinflation kicks in -Fitch

Gulf banks with subsidiaries in Turkey are expected to incur higher net losses this year, before disinflation in Turkey begins to reduce the lenders’ losses, Fitch Ratings said in a research note.

FOR CONTEXT- GCC banks’ Turkish subsidiaries adopted hyperinflation reporting in 1H FY 2022 in response to cumulative inflation in Turkey exceeding 100% over three years. This reporting requires banks to include the net monetary losses in their income statements by restating their non-monetary assets and liabilities to reflect the impact of hyperinflation.

Emirates NBD was among the hardest-hit, along with Qatar National Bank (QNB), with both lenders seeing their risk-weighted assets ratios, Fitch’s core profitability metric, fall by 60-70 bps.

The outlook: Banks are now expected to turn in net losses of USD 2.8 bn this year — up from USD 2.6 bn in 2023 — on the back of high inflation in Turkey, which is expected to average at 53% this year. Fitch had previously forecasted 2024 net losses for these banks would come in at USD 1.3 bn. However, net losses are expected to halve next year to USD 1.4 bn as disinflation takes hold in Turkey, with Fitch expecting inflation to cool to 29%.

GCC banks are expected to no longer rely on hyperinflation reporting from 2027, as disinflation should reduce the subsidiaries’ net monetary losses,'' according to Fitch. Additionally, “slower TRY depreciation should reduce the adverse capital impact from currency translation losses,” as the firm predicts the Turkish Lira’s depreciation against the USD to slow down by 22% in 2024 and 7% in 2025 resulting in “smaller currency translation losses and less capital erosion” over the two years.

Traditional monetary policy will do some good: The banks’ losses will gradually fall in tandem with the decline in economic risks and the implementation of “traditional monetary policies,” head of Middle East Banks at Fitch Redmond Ramsdale told Asharq Business (watch, runtime, 5:23). Fitch upgraded the ratings of 18 Turkish banks, including GCC lenders’ subsidiaries, following Turkey’s sovereign rating upgrade to ‘B+’ with a positive outlook from ‘B’ with a stable outlook in March, signaling growing confidence in inflation falling on the back of the policies the country has been implementing since June 2023.

Dubai introduces new authority to regulate DIFC + local court disputes

A new authority will now be responsible for resolving jurisdictional conflicts between Dubai courts, following a decree from Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum, according to the Dubai Media Office. The Judicial Authority for Resolving Jurisdictional Conflicts between DIFC Courts and Judicial Authorities in the Emirate of Dubai overtakes the former Judicial Tribunal for Dubai Courts and DIFC Courts.

Roles + responsibilities: The authority will decide which courts handle disputes, specify enforceable judgments in cases of conflicts, and carry out tasks assigned by the Ruler of Dubai or the Chairman of the Dubai Judicial Council. It will be chaired by the president of the Court of Cassation at Dubai Courts, with DIFC Courts deputy chief justice acting as deputy chairman.

Courts under its jurisdiction: The authority’s legal rules are binding on all judicial bodies in Dubai, including the Court of Cassation, Court of Appeal, Court of First Instance, and any future courts in Dubai, plus DIFC Courts. Its decisions are binding but can be appealed.

Abu Dhabi issues decree making environmental data reporting mandatory

New standards on environmental reporting: Businesses licensed by the Environment Agency of Abu Dhabi will be required to report their environmental data — including power usage and emissions — every year under a new decree issued by Chairman of the Environment Agency of Abu Dhabi (EAD) Sheikh Hamdan bin Zayed Al Nahyan, according to an Abu Dhabi Media Office last week. The statement did not clarify when the new requirements will go into effect.

The requirements: Businesses will have to report on their energy, water use, and emissions in Abu Dhabi during 1Q of each year. They will also need to include information on operations, equipment, and emission control, as well as report accidents.

The EAD’s role: The EAD will be responsible for setting standards, monitoring discharges, evaluating reports, and overseeing corrective actions, according to the statement. They will also conduct awareness workshops on environmental reporting. In addition to existing penalties, the EAD can impose further administrative penalties for violations of the new environmental reporting rules. The agency is also tasked with working out a mechanism through which businesses can report the data, the statement added.

Five Holdings + Union Coop report 2023 results

Hospitality group Five Holdings saw its net income increase 35% y-o-y to AED 314 mn in 2023, according to its earnings release. The hospitality group’s revenues rose 37% y-o-y to AED 1.7 bn during the year. On a pro forma basis, reflecting its acquisition of Universo Pacha SA, the company saw revenues of AED 2.1 bn, marking a 69% y-o-y increase, while net income reached AED 390 mn, up 68% y-o-y.

Dubai-based UAE сonsumers' co-operative Union Coop’s net income stood at AED 297 mn in 2023, down 19.7% y-o-y, according to the company’s financial results (pdf). The company’s revenues also fell 1.4% to AED 1.7 bn in 2023.

Etihad taps interim COO. PLUS: New UN ambassador to the UN

Etihad Airways has tapped John Wright (LinkedIn) as interim COO and guest officer, as it embarks on a global talent search for a permanent appointment for the COO position, reports the National. Wright previously held the position of vice president of network, airports, and cargo operations at Etihad. He replaces former COO Mohammad Al Bulooki (LinkedIn), who resigned from his position after taking on the role in 2018.

President Sheikh Mohamed bin Zayed Al Nahyan has appointed Ambassador Mohamed Abushahab (LinkedIn) as the UAE’s Permanent Representative to the United Nations, succeeding Ambassador Lana Nusseibeh, who has held the position since September 2013, Wam reports. Abushahad assumes the role after joining the UAE mission to the UN as Deputy Permanent Representative in 2021. Nusseibeh will continue to serve as the political affairs assistant minister and envoy of the foreign affairs minister.

Capital markets and AI in the spotlight

Bloomberg’s deep dive into the growth of the UAE’s stock exchanges — and the role of state companies like International Holding Company in that success — was the biggest story on the UAE during the Eid al Fitr break. The business information service spoke to several investors and experts, as well as IHC CEO Syed Bsar Shueb, about the complex dynamics of capital markets and foreign vs. local investments in the country.

Also getting attention: The UAE’s race towards becoming an AI giant — especially as Saudi Arabia looks to ramp up its infrastructure, with both looking at ways to move up the AI ladder, including offering subsidies to cloud providers.

RTA awards contract for 1.6km tunnel in Dubai. PLUS: More from Mubadala, ADEK, Adafsa, and ITC

INFRASTRUCTURE-

Dubai's Roads and Transport Authority has awarded a contract for constructing the Al Khaleej Street Tunnel Project, part of the Al Shindagha Corridor Improvement Project, according to a press release, which did not disclose the identity of the company that was awarded the contract. The 1.6 km tunnel, which will consist of six lanes and accommodate up to 12k vehicles per hour, will extend from the end of Deira’s Infinity Bridge to the intersection of Al Khaleej and Cairo streets.

Part of bigger plans to ease traffic: The Al Shindagha Corridor Improvement Project is expected to service 1 mn people and reduce travel times from 104 minutes to 16 minutes by 2030.

ENERGY-

Mubadala-backed Atvos signs agreement for USD 69 mn biomethane plant in Brazil: Brazilian sugarcane processor Atvos, which is backed by Abu Dhabi’s Mubadala Capital, will build a USD 69.4 mn biomethane factory in Nova Alvorada do Sul in Brazil, Reuters reported on Thursday. Atvos already owns an ethanol factory at this location.

The details: The biomethane plant will run on sugar cane waste and is expected to have a 28 mn cubic meter capacity per crop. Final approval is pending an engineering analysis, but the project should be underway this year. Mubadala Capital — the asset management arm of UAE investor Mubadala Investments — acquired in October Grupo Novonor’s 6.85% stake in Atvos, bringing its total stake to 38.35

AVIATION-

Mubadala-owned Sanad will continue servicing Asiana Airlines’ V2500 engine fleet — exceeding 80 aircraft — for five more years, after inking a USD 145 mn five-year contract extension with the South Korean carrier on the sidelines of the MRO Americas event in Chicago, reports Wam. The Abu Dhabi-based aerospace engineering and leasing solutions company has been the sole maintenance, repair, and overhaul services provider in the MENA region for Asiana Airlines — South Korea’s second-largest airline — since 2018.

EDUCATION-

Social care professionals working in private educational institutions will now be granted licenses by Abu Dhabi’s Department of Community Development and Department of Education and Knowledge (ADEK) after the two bodies inked an MoU, reports the Abu Dhabi Media Office. The agreement aims to up the qualifications and services provided by social care workers employed in Abu Dhabi’s private schools to support student well-being and improve their academic performance.

The details: The partnership will see the two bodies initially license 80 social care professionals working with ADEK, with the rest of the necessary licenses to be issued in the near future. A joint high-level committee comprising senior management from both departments will oversee the agreement’s implementation and monitor the performance. As part of the agreement, the departments will also coordinate work on priority joint programs between the social and educational sectors, and ramp up information sharing.

HEALTHCARE-

Adafsa joins global efforts to combat Covid: The Abu Dhabi Agriculture and Food Safety Authority (Adafsa) laboratories have joined the World Health Organization’s Coronavirus Network of Reference Laboratories, CoViNet, to participate in global research efforts aimed at early detection, surveillance and genetic characterization of coronaviruses, such as SARS-CoV-2 (better known as COVID-19) and MERS-CoV, according to a statement from the Abu Dhabi Media Office.

TRANSPORTATION-

ITC partners with Japanese firm to enhance traffic intel: Abu Dhabi’s Integrated Transport Centre has partnered with Japanese research company LocationMind to enhance data utilization and support traffic analysis efforts in Abu Dhabi, the Abu Dhabi Media Office reports. The partnership seeks to deploy AI and machine learning for traffic analysis, accident prediction, and traffic signal optimization. It also plans to deploy smart city applications for real-time public transport updates and event-specific population movement alerts.

Faster approvals, simpler structure, and more impact will be hallmarks of World Bank, its chief says

World Bank Group President Ajay Banga kicked off the IMF and World Bank Group’s spring meetings last Thursday with a press conference at which he talked about challenges facing the global economy and how the group plans to expand its role in addressing them (watch, runtime: 34:26).

G20 wants the WB Group to play a larger role on the global scale: Banga touched on some of the most-talked-about global issues including climate change, food insecurity, pandemics, poverty, and scarce resources, saying that “G20 leaders challenged the World Bank Group to change and to be a bigger part of the solution,” with the bloc providing a roadmap of 27 recommendation for the group to boost the speed and simplicity of its processes, “leveraging our [the group’s] balance sheet, engaging partners and the private sector.

More bucks for more bang: The group has liberated USD 40 bn over the past 10 years from its balance sheet by adjusting its loan to equity ratio to be able to take part in more projects with bigger investments. The group plans to use some of its tools including the portfolio guarantee mechanism, and the hybrid capital instrument “ to leverage every dollar we receive, six to eight times over the coming decade,” Banga explained.

A new fund for cross-border projects: Earlier this month, the group “began offering 50-year financing through IBRD at no additional cost for projects that provide cross-border benefits,” said Banga, adding that the group has launched a “Livable Planet Fund that can be funded by governments, but also by philanthropies,” to finance these new incentives. “All these instruments, what they do is they help us support the ambitions of middle-income countries, but we must do all we can to lift up lower-income countries,” he highlighted.

Mobilizing funds for lower-income countries: The IDA replenishment is coming up at the end of 2024 and the group is aiming to pool together generous funds to refill the association’s coffers. “IDA is the largest source of concessional financing for lower-income countries,” said Banga.

Data openness to encourage private investment in developing economies: “Last month, we started to publish our proprietary data as a global public good to kind of inspire investor confidence,” said Banga, explaining that the group started by publishing private sector data by country income level, private sector default data categorized by credit rating, and sovereign default and recovery rate statistics dating back to 1985.

THE MARKETS THIS MORNING-

Holding steady? Traders around the world seem to be taking Iran’s missile and drone attack on Israel — unprecedented though it may be — with a grain of salt:

US stock futures ticked up overnight and European futures inched down ever so slightly. All three major US indexes closed down last week;
Gold and oil prices — both on an upward march of late, with gold having hit another all-time high last week — pulled back slightly yesterday;
The USD is holding steady and BTC strengthened overnight.

HAPPENING NOW- Major Asian benchmarks are down across the board this morning. The Shanghai Composite is taking it in stride, off 0.3% in early trading, while the Hang Seng, Kospi, and Nikkei are all down 1.1-1.3%.

ADX	9,237	0.0% (YTD: -3.6%)
DFM	4,244	-0.1% (YTD: +4.5%)
Nasdaq Dubai UAE20	3,729	+0.1% (YTD: 2.9%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.1% o/n	5.1% 1 yr
TASI	12,667	-0.3% (YTD: +5.9%)
EGX30	28,504	+1.3% (YTD: +14.5%)
S&P 500	5,123	-1.5% (YTD: +7.4%)
FTSE 100	7,996	+0.9% (YTD: +3.4%)
Euro Stoxx 50	4,955	-0.2% (YTD: +9.6%)
Brent crude	USD 90.45	+0.8%
Natural gas (Nymex)	USD 1.77	+0.3%
Gold	USD 2,374.70	+0.1%
BTC	USD 64,251.30	+1.9% (YTD: +50.8%)

CORPORATE ACTIONS-

MBME Group approved paying shareholders 10% bonus shares as dividends for 2023 ,amounting to AED 250 mn, according to an ADX disclosure (pdf).

Burjeel Holdings approved an interim dividend distribution of AED 65 mn, equivalent to one fils per share, according to an ADX disclosure (pdf).

Abu Dhabi-based Eshraq Investments canceled over 135k of its treasury shares last week, reducing the firm’s capital by AED 135 mn, according to an ADX disclosure (pdf).

NCTH seeks shareholder approval to acquire Alpha Dhabi subsidiaries: The National Corporation for Tourism and Hotels’ general assembly is set to meet this Wednesday, 17 April to hold a shareholder vote on its proposal to merge three hotel businesses owned by Alpha Dhabi into its portfolio through a share swap agreement, according to an ADX disclosure. The targeted businesses for acquisition include ADH Hospitality, Murban (BVI) Holding, and Hill View Resorts in the Seychelles.

CALENDAR

APRIL

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

15-16 April (Monday-Tuesday): Blockchain Life Forum 2024, Festival Arena, Dubai.

15 April (Monday): Dubai Metro Red Line Y junction goes live.

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

16-18 April (Tuesday-Thursday): EcoWaste Exhibition and Forum, 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.

17 April (Wednesday): Machines Can See, Museum of the Future, Dubai.

17-18 April (Wednesday-Thursday): International Translation Conference, Abu Dhabi National Library and Archives.

18-19 April (Thursday-Friday): TOKEN2049, Madinat Jumeirah in Dubai.

22-24 April (Monday-Wednesday): Emirates Skills National Competition

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

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

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

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

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

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

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

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

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

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

MAY

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

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

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

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

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

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

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

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

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

15 May (Wednesday): HFM Summit, DIFC.

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

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

19 May (Sunday): InvestopiaEurope, Milan.

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

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

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

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

JUNE

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

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

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

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

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

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

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

JULY

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

SEPTEMBER

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

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

OCTOBER

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

NOVEMBER

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

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

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

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

DECEMBER

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

5-8 December (Thursday-Sunday): Formula 1 Etihad Airways Abu Dhabi Grand Prix, Yas Marina Circuit.

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

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

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