Masdar unveils what is set to be one of the world's largest solar-battery projects

1

WHAT WE’RE TRACKING TODAY

THIS MORNING: MBZ-SAT takes off on Falcon 9 rocket + Introducing EXERGY

Good morning, wonderful people. We’ve got a packed issue for you today — Masdar announced what is expected to be one of the world’s largest solar and battery projects, fresh M&A activity courtesy of Adia and AIM, and Gems will soon open up Dubai’s most expensive school.

The Mohamed bin Zayed satellite (MBZ-SAT) took off last night from the Vandenberg Space Force Base in California, aboard a Falcon 9 Rocket, Wam reports. Fully developed by Emirati engineers, the satellite is the most advanced in the region, offering high-resolution imaging with a detail area smaller than one square meter. Its productivity is 10 times greater than previous models, with data sharing speeds four times faster.

WEATHER- We’re in for another cloudy day: The National Center of Meteorology forecasts (pdf) today’s weather to be partly cloudy in eastern and northern areas, with a chance of light rainfall and light-blowing winds. Temperatures today will hit 25°C in Dubai, with an overnight low of 16°C, and 23°C in Abu Dhabi, before cooling to an overnight low of 18°C.

WATCH THIS SPACE-

#1- Rents in Sharjah are expected to remain high over the next two years, having already risen between 5-10%, Khaleej Times reports, citing Chairman of the Representative Committee of the Real Estate Sector Business Group at the Sharjah Chamber of Commerce and Industry Saeed Ghanem Al Suwaidi. The emirate’s rising population and the allowance of foreign freehold ownership underscored the projected rise in rent rates.

REMEMBER- Sharjah could roll out its rental index during the Acres real estate exhibition between 22 and 25 January, aiming to increase transparency, boost investor confidence, and reduce disputes between tenants and landlords. The emirate also issued a new law for real estate rentals in September, capping rent hikes, imposing stricter eviction rules, and requiring faster ratification of leasing contracts.

#2- The UAE is launching a new international energy investment company dubbed EXERGY in a bid to address growing global energy demand amid megatrends like AI computing, Zawya reports, citing remarks made by the Industry and Advanced Technology Minister Sultan bin Ahmed Al Jaber on the sidelines of Abu Dhabi Sustainability Week. The investment vehicle will adopt a diversified energy approach, investing across gas, chemicals, low-carbon fuels, and energy infrastructure.

IN CONTEXT- Global power demand was projected to grow to over 15k GW by 2035 from 9k GW currently, Al Jaber said. This figure is now expected to reach 35k GW by 2050 — up 250% — driven by rising AI applications like ChatGPT, which consume ten times the energy of a single Google search, he explained.

#3- ADQ moves in on takeover of Turkey’s Odeabank: Abu Dhabi sovereign wealth fund ADQ is seeking approval from the Turkish Competition Authority to acquire 96% of Odeabank, Bank Audi ’s subsidiary in Turkey, Asharq Business reports.

REMEMBER- ADQ inked a definitive agreement for the transaction in October with a Bank Audi-led consortium — which includes the International Finance Corporation (IFC), IFC FIG Investment Company Sàrl, and the European Bank for Reconstruction and Development.

#4- Masdar eyes more US acquisitions: Abu Dhabi-based renewable energy giant Masdar is set to ramp up its US operations with a target of 25 GW of renewable capacity in the next five years, Bloomberg reports citing Philip Haddad, president and CEO of Masdar Americas. The company aims for 100 GW of global renewable energy projects by 2030. Masdar plans to accelerate its US-based growth through acquisitions and pipeline project investments, including areas outside its recent acquisition of Terra-Gen’s current markets.

REMEMBER- Last year, Masdar signed an agreement to acquire a 50% stake in Terra-Gen Power Holdings, one of the largest independent renewable energy producers in the US. Terra-Gen, which has 4 GW of installed capacity — 70% of which is in California — is also developing an additional 12 GW across three states.

The company is also eyeing expansion into Latin America, with Haddad identifying Brazilian wind and solar projects as key acquisition targets.

#5- The Energy Ministry has plenty in its pipeline to boost energy efficiency: The Energy and Infrastructure Ministry is considering issuing green and sustainability certificates for government and commercial buildings, with a study underway to enhance energy and water efficiency, the ministry’s Under-Secretary for Energy and Petroleum Affairs Sharif Al Olama told Wam. The ministry is also preparing a tender to improve efficiency across over 400 government buildings and partnering with Aldar Properties, First Abu Dhabi Bank, and other specialized energy solution companies for a new pilot project focusing on energy efficiency improvements.

DATA POINTS-

Al Nowais’ Amea Power has invested about USD 2.5 bn so far in Africa across 20 countries, USD 2 bn of which being in Egypt alone, Chairman Hussain Al Nowais told CNBC Arabia (watch, runtime 5:39).

REMEMBER- Amea has big plans for Egypt which include setting up a USD 600 mn, 5 GW wind power project in the Gulf of Suez, set to be completed by 1Q 2026. It is also currently working on a 500 MW wind farm in Ras Ghareb, which is slated for completion by mid-2025, as well as a 1 GW solar power plant with a 600 MWh battery storage system in Benban, expected to be Africa’s largest.

What’s next? The energy firm plans to expand its investments in Asia, with two agreements recently inked for projects in Uzbekistan, Al Nowais said. In addition, it has plans to go public during the next two to three years, he added.

PSAs-

#1- Dubai launches One Mn Prompters initiative: The Dubai Center for Artificial Intelligence opened registration for the One Mn Prompters initiative, according to the Dubai Media Office. The program aims to train 1 mn people in AI and prompt engineering over the next three years.

#2- Dubai introduces Owners Committees: Dubai property owners residing in jointly-owned properties can now sign up for Owners Committees, a new initiative by the RERA to help manage residential communities, Wam reports. Committees will review budgets, prioritize maintenance, and give feedback on service plans.

How to sign up: Register via the Dubai Land Department website or Dubai REST app by 31 January. Requirements include residency, a valid UAE ID, a good conduct certificate, and cleared service fees. Priority goes to the first nine registrants, with results announced in February.

HAPPENING TODAY-

The Abu Dhabi Sustainability Week (ADSW) kicked off on Sunday and runs through to 18 January at the Abu Dhabi National Exhibition Center. The event features 11 events gathering policymakers, industry leaders, and youth to discuss global sustainability solutions and foster collaborations.

Among the biggest events of the week:

14-16 January (Tuesday-Thursday): World Future Energy Summit and Youth 4 Sustainability (Y4S) Forum and Hub.
15 January (Wednesday): Women in Sustainability, Environment, and Renewable Energy (WiSER) Forum.
16 January (Thursday): Green Hydrogen Summit and Zayed Sustainability Prize Forum & Investor Connect.

SteelFab is running until 16 January at the Expo Center in Sharjah. The event features global brands and exhibitors from 33 countries, focusing on steel fabrication technologies, including manufacturers from the UK, Germany, the US, China, and India.

It’s day three of the Dubai International Project Management Forum, which is running until Thursday at Madinat Jumeirah in Dubai. The event features contributions from experts in project management from various countries, with a focus on innovative approaches to project operations, risk management, and AI applications.

It’s the second day of the Light + Intelligent BuildingMiddleEast exhibition at the Dubai World Trade Center. The three-day lighting and building technology expo brings together industry experts and government bodies, with attendees from over 90 countries. It features the Thinklight Conference, the Smart Building Summit, the InSpotLight, and the Light Middle East Awards, among other events.

THE BIG STORY ABROAD-

As we inch closer to Trump once again taking office, US politics are dominating the international front pages.

Trump’s pick to run the Pentagon faces the Senate: Pete Hegseth — President-elect Donald Trump’s Secretary of Defense nominee — faced the Senate yesterday in a confirmation hearing that saw his lack of experience and controversial comments brought to light. Despite being grilled over his past actions, Hegseth appears to near Senate approval. (Reuters | CNBC | AP | FT)

The Los Angeles wildfires continued to make headlines, with strong winds expected to carry fire-sparking embers over the area, which has been enduring massive destructive fires over the past week. (AP | Reuters)

***

You’re reading EnterpriseAM UAE, your essential daily roundup of business, economics, and must-read news about the UAE, delivered straight to your inbox. We’re out Monday through Friday by 7am UAE time.

EnterpriseAM UAE is available without charge thanks to the generous support of our friends at Mashreq.

Were you forwarded this email? Tap or click here to get your own copy of EnterpriseAM UAE.

Want to send us a story idea, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on UAE@enterpriseAM.com .

DID YOU KNOW that we also cover Egypt, Saudi Arabia, and the MENA climate and logistics industries?

***

CIRCLE YOUR CALENDAR-

Nvidia RTX AI GameCraft will take place on 23 January at Emirates Towers Boulevard in Dubai. Hosted by the Dubai Future Foundation in collaboration with Nvidia GeForce Middle East, the event will gather game developers, students, and industry professionals to create innovative games using Nvidia’s RTX AI technology. Some 15 developers will make it to the finals to compete for the top three spots.

The Global Government Cloud Forum will take place on 21 January in the Museum of the Future in Dubai. The forum will see participation from government representatives, private sector organizations, think tanks, and international organizations, including the World Bank’s Cloud Computing Working Group. It includes keynotes, panel discussions, and workshops to facilitate collaboration and knowledge exchange pertaining to cloud-enabled public administration.

The International Conference on Pharma and Medicine will take place between 21-23 January at the Sharjah Research, Technology, and Innovation Park. The event offers a platform for potential collaboration in the pharma manufacturing and healthcare sectors.

The Sharjah Real Estate Exhibition (Acres) will take place between 22-25 January at the Expo Center in Sharjah. The event features networking and business prospects in the property sector, face-to-face discussions with developers and industry experts, and exploration of the latest trends in real estate.

BreakBulk Middle East will take place between 10-11 February at the Dubai World Trade Center. The event will gather over 7.5k professionals from the manufacturing, EPCs, project ownership, and transport sectors, providing ample networking prospects and driving potential customer leads.

The World Local Production Forum will take place between 7-9 April at the Abu Dhabi National Exhibition Center. The World Health Organization event will bring together global leaders to discuss sustainable local production and strategies to enhance access to quality health products.

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

Masdar unveils USD 6 bn mega solar and battery project in Abu Dhabi

Masdar announces USD 6 bn mega solar and battery project: State-owned renewables giant Masdar is planning a USD 6 bn solar and battery energy facility, combining 5.2 GW of solar capacity and 19 GWh of battery storage to provide 1GW of uninterrupted clean power, Masdar announced yesterday. The project is expected to be the one of the largest of its kind once operational in 2027, Bloomberg reports.

Project details: The facility, being set up alongside Emirates Water and Electricity Co, will span 90 sq km in the Abu Dhabi desert and will power over 500k homes once online. It will also help cut 5.7 mn tons of CO2 emissions a year and provide 10k new jobs.

Why it matters: The project tackles renewable energy’s intermittency challenge, delivering consistent power supply. “This will, for the first time ever, transform renewable energy into baseload energy,” Reuters cites Masdar Chairman Sultan Al Jaber as saying.

Addressing future demand: Al Jaber emphasized the urgency of expanding clean energy to meet surging global power demand, and predicted an increase of 250% by 2050 due to energy-intensive applications like AI-powered tools.

Global benchmarks: With 19 GWh of storage, the facility could surpass Nevada’s Gemini project, currently the largest solar-battery project in the world.

What’s next: The facility will be financed through a mix of debt and equity.

Dubai real estate market sees AED 116.5 bn in sales in 4Q 2024

Real estate sales in Dubai on the rise: Dubai’s real estate market saw AED 116.5 bn in sales from 46.8k transactions during the last quarter of 2024, recording a 31.1% rise in sales transaction values and a 51.8% rise in volume compared to the same period the year before, according to a Springfield Properties report (pdf). Quarter-on-quarter, the sector saw a 0.6% increase in values and a 0.5% drop in volume.

The breakdown: Ready properties accounted for 47% of sales (AED 54.8 bn), while off-plan sales made up the remaining 53% (AED 61.7 bn), supported by the “growing dominance of off-plan sales.”

The full-year picture: The emirate’s real estate market witnessed a strong year in 2024, with over 168k residential sales transactions — up 42.4% y-o-y — worth a combined AED 423.4 bn, according to Springfield’s report. Properties priced between AED 1 mn and AED 2 mn saw a 71% y-o-y demand increase, driven by mid-income buyers, according to a separate report from Emirates NBD

Off-plan takes the lion’s share: Off-plan units dominated 2024 sales with 114.5k transactions, making up 68% of total sales — a jump from 54% in 2023. Developers launched 142k new units, with Dubai’s population growth being a key catalyst for the real estate market.

Prices on the rise: Average apartment prices have surged 65% since December 2020, while villa and townhouse prices have more than doubled, underscoring Dubai’s appeal to luxury buyers.

Luxury and affordable hubs: Palm Jumeirah led the luxury market with the highest average sales price. Established areas like Downtown Dubai and Dubai Marina continued to attract global investors, while mid-income buyers favored emerging hotspots like JVC and Dubai South.

Adia acquires stake in Canada’s Innocap

Adia buys stake in Canada’s Innocap: The Abu Dhabi Investment Authority (Adia) has acquired a minority stake in Canada-based managed account services provider Innocap Investment Management, gradually increasing to 10% over the coming years, according to a statement. Once Adia reaches this benchmark, Mohammed Sghayer Khalaf Al Qubaisi, deputy director of Adia’s alternative investments department, will join Innocap’s board.

Utilizing Innocap’s services: Adia has selected Innocap to adopt its managed accounts platform for parts of its hedge fund and equity exposures.

That’s not all: Innocap has plans to open an office in Abu Dhabi later this year.

What this means for the UAE’s hedge fund ecosystem: The platform enables investors to allocate capital across multiple hedge funds with greater control and lower fees. The UAE has recently attracted global financial firms to Dubai and Abu Dhabi, including Pennsylvania-based Hamilton Lane, Hong Kong-based hedge fund Welwing Capital, tech-focused hedge fund Jetha Global, and New York-based law firm Skadden.

About Innocap: Innocap manages some USD 83 bn across 340 funds, serving institutional investors and hedge fund startups. Its shareholders include senior management, Caisse de dépôt et placement du Québec, BNY Mellon, Walter Global Asset Management, and BNP Paribas.

The story also got ink in Bloomberg.

AIM to acquire Fairmont The Palm Hotel for USD 325 mn

AIM to take over Fairmont The Palm Hotel: Arzan Financial Group’s subsidiary Arzan Investment Management (AIM) entered a binding agreement with Boursa Kuwait-listed IFA Hotels and Resorts to acquire Fairmont The Palm Hotel in Dubai for USD 325 mn, according to a press release. The transaction is subject to customary conditions and is expected to wrap up within months.

What’s next? AIM plans to capitalize on this investment to launch its GCC Hospitality Fund soon which will focus on the company’s integrated hospitality operations and institutional investment approach.

Remember: AIM acquired the Voco Bonnington Dubai hotel in 4Q 2024 and appointed United Hospitality Management as its franchise operator.

Meanwhile, IFA Hotels and Resorts will focus on other UAE projects, as it signed a AED 279.5 mn contract with UK-based Innovo Build Group in September to construct the Dorchester Collection’s Orla Infinity project in Dubai’s Palm Jumeirah.

About Arzan Investment Management: It is an alternative investment manager that invests in, develops, manages, and provides capital solutions for real estate and credit transactions.

IN OTHER M&A NEWS-

Taqa eyes stake in Germany's Uniper Energy: Abu Dhabi National Energy Company (Taqa) is reportedly among those interested in acquiring a stake in Uniper Energy, Germany's largest buyer of Russian gas, Bloomberg reports, citing unnamed sources familiar with the matter. Norwegian Equinor ASA is also in the running, with other potential bidders possibly emerging and could partner to split Uniper’s diverse assets, which include power plants across Europe and hydroelectric and nuclear assets in Sweden.

IN CONTEXT- The German government, which owns over 99% of Uniper valued at EUR 10 bn or more, is working with UBS Group AG and Roland Berger to reduce its stake to 25% + 1 share by the end of 2028, following its bailout agreement after the 2022 energy crisis. While a capital markets sale is the main option, Germany is also considering selling to a single buyer, a stock offering, or a re-IPO.

Uniper trades on the Frankfurt stock exchange with a market value of EUR 18 bn, though any sale may occur at a discount due to limited liquidity. Goldman Sachs is reportedly advising Uniper’s management board.

Gems Education is setting up Dubai's most expensive school with USD 100 mn investment

Gems Education to open the most expensive school in Dubai: Dubai-based private school operator Gems Education plans to open the Gems School of Research and Innovation in August 2025, with an investment ticket of USD 100 mn, according to a press release. The school is expected to become the most expensive in Dubai, with annual tuition fees reaching as high as USD 56k.

The details: The school will initially offer the British curriculum for Foundation Stage 1 through Year 6, with fees starting at AED 116k and increasing to AED 152k for Year 6. As the school expands to include grades 7 through 12, fees are projected to reach AED 206k (USD 56k), according to the school’s website.

The campus will span 47.6k sqm and feature a 600-seat auditorium, an Olympic-sized swimming pool, and a football field that can also serve as a helipad. Additional facilities will include robotics labs and engineering workshops, all aimed at attracting expatriate families relocating to Dubai.

In context: Expatriates constitute 90% of UAE residents, with over 80% of families allocating a significant portion of their income — often one-third — toward educational costs. The local education system is largely inaccessible to expatriate children, as many public schools are reserved for Emirati students.

ICYMI: Gems Education opened a branch of the Gems Founders School in the Dubai South Residential District last year, offering the British curriculum for students from Foundation Stage 1 to Year 8.

Shuaa Capital finance director steps down

Shuaa Capital’s finance director steps down: Dubai-based investment company Shuaa Capital announced the resignation of finance director Adnan Nur (Linkedin) for personal reasons, according to a disclosure (pdf) to the Dubai Financial Market. Nur will remain in his role for one month to ensure a smooth transition, while the company works on appointing a CFO. The new CFO is expected to be announced following the conclusion of Shuaa’s AED 425.5 mn convertible bond issuance scheduled for next month.

Marriott Marquis Dubai appointed Fredrik Reinisch (LinkedIn) as its new general manager, according to a press release. Reinisch previously served as general manager at The Dubai Edition and managed properties in Al Habtoor City and Habtoor Grand Resort.

AND- Steven Johnston (LinkedIn) steps in as entertainment officer at Marriott Marquis Dubai. With over 20 years of experience, Johnston was previously director of entertainment at Yas Plaza, Abu Dhabi, and head of programming at Gulf News Broadcasting.

Damac’s US investment is under the spotlight of the foreign press

It’s all about Damac’s US data center investment in the foreign press this morning, with Bloomberg looking into Damac founder Hussain Sajwani’s business portfolio and highlighting skepticism regarding his plans to fund the USD 20 bn project, mainly through debt. The newswire also shared industry experts’ views emphasizing that rolling out any data centers in the US will most likely be slow, starting with small investments. Meanwhile, the Financial Times shed the spotlight on Sajwani’s relationship with Donald Trump and his efforts to expand Damac’s operations throughout the years.

ASK Private opens up office in Dubai

FINANCE-

ASK Private Wealth sets up shop in Dubai: The private wealth management arm of Indian, Blackstone-backed ASK Asset & Wealth Management Group opened a new office in Dubai International Financial Center (DIFC) in a bid to lure Indian expats and international investors who are looking to invest in the South Asian nation, according to a statement from the DIFC. ASK Private Wealth will also offer global investment prospects to India-based investors.

Ambitious goals for Dubai: The company aims to generate a USD 1 bn investment portfolio out of Dubai over the next three years, Prateek Pant, market head for Middle East and Africa at ASK Wealth Advisors DIFC, told Bloomberg. The group, which has been active in Dubai’s asset management sector for over 20 years, currently handles between USD 300-400 mn in equity portfolio and real estate funds from the city, Pant explained.

STARTUPS-

#1- Catalyst, the region’s first cleantech startup accelerator, made three direct investments of undisclosed sums in startups, Wam reports. The investments were allocated to aed energy, a UK-based provider of optimized energy storage solutions, batsand, a Latvia-based supplier of carbon-free thermal energy, and Bulgaria-based Solumar, an emissions capture and innovative waste management solutions firm.

ALSO- On the sidelines of the World Future Energy Summit, Catalyst inked partnership agreements with:

State-backed sustainability firm Beeah to help identify high-potential startups and fund and mentor pilot projects, focusing on green mobility, waste management, and sustainable technologies;
Abu Dhabi’s tech startup ecosystem Hub71 to facilitate startups’ access to investors, mentors, and corporate partners;
Flat6Labs to provide expertise and resources to startups to help them scale up their operations.

Catalyst has just launched a new accelerator program with Flat6Labs, which saw it pick ten UAE and Egypt startups.

#2- Jingle Pay secures investment from Bank Alfalah: Pakistan's Bank Alfalah acquired a 9.9% stake in Dubai-based fintech startup Jingle Pay for an undisclosed sum, according to a press release. The investment will allow Jingle Pay to tap Bank Alfalah's infrastructure to enhance cross-border payment and digital banking solutions. Jingle Pay plans to roll out a digital banking app in Pakistan in 1Q 2025, targeting the unbanked segments.

About Jingle Pay: Founded in 2019 by Amir Fardghassemi (LinkedIn), Jingle Pay facilitates cross-border money transfers, with operations in the UAE, Bahrain, Pakistan, and Egypt. The company is backed by US-based MoneyGram, along with US venture capital firms.

MANUFACTURING-

NMDC Energy launches fabrication yard in Saudi Arabia: Abu Dhabi-based NMDC Energy inaugurated an AED 200 mn fabrication yard in Saudi Arabia’s Ras Al Khair Special Economic Zone, according to a disclosure (pdf). The facility has an annual production capacity of 40k tons and will focus on offshore facilities construction and onshore modular units assembly.

REMEMBER- NMDC Energy is scaling up its operations in the UAE, Saudi Arabia, India, and Taiwan, with plans to enter new markets in Europe, North and West Africa, and Southeast Asia.

REAL ESTATE-

Nakheel collaborates with six designers for Palm Jebel Ali villas: Dubai Holding Real Estate’s Nakheel partnered with six architecture firms to create 10 different designs for beachfront villas at its Palm Jebel Ali project, according to a press release. The six firms include Dubai-based Naga Architects and LW Design Group, US-based WATG, WhiteSpace Architects, and Loci Architecture, and South Africa-based SAOTA.

CRYPTO-

#1- Real-world asset investment marketplace Tokinvest received a full market license from Dubai’s Virtual Assets Regulatory Authority, making it the first company in the DMCC to do so, according to a press release. The license allows Tokinvest to operate as a virtual asset broker, serving retail and institutional investors from the emirate.

#2- ADQ leads USD 16 mn round for Paris-based crypto wallet startup: Abu Dhabi sovereign wealth fund ADQ led a USD 16 mn funding round for Paris-based cryptocurrency wallet technology firm Dfns, Bloomberg reports. The round also saw participation from Wintermute, Motive Partners, Bpifrance, and Motier Ventures, owner of Galeries Lafayette Group. Dfns, founded in 2020, counts Fidelity International, Zodia Custody, and Bridge among its clients. The company plans to use the funding to expand its workforce from 25 to 35 and enhance its role in the cryptocurrency ecosystem.

#3- Dubai-based Web3 venture capital firm Sigma Capital launched a USD 100 mn fund targeting early-stage investments in decentralized finance, blockchain infrastructure, asset tokenization, gaming, crypto venture funds, and the metaverse, according to a press release. The Sigma Capital Fund I aims to invest in 100 early-stage projects, 25 liquid tokens, and 10 fund-of-funds over the next three years.

TRANSPORT-

Masdar City kicks off trials for autonomous vehicles: Masdar City began testing self-driving vehicles in partnership with Solutions+ as part of its plan to deploy a sustainable transportation fleet, Wam reports. Vehicles from several global brands will be tested during this phase to select seven for final deployment.

LOGISTICS-

AD Ports and Semurg Invest to build grain terminal in Kazakhstan: AD Ports Group and Kazakhstan’s Semurg Invest will invest over USD 50 mn to develop the Sarzha Grain Terminal at Kuryk Port, Kazakhstan, according to a statement. The first phase, expected to complete in 2H 2026, will handle 570k tons of grain annually, with a planned expansion to 1.5 mn tons per year in phase two.

AD Ports is contributing USD 30 mn to the project and holds a 51% stake, with Semurg Invest owning the remaining 49%.

BANKING-

IFZA-registered businesses to have easy access to ADIB services: Dubai freezone community IFZA inked an MoU with Abu Dhabi Islamic Bank (ADIB) to facilitate access for its registered businesses to banking services, according to a press release. This includes account opening, financing options, and advisory support.

Sukuk market is set to maintain its momentum this year

The global sukuk market is expected to keep the ball rolling well into 2025, with global issuances forecast to hit USD 190-200 bn this year, despite the spillover of geopolitical volatility in key sukuk markets, according to a report by global ratings agency S&P Global. As global liquidity conditions improve, FCY-denominated sukuk are set to account for USD 70-80 bn of the total volume this year — compared to USD 72.7 bn in 2024. Sustainable sukuk are expected to contribute around USD 10-12 bn — a slight increase from USD 11.9 bn last year.

This forecast follows a solid 2024 for the global sukuk market, with sukuk issuances totaling USD 193 bn, slightly down from USD 197.8 bn in 2023 due to tighter liquidity and fiscal constraints in Turkey and Pakistan. Meanwhile, total FCY sukuk taken to market were up 29% y-o-y to USD 72.7 bn last year, primarily driven by an uptick in borrowing activity from the GCC region led by Saudi Arabia, Malaysia, and Indonesia.

Monetary easing + geopolitical stability support the outlook: S&P sees monetary easing continuing, supporting the financing needs of major sukuk issuers, particularly in the GCC where diversification away from oil revenues trigger an expansion in financing needs, according to S&P. This accompanied by a stabilizing macroeconomy and supportive liquidity conditions should encourage issuers to debut more offerings.

A roadblock may be ahead: The sukuk market could face a shake-up in the coming years, with the expected downside risks of the Sharia Standard 62 by the Accounting and Auditing Organization for Islamic Institutions (AAOIFI) forecasted to take shape next year. If implemented, the new standard — which would shift the focus from contractual obligations to underlying assets — could increase sukuk issuance costs and introduce additional risks for investors, the rating agency wrote.

Want to go deeper in all things sukuk? Our favorite Islamic finance podcast Majlis & Markets by Hassan Jivraj covered the broader sukuk topic extensively — including Shariah standards 59 & 62 — with S&P Global Ratings’ Global Head of Islamic Finance Mohamed Damak and AAOIFI Secretary General Omar Ansari in two separate episodes.

MARKETS THIS MORNING-

Asian markets were mostly in the green this morning, following Wall Street’s mixed performance on the back of moves on tech stocks. Japan’s Nikkei was up 0.4%, while Shanghai Composite was down 0.2% in early trading. Meanwhile, Wall Street futures are slightly in the green as investors anticipate US inflation report.

ADX	9498	+0.4% (YTD: +0.8%)
DFM	5246	+0.3% (YTD: +1.7%)
Nasdaq Dubai UAE20	4284	+0.4% (YTD: +2.9%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.2% o/n	4.3% 1 yr
TASI	12,173	+0.5% (YTD: +1.1%)
EGX30	28,967	+1.4% (YTD: -2.6%)
S&P 500	5843	+0.1% (YTD: -0.7%)
FTSE 100	8202	-0.3% (YTD: +0.4%)
Euro Stoxx 50	4980	+0.5% (YTD: +1.7%)
Brent crude	USD 79.92	-1.4%
Natural gas (Nymex)	USD 3.93	-0.9%
Gold	USD 2691.90	+0.5%
BTC	USD 96,534.40	+2.5% (YTD: +3.0%)

THE CLOSING BELL-

The DFM rose 0.3% yesterday on turnover of AED 685.5 mn. The index is up 1.7% YTD.

In the green: Aramex (+7.6%), Dubai National Ins. & Reins. (+4.7%), and Islamic Arab Ins. Company (+2.9%).

In the red: National Industries Group Holding (-10.0%), Shuaa Capital (-4.6%), and BHM Capital Financial Services (-1.8%).

Over on the ADX, the index rose 0.4% on turnover of AED 1.1 bn. Meanwhile, Nasdaq Dubai rose 0.4%.

The UAE seals a slew of key partnerships

UAE and New Zealand ink economic partnership for near-total duty-free trade, Wam reports. The agreement will see UAE imports granted 100% duty-free access to the New Zealand market and 98.5% of New Zealand’s exports to the UAE will be duty-free, rising to 99% within three years.

A first for New Zealand: The agreement is New Zealand’s first trade agreement with a Middle Eastern nation and covers indigenous trade, sustainable development, women’s economic empowerment, and transparency. The agreement is expected to boost trade between the two nations to USD 5 bn by 2032, tripling the five-year average trade of USD 1.5 bn from 2019-2023.

More partnership with Kenya ahead: President Sheikh Mohamed bin Zayed Al Nahyan inked a UAE-Kenya economic partnership agreement with Kenyan President William Ruto, aiming to deepen trade and investment ties, strengthen supply chains, and improve market access across the Middle East and Africa, Wam reports. The agreement targets fostering innovation and sustainability in agriculture, retail, healthcare, financial services, technology, and tourism sectors, as well as accelerating investment in ICT, banking, tourism, infrastructure, and renewable energy.

REMEMBER- The UAE is looking to double its economy to over USD 800 bn by 2030, with foreign trade playing a key role. UAE-Kenya non-oil trade reached USD 3.1 bn in 9M 2024, up 29.1% y-o-y.

UAE, Malaysia sign MoU on AI collaboration: The UAE and Malaysia inked an MoU to bolster joint investment in artificial intelligence, Wam reports. The MoU focuses on using AI and advanced data analytics in community safety, national security, and operational efficiencies. It outlines areas of technical cooperation, including the development of AI-powered national security systems, the establishment of high-performance computing and security operations centers, enhanced customs tax collection, and improved operational efficiencies.

IN OTHER DIPLOMACY NEWS-

The President also welcomed Azerbaijan’s President Ilham Aliyev during the latter's working visit to the UAE for Abu Dhabi Sustainability Week, Wam reports. The two sides discussed avenues for enhanced cooperation across economy, investment, renewable energy, climate action, and other key sectors.
UAE, Finland explore deeper ties: Sheikh Mohammed bin Rashid, Prime Minister and Ruler of Dubai, met his Finnish counterpart Petteri Orpo on Monday to discuss expanding cooperation across key sectors, including education, healthcare, renewable energy, AI, and space, state news agency Wam reports. Bin Rashid reaffirmed the UAE’s support for Finnish businesses operating in the country and encouraged more companies to use the UAE as a regional hub.
The Energy and Infrastructure Ministry inked an MoU with Uruguay's Industry, Energy, and Mining Ministry to establish a framework for both parties to share knowledge and expertise, conduct high-level discussions, and organize workshops in energy-related fields, Wam reports. The partnership aims to support the transition to clean and renewable energy and facilitate growth in diversifying energy sources for both countries.

CALENDAR

JANUARY

13-16 January (Monday-Thursday): SteelFab, Expo Center, Sharjah.

14-15 January (Tuesday-Wednesday): ADSW Summit, Abu Dhabi National Exhibition Center (ADNEC).

14-16 January (Tuesday-Thursday): Security Leader’s Summit 2025, Dubai World Trade Center

14-16 January (Tuesday-Thursday): World Future Energy Summit, Abu Dhabi National Exhibition Centre (ADNEC).

14-16 January (Tuesday-Thursday): Youth 4 Sustainability (Y4S) Forum and Hub, Abu Dhabi.

15 January (Wednesday): Women in Sustainability, Environment and Renewable Energy (WiSER) Forum, Abu Dhabi.

15-16 January (Wednesday-Thursday): iFX Expo, Dubai World Trade Center.

16 January (Thursday): Green Hydrogen Summit, Abu Dhabi.

16 January (Thursday): Zayed Sustainability Prize Forum & Investor Connect, Abu Dhabi.

13-16 January (Monday-Thursday): The Dubai International Project Management Forum, Madinat Jumeirah.

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

14-16 January (Tuesday-Thursday): The EcoWaste Exhibition and Forum, Abu Dhabi National Exhibition Center, Abu Dhabi.

14-16 January (Tuesday- Thursday): The Light + Intelligent Building Middle East exhibition, Dubai.

14-16 January (Tuesday- Thursday): Intersec, Dubai World Trade Center, Dubai.

19-24 January (Sunday-Friday): Coling2025, Abu Dhabi.

20-22 January (Monday-Wednesday): FESPA Middle East, Dubai World Trade Centre, Dubai.

20-22 January (Monday-Wednesday): The Fiber Connect Council Conference and Exhibition, Dubai World Trade Center, Dubai.

21 January (Tuesday): The Global Government Cloud Forum, the Museum of the Future, Dubai.

21-23 January (Tuesday-Thursday): The International Conference on Pharmacy and Medicine, The Sharjah Research, Technology, and Innovation Park, Sharjah.

23 January (Thursday): The Nvidia RTX GameCraft, Emirates Towers Boulevard, Dubai.

22-25 January (Wednesday-Saturday): The Sharjah Real Estate Exhibition (Acres), Expo Centre, Sharjah.

27-30 January (Monday-Thursday): Arab Health Exhibition, Dubai World Trade Centre, Dubai.

28-29 January (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

FEBRUARY

1-6 February (Saturday-Thursday): Dubai Fashion Week, Dubai Design District.

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.

3-6 February (Monday-Thursday): Medlab Middle East, Dubai World Trade Center.

7 February-29 April (Friday-Tuesday): The Abu Dhabi Festival, Abu Dhabi.

10-11 February (Monday-Tuesday) MRO Middle East and Aircraft Interiors Middle East, Dubai World Trade Center.

10-11 February (Monday-Tuesday): BreakBulk Middle East, the Dubai World Trade Center.

10-12 February (Monday-Wednesday): Japan Kyoto Trade Exhibition, Dubai Word Trade Center.

14 February (Friday): The deadline for the consultation period for the Securities and Commodities Authority's draft regulation on security tokens and commodity tokens.

16 February-1 March (Sunday-Saturday): Dubai Dutyfree Tennis Championships, Dubai Dutyfree Tennis Stadium in Al Garhoud.

16 February (Sunday): The International Defence Conference,The Emirates Palace, Abu Dhabi.

17-21 February (Monday-Friday): International Defence Exhibition (IDEX) in Abu Dhabi National Exhibition Center.

17-21 February (Monday-Friday): Naval Defence Exhibition (NAVDEX) in Abu Dhabi National Exhibition Center.

17-22 February (Monday-Saturday): Gulfood, Dubai World Trade Center.

19-21 February (Wednesday-Friday): International Dialogue of Civilizations & Tolerance Conference, Abu Dhabi Energy Centre.

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

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

28-29 February (Friday-Saturday): Investopia 2024, the St. Regis, Abu Dhabi.

28 February-29 March (Friday-Saturday): Ramadan.

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.

MARCH

18-19 March (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

31 March-2 April (Monday-Wednesday): Eid Al Fitr, national holiday.

APRIL

1 April (Tuesday): New ADGM employment regulations come into effect.

1 April (Tuesday): New personal status law comes into effect.

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

7-10 April (Monday-Thursday) : EFG Hermes One on One conference, Dubai.

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

7-9 April (Monday-Wednesday): Middle East Energy, Dubai World Trade Center.

7-9 April (Monday-Wednesday): World Local Production Forum's 3rd edition, Abu Dhabi National Exhibition Center.

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

14-16 April (Monday-Wednesday): IPS congress, Dubai World Trade Center.

16-18 April (Wednesday-Friday): World Future Energy Summit,Abu Dhabi National Exhibition, Abu Dhabi.

21-25 April (Monday-Friday): The Dubai AI Week, Museum of the Future and Area 2071, Emirates Towers, Dubai.

25 April-11 May (Friday-Sunday): Dubai Esports and Games Festival, Dubai World Trade Center.

28 April-1 May (Monday-Thursday): The Arabian Travel Market, Dubai World Trade Center

Signposted to happen sometime in April:

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

MAY

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

6-7 May (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

13-16 May (Tuesday-Friday): International Union for Health Promotion and Education Conference, Abu Dhabi.

13-15 May (Tuesday-Thursday): Cabsat Middle East and Satellite Middle East, Dubai World Trade Center.

15 May (Thursday): The Economy Middle East Summit, ADGM, Abu Dhabi.

16-18 May (Friday-Sunday): GISEC, Dubai World Trade Center.

19-22 May (Monday-Thursday): Make it in the Emirates, Adnec, Abu Dhabi.

20-22 May (Tuesday-Thursday): Seamless Middle East 2025, Dubai World Trade Center.

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

30 May (Friday): Arafat Day.

31 May-2 June (Saturday-Monday): Eid Al Adha.

Signposted to happen sometime in May:

Asean and GCC summit, Malaysia.

JUNE

17-18 June (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

24-25 June (Tuesday-Wednesday): Middle East Rail, Dubai World Trade Center.

27 June (Friday): Islamic New Year.

Signposted to happen sometime in 2H 2025:

Closing of XRG's acquisition of Covestro

JULY

29-30 July (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

SEPTEMBER

8-10 September (Monday-Wednesday): DigiHealth exhibition, World Trade Center, Dubai.

16-17 September (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

24-25 September (Wednesday-Thursday): Mohammed Bin Rashid Leadership Forum, Mohammed Bin Rashid Center for Leadership Development, Dubai.

OCTOBER

3-16 October (Friday-Thursday): Dubai Home Festival.

9-15 October (Thursday-Wednesday): IUCN World Conservation Congress, Abu Dhabi.

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

28-29 October (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

NOVEMBER

18-19 November (Tuesday-Wednesday): Dubai Future Forum, Museum of the Future, Dubai.

DECEMBER

1-3 December (Monday-Wednesday): Eid Al Etihad (UAE National Day).

1-5 December (Monday-Friday): The World Congress of Neurosurgery, Dubai World Trade Center.

9-10 December (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

Signposted to happen sometime in 2025:

The Middle East Electric Vehicle Show, Expo Center Sharjah.
e& will complete Adnoc’s private 5G network.
Executive Committee Meeting (EXCOM 2025) conference of the World Smart Sustainable Cities Organisation (WeGO)
The International Civil Aviation Organization’s Global Implementation Support Symposium, Abu Dhabi.
Universal Postal Congress 2025, Dubai.

Signposted to happen sometime in the fall of 2025:

2025 Games of the Future, Dubai.
ICOM General Conference 2025, Dubai

Signposted to happen sometime in 2026:

The UAE to host the Arab Competition Forum
Dubai to host the Arab Actuarial Conference
United Nations Water Conference 2026, UAE
9-11 January (Friday-Sunday): 1 Bn Followers Summit’s fourth edition, UAE

Sections

About

Privacy & Support

Get EnterpriseAM daily