Microsoft invests big in G42

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Torrential rains the likes of which have not been seen in 75 years hit the country yesterday

Good morning, wonderful people. We hope you’ve all stayed safe during the storm, which has caused the heaviest rainfall the country has seen in 75 years, with a year’s worth of rain falling over the country in a single day.

** DID YOU EXPERIENCE POWER OUTAGES OR FLOODING? Many have reported damage and flooding inside their homes, while others have reported power outages because of the storm. Several reports on X have also shown flooding and other instances of property damage from the torrential rain — including one viral video of patio furniture flying out of a building (watch, runtime: 0:05) and intense flooding and damage inside Mall of the Emirates and a conference in festival city.

Plenty of photos and videos also showed severe road damage, including a road in Al Ain that collapsed due to the rain (watch, runtime: 0:44).

Dubai International Airport had to suspend operations for 25 minutes yesterday after flooding affected runways (see: another viral video). More than 50 flights were canceled yesterday, with all inbound travel diverted until weather conditions improve, according to France24..

The National Meteorological Office issued a red alert and warned of “hazardous weather events of exceptional severity,” on X yesterday.

Is cloud seeding to blame? Bloomberg also has coverage of the impact of the storm, noting that it is linked in part to recent cloud seeding operations, with seeding planes sent from Al Ain airport to exploit convective cloud formations. Seeding planes flew seven missions over the past two days, special meteorologist Ahmed Habib told the business information service.

“For any cloud that’s suitable over the UAE you make the operation,” he said.

SOUND SMART-Cloud seeding is infusing clouds with substances that help water molecules stick together (like silver iodide) either by spraying it from a plane or shooting it up from the ground.

The storm also hit Oman, where 18 people died due to the adverse weather conditions, with people missing, France24 reports. It is also set to hit Saudi Arabia today.

The Asian Football Confederation postponed the first leg of the Asian Champions League semifinal between Al Ain and Al Hilal to today due to the downpour. The game is now scheduled for Wednesday at 8pm local time at Abu Dhabi’s Hazza bin Zayed Stadium. The second leg will take place next Tuesday as scheduled. The Associated Press and Reuters picked up the story.

Also postponed: The Middle East Energy Exhibition, which was set to kick off yesterday, but will instead start today and run until Friday, 19 April due to adverse weather conditions, the organizers said on LinkedIn. The event, organized by the Energy and Infrastructure Ministry, will feature over 1.5k exhibitors focused on energy security and sustainability solutions.

It’s not over yet, so stay safe and stay home if you can: We’re still in for more rain today, along with another wave of thunderstorms and a chance of hail in some areas, the National Center for Meteorology forecasts, cautioning residents to stay home today and avoid rainfall areas. The Emirates School Education Foundation has directed all schools across the country to switch to remote learning today due to the unstable weather. Dubai government employees will also continue working remotely as the government has extended the remote working period for today.

Despite the country basically halting to a standstill, the news cycle remained healthy as ever, with massive news on the AI front leading the morning’s news well: Microsoft is investing USD 1.5 bn in state AI company G42.

Also worth your time this morning: Spinneys is moving forward with an IPO of a 25% stake on the DFM; the IMF revised downwards its forecast for the UAE’s GDP growth this year; and Abu Dhabi wealth fund ADQ is set to acquire a 49% stake in Alpha Dhabi’s construction unit.

PUBLIC SERVICE ANNOUNCEMENTS-

You will now be able to access all Abu Dhabi Housing Authority services through the newly launched Iskan Abu Dhabi smart app, Wam reports. The platform allows access to housing services, including loans, grants, land exchanges, and purchases, eliminating the need for physical visits to service centers.

WATCH THIS SPACE-

#1-Masdar City has projects worth a combined AED 3-4 bn currently in the design phase, CEO Ahmed Baghoum said at the World Energy Summit, Wam reports. These initiatives target critical sectors such as energy, artificial intelligence, space, life sciences, and agriculture. The total value of projects under construction currently, including the Masdar City Complex and “The Link,” stands at approximately AED 1 bn, according to Baghoum.

#2- Johnson talks up UAE-UK cooperation on climate tech: The UAE and UK have plenty of space to cooperate on battery technology, AI, and nuclear energy, former British Prime Minister Boris Johnson said during his speech at Masdar’s Green Hydrogen Summit, The National reports. “Innovation requires countries like the UAE and the UK to work ever more closely together,” Johnson is quoted as saying.

The two countries can also cooperate on small modular reactors (SMRs), “like the type made by Rolls-Royce.” SMRs offer one third the capacity of traditional reactors with reduced upfront costs and flexible siting options.

HAPPENING TODAY-

#1-It’s day two of the World Future Energy Summit in Abu Dhabi. The three-day summit aims to discuss solutions for development in the transformation of future energy systems, and features discussions on recycling, waste-to-energy, and air-to-water trends and progressions.

#3- The 2024 spring meetings of the World Bank and the International Monetary Fund (IMF) continue today and run until Saturday, 20 April, in Washington, DC. You can check out today’s schedule here.

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

#4- The government-organized AI summit Machines Can See kicks off today 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. Speakers include AI Minister Omar Al Olama, and heads of AI departments at companies ranging from Core42 to Nvidia, IBM, Oracle, and Google Cloud.

HAPPENING TOMORROW-

Token2049 is taking place tomorrow 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.

THE BIG STORY ABROAD-

Strap yourselves in, folks: It’s shaping up to be a very busy day for business news in our region and around the world.

#1- Are we in the “Tepid Twenties”? That was the warning from IMF chief Kristalina Georgieva to officials and businesses around the world as we headed into this week’s IMF and World Bank spring meetings. It’s only by driving growth, harnessing AI, and dealing with climate change that we can turn them into the “Transformational Twenties,” she said.

Her caution runs through the latest update to the IMF’s World Economic Outlook, which shares top billing on this morning’s front pages (Bloomberg | CNBC) with Jay Powell’s remarks on interest rates (below).

The global economy will grow by 3.2% in this year and next — on par with last year — the IMF writes in the WEO. That’s essentially the midpoint between the really slow growth we saw in the 2010s and the rapid growth we saw in the early years of this decade during the freemoney era. (We have more on the WEO’s outlook for the UAE in this morning’s news well, below.)

The tent poles: The US economy will grow at a 2.7% clip, faster than most advanced economies, while China’s GDP will expand at a 4.6% clip, unchanged from last year.

A flashing red light: “Progress toward inflation targets has somewhat stalled since the beginning of the year,” IMF chief economist Pierre-Olivier Gourinchas said at a news conference on the WEO yesterday.

#2- Enter Jay Powell, who “dialed back expectations of a [US] rate cut” in remarks that “called into question whether the Federal Reserve will be able to lower interest rates this year without signs of an unexpected economic slowdown,” the Wall Street Journal reports. His worry: Inflation in the first quarter was higher than he’d have liked. Powell’s remarks also lead the front page of the Financial Times.

ALSO MAKING HEADLINES THIS MORNING:

#3- In geopolitics: We’re still waiting for Israel’s next move on Iran after Tel Aviv’s war cabinet yesterday postponed its meeting to today.

The hope in Western policymaking circles: That a basket of new sanctions on Iran might convince Israel not to retaliate for Iran’s drone and missile attack overnight Sunday (itself retaliation for an unprecedented attack by Israel on Iran’s embassy in Syria).

#4- In business: Andreessen Horowitz has raised USD 7.2 bn to invest in AI-anchored companies, the firm said in a note yesterday. The high-profile VC’s fund is among the biggest to close since the downturn in the VC “ecosystem” began a couple of years back.

Big themes for the fund: Infrastructure, growth, games, apps, and “American dynamism” (don’t get us started).

Microsoft to invest USD 1.5 bn in G42

US tech giant Microsoft plans to invest USD 1.5 bn in International Holding Company-backed tech and AI group G42 to help boost its global expansion plans and promote the UAE’s position as “a global AI hub,” according to statements from G42 and Microsoft. The investment will give Microsoft President Brad Smith a seat on G42’s board.

The details: Under the agreement, Microsoft will hold an unspecified minority stake in G42, while G42 will use Microsoft’s cloud platform, Azure, to run its AI platforms and services and deliver advanced AI services to its public and private sector customers. At a later stage, Microsoft will be able to host some of its applications in G42’s data centers to expand its customer outreach to Africa and Central Asia, Bloomberg reports, citing Smith.

The two firms will also jointly set up a USD 1 bn fund to support AI developers, geared at strengthening the AI infrastructure and capabilities in the UAE and the wider MENA region. No further details were provided on the fund.

Expanding an existing friendship: The companies revealed a partnership last September to jointly develop cloud services and expand Microsoft’s data center infrastructure in the UAE. Additionally, the companies inked an MoU in April 2023 to explore the development of customized cloud solutions.

What they said: “Through Microsoft’s strategic investment, we are advancing our mission to deliver cutting-edge AI technologies at scale. This partnership significantly enhances our international market presence, combining G42’s unique AI capabilities with Microsoft’s robust global infrastructure. Together, we are not only expanding our operational horizons but also setting new industry standards for innovation,” G42 CEO Peng Xiao said.

The agreement could speed up global AI deployment: “There are markets today where Microsoft and really no American technology company has a real data center presence. This is the kind of partnership that can really bring the cloud and AI to the global south probably a decade faster than would otherwise be the case,” Smith told Bloomberg.

Both gov’ts gave the all-clear on the agreement: Backed by the US and UAE governments, the investment is the outcome of a “first-of- its-kind binding agreement to apply world-class best practices to ensure the secure, trusted, and responsible development and deployment of AI,” Microsoft said. The two governments consulted on the Intergovernmental Assurance Agreement (IGAA) between G42 and Microsoft, specifically drafted for the transaction.

G42 is delivering on its promise to expand in western markets, “from Israel to Germany, to the UK and US,” Xiao told Bloomberg in February, saying that the company has been pursuing a “commercial strategy since 2022 to fully align with our US partners and not to engage with Chinese companies.”

REMEMBER- G42 had offloaded all its stakes in Chinese businesses in a bid to reportedly appease US partners, including a USD 100 mn stake in TikTok parent company ByteDance. The company’s CEO Peng Xiao had vowed to phase out its stakes in Chinese hardware suppliers in statements to the FT last December. A Bloomberg report out yesterday claims that G42 held private talks with the US Commerce Department’s Bureau Industry and Security for G42 to scale down its investments in Chinese businesses, which ultimately paved the way for Microsoft’s investment.

G42 could back away even more from China, including giving up its use of Huawei telecom equipment, which Washington “fears could provide a backdoor for the Chinese intelligence agencies,” according to the New York Times.

Spinneys plans to sell 25% stake in DFM IPO, and expand into KSA in 1H 2024

Supermarket chain Spinneys Dubai is planning to offer up to a 25% stake in an IPO on the DFM,according to the prospectus (pdf) and intention to float (pdf) published yesterday. Al Seer Group will be selling 900 mn of its shares in the IPO, according to the statement. The IPO will be among the first by a family-owned business in the UAE. The business is owned by the Albwardy family.

Background: News of Spinneys listing on the Dubai bourse first broke back in September 2023, when it invited banks to pitch for roles in the offering and reportedly hired Rothschild & Co to advise on the IPO. Sources had said the supermarket chain could list up to 30% of its shares on the DFM in 2Q 2024.

The book-building process starts next Tuesday, 23 April, with the subscription period for retail investors concluding on 29 April. Institutional investors’ subscription period will wrap a day later on 30 April. 95% of the shares on offer will be allocated to institutional investors, while 5% will go to retail investors.

Shares are expected to begin trading on 9 May, according to the prospectus.

The supermarket chain is expanding into the KSA for the first time: Spinneys plans to inaugurate a store in Saudi Arabia in 1H 2024 to fuel growth, it said in its intention to float. It plans to open another three by the end of the year and at least four new stores in the Kingdom every year for the next five to 10 years, CEO Sunil Kumar told Bloomberg.

Fast facts: Spinneys’ first ever store was established in Alexandria, Egypt, in 1924, by Arthur Spinney. It later established its presence in the UAE in the 1960s, before expanding into Oman in 2003 with the operation of Al Fair. It also brought Waitrose into the UAE in 2008. While the Spinneys brand name is also used in Egypt, Lebanon, Syria, and Iraq, this is merely through trademark licensing agreements inked with Spinneys Dubai.

It also has plans to launch a new e-commerce platform dubbed Spinneys Swift this year, as well as a new dining concept it will call “The Kitchen, by Spinneys,” it said.

First glimpse into Spinneys’ earnings: Spinneys saw its bottom line increase 18.7% y-o-y to AED 254 mn in 2023, while revenues grew to AED 2.87 bn, according to the disclosure. The company plans to maintain a 70% dividend payout ratio every year, it said, adding that it will be paying them on a semi-annual basis in April and October of each year.

Not the only hypermarket listing in the UAE expected this year: Supermarket chain operator LuLu Group International also reportedly tapped Abu Dhabi Commercial Bank, Citigroup, Emirates NBD, and HSBC Holdings last month to work on its planned IPO on the ADX this year. The offering could raise as much as USD 2 bn, and is expected to happen in 2H 2024.

And we have a bigger pipeline of IPOs: At least four other companies have expressed plans to move forward with IPOs this year, including edtech firm Alef Education, which has also already tapped banks to advise on their transactions. Talk of Etihad Airways potentially tapping public markets also gained traction, while Amanat Holdings is also reportedly looking to list its healthcare unit, and shisha producer Advanced Inhalation Rituals is also eyeing an IPO in 1H 2024.

REMEMBER- The country’s first IPO of the year saw Dubai’s Parkin raise some AED 1.57 bn in a blockbuster listing on the DFM that saw 165x oversubscription back in March.

Advisors: HSBC Holdings and EFG Hermes are acting as joint lead managers and joint bookrunners alongside Emirates NBD, which is the listing advisor and lead receiving bank of the IPO. Al Maryah Community Bank, Commercial Bank of Dubai, First Abu Dhabi Bank and Wio Bank are also acting as receiving banks, while Emirates NBD Capital, Merrill Lynch International and HSBC Bank Middle East are joint coordinators and bookrunners. Rothschild & Co is acting as independent financial advisor.

IMF revises downwards its forecast for the UAE’s GDP growth to 3.5% in 2024

The IMF has revised downward its 2024 growth forecast for the UAE to 3.5% in its latest World Economic Update report (pdf). The Fund had penciled in 4.0% growth for 2024 in the October edition of the report (pdf). The Fund also estimates the UAE’s economy to grow at a 4.2% clip in 2025.

The Fund’s projections are slightly lower than others: The World Bank and Economy Ministry both estimated the UAE’s growth to reach 3.9% in 2024. Oxford Economics, meanwhile, projects the economy will grow at 4.4%.

INFLATION-

The IMF predicts a 2.1% rise in consumer prices in 2024 from 1.6% in 2023. This is a slight downward revision from the 2.3% annual inflation rate the Fund had forecasted for 2024 back in October. The report also sees inflation decelerating slightly to 2.0% in 2025.

How this compares: The Economy Ministry expects inflation to decelerate in 2024 to 2%, down from 3.4% in 2023. The Central Bank of the UAE recently revised upward its 2024 inflation projection to 2.5%, up from the previously projected 2.1%.

FISCAL PERFORMANCE-

The Fund expects the UAE’s current account balance-to-GDP ratio to come in at 7.8% this year — just a notch above the 7.7% that was projected in October. This figure will fall further to 6.9% in 2025, according to the report.

THE REGIONAL OUTLOOK-

Growth in the MENA region is expected to pick up pace, with projections rising from 2.0% in 2023 to 2.8% in 2024 and 4.2% in 2025, according to the Fund. However, a slight downward revision of 0.1 percentage point for 2024 reflects lower non-oil activity and oil revenues, particularly in Iran.

ADQ to acquire 49% Stake in Alpha Dhabi Construction Holding

Abu Dhabi wealth fund ADQ plans to acquire a 49% stake in Alpha Dhabi Holding’s construction unit, Alpha Dhabi Construction Holding (ADCH), according to a press release (pdf). Alpha Dhabi Holding will retain the remaining 51% stake in ADCH. The move aims to “combine the expertise and capabilities of ADCH and ADQ,” the statement said.

What they said: “With a shared vision for excellence, this collaboration allows us to deepen our commitment to national development, enabling us to tackle complex, large-scale projects with a keen focus on safety, quality, and timely delivery,” CEO and Managing Director of Alpha Dhabi Holding and Chairman of ADCH Hamad Al Ameri said.

Construction is a big market, and ADCH is a big player: The UAE construction market is estimated at USD 41 bn in 2024, according to the statement, and is projected to surpass USD 50 bn by 2029. In Abu Dhabi, the industry grew 14.3% y-o-y in 3Q 2023, adding AED 25 bn to the emirate’s GDP during the quarter. ADCH played a significant role in projects such as the Zayed National Museum and the Guggenheim Museum, as well as contributing to essential infrastructure such as the national railway. ADCH also takes on residential projects for local developers such as Aldar, Modon Properties, and Emaar.

Market reax: ADHC's shares on the ADX fell 3.1% to AED 15.2 apiece yesterday, according to ADX data.

Taqa in talks for potential takeover of Naturgy

Abu Dhabi National Energy Company (Taqa) is reportedly in discussions with Naturgy’s three largest shareholders about a potential takeover of the Spanish energy player, Cinco Dias reports, citing market sources. Spanish holding company Criteria — Naturgy’s biggest shareholder — said it is negotiating with an unnamed investor group that has in turn been talking with some of Naturgy’s major shareholders about a potential “partnership agreement,” according to Reuters. However, Criteria said it is not part of the talks between the investor group and other Naturgy shareholders.

Who owns what: Criteria holds a 26.7% stake in Naturgy, making it the energy company’s largest shareholder. Private equity investment funds CVC Advisers and Global Infrastructure Partners (GIP) each hold a little over 20% in the company.

What TAQA could be getting: Adnoc’s renewable energy subsidiary has reportedly been in talks to acquire 40% in Naturgy, but could be required to launch a mandatory tender offer (MTO) for 100% of the company, according to Cinco Dias. Spanish law dictates that any offer to buy more than 30% of a company automatically triggers an MTO requirement.

Digital assets fund Liquid Triton establishes its global HQ in Abu Dhabi

Recently-established digital assets hedge fund Liquid Triton has established its global headquarters in Abu Dhabi, with the Abu Dhabi Global Market (ADGM) granting the US-based fund in-principle approval for a Financial Services Permission (FSP), ADGM said in a press release. Currently managing assets worth USD 43 mn, Liquid Triton aims to raise an additional USD 50 mn in capital this year, founder Chris Keshian told Zawya.

Abu Dhabi marks the company’s inaugural expansion destination: “It will be one of the three jurisdictions along with Hong Kong and Singapore that capture the lion’s share of entrepreneurs and people and funds who want this to see this become a real asset class,” Keshian told Zawya, pointing to the UAE’s status as an emerging global crypto hub with progressive regulations in place.

Liquid Triton employs the “liquid venture capital” model for digital asset investments, aiming to blend venture-style returns with a shorter investment time horizon and continuous liquidity, similar to traditional stock markets, according to the company’s website. New York-based VC FJ Lab provided Liquid Triton USD 30 mn in seed funding back in 2022.

OTHER ADGM NEWS-

#1- Core banking provider Tuum sets up Abu Dhabi regional office: Estonian core banking provider Tuum has established its regional headquarters at Abu Dhabi Global Market to expand and manage its operations in the Middle East, the firm said in a statement. The move comes after the company raised EUR 25 mn in a funding round in February, aimed at growing its market presence in the region.

Tuum’s core banking services allow fintech firms and banks to digitize their systems through its cloud-based core banking platform.

#2- Marketing and communications agency Prosek Partners has opened a regional office at the Abu Dhabi Global Market, to “expand its global presence,” according to a company statement. Operations will be led by Diana Estupinan.

Credit demand was strong in 4Q 2023

Credit demand stayed robust in 4Q 2023, buoyed by accelerated economic growth and growing confidence among consumers and business, according to the CBUAE’s latest 4Q 2023 Credit Sentiment Survey report (pdf). The survey is based on responses from 70 licensed financial institutions in the UAE — 58 banks and 12 finance companies.

The impact of high interest rates on demand for loans has begun to wane as certain benchmark lending rates began to decline towards the end of 4Q, according to the report. Higher interest rates weighed marginally on businesses, yet personal loan demand remained unaffected.

Demand for business loans increased during 2H 2023 across all of the UAE, especially Abu Dhabi, with 57.6% of respondents reporting an uptick, the report reads. The construction, manufacturing, retail, and property development sectors led demand, with large firms leading demand for conventional loans. Demand for Islamic loans showed slower growth compared to other categories, according to the report.

Appetite for business loans is expected to remain robust into 1Q 2024, particularly in retail, construction, property development, manufacturing, transport, communications, and energy.

Personal loans saw a steady increase in demand during 4Q 2023, though at a slightly slower pace than previous periods, with Abu Dhabi leading the growth among all emirates according to the report. Loan demand was particularly prominent across housing, investment credit cards, and car loans, with customers showing a preference for traditional lending instruments over their Sharia-compliant equivalents.

Banks had an increased appetite for extending personal loans, driven mainly by a stable economic outlook, borrower creditworthiness, competition among banks, and ongoing regulatory adjustments. While loan terms remained stable, there was a slight uptick in premiums for riskier loans and minor adjustments in non-interest fees and maximum loan-to-value ratios, the report reads. Appetite is expected to remain robust into 1Q 2024, especially across the credit cards, housing, and car loans segments.

ICYMI- Emirati banks turned in high returns in 2023, fueled by minimal loan loss provisions, augmented interest margins, and high deposit rates that outperformed lending. S&P Global expects banks to see their bottom lines narrow slightly as the US Federal Reserve ends its monetary tightening cycle and begins to cut interest rates, leading to lower interest rate margins. GCC banks on the whole are expected to experience slightly slower credit growth this year, moderating due to an unfavorable base effect and heightened lending caution, S&P Global said previously.

Dubai luxury home sales cross USD 1.73 bn in 1Q 2024

Some 105 homes priced over USD 10 mn were sold in Dubai in 1Q 2024, marking a 19% y-o-y increase, according to global property consultant Knight Frank’s latest analysis. Luxury home sales pooled a value of over USD 1.73 bn during the quarter, up 6% y-o-y.

Reason behind the surge: Growth was driven by heightened buyer interest from “international high-net-worth individuals vying for the city’s most expensive homes” and reduced supply, with the volume of for-sale homes priced above USD 10 mn in Dubai narrowing by 59% y-o-y to 864 homes in 1Q 2024, says Knight Frank partner and MENA head of research, Faisal Durrani.

Some 36.3% of the market share was dominated by Palm Jumeirah, which recorded sales worth USD 628 mn in 1Q 2024. Jumeirah Bay Island had the second largest presence in the luxury market, accounting for 11.1% of the market share, followed by Dubai Hills Estate, which made up 7%. Palm Jumeirah sold the most luxury estates during the quarter, handing over 39 high-end homes, followed by Palm Jebel Ali and Business Bay, which saw 10 and 7 luxury homes sold.

Sales went up, as did prices: Prime residential prices in the emirate inflated 26.3% y-o-y over the past year, with prices in Dubai Hills Estate rising by nearly 11% y-o-y. The number of available homes for purchase in Dubai Hills Estate, on the other hand, fell 75% y-o-y to just 1k units.

ICYMI #1- The emirate witnessed a 16.3% y-o-y increase in prime residential values in FY2023, and a hulking 44.4% y-o-y increase in 2022. Knight Frank ranked Dubai’s luxury segment second globally in terms of price increases in 2023, recording a 15.9% y-o-y increase owing to the emirate’s ability to appeal to the international elite.

Looking up: “Dubai’s luxury homes market still remains one of the most affordable in the world,” with USD 1 mn snagging investors some 980 sqft of prime residential space in Dubai, compared to less than 37.2 sqm in global city hubs such as New York, London, and Monaco, Durrani adds. The comparative difference hints that sale activity in the emirate’s luxury property market will sustain momentum despite the unprecedented increase in price.

OTHER REAL ESTATE NEWS-

Arada hands out construction contracts worth AED 615 mn: Sharjah-based property developer Arada awarded two construction contracts valued at AED 615 mn to Saleh Construction and Yanal Building Contracting Company for Azalea, the fourth phase of its Masaar forested master community in Sharjah’s Suyoh district, it said in a statement. The contractors will build all 565 homes in the residential development, with Saleh constructing 324 homes and Yanal taking on 241 homes. Construction for the project will commence immediately, with the handover slated for the end of next year.

Refresher: Inaugurated in 2021, Masaar is Arada’s best-performing project, collecting AED 3.64 bn in sales in 2023. The project is valued at AED 9.5 bn and houses 3k villas and townhouses across 6 phases, in addition to a green spine of some 70k trees.

How it’s going: The project wrapped its first phase in 2023 with 430 homes built. Over 1.5k homes in the second, third, and fourth phases of Masaar are currently under construction, with the remaining two project phases to be awarded in 2Q 2024. The entire project is expected to go live by the end of 2026.

GDA Capital invests USD 850k in web3 tech company U-Topia

Web3 tech company U-Topia raised USD 850k from digital asset investment firm GDA Capital as a follow-on investment, according to a press release. GDA Capital executives will provide strategic advice to U-Topia as part of the agreement, the statement reads.

Where the money’s going: U-Topia will use the funds “to develop cutting-edge features and technologies within the U-topia platform, thus enhancing its capabilities and reinforcing its position as a pioneering force at the intersection of the IP and blockchain industries.” The new developments are geared towards helping the company expand internationally, according to the release.

About U-Topia: Based in the UAE, the company was founded in 2021 by Jérémy Mahieu and Nicolas Prévost. U-Topia bills itself as an entertainment company that is “disrupting traditional IP licensing models.” The company taps into intellectual property from Web2 — including GameFi, video games, and content from professional sporting teams — that is “integrated into gamified entertainment products, including video games, music, and movies.”

Hikma gets new generics president + Emirates Airlines shuffles leadership positions across operations, and Suqia forms board of trustees

Nasdaq Dubai-listed Hikma Pharma has appointed Hafrun Fridriksdottir (LinkedIn) as president of its generics business, according to a statement. Fridriksdottir has over 25 years of experience in the pharma industry, including holding senior executive and research and development positions at global pharma companies. Fridriksdottir succeeds Brian Hoffmann (LinkedIn), who will leave the London-headquartered pharma company on 1 May.

Emirates Airlines shuffled several leadership positions across its commercial operations team across Europe, Africa, and East Asia, according to a press release:

Mohammed Al Qasim (LinkedIn), currently the Airlines Manager in Cyprus, will assume the same position of manager in Cambodia.
Ahmed Tamim (LinkedIn), currently the Airlines Manager in the Ivory Coast, will take over from Al Qasim in Cyprus.
Adnan Al Marzouqi (LinkedIn), currently the director of commercial operations in South Africa, will take over from Tamim in the Ivory Coast.
Mohammed Tahir (LinkedIn), currently the Director of Commercial Operations in Egypt, will assume the position of Emirates Airlines Manager in Uganda.
Sultan Al Riyami (LinkedIn), currently Airlines Manager in Taiwan, will assume the same position in Hong Kong.
Nasser Bahlooq, currently the Airlines Manager in Hong Kong, will assume the same position in Taiwan.

Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum has formed the Board of Trustees for the UAE Water Aid Foundation (Suqia), according to the Dubai Media Office. Chaired by the CEO of the Dubai Electricity and Water Authority (DEWA), the board includes representatives from the Foreign Ministry, the Emirates Red Crescent, United Arab Emirates University, Khalifa University, and DEWA, along with Suqia's CEO.

PureHealth, Seha, and Cincinnati Children's Hospital Medical Center to establish a pediatric center in Abu Dhabi

HEALTHCARE-

PureHealth and subsidiary Seha joined forces with Cincinnati Children's Hospital Medical Center to establish a pediatric center in Abu Dhabi, according to an Abu Dhabi Media Office statement. This initiative comes after approval from Sheikh Khaled bin Mohamed bin Zayed Al Nahyan to establish a specialized medical hub for women and children's health. The center will provide various specialized services, including medical care to infants and children with congenital heart diseases and related complications.

SPACE-

MBRSC casts Emirati crew member for space mission: The Mohammed Bin Rashid Space Centre (MBRSC) has onboarded Emirati pilot Shareef AlRomaithi for the second group of volunteers for the UAE Analog Programme, which will kick off on 10 May at Nasa’s Johnson Space Center in Houston, Texas, and will last for 45 days, reports the Dubai Media Office. AlRomaithi has over 16 years of experience in the airline industry.

Background: The UAE Analog Programme kicked off its second analog study in January as part of Nasa’s Human Exploration Research Analog, which simulates space-like conditions on Earth to prepare astronauts for longer missions in space. The program is divided into four phases that are dispersed over six months. The third and fourth phases are scheduled to commence later in 2024, according to the Dubai Media Office.

STARTUPS-

Some 25 startups joined Abu Dhabi’s tech VC Hub71’s latest cohort, raising USD 122 mn in funding, according to a Hub71 statement. The startups, 81% of which are headquartered outside the UAE, operate across nine sectors, including fintech, climate tech, health tech, edtech, and mobility and logistics. They join Hub71’s “Access” program and specialist programs on digital ecosystems and climate tech, allowing them to receive up to AED 250k worth of in-kind incentives and AED 250k in cash for equity, with high-performing startups also eligible to receive a top-up of up to AED 250k in exchange for additional equity, after one year.

TELECOMS-

Telecom giant du has partnered with internet provider Expereo to extend du’s reach to global enterprises present in the UAE and government entities, a press release reads. The partnership promises improved network infrastructure, with more reliable internet connectivity and reach. It will also improve service offerings and provide tailored solutions.

Activity in China’s capital markets is on a downward spiral

China’s capital markets are increasingly isolated: Declining global investor interest inChina has pushed activity in the country’s equity capital markets to multi-decade lows, writes the Financial Times.

By the numbers: Mainland IPOs along with follow-on and convertible share offerings have brought in some USD 6.4 bn in the first four months of 2024, the lowest number ever recorded, while offshore fundraising stood at USD 1.6 bn for the period — the lowest in over two decades — and outbound M&A transactions came in at their lowest since 2005 at USD 2.5 bn.

Driving the slump: Mounting geopolitical Beijing-Washington tensions and shrinking levels ofactivity in China have seen international banks and firms avoid the country. On top of this, property developers — a former pillar of Asia’s high-yield bond market — have ceased international borrowing in the wake of a government crackdown on using debt to fund projects that unsettled their business models, writes the salmon-coloured paper.

But on the plus side: China’s economy grew at a faster-than-anticipated rate of 5.3% y-o-y in 1Q 2024, according to data from China’s National Bureau of Statistics out yesterday. Chinese firms, banks, and government borrowers have also issued USD 26 bn of international debt this year, up from USD 24 bn the year before, while mainland borrowing is up 17% y-o-y to USD 246 bn.

MARKETS THIS MORNING-

Asian markets are trending mainly lower, with the Shanghai Composite (+0.7%) the only outlier at dispatch time. US and European stock futures are little changed, with most major benchmarks up very slightly overnight after the S&P 500 notched yesterday its third day of losses.

ADX	9,194	-0.6% (YTD: -4.0%)
DFM	4,184	-1.4% (YTD: +3.1%)
Nasdaq Dubai UAE20	3,668	-1.6% (YTD: -4.5%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.0% o/n	5.3% 1 yr
TASI	12,500	-1.6% (YTD: +4.5%)
EGX30	29,400	-0.7% (YTD: +18.1%)
S&P 500	5,051	-0.2% (YTD: +5.9%)
FTSE 100	7,820	-1.8% (YTD: +1.1%)
Euro Stoxx 50	4,916	-1.4% (YTD: +8.8%)
Brent crude	USD 90.14	+0.04%
Natural gas (Nymex)	USD 1.73	+2.4%
Gold	USD 2,408	+1%
BTC	USD 63,950	+1.2% (YTD: +110.2%)

THE CLOSING BELL-

The ADX fell 0.6% yesterday on turnover of AED 1.2 bn. The index is down 4.0% YTD.

In the green: Presight AI Holding (+15%), Chimera (+8.2%) and Easy Lease Motorcycle Rental (+7.7%).

In the red: Emirates Stallions Group (-4.0%), Multiply Group (-3.7%) and Sharjah Cement Industrial Development (-3.5%).

Over on the DFM, the index closed down 1.4% on turnover of AED 499.9 mn. Meanwhile, Nasdaq Dubai fell 1.6%.

UAE President, FM discuss regional turmoil with KSA, UK, and Hungary

UAE President Sheikh Mohamed bin Zayed Al Nahyan phoned Crown Prince of Saudi Arabia Mohammed bin Salman to discuss the possibility of military escalation in the region, emphasizing the need to prevent the conflict from spiraling further, Saudi state news agency SPA reported yesterday.

Foreign Minister Abdullah bin Zayed also held phone calls with British counterpart David Cameron and Hungarian counterpart Péter Szijjártó to discuss the conflict and the need for de-escalation.

The foreign minister also spoke with Mauritanian counterpart Dr Mohamed Salem Ould Merzoug about the developments in the region, as well as ways to boost ties and cooperation, Wam reported separately.

CALENDAR

APRIL

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

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.

19-21 April (Friday-Sunday): The Global Summit on Innovations in Cancer Care,Four Seasons Hotel, Abu Dhabi.

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

23-29 April (Tuesday-Monday): Subscription period for retail investors for Spinneys’ IPO.

23-30 April (Tuesday-Tuesday): Subscription period for institutional investors for Spinneys’ IPO.

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.

27-28 April (Saturday-Sunday): Frontiers in Advanced Hepato-Biliary Cancers and Transplant Oncology, Cleveland Clinic Abu Dhabi.

28-29 April (Sunday-Monday): World Economic Forum’s Special Meeting on Global Collaboration, Growth and Energy for Development, Riyadh, Saudi Arabia.

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.

9 May (Thursday): Spinneys shares begin trading.

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.

Signposted to happen sometime in 1H 2024:

Spinneys inaugurates its first store in KSA

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.

Signposted to happen sometime by FY2024:

Spinneys inaugurates three more stores in KSA

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