More climate investments + an oversubscribed AT1 bond sale from Mashreq

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Work on Al Maktoum Airport to begin this month? + Impending interest rate cuts to boost dealmaking in the UAE, consultancy says

Good morning, friends. We have a busy issue for you this morning, with a flurry of climate, investment, and debt news.

The big stories of the day are a toss-up between fresh climate pledges from COP28 President Sultan Al Jaber through the Alterra fund, news that Canadian oil and gas company Sonaro Energy is buying into a local well management and engineering firm, and our friends at Mashreq’s 4.4x oversubscribed AT1 bond sale.

WATCH THIS SPACE-

#1- Work on Al Maktoum Airport to begin this month? Work on Al Maktoum International Airport’s new passenger terminal is set to begin in the coming two to three weeks, Zawya cites Reuters as reporting yesterday. The first phase of the project — capable of handling 150 mn passengers — is likely to conclude within the coming 10 years, according to Dubai Civil Aviation Authority Chair Sheikh Ahmed bin Saeed Al Maktoum.

Refresher: Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum approved the design plan for the USD 35 bn new passenger terminal at Al Maktoum International Airport in April. The expanded airport is set to be the world’s largest, hosting over 260 mn passengers, handling 12 mn tons of annual cargo, accommodating around 400 aircraft gates, and featuring five parallel runways.

#2- Venture capital investments in the UAE’s startup scene are expected to “take center stage” in 2024, according to a Tenet Consulting report picked up by Zawya. VC investments in the region — as well as worldwide — are expected to pick up pace with foreseen interest rate cuts, which will incentivize businesses to expand and raise capital. “This impending shift has the potential to breathe new life into initial public offerings and M&A [transactions], reigniting investor confidence and dealmaking momentum,” according to the report.

#3- Prices will continue to trend upward in the aviation industry, Dubai Aerospace Enterprise (DAE) CEO Firoz Tarapore told Bloomberg in an interview (watch, runtime: 4:26) yesterday. Inflated rental leases come on the back of supply chain delays — with some 3k planes on the production pipeline stalling over the last three years — against heightened demand “across all airlines [and] across all aircraft types.”

However, airlines and their surrounding ecosystem remain profitable, with Tarapore adding that the outlook for the industry is “strong.” “People either need to or want to travel, and that is holding up numbers really quite well for our business,” Tarapore said.

DAE isn’t worried about Boeing’s ongoing crisis despite having a USD multi-bn order from the aircraft manufacturer. “Ultimately, safety is not an issue because Boeing is kind of gearing down to make sure that everything that comes out is absolutely safe […] and regulators are all over it,” Tarapore said, adding that geopolitical conflicts have also not had “any impact on the airline side or on [DAE’s] side.”

#4- Adnoc Distribution plans to enter new markets in the Middle East and Africa, and is eyeing expansions in Egypt as part of global expansion plans, Asharq Business quotes CEO Bader Al Lamki as saying. The country’s largest fuel retailer is also looking into installing electric vehicle charging stations and local manufacturing of motor oils in Egypt by late 2024, Lamki said.

The company is looking to invest some USD 250-300 mn in the region annually over the next five years, it said previously. It’s also looking to add some 15-20 fuel stations across Egypt, Saudi Arabia and the UAE within six months.

Remember: Adnoc Distribution entered the Egyptian market via a USD 186 mn acquisition for a 50% stake in TotalEnergies’ Egyptian fuel distribution arm a year ago. It was also rumored to have lodged a bid for the military-owned filling station operator Wataniya, but unconfirmed media reports in February claimed that the Emirati oil giant had withdrawn its bid.

HAPPENING TODAY-

#1- Dubai Chamber to head to Morocco: The Dubai International Chamber is heading to Morocco as part of its African roadshow aimed at promoting and expanding Dubai-based companies’ foothold in the continent, according to a statement. The trade mission’s agenda will include holding meetings between Dubai-based companies and their counterparts in Morocco, with a focus on exploring collaboration, expansion strategies, and forging new partnerships and trade agreements.

The first leg of the roadshow in Senegal saw participation from 247 senior figures from the Senegalese government, business leaders, and local companies to explore potential partnerships with the Dubai Chamber, according to a press release. The Dubai Chamber arranged 150 business matching meetings between companies from both the UAE and Sengal.

#2- The Hotel Show is on its second day at the Dubai World Trade Centre and runs through to Thursday, 6 June. The three-day event welcomes visitors from across the hospitality supply chain to source products from global and regional exhibitors and discuss developments within the industry.

#4- Today is the deadline for Sidara to withdraw its acquisition offer for the entirety of Wood Group. The Dubai-based engineering and consulting firm submitted its fourth and final bid last week to acquire the Irish engineering firm at GBP 2.3 per share, valuing it at GBP 1.59 bn. This bid represents a 4.5% premium over its last bid in late May, which was rejected for “significantly undervaluing the company.” Sidara had asked Wood to consider extending the deadline and engaging in negotiations, while Wood said it is now evaluating the latest bid.

HAPPENING THIS WEEK-

S&P Global will publish PMI figures for May next Wednesday. The non-oil sector continued to expand in April, though at a slightly slower pace due to the impacts of the storm.

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THE BIG STORY ABROAD-

A third term for Modi … maybe: Indian Prime Minister Narendra Modi is on track to become the country’s first prime minister to secure a third term in over 60 years after his coalition the Bharatiya Janata Party (BJP) won a little more than half of the 543 seats in the country’s lower house. Modi has lost his parliamentary majority — a surprise to pundits — and now has to work with allies to form a government. The opposition INDIA alliance holds some 233 seats. The result is seen as a blow to Modi’s dominance, with analysts noting a shift towards “alliance politics” and a more negotiated government. (FT | Reuters | CNBC)

What’s next? Bloomberg is out with a piece detailing what went wrong for Modi and what we expect next from the Indian government.

ALSO IN ELECTIONS- Sunak vs. Starmer. UK Prime Minister Rishi Sunak went head-to-head with Labour Party leader Keir Starmer in their first debate weeks before the Brits head to the polls. Their debate saw them take digs at each other’s election promises, with Sunak telling viewers that Starmer’s party will “raise your taxes. It’s in their DNA. Your work, your car, your pension.”

Round two: The two will face off again on 26 June and take part in a seven-way debate on Friday, Bloomberg writes. (The Guardian | The Washington Post | FT | BBC)

OIL WATCH- Oil extends losses: Oil prices fell another USD 1 a barrel yesterday, extending losses that pushed them to four-month lows. Brent crude fell to a low of USD 76.76 a barrel yesterday, while US West Texas Intermediate crude fell to USD 73.25. Brent has now fallen 8% over the past week, as “rising oil inventories and weak economic data have fuelled concerns that global demand will remain depressed, while stubbornly high inflation will cause central banks to delay interest rate cuts,” writes the Financial Times.

CIRCLE YOUR CALENDAR-

The AI Retreat is set to take place on 11 June at Dubai’s Museum of the Future, according to a Dubai Media Office statement. Organized by the Dubai Centre for Artificial Intelligence, the event will gather over 1k AI experts, policymakers and business leaders to explore the potential and challenges of AI at both local and global levels.

The Abu Dhabi Early Childhood Week is scheduled to take place from Tuesday, 29 October, until Saturday, 2 November, according to an Abu Dhabi Media Office statement. Hosted by the Abu Dhabi Early Childhood Authority, the event will gather entrepreneurs and VC funds, with the aim of promoting collaboration and encouraging investment in early childhood development projects.

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

UAE climate fund Alterra pledges USD 200 bn in investments over next six years

More climate pledges + groundbreaking ceremony at Baku Energy Week: COP28 President Sultan Al Jaber’s attendance at the Baku Energy Week, which kicked off on Tuesday and wraps tomorrow, saw him lay foundation stones for solar plants in Azerbaijan and announce additional climate pledges through UAE climate fund Alterra.

#1- Alterra pledges additional USD 200 bn for climate investments: The UAE’s climate fund, Alterra, said it will direct an extra USD 200 bn to investments over the next six years, Wam quotes COP28 President Sultan Al Jaber as saying. The venture previously aimed to mobilize USD 250 bn in green investments by 2030.

Alterra was launched last year to increase climate funding for the Global South: The UAE launched the USD 30 bn “catalytic climate vehicle” in December 2023 to improve access to climate funding for the Global South. Alterra’s initial commitment — along with BlackRock, Brookfield, and TPG — was USD 6.5 bn to climate-dedicated funds.

Work has been ongoing to mobilize investments: Global Climate Finance Centre (GCFC) and Alterra joined forces in April to increase climate investments in emerging and developing economies. The investments will focus on furthering low carbon, sustainable, and climate resilient projects.

#2- Masdar breaks ground on Azerbaijan projects: Renewables giant Masdar has inked power purchase, transmission connection, land lease, and investment agreements with the government of Azerbaijan to advance developing 1 GW of solar and wind projects in the country, according to a statement. Masdar and Azerbaijan’s state-owned Socar officially launched the projects during a groundbreaking ceremony yesterday.

About the projects: The projects will comprise a 445 MW Bilasuvar Solar PV Project and a 315 MW Neftchala Solar PV Project, set to become operational by the end of 2026 or early 2027, Masdar's head of development and investment for the CIS region Maryam Al Mazrouei told Reuters. They also include the 240 MW Absheron-Garadagh onshore wind farm, set to start operations by the end of 2027.

This has been in the works: Masdar and Azerbaijan inked agreements for 1 GW of solar and onshore wind projects in the country last October. This forms part of a broader agreement to install 10 GW of clean energy projects — including onshore and offshore wind farms, solar farms and green hydrogen — in the Central Asian country.

Masdar has other projects in Azerbaijan: Masdar launched the operations of its Garadagh Solar Park in Azerbaijan — the largest in the region and the first independent solar project to receive foreign investment. Masdar and Saudi’s Acwa Power also signed an MoU with Socar for 500 MW of renewable energy projects in the country, and agreed to develop renewables projects with a combined capacity of 4 GW with Socar.

The UAE is deepening ties with Azerbaijan: Earlier this week, Adnoc awarded Socar a minority stake in its Sarb and Umm Lulu concession. The UAE and Azerbaijan also signed multiple agreements for cooperation in sustainable development across the renewable energy and environmental sectors ahead of COP29 last January. In December, Abu Dhabi’s sovereign wealth fund ADQ established a USD 1 bn joint investment fund with Azerbaijan Investment Holding, targeting agriculture, technology, pharma, and energy infrastructure.

ALSO- Al Jaber calls for faster AI integration: Al Jaber called for a global effort to harness the potential of AI, energy transition, and the growing economies of the Global South to expedite sustainable development, Wam reports. He urged the energy and tech industries to collaborate on using AI to meet rising global energy needs sustainably, reducing carbon emissions.

Canada’s Sonoro Energy to acquire 20% of UAE well manager

Sonoro Energy to acquire a stake in UAE-based regional well manager: Canadian oil and gas company Sonoro Energy signed a non-binding agreement to acquire a 20% stake in an undisclosed UAE-based company offering well management and engineering, procurement, and construction (EPC) services in the MENA region, it said in a statement. Sonoro plans to acquire the stake via a share swap agreement executed by its subsidiary.

The details: Sonoro’s subsidiary will offer 40 mn common shares in Sonoro at USD 0.12 per share, granting the UAE company 15.2% of Sonoro shares, without creating new insiders.

What’s next? A definitive agreement — which is expected to be hashed out in 2Q 2024 — will be subject to regulatory approvals, plus approvals from Canada’s TSX Venture Exchange and shareholders.

What we know about the UAE company: The company holds a five-year master service agreement with a national oil company for oil and gas well management and EPC services, according to Sonoro’s statement. The agreement covers existing oil and gas fields producing some several 100k bpd, and looks to ramp up the national oil company’s area production by over 100k bpd via well re-activation, EPC projects, sub-surface optimization studies, operational enhancements, maintenance activities, training programs, and ancillary support activities.

Mashreq’s USD 500 mn bond sale meets heavy demand, allows lender to lock in the lowest coupon by a UAE bank in past three years

Mashreq’s AT1 bonds were 4.4x oversubscribed: Our friends at Mashreq issued a USD 500 mn additional Tier 1 bond, yesterday, with an annual coupon rate of 7.125%, with a 270.5+ basis point (bps) reset margin, the lender said in a statement (pdf). The issuance carries the lowest coupon for AT1 bonds set by a bank in the UAE in the past three years.

Mashreq booked USD 2.3 bn in orders for the offering, making the sale 4.4x oversubscribed. The transaction saw the largest price tightening by any UAE bank for an AT1 issuance in the past five years, Mashreq said.

Who bought in? Some 77.5% of the offering was allocated to Middle East-based investors, while Europe (including the UK) snapped up some 19.5%. The balance was divided between Asian markets and offshore US interests.

Sound smart: The issuance carries Mashreq’s tightest-ever reset margin (+270.5 bps) for any of its bank capital issuances (AT1 and Tier 2) — that’s the tightest spread ever achieved on a conventional, USD-denominated AT1 benchmark issuance out of the Middle East. The transaction was Mashreq’s first since it raised USD 300 mn in its 2022 offering.

Use of proceeds: Mashreq will use the funds to “continue its growth plans into 2024 and beyond,” our friend Ahmed Abdelal, Mashreq’s Group CEO, said.

The marketing plan: Mashreq kicked off with a “well-attended global investor call” and then pushed through “a couple of days of intensive marketing” that included an in-person roadshow in London.

Uh, Enterprise, what are AT1 bonds? They're a common way for banks to raise core tier-one capital without diluting shareholders by issuing new equity. Additional tier one certificates (or "AT1 certificates") are a type of subordinated debt, meaning they rank below other types of bank debt in the event of liquidation. This makes them riskier than senior debt, but still gives them priority over equity holders. AT1 certificates are “perpetual,” having no fixed maturity date. They pay interest similarly to bonds, but can often be converted into equity under certain conditions, which is why they are often referred to as CoCos, short for “contingent convertibles,” in the industry.

BACKGROUND- Mashreq hired banks to advise on the issuance last week. The bonds will be perpetual and non-callable for 5.5 years, meaning Mashreq cannot redeem them within this period without incurring a penalty.

ADVISORS- Mashreq appointed Abu Dhabi Commercial Bank, Al Ahli Bank of Kuwait’s DIFC branch, BofA Securities, Citi, Emirates NBD Capital, FAB, Kamco Investment Company, Mashreq, and Mizuho as joint lead managers and joint bookrunners.

Dar Global launches AED 900 mn RAK project

Dar Global + Aston Martin launch AED 900 mn RAK project: Dubai-based developer Dar Global is launching a new AED 900 mn luxury residential development in Ras Al Khaimah, named The Astera, according to a press release. The beachfront project will feature interiors designed by British luxury carmaker Aston Martin. The Astera will be located on Al Marjan Island and will offer one, two, and three-bedroom apartments as well as three-bedroom villas.

The details: The Astera, first announced by Dar Global in April, is slated for completion by December 2028 and will be developed in collaboration with Dubai-based developer Aarvees Group. The project will feature a private beach, an infinity pool, an indoor cinema, and a fitness center, among other amenities.

The project marks Aston Martin’s foray into the real estate market in the Middle East, and “provides an opportunity for our talented designers to help shape the interiors of an unparalleled development in the region, further elevating Aston Martin's brand and applying it to a beachfront lifestyle environment,” Stefano Saporetti, director of brand diversification at Aston Martin, said.

REMEMBER- Ras Al Khaimah has been getting increased interest from investors. High-end hotels and casinos developer Wynn Resorts announced earlier its plans to develop a USD 3.9 bn integrated resort in Ras Al Khaimah, which will include gaming areas. The project will be the first integrated gaming resort in the MENA region, and is slated for handover in 2027. The emirate plans to triple the number of tourists who visit per year and double the number of rooms available by 2030.

Taqa reaches financial close of Saudi AED 1.5 bn water project

Taqa secures financing from local and int’l lenders for AED 1.5 bn Saudi water project: A consortium comprising Abu Dhabi National Energy Company (Taqa), Saudi’s Vision International Investment Company (Vision Invest) and the Gulf Investment Corporation (GIC), secured 82% of the AED 1.5 bn in financing for Juranah Independent Strategic Water Reservoir in Makkah from local and international lenders, according to a p ress release (pdf). No information was disclosed on the remaining portion of the funding.

Refresher: The companies inked agreements for the project with Saudi Water Partnership Company in late December 2023 to address pressing water requirements throughout Saudi Arabia and manage peak demand for water in Makkah and Madinah during the Hajj season. Taqa owns a 35% shareholding in the project company and a 50% stake in the project’s operations and maintenance company. Details regarding the share distribution among the rest of the members of the consortium have not been disclosed.

Who’s in? Alinma Bank, Banque Saudi Fransi (BSF), Saudi Investment Bank (SAIB) and Commercial Bank of Dubai (CBD) are funding the project. The Saudi Water Partnership Company had said it reached financial closure last week.

The project’s details: The project will be executed under a build, own, operate, and transfer (BOOT) model with a 30-year concession and is set to begin operations in 1Q 2027. ISWR has a storage capacity of 2 mn cubic meters and an operational tank capacity of 500k cubic meters to support the potable water distribution system.

Shuaa Capital appoints new COO and CCO + Mubadala taps senior private equity exec

Shuaa Capital appointed Ziad Mansour (Linkedin) as chief operating officer, and Islam Mahrous (LinkedIn) as chief compliance officer, according to a DFM disclosure (pdf). Mansour has been Shuaa’s head of operations for 12 years. Prior to that, he held the position of vice president at the firm for over five years. Mahrous most recently held the role of director and head of compliance at Shuaa for two years, before which he served as VP of compliance for corporate governance and money laundering reporting officer for four years. .

The company also tapped Aarthi Chandrasekaran (Linkedin) as head of asset management, and Mazen Farah as head of capital markets (Linkedin).

ICYMI-The investment bank tapped Wafik Ben Mansour as CEO earlier in May.

REFRESHER- The recent hires coincide with the investment bank's efforts toward a capital optimization plan. This plan involved issuing AED 642.5 mn in new bonds, extending payment terms for approximately USD 150 mn worth of bonds, and appointing a new management team due to significant losses in 2023. Additionally, the investment bank fully settled some AED 500 mn (USD 136 mn) in margin facilities with several UAE banks.

Mubadala hires new senior member to its private equity team: Abu Dhabi sovereign wealth fund Mubadala Capital has recruited Sam Merksamer (LinkedIn) to be a senior member on its private equity team, according to Bloomberg. Merksamer, formerly a partner at One Investment Management, will be focusing on direct investments.

UAE wants an AI “marriage” with the US, Al Olama says

Leading the conversation on the UAE in the international press this morning: The UAE is looking for a “marriage” with the US on AI, AI Minister Omar Al Olama told the Financial Times. “When you look at the frontier technology, at the most cutting edge, that needs to be in coordination with the US players and there needs to be reassurances that are given to the US,” Al Olama said.

ICYMI- US tech giant Microsoft invested USD 1.5 bn in state-owned AI company G42 in April, as part of an agreement between the two governments to deploy AI. G42 offloaded all its stakes in Chinese businesses in a bid to reportedly appease US partners.

ALSO- Emaar Properties’ AED 1.5 bn investment to expand Dubai Mall with 240 new luxury retail stores and F&B outlets got ink in Bloomberg yesterday.

Network International becomes first to roll out Jaywan cards for merchants

PAYMENTS-

Network International rolls out Jaywan for merchants: Dubai-based payments provider Network International has become the first to roll out the UAE’s domestic Jaywan cards in partnership with Central Bank of the UAE subsidiary Al Etihad Payments, to its merchant network, according to a press release. Jaywan — which uses licensing technology from Indian payment operator NPCI — is being rolled out in stages among local banks, with all banks expected to replace debit cards in the country with the local card over the next two and a half years.

Looking ahead, Jaywan’s offerings will expand to include international acceptance points, facilitating card-based payments abroad for UAE residents.

ENERGY-

#1- Presight + Esyasoft to bring AI solutions to energy distribution: G42 data analytics subsidiary Presight and IHC’s Esyasoft formed an Abu Dhabi-based joint venture dubbed IntelliGrid, according to a press release (pdf). The JV targets deploying smart gas grids and developing advanced metering infrastructure, digital Industrial Internet of Things (IIoT) devices, and intelligent AI platforms.

#2- Nuclear energy watchdog strengthens regulation ties with Korea: A delegation from the Federal Authority for Nuclear Regulation (FANR) met with the South Korean Nuclear Safety and Security Commission during a visit to the country, exchanging insights and updates on the two nations’ nuclear programs and regulatory measures, Wam reports.

FANR also renewed a cooperation agreement with the Korea Institute of Nuclear Safety, focusing on regulatory management, advanced nuclear technologies, safety research, and radioactive waste management.

MANUFACTURING-

Mubadala + GCL to bring polysilicon manufacturing to the UAE: Mubadala’s wholly-owned unit MDC Power inked an agreement with Chinese GCL Tech to explore the development of the first polysilicon manufacturing facility in the UAE, GCL said in a statement (pdf). If implemented, the facility will be developed by GCL’s subsidiary, GCL Suzhou, and is expected to become the “world’s largest production base in the polysilicon industry outside China,” according to GCL.

GCL soon to break ground on the facility? After two years of studying the project, GCL expects to begin constructing the project this year, EnergyTrend reports, citing the Chinese holding company’s 2023 financial statements.

HOSPITALITY-

Aman Group to bring its Janu brand to Dubai: Luxury hotel group Aman Group unveiled Janu Dubai, a 150-key skyscraper situated in Dubai International Financial Centre, according to a statement. The luxury hotel is set to open by 2027 and will feature around 150 luxurious hotel rooms, residences, dining options, and a comprehensive wellness center. The building, owned by Alia Developments, is being designed by architecture firm Herzog & de Meuron and will be developed by Dubai-based real estate developer H&H Development. This marks the second property for the Janu brand, after the first Janu property opened in Tokyo in March 2024.

SPORTS-

Sharjah Ruler approves two new stadia: Ruler of Sharjah and Supreme Council Member Sheikh Dr. Sultan bin Mohammed Al Qasimi has offered Kalba Club and Khorfakkan Club each a stadium on cooler mountain peaks, following their performances in the Adnoc Pro League’s 2023/2024 season, Wam reports. The project ensures better weather conditions and a 10 degree difference atop the mountains.

Also in the works is the “Sharjah Scientific Complex” project, which would house 10k books acquired by Sheikh Dr. Sultan bin Mohammed Al Qasimi.

AVIATION-

#1- Etihad airways signed an MoU with Royal Air Maroc to boost commercial and operational cooperation, according to a press release. The agreement promises to bolster cooperation between both airlines, including on codeshare arrangements to cover more domestic routes in Morocco and Africa, developing a frequent flier program, and strengthening cooperation on ground handling, maintenance and engineering.

#2- Emirates Airlines has invested USD 3 bn into a program aiming to refurbish 191aircraft last year, Al Bayan quotes Adel Al Redha, COO and VP at the carrier, as saying. The investment came as Boeing 777X aircraft were excluded from their scheduled delivery in 2025 amid manufacturing delays.

RAIL-

Etihad Rail + CSP Abu Dhabi partner on rail transport: UAE rail operator Etihad Rail has inked an agreement with Cosco Shipping Ports Abu Dhabi Container Freight Station (CSP) to boost logistics, supply chains, and connectivity across the UAE, according to a press release. The agreement will reduce CSP’s reliance on trucking and contribute to curbing 21% of emissions attributable to the country’s road sector by 2050. No investment ticket or timeline were disclosed as part of the statement.

The details: CSP will use Etihad Rail to move goods between Khalifa Port and other logistics hubs and industrial zones within the UAE for better resource, time, and asset management, the statement notes. Etihad Rail’s freight rail terminals will also be used as storage and distribution hubs for CSP goods, streamlining logistics operations by establishing strategic inland nodes for cargo consolidation and deconsolidation.

HEALTHCARE-

#1- Dubai Health and Erada partner on addiction treatments: Dubai’s integrated academic healthcare system Dubai Health inked an MoU with the Erada Centre for Treatment and Rehab to develop an advanced model of care for patients with substance abuse disorder, according to the Dubai Media Office. The agreement will see the two entities cooperate in patient transfer for additional medical needs, logistical support, information exchange, and training and development. Erada will also work with the Mohammed Bin Rashid University Of Medicine and Health Sciences to develop educational programs on substance abuse treatment, residency, and research.

#2- DoH + Pfizer to improve RWD capabilities: Abu Dhabi’s Department of Health inked an MoU with biopharma giant Pfizer Gulf to advance disease prediction, prevention, and personalized treatment plans in Abu Dhabi, Wam reports. The partnership aims to improve real-world data generation and analysis, with a focus on enhancing the capabilities of Abu Dhabi’s healthcare workforce. The collaboration will initially focus on using data to treat and detect sickle cell diseases, with plans to expand to other diseases in the future.

EARNINGS-

Equitativa’s Emirates real estate investment trust (REIT) saw its bottom line rise 226% y-o-y to USD 24.8 mn in 1Q 2024, according to the company’s earnings release (pdf). The REIT’s total income from property grew 15% y-o-y to USD 19.7 mn over the quarter, “thanks to the continued increasing occupancy level and improvement in rental rates.” Its total assets also climbed 17% y-o-y, reaching USD 1.07 bn in 1Q 2024.

TRADE-

Sharjah, China to boost ties: A delegation from Sharjah — led by the Department of Government Relations — attended high-level meetings in China’s Beijing and Shandong provinces yesterday, discussing the strengthening of economic, cultural, and academic ties and cooperation across sectors, Wam reports. The delegation met with the China Council for the Promotion of International Trade and the China Chamber of Commerce for Import and Export of Machinery and Electronic Products on the sidelines of their working visit, plus leading Chinese technology companies Xiaomi and Huawei Beijing Research Centre.

DGR also discussed ramping up cultural, tourism, and heritage ties with China’s National Cultural Heritage Administration, and collaborations in science, technology, education, and healthcare sectors with universities, research institutions, and health authorities in China.

Ackman sells 10% of Pershing Square for USD 1.1 bn

Ackman offloads USD 1.1 bn stake in Pershing Square: US b’naire investor Bill Ackman has offloaded a 10% stake in hedge fund management company Pershing Square in a USD 1.1 bn transaction, according to a statement from the company. The sale, which values the company at more than USD 10 bn, comes ahead of a possible IPO next year that could make the company the first major hedge fund to go public in more than a decade, the Financial Times reports.

The buyers: The stake was sold to a number of strategic investors including US investment management firm ICONIQ Capital, Israeli ins. Company Menora Mivtachim Holdings, and Bermuda-based Arch Capital Group, among others.

A lofty valuation: The stake sale hands Pershing Square a high valuation compared to private equity groups that manage much larger asset pools, the FT writes. The company manages nearly USD 15 bn in assets that generated around USD 155 mn in management fees in 2023. Meanwhile, private equity outfit TPG — which was valued at around a similar USD 10 bn when it went public in early 2022 — generated more than USD 600 mn in management fees the year before its listing.

MARKETS THIS MORNING-

Asian markets are mixed this morning, with the Nikkei and Shanghai Composite in the red, while the ASX 200, Kospi, and Hang Seng are all in the green. US equities futures were comfortably in the green overnight as traders look forward to yet another data dump later today — this time May private payroll data from ADP. Futures for major European benchmarks were all up in overnight trading with the exception of France’s CAC 40.

ADX	8,919	0.0% (YTD: -6.0%)
DFM	3,986	-0.2% (YTD: -1.8%)
Nasdaq Dubai UAE20	3357.9	+0.2% (YTD: -12.6%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.2% o/n	5.4% 1 yr
TASI	11,612	-1.7% (YTD: -3%)
EGX30	26,973	+0.5% (YTD: +8.4%)
S&P 500	5,291	+0.2% (YTD: +25.4%)
FTSE 100	8,232	-0.4% (YTD: +6.5%)
Euro Stoxx 50	4,953	-1.0% (YTD: +9.6%)
Brent crude	USD 77.27	-1.4%
Natural gas (Nymex)	USD 2.77	+0.7%
Gold	USD 2,353.4	-0.7%
BTC	USD 70,399	+1.9% (YTD: +66.6%)

THE CLOSING BELL-

The DFM fell 0.2 % yesterday on turnover of AED 420 mn. The index is down 6.9% YTD.

In the green: Dubai Refreshment Company (+12.1%), Agility The Public Warehousing Company (+6.4%) and Emirates Central Cooling Systems Corporation (+4%).

In the red: Al Salam Sudan(-8.4%), Dubai Islamic Insurance and Reinsurance Company (-4.6%) and Air Arabia (-4.1%).

Over on the ADX, the index was flat on turnover of AED 983.5 mn. Meanwhile Nasdaq Dubai rose 0.2%.

UAE officials meet with Asian leaders to boost ties

UAE, Philippines talk bolstering cooperation, inking CEPA: Foreign Affairs Minister Abdullah bin Zayed Al Nahyan met with Filipino President Ferdinand Marcos Jr. yesterday at the Malacañang Palace in Manila, Wam reports. The meeting focused on strengthening bilateral cooperation between the two countries and expanding trade and investment ties through establishing a trade and economic partnership agreement. The two countries agreed on a scope for negotiations for a trade agreement last December.

(** Tap or click the headline above to read this story with all of the links to our background and outside sources.)

Sheikh Abdullah also spoke with Azerbaijan’s Foreign Affairs Minister Jeyhun Bayramov over the phone to discuss boosting bilateral cooperation, Wam reports. The two addressed the climate file, as well as joint cooperation in sectors such as economy, investment, trade, development, and renewable energy.

AND- President Sheikh Mohamed bin Zayed Al Nahyan met with an Afghan delegation led by Interior Minister Sirajuddin Haqqani to discuss boosting economic and development ties, as well as supporting the reconstruction and development of Afghanistan, Wam reports.

Over in Malaysia: Trade Minister Thani Al Zeyoudi met with Prime Minister Anwar Ibrahim to discuss deepening trade ties, Wam reports. The minister also met with his counterpart, Zafrul Aziz, to discuss cooperation on technology, manufacturing, and services.

State Minister Ahmed Ali Al Sayegh and Malaysian Deputy Foreign Minister Mohamad Bin Alamin co-chaired a joint committee meeting that explored boosting ties between the countries in sectors including economy, tourism, entrepreneurship, SMEs, fintech, innovation, transportation, renewable energy, logistics, agriculture, food security, environment and infrastructure.

CALENDAR

JUNE

28 May-5 June (Tuesday-Wednesday): Subscription period for institutional investors for Alef Education’s IPO.

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.

5 June (Wednesday): Deadline for Sidara to resubmit or withdraw its takeover bid to John Wood Group.

3-7 June (Monday-Friday): Dubai International Chamber’s trade mission to Senegal and Morocco.

10 June (Monday) Alpha Dhabi holds shareholder vote on the sale of a 49% stake in Alpha Dhabi Construction to ADQ.

11 June (Tuesday): The AI Retreat, Museum of the Future, Dubai.

12 June (Wednesday): Alef Education shares begin trading.

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.

AUGUST

3 August (Saturday): UFC Fight Night, Etihad arena, Abu Dhabi.

21-22 August (Wednesday-Thursday): Dubai Business Forum in Beijing, China.

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

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

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

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

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 before the end of the year:

Spinneys inaugurates three more stores in KSA

Signposted to happen in 2025:

6-11 April (Sunday-Friday): Geo-Spatial Week 2025, Dubai.
3-4 June (Tuesday-Wednesday): Make-A-Wish International’s Global Wish summit, Abu Dhabi.

Signposted to happen sometime in 2028:

Abu Dhabi to host the 47th Chess Olympiad

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