More love for private credit

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Parkin ups retail portion of IPO on “exceptional” demand

Good morning, wonderful people. The Ramadan slowdown is in full swing as we hit the midpoint of the first full workweek of the holy month — but we’re not complaining.

So, when do we eat? Maghrib is at 6:30pm in Dubai, and 6:33pm in Abu Dhabi. Fajr prayers are at 5:13am in Dubai and 5:17am in Abu Dhabi.

Leading this morning’s news well: Abu Dhabi Investment Authority’s latest investment in private credit and an update on Adnoc’s Ruwais LNG project. Plus: Air taxis between Dubai and Abu Dhabi could be coming next year.

HAPPENING TODAY-

The institutional subscription period for car parking space manager Parkin’s IPO wraps today. The retail portion of the IPO closed yesterday after the company upped the retail portion of the offering to 12%, up from 10%, on the back of an “exceptional level of oversubscription and demand” from retail investors, it said in a statement (pdf).The final share price will be disclosed tomorrow, after which Parkin’s shares will start trading next Thursday, 21 March under the ticker PARKN.

Refresher: The Dubai Investment Fund is selling a 25% stake in Parkin, with books covered within minutes after the book building process kicked off last week, setting it up to raise up to AED 1.57 bn from the listing.

HAPPENING THIS WEEK–

Sharjah’s proposed new real estate law will be on the agenda for the Sharjah Consultative Council when it meets tomorrow, Sharjah24 reports. The bill, which was proposed last month, would introduce rental regulations and streamline government procedures for rentals in the emirate, as well as establish a center for resolving rental disputes.

WATCH THIS SPACE-

#1- Dubai-based messaging app Telegram is mulling an initial public offering as it expects to hit profitability this year or next, founder Pavel Durov told the Financial Times. Although Durov declined to comment on a timeline or the exchange on which he plans to take the company public, saying that only that it has “studied various options,” two sources with knowledge of the matter say the IPO could happen in the US.

Following in Reddit’s footsteps? Telegram could offer a portion of the IPO to some of the most loyal among its 900 mn users — a move Reddit is planning when it goes public this month.

Path to profitability: Over the past two years, the messaging app has amassed “hundreds of mns of USD” in revenue through ads and premium subscription services, Durov said. The company is planning to expand several revenue streams, including ads and introducing business accounts and a “social discovery” feature. Telegram secured USD 2 bn in debt financing, including a USD 1 bn bond offering in 2021. Those bondholders could be able to convert their debt to equity at a 10-20% reduction to Telegram’s IPO price if the company goes public before March 2026, incentivizing an earlier listing.

Trouble ahead? The Financial Times explored Telegram’s struggles in a feature, highlighting some of the challenges it faces to keep alleged criminal activity and disinformation off the app as it navigates towards profitability and the potential IPO.

#2- Fujairah’s agriculture sector could be in line for more support:The Fujairah Chamber of Commerce and Industry is looking at potentially setting up “a market to support local agricultural and animal products,” Wam reports, without providing further details.

WAR WATCH-

Aid ship to Gaza sets sail from Cyprus under new UAE-funded initiative: A ship carrying aid for Gaza — with funding primarily from the UAE — departed from Cyprus carrying nearly 200 tons of food, including flour, rice, and protein, in a voyage that could take up to two days across the eastern Mediterranean, Reuters reports. The journey is part of a pilot mission to possibly open a new aid sea route to Gaza, with support from World Central Kitchen.

DATA POINTS-

#1- D&B Properties forecasts a 5-7% surge in Dubai property prices this year, on the back of “government initiatives, economic resilience, and robust investor interest,” Arabian Business reports. The forecast echoes S&P’s Global’s forecasts for price growth in the emirate’s property market.

#2- The value of the local construction market hit USD 94 bn in 2023, with residential construction taking up the biggest market share, state news agency Wam reports, citing a report by London-based data analytics and consulting company GlobalData. The report forecasts the market will continue to grow at an average annual growth rate of 3% between 2025 and 2028 on the back of increased investments in transport and renewable energy infrastructure, and improvements in the electric vehicle market.

#3- Occupancy rates at Dubai hotels grew 3.4% y-o-y in February, reaching 90.8%occupancy, Wam reports, citing CoStar data. Revenue per available room also increased 13.1% y-o-y to AED 805.21.

MARKET WATCH-

OPEC still sees strong demand for oil this year and next, saying its its latest monthly report (pdf) that it still sees demand rising 2.25 mn barrels per day this year and 1.85 mn bpd in 2025. It sees some room for global growth to pick up and, if it does, drive even more demand.

AND- There are zero indications that Russia will break ranks with OPEC. President Vladimir Putin said yesterday that OPEC+ and the production cuts it has enacted to put a floor under oil “has his full support.”

Watch this space: The International Energy Agency will release its forecast on Thursday. OPEC is bullish on oil and sees demand growing for at least the next two decades, but the IAE (focused as it is on industrialized nations) sees demand peaking in 2030.

THE BIG STORY ABROAD-

It’s a big morning in Washington, DC, where the House of Representatives will vote this afternoon on a bill that could ban Tiktok. Meanwhile, Joe Biden has just lined up enough delegates to clinch the Democratic nomination to seek another term.

The Biden administration is (kind of) applying more pressure on Israel, saying there is “no credible plan” to protect civilians and warning the IDF against “smashing into Rafah.” Plans are now afoot that could see the US and its allies send commercial vessels to deliver aid to Gaza before the US Navy can act.

MUST READ- Shipbuilding is the latest front in the global economic competition between the United States and China, the Financial Times writes in its Big Read this morning. The US has become a virtual non-factor in global shipbuilding, eclipsed by the rise of China, South Korea and Japan.

CIRCLE YOUR CALENDAR-

The EcoWaste Exhibition and Forum is set to take place between 16 and 18April at the Abu Dhabi National Exhibition Centre as one of the six specialized verticals within the program of the World Future Energy Summit, according to a press release. The event is organized by RX Middle East in partnership with Tadweer Group to showcase the latest technologies in the field of waste management.

The Hamdan bin Mohammed bin Rashid Al Maktoum International Photography Award has unveiled new categories — sports photography and short videos — open for submissions until 30 June 2024, according to the Dubai Media Office. You can submit applications here.

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

ADIA boosts investment in private credit with fresh commitment to Cheyne Capital

Abu Dhabi Investment Authority (ADIA) will up its commitment to London-based alternative asset manager Cheyne Capital’s capital solutions strategy to GBP 650 mn (USD 831 mn), Bloomberg reports, citing a statement. The exact size of the new investment was not disclosed.

About the strategy: Cheyne’s capital solutions fund offers senior loans against European real estate, intending to transition Europe’s property market “away from increasingly obsolete assets supported by low interest rates,” says Ravi Stickney, managing partner and chief investment officer of Cheyne’s real estate arm. The strategy also grants borrowers subordinated debt, hybrid credit, and commercial mortgage-backed securities.

What they said: “We have invested with Cheyne for a number of years and welcome the opportunity to grow our relationship. We see this as a compelling investment proposition in a market that is looking to private credit lenders for capital,” ADIA real estate department’s executive director, Mohamed Al Qubaisi, said.

ADIA ❤️ private credit: ADIA previously ventured into private credit in September, backing a USD 5 bn fund launched by Wells Fargo alongside asset manager Centerbridge and making a USD 932 mn investment in Australian real estate private credit company Qualitas Diversified Credit Investments.

And it’s not just ADIA: In February, sovereign wealth fund Mubadala agreed with Goldman Sachs to co-invest USD 1 bn in private credit in the Asia-Pacific region, with a particular focus on India. The wealth fund also took on the role of anchor investor for a private credit fund set up by Starz Real Estate and targeting European property in November 2023.

Adnoc advances Ruwais LNG project with early contract

Adnoc handed out an early engineering, procurement, and construction contract for its Ruwais liquefied natural gas (LNG) project,according to a press release. The Limited Notice to Proceed award was issued to a JV between engineering companies Technip Energies and JGC Corporation, and National Marine Dredging Company subsidiary National Petroleum Construction Company.

ICYMI: Adnoc is planning to reach a final investment decision on the Ruwais project in 1H 2024, Bloomberg previously reported. Adnoc will use its own funds to expand production, the business information service said at the time.

More about the JV:The JV was established back in July 2022 to accelerate the UAE’s transition to clean energy. It offers services in blue and green hydrogen, related decarbonization projects, and industrial projects in the fields of waste-to-energy, biorefining, and biochemistry.

Adnoc is readying to export: The company plans to start exporting from the Ruwais site in 2028.The project is expected to more than double Adnoc’s LNG production capacity from 6 to 15 mn metric tons per annum. Adnoc previously awarded a USD 400 mn contract to US oil field service company Baker Hughes in October 2023 for the supply of essential long leads, and noted that early civil works on the site have already commenced.

Ramping up LNG agreements: Adnoc inked agreements with China’s ENN Natural Gas and Gail India for a supply of at least 1.5 mn metric tons per year of LNG from the new plant. The company also inked LNG export agreements valued between USD 9.4-12 bn in 2023, including a 14-year LNG supply agreement with the Indian Oil Corporation, a three-year agreement with Total Energies, and a five-year agreement with Japan Petroleum Exploration.

Falcon, Archer to launch Dubai, Abu Dhabi air taxi service in 2025

Dubai-Abu Dhabi air taxi route going live next year: Abu Dhabi-headquartered aviation services provider Falcon Aviation inked an agreement with California-based electric flying car manufacturer Archer Aviation to develop a “vertiport” network in key locations across Dubai and Abu Dhabi, according to a press release. The agreement looks to launch Falcon’s air taxi services between the two emirates by 2025.

The details: The partnership will see the two firms develop the infrastructure for two vertiports — one at Falcon Heliport at Atlantis, the Palm in Dubai, and the other at the Marina Mall heliport in Abu Dhabi’s Corniche. Once operational, the service will allow Dubai and Abu Dhabi residents to fly between the two emirates in 30 minutes aboard Archer’s piloted, four-passenger aircraft, Midnight. The air route is expected to cut the two-hour commute between Dubai and Abu Dhabi, “one of the world’s most prominent and congested commute corridors,” the statement reads.

ICYMI: The General Civil Aviation Authority announced late last year a plan to launch air taxis by 1Q 2026. The project is a collaboration between the Abu Dhabi Investment Office and Archer Aviation following a partnership agreement inked in October.

Other air taxis will also take off in 2025: Dubai’s Road and Transport Authority inked an agreement last month with electric aircraft developer Joby Aviation to launch air taxi services in the UAE by early 2026. The manufacturer, which was also handed the rights to operate in the emirate for six years, plans to begin initial operations as early as 2025.

IN OTHER TRANSPORT NEWS-

Enoc to fuel Dubai Taxi’s fleet: Emirates National Oil Company signed a partnership agreement with Dubai Taxi to provide Dubai Taxi’s 7.8k vehicle fleet with refueling services, according to a statement. The agreement is set to cover Dubai Taxi’s entire fleet across all its service segments, including taxis, airport taxis, limousines, and delivery bikes.

Yalla Group earnings jump 43% y-o-y for 2023

Yalla Group posted USD 113.1 mn in net income in 2023, up 43% y-o-y, the company said in an earnings release. Revenues rose 5% y-o-y to USD 318.9 mn, on the back of chatting services, which raked in USD 211.8 mn, as well as gaming services revenues which contributed USD 106.7 mn. In 4Q 2023, the social networking and gaming company’s bottom line came in at USD 29.7 mn, marking a 79% y-o-y increase, on revenues of USD 80.9 mn, up 7.7% y-oy.

Looking ahead: Yalla expects 1Q 2024 revenues to range from USD 72 mn to USD 79 mn.

Amal Ahmed Al Suwaidi tapped as Sharjah Health Authority director

Sharjah’s Crown Prince and Deputy Ruler, Sheikh Sultan bin Mohammed bin Sultan Al Qasimi, has appointed Amal Ahmed Sultan Al Qatari Al Suwaidi as director of the Sharjah Health Authority, reports Wam.

Barakah One’s AED 8.89 bn refinancing gets green loan label

DEBT WATCH-

Barakah One’s AED 8.89 bn refinancing for its 5.6 GW nuclear energy plant has been recognized as a green loan in a nod to the plant’s contribution to the UAE’s green economy, according to the Abu Dhabi Media Office. The classification is the first in Asia and Africa for a nuclear plant, and second globally.

Background: The Emirates Nuclear Energy Corporation’s (Enec) financing and commercial subsidiary refinanced its existing loans for the plant with Abu Dhabi Commercial Bank and First Abu Dhabi Bank in July 2023 to convert the facilities into green loan financing.

ICYMI-Earlier this month, Enec’s operating and maintenance subsidiary Nawah Energy Company started up the plant’s fourth unit. The fourth unit has generated more than 60GWh of clean electricity. After starting full commercial operations later this year, the plant expects to offset some 22.4 mn tonnes of emissions with 40 TWh of generated electricity annually.

LOGISTICS-

#1-UAE to launch Blue Pass platform for maritime sector: The Energy and Infrastructure Ministry has inked an agreement with technology and digital services company NeoNautica to develop and operate the UAE Blue Pass platform, which provides facilities for the maritime sector, Wam reports. The platform offers maritime companies within the UAE and commercial ships at UAE ports with a package of privileges to promote the sector’s attractiveness to investors.

#2- DP World has added upwards of 100 offices to its global freight forwarding network, with Miami being the latest location to open, as the outfit looks to offer flexible and resilient supply chain solutions to clients worldwide, against a backdrop of increased disruptors to trade from climate change, geopolitical turmoil, and macroeconomic shocks, Wam reported. DP World’s freight forwarding network assists in the movement of some 10% of global trade.

AVIATION-

#1- Etihad, GCAA roll out aviation emission reduction framework: The General Civil Aviation Authority (GCAA) inked an MoU with Etihad Airways and French aerospace tech provider Thales to implement Thales’ orchestrator for eco-friendly trajectories solutions aimed at advancing environmental sustainability in the aviation sector, according to a press release. Thales’ service allows passengers to optimize their flight plans by choosing more efficient plans and adjusting their flight profiles.

#2- dnata receives CEIV accreditation for lithium battery handling: dnata was granted the International Air Transport Association’s Centre of Excellence for Independent Validators (CEIV) accreditation for its safe handling of lithium batteries, according to a Dubai Media Office statement. The accreditation makes dnata the first ground services provider to attain certification for all 11 of its worldwide stations.

HOSPITALITY-

Aman Group debuts in UAE with Aman Dubai: Swiss-based hospitality group Aman is set to open its first hotel in Dubai through a partnership with UAE-based real estate investment company Bright Start and real estate developer H&H Development, according to its website. The project, set to open its doors within three years, will be located in Jumeirah 2 and will include Aman-branded residences, a 2k sqm spa, restaurants, and an Aman club.

FINTECH-

You can now use your digital wallet to make purchases at Dubai Dutyfree (DDF), thanks to a partnership between DDF and TerraPay, the Fintech Times reports. The partnership allows DDF to tap into TerraPay’s network, covering over 2.2 bn mobile wallets globally.

EDUCATION-

The United Arab Emirates University inaugurated the first genetic counseling master’s program in the UAE,with support from Abu Dhabi’s Department of Health, reports Wam. The two-year program is being offered at the university’s college of medicine and health sciences under the genetics and genomics department, and aims to improve clinical counseling capabilities across several genetic disorders, including pediatric genetic assessment, prenatal diagnosis, cancer, and adult genetics.

Stock market rallies convince analysts of global risk reset

The S&P 500 hit another record high yesterday as traders looked past a US inflation report that saw prices rise faster than expected. Pundits don’t think the “last mile” surge of inflation will derail the US Federal Reserve’s plan to start trimming interest rates throughout the second half of the year.

Stock markets rallies make analysts believe a risk reset is around the corner: The world’s most prominent indices — S&P 500, Nasdaq, Japan’s Nikkei 225, Germany’s Dax, and others — have all notched record highs in recent weeks, cementing investors and analysts confidence and pushing some to let go of previously risk-averse approaches, the Financial Times writes.

“Everyone’s been anticipating a recession for a long time and it hasn’t materialized,”UBS Asset Management’s head of multi-asset strategy Evan Brown told the salmon-colored paper. “It’s like a reset of the risk cycle,” Brown added, pointing to previously risk-averse investors not jumping back into stocks. Driving investor confidence is the understanding that central banks across the world seem to have been able to reel back inflation without sparking an economic downtown — referred to by economists as the Goldilocks scenario.

Looking into the crystal ball: Goldman Sachs, UBS, and Bank of America (BofA) have all upgraded their year-end forecasts for the S&P 500, with BofA penciling in a 5% increase above current levels. Société Générale sees the Nasdaq 100’s earnings gaining 40% in 1H 2024, while Morgan Stanley expects pan-European indices to “keep rising like it’s 1995,” notching a 12% increase above current levels.

THE MARKETS THIS MORNING-

Asian markets are mixed in early trading today. Futures point to similarly mixed open for European shares later this morning, while US futures softened overnight after shares advanced yesterday.

ADX	9,228	-0.0% (YTD: -3.7%)
DFM	4,252	+0.1% (YTD: +4.8%)
Nasdaq Dubai UAE20	3,691	-0.0% (YTD: -3.9%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.1% o/n	5.3% 1 yr
TASI	12,613	+0.5% (YTD: +5.4%)
EGX30	32,661	-2.2% (YTD: +31.2%)
S&P 500	5,175	+1.1% (YTD: +8.5%)
FTSE 100	7,747	+1.0% (YTD: +0.2%)
Euro Stoxx 50	4,983	+1.2% (YTD: +10.2%)
Brent crude	USD 81.92	-0.4%
Natural gas (Nymex)	USD 1.71	-0.5%
Gold	USD 2,158	0.0%
BTC	USD 71,370	-1.2% (YTD: +68.5%)

THE CLOSING BELL-

The DFM rose 0.1% yesterday on turnover of AED 243.9 mn. The index is up 4.8% YTD.

In the green: Orascom Construction (+8.4%), Dubai Islamic Ins. and Reins. (+4.6%) and National Central Cooling (+4.3%).

In the red: Mashreq (-4.5%), Emaar Properties (-2.4%) and Islamic Arab Ins. (-1.9%).

Over on the ADX, the index stayed flat, on turnover of AED 935.7 mn. In Nasdaq Dubai, the index also stayed flat.

CORPORATE ACTIONS-

AI tech company Bayanat approved its legal name change to Space42, according to an ADX disclosure (pdf). The company will go by its new name after obtaining approval from relevant authorities on its merger with Yahsat.

UAE president and EU Commission president discuss bolstering relations

President Sheikh Mohamed bin Zayed Al Nahyan and President of the European Commission Ursula von der Leyen discussed UAE-EU cooperation and ways to bolster relations in a phone call yesterday, Wam reports. They also addressed several issues of mutual concerns, including the humanitarian crisis in Gaza. They underscored the significance of the joint effort by the UAE, Cyprus, the European Commission, Germany, Greece, Italy, the Netherlands, UK, and the US to create a maritime corridor aimed at delivering humanitarian aid to the Gaza Strip.

ALSO WORTH NOTING-

Foreign Affairs Minister Sheikh Abdullah bin Zayed congratulated the new Ethiopian Foreign Minister, Tay Atske Selassie,on his appointment and discussed enhancing bilateral relations and cooperation across various sectors. (Wam)

CALENDAR

MARCH

5-13 March (Tuesday-Wednesday): Subscription period for institutional investors for Parkin’s IPO.

21 March (Thursday): Parkin shares begin trading.

APRIL

TBC April: DRIFTx, Abu Dhabi.

9-10 April (Tuesday-Wednesday): End of Ramadan, public holiday.

8-12 April (Monday-Friday): Eid Al Fitr, public holiday.

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.

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

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

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

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

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

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

MAY

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

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

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

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

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

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

15 May (Wednesday): HFM Summit, DIFC.

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

JUNE

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

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

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

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

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

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

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

JULY

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

SEPTEMBER

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

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

OCTOBER

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

NOVEMBER

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

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

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

DECEMBER

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

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

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