More on Dubai’s AED 40 bn PPPs

1

WHAT WE’RE TRACKING TODAY

THIS MORNING: Vehicle insurers to hike premiums on the back of the storm + President to attend G7 meeting in June

Good morning, friends. It’s another busy morning on the diplomacy front, after President Sheikh Mohamed bin Zayed wrapped his visit to China, with a healthy dose of M&A and macro news to close out the week. Let’s dive in.

WEATHER- It’s another foggy morning in Dubai as we gear up for a high of 42°C and a sweltering 44°C tomorrow, with overnight lows ranging between 30-31°C. Abu Dhabi is still a lot cooler with a high of 37°C today and 34°C tomorrow.

WATCH THIS SPACE-

#1- Vehicle ins. premiums to see double-digit hikes: Vehicle owners will encounter double-digit hikes in motor ins. premiums as insurers introduce dynamic pricing based on how specific vehicle models performed during the floods and shift towards no agency repair options, Gulf News reports. InsuranceMarket.ae CEO Avinash Babur warns of average premium hikes of 20-25%, primarily driven by reinsurer pressure, affecting all major car models, including SUVs, in upcoming renewals.

Fleet vehicles are set to see ins. rates climb by 40-50% on the back of post-flood damage, with individual car owners facing hikes of 35-40%, especially pronounced in the secondhand market where rates have soared over 55%, an unnamed official at an ins. brokerage firm said.

Potential 2Q losses loom over ins. firms due to the surge in claims and financial strain on ins. companies, particularly those with weaker capital positions, Zawya reports. The deluge has prompted stock price declines across most insurers, with Dubai National Ins. experiencing a 27% drop and Abu Dhabi National Takaful experiencing a 20% drop, according to Century Financial Chief Investment Officer Vijay Valecha.

#2- HSBC is making a play in the private banking space, having hired 100 bankers last year for a push to “cater to the growing number of mn’aires and bn’aires moving to the Middle East,” Bloomberg writes, citing comments by Aladdin Hangari, who leads HSBC’s private banking push in our part of the world. Hangari namechecked the UAE, along with Saudi Arabia and Qatar, as areas of focus.

#3- President Sheikh Mohamed bin Zayed Al Nahyan is attending the G7 summit in Italy next month, alongside his Turkish counterpart Tayyip Erdogan and several other African and South American leaders, Reuters reports, quoting the Rome government. Saudi Arabia’s Crown Prince and Prime Minister Mohamed bin Salman could also be among those invited to attend the 13-15 June summit in Puglia, as the G7 looks to broaden the gathering beyond the US, UK, Canada, France, Germany, Japan, and Italy, to boost inclusivity, the newswire adds, citing an unnamed source.

HAPPENING NEXT WEEK-

#1- Dubai Chamber to head to Senegal, Morocco: The Dubai International Chamber will kick off a trade mission to Senegal and Morocco from 3 to 7 June 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 Senegal and Morocco, with a focus on exploring collaboration, expansion strategies, and forging new partnerships and trade agreements.

#2- 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.

THE BIG STORY ABROAD-

One single story captivates the attention of the foreign press this morning: Donald Trump is now the first US president in history to be a convicted felon, after being found guilty on all charges in the hush-money case.

Sentencing is set for 11 July, only days before the Republican party is expected to hand in its formal nomination of Trump ahead of the elections.

Is he going to prison? In short, probably not — experts do not expect him to face prison time. The normal sentencing for his crime is up to four years, but people charged with the felony of falsifying business records rarely face prison time, and his age and lack of a criminal record also boost his chances. His team is also expected to appeal the verdict, a process which can take months, Politico reports.

The story is on all the front pages: Bloomberg | Reuters | WSJ | FT | Washington Post

Can he still run for president? Yes, he is legally still able to campaign as a convicted felon, even if he is incarcerated.

Also putting the US in headlines: A Politico exclusive claims the Biden administration has allowed Ukraine to strike inside Russia using US weapons — near the area of Kharkiv — in self-defense in a development that threatens to see more US involvement in the war.

IN AI NEWS- Is the US slowing AI exports to the Middle East? US officials are reportedly conducting a “national review” of AI security in the Middle East ahead of issuing more licenses to chipmakers including Nvidia and Advanced Micro Devices to export more large-scale AI infrastructure to the region, Bloomberg reports. While the details of the review are not clear, sources say that Washington is looking to develop a “comprehensive strategy” around the deployment of US chips overseas and managing their security, amid rising tensions with China.

The good news? Cooperation with the UAE on AI export controls is going well, one of the sources said.

REMEMBER- The UAE is in line for big AI investments and exports from the US. Microsoft is investing some USD 1.5 bn in G42 to position the UAE as a “global AI hub,” and a “second phase” of the agreement could see the US tech giant exporting large-scale AI components from the US to the UAE, which will require licenses, we reported earlier. G42 has already cut ties with Chinese businesses in a bid to reportedly appease US partners, and there were suggestions it could also give up its use of Huawei telecom equipment.

ALSO HAPPENING CLOSE TO HOME- Aramco is pulling the trigger on a secondary sale of a 0.64% stake that could raise up to USD 12 bn on Sunday, it confirmed in a statement (pdf) yesterday. The oil giant set the price range between SAR 26.70 and 29 per share.

The value of the sale could go up to USD 13.1 bn at the top end of the range under a “greenshoe option” which could see the size of the offering go up to a 0.7% stake if fully exercised, according to the statement. The option would allow bankers to buy some of the shares to stabilize the price of the offering. The book building period will last until 6 June, the statement added.

A way to boost liquidity…: “The offering provides us with an opportunity to broaden the shareholder base amongst both Saudi and international investors,” Reuters quotes Aramco CRO Amin Nasser as telling reporters on a call after the announcement. “It also offers us an opportunity to increase liquidity and to increase our global index weighting.”

…and plug the budget deficit: The Kingdom is “resorting to the sale of equity in Aramco and to debt issuances,” Nasser is quoted as saying, citing its USD 21 bn budget deficit and its missed FDI target.

AND- Opec+ is reportedly working on a “complex” agreement to extend oil supply cuts through to the end of the year — and maybe next year — while agreeing to individual output capacity, Reuters reports ahead of the cartel’s Sunday meeting.

CIRCLE YOUR CALENDAR-

Abu Dhabi will play host to a big night for mixed martial arts fans on 3 August at Etihad arena. The UFC Fight Night will see the return of MMA champion Nick Diaz, who has been out of the limelight since 2021, as he goes head to head with Tony Ferguson, UFC CEO Dana White said. Also set to clash: Former flyweight champion Deiveson Figueiredo will face bantamweight title challenger Marlon Vera, while world number 2 bantamweight contender Cory Sandhagen will headline against Umar Nurmagomedov.

The International Sports Medicine Conference is set to take place from 24-27 October in Dubai, Wam reports. The event, which is being organized by the UAE National Olympic Committee, Emirates Society for Sports and Rehabilitation Medicine, and the Emirates Physical Therapy Association, aims to highlight the latest developments in sports medicine.

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

More details on Dubai’s AED 40 bn PPPs

39 PPPs up for grabs in Dubai: The Dubai government’s Department of Finance will offer up 39 projects worth AED 40 bn as public-private partnership projects (PPPs), Wam reported yesterday, citing Arif Abdulrahman Ahli, the executive Director of the budget and planning division. Slated for development over the next three years, the PPPs will span ten sectors, including water and sanitation, waste management, housing, healthcare, and public transportation, geared towards improving the quality of life in the emirate, Ahli said.

Background: Last March, Dubai greenlit the AED 40 bn PPP projects, covering “ten fundamental economic sectors.” The projects received approval during the first meeting of Dubai Executive Council since its re-establishment.

The breakdown:

Some AED 25.5 bn of the projects will be focused on the water and sanitation sector;
AED 5.3 bn of the projects will be in the waste management sector;
Projects for the arts and culture sector will have a budget of AED 2.8 bn;
AED 2.3 bn has been earmarked for housing projects;
AED 1.5 bn was earmarked for the healthcare sector;
Public transportation and urban development will have a total budget of AED 1.5 bn;
AED 648 mn will be allocated to roads and parking facilities;
and AED 540 mn will go towards public amenities, gardens, and services.

DP3 to oversee the projects: The department has set up a platform for tracking and managing the PPP projects, dubbed DP3. The platform will monitor the progress of the projects from initial planning and scheduling to their completion and the commencement of operations, Ahli said.

UAE economy to be a “top performer” in the GCC this year –World Bank

The UAE will be the “top performing” economy among GCC economies this year, with real GDP set to expand 3.9%, up from the 3.1% growth recorded in 2023, according to the World Bank’s latest Gulf Economic Update (pdf). Growth will outpace overall GCC growth, which is expected to come in at 2.8% in 2024 and 4.7% in 2025, according to the World Bank.

3.1%? Official data from the Federal Competitiveness and Statistics Center had pegged GDP growth at 3.6% last year, with oil GDP falling 3.1% and non-oil growth coming in at 6.2%, slightly different from the World Bank’s figures. According to the World Bank, non-oil GDP rose 5.4%, while oil GDP fell 2.7%.

The rationale: Oil GDP will grow 5.8%, while non-oil GDP is anticipated to grow 3.2%, buoyed by “strong performance in the tourism, real estate, construction, transportation, and manufacturing sectors,” the World Bank says. Overall GDP is expected to grow on the back of a “significant oil production hike” in the second half of the year, following a run of supply cuts enforced by Opec+ to stabilize prices.

Oil production hike? We know that OPEC+ is holding an online meeting next Sunday, where members of the alliance will discuss oil production output cuts and quotas for the rest of this year, Bloomberg reports. It is widely expected that the cartel will extend output reductions through 2H 2024 to stabilize the market and increase prices, with the decision to hold the meeting online reinforcing the expectation of continued cuts. Still, the UAE has been hoping to use up its spare capacity and is on track to hit its 5 mn barrels per day (bbl / d) oil capacity target — originally set for 2027 — by the end of 2025 or early 2026.

Growth will pick up again next year: The World Bank expects the economy to grow 4.1% next year, rising 0.2 percentage points from the current calendar year on the back of improved oil GDP. Oil output is “anticipated to ramp up aggressively” in the GCC in 2025, as Opec+ unwinds supply cuts.

The government’s fiscal surplus decreased by half to 5.6% of GDP in 2023 on the back of “decreased oil production as well as a decrease in government revenue from diminished tax and non-tax receipts,” the World Bank said.

On the upside, it is expected to maintain the highest fiscal surplus among GCC countries this year at 5.1%, on the back of an influx of revenues from the newly introduced 9% corporate tax, the report said.

Current account balance-to-GDP ratio came in strong at 9.1% last year — just a couple notches below the 11.7% that was recorded in 2022, and “supported by rising non-oil exports in tourism and trade service, from enhanced new trade agreements with key Asian and African markets.”

STRONGER REGIONAL GROWTH-

Growth in the GCC region is expected to pick up pace, with projections increasing from 0.7% in 2023 to 2.8% in 2024 and 4.7% in 2025, according to the World Bank. The region’s oil sector is forecast to grow at a 1.7% clip this year before “ramping up aggressively in 2025 to reach 6.9%,” while the non-oil segment is expected to expand by 3.6% in 2024.

Regional conflicts pose a downside risk: “Escalating regional conflicts could undermine investor confidence, disrupt trade, and impede growth,” the World Bank said, adding that “a slower-than-expected recovery in China may reduce oil prices and demand, adversely affecting both oil and non-oil sectors.”

Electra gets regulatory greenlight to acquire Egypt’s Elsewedy Electric

Abu Dhabi-based electrical equipment manufacturer Electra InvestmentHolding has gotten the regulatory nod to acquire a 24.5% stake in Egypt’s Elsewedy Electric from Egypt’s Financial Regulatory Authority yesterday, according to a statement (pdf) from the authority. Electra will pay USD 1.05 a pop — marking a premium to Elsewedy Electric’s Wednesday share price of EGP 44.3, and giving the transaction a value of USD 560 mn.

What’s next? Elsewedy Electric will need to tap a financial advisor and clarify the board’s decision within the next 15 days, according to the statement. The share sale will be conducted via the special operations market (OPR) within the next 20 days.

ICYMI- Electra submitted a voluntary purchase offer for up to a 24.5% stake in Elsewedy Electric last week, with the intention of acquiring at least 15% of the company for USD 1.05 per share. The Elsewedy family currently holds over 68% of the company’s shares.

Advisors: EFG Hermes is Electra’s sole financial advisor for the transaction, an informed source told Enterprise.

Rak White Cement gives nod to Ultratech’s stake acquisition bid

Ras Al Khaimah Co for White Cement will proceed with the regulatory procedures for Ultratech’s bid to acquire a 31.6% stake in the company after its board of directors reviewed the offer, according to an ADX disclosure (pdf). The Indian cement manufacturer had earlier this week offered to purchase around 158 mn shares at AED 1.15 per share through its UAE-based subsidiary, UltraTech Cement Middle East Investments.

Remember: UltraTech intends to expand the cement manufacturer’s operations locally and globally, and to introduce new products to Rak Cement’s production portfolio, such as wall care putty. UltraTech acquired a 29.39% stake in Rak Cement for USD 101 mn in 2022.

OTHER M&A NEWS-

The National Investor to offload AED 24 mn asset: Abu Dhabi-based The National Investor plans to sell an office floor situated in Reem Island to a subsidiary of one of its shareholders, Mazrui Real Estate, for AED 24 mn, according to a disclosure (pdf). The asset’s book value is AED 28.7 bn, representing 10.1% of the company’s total share capital. The transaction is expected to be closed during 3Q 2024, subject to receiving shareholders’ approval.

Credit demand remained robust in 1Q 2024 -CBUAE

Credit appetite and demand remained strong in 1Q 2024, bolstered by the positive economic outlook and a “resilient real estate market,” according to the CBUAE’s latest 1Q 2024 credit sentiment survey (pdf). The results — based on responses from 311 respondents representing licensed financial institutions in Abu Dhabi and the northern emirates — indicate a continuing trend of strong credit activity.

The impact of higher interest rates is “diminishing” gradually across the business and household lending segments, as “improving asset quality and economic outlook, stable credit-worthiness of borrowers and a solid economic backdrop” contribute to financial institutions’ willingness to lend, according to the survey.

Demand for business loans increased across all emirates, with Dubai recording the strongest demand growth, despite interest rates having a marginal negative impact on interest. Of the respondents, 53% reported an increase in demand, while 45.1% reported no change, with most of the demand coming from larger firms. Respondents anticipate demand for business loans to grow during 2Q 2024, particularly across the retail and wholesale trade, real estate, construction, and manufacturing sectors.

Underpinning demand: Improved economic conditions, working capital needs, as well as investment, were cited as the top three factors that drove demand during the quarter.

Appetite from banks also increased during the quarter to meet demand, especially towards larger firms as opposed to SMEs, according to the survey, which also suggests lending appetite will remain robust in 2Q 2024. Almost one third of respondents also reported an increase in the maximum size of credit lines.

Personal loan demand hit a record high in 1Q 2024, remaining strong across the country, especially in Abu Dhabi. The surge in demand was attributed to improved economic conditions, followed by rising incomes, and seasonal influences. Unlike business loans, interest rates had a positive impact on loan demand, potentially signaling softening loan terms.

People ❣️Shariah-compliant loans: Shari’ah compliant lending products saw the strongest demand on record, with demand surpassing that of conventional loans, the survey showed.

Looking ahead, personal loan demand is expected to pick up across all categories, particularly for credit card, personal housing, and car loans.

While economic outlook emerged as the key driver for banks offering personal and business loans, “competition from other banks, quality of banks’ asset portfolios, and change in credit-worthiness of borrowers,” followed as the main factors for lenders’ willingness to extend personal loans.

However, lenders rejected more personal loan applications during the first three months of the year. The slight uptick came on the back of a rise in rejected credit card and car loan applications, offset by a drop in house loan rejections.

Lending spreads were roughly unchanged across both personal and business loans, with 59.7% reporting no change in business loan spreads and 67.8% saying the same for personal loans.

Khazna to develop 30 MW Mafraq data center. Plus: Presight to boost digital infrastructure in Gambia

UAE-based Khazna will establish an advanced data center in Mafraq under a Musataha agreement with the Abu Dhabi Investment Office (ADIO), according to an Abu Dhabi media office statement. The Mafraq facility — which will have an initial 30 MW capacity — is slated to be operational in 2026 and looks to meet accelerating demand for data centers in the UAE and across the region, the statement said.

What is a Musataha agreement, anyway? The framework allows investors to build on government-owned property. Following the contract’s expiration, the land and any constructed facilities are transferred back to the government.

Khazna is well established in the UAE data center sector: The outfit operates 12 data centers across the UAE, with another 12 in the pipeline expected to add 300 MW in capacity over the next two years.

UAE has been on a data center roll: The UAE had 28 operating data centers in 2023, with another 26 under development.

OTHER TECH NEWS-

Presight to enhance Gambia’s digital infrastructure: G42 data analytics subsidiary Presight signed an MoU with the Gambian Communications and Digital Economy Ministry to support Gambia’s digital transformation under a two-phased partnership, according to a press release (pdf).

In detail: The first phase will see Presight develop the Gambian government’s digital services as well as its national digital identity initiative in a bid to streamline access to government data. Presight will also participate in establishing a national data center.

For the second phase, Presight will set up a national safety operations center and a digital supply chain security lab. The center will be focused on improving Gambia’s cybersecurity, while the lab will “ensure the integrity and security of digital transactions and communications, fostering a safe digital environment for businesses and citizens alike,” the press release reads.

Bildco approves FAB, AD Ports settlement agreements

Bildco to restructure FAB debt, approves settlement with AD Ports: Abu Dhabi National for Building Materials (Bildco) has approved a settlement agreement with First Abu Dhabi Bank (FAB), the company said in a ADX disclosure (pdf). Under the agreement, Bildco will receive a debt reduction of AED 35 mn and repay the remaining sum in quarterly installments over an eight-year period, the company said in a press release (pdf). Under the agreement, Bildco will provide one of its real estate assets as collateral.

AND- AD Ports drops lawsuit over rental receivables claim: The construction materials firm has also approved a settlement agreement with AD Ports resolving an AED 13.9 mn rental receivables claim. AD Ports will write off some AED 7.9 mn of the debt, with the remaining AED 6 mn to be paid in installments under a debt restructuring process, ending on 31 March 2025. The agreement saw AD Ports waive all lawsuits against the company.

What’s next? Bildco’s board will convene a general assembly meeting in the first week of July to finalize the settlement with FAB.

ADIA labeled strongest sovereign wealth brand by Brand Finance + RTA receives sustainability awards

The Abu Dhabi Investment Authority was labeled the strongest sovereign wealth fund brand, with a score of 63.9 out of 100 and an A+ rating, according to a new report from independent brand valuation and strategy consultancy Brand Finance. The state investor’s brand value was estimated at USD 561 mn.

Dubai’s Roads and Transport Authority (RTA) was recognized for its sustainability efforts, scooping the second-place award from Slovenia’s SEE Architecture and Interior Design Awards in recognition of its headquarters’ sustainable and remarkable architecture and design, according to a statement. The authority was also awarded a LEED Gold certification by the US Green Building Council for its Intelligent Traffic Systems Centre (ITS) in Al Barsha.

On overseas investments and the UAE as a trade hub

The Financial Times is out with a big read on the UAE’s increased influence as an investor in Africa, with the country pledging USD 97 bn in new African investments in 2022 and 2023. Investments targeted renewable energy, ports, mining, and real estate, and outpaced China — previously the largest investor in Africa — by more than three times. The UAE’s total investments in Africa stand at USD 110 bn, an unnamed UAE official told the newswire.

Growing UAE-China relations were the topic of conversation in CNBC’s interview (watch,runtime: 5:22) with Afshin Molavi, senior fellow at the Johns Hopkins University School of Advanced International Studies’s Foreign Policy Institute. “Chinese strategic planners seem to understand the commercial geography of the UAE well,” Molavi said, adding that UAE ports are considered “important crossroads” gridding to East Africa, South Asia, and across the Middle East. The UAE is China’s largest Arab non-oil trading partner, comprising 30%.

MBZUAI launches new LLM model + Yahsat in Zimbabwe

TECH-

#1- MBZUAI launches new LLM model: The Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) released a new open-source 65-bn parameter large language model (LLM), in collaboration with software companies Petuum and LLM360, Wam reports. The model — dubbed K2-65B — is trained on 1.4 tn tokens using Nvidia’s DGX Cloud, using 35% fewer resources than comparable LLMs. It is available without cost globally under the Apache 2.0 license.

The model outperforms Meta’s Llama 2 70B Chat in understanding and generating human-like responses, and is competitive against larger models such as GPT-4 in areas including mathematical and logical reasoning.

Not the UAE’s first LLM: The applied research division of Abu Dhabi’s Advanced Technology Research Council, the Technology Innovation Institute (TII), recently rolled out its new open-source GenAI model, Falcon 2 series, which included two open-source models that also outperformed Meta’s Llama 3 and was on par with Google’s Gemma.

TELECOMS-

Yahsat to boost Zimbabwe’s satellite connectivity: Satellite comms firm Yahsat signed a partnership agreement with Satcom Technologies to jointly work on satellite communications projects in Zimbabwe, Wam reports. The partnership will see Yahsat work alongside Satcom to provide the Zimbabwean government with satellite connectivity solutions, with services expected to begin in June.

PHARMA-

First Egyptian manufacturer to set up meds factory in Dubai Industrial City: Dubai business park operator Tecom Group has signed a Musataha land lease agreement with Egypt’s MD Pharma to set up a AED 130 mn integrated medical facility, marking the first investment by an Egyptian firm in the manufacturing hub and the first for an Egyptian pharma player in the UAE, according to a statement. The facility will span 23k sqft and is set to launch in 2025 and will cater to markets in the GCC and Africa.

HOSPITALITY-

YY Group sets up shop in the UAE: Singapore-based hospitality staffing and commercial cleaning services provider YY Group has launched operations in the UAE, appointing Ramy Attia as country director for UAE operations, according to a press release. The company aims to make its YY Circle Super App — which uses technology and the Internet of Things to optimize labor sourcing in the cleaning industry — the top-rated app in the local labor sourcing industry.

LOGISTICS-

AD Ports inked an MoU with the Economic Development Board of Madagascar to explore investments in the maritime, industry and logistics sectors in Madagascar, Wam reports. The two sides will look at potential cooperation on economic cities and freezones, ports, marina and cruise port facilities, digitizing logistics and maritime services, developing the fisheries sector, and the development of a maritime academy.

EDUCATION-

Education provider Gems Education will set up a branch for Gems Founders School in the Dubai South Residential District close to Expo Road, according to the Dubai Media Office. The new school is set to offer the British curriculum from FS1 to Year 8. The campus will span 250k sqft with facilities tailored for students aged 3 to 18. The school is set to open at the start of the school year in August 2024, with registrations starting 1 June.

DEBT-

Moody’s upgraded Dubai Electricity and Water Authority’s long-term issuer rating from Baa2 to A3, citing its market dominance, strong asset base and credit metrics, supportive tariff structure, and solid liquidity profile, a DFM filing (pdf) reads.

PROCUREMENT-

Ajman Transport Authority will now procure supplies digitally via the Tawreed platform, following a service provision agreement with Ajman’s Department of Finance, a press release reads. The transport authority will issue tenders, receive quotes, award bids, issue purchase orders and prepare invoices through the platform.

BUSINESS-

The Dubai Chamber of Commerce established the Kazakhstan Business Council to strengthen trade relations between the Dubai and Kazakhstan business communities, according to the Dubai Media Office. By the end of 1Q 2024, 589 companies from Kazakhstan were active members of the Dubai Chamber of Commerce.

AVIATION-

The General Civil Aviation Authority forged a strategic partnership with the International Civil Aviation Organization, focusing on developing future aviation professionals, Wam reports. The partnership involves attracting, training, and certifying new talent.

INS.

New AED 50 mn medical ins. plan for Sharjah: Sharjah ruler Sheikh Sultan bin Muhammad Al Qasimi has greenlit the new phase of Sharjah’s medical ins. plan for the emirate’s citizens, to be implemented with a total budget of AED 50 mn, Wam reports. The new plan will provide treatment for 5k citizens between the ages of 50-55 at the University Hospital. The previous phase involved providing treatment for over 9.6k beneficiaries, all above the age of 55.

What’s next? The next phase of the plan will provide medical treatment to some 8k citizens aged between 45 and 55.

MANUFACTURING-

Ta’ziz inks 31 land reservation agreements: Ta’ziz, the industrial zone under-development in Adnoc’s Al Ruwais gas field, has signed 31 land reservation agreements for its light industrial area with tenants from the manufacturing, logistics, maintenance and training services sectors, according to a press release. Located in different phases of Ta’ziz, the reserved land plots are expected to be handed over next year to provide manufacturing and industrial services for the Al Dhafra region.

About Ta’ziz: Upon completion, the Ta’ziz industrial zone will cover 226 sqm of warehousing spaces and will include 249 serviced plots spread across 3.71 sqkm. The light industrial area is anticipated to reel in AED 1 bn in investments and create thousands of job opportunities.

LEGISLATION-

Dubai digitizes judicial procedures: Dubai Courts has launched a program designed to streamline and digitize judicial procedures, dubbed Tanfeeth+, Wam reports. The platform will offer services like a digital seal to facilitate enforcement of court rulings, a disclosure platform to provide judges with information on defendants’ assets to allow them to issue seizure warrants directly, and a service for automatic cancellation of enforcement orders that revokes court orders and lifts seizures once payment verdicts are completed.

Other services include: Automatic disbursements into claimants’ registered bank accounts, virtual bank accounts for direct deposits of seized assets, a system for notifying order executors about seized assets that are up for sale, and an integrated platform with the Interior Ministry to directly inform the executive authority of travel bands and property seizures.

RETAIL-

Abu Dhabi launches AED 1.3 Reem Mall: Abu Dhabi’s latest shopping development, Reem Mall, was inaugurated on Wednesday, according to a press release. Built with an investment of AED 1.3 bn, the mall covers 186k sqm of leasable area and features Abu Dhabi’s first indoor snow park as well as over 400 retail stores.

Asian investors and businesses look to de-risk from the United States amid rising US-China tensions

Asia’s wealthy seek to hedge against Uncle Sam: As geopolitical tensions between China and the US escalate, investors and businesses in Asia are increasingly seeking ways to diversify away from America, Reuters reports. Driving the fears is the concern that US banks and businesses may be pressured into stepping back from business in the region, whose economy is thoroughly entwined with China.

It takes two: US firms and investors have for years been looking to reduce their reliance on China and strengthen the resilience of supply chains by also investing in other countries in addition to China. But now, US companies and investors that have long pursued the “China plus one” approach are coming across their counterparts in Asia pursuing their own “America plus one” approach.

All roads lead to anywhere but the US: Asian companies are now looking towards our part of the world for funding and towards South East Asia to build factories. The region’s business community is also reconsidering its relationship with the world’s reserve currency, and are now beginning to look elsewhere to reduce their dependence on the USD, according to the newswire.

But don’t expect to see Asia de-dollarize overnight: Despite ongoing negotiations between the central banks of China, Hong Kong, Thailand, and the UAE to start settling cross-border transactions in local currencies and a steady turn away from the Asia and world’s reliance on the USD, the USD still accounts for some 60% of global FX reserves.

ALSO WORTH NOTING FROM PLANET FINANCE-

The International Monetary Fund sees China’s economy growing 5% this year, up from its previous forecast of 4.6% growth for the world’s second largest economy. However, the Fund warned that growth would slow to 4.5% next year, and to 3.3% by 2029 due to “an aging population and slower expansion in productivity.” (Reuters)

All 82 economists in aReuters poll see the European Central Bank cutting interest rates in June, with a majority also forecasting further cuts in September and December.

MARKETS THIS MORNING-

Asian markets are in the green amid a slew of fresh economic data, including industrial output figures and inflation in Japan. Leading gains is South Korea’s Kospi, up 1.07% in response to an uptick in industrial output data. Japan’s Nikkei 225 is also up 0.23%, with the broader Topix index gaining 0.7%.

ADX	8,752	+0.5% (YTD: -8.6%)
DFM	3,971	+0.3% (YTD: -2.2%)
Nasdaq Dubai UAE20	3,328	+1.2% (YTD: -13.4%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.1% o/n	5.4% 1 yr
TASI	11,503	-1.7% (YTD: -3.9%)
EGX30	26,922	-0.6% (YTD: +8.2%)
S&P 500	5,235	-0.6% (YTD: +9.8%)
FTSE 100	8,231	+0.6% (YTD: +6.4%)
Euro Stoxx 50	4,982	+0.4% (YTD: +10.2%)
Brent crude	USD 81.86	-2.1%
Natural gas (Nymex)	USD 2.56	-0.4%
Gold	USD 2364.6	-0.1%
BTC	USD 68,374.33	+1.20% (YTD: +61.6%)

THE CLOSING BELL-

The ADX rose 0.5% yesterday on turnover of AED 1.1 bn. The index is down 8.6% YTD.

In the green: Bildco (+14.6%), Ras Al Khaimah Ins. (+11.1%) and Apex Investment (+11.1%).

In the red: Gulf Cement (-6.2%), Al Khaleej Investment (-6.0%) and Agility Global (-4.4%).

Over on the DFM, the index rose 0.3% on turnover of AED 368.9 mn. Meanwhile Nasdaq Dubai closed up 1.2%.

CORPORATE ACTIONS-

Real estate firm Manazel has approved a capital increase of AED 520 mn, through offering 520 mn new shares at AED 1 apiece to its existing shareholders and external investors, according to an ADX disclosure (pdf). The new shares issuance will bring Manazel’s total capital to AED 3.12 bn, up from AED 2.6 bn.

BHM Capital’s contract as Al Ansari Financial Services’ liquidity provider for its shares on the DFM will lapse on 28 June, according to a DFM disclosure (pdf). Both firms have mutually agreed not to extend it for another term.

UAE president encourages Arab-Chinese cooperation in Beijing + dual tax agreement with Qatar

UAE President Sheikh Mohamed bin Zayed Al Nahyan called for more Arab-Chinese cooperation at the Ministerial Meeting of the China-Arab States Cooperation Forum in Beijing, Wam reports. Alongside Chinese President Xi Jinping and Arab leaders, Sheikh Mohamed underscored solidarity in tackling challenges and the urgency for peace amidst tensions in the region, particularly in Gaza.

In context: China is seeking to cement its position in the region through brokering peace, Reuters reports. President Xi Jinping called for a two-state solution during the forum and an immediate cessation of hostilities in Gaza while addressing the Arab leaders.

The two countries signed several MoUs to cooperate in various sectors, Wam writes. The agreements spanned infrastructure and cooperation on the belt and road initiative, media, nuclear energy, maritime certifications, science and technology, intellectual property, tourism, investment, green development, cultural exchange, health, education, language education, and statistical cooperation.

PLUS- UAE, Qatar sign pact to prevent double taxation: The UAE and Qatar have signed an agreement to eliminate dual taxation, aimed at preventing tax evasion, according to a statement. This agreement, signed on the sidelines of the GCC Financial and Economic Cooperation Committee meeting, brings the total double-tax treaties the UAE has inked to 146 treaties, Al Khaleej reports.

OTHER DIPLO NEWS-

Secretary General of Emirates Media Council Mohammed Saeed Al Shehhi discussed with Jordanian Communications Minister Muhannad Mubaidin cooperating to jointly develop and implement the Arab strategy for media and information literacy. (Wam)

My Morning Routine: Hamda Al Shamali, group chief people and intellectual capital officer at Mashreq

Hamda Al Shamali, chief people and intellectual capital officer at Mashreq: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Hamda Al Shamali (LinkedIn), group chief people and intellectual capital officer at Mashreq. Edited excerpts from our conversation:

I’m the group chief people and intellectual capital officer at Mashreq. I used to be an accountant, then I was a relationship manager for seven years. I worked both in the frontline and the back office as a credit analyst, and then I moved to project management, which was more of corporate sustainability responsibility (CSR) for a couple of years before I was picked for HR. Then I fell in love with HR and here I am.

We look at how we can embed the concept of people in everything that we do, from the time that we design a process to when we launch a product. Our focus at the bank is creating an exceptional customer experience, so how can we create an employee experience that’s no less exceptional? That’s from the time we pick up the phone and speak to a candidate, to the time that someone decides to leave the organization and how we exit that relationship. We look at the whole holistic journey.

We look at everything from talent acquisition to intellectual capital and organizational development, which takes care of the learning element. We look at the gaps in terms of where we want to be as a business and how we’re going to invest in that. For example, everyone in the organization has to go through AI training now. It is part of us upskilling people for the future. We’re creating the pipeline for the future CEOs of the banking industry.

We have completely reshaped our employee engagement journey. We focus on physical, mental, and financial health of our employees as well — the full reward philosophy.

Digital transformation is another important vertical. We look at how to move everything under one umbrella and enhance the journey. We cannot talk about a seamless or positive employee experience if everything is manual and offline.

AI can add more value to people’s careers and lives. Efficiency is the short-term vision, but in the long-term, how can AI add value? Things can become routine and very administrative, and some tasks do not necessarily add value to the employee. Younger generations get bored very easily, and they can’t sit still in one job, so AI takes that load and allows people to create more meaningful journeys for themselves.

Before we shape our department and agree on our priorities and how we want to structure it, we spend a lot of time talking to people. For the first two or three months after I joined, all I did was talk to people. I spoke to random people at different levels so I can put the jigsaw pieces together and get the full picture. We don’t sit on our ivory tower and design what we think is right; we go and have the conversations. I listened to you. I took it back home. I processed it. Now I have this product. Does it work for you or not? And then we work together on delivery.

I hear more positive feedback now, and our employee engagement levels are at 91%, with high participation rates of 86% as well. Some groups have achieved 100%.

The biggest misunderstanding about our job is that we’re against people, and that we are here to make their lives difficult. We have to always bear in mind the disciplinary culture that we need to bring as well. While I do take care of you as a person in the organization, and I definitely have your best interests at heart, there is also some discipline that we need to create in terms of managing the culture and expectations, and being consistent and fair to everyone.

I wake up at 5am. Six months ago, I used to go to the gym and spend an hour and a half there with a personal trainer. I used to do CrossFit. I would then get ready at the gym and go to the office by 8 or 8:30am at the latest. I’ve recently stopped going to the gym, but I still wake up at the same time.

What I’ve learned very recently is to do one thing at a time. As much as we say we will multitask, it exhausts you as a person. Sometimes you have to sit back and decide, “today, I’m not going to touch this because it’s not the end of the world.”

When I’m back home at the end of the day, I spend the time with the family. I live with my mom, and every single night, the entire family comes — all the brothers and sisters — come over. By 10pm, I go to my room, and normally I would sleep, but I’ve recently realized that there are a lot of books on my shelf that I’ve abandoned, so I started spending an hour at night reading.

I read history, and I like fiction. I also read different religious books, because I love learning about new cultures, so when I connect with people, I find a common ground. I’m currently reading What the Day Owes the Night by Yasmine Khadra. It talks about Algeria and North African countries during the occupation of the Italians and French. It focuses on the story of two families who are parted — one goes with the French occupation and another that stays with the resistance. I’ve also enjoyed I Let You Go, which talks about a mother who lost a child in a car accident.

I only watch CSI movies [laughs]. Currently, I’m watching a channel on OSN that features real crimes. I feel like it makes my brain work and analyze, and keeps it active.

What’s next for me is I want to go back to CSR in a few years. Africa would be my first destination. I also want to go to North Pakistan, Afghanistan, Iraq, and Egypt. I’ll partner with a foundation focused on education, because I want to focus on education of underprivileged people.

My favorite piece of advice is don’t take things to heart. Keep the smile on your face always. No matter what you see from people, give them the benefit of the doubt.

CALENDAR

MAY

28 May-4 June (Tuesday-Tuesday): Subscription period for retail investors for Alef Education’s IPO.

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

JUNE

1 June (Saturday): Deadline for TiE Women MENA Programme 2024 applications.

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.

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.

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.

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

Sections

About

Privacy & Support

Get EnterpriseAM daily