NMDC Energy to tap ADX with AED 3.22 bn IPO

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Abu Dhabi to get hydrogen-powered buses next month? + Dubai claimed the ninth spot on Lloyd’s List’s top 100 ports list

Good morning, friends. We have a big issue for you this morning, led by news of what could be the biggest IPO of the year, and an update on Adnoc’s blockbuster Covestro takeover bid.

WEATHER- The humidity is still fogging up our windows in Dubai, with the mercury set to peak at 42°C before cooling to an overnight low of 34°C. It’s a similar story in Abu Dhabi, where humidity levels are sky-high and temperatures will hit 37°C, before cooling to 33°C.

HAPPENING NEXT WEEK-

CBUAE to auction AED 17.5 bn m-bills: The Central Bank of the UAE (CBUAE) will offer up to AED 17.5 bn in four m-bills at an auction on Monday, 2 September, according to a statement (pdf) from the bank. Three of the m-bills are tap issuances, with the four having tenors ranging from 28 to 294 days.

Decoding central bank speak: M-bills are short-term securities issued in AED by the CBUAE at no interest. The bonds typically have maturity dates of one to 12 months and are not retrievable through any other listing. A tap issuance allows the CBUAE to more finely control money supply by allowing it the flexibility to continue selling bills past the initial auction date.

WATCH THIS SPACE-

#1- Electric and hydrogen-powered buses will join Abu Dhabi’s public bus fleet next month, with charging stations already placed at the bus depots, Head of Sustainable Mobility at the emirate’s Integrated Transport Centre Anan Alamri said at a Khaleej Times forum. The number of buses and their routes were not disclosed.

IN CONTEXT- The zero-emission buses are a part of Abu Dhabi’s target to convert 20% of public transportation to emission-free by 2030 and reach 100% by 2050.

#2- India plans to import 160 tons of gold from the UAE in FY 2024-25, up from 140 tons the previous year, Business Standard reported, citing an official. Under the two countries’ trade and economic partnership agreement, India had agreed to import up to 200 tons of gold annually from the UAE with a 1% tariff concession.

Remember: India requested a review meeting last week with the UAE to discuss key provisions of their trade agreement, following concerns around the potential revenue losses that India could incur once tariffs on silver and gold are eliminated under the current agreement.

#3- Dragon Oil is exploring new potential areas to ramp up production in Turkmenistan to boost production, Wam reports. This includes potentially acquiring additional offshore concessions, such as Dongolok and Block 20, as well as boosting production in the west of Zhdanov field and Block 19, during meetings with top Turkmen officials, including Deputy PM Batyr Amanov.

ICYMI- Dragon Oil plans to develop three new offshore oil fields in Turkmenistan under an agreement signed with Turkmenistan’s national oil company Turkmennebit in January. The agreement will see the Emirati oil firm develop three fields within Block 19, near the Çeleken concession.

DATA POINTS-

#1- Dubai ranked ninth in Lloyd’s List’s 100 container ports ranking, outperforming Rotterdam and Hong Kong, and up two spots from last year’s ranking. Abu Dhabi’s Khalifa port came in 40th place this year compared to its previous ranking of 47 last year.

#2- Dubai and Abu Dhabi were named the best destinations for digital nomads, according to a Savills report seen by Bloomberg. The report included 25 residential markets, ranking them based on internet speed, quality of life, climate, air connectivity, and rental prices. “People want the best of both worlds — a seaside lifestyle with the city amenities,” research associate Kelcie Sellers said. “Most of the top 10 fall into that category, and the desire for this type of location has increased in recent years.”

#3- Dubai landed in the fourth spot globally among top destinations for vacation rentals in 2023, according to a Skift report cited by Emarat Al Youm. The emirate's vacation rentals market grew 61% y-o-y last year, the report showed.

THE BIG STORY ABROAD-

The international business press is uniformly leading its front pages this morning with Nvidia’s earnings, which we unpack in Planet Finance, below.

Also getting prominent coverage this morning: Telegram CEO and founder Pavel Durov was charged in France for being complicit in the spread of inappropriate images of children on the platform, in addition to complicity in illicit transactions, fraud, and drug trafficking. Durov was also charged with failure to comply with authorities on investigations into illegal activities happening on Telegram. French authorities ordered Durov to post EUR 5 mn bail and banned him from leaving the country. Durov was arrested on arrival in France earlier this week. (Bloomberg | Financial Times | Wall Street Journal | Washington Post | New York Times)

PLUS- OpenAI is in talks for another funding round that would give the ChatGPT maker a valuation of more than USD 100 bn, the Wall Street Journal reported. OpenAI is currently valued at USD 86 bn. The company is in talks with Thrive Capital — which alone could invest USD 1 bn — and other investors for its first funding round since the release of ChatGPT in early 2023. CNBC and the Financial Times also have the story.

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CIRCLE YOUR CALENDAR-

du’s annual tech event Envision will take place on 5 September at the Atlantis the Royal in Dubai, the Emirati telecom company said in a statement picked up by Zawya. The event will host policymakers and industry leaders to explore the use of 5G, cloud, AI, and data analytics across various sectors, including manufacturing, healthcare, education, real estate, banking, transport, and agriculture.

The International Government Communication Forum is scheduled to take place on 4-5 September at the Expo Centre in Sharjah. Held under the theme “Agile Governments, Innovative Communication,” the two-day event will gather government officials, media experts and professionals, and industry players to discuss and showcase strategies and tools for innovative communication to advance media policies across various sectors, Wam reports.

The PPP MENA Forum will take place on 10-11 September at the Jumeirah Emirates Towers in Dubai. Sponsored by the Abu Dhabi Investment Office, the two-day event will bring together senior policymakers, investors, and business executives from the UAE, Saudi Arabia, Kuwait, and Oman to discuss the latest financial and regulatory developments in PPP frameworks and explore means to advance PPP initiatives in the region.

The inaugural Dubai AI & Web3 Festival will be held on 11-12 September at Madinat Jumeirah. Organized by Dubai International Financial Centre (DIFC), the event will host over 100 exhibitors and will welcome some 5k tech industry experts and entrepreneurs to explore and discuss investment, collaboration and innovation in the tech sector.

An inaugural Gitex Digi Health 5.0 conference will take place from 11 to 12 September in Singapore, under a new partnership between Dubai-based tech and startup event Gitex and Medical Fair Asia, which is similarly set to kick off from 11 to 13 September in Singapore, according to a press release picked up by Zawya. The conference aims to advance digital health across Asia, covering topics including AI, telemedicine, digital health solutions, and the impact of emerging technologies on healthcare.

Event speakers will include representatives from Dubai Health Authority, Singapore's Health Ministry, UNICEF, and leading global health tech companies.

The World Air Taxi Congresswill be held on 7-10 October at the Grand Hyatt Dubai Convention and Exhibition Centre. This year’s event will gather clean technology aircraft OEMs, start-up operators, buyers, investors and regulators, to discuss the future of air transport.

Tour de France is coming to town: Dubai will play host to the inaugural L’Etape Dubai cycling race as part of the global Tour de France series on 2 February 2025, Wam reports. The two-day event will welcome over 2k cyclists from around the world to participate across two main races (a 110 km race and 60 km ride), as well as a kids race and family ride. Registration for the races is open, with deadlines set for 30 September for the 60km race and 31 December for 110m.

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

NMDC to list 23% of EPC unit on the ADX in AED 3.22 bn IPO

NMDC to kick off NMDC Energy’s IPO subscription process tomorrow: The National Marine Dredging Company (NMDC) will list 23% of its shares in its engineering, procurement and construction unit, NMDC Energy, on the ADX, after receiving approval from the Securities and Commodities Authority and the ADX, according to a regulatory filing (pdf). The value of the shares on offer is AED 3.22 bn, with the share price set at AED 2.8, the company said. NMDC’s board approved the IPO in its meeting earlier this week.

The timeline: The subscription period will begin tomorrow and wrap on 4 September, with the shares expected to be listed on the ADX on 11 September.

The breakdown: Retail investors are allocated 2.17% of the shares, while institutional investors are allocated 85.43%. The remaining 12.39% will be allocated to a cornerstone investor, Al Ataa Investment, subject to the general assembly’s approval. This will be in exchange for certain plots of land allocated for commercial investment from a special purpose vehicle dubbed HMR Investment.

Background: NMDC has several projects in the pipeline across the GCC, with a backlog of AED 54 bn of projects, according to the statement. This includes a USD 254.6 mn contract with Adnoc to establish a new gas pipeline and its associated facilities. The company will also establish a USD 100 mn fabrication manufacturing facility in Abu Dhabi’s Khalifa Economic Zone (Kezad).

ADVISORS- First Abu Dhabi Bank is the lead receiving bank and lead manager on the IPO, with Abu Dhabi Commercial Bank, WIO Bank, and Al Maryah Community Bank also acting as receiving banks. The lead placement agent will be International Securities, while Hadef & Partners will act as legal counsel and Ernst & Young will be the auditors.

This will be only the second IPO on the ADX this year: Edtech firm Alef Education is so far the ADX’s only IPO of the year, raising AED 1.89 bn — making it the biggest this year — but seeing a lackluster debut, with shares falling 18% on its first day of trading. Its shares are still trading below its final IPO price at AED 1.24 as of market close yesterday.

There’s more in the pipeline: The exchange could see the Gulf’s first airline IPO, courtesy of Etihad Airways, which has already tapped advisors for the sale, alongside supermarket chain LuLu group. Abu Dhabi National Hotels (ADNH) has also tapped Citigroup and First Abu Dhabi Bank to work on a planned IPO for its catering business ADNH Catering, while Alpha Data could tap the bourse this year.

Adnoc to move forward with Covestro bid next month?

One step closer to Adnoc’s Covestro takeover: Abu Dhabi National Oil Company (Adnoc) is nearly done with due diligence on its EUR 11.7 bn (AED 47.82 bn) bid to acquire German chemicals company Covestro, with the oil giant poised to advance with the offer formally as early as September, Bloomberg reports, citing sources familiar with the matter. Adnoc has reportedly completed extensive site visits to Covestro’s facilities and found no major issues.

An update from Covestro is expected soon: The German firm’s CFO Christian Baier said last month that talks with Adnoc were progressing constructively, with an update on the acquisition bid expected “relatively soon.”

What’s next? While due diligence is nearing completion, the takeover bid still awaits approval from senior Adnoc executives, a process that could extend for several more weeks, according to Bloomberg’s sources.

Market reax: Covestro shares surged 5.7% on the Frankfurt Stock Exchange yesterday, reaching EUR 56.9, their highest intraday level since January 2022.

REMEMBER- The Emirati state-owned oil company raised its takeover bid to EUR 11.7 bn, or EUR 62 (AED 253.1) per share, in June. Adnoc said this would be its final offer, after revising its bid three times during the talks, which have been ongoing for over a year. If the transaction goes through, it will be the biggest acquisition from a Middle Eastern buyer in Europe in 16 years.

Dubai Aerospace Enterprise acquires 23 aircraft for USD 1.1 bn

Dubai Aerospace to acquire 23 aircraft for USD 1.1 bn: Dubai Aerospace Enterprise (DAE) inked agreements to acquire 23 aircraft from several entities for USD 1.1 bn, according to a press release (pdf). The agreements are set to be finalized by the end of 2024.

The details: Once the aircraft are acquired, DAE’s portfolio will have a weighted average age of 3.4 years, with a weighted average lease term of 8.8 years remaining. These planes are leased to 13 airlines in nine different countries. More than 90% of the aircraft are narrow-bodies, DAE sources told the National. DAE will also see the addition of six new airline customers to its base through the new acquisition.

Eyes have been on DAE: DAE owns a fleet of nearly 500 Airbus, ATR, and Boeing aircraft valued at USD 18 bn. Delays in new jet deliveries from Boeing and Airbus are bearing fruit for DAE services, with maintenance, repair, and overhaul (MRO) requests surging, with the company saying it is booked solid for 18 months. Turkish Airlines is among the carriers who have leased aircraft from the lessor, leasing ten Boeing 737-8 aircraft, slated for delivery in 2025.

The company recently bagged fresh financing: DAE said in April that it is set to receive an AED 2.75 bn five-year unsecured term loan with Emirates NBD to support the state-owned firm’s general corporate needs and future financing requirements. The firm also said in March that it was set to receive USD 420 mn back in fresh funding from China Construction Bank (CCB) to strengthen its liquidity position.

About DAE: DAE is a global aviation services firm with two divisions, DAE Capital and DAE Engineering, according to the company’s website. DAE Capital is an aircraft lessor with a fleet of some 550 aircraft worth more than USD 18 bn, according to the press release. DAE Engineering provides maintenance, repair, and overhaul services to clients across Europe, the Middle East, Africa, and South Asia.

The latest in a string of aircraft acquisitions: Emirates is uptaking five Airbus A380s from Doric Nimrod Air for GDP 30.7 mn a piece, to be paid by 1Q 2025, with the acquisition set to be complete between 1 October and 30 November this year.

UAE banks’ lending rose 3.4% q-o-q in 2Q 2024

UAE-listed banks had a strong 2Q 2024 compared to its GCC peers, topping the region in terms of lending growth, return on equity, and net interest margins, while also logging the lowest cost-to-income ratios and the steepest drop in loan impairments in the region, according to a Kamco Invest report (pdf).

Lending accelerated 3.4% q-o-q to USD 554.1 bn in net loans, fueled by robust lending activity for the retail sector, the report said.

Emirati-listed banks also recorded a 16.9% return on equity (ROE), up from 16.7% in 1Q 2024, and posting a 160 bps y-o-y growth. Growth was driven by high net incomes and modest growth in shareholders’ equity.

Net interest margins came in at 3.47% in 2Q 2024, indicating “ample liquidity that allows UAE banks to capitalize on the tightening interest rate cycle with more modest asset growth,” Kamco said. Margins inched down from 3.49% in 1Q.

Cost-to-income ratios and loan impairments were down: UAE banks reported the lowest cost-to-income ratio in the GCC, dipping to 38.2% in 2Q from 38.4% in 1Q 2024. Loan impairments also saw the steepest drop among GCC banks, falling 27% q-o-q, to USD 380 mn. UAE banks contributed to the GCC banking sector’s total impairments sliding to USD 1.9 bn, the lowest recorded level in 33 quarters, according to Kamco.

REMEMBER- UAE banks’ gross credit hit AED 2.1 tn during the first two months of 2Q 2024, rising by 1.5% by the end of May. This growth was primarily driven by a 1.9% increase in Islamic banks’ lending, while conventional banks’ credit grew at a slower pace of 1.4%.

THE REGIONAL PICTURE-

GCC banks posted a record high of USD 14.8 bn in net income in 2Q 2024, rising 9.2% y-o-y and 2.6% q-o-q on the back of the sharp drop in loan impairments. GCC banks’ aggregate ROE climbed to 13.6% in 2Q 2024, matching pre-pandemic levels and reflecting a 70 bps y-o-y growth. Saudi and Qatari banks followed the UAE in ROE growth at 12.8%, while Kuwaiti banks’ ROE remained at 10.4%.

After dipping 4.5% in 1Q, the regional banking sector saw a rise in operating expenses to one of the highest on record, inching up 0.8% q-o-q to USD 12.55 bn. The uptick was driven by a 7.5% expense hike in Saudi Arabia’s banking sector to USD 4.2 bn.

GCC banks’ aggregate net interest margins held steady at 3.2% for the fifth consecutive month, signaling that it has peaked already as elevated interest rates over the past year are now fully priced in.

With surging funding costs and anticipated rate cuts, net interest margins are expected to “come under pressure” unless they were offset by “cheaper sources of funding and continued growth in lending,” according to Kamco.

Where prices are heading in Dubai’s red-hot property market, the future of demand in Dubai South, and more

Where Dubai’s red-hot property market is heading, according to Mashreq’s Zain Qureshi: We’re nearly two thirds into the year, and speculations around where the property market in Dubai is going have yet to abate. The off-plan market has been red hot, as have rentals. And it’s not very different over in other emirates like Abu Dhabi, Sharjah, and Ras Al Khaimah, where investors — many foreign — have been pouring their funds.

We spoke with Mashreq’s global head of real estate finance and advisory, Zain Qureshi, to gauge what demand has looked like over the past eight months, what he expects for prices through to the end of the year and early next year, and a lot more.

Price growth over the past eight months has “exceeded” Qureshi’s expectations, he tells us. The momentum from last year has continued, with off-plan sales thriving over the past six months in particular, he added. Off-plan sales in Dubai alone have drawn in some AED 103.8 bn — accounting for a third of transactions during the period, Qureshi said.

Safety, regulatory openness and investor-friendliness have all boosted demand: The momentum has been driven mostly by a surge in demand post-covid for the golden visa, the UAE’s reputation as one of the safest countries in the world, and its ease of doing business, Qureshi explained.

Luxury buys are still a major attraction: The country’s plethora of luxury offerings has also drawn plenty of high net worth individuals in, which can be seen in the increase in demand for luxury properties in Dubai and Abu Dhabi. Luxury and uber luxury properties currently account for some 12-15% of the market, Qureshi said.

This is mainly because even though they’re luxury, they’re “affordable” in the eyes of foreign investors when compared to counterparts in cities like New York, London, and Hong Kong, Qureshi explained. Not only is much of the market USD-denominated, returns on investment in the market range between 5-9%, he explained.

We’re seeing spillover in rentals to the northern emirates: Rental increases have pushed some residents to the northern emirates, which have seen an increase in demand as of late, he added.

REMEMBER- Annual growth rates in Dubai’s rental market slowed to single digits in 2Q 2024, with villa rental rates growing 4% y-o-y and apartments at 8% y-o-y, property management firm Asteco said recently. During the full 1H, CBRE estimates rents to have increased around 21% y-o-y. Average residential prices in Dubai jumped 21.3% y-o-y in 1H 2024, with apartment prices increasing by 20.7% y-o-y, and villa prices increasing by 24.3% y-o-y.

There’s also spillover on the commercial side: Dubai International Financial Center has seen a substantial increase in demand for grade A office space, which has caused a spillover into Abu Dhabi Global Market, Qureshi said. Limited supply in the industrial market in Dubai has also led to a certain degree of spillover in demand to more accessible areas in the northern emirates, he added. Still, a fair share of land has been snapped up by “top-tier developers” for industrial development this year, he said.

The supply gap won’t let up soon: “The supply crunch is expected to remain in the short to mid term, with an expected 261k of new homes due by 2029, which equates to 43.5k new units each year for the next six years,” Qureshi said, adding that he expects this supply to be absorbed in the market.

Despite the supply increase, a slowdown in sales and price growth could take place in certain pockets of the city as part of a 5-10% price correction cycle sometime in the next 18 months, he noted, adding that geopolitical tensions could potentially affect the market.

Expected interest rate cuts later this year will also drive end-user demand as installments become more affordable, with buyers potentially shifting towards mortgage as the preferred payment model, he added.

LOOKING FURTHER AHEAD-

Expect to see a lot of demand for Dubai South: “We have seen an increase in development activities, as well as sales transactions in Dubai South,” Qureshi said, adding that the expansion of Al Maktoum Airport should improve the infrastructure and connectivity around the area and drive more demand for residential and commercial properties.

Five Holdings reports growth in hospitality revenues in 2Q 2024

Dubai-based hospitality and real estate developer Five Holding’s net income after tax attributable to owners fell 56% y-o-y to AED 40 mn in 2Q 2024 on the back of an increase in hospitality revenues, according to a its financials (pdf). Adjusted net income for the period also fell 26.4% y-o-y to AED 87.4 mn. Meanwhile, revenues grew 36% y-o-y to AED 545.8 mn.

Hospitality revenues drove growth: The company saw hospitality revenues double to AED 448 mn in 2Q 2024, according to a disclosure on Nasdaq.

New units also helped boost revenues: The second quarter of the year marked the first in which all of the Pacha properties in Five’s portfolio became operational following its acquisition of the group and its assets. The properties yielded a total revenue of AED 139 mn, marking a 23% y-o-y increase. Meanwhile, its newly launched Five Luxe hotel in JBR also generated AED 78 mn in revenue.

On a 1H basis: Net income attributable to owners showed an 81% y-o-y decrease to AED 35 mn in 1H 2024, while adjusted net income fell 51.9% y-o-y to AED 115.8 mn Revenues for 1H 2024 grew 11.5% y-o-y to AED 901 mn.

Apex Engineering to establish 40k sqm industrial plant in Kezad for oil, gas, and defense sectors

INVESTMENT-

Apex Engineering to build industrial plant in UAE: Apex Engineering Industries signed a 50-year land lease agreement to set up an AED 90 mn R&D and manufacturing plant in Area A in Khalifa Economic Zones Abu Dhabi (Kezad) Al Ma'mourah, according to a statement. Neither the facility’s production capacity nor the timeline for launch have been disclosed.

What we know: The manufacturing hub — which will cover 40k sqm — will produce industrial parts, components, machinery, and equipment for the oil and gas, locomotive, and defense industries.

INFRASTRUCTURE-

Salik’s two new toll gates valued at AED 2.73 bn: The two new toll gates installed by Salik in Dubai were valued at a combined AED 2.73 bn, the emirate’s exclusive toll gates operator said in a statement (pdf). The gate at Business Bay Crossing on Al Khail road was valued at AED 2.27 bn, while the gate Al Safa South on Sheikh Zayed road was valued at AED 469 mn. These gates — which expand Salik’s network in Dubai to 10 gates — aim to redirect vehicles to routes with higher capacity to optimize road traffic.

Background: The Roads and Transportation Authority (RTA) said that the new gates will be operated by Salik back in January. The gates will boost revenue-generating trips by 7-8% this year, according to the statement yesterday.

Salik’s repayment plan: Salik agreed with the RTA to pay off the gates' value over six years starting from the date of their operation at the end of November, where a biannual installment of AED 227.9 mn will be paid.

ENERGY-

India’s Adani Power sets up new subsidiary in Abu Dhabi: India’s Adani Power launched a new subsidiary in Abu Dhabi — dubbed Adani Power Middle East — with an authorized capital of USD 27k, according to a filing to the National Stock Exchange of India (pdf). The new arm will invest in power and infrastructure, among other related fields in the region.

Remember: The UAE expansion comes roughly a month after the Abu Dhabi Investment Authority (Adia) and Qatar Investment Authority backed a USD 1 bn secondary share sale by Adani Power’s sister company Adani Energy Solutions.

CRYPTO-

Klumi partners with Fuze to accelerate the adoption of blockchain tech by financial institutions: Abu Dhabi-based digital assets fund manager Klumi Ventures partnered with blockchain infrastructure provider Fuze to help financial service providers implement digital asset infrastructure and streamline their cross-border transactions, according to a statement from Klumi.

There’s more: The partnership will also see both companies launch educational programs and workshops on blockchain technology for financial institutions, as well as cooperate on developing new products.

ICYMI- Klumi Ventures became the first Web3 venture capital firm to be regulated by the Abu Dhabi Global Market (ADGM) in April after receiving a license from ADGM’s regulator. The license allows Klumi to invest in tokens and equity investments in early-stage Web3 startups.

REAL ESTATE-

#1- Awqaf plans 21 endowment properties in central Dubai: The Endowments and Minors’ Trust Foundation in Dubai (Awqaf Dubai) plans to develop 21 endowment properties in central Dubai, valued at over AED 202 mn, which will be funded by endowment backers, according to the Dubai Media Office. The properties will include malls, residential buildings, shops, and mosques and are expected to be completed within one to two years.

#2- Galaxy Builders to launch a new residential project in Dubai: Indian real estate developer Galaxy Builders plans to build a luxury apartment complex in Jumeirah Garden City, Dubai called Jardin Astral, a statement from the company showed. The project will feature 46 apartments — with prices starting from AED 1.65 mn — and is expected to be completed by 3Q 2026. The value of the project was not disclosed.

FUEL-

Flow Petroleum to distribute Enoc’s lubricants in Pakistan: UAE’s state-run energy firm Enoc signed an agreement with Pakistani oil marketing company Flow Petroleum allowing the latter to market and distribute its engine lubricants in Pakistan, according to a statement from Enoc.

FINANCE-

US’ TCW sets up regional office in Dubai: US asset management firm TCW Group launched a regional office in the Dubai International Financial Centre (DIFC), which will focus on serving sovereign and institutional clients in the Middle East, according to a statement from the company. The new office is TCW’s first in the Middle East.

MANUFACTURING-

Qemtex launches a new powder coating plant in Umm Al Quwain: Dubai-based powder coatings manufacturer Qemtex inaugurated a new USD 16 mn factory in Umm Al Quwain, according to a company statement. The facility will have an initial production capacity of 5k tons a year, with plans to double the quota in a second phase. At least 30% of the factory’s output will be earmarked for the domestic market, while 70% will be allocated for export to the MENA region, EU, and US.

VENTURE CAPITAL-

Newa to launch new fund next year: Dubai-based venture capital firm Nuwa Capital is planning to set up a new fund at the end of 2025, which could gradually expand its remit beyond early-stage investments, Nuwa’s Managing Partner Khaled Talhouni told Zawya.

Nuwa’s current fund: Nuwa has finalized up to 12 transactions through its current fund — which is limited to early-stage investments — since January. The firm plans to make a transaction every six weeks until the fund is fully invested; it currently has some USD 30 mn left to deploy, Talhouni said.

BUSINESS-

Alpha FMC establishes a presence in the region with a branch in Abu Dhabi: Management and technology consulting services provider Alpha Financial Markets Consulting (Alpha FMC) opened a new branch in Abu Dhabi Global Market (ADGM), marking its first presence in the Middle East, according to a statement from ADGM. The new branch will provide tailored consultancy services to the investment management sector in Abu Dhabi and the wider region, with operations overseen by Alpha's UK business.

Nvidia shares slide despite highly anticipated 2Q earnings beating forecasts

There’s one story dominating the pages of the world’s business press today: Giant US chipmaker Nvidia reported 2Q earnings after the bell yesterday that beat bottom and top line expectations. However, investors — who have kept their eyes peeled for the AI juggernaut’s results for signs of how the AI boom is faring — are skeptical about the road ahead for the company, driving down its share price in after-hours trading.

By the numbers: The company’s net income grew 168.2% y-o-y to USD 16.6 bn, delivering an earnings per share of USD 0.68 cents, compared to LSEG consensus expectations of USD 0.64. Revenues also came in a good notch above expectations, rising 122.4% y-o-y to USD 30.0 bn, exceeding analyst expectations of USD 28.7 bn.

This wasn’t enough to buoy stocks in the world’s second biggest company: Nvidia shares had fallen about 8% in extended trading at the time of writing, after its 3Q forecasts failed to impress investors — representing a roughly USD 200 bn drop in market value.

Nvidia has become a victim of its own success: Despite beating analysts expectations in 2Q and AI chip demand appearing to be much healthier than some had feared, the success of the company has led to some investors to price in incredibly high expectations for the company going forwards. The company expects to see USD 32.5 bn in revenues for the third quarter — plus or minus 2% — but this roughly 80% y-o-y increase that is a notch above analyst expectations isn’t enough for some investors.

But it’s going to take a lot to knock one of Wall Street’s most hotly watched stocks off course: Even if Nvidia does take a hit on the stock market in the coming days, the company’s share value is already up around 160% since the start of the year. Nvidia stocks alone have contributed more than a quarter of the S&P 500’s gains so far this year, helping to propel the company to be the world’s second biggest company, behind only Apple.

MARKETS THIS MORNING-

Asian markets are down in the red in early trading this morning, as investors assess how Nvidia’s share slump following its earnings release will affect the region as an important global hub for engineering chip parts. Tech and electronics companies are pushing down indexes across the region, with Korea’s Kopsi down 0.7%, Japan’s Nikkei down 0.4%, and China’s Hang Seng down 0.3%.

ADX	9,289	-0.5% (YTD: -3.0%)
DFM	4,324	-0.4% (YTD: +6.5%)
Nasdaq Dubai UAE20	3734	-1.1% (YTD: -2.8%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.9% o/n	4.5% 1 yr
TASI	12,117	-0.5% (YTD: +1.3%)
EGX30	30,710	+1.1% (YTD: +23.4%)
S&P 500	5,592	-0.6% (YTD: +17.2%)
FTSE 100	8,344	0.0% (YTD: +7.9%)
Euro Stoxx 50	4,913	+0.3% (YTD: +8.7%)
Brent crude	USD 78.65	-1.1%
Natural gas (Nymex)	USD 1.93	+1.4%
Gold	USD 2,537.80	-0.6%
BTC	USD 59,361.90	-4.0% (YTD: +39.8%)

THE CLOSING BELL-

The DFM fell 0.4% yesterday on turnover of AED 454.7 mn. The index is up 6.5% YTD.

In the green: Dubai National Insurance & Reinsurance (+10.0%), Shuaa Capital (+3.0%) and Aramex (+2.5%).

In the red: National International Holding Company (-9.6%), Parkin Company (-4.9%) and Al Salam Bank (-3.8%).

Over on the ADX, the index fell 0.5%. Meanwhile, Nasdaq Dubai fell 1.1%

CORPORATE ACTIONS-

The National Investor kicked off its planned AED 50 mn share capital reduction yesterday after securing approval from the Economy Ministry, according to an ADX disclosure (pdf). The company is lowering its share capital from AED 285 mn to AED 235 mn, with the AED 50 mn set to be distributed to shareholders by 20 September. The company received shareholder approval for the capital reduction last month .

Deputy Abu Dhabi ruler meets with Qatari Emir + President explores Bangladesh cooperation with government chief adviser

Deputy Abu Dhabi Ruler and National Security Advisor Sheikh Tahnoun bin Zayed Al Nahyan visited Qatari emir Sheikh Tamim bin Hamad Al Thani yesterday to discuss boosting bilateral cooperation, as well as developments in key issues of interest, he said on X.

UAE, Bangladesh talk bilateral ties: President Sheikh Mohamed bin Zayed Al Nahyan discussed ramping up UAE-Bangladesh cooperation during a phone call with Bangladesh’s newly appointed interim government chief adviser, Professor Muhammad Yunus, Wam reports.

CALENDAR

SEPTEMBER

31 August - 8 September (Saturday-Sunday): Abu Dhabi International Hunting and Equestrian Exhibition (ADIHEX), Adnec Centre, Abu Dhabi.

4-5 September (Wednesday-Thursday): 2024 International Government Communication Forum, Expo Centre Sharjah, Sharjah.

5 September (Thursday): du’s Envision, Atlantis the Royal, Dubai.

5 September (Thursday): Deadline to apply for the sixth edition of Access Sharjah Challenge.

5 September (Thursday): Deadline to apply for Dubai Future Academy’s FEEL: A Disruptive Futures Program.

7-8 September (Saturday-Sunday): Binous Classic Bodybuilding Championship, DWTC, Dubai.

7-10 October (Monday-Thursday): The World Air Taxi Congress, The Grand Hyatt Dubai, Dubai.

9-12 September (Monday-Thursday): The annual EFG Hermes London Conference.

10-11 September (Tuesday-Wednesday): MENA PPP forum, Jumeirah Emirates Towers, Dubai.

11-12 September (Wednesday-Thursday): Dubai AI & Web3 Festival, Madinat Jumeirah, Dubai.

11-12 September (Wednesday-Thursday): Gitex Digi_Health 5.0 conference, Singapore.

16 September (Monday): HKMA–DFSA Climate Finance Conference, Hong Kong.

16-18 September (Monday-Wednesday): World Utilities Congress, Abu Dhabi.

16-20 September (Monday- Friday): Intelligent Transport Systems World Congress 2024, Dubai.

17-18 September (Tuesday-Wednesday): AI in oil and gas conference, Abu Dhabi.

18-19 September (Wednesday-Thursday): Sharjah Investment Forum, Jawaher Reception and Convention Centre, Sharjah.

15-19 September (Sunday-Thursday): Loop Beyond Borders, Abu Dhabi.

19-20 September (Thursday-Friday): Healthcare Leaders Summit 2024, St. Regis Saadiyat Island Resort, Abu Dhabi.

23-25 September (Monday-Wednesday): WorldFreezonesOrganization’s Annual International Conference and Exhibition, Dubai.

24-26 September (Tuesday-Thursday): Careers UAE 2024, Dubai World Trade Centre, Dubai.

25-26 September (Wednesday-Thursday): Green Steel Summit, Dubai, UAE.

25-26 September (Wednesday-Thursday): Global Aerospace Summit, Abu Dhabi, UAE.

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

30 September (Monday): Dubai Podfest, World Trade Center, Dubai.

OCTOBER

1-3 October (Tuesday-Thursday): Water, Energy and Environment Technology Exhibition, Dubai.

2-3 October (Wednesday-Thursday): The World Green Economy Summit, World Trade Center Dubai.

2-3 October (Wednesday-Thursday): MENA District Cooling Projects & MENA Cool Forum, Grand Hyatt Dubai, Dubai Healthcare City, Dubai.

7-8 October (Monday-Tuesday): Forex expo, World Trade Center, Dubai.

8-9 October (Tuesday-Wednesday)): Global Trade and Supply Chain Summit, Dubai.

8-10 October (Tuesday-Thursday): The Global Rail Transpo[rt Infrastructure Exhibition and Conference(Global Rail), Abu Dhabi.

14-18 October (Monday-Friday): Gitex Global, Dubai World Trade Centre and Dubai Harbour.

13-16 October (Sunday-Wednesday): Expand North Star, Dubai Harbour.

14-18 October (Monday-Friday): IEEE/RSJ International Conference on Intelligent Robots and Systems, Adnec Centre, Abu Dhabi.

14 October (Monday): The Smart Cities MENA Summit, Dubai.

15 October (Tuesday): Deadline for the European Commission to make a decision on its probe into e&’s acquisition of PPF’s Eastern European assets.

21-22 October (Monday-Tuesday): Port Development MEA Forum, Dubai.

21-22 October (Monday-Tuesday): Roads, Bridges, Tunnels MENA Conference, Dubai.

21-22 October (Monday-Tuesday): The Alternative Investment Summit, Dubai.

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

26 October (Saturday): UFC 308: TOPURIA vs HOLLOWAY, Etihad Arena, Abu Dhabi.

26-27 October (Saturday-Sunday): International Conference on Tourism, Transport, and Logistics, Dubai.

28-29 October (Monday-Tuesday): MENA Climate Proof Forum, Dubai.

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

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

30 October (Wednesday): Connected Construction Conference, Museum of the Future, Dubai.

NOVEMBER

3-10 November (Sunday-Sunday): Dubai Premier Padel P1, Dubai Dutyfree Tennis Stadium, Dubai.

4-7 November (Monday-Thursday): Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC), Abu Dhabi.

4-7 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi.

4-7 November (Monday-Thursday): ADIPEC Decarbonisation Accelerator, Abu Dhabi.

6 November (Friday): World Finance Forum, Dubai.

11 November (Monday): Dubai Diamond Conference, Jafza One Convention Centre, Dubai.

11-12 November (Monday-Tuesday): META Cinema Forum, Dubai.

18-20 November (Monday-Wednesday): Fastmarkets Middle East Iron & Steel 2024, Dubai.

19-20 November (Tuesday-Wednesday): Dubai Future Forum.

20-22 November (Wednesday-Friday): Xpanse Abu Dhabi, Adnec Centre, Abu Dhabi

22-23 November (Friday-Saturday): Global Meet on Electronics & Electrical Engineering (GMEEE), Dubai.

23 November (Saturday): Wireless Festival Middle East, Etihad Park, Abu Dhabi.

26-27 November (Tuesday-Wednesday) Global Food Security Summit, Adnec Centre Abu Dhabi.

27-28 November (Wednesday-Thursday): RAK Energy Summit, Al Hamra International Exhibition and Conference Centre, Ras Al Khaimah.

Signposted to happen ahead of ADIPEC:

Changemakers Majlis, Abu Dhabi.

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.

8-12 December (Sunday-Thursday): International Desalination and Reuse Association World Congress, Adnec Centre Abu Dhabi.

9-10 December (Monday-Tuesday): The Bitcoin Mena Conference, Adnec Centre Abu Dhabi.

9-12 December (Monday-ThursdayTuesday): Abu Dhabi Finance Week, Abu Dhabi.

10-12 December (Tuesday-Thursday): Middle East Investor Relations Association (MEIRA Conference), Conrad Abu Dhabi Etihad Towers Hotel, Abu Dhabi.

10-12 December (Tuesday-Thursday): The Middle East and North Africa Business Aviation Association Show, Al Maktoum International Airport, Dubai.

11-13 December (Wednesday-Friday): European-Arab Medical Congress, Abu Dhabi.

14-21 December (Saturday-Saturday): World Schools Festival, Abu Dhabi

Signposted to happen sometime in December:

UAE-China Summit, Abu Dhabi.

JANUARY 2025

1 January (Wednesday): ADGM to slash licensing fees for retail and non-financial firms, and hike fees for finance firms.

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

FEBRUARY 2025

2-3 February (Sunday-Monday): L’Etape Dubai cycling race, Dubai.

24-25 February (Monday-Tuesday): 3rd World Passenger Experience Forum, Dubai.

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

Signposted to happen sometime in 1Q 2025:

The first eight fronds of the Palm Jebel Ali will be site-ready, allowing for the commencement of villa infrastructure and civil works.

APRIL 2025

6-11 April (Sunday-Friday): Geo-Spatial Week 2025, Dubai.

Signposted to happen sometime in April:

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

MAY 2025

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

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

JUNE 2025

3-4 June (Tuesday-Wednesday): Make-A-Wish International’s Global Wish summit, Abu Dhabi.

OCTOBER 2025

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

Signposted to happen sometime in 2025:

TBD: The Middle East Electric Vehicle Show, Expo Center Sharjah.
TBD: e& will complete Adnoc’s private 5G network.

Signposted to happen sometime in the fall of 2025:

2025 Games of the Future, Dubai.

Signposted to happen sometime in 2026:

The UAE to host the Arab Competition Forum

Signposted to happen sometime in 2028:

Abu Dhabi to host the Chess Olympiad.

Signposted to happen sometime in 2029:

Dubai to host the International Conference on Computer Vision.

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