NMDC Energy’s shares jump on ADX debut

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Adnoc to submit final EUR 14.4 bn bid for Covestro + Etihad Airways IPO pushed to next year?

Good morning, friends. We have a brisk issue for you this morning, with positive news on the IPO front as NMDC Energy debuted on the ADX with a bang, and more healthy M&A action.

WEATHER- Be careful out there — it’s a particularly foggy week in Abu Dhabi and some parts of Dubai, with the fog expected to make way for clear, sunny skies later on Saturday, according to the National Center of Meteorology. Temperatures will reach 43°C today and cool to an overnight low of 34°C in Dubai. Over in Abu Dhabi, temperatures will hit 42°C, with an overnight low of 31°C.

WATCH THIS SPACE-

#1- Adnoc edges closer to Covestro takeover: State-run oil giant Adnoc is expected to file a formal bid of around EUR 14.4 bn, including debt, to acquire German chemicals company Covestro, the Financial Times reported. Adnoc’s CEO Sultan Al Jaber reportedly touched down in Germany in August to wrap up negotiations.

Remember: Adnoc said in June that it was ready to raise its takeover bid to EUR 62 per share, giving Covestro a potential valuation of EUR 11.7 bn. This came after revising its offer three times during the talks, which have been ongoing for over a year. Adnoc was reportedly nearly done with due diligence last month.

Analysts think the acquisition is a shoo-in: Kepler Cheuvreux Analyst Christian Faitz told the FT that the transaction is a “perfect fit” for Adnoc’s strategy to tap into sustainable technologies, while providing Covestro with the financial backing it needs to weather the industry’s cyclical nature.

#2- Hong Kong mulls trade agreements with the UAE + GCC: Hong Kong probes potential trade agreements with the UAE and the wider GCC region to boost its trade and investment ties in the region, Deputy Executive Director of Hong Kong Trade Development Council Patrick Lau told The National. Investment protection and double-taxation avoidance agreements are also on the table, he added.

The UAE has been on a roll with trade agreements: The UAE has signed comprehensive economic partnership agreements with several nations including India, Turkey, Israel, Indonesia, Cambodia, and Georgia. It is currently negotiating similar agreements with Serbia, Vietnam, and others. The GCC is also pursuing trade agreements with major economies, including the UK and Turkey.

#3- Emirati flag carrier Etihad Airways’s IPO will likely take place no sooner than in 2025, Reuters says, citing two sources it says are familiar with the matter. The ADQ-owned airline looks to demonstrate a strong performance to its investors in its 2024 financial results before making moves, one source was quoted as saying. Regional geopolitical tensions and uncertainty are weighing on timing, Reuters said, citing the second source.

Gearing up: Etihad Airways reportedly tapped Abu Dhabi Commercial Bank, Bank of America, BNP Paribas, and Morgan Stanley in May as joint bookrunners for its upcoming initial public offering. The wealth fund previously chose Citigroup, HSBC, First Abu Dhabi Bank as advisors for the IPO, and appointed Rothschild & Co. as independent financial advisor.

HAPPENING TODAY-

#1- The UAE is participating in the two-day Belt and Road Initiative (BRI) summit, which kicked off yesterday and wraps today in Hong Kong, state news agency Wam reports. The UAE has invested some USD 10 bn in BRI projects to date.

Around 19 MoUs were signed during the Summit: Four agreements were inked between governments, and 15 MoUs were signed between state-owned enterprises from the UAE, Indonesia, Malaysia, Vietnam, and Australia, Wam writes, without disclosing further details. The agreements span infrastructure, energy, and sustainable development sectors.

#2- The inaugural Dubai AI and Web3 Festival kicked off yesterday and runs until today at Madinat Jumeirah. The Dubai International Financial Centre 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.

#3- EFG Hermes’ annual conference is on its final day in London, giving investors “unique and unparalleled access to leading equities in MENA and key frontier emerging markets.”

#4- Chinese Premier Li Qiang landed in Abu Dhabi last night and is scheduled to meet with Prime Minister Mohammed bin Rashid Al Maktoum, Xinhua and Reuters report. Li is in town after making a stop in Saudi Arabia, where he met with Crown Prince Mohammed bin Salman.

PUBLIC SERVICE ANNOUNCEMENT-

#1- Update on the visa overstay amnesty program: The visa overstay amnesty program, which gives residents until 1 November to get their paperwork in order or to leave the country without fines, does not apply to violations committed after its launch on 1 September, Khaleej Times reported. If the resident’s status is not regularized by the end of the amnesty period, all applicable fines and penalties will be enforced.

The beneficiaries include individuals with expired residency permits, expired visas, those in work discontinuation reports, and unregistered foreign-born individuals. Individuals exiting the country under the amnesty will not face a re-entry ban.

#2- The Abu Dhabi Accountability Authority revised its Statutory Auditor Appointment Rules, raising the minimum auditing hours requirement for UAE national professionals to 40% and extending their appointment term to six years, according to the Abu Dhabi Media Office.

DATA POINTS-

#1- Gross bank assets rose 0.5% m-o-m to AED 4.310 tn at the end of June, according to the Central Bank of the UAE’s (CBUAE) latest monetary and banking developments report (pdf). Gross credit grew 1.1% m-o-m to AED 2.101 tn, driven by a 0.8% increase in domestic credit and a 2.9% rise in foreign credit.

The increase in domestic credit was fueled by increased lending mostly to the public sector, which saw a 1.4% m-o-m increase, and a 1% increase in lending to the private sector. This growth offset the reductions of 1.1% in credit to the government and 0.6% to non-banking financial institutions.

Total bank deposits rose 0.5% m-o-m to AED 2.693 tn at the end of June, propelled by an 8.4% increase in non-resident deposits against a 0.1% m-o-m decrease in resident deposits, according to the report.

The CBUAE’s total foreign assets rose by AED 3.88 bn to AED 770.61 bn at the end of June, according to the bank’s latest data (pdf).

#2- UAE consumers spent USD 3.8 bn on fast-moving consumer goods (FMCGs), and tech and durables in 2Q 2024, up 3.4% y-o-y, according to the NIQ Retail Spend Barometer

UAE. Some USD 2.3 bn were spent on FMCGs, up 4% y-o-y, and USD 1.5 bn were spent on tech and durable goods, up 2.6% y-o-y.

Breakdown of 1H spending activity: An increase in prices on the back of inflation and a drop in promotional activities from manufacturers drove spending to slow down in 1Q 2024. However, 2Q 2024 saw demand picking up, both in sales volume and value, as prices cooled down.

#3- Abu Dhabi logged a record 75.9% hotel occupancy rate in August, up 10.5% y-o-y, Zawya reports, citing preliminary data from CoStar. Revenue per available room (RevPAR) stood at AED 329.80, up 19.3% y-o-y, on the back of an average daily rate (ADR) of AED 434.30, up 8.0% y-o-y.

#4- Hotel revenues across the UAE soared to AED 24.6 bn in 1H 2024, marking a 7% increase y-o-y, Al Bayan reports citing the Economy Ministry. The number of hotel guests climbed 10.5% y-o-y to 15.3 mn, and room capacity grew 3% to 213k rooms. Airport passenger traffic increased 14.2% y-o-y to over 71.75 mn.

THE BIG STORY ABROAD-

Two days on and the US presidential debate is still dominating the digital front pages of the international press, with just a spattering of business and tech news trying to fight for ink with an avalanche post-debate analysis and thought pieces from the commentariat.

Now the dust has settled, pundits are trying to figure out who came on top, with the consensus in the international media being that while Kamala Harris had largely come out on top, the debate had not substantially moved the needle in a very close race between the two candidates. Trump campaign donors and Republican strategists are reportedly frustrated with the former president’s “uneven performance,” with one strategist calling the debate “a missed opportunity.” The former president’s claim that immigrants in Springfield, Ohio were eating residents’ pets was one of a number of diversions that drew hand-wringing from some Republican strategists and donors, who lamented the former president’s failure to double down on issues like inflation or the state of the US economy under Joe Biden.

WHILE IN GLOBAL INTEREST RATE SPECULATION- US inflation cooled to 2.5% inAugust, inching toward the 2% inflation rate targeted by the US Federal Reserve. The release of the new inflation data has seen analysts consolidate behind expectations that the Fed will make only a 25-basis point cut at the central bank’s rate-setting meeting next week.

OVER IN TECH NEWS- OpenAI wants to nearly double its valuation to USD 150 bn in new financing round to raise USD 5 bn from investors in order to fund AI development that it hopes will give it an edge over competitors including Google and Meta.

AND IN OUR NECK OF THE WOODS- The prime minister of Libya’s Government of National Accord, Abdul Hamid Dbeibeh, has pledged to end the country’s central bank standoff that saw its oil output cut in half.

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CIRCLE YOUR CALENDAR-

TheArab Water Forum is coming to Abu Dhabi from 16-18 September at the ADNEC Abu Dhabi Center: The event will feature over 60 exhibitors from 24 countries, along with roundtables and speaker sessions, uniting water sector leaders to advance solutions for clean water and sanitation, with an emphasis on innovation and improving water security.

Gulfood Green takes place 24-26 September at the Dubai World Trade Centre: The event connects startups and investors in the FoodTech and AgriTech sectors, exploring new methods of food production, trade, and consumption. Register here.

TheSpartan World Championship will kick off 28 November until 1 December in the Al Wathba Desert in Abu Dhabi. Participants can also compete in the 21km Age Group World Championship, 21km Open Beast, 1km to 3km Open and Competitive Kids Races, 3km Elite Team Relay World Championship, 10km Super Open, and 5km Open Sprint.

The International Renewable Energy Agency (Irena) Youth Forum will be held 9-13 January, 2025 in Abu Dhabi. Individual applicants have until Tuesday, 24 September to apply here. Taking place alongside the Youth Forum will be the Irena Assembly (11-13 January) where energy transition will be discussed.

Dubai will host the 2026 Arab Actuarial Conference, according to a statement from organizers MenaMoney. The conference serves as a regional platform for actuaries and industries reliant on actuarial work, including insurance, finance, banking, healthcare, pension funds, asset management, and risk management.

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

NMDC Energy shares jump 20% on market debut

NMDC Energy’s shares opened at AED 3.35 on its trading debut on the ADX yesterday, up 20% from the final set price of AED 2.8. Shares closed at AED 3.02, up 7.86%. The IPO raised AED 3.22 bn after receiving more than AED 88 bn in orders, with the order book 31x oversubscribed — excluding cornerstone investors.

This marks the largest IPO of the year in the UAE, with edtech firm Alef Education’s IPO following closely, raising AED 1.89 bn but seeing a lackluster debut, with shares falling 18% on its first day of trading. Alef’s shares were trading at AED 1.17 as of yesterday — down 13% YTD.

There’s more in the ADX pipeline:

Supermarket chain LuLu group tapped advisors for a potential sale this year;
Abu Dhabi National Hotels tapped Citigroup and First Abu Dhabi Bank to work on a planned IPO for its catering business ADNH Catering;
Alpha Data could tap the bourse this year;
Etihad Airways has tapped advisors for what could be the Gulf’s first airline IPO next year.

ADVISORS- FAB acted as lead receiving bank and lead manager for the IPO. ADCB, WIO Bank, and Al Maryah Community Bank served as other receiving banks. International Securities acted as the placement agent and listing advisor. Hadef & Partners were the legal advisors.

The story got ink in Bloomberg.

Kayali Fragrance sale in the works as Huda Beauty mulls strategic move

Huda Beauty eyes sale of its perfume unit Kayali: Dubai-based cosmetics player Huda Beauty is exploring a potential sale of all or part of its growing perfume division, Kayali, Bloomberg reports, citing people it says are familiar with the matter. The company has enlisted Goldman Sachs as an adviser, with a sale potentially allowing the fragrance and beauty brands to grow independently.

Sale proceeds could fund minority stake buyout: Proceeds from the sale could help Huda Beauty's founders buy out US-based TSG Consumer Partners, a private equity firm that has held a minority stake since 2017.

Nothing set in stone: Discussions are in early stages, and plans for the fragrance unit may change, sources said.

About Huda Beauty and Kayali: Launched in 2013 by Huda Kattan and her sisters Mona and Alia, Huda Beauty has grown into a powerhouse with a valuation of over USD 1 bn. Kayali, helmed by Mona Kattan, features about two dozen fragrances available at major retailers such as Sephora and Walgreens.

Zooming out: A potential sale of Kayali follows a pickup in acquisitions in the beauty and cosmetics sector, including Advent International’s acquisition last year of a stake in the group behind Parfums de Marly and INITIO Parfums Privés, which has a significant presence in the Middle East.

IN OTHER M&A NEWS-

Abu Dhabi’s Mubadala Energy hits two major milestones in Andaman Sea: Abu Dhabi-based Mubadala Energy, in partnership with Harbour Energy, snagged the Central Andaman exploration license from Indonesia's MIGAS, according to a press release. Harbour Energy will hold a 60% operating stake, while Mubadala Energy will have a 40% stake

Mubadala Energy also wrapped up its South Andaman drilling campaign, marking a successful appraisal of the Layaran discovery.

Nationwide inflation was up 2.08% in 1H 2024

UAE Inflation reached 2.08% in 1H 2024, narrowing slightly from the 2.09% it reached in 1H 2023, according to our math based on figures (pd f) from the Federal Competitiveness and Statistics Centre.

The breakdown: Prices of housing, water, electricity, and gas rose by 3.14% during the first half of the year. Food and beverage costs increased by 1.96%, while healthcare services rose 2.03% and education prices grew 2.65%.

Month-on-month, inflation saw fluctuations in 1H 2024, with a 0.15% contraction in January, followed by rises in February (+0.23%), March (+0.24%), April (+0.48%), and May (+0.15%), according to the statistics center’s monthly data (pdf). It then declined in June (-0.11%), marking the second contraction in the first half of the year.

Tadawul’s Al Rumaih + CMA’s Bin Hassan on the growth story of Saudi and UAE capital markets at EFG Hermes’ annual conference

How the Tadawul and Capital Market Authority are positioning Saudi capital markets as a global leader: Over the past several years, the MENA region’s capital markets “have transformed quite significantly — from small, locally driven outfits to major global hubs that are becoming a growing constituent of the MSCI Emerging Market Index,” EFG Holding Group CEO Karim Awad said at the EFG Hermes Annual Conference in London earlier this week. This transformation has been most apparent in Saudi and the UAE, Awad noted, “where even amid global and regional turmoil, their capital markets have shown remarkable resilience with the recent IPO flow that is among the most active globally.”

Saudi capital markets in particular have seen marked growth underpinned by a growth and regulatory strategy geared towards placing the Kingdom as a leading global capital market, Saudi Exchange CEO Mohammed Al Rumaih and Capital Market Authority (CMA) Board Commissioner Abdulaziz Abdulmohsen Bin Hassan said in a fireside chat at the conference.

“You name the metric, it’s seen double- or triple-digit growth in the past five years,” Bin Hassan says, pointing to qualified financial investors (QFIs), asset management, the debt market, and the number of financial institutions.

It was about finding out what investors were lacking in terms of incentives — and delivering on that, said Bin Hassan. “When the first QFI started back in 2017, there was a big constraint on the QFIs themselves. Since then, the CMA worked on relaxing the regulations itself to have more QFIs. So, for example, now you don't have to be a financial institution,” he said. Instead, regulators now allow any institution that meets the minimum requirement of USD 500 mn in assets under management to access the Saudi market. Regulators also made it easier for non-resident foreign investors to enter Tadawul’s parallel market, Nomu, without meeting QFI requirements, Bin Hassan noted.

“We continue to think about and work on how we can make it easier for investors,” Bin Hassan said.

The same rationale applied to encouraging new paper in the market, according to Al Rumaih, who looked at the growth in the volume of listings on the Tadawul over the past several years. “Last year, we had 35 listings. As of today, we’ve had 35 listings year-to-date, and we expect that figure to surpass 50 by the end of 2024. That’s compared to 2018, when we had maybe five listings over the course of the year,” Al Rumaih said.

In addition to the growth in volume, listings today also have much more diversification in terms of industries, sizes, and markets, as well as instruments such as ETFs, close-ended funds, and REITs, Al Rumaih noted. The growth in listing activity came on the back of the CMA-led Financial Sector Development Program, which focused on growing the number of listings in Saudi.

“If you look back to 2017, we had around 100 listed companies. For an economy like Saudi Arabia, that’s a very small figure,” Al Rumaih said.

The program focused first and foremost on addressing why companies were disinterested in going public, Al Rumaih said. “They had a valid reason — a lot of disclosure without a lot of benefits. Although the liquidity was always there, there were no tools for companies to get the liquidity they needed to grow their businesses.” Back in 2017, Saudi capital markets lacked the diversified investor base it currently has. Fast forward to today, most companies that previously had zero foreign investors now have 5-10% of their shares in the market held by foreign investors.

Then there was the creation of Nomu: Some companies did want to list, but wanted fewer requirements, which is why regulators set up Nomu and also looked at different ways to enter the market, such as introducing direct listings — which cut down on listing time and costs, Al Rumaih noted.

It’s been half a decade of substantial growth, but there’s still more potential to tap into: So far this year, there are more than 50 listing applications under review, “so this pipeline is very healthy and will continue to grow as we are opening up more ways for companies to become listed,” Al Rumaih said. Moving forward, regulators “continue to think about and work on how we can make it easier for investors,” Bin Hassan said. “We’re aiming to not just be one of the financial centers of the world, but also to be one of the most important ones.”

The CMA is set to announce today a fresh strategy for the next three years outlining plans to further develop the country’s capital markets, Bin Hassan said. Among the priorities moving forward as regulators work on “continuously improving and developing the market” is increasing efficiency, adopting the best international practices, and improving infrastructure, Bin Hassan and Al Rumaih said.

That potential also lies in debt capital markets, which remains underdeveloped: “If we talk about equity markets — ETFs, asset management, etc — we’re relatively mature there, but the most important thing we’re working on at the CMA with our partners in the financial sector is the debt capital market (DCM),” Bin Hassan said. By developing the country’s debt market, the value of becoming a listed company will also grow, Al Rumaih noted. “So by being a listed company, you would have more — or better — access to funding, which is essential to a company in a growth stage,” Al Rumaih said.

The Saudi debt market, valued at around SAR 700 bn, is very big — “but similar to the equity markets a few years ago, we are way below the benchmark when comparing the market to the size of the economy,” Al Rumaih said. Whereas G20 countries see their debt markets representing 30-40% of GDP, Saudi’s debt market represents 18% of the Kingdom’s total GDP, leaving “room to grow,” he noted.

What’s holding companies back from tapping debt markets to finance growth plans? Regulations are a core factor, Al Rumaih said, noting that these regulations are being revamped “to reduce the requirements and redundant information, especially if you are a listed company, which should provide the advantage of being known to the investors.” Regulations should allow access to the debt market to be a short, easy, and cost-effective process, he said. “The debt market is very important to us because it is very important to the economy.”

In addition to regulatory changes, there are also new systems being introduced: “Coupled with the revamp of the offering and listing rules, we are planning to introduce the capital management system, which we’ve tested in the parallel market to great success. What we expect is that the companies using the CMS can access a good pool of liquidity in a very cost-efficient way,” Al Rumaih said. Officials expect that these changes will help companies “look at the debt market as the main source of funding and maybe replicate the success that we are having in the equity market” within the next 2-3 years, he said.

Meanwhile, regulators are also pushing forward with ESG performance standards: While the CMA has been supporting the implementation of ESG regulations, but “it’s still the beginning,” Bin Hassan said. The CMA is working with the Supreme Committee for Investments on putting together standardized ESG regulations that would provide investors with greater clarity, he said. “We think in the next few years you’re going to see a more developed ESG landscape in the Kingdom itself as part of its overall vision,” Bin Hassan said.

Vision 2030 — which encompasses sustainability as a key pillar — was an important driver for the Tadawul to also push for sustainability among companies, Al Rumaih said. “We found that the majority of companies are already sustainable — they are already following the corporate governance code, which is one of the best in the world, and they’re working towards more environmentally-friendly ways of doing business.” After publishing guidelines on ESG reporting two years ago, some 8% of listed companies disclosed their ESG practices, while that number has grown to 30% this year, Al Rumaih said. The surrounding ecosystem has also developed to encourage more ESG reporting, with more consultants now available to support in implementing ESG practices and reporting on them, Al Rumaih said. “We are very optimistic about the future of the economy being more sustainable and how our companies are reacting to it.”

President appoints Ghanem Al Mazrouei as director of strategic affairs

President Sheikh Mohamed bin Zayed Al Nahyan appointed Ghannam Al Mazrouei (LinkedIn) as director of the president’s office for strategic affairs, Wam writes. Al Mazrouei serves as the chairman of the ADX, as well as the secretary general of the Emirati Talent Competitiveness Council. He is also on the boards of Abu Dhabi Retirement Pensions & Benefit Fund and AafaQ Islamic Finance.

Dubai's property boom, sky-high prices and a new skyscraper in the works

Dubai’s red-hot property market continues to make headlines: CNBC is the latest to spotlight Dubai’s surging real estate market in a recent interview (watch, runtime: 01:45) with Damac Properties’ founder Hussain Sajwani. Sajwani thinks prices have risen to what he calls a “comfortable level” since the pandemic, fueled by strong demand from European buyers, and expects them to continue rising reasonably — within the 5% range.

Prices soar — skyline follows suit: British tabloid Metro also took note of Azizi Developments’ planned Burj Azizi, which is set to become the world's second-tallest skyscraper by 2028, standing at approximately 2.4k ft at a total investment ticket of GBP 1.15 bn. Sales for Azizi Developments’ 131-story tower called The Burj Azizi will go live in February.

The UAE’s first PPP-built schools launched in Abu Dhabi

EDUCATION-

The UAE launches its first PPP-built schools in Abu Dhabi: The Abu Dhabi Investment Office (Adio) inaugurated three schools in Zayed City that were built under a public-private partnership (PPP) model for the first time in the UAE, according to the Abu Dhabi Media Office. The K-12 schools, which have a capacity for nearly 5.4k students, were built by a consortium led by Australian investor Plenary Group and Belgian construction firm Besix Group.

Adio has more educational PPP projects in the works: Adio and Khalifa University of Science and Technology awarded a student accommodation project in July to KUnnected Living, a consortium led by Plenary Group, Besix, and Abu Dhabi-based investor Mazrui International. The project is the largest student accommodation project in the GCC developed under a PPP model.

LOGISTICS-

China’s ZPMC supplying AD Ports with equipment for Angola + Congo terminals: Abu Dhabi Ports Group awarded China's Shanghai Zhenhua Heavy Industries AED 420 mn supply contracts for new crane equipment to be deployed at its Republic of Congo New East Mole Terminal in Pointe Noire and Angola Luanda Terminal, according to a statement.

Background: AD Ports Group inked a 30-year concession agreement with the Republic of the Congo to manage and operate the multipurpose New East Mole Terminal at Congo’s The firm also secured a 20-year concession with Angola’s Luanda Port Authority in April to operate and upgrade the Luanda multipurpose port terminal. AD Ports’ concession at the terminal is extendable for a further 10-year period.

EVs-

China’s Newrizon partners with Savvy to facilitate its entry into the Middle East: Chinese electric truck manufacturer Newrizon plans to expand into Middle East markets through its partnership with Abu Dhabi-based mobile EV charging solutions provider Savvy Charging Technologies, which aims to integrate its charging specifications into Savvy’s charging network, according to a statement.

ESPORTS-

US-based esports coaching platform Gosu Academy launched its services in the UAE, expanding its presence in the Middle East after its Saudi launch, according to a statement. Gosu was established in 2021 and has trained over 14k students to date.

CAPITAL MARKETS-

Naqdi secures SCA’s license: UAE-based trading platform Naqdi Securities and Currencies Brokers obtained a license from the Securities and Commodities Authority (SCA), allowing it to expand its product offerings and its client base, according to a statement.

REAL ESTATE-

Abu Dhabi to get its first W Hotels: Taraf Holding, the real estate development arm of Yas Holding, partnered with Marriott International to launch W Residences Abu Dhabi on Al Maryah Island, the first W Hotels -branded residence in the emirate, a statement showed.

TOURISM-

Healthtrip expands into the UAE: UK-based medical tourism platform Healthtrip launched its services in the Middle East with new offices in the UAE and Saudi Arabia, according to a statement. Backed by several UAE investors including Humania Capital, D-One Investment, and NB Ventures, Healthtrip has partnered with 1.5k hospitals globally and has served over 65k customers from 38 countries.

ECOMMERCE-

Dubai CommerCity signed an MoU with eBay allowing e-commerce businesses in the freezone to access eBay’s marketplace, connecting them with 132 mn buyers across 190 countries, according to a Dubai Media Office statement. The partnership aims to boost the supply of high-demand products from the UAE, such as auto parts and luxury goods. In addition, eBay will roll out training programs and workshops for businesses, as well as a complimentary three-month eBay Basic store subscription.

FINTECH-

Digital assets exchange application Fasset launched Ethereum Layer 2 blockchain for real world asset ownership, called IOWN, supporting a range of real world assets, including commodities, real estate, stocks, and bonds, according to a press release. The platform will serve as a primary blockchain for Web3 Islamic finance projects from the Islamic Digital Assets Center at Labuan International Business and Financial Center, aiming to democratize access to finance by targeting 30 mn asset owners in emerging markets by 2030.

ICYMI- Fasset went live in the UAE in April after the company was granted a Virtual Asset Service Provider license by the Virtual Assets Regulatory Authority.

DEBT-

PDS taps HSBC Middle East for a credit facility to accelerate its sustainability goals: Indian fashion infrastructure firm PDS inked a five-year agreement with Dubai-based HSBC Bank Middle East for a trade financing facility focusing on sustainable finance goals, according to a statement (pdf). The facility incorporates environmental targets, including reductions in greenhouse gas emissions and freshwater consumption, with sustainability key performance indicators standardized and approved in both the UAE and Hong Kong.

MANUFACTURING-

Habib Rice sets up shop in Sharjah: Pakistani manufacturer of rice-based starch sugar and proteins Habib Rice Products launched a new subsidiary in the Sharjah Airport International Freezone, according to a statement.

SUSTAINABILITY-

Clean Rivers teams up with UNDP to clean Indonesian rivers: UAE-based non-profit Clean Rivers partnered with the United Nations Development Programme (UNDP) to remove 5k tons of plastic from six Indonesian rivers over three years, according to a statement. Funded by Clean Rivers through a USD 20 mn UAE pledge, the project aims to boost waste management in Java and Bali.

US Fed may reconsider larger rate cut as inflation persists

US Fed looks more likely to go for a smaller rate cut as inflation persists: US consumer prices rose 0.2% in August, matching July's increase, while the annual CPI advanced 2.5%, the smallest rise since February 2021, according to Bureau of Labor Statistics figures (pdf). The index grew 0.3% without counting volatile items like food and energy — the most in four months.

The persistent growth points to the likelihood of a smaller rate cut at the Fed’s meeting next week, analysts say. Traders now see an 85% chance of a quarter-point cut next week, according to CME Group’s FedWatch.

Start slow, and upsize later? “The Fed may start rate cuts a lot like how they started the hikes: 25 bps at first and then have the option to upsize the cuts as necessary,” chief economist at Annex Wealth Management Brian Jacobsen told Reuters.

Market reax: US markets exhibited cautious movements following the latest inflation data, dipping slightly before paring gains on the back of a tech rally. The S&P 500 fell 0.3%, before closing up 1.1%, while the Nasdaq rallied 2.17%.

ALSO WORTH KNOWING-

UK-based private equity group Intermediate Capital Group closed a EUR 15.2 bn (USD 16.8 bn) European direct-lending fund, the largest of its kind in Europe, providing loans to private-equity backed companies. (Bloomberg)

The UK economy stagnated in July, with no growth for the second consecutive month as construction and manufacturing sectors declined. The Bank of England is anticipated to keep interest rates steady at 5% next week, with a potential cut in November. (Financial Times)

THE MARKETS THIS MORNING-

Asian markets tracked Wall Street’s gains, with the Nikkei up 3% and Topix up 2.48% this morning. South Korea’s Kospi also opened up 1.2%, while the small-cap Kosdaq gained 2.5%. Meanwhile, Wall Street futures opened lower.

ADX	9,323	-0.9% (YTD: -2.7%)
DFM	4,346	-0.9% (YTD: +7.1%)
Nasdaq Dubai UAE20	3,756	-1.7% (YTD: -2.2%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.1% o/n	4.2% 1 yr
TASI	11,766	-1.8% (YTD: -1.7%)
EGX30	30,486	+1.3% (YTD: +22.5%)
S&P 500	5,554	+1.1% (YTD: +16.4%)
FTSE 100	8,194	-0.2% (YTD: +6.0%)
Euro Stoxx 50	4,764	+0.3% (YTD: +5.4%)
Brent crude	USD 70.61	+2.1%
Natural gas (Nymex)	USD 2.28	+0.4%
Gold	USD 2,542.40	-0.03%
BTC	USD 57,360.4	-0.4% (YTD: +36.1%)

THE CLOSING BELL-

The DFM fell 0.9% yesterday on turnover of AED 388.6 mn. The index is up 7.1% YTD.

In the green: International Financial Advisors (+12.6%), Tecom Group (+2.0%) and Sukoon Ins. (+1.4%).

In the red: Dubai Refreshment Company (-9.8%), Agility The Public Warehousing Company (-5.5%) and National International Holding Company (-5.0%).

Over on the ADX, the index also fell 0.9% on turnover of AED 1.3 bn. Meanwhile Nasdaq Dubai closed down 1.7%

CORPORATE ACTIONS-

Abu Dhabi Ship Building Company tapped Q Market Maker as a liquidity provider for its shares, the company stated in an ADX disclosure (pdf).

UAE + Cyprus presidents meet in Abu Dhabi

UAE president talks bilateral ties with Cypriot counterpart: President Sheikh Mohamed bin Zayed Al Nahyan and Cypriot President Nikos Christodoulides met in Abu Dhabi on Wednesday to discuss bilateral ties, focusing on trade, investment, and energy, Wam reports. Both parties discussed the humanitarian crisis in Gaza, as well as cooperation through the Amalthea maritime corridor initiative.

Refresher: President Sheikh Mohamed bin Zayed Al Nahyan pledged USD 15 mn to Cyprus’ Amalthea Fund, which aims to support the UAE-funded maritime corridor initiative to deliver aid to Gaza through Cyprus.

ALSO WORTH KNOWING-

UAE President Sheikh Mohamed bin Zayed Al Nahyan and Philippines Interior Secretary Benjamin Abalos Jr met in Abu Dhabi earlier to discuss strengthening UAE-Philippines relations. (Wam)

CALENDAR

SEPTEMBER

7-13 September (Saturday-Friday): Makers’ Month, Al Quoz Creative District, Dubai.

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

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

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

12-15 September (Thursday-Sunday): 2024 Special Olympics Malta.

15 September - 23 February 2025 (Sunday-Sunday): Labour Sports Tournament, Dubai.

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

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

16-18 September (Monday-Wednesday): Arab Water Forum, ADNEC Abu Dhabi Center.

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.

22-26 September (Sunday-Thursday): Sharjah-Europe Businesswomen Forum, Brussels.

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.

24-26 September (Tuesday-Thursday): Gulfood Green, 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.

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

9-10 October (Wednesday-Thursday): The Regional Data and Community Development Forum, Al Jawaher Reception and Convention Centre, Sharjah.

10-13 October (Thursday-Sunday): The Abu Dhabi Grand Slam Judo tournament, Mubadala Arena.

13-14 October (Sunday-Monday): Abu Dhabi Wedding Show, Park Hyatt 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.

23-24 November (Saturday-Sunday): Emirates Dubai Sail Grand Prix, SailGP Race Stadium.

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

26-29 November (Tuesday-Friday): Big 5 Global, Dubai World Trade Centre.

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

28 November-1 December (Thursday-Sunday): Spartan World Championship, Al Wathba Desert, Abu Dhabi.

30 November (Saturday): Football Legends Cup, Al Maktoum Stadium Al Nasr Sports Club, Dubai.

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.
Abu Dhabi Forum for Peace, Abu Dhabi.

JANUARY 2025

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

9-13 January (Thursday-Monday): International Renewable Energy Agency Youth Forum, Abu Dhabi.

11-13 January (Saturday-Monday): International Renewable Energy AgencyAssembly, Abu Dhabi.

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

FEBRUARY 2025

1-8 February (Saturday-Saturday): The Mubadala Abu Dhabi Open, Zayed Sports City's International Tennis Centre.

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

24-25 February (Monday-Tuesday): 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.

7-9 April (Monday-Wednesday): AIM Investment Summit, Abu Dhabi National Exhibition Center

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
Dubai to host the Arab Actuarial Conference

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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