Non-oil activity continues steady growth in February

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Etihad to push back its IPO to after Eid al Fitr + Real GDP grew 3.8% in 9M 2024

Good morning, lovely people. The newsflow has picked up since the start of the week, with updates on Ras Al Khaimah’s sukuk issuance, fresh data on the UAE’s non-oil private sector in February, and another IPO in the cards. Let’s dive in.

WEATHER- It’s going to get hot and sunny today, with Dubai seeing highs of 31°C during the day, with an overnight low of 23°C, according to our favorite weather app and the National Center of Meteorology’s forecast (pdf). Abu Dhabi will see temperatures hit 28°C, before cooling to an overnight low of 21°C.

So, when do we eat? Maghrib is at 6:27pm today in Dubai and 6:31pm in Abu Dhabi. You’ll have until fajr prayers at 5:20am in Dubai and 5:24am in Abu Dhabi tomorrow to finish your sohour.

WATCH THIS SPACE-

#1- Abu Dhabi’s flagship carrier Etihad Airways will reportedly postpone its blockbuster USD 1 bn IPO until after the Eid al Fitr holiday, Reuters reports, citing two sources with knowledge of the matter. The reason for the delay was not specified, and neither Etihad nor its owner Abu Dhabi sovereign wealth fund ADQ commented on the delay.

Where we last left things: Reuters had reported that the carrier will kick off its IPO last week, following a roadshow that took place earlier in February to feel out investors. When the IPO goes ahead, it should see ADQ rake in some USD 1 bn in proceeds from the sale of a 20% stake by selling new shares on the ADX. The move would give the airline an implied market cap of USD 5 bn at listing.

ADVISORS- ADQ reportedly tapped Abu Dhabi Commercial Bank, Bank of America, BNP Paribas, and Morgan Stanley as joint bookrunners for the IPO, with HSBC Holdings, First Abu Dhabi Bank (FAB) and Citigroup said to be acting as financial advisors.

#2- Emirates is investing nearly USD 5 bn to upgrade its existing aircraft — including Airbus A380 jumbo and Boeing’s 777 — to circumvent delays for new aircraft models on order, Bloomberg quotes Emirates President Tim Clark as saying during a briefing with journalists. The airline has been retrofitting aircraft and equipping them with new cabin interiors and tech upgrades to extend the life span of the models at its engineering complexes in Dubai. It is also mulling the purchase of Airbus 350-1000 model, but said it would require assurances from Rolls Royce that the engine is reliable before placing an order.

“We’ve had to take control of our own destiny,” Clark said, after Boeing pushed back delivery dates of its new 777x aircraft in October, with first delivery of its 777-9 airplane forecasted to be in 2026, while its 777-8 freighter aircraft could see deliveries in 2028. Delivery delays have been attributed to setbacks in flight testing for the individual aircraft models and a labor strike at the company.

#2- Demand for Islamic finance in the UAE is set to remain strong in 2025, maintaining its position as a leading market alongside Saudi Arabia and Malaysia, according to a Moody’s report picked up by Al Bayan. The Islamic banking sector is expected to expand at a faster pace than conventional banking, fueled by strong economic performance, diversification strategies, and increased investment across the GCC and Southeast Asia, the ratings agency said.

Despite this momentum, sukuk issuance is forecast to moderate to USD 210-220 bn after reaching record levels of USD 242 bn in 2024, driven by a slowdown in sovereign sukuk activity, Zawya quoted Moody’s as saying. However, demand from corporations and financial institutions is expected to offset the decline as lower interest rates drive demand. Green and sustainable sukuk are also expected to regain momentum despite a 10.6% drop in 2024 to USD 9.5 bn following a strong 2023.

REMEMBER- The UAE emerged as a top issuer of bonds and sukuk in the region in 2024, with 109 issuances worth USD 38.5 bn, up 28.1% y-o-y and representing 26% of total regional issuances. UAE-based issuers’ sukuk totalled USD 14.4 bn during the year, with S&P Global Ratings projecting that this volume will remain steady at USD 14-15 bn in 2025, “underpinned by banks and corporate issuances.”

DATA POINTS-

#1- The UAE’s real GDP grew 3.8% y-o-y in 9M 2024 to reach AED 1.3 tn, with non-oil activity contributing 74.6% to total GDP, Wam reports. Growth had come in at 3.6% y-o-y in 1H 2024, during which the non-oil segment represented a 75% share of GDP.

REMEMBER- GDP is expected to have grown around 4% last year, according to the Central Bank of the UAE, with the cabinet saying it surpassed AED 1.7 tn. The CBUAE expects growth in 2025 to come in at 4.5%, while the IMF and the World Bank expect it to stay at 4%. Other financial institutions are optimistic as well, with Moody’s expecting growth to come in at 4.8% and Emirates NBD seeing it at 5%.

On track for targets: The 4.5% y-o-y growth of the non-oil sectors’ contribution to generate AED 987 bn showed the success of economic diversification policies, Economy Minister Abdula Bin Touq Al Marri said. It comes as the UAE aims for a GDP of AED 3 tn by 2031.

#2- Dubai Investment Fund received AED 1.4 bn in distributions from its 75% stakes in Salik, Parkin, and Dubai Taxi in 2024, Al Khaleej reports. The three companies distributed a total of AED 1.9 bn in dividends, after generating a combined AED 3.1 bn in revenue. However, net income was impacted by AED 189.9 mn in taxes following the introduction of the UAE’s corporate tax.

ICYMI- By the numbers:

Salik reported AED 2.3 bn in revenue and AED 1.2 bn in net income, with violation revenues up 9.3% to AED 236.9 mn;
Parkin recorded AED 925.2 mn in revenue and AED 423.5 mn in net income, driven by a 37% jump in fines to AED 249.1 mn from 1.67 mn violations;
Dubai Taxi saw revenues rise 12.4% to AED 2.2 bn, though net income slipped 4% to AED 331.3 mn due to tax and higher interest costs.

Total dividends for the year reached AED 1.2 bn from Salik, AED 479.6 mn from Parkin, and AED 281.6 mn from Dubai Taxi.

PSA-

New traffic cameras in Dubai are using AI to detect motorists’ offenses and issue fines without any human interaction, the General Department of Traffic in Dubai Police’s Mohammed Ali Karam told the National. The new cameras can detect a variety of violations, ranging from seatbelt and mobile phone usage to window tint limits, U-turns, and expired registrations.

HAPPENING TODAY-

#1- The Forbes 30/50 Summit is on its second day and runs until Saturday in Abu Dhabi. Coinciding with International Women’s Day, the event brings together influential leaders from entertainment, sports, business, and activism, including Reddit cofounder Alexis Ohanian, Iraqi para table tennis player Najlah Imad, Syrian swimmer Yusra Mardini, and Saudi race car driver Reema Juffali.

#2- AjmanEntrepreneurship Week is on its second day and runs until Sunday in Al Jurf Park and Mushairif Market, bringing together entrepreneurs, investors, and innovators. Organized by the Ajman Department of Economic Development, the event includes the Dakkakin Initiative to support SMEs.

THE BIG STORY ABROAD-

The Trump tariff continues to capture the attention of the foreign press: US President Donald Trump granted a 30-day tariff exemption for vehicles that comply with the United States Mexico Canada Agreement (USMCA), giving companies a brief window to adjust. The move follows a meeting between representatives from Ford, General Motors, and Stellantis and the Trump Administration — US automakers are scrambling to assess the impact of the tariff. (Reuters | Washington Post | AP | Bloomberg)

CLOSER TO HOME- Trump escalated threats against Gaza’s population, warning, “to the People of Gaza: A beautiful Future awaits, but not if you hold Hostages. If you do, you are DEAD.” He vowed there would be “hell to pay” if Hamas doesn’t release the Israeli hostages held in Gaza. The US President’s remarks came as Adam Boehler — Trump’s top hostage negotiator — held direct talks with Hamas officials in Qatar. The meeting comes as Israel and Hamas discuss extending the now-expired ceasefire. (BBC | AP | The Guardian)

MEANWHILE- German borrowing costs saw their biggest spike in nearly three decades following a EUR 500 bn debt agreement to boost military and infrastructure spending. (Financial Times | Reuters)

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CIRCLE YOUR CALENDAR-

TheAirport Show will take place from 6-8 May at the Dubai World Trade Center, bringing together global air navigation service providers, industry leaders, and technology innovators to discuss advancements in the industry, as well as airport sustainability, digitization, and urban air mobility. The event will feature other forums held on the sidelines, including the Air Traffic Control Forum, Global Airport Leaders’ Forum and the Women in Aviation Middle East Conference and Awards.

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

Non-oil activity holds steady in February

Non-oil activity maintained its momentum in February, with growth in the sector remaining close to the nine-month high achieved in December due to a “notable rise in new business that fuelled a substantial upturn in output,” according to S&P Global UAE PMI (pdf). The headline figure stood at 55.0 in February, remaining unchanged from January.

REMEMBER- The all-important 50.0 mark is the threshold separating contraction from growth. Anything above 50 denotes expansion, while anything below indicates contraction.

Growth in new orders saw a slight slowdown: The new orders subindex fell to 57.3 in February, down from 59.0 in January, marking its lowest level since October of last year, according to data seen by Reuters. Around 29% of firms surveyed reported higher activity than in January, and just 5% reporting slowed activity

Some firms reported dampened growth driven by “competition from domestic and foreign sources,” prompting business owners to limit price hikes despite an uptick in cost pressures, the first since July 2024, driven by “the passing on of higher material prices by suppliers,” companies said, coupled with higher costs for maintenance and technology. Increased demand also drove up input purchases, though purchasing grew at its slowest pace in three months.

Still, the sector is showing signs of resilience: “The UAE PMI for February reflects the continued resilience of the non-oil private sector, supported by a strong demand, business confidence, and government reforms despite global economic and trade uncertainties,” National Bank of Kuwait Senior Economist Ahmed Issa told EnterpriseAM UAE.

Employment similarly remained steady throughout the month, with most firms keeping employment unchanged, while job creation remained limited. Meanwhile, the month saw a continued increase in the volume of unfinished business, driven both by administrative delays and the accumulation of new work. “While robust growth in business activity indicates that the pipeline of orders should eventually be addressed, other factors such as weak job creation and administrative delays pose risks to this outlook,” S&P Global Senior Economist David Owen said.

Business sentiment over the UAE’s 12-month outlook remains shaky: Firms’ confidence about future activity in the UAE remains limited, as businesses “continue to feel the pressure of intense competition, which has capped price increases,” Owen said. However, businesses remain “eager to secure new work, which contributed to a rapid accumulation of backlogged orders.”

MEANWHILE, IN DUBAI-

Business conditions in Dubai improved at a slightly slower pace in February, with the Dubai PMI slipping to 54.3, down from 55.3 in January. Growth remained solid due to an increase in new orders, while activity levels strengthened on the back of higher demand and softened price pressures.

Input prices increased at their slowest rate in four months, which led to only slight changes in output prices.

Expectations for the coming year saw a slight recovery: Output expectations among businesses in the emirate rebounded to a three-month high, but stayed relatively subdued nonetheless — which, in turn, contributed to firms keeping staffing levels unchanged since last month. However, inventory growth was supported by an uptick in input purchasing.

The emirate’s tourism, retail, and logistics sectors are to thank: “Dubai’s PMI results highlight the robust growth in key sectors, including tourism, retail sales, and logistics, driven by a sustained consumer and investor positive sentiment. The steady growth in output and domestic demand for both the UAE and Dubai reinforce their positions as key regional business hubs,” Issa told us.

RAK attracts over USD 2 bn in orders for 10-year sukuk

The Government of Ras Al Khaimah’s 10-year USD-denominated sukuk has attracted over USD 2 bn in orders, excluding joint lead manager interest, Zawya reports. The Reg S benchmark sukuk has initial price thoughts at Treasuries +120 bps, with settlement scheduled for 12 March, 2025.

RAK Capital is acting as the sukuk trustee, while the RAK Investment and Development Office represents the government. The proceeds will support general government and budgetary expenditures.

ADVISORS- Abu Dhabi Commercial Bank, Citi, Emirates NBD Capital, First Abu Dhabi Bank, The National Bank of Ras Al Khaimah (Rakbank), and Standard Chartered are acting as global coordinators. Citi and Emirates NBD Capital are serving as Sukuk Structuring Agents.

Part of a wider wave of issuances: The RAK sukuk marks the first sovereign issuance from the UAE this year, amid a surge in sukuk and Reg S bond issuances by banks and corporates. First Abu Dhabi Bank (FAB) and Damac recently priced their own USD 600 mn and USD 750 mn sukuks. Sharjah Islamic Bank is preparing a USD 500 mn Reg S five-year sukuk, while Emirates NBD plans to issue a USD 1 bn Reg S additional tier 1 capital security.

Total sukuk issuance volume from UAE-based issuers reached USD 14.4 bn in 2024, with S&P Global Ratings projecting a steady USD 14-15 bn in 2025, primarily driven by bank and corporate issuances.

OTHER DEBT NEWS-

UAE district cooling company Tabreed’s USD 700 mn greensukuk was 2.6x oversubscribed, after its orderbooks saw investor demand exceed the size of the issuance by 4.3x, the company said in a press release. The issuance, which is listed on the London Stock Exchange, carried a 5.279% yield — the tightest-ever credit spread for a five-year UAE corporate sukuk with a similar rating.

Background: This marks Tabreed’s first issuance under its new USD 1.5 bn trust certificate program, with proceeds set to fund eligible green projects under Tabreed’s Green Financing Framework, including district cooling, energy and water efficiency, and wastewater management

REMEMBER- Tabreed CFO Adel Salem Al Wahedi said last year that the company plans to issue green bonds or sukuk to refinance USD 1.2 bn in debt this year, including USD 500 mn in bonds maturing in October 2025 and a USD 700 mn loan due in March 2025. Tabreed’s board will also seek shareholder approval on 25 March to issue up to USD 2 bn in an additional non-convertible issuance. Tabreed holds a Baa3 credit rating with a stable outlook from Moody’s and a BBB rating from Fitch with a stable outlook.

ADVISORS- Citi and Standard Chartered acted as joint global coordinators. Joint lead managers included Citi, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, and Standard Chartered, with Abu Dhabi Commercial Bank serving as co-manager. Citi, FAB, and Standard Chartered structured the green certification.

Arabian Construction weighs IPO as real estate boom continues

Arabian Construction (ACC) is the latest among a string of developers weighing an IPO here at home. The family-owned property developer is reportedly sounding out banks for advisory roles on its potential public debut, Bloomberg reports, citing people it says are familiar with the matter.

What we know: The share sale could see the Abu Dhabi-based firm rake in “several hundred mn USDs,” the sources said. While there’s no publicly available information on either the size of the sale, or its timeline, Abu Dhabi-based firms usually choose ADX as their listing venue.

More construction + real estate firms have been eyeing IPOs recently: Alec Engineering & Contracting’s USD 500 mn Dubai listing, Dubai Holding’s plans to float two of its property portfolio units, and Sharjah-born Arada’s potential IPO are also planning their public offerings. The busy pipeline comes amid an ongoing real estate boom across the UAE, with Dubai, Abu Dhabi, and the northern Emirates all seeing a large increase in real estate transactions in 2024 and rising prices.

And the sector’s stocks have been performing well: Real estate stocks like ADX-listed Aldar Properties and DFM-listed Emaar Properties climbed about 70% over the past year, with companies reporting record earnings, Bloomberg reports.

About Arabian Construction: Founded in 1967 by the Mehrebi and Mikati families in Beirut, ACC has grown into one of the largest contracting firms in the region, specializing in high-rise developments, mixed-use projects, and infrastructure development. While the firm’s GCC operations are based in Abu Dhabi, ACC is headquartered in Beirut and operates across 12 countries within and beyond the MENA region. The company is behind projects like Abu Dhabi’s Sheikh Zayed Grand Mosque, Emirates Palace Hotel and the Address Sky View in Dubai.

ALSO IN THE PIPELINE-

ADQ-backed Etihad Airways was expected to kick off the region’s first IPO of a major airline in nearly a decade last week ;
Abu Dhabi conglomerate International Holding Company’s investment arm 2PointZero is gearing up for an IPO on the ADX ;
Abu Dhabi Investment Group (ADIG) is eyeing listings for its financial unit and energy subsidiary this year;
Dubizzle Group tapped banks for a 2025 IPO on the Dubai Financial Market (DFM);
Hospitality group Five Holdings also tapped advisors for a potential listing;
Amanat Holdings is planning to list its education and healthcare units;
Shisha producer Advanced Inhalation Ritual is also rumored to potentially IPO.

Falcon Aviation to invest USD 100 mn into its MRO facilities at Dubai’s Al Maktoum International Airport

Falcon to invest USD 100 mn to upgrade its facilities in Dubai: Alex Group Investment’s aviation solution subsidiary Falcon Aviation is looking to plug nearly USD 100 mn (c. AED 367 mn) over the next five years into upgrading its Maintenance, Repair and Overhaul (MRO) facilities at Dubai’s Al Maktoum International Airport, according to a statement. The investment will also be used to develop a new private jet terminal at the airport.

The facility: Falcon Aviation’s existing MRO facility — spanning some 13.7k sqm — is located at Dubai’s Mohammed Bin Rashid Aerospace Hub. The facility is capable of servicing a wide range of widebody and narrow-body carriers, as big as the Airbus A380, and includes Embraer and the Bombardier Challenger. The firm was granted approval to offer its MRO services in the UAE by the General Civil Aviation Authority (GCAA) last year.

REMEMBER- Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum approved the design plan for the USD 35 bn new passenger terminal at Al Maktoum International Airport back in April 2024. The expanded airport is set to be the world’s largest, hosting over 260 mn passengers, handling 12 mn tons of annual cargo, accommodating around 400 aircraft gates, and featuring five parallel runways.

Also in the pipeline: Falcon Aviation inked an agreement with Mubadala-backed electric flying car manufacturer Archer Aviation to develop a “vertiport” network in key locations across Dubai and Abu Dhabi by this year. The two firms will develop the infrastructure for two vertiports — one at Falcon Heliport at Atlantis, the Palm in Dubai, and the other at the Marina Mall heliport in Abu Dhabi’s Corniche. Once operational, the service will allow Dubai and Abu Dhabi residents to fly between the two emirates in 30 minutes aboard Archer’s piloted, four-passenger aircraft, Midnight.

Shuaa Capital to issue AED 267.1 mn MCBs in exchange for existing notes

Shuaa Capital is set to issue AED 267.1 mn in mandatory convertible bonds to existing noteholders as an indicative outcome of the exchange offer given for its USD 150 mn notes due on 31 March, according to a DFM disclosure (pdf). The company has accepted the exchange of USD 72.7 mn in existing notes for MCBs out of the USD 76.1 mn in valid tenders received. This accepted amount is subject to pro-rata scaling, with an indicative pro-ration factor of 99%.

REMEMBER- Shuaa initially extended the offer to noteholders of its USD 150 mn bonds, allowing them to exchange up to USD 75 mn in principal for AED-denominated MCBs, with settlement scheduled for 18 March. The offer remains subject to approval from the Securities and Commodities Authority (SCA). This follows a prior agreement with bondholders in April 2024, enabling them to partially convert their holdings into equity, with the remaining debt to be settled at a markdown by 31 March 2025.

What’s next? The indicative, non-binding results will be finalized after the issuer assesses them against multiple criteria, including the validity of submitted exchange details. The final results will be issued once all approval conditions are satisfied.

This is the second tranche of the AED 425.5 mn MCBs the company approved on 17 February. The company previously secured binding commitments from institutional investors for the first tranche, valued at up to AED 150 mn, convertible into shares at AED 0.32 per share. Shuaa had earlier announced plans to issue a total of AED 642.5 mn in MCBs as part of its broader capital optimization strategy.

This is all part of Shuaa’s ongoing restructuring plan, which includes appointing a new management team, settling approximately AED 500 mn in margin facilities, and the restructuring of AED 208 mn in outstanding obligations with its senior creditor. Additionally, it secured a USD 300 mn seven-year facility from the National Bank of Fujairah and the Arab Energy Fund in January.

National General Ins. net income rises 70% y-o-y in 2024

National General Ins. net income rose 70.3% y-o-y to AED 127.5 mn in FY 2024, according to its financial statements (pdf). Revenues climbed 17.2% y-o-y to AED 874 mn, while investment income more than doubled to AED 121 mn.

Next up: Shareholders will vote on a 45% dividend payout totaling AED 74.2 mn.

FAB restructures and brings in new leadership

First Abu Dhabi Bank (FAB) is undergoing a major restructuring and will now operate under four divisions: investment banking and markets, wholesale banking, personal, wealth and business banking, and international banking, Bloomberg reports, citing a memo to staff it has seen. The restructuring aims to strengthen its financial and advisory services in the Gulf and deliver bigger returns to shareholders, the memo reportedly said.

Who’s at the helm? Former FAB group head of investment banking and ex-HSBC executive Martin Tricaud (LinkedIn) will lead the wholesale banking division. Meanwhile, Sara Al Binali (LinkedIn) is stepping down as head of corporate and commercial banking, with her new role yet to be announced. The bank is also reportedly eyeing Citigroup’s former vice chairman and managing director, Linos Lekkas (LinkedIn) to head up its investment banking operations.

This has been in the works for a while: Two senior executives left the bank in January , while the former head of North Africa, Levant, and Central Asia at Citi, Omar Hafeez, recently joined the bank as head of international operations. Earlier last year, it tapped Chris Jaques as its chief risk officer.

Brigadier Al Dhaheri named director-general of ADCDA: The Abu Dhabi Executive Council appointed Brigadier Salem Abdullah bin Barrak Al Dhaheri as director-general of the Abu Dhabi Civil Defence Authority (ADCDA), state news agency Wam reports. Al Dhaheri previously served as the acting director-general of the authority.

Du eyes 6G in partnership with Nokia

TELECOMS-

#1- Nokia, du partner to explore 6G technology in the UAE: Nokia and du signed an MoU to collaborate on 6G research and development, focusing on future network innovations, use cases, and applications, according to a pres s release. The partnership includes field trials, proof-of-concept demonstrations, and research on key 6G enablers to help define standards and protocols for next-generation networks.

Key areas of focus include ultra-high-speed connectivity, AI-native network architectures, enhanced security frameworks, and sustainable network design. The collaboration will also explore digital twin environments, human-machine interfaces, and multi-sensory applications tailored to the UAE market.

Research will be conducted in phases, with periodic assessments to align on technical, regulatory, and commercial outcomes, paving the way for future trials and deployment.

#2- du, Microsoft partner on AI-powered call center: State-owned telecom operator du is partnering with Microsoft to upgrade its call center operations with AI and cloud technologies, according to a press release. The project will introduce real-time call insights, VoiceBot support, and post-call analytics to improve first call resolution and cut average handling time.

BANKING-

Mashreq partners with Mastercard for digital bank in Pakistan: Our friends at Mashreq entered a multi-year partnership with Mastercard to support the launch of its digital bank in Pakistan, according to LinkedIn post. The collaboration will focus on developing exclusive card solutions for various customer segments, including individual consumers, affluent clients, and businesses.

REMEMBER- Mashreq received a restricted license in January from Pakistan's State Bank to commence its pilot operations as a digital retail bank.

M&A-

UAE-based financial services provider Capital Haus nabbed an 11.6% stake in ASX-listed financial advisory Equity Story Group for AUD 500k, bringing its assets under management (AUM) past the USD 1 bn mark, according to two separate statements (here and here, pdf). The newly-bought 19.2k ordinary shares will be held in escrow for 12 months. The wealth manager also secured some 12.8 mn buy options in the group, giving it the right to buy more shares at a fixed price of AUD 0.05 until December 2026. Capital Haus operates primarily in the Emirati, Australian and Swiss markets. Capital Haus Founder and Managing Director Brendan Gow will sit on Equity Story’s board as an executive director.

The rationale: “Through our strategic stake in Equity Story, we are not just expanding our global reach but also creating a gateway for UAE investors to diversify their portfolios and capitalize on high-growth opportunities across international markets,” Gow said in the press release.

REAL ESTATE-

#1- Dubai-based Innovate Living acquired waterfront plots on Dubai Islands for a real estate development pipeline worth AED 1.4 bn, according to a press release. The company plans to develop ultra-luxurious residential projects in the area.

#2- Aldar sold out the first phase of its residential project, The Wilds, generating AED 5 bn in sales from 734 villas, according to a press release (pdf). Developed in partnership with Dubai Holding, the project saw strong demand, with 92% of sales coming from expatriates and overseas buyers.

PAYMENTS-

Emirates NBD partnered with Visa to launch the first Visa Commercial Pay-Mobile services in the UAE, it said in a press release. SME and corporate clients can use the service to make point-of-sale (POS) payments with Visa virtual cards on mobile devices, Google Pay, and Apple Pay. It uses tokenized credentials to provide better security, real-time controls, and expensive management.

DEFENSE-

GAL and Thales sign four-year cooperation partnership: Abu Dhabi-based Global Aerospace Logistics (GAL) and French multinational aerospace and defense firm Thales signed a four-year agreement to develop support for the UAE’s Maritime Patrol Aircraft (MPA) and explore further cooperation in the defense and aerospace sectors, according to a press release. Thales will also provide training for GAL’s Next 50 Initiative, which aims to train Emirati aerospace professionals.

The Idex and Navdex 2025 conferences also saw GAL sign agreements with Safran Aircraft Engines on military aviation services, and with Saudi Arabia’s Pannesma on aircraft maintenance and upgrading cooperation. Thales inked numerous agreements during the conferences as well (here and here).

TRADE-

Sharjah and Bangladesh ink MoU on bilateral trade: The Sharjah Chamber of Commerce and Industry (SCCI) signed an MoU with Bangladesh’s Dhaka Chamber of Commerce and Insudstry (DCCI) to strengthen bilateral trade and economic partnerships, Wam reports.The DCCI also signed an MoU with Dubai Chambers last month and organized a conference with its Abu Dhabi counterpart.

On a national level, President Sheikh bin Zayed Al Nahyan discussed increasing Emirati-Bangladeshi trade last May, and 2024 also saw AD Ports ink an MoU to develop and operate a multi-purpose port in Chittagong in Bangladesh.

INVESTMENT-

IFZA to invest in Pakistan’s special economic zones: The International Freezones Authority (IFZA) signed an MoU with Pakistan’s government to invest in Pakistan’s special economic zones, Arab News reports, citing statements from Pakistan’s Prime Minister Shehbaz Sherif’s office.

REMEMBER- The UAE, Pakistan’s third-largest trading partner, also inked four agreements with Pakistan just days ago to up cooperation in natural resources, financial services, and infrastructure.

Private equity industry’s AUM fell for the first time in decades amid liquidity crunch

Global private equity fundraising took a hit in 2024, with buyout funds securing 23% less capital than the previous year as the tighter rate environment and a slowdown in exits led to weaker capital distributions, prompting LPs to scale back new commitments, according to Bain & Company’s global private equity report (pdf). “While global buyout AUM has tripled over the past decade, distributions as a percentage of net asset value have fallen from an average of 29% from 2014 to 2017 to 11% today,” the report reads.

Global buyout assets under management (AUM) dipped for the first time on record — since Bain began tracking industry assets in 2005 — to USD 4.7 tn as of June 2024, down 2% y-o-y.

Still, 2024 saw higher buyouts + more exits: The total value of buyouts was up 37% y-o-y to USD 602 bn last year (excluding add-on transactions) with an increase in transaction count. Exits were also up 34% with transactions worth a total of USD 468 bn, with an increase in exit count over the same period, according to the report.

The number of closed funds dropped, and over a third of those that did close had been fundraising for two years or more. Limited partners (LPs) prioritized established firms with strong track records, making it tougher for smaller or newer funds to attract capital, Bain said.

The key takeaway: GPs will need to differentiate themselves through operational value creation rather than relying on financial engineering, Bain advised. Mega-funds and sector specialists are expected to lead in fundraising, while generalist strategies are more likely to face headwinds, according to the report.

“That spells a clear mandate for GPs: If you can’t offer investors a differentiated value proposition, raising your next fund is going to be a serious challenge,” according to the report.

GPs have already started to get creative, leveraging minority stake sales, dividend recaps, secondaries, and NAV loans — strategies that have already generated USD 360 bn last year without full divestments.

A bumpy year ahead: “It won’t all be better in 2025 [...] it's a three- or four-year problem,” Chair of Bain’s global private equity practice, Hugh MacArthur told the Financial Times, adding that “the pace of liquidity coming back to [fund investors] continues to be stressed.”

MARKETS THIS MORNING-

Asian markets opened higher this morning, tracking gains on Wall Street following US President Donald Trump’s decision to delay tariffs on some automakers. Japan’s Nikkei and the Topix were both up nearly 0.8%, while South Korea’s Kospi was up 0.6% and Hong Kong’s Hang Seng was up 2% on the back of rallying tech stocks.

Over on Wall Street, futures are dipping slightly as a volatile week of trading nears its end.

ADX	9,557	-0.4% (YTD: +1.5%)
DFM	5,313	-0.8% (YTD: +3%)
Nasdaq Dubai UAE20	4,371	-1.1% (YTD: +5%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.2% o/n	4.4% 1 yr
TASI	11,899	-0.3% (YTD: -1.1%)
EGX30	30,876	+0.4% (YTD: +3.8%)
S&P 500	5,843	+1.1% (YTD: -0.7%)
FTSE 100	8,756	0.0% (YTD: +7.1%)
Euro Stoxx 50	5,489	+2.0% (YTD: +12.1%)
Brent crude	USD 69.39	-2.3%
Natural gas (Nymex)	USD 4.47	+2.9%
Gold	USD 2,926	+0.2%
BTC	USD 90,217	-3.1% (YTD: -3.5%)

THE CLOSING BELL-

The DFM fell 0.8% yesterday on turnover of AED 658.1 mn. The index is up 3% YTD.

In the green: Emirates Islamic Bank (+11.6%), National International Holding Company (+9.2%) and Ekttitab Holding Company (+3.6%).

In the red: Naeem Holding for Investments (-9.6%), Agility The Public Warehousing Company (-7.9%) and International Financial Advisors (-6.6%).

Over on the ADX, the index fell 0.4% on turnover of AED 1.1 bn. Nasdaq Dubai was down 1.1%, and up 5% YTD.

CORPORATE ACTIONS-

#1- Alef Education’s board has proposed a dividend of AED 199.2 mn for 2024, bringing total distributions for the year to AED 402.8 mn — equivalent to 575.4% of paid-up share capital, according to an ADX disclosure (pdf).

REMEMBER- Alef Education is committed to a minimum dividend payout of AED 135 mn (AED 0.09 per share), according to its IPO prospectus.

#3- The Commercial Bank of Dubai has approved distributing AED 1.5 bn in dividends, equal to 50.7% of its paid-up capital as of the end of last year, according to disclosures to the DFM (pdf) and Nasdaq Dubai (pdf). It also approved the update of its USD 3 bn Euro Medium Term Note program and the issuance of non-convertible bonds.

#4- Emirates NBD is calling its USD 1 bn perpetual additional Tier 1 capital securities issuance from 20 March 2019, according to a disclosure (pdf) to Nasdaq Dubai. Outstanding capital securities will be redeemed on 20 March 2025.

#5- Orient Ins. will distribute AED 400 mn in dividends, equivalent to 80% of its share capital, to its shareholders, after its board of directors approved the move, it said in a disclosure (pdf) to the DFM.

Women entrepreneurs in the UAE are more optimistic about their businesses’ growth than men -Mastercard

A recent Mastercard study shows that 84% of women in the UAE are considering starting their own business, with nearly equal numbers of men (47%) and women (49%) identifying as entrepreneurs, according to a press release.

Young women are at the forefront of this trend, with millennials (53%) and Gen Z (44%) driving business creation. Popular industries include food and drink (26%), online selling (22%), and cosmetics (19%).

Optimism is strong among female entrepreneurs, with 98% expecting revenue growth in the next five years — outpacing male business owners, 85% of whom share the same outlook.

More women (56%) than men (52%) have side hustles, using freelancing, tutoring, and content creation to build financial independence. AI is also a game-changer, with 75% of women entrepreneurs integrating it into their businesses and 85% reporting cost or time savings.

Challenges persist: Some 67% of women cite lack of funding as a major barrier, compared to 59% of men. Confidence gaps also play a role, with 30% of women reporting self-doubt — three times higher than men at 10%. Fraud is another concern, affecting 35% of women entrepreneurs, though fewer women (48%) than men (72%) hesitate to expand due to fraud risks.

CALENDAR

MARCH

7 February-29 April (Friday-Tuesday): The Abu Dhabi Festival, Abu Dhabi.

2-7 March (Monday-Friday): The Nad Al Sheba Padel Championship, Nad Al Sheba Sports Complex, Dubai.

5-8 March (Wednesday-Saturday): The Forbes 30/50 Summit, Abu Dhabi.

5-9 March (Wednesday-Sunday): Ajman Entrepreneurship Week 2025, Al Jurf Park and Mushairif Market.

8 March (Saturday): Future Women Leaders Forum 2025, Taj Exotica, The Palm, Dubai

11 March (Tuesday): Alpha Data shares begin trading.

18-19 March (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

29 March (Saturday): New traffic regulations and minimum driving age to take effect.

31 March-2 April (Monday-Wednesday): Eid Al Fitr, national holiday.

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

1 April (Tuesday): New ADGM employment regulations come into effect.

1 April (Tuesday): New personal status law comes into effect.

1 April (Tuesday): Cabinet to roll out new tightened merger control rules,

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

7-10 April (Monday-Thursday) : EFG Hermes One on One conference, Dubai.

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

7-9 April (Monday-Wednesday): Middle East Energy, Dubai World Trade Center.

7-9 April (Monday-Wednesday): World Local Production Forum's 3rd edition, Abu Dhabi National Exhibition Center.

11-13 April (Friday-Sunday): I-Film Festival, Yas Creative Hub, Abu Dhabi.

12-13 April (Saturday-Sunday): Global Justice, Love & Peace Summit, Dubai Exhibition Centre, Expo City Dubai.

13-14 May (Tuesday-Wednesday): The Annual HR Tech MENA, Dubai.

14-16 April (Monday-Wednesday): Dubai Woodshow’s 21st Edition, Dubai World Trade Center

14-16 April (Monday-Wednesday): IPS congress, Dubai World Trade Center.

14-26 April (Monday-Saturday): Solana Economic Zone, Dubai.

15-17 April (Tuesday-Thursday): The Abu Dhabi Global Health Week, Adnec center, Abu Dhabi.

April 15 (Tuesday): The Global Islamic FinTech Forum 2025, the Dusit Thani Hotel, Dubai.

16-18 April (Wednesday-Friday): World Future Energy Summit,Abu Dhabi National Exhibition, Abu Dhabi.

21-25 April (Monday-Friday): The Dubai AI Week, Museum of the Future and Area 2071, Emirates Towers, Dubai.

22-24 April (Tuesday-Thursday): DOMOTEX Middle East, Dubai World Trade Center, Dubai.

25 April-11 May (Friday-Sunday): Dubai Esports and Games Festival, Dubai World Trade Center.

28 April-1 May (Monday-Thursday): The Arabian Travel Market, Dubai World Trade Center

28 April-2 May (Monday-Friday): The 64th Annual Conference of the International Federation of Air Traffic Controllers’ Associations (IFATCA)

6-8 May (Tuesday-Thursday): Airport Show, Dubai World Trade Centre.

Signposted to happen sometime in April:

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

MAY

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

6-7 May (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

13-16 May (Tuesday-Friday): International Union for Health Promotion and Education Conference, Abu Dhabi.

13-15 May (Tuesday-Thursday): Cabsat Middle East and Satellite Middle East, Dubai World Trade Center.

15 May (Thursday-Sunday): The Economy Middle East Summit, ADGM, Abu Dhabi.

15-18 May (Thursday-Sunday): The GLA Global Logistics Conference, Grand Hyatt Dubai.

16-18 May (Friday-Sunday): GISEC, Dubai World Trade Center.

19-22 May (Monday-Thursday): Make it in the Emirates, Adnec, Abu Dhabi.

20-22 May (Tuesday-Thursday): Seamless Middle East 2025, Dubai World Trade Center.

23-25 May (Friday-Sunday): EuroLeague Final Four, Etihad Arena, Abu Dhabi.

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

30 May (Friday): Arafat Day.

31 May-2 June (Saturday-Monday): Eid Al Adha.

Signposted to happen sometime in May:

Asean and summit, Malaysia.

JUNE

17-18 June (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

24-25 June (Tuesday-Wednesday): Middle East Rail, Dubai World Trade Center.

27 June (Friday): Islamic New Year.

Signposted to happen sometime in 2H 2025:

Closing of XRG's acquisition of Covestro

JULY

6-7 July (Sunday-Monday): BRICS Summit, Rio de Janeiro.

29-30 July (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

SEPTEMBER

8-10 September (Monday-Wednesday): DigiHealth exhibition, World Trade Center, Dubai.

12-14 September (Friday-Sunday): The International Real Estate and Investment Show, Abu Dhabi.

16-17 September (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

24-25 September (Wednesday-Thursday): Mohammed Bin Rashid Leadership Forum, Mohammed Bin Rashid Center for Leadership Development, Dubai.

OCTOBER

3-16 October (Friday-Thursday): Dubai Home Festival.

7-9 October (Tuesday-Thursday): The International Symposium on the System of Radiological Protection, the Ritz-Carlton Abu Dhabi, Grand Canal.

9-15 October (Thursday-Wednesday): IUCN World Conservation Congress, Abu Dhabi.

27-29 October (Monday-Wednesday): Future Hospitality Summit, Madinat Jumeirah, Dubai.

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

28-29 October (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

NOVEMBER

15-17 November (Saturday-Monday): Myplant & Garden Middle East Green Expo, Dubai Exhibition Centre, Expo City.

17-21 November (Monday-Friday): Dubai Airshow 2025, Al Maktoum International Airport, Dubai.

18-19 November (Tuesday-Wednesday): Dubai Future Forum, Museum of the Future, Dubai.

DECEMBER

1-3 December (Monday-Wednesday): Eid Al Etihad (UAE National Day).

1-5 December (Monday-Friday): The World Congress of Neurosurgery, Dubai World Trade Center.

9-10 December (Tuesday-Wednesday): US Federal Reserve’s Federal Open Market Committee meeting.

Signposted to happen sometime in 2025:

The Middle East Electric Vehicle Show, Expo Center Sharjah.
e& will complete Adnoc’s private 5G network.
Executive Committee Meeting (EXCOM 2025) conference of the World Smart Sustainable Cities Organisation (WeGO)
The International Civil Aviation Organization’s Global Implementation Support Symposium, Abu Dhabi.
Universal Postal Congress 2025, Dubai.

Signposted to happen sometime in the fall of 2025:

2025 Games of the Future, Dubai.
ICOM General Conference 2025, Dubai

Signposted to happen sometime in 2026:

3-5 February (Tuesday-Thursday): The World Governments Summit.
11-13 May (Monday-Wednesday): AI Everything Global, Adnec Center.
The UAE to host the Arab Competition Forum
Dubai to host the Arab Actuarial Conference
United Nations Water Conference 2026, UAE
9-11 January (Friday-Sunday): 1 Bn Followers Summit’s fourth edition, UAE

Signposted to happen sometime in 2027:

Abu Dhabi’s solar and battery energy facility, combining 5.2 GW of solar capacity and 19 GWh of battery storage, is set for commissioning.

Signposted to happen sometime between 2027 and 2029:

The commissioning of the seventh phase of Mohammed bin Rashid Al Maktoum Solar Park.

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