Non-oil business saw slower growth in April due to the storm

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Dubai fintech summit kicks off + FAB eyeing a stake in Yes Bank?

Good morning, nice people. We hope you had a relaxing weekend, and a wonderful Orthodox Easter for those celebrating.

THE BIG STORY AT HOME over the weekend is the UAE’s non-oil private sector seeing slower growth in April on the back of business disruptions due to the storm. Also worth your attention: Mubadala Capital has earmarked USD 13.5 bn in investments in Brazil; and Etihad Airways tapped more advisors for its IPO.

PUBLIC SERVICE ANNOUNCEMENT-

#1- We’re in for a hot and sunny week, with a chance of light rain: This week’s weather will be mostly sunny, though the National Center of Meteorology forecasts some clouds and the possibility of rainfall and light to moderate winds, especially in the southern and western regions.

Temperatures today will hit 37°C in Dubai, with an overnight low of 27°C, and 38°C in Abu Dhabi, before cooling to an overnight low of 29°C.

#2- Environment Ministry to address post-storm mosquito madness: In response to the widespread increase in mosquitoes after last month’s heavy rains and flooding, the Environment Ministry, the National Emergency, Crisis and Disaster Management Authority, and local authorities are ramping up efforts to eradicate mosquito breeding grounds, according to an X post.

#3- Dubai has announced amended hours for lakeside parks, residential parks, and playgrounds. Leisure spots will now open from 8am to 11pm, Monday through Thursday, and until midnight on Fridays, Saturdays, and public holidays.

HAPPENING TODAY-

#1- The Dubai Fintech Summit 2024 kicks off today and will run through tomorrow at Madinat Jumeirah. The summit will host over 300 thought leaders on five stages and present tech from 200+ exhibitors.

#2- Sharjah + Dubai trade missions heading to Asia: A trade delegation from the Sharjah Chamber of Commerce and Industry led by Chairman Abdullah Sultan Al Owais landed in India yesterday and will be there until Friday, 10 May, Wam reports. The mission will be looking to strengthen economic ties and explore potential investments.

At the same time, a Dubai International Chamber trade mission will head to Indonesia and Vietnam to help local companies grow in these markets, Wam reports.

#3- The Arab Tourism Media Awards kicks off today and runs through to Thursday, 9 May, at the Dubai International Convention and Exhibition Centre, state news agency Wam reports. The Arab Union of Tourist Media will present awards to 34 Arab personalities, tourism institutions, and cities that have contributed to the tourism industry in the Arab region.

#4- The Arabian Travel Market also kicks off today and runs until Thursday at the Dubai World Trade Center under the theme Transforming Travel Through Entrepreneurship. The event will focus on issues relating to entrepreneurial strategies.

THE BIG STORY ABROAD-

Negotiators from Egypt, the United States, and Qatar are working overtime to prevent indirect talks between Hamas and Israel from collapsing.

Hamas left Cairo last night for Doha. The group said talks in Egypt had been “in-depth and serious,” but that no agreement had been reached. Politico reports that Israeli Defense Minister Yoav Gallant claims Hamas wasn’t serious about a ceasefire agreement and warned of “a powerful operation in the very near future in Rafah and other places across all of Gaza.”

It’s not clear whether talks are continuing in Doha. CIA chief Bill Burns was also in Caro over the weekend — and also left yesterday for the Qatari capital.

The bottom line: “Hamas blamed the lack of progress on Mr. Netanyahu, who vowed again in recent days that the Israeli army will invade Rafah … with or without an agreement. … Palestinians living in miserable conditions in Gaza [will] not experience an imminent reprieve,” the New York Times reports.

Israel slammed the gates closed at the Kerem Shalom crossing, a key entry point along with Rafah for humanitarian aid, after Hamas forces killed three Israeli soldiers. A retaliatory strike by Israel killed at least 19 Palestinians yesterday.

MEANWHILE- The Biden administration has slapped a hold on at least one shipment of ammunition to Israel, Axios reports in an exclusive. US officials have declined to explain the halt, which came after Joe Biden started taking serious domestic fire for his unblinking support of Israel’s war in Gaza.

WATCH THIS SPACE- Is Russia planning sabotage operations across Europe? That’s the warning in the Financial Times, which says that European intelligence agencies believe Russian operatives are “preparing covert bombings, arson and attacks on infrastructure” across the continent.

HAPPENING THIS WEEK-

It’s a quiet morning in the global business pages, but don’t expect that to hold for the whole week:

Chinese leader Xi Jinping is trying to warm-up ties with Europe. He’s in Paris this morning to meet French President Emmanuel Macron and will then see European Commission chief Ursula von der Leyen before heading later this week to Serbia and Hungary.

For our fellow journalism nerds: It’s Pulitzer Prize day — the announcement will drop at 11pm UAE time here.

Aramco will release 1Q 2024 numbers tomorrow.

For our fellow iSheep: Apple is expected to unveil new iPads tomorrow at 6pm UAE time (10am Pacific). Pundits are hoping for a revamp of the line that restores some coherence to the offering (and for the Pro to get a FaceTime camera on the long edge), but the only meaningful way to improve on the lineup would be to unshackle iPadOS. You can stream the announcement from Apple’s website or its Youtube channel.

Apple’s announcement kicks off a series of big tech events, including next week’s Google I/O and race toward Apple’s developers conference in June.

The Bank of England’s monetary policy committee will meet on Thursday to review interest rates. Don’t expect a cut.

HERE AT HOME-

#1- TheAnnual Investment Meeting (AIM) Congress will take place tomorrow and run until Thursday, 9 May at the Abu Dhabi National Exhibition Center. Gathering senior government officials and industry experts, the summit will focus on exploring means of strengthening the economy under the theme Resilient, Sustainable Economic Growth – Creating a Healthy and Prospective Investment through FDI and FPI.

#2- The Innovative Finance Expo is set to be held this Wednesday and Thursday at the Jumeirah Emirates Towers in Dubai. The event will bring together fintech and blockchain companies and experts to serve as a knowledge exchange platform, showcasing the latest developments in the financial sector, including DeFi crypto, foreign exchanges, payment, and finance technologies.

WATCH THIS SPACE-

#1- Has FAB joined the bidding race for Yes Bank? First Abu Dhabi Bank (FAB) is reportedly seeking to acquire a 25% stake in Yes Bank, India’s sixth-largest private sector lender, the Hindu Business Line reports, citing sources familiar with the matter. The Emirates’ biggest lender has held talks with the Reserve Bank of India, India’s central bank, to discuss the potential transaction. Among the bidders for the stake is Japan’s Mizuho Bank, which reportedly tapped Bank of America to facilitate the stake purchase.

ICYMI- Emirates NBD is also reportedly eyeing a stake in Yes Bank, along with other international bidders, including Japan’s Mitsubishi UFJ Financial Group and Sumitomo Mitsui Banking Corp.

Background: A State Bank of India-led consortium is exploring plans to sell its stake in Yes Bank, after bailing out of the Indian bank in 2020. Investors were granted a three-year lock-in period, which expired in March 2023.

#2- Deutsche Bank plans to double the assets it manages in the Middle East and Southeast Asia, with a specific focus on the UAE and Saudi Arabia, Claudio de Sanctis told {Bloomberg} in an interview. The two regions — which de Sanctis says are “interlinked” — will be allocated more resources, and has already seen more hires than the bank’s other offices, as wealthy families in both countries become more interested in investing in Southeast Asia and vice versa.

DATA POINTS-

#1- Ajman recorded 7% y-o-y growth in tourism revenues in 1Q 2024, Wam reports, citing a statement from the Ajman Tourism Development Department. The department attributed the increase in revenue to occupancy rates growing 3% y-o-y and visitor numbers increasing 9% y-o-y compared to last year’s figures.

#2- Some 94% of financial transactions at Emirates NBD happen outside the lender’s physical branches, Wam reports, citing a statement from the bank’s head of retail banking Marwan Hadi, affirming that the lender will continue to utilize “web3 technologies to enrich digital experiences for customers.”

OUR NEXT CONFERENCE IN CAIRO-

Foreign investors are falling in love with Egypt again… Foreign investors we speak with (debt, equity, and strategic alike) have growing appetite for Egypt. They’re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that’s taking shape after the float of the EGP, and its competitive advantages are clear to many of them: It’s a massive consumer opportunity and a regional export hub of tomorrow.

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: Spark conversations about a future that sees Saudi Arabia, Egypt, and the the UAE at the heart of a more vital Middle East economy — and provide an early, actionable roadmap for those who are “long Egypt.”

We’ll be talking with you about the agenda over the coming couple of weeks. It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow’s opportunities — and who aren’t afraid to answer some tough questions.

*** Interested in attending? Tap or click here to let us know. Seating is limited.

***

CIRCLE YOUR CALENDAR-

The Middle East Petroleum and Gas Conference is set to take place from 20-22 May in Dubai, hosted by the Emirates National Oil Company and under the organization of S&P Global Commodity Insights. The theme of the conference is “Evolving Core Energy Markets within a Sustainable Landscape.”

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

April sees slower non-oil business expansion due to the storm

Non-oil business activity grew at a slower pace in April due to disruptions from the storm, which impacted business operations and sales, according to S&P Global’s purchasing manager’s index (pdf). The index dipped to 55.3 in April, down from 56.9 in March, remaining well above the 50.0 threshold that separates growth from contraction, although it came in lower than the post-pandemic peak in February.

Business growth came in at its slowest pace in 14 months, as new order volumes slowed and consumer demand eased amid business disruptions caused by the flooding, as well as high workloads, which also led to a significant increase in backlogs.

Purchasing expenses were high: April saw a spike in purchasing and staff costs driven by increased raw material prices and efforts to offset employees’ higher living expenses. Meanwhile, companies slashed prices to boost sales amid stiff competition, resulting in a marginal decrease in average prices.

Companies were cautious about their inventories, with stocks of purchases expanding at its slowest rate since March 2022. Supplier performance also saw minimal improvement, partly due to transportation disruptions caused by the flooding during the month.

Staffing levels only grew modestly: While companies saw a continued increase in employment levels on the back of new projects and strong demand — which maintained a two-year stretch of jobs being created — the pace of employment growth was mild due to reported high costs. “Pressure on operating margins remained a challenge, as price discounting continued despite faster rises in purchasing costs and salary payments,” said S&P Global Market Intelligence Economics Director Tim Moore.

Some respite: Business sentiment remained strong as companies noted “buoyant market conditions and strong sales pipelines, as well as a swift recovery from weather-related business disruptions.”

Dubai’s PMI, meanwhile, reached an eight-month low but still posted growth, with the index slipping to 55.1 in April, down from 58.0 in March. “Companies operating in Dubai recorded a particularly acute loss of sales momentum as adverse weather disruptions hit business and consumer spending,” Moore said.

FROM THE REGION-

Non-oil business activity maintained a steady growth rate in April, thanks to favorable market conditions including sustained levels of high demand, growth in customer base, new investments, and heightened competition, according to the Riyad Bank Saudi Arabia PMI (pdf) out yesterday. The headline purchasing managers’ index remained unchanged m-o-m at 57.0, remaining firmly above the 50 threshold that separates growth from contraction.

Mubadala Capital to invest USD 13.5 bn in biofuels project in Brazil, eyes new stock exchange and further investments

Mubadala Capital earmarks USD 13.5 bn for biofuels in Brazil: Mubadala Capital — sovereign wealth fund Mubadala’s asset management arm — is looking to set up a USD 13.5 bn biofuels project in Brazil over the next 10 years to produce renewable diesel and sustainable aviation fuel, Mubadala Capital’s head of Brazil, Oscar Fahlgren, told the Financial Times. Mubadala Capital will fund the investment through a mix of equity and debt over a period of five to 10 years, according to Fahlgren.

The details: The biofuels plant — to be developed by Mubadala Capital’s energy subsidiary Acelen — will comprise five USD 2.7 bn modules, each including a biorefinery with the capacity to process 20k fuel barrels per day. The first module is set to commence production by the end of 2026. Additionally, Mubadala Capital plans to convert an existing oil refinery, acquired from Brazil’s state-owned energy firm Petrobras in 2021, in the northeast region of Brazil.

Why Brazil? “It’s all about feedstock [which] in reality is agriculture. And Brazil is probably the best-placed country on the planet when it comes to agricultural proficiency because of the climate and the fertile soil. Brazil is to agriculture what Abu Dhabi is to oil,” Fahlgren told the salmon-colored paper.

This isn’t the first time we hear about these projects: Mubadala Capital signed an MoU with Petrobras in 2023 to partner on the refinery project, which Petrobras is looking to repurchase from Mubadala. In April 2023, Acelen revealed the estimated cost for the biofuels project’s first module, saying it plans to invest USD 2.4 bn to produce 1 bn liters per year of hydrotreated vegetable oil.

Fahlgren confirmed that Mubadala Capital is planning to open a new stock exchange in Brazil, stating that “Brazil is a very large country,” and that it plans to roll out the exchange in a staged launch, starting with equities and later expanding to other asset classes.

ICYMI- Bloomberg reported in March that Mubadala Capital plans to establish a stock exchange in Brazil through its subsidiary, Americas Trading Group (ATG), to rival the Brazilian stock exchange, B3. Mubadala is looking to launch the new exchange in Sao Paulo by 2025, aiming to enhance competition, potentially reduce listing and trading costs for companies in Brazil.

Mubadala has a diverse portfolio in Brazil: Among Mubadala Capital’s various investments in Brazil — which include metro lines and the São Paulo Formula 1 Grand Prix promoter MC Brazil Motorspor t — the asset manager acquired Grupo Novonor’s 6.85% stake in Brazilian sugarcane processor Atvos, raising its total stake to 38.35%.

Mubadala Capital also raised its stake in Brazilian food retailer Zamp to 58% after investing some USD 200 mn in Zamp alongside Affinity Partners, the private equity firm founded by Donald Trump’s son-in-law Jared Kushner. This move “just happened and we have no other specific investments earmarked, but I wouldn’t rule it out,” Fahlgren said as he expressed that he was “very happy” about the partnership.

ICYMI- Affinity Partners joined Mubadala on Zamp’s board after Asad Naqvi was elected as board member, alongside two executives appointed by Mubadala last week.

Mubadala wants to expand its foothold in Brazil even further: “We’re very bullish on the investment climate in Brazil right now and the opportunities we see. We do have a number of assets that are relatively mature today, and could be potential exit candidates in the not too distant future,” Fahlgren said. The asset manager is reportedly mulling ownership in a new Brazilian football league.

Abu Dhabi’s Etihad Airways taps banks for 2024 IPO

Etihad Airways taps more advisors for IPO this year: Abu Dhabi flag carrier Etihad Airways has reportedly tapped Abu Dhabi Commercial Bank, Bank of America, BNP Paribas, and Morgan Stanley as joint bookrunners for its upcoming initial public offering, expected to take place the end of this year, Bloomberg reports, citing people it says are familiar with the matter. The offering could raise as much as USD 1 bn, according to the sources, who did not disclose the specific size and timing of the IPO.

ICYMI- Etihad parent company ADQ held talks earlier in March with banks about the potential listing that sources said could be “as soon as this year.” The wealth fund previously chose Citigroup, HSBC, First Abu Dhabi Bank as advisors for the airline’s IPO, and appointed Rothschild & Co. as independent financial advisor. ADQ is eyeing potentially going after both a traditional IPO and direct listing.

Background: ADQ was transferred full ownership of Etihad from the Supreme Council for Financial and Economic Affairs back in October 2022. The airline last year saw its net income grow fivefold, with CEO Antonoaldo Neves saying it is boosting profitability to prepare for the likelihood of an IPO.

First legacy airline to go public in the Gulf? Etihad could be the first major Gulf carrier to trade publicly if the IPO goes through. Saudi low-cost airline Flynas is also preparing to go public this year, tapping Goldman Sachs, Morgan Stanley, and Saudi Fransi Capital for its upcoming IPO in Riyadh.

And we have a bigger pipeline of IPOs: At least three other companies have expressed plans to move forward with IPOs this year, including edtech firm Alef Education, which has also already tapped banks to advise on their transactions. Amanat Holdings is also reportedly looking to list its healthcare unit, and shisha producer Advanced Inhalation Rituals is also eyeing an IPO in 1H 2024.

Dubizzle acquires automotive news platform Drive Arabia

Dubai-based platform Dubizzle Group has acquired automotive media and reviews platform Drive Arabia, according to a press release. The company plans to make a “significant investment” in the platform to “enhance its core value proposition as a transparent tool for car prices, specifications, and other relevant details to help us become the go-to platform for new car launches in the region,” Dubizzle CEO Haider Ali Khan said. No details were given about the terms or value of the transaction.

What’s in it for Dubizzle: Dubizzle Group plans to expand its automotive advertising offerings and reach, as well as introduce new products, according to the statement.

Plans for future acquisitions: “This is just the beginning and we are keeping a very keen eye on any other M&A [possibilities] that further help us expand our offerings in the verticals we operate in,” Khan said.

OTHER M&A NEWS-

EGA now owns Leichtmetall: Emirates Global Aluminium (EGA) has closed its acquisition of 100% of German aluminum recycling company Leichtmetall Aluminum Giesserei from Leichtmetall Holding, according to a company statement. EGA finalized the transaction after receiving regulatory approval, the company said without providing details on the value of the purchase.

Background: The company revealed the transaction last month, marking its first major acquisition since it was formed through the merger of Dubai Aluminum and Emirates Aluminum.

The acquisition will bolster EGA’s renewable production capacity: Leichtmetall’s facilities operate with an annual production capacity of 30k tons of billets using renewable energy, with 80% of the input material being secondary aluminum. The new capacity will be added to 600k tons of primary aluminum EGA exports to Europe annually, bringing the company closer to European customers, as the EU inches closer to introducing its tax on carbon-intensive imports in 2026. Recycled aluminum is set to account for around 60% of global aluminum demand by 2030 and 70% by 2040, to reach 57 mn tons, EGA noted in its statement.

NMDC, Tecom report bottom line growth in 1Q 2024

NATIONAL MARINE DREDGING COMPANY-

The National Marine Dredging Company (NMDC) saw its net income climb 122% y-o-y to AED 641.1 mn in 1Q 2024, driven by a “strategic expansion into new projects,” according to the company’s earnings release (pdf). Revenues increased 67% y-o-y during the quarter to AED 5.3 bn, as the company was awarded AED 3.3 bn worth of contracts since the start of the year.

Looking ahead: “As we look forward, our focus is on sharpening our financial indicators, optimizing our operational processes to enhance profitability and revenue, and expanding our asset portfolio. Our strategy is built on a solid foundation of past achievements and the strategic acquisition of new projects,” said NMDC CEO Yasser Zaghloul.

TECOM GROUP-

Business district developer Tecom Group posted AED 293 mn in net income in 1Q 2024, up 15% y-o-y, according to the company’s earnings release (pdf). Its top line rose 10% y-o-y to AED 564 mn in 2023, primarily fueled by high occupancy rates, with commercial and industrial portfolios seeing 91% occupancy, and industrial lands seeing 98%.

What they said: “Demand from new customers across the six sectors we serve is palpable, notably for Grade A offices and industrial properties,” Tecom Group CEO Abdulla Belhoul said.

A positive outlook persists: “We anticipate the demand-induced growth momentum to be sustained for the rest of the year. Our confidence is underpinned by a positive macroeconomic outlook enabled by pro-growth government initiatives, including Dubai’s D33 and the UAE’s Operation 300 bn. We are confident in our ability to unlock greater shareholder value as we progress on our strategic growth agenda,” he added.

New Dubai Council formed + Dubai Racing and Equestrian Clubs have new boards

Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum formed the Dubai Council, which was established in 2021 and tasked with launching major projects and initiatives to advance the emirate’s development agenda, focusing on global competitiveness, leadership, and attractiveness, Wam reports. The council was

Sheikh Mohammed will chair the new council himself, with Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum and Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum acting as first and second vice chairmen. Also on the council:

President of the State Security of Dubai Talal Humaid Belhoul;
Secretary General of The Executive Council of Dubai Abdulla Mohammed Al Basti;
Commander-in-chief of Dubai Police Abdullah Khalifa Al Marri;
Director General and Chairman of the Roads and Transport Authority Mattar Mohammed Al Tayer;
CEO of the Dubai Electricity and Water Authority (Dewa) Saeed Mohammed Al Tayer;
Director General of Dubai’s Department of Economy and Tourism Helal Saeed Al Marri.

Sheikh Rashid bin Dalmook bin Juma Al Maktoum will now chair the boards of the Dubai Racing Club and the Dubai Equestrian Club, after Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum issued resolutions to form the board of directors for the foundations, the Dubai Media Office reported.

Sharjah Petroleum Council reveals new gas reserves in Al Hadiba + more from Dana Gas, Eppco, Etihad, DFM, Adia and others

ENERGY-

#1-New gas reserves discovered in Sharjah: The Sharjah Petroleum Council discovered new gas reserves in “promising economically viable quantities” in the Al Hadiba field, located north of the Al Sajaa Industrial Area in Sharjah, according to a statement. The quantities will be confirmed through upcoming testing over the next few days.

Sharjah has four other oilfields: Al Saja’a, Kahif, Mahani and Muayed.

This marks the first new discovery in the emirate since 2020, when state-owned Sharjah National Oil Corporation (SNOC) discovered a new onshore well of natural gas and condensate alongside Italy’s Eni — marking its first discovery in three decades.

#2- Dana Gas’ production in Iraq back to normal levels: Natural gas producer Dana Gas has brought back production at the Khor Mor gas field in Iraq’s Kurdistan region to normal levels after the company halted production due to a drone attack that hit the field last weekend, it said in an ADX disclosure (pdf). The Kurdistan regional and Iraqi federal governments have ensured security measures to strengthen defenses at the field.

#3- Enoc-Chevron JV Eppco Lubricants partnered with Swedish steel manufacturer SKF to bring SKF RecondOil technology to the UAE, according to a press release. The newly introduced technology cleans used oil by removing tiny particles that can damage machinery.

AVIATION-

#1- New Fujairah-Cairo flights in July: Fujairah International Airport launched direct flights between Fujairah and Cairoat a rate of two flights per week on Sundays and Thursdays, starting July Wam reports. The development stems from a cooperation between Fujairah Airport and Egyptair, Egypt’s state-owned flag carrier.

#2- Etihad Airways inked reciprocal interline partnerships with five new airlines — Kam Air, Sky Express, Rex Airlines, Jeju Air, and Myanmar Airways International — it said in a statement. The agreements streamline connectivity and baggage check-through on single tickets across networks and offer connections to some 80 destinations across Afghanistan, Greece, Australia, Korea, and Myanmar from Etihad’s gateways.

REAL ESTATE-

#1- Aark Developers launched its AED 4 bn Sora Beach Residences in Al Marjan Island, the first high rise on the island, according to a press release. Japanese architectural firm Nikken Sekkei — behind the design of the recently launched One Zabeel in Dubai — will design the development.

#2- Al Ashram appointed main contractor for Luce Palm Jumeirah: Taraf — Yas Holding ’s real estate arm — awarded Al Ashram Contracting a construction contract for an undisclosed value for its residential development, Luce at Palm Jumeirah, according to a press release.

CAPITAL MARKETS-

DFM collaborates with Swiss Six for dual/cross-listings and share transfers: The Dubai Financial Market (DFM) inked an agreement with the Swiss Financial Market Infrastructure Group Six to facilitate cross-listings and share fungibility, according to a statement (pdf) by the DFM. The agreement will also see Six and the Dubai Central Securities Depository work towards establishing a central securities depository for cross-border transfers, and identify further windows for cooperation on post-trade services and market data.

INVESTMENT-

Adia anchors Indian healthcare firm ahead of IPO: Abu Dhabi Investment Authority (Adia) was among 36 institutional investors that bought shares in Indian healthcare firm Indegene ahead of its IPO on the Bombay Stock Exchange, according to a bourse filing (pdf). Adia bought 276k shares, representing a 2.28% stake in Indegene. The stake was purchased for INR 12.5 mn (c. AED 550k), according to Indian broker 5paisa. Indegene raised a total of INR 5.49 bn (USD 65.8 mn) from institutional investors purchasing some 1.21 bn equity shares.

Warren Buffett praises Apple after trimming positions — and is a bit freaked out about AI

It’s a quiet morning on Planet Finance, with no single story having dominated the markets pages over the weekend.

Warren Buffett is getting attention on both sides of the Atlantic and in Asia. Berkshire Hathaway’s annual meeting is this weekend, and it’s generating lots of headlines. Here’s the Oracle of Omaha on:

Apple: Buffett went out of his way to praise Apple — his most important holding — after Berkshire trimmed its stake. The WSJ thinks the size of the company’s stake in Apple worries some investors.

Artificial intelligence: AI-powered scamming will be a global growth industry — and likened the technology’s potential impact on the world to that of nuclear weapons (watch, runtime: 1:29).

CLOSER TO HOME-

Fakeeh Care’s IPO set to be the biggest in KSA so far this year: Saudi private healthcare provider Fakeeh Care Group is looking to raise up to SAR 2.9 bn from its IPO on Tadawul’s main market in what is on track to be the largest share sale in the Kingdom so far this year. Fund and portfolio managers fully covered the IPO in just the first hour that bankers started taking orders on Thursday, Bloomberg says. Bankers say they will price the transaction in the SAR 53.00-57.50 per-share range.

REMEMBER- The UAE’s ADIA is emerging as a key buyer in Fakeeh Care IPO: UAE’s largest sovereign wealth fund Abu Dhabi Investment Authority (Adia) is set to purchase 1.04 mn shares as a cornerstone investment in Fakeeh Care’s IPO. Alongside Olayan Saudi Investment — the other cornerstone investor — the two funds will buy 1.99 mn shares worth SAR 173 mn.

ALSO- Saudi fintech outfit Rasan plans to sell a 30% stake on Tadawul’s main market through an offering of existing and new shares, it said in a prospectus (pdf). It lined up the Capital Market Authority’s approval for the share sale in March.

What’s on offer: Rasan is looking to sell 22.7 mn shares, including 17.4 mn shares from 15 selling shareholders and 5.3 mn news shares, according to the prospectus.

MARKETS THIS MORNING-

It’s a quiet start to the week in Asia, where the JPX and Korea Exchange are closed in observance of Children’s Day. Hong Kong’s Hang Seng is flat in early trading, while the Shanghai Composite is up 0.9%. US and European stock futures inched up overnight.

ADX	9,037	+0.2% (YTD: -5.6%)
DFM	4,142	+0.1% (YTD: +2.0%)
Nasdaq Dubai UAE20	3,524	+0.1% (YTD: -8.3%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.1% o/n	5.4% 1 yr
TASI	12,373	+0.2% (YTD: 3.4%)
EGX30	26,113	+3.3% (YTD: +4.9%)
S&P 500	5,127	+1.3% (YTD: +7.5%)
FTSE 100	8,213	+0.5% (YTD: +6.2%)
Euro Stoxx 50	4,921	+0.6% (YTD: +8.9%)
Brent crude	USD 82.96	-0.9%
Natural gas (Nymex)	USD 2.14	+5.3%
Gold	USD 2,301	-0.04%
BTC	USD 63,699	-0.2% (YTD: +51.6%)

THE CLOSING BELL-

The DFM rose 0.1% yesterday on turnover of AED 224.6 mn. The index is up 2.0% YTD.

In the green: Al Salam Bank (+3.6%), Emaar Development (+2.4%) and Emirates Reem Investments Company (+1.9%).

In the red: Takaful Emarat (-2.9%), Amlak Finance (-2.0%) and Ithmaar Holding (-1.6%).

Over on the ADX, the index closed up 0.2% on turnover of AED 961.4 mn. Meanwhile Nasdaq Dubai rose 0.1%.

UAE, Uzbekistan ink agreements to boost economic cooperation

The UAE and Uzbekistan ramped up economic partnerships during the latest session of their joint economic committee, focusing on expanding into new and sustainable economic sectors. The two countries inked agreements across sectors like tech and AI, trade, and wastewater treatment.

TECH-

The Investment Ministry and Uzbekistan’s Digital Technologies Ministry signed an MoU to co-invest in digital infrastructure in Uzbekistan, focusing on promoting investments in data center and artificial intelligence projects in Uzbekistan, Wam reports. The agreement also looks to attract major cloud service providers to the country, develop language models specific to Uzbekistan, and establish a local talent ecosystem for AI and computing.

The countries also agreed to swap information on economic policies and legislation, aiming to set up an international center for advanced digital technologies in Uzbekistan that leverages Emirati expertise in the field.

TOURISM-

More cooperation across tourism and travel? Economy Minister Abdulla Bin Touq Al Marri met with Chairman of Uzbekistan’s Tourism Committee Umid Shadiev on the sidelines of the committee’s session to explore cooperation in the tourism, aviation, travel, and hospitality sectors, Al Khaleej reports.

ALSO-

Etihad Export Credit Ins. Company and the Uzbekinvest Export-Import Ins. Company inked an MoU to provide ins. for exporters and financial institutions;
Abu Dhabi Sustainable Water Solutions and Uzbekistan’s Uzsuvtaminot inked an agreement to speed up the establishment of the largest wastewater treatment plant in Uzbekistan’s capital, Tashkent.

The UAE was elected by the UN Economic and Social Council as a member of the UN Statistical Commission for its 56th session, Emarat Al Youm reports, citing the managing director of the Federal Competitiveness and Statistics Centre, Hanan Ahli. The UAE will serve as a member of the commission for four years, from 2025 until 2028.

CALENDAR

MAY

21 April-7 May (Sunday- Tuesday): The ICC Women’s T20 World Cup Global Qualifier 2024.

5-10 May (Sunday-Friday): Sharjah Chamber of Commerce and Industry sends trade delegation to India

5-10 May (Sunday-Friday): Dubai International Chamber sends trade mission to Indonesia and Vietnam

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

6-9 May (Monday-Thursday): The Arabian Travel Market, Dubai World Trade Centre, Dubai.

6-9 May (Monday-Thursday): The Arab Tourism Media Awards, Dubai International Convention and Exhibition Centre.

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

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

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

9 May (Thursday): Spinneys shares begin trading.

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

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

15 May (Wednesday): HFM Summit, DIFC.

15 May (Wednesday): UAE and Indian officials are set to meet for the first time on the India-Middle East-Europe Economic Corridor.

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

19 May (Sunday): InvestopiaEurope, Milan.

19 May (Sunday): RTA’s Deadline for bids to design and build Dubai Metro’s Blue Line.

20-22 May (Monday-Wednesday): Middle East Petroleum & Gas Conference, Dubai.

21-23 May (Tuesday-Thursday):International Exhibition for National Security & Resilience, ADNEC Centre Abu Dhabi.

24-25 May (Friday-Saturday): Baby Expo, Dubai World Trade Centre.

27-29 May (Monday-Wednesday): Arab Media Forum, Dubai.

30 May (Thursday):Abu Dhabi Family Office Summit, Saadiyat Rotana Resort, Abu Dhabi.

JUNE

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

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

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

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

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

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

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

Signposted to happen sometime in 1H 2024:

Spinneys inaugurates its first store in KSA

JULY

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

SEPTEMBER

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

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

OCTOBER

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

NOVEMBER

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

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

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

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

DECEMBER

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

5-8 December (Thursday-Sunday): Formula 1 Etihad Airways Abu Dhabi Grand Prix, Yas Marina Circuit.

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

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

Signposted to happen sometime before the end of the year:

Spinneys inaugurates three more stores in KSA

Signposted to happen sometime in 2028:

Abu Dhabi to host the 47th Chess Olympiad

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