Non-oil economy continued to grow in January, but at a slower pace

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WHAT WE’RE TRACKING TODAY

THIS MORNING: LuLu Group eyes dual-listing on ADX + Tadawul

Good morning, nice people. It’s a brisk Tuesday morning, bringing us everything from macro indicators and capital markets news to legislation news. Let’s jump right in.

BUT FIRST- LuLu Group International, the operator of the iconic supermarket chain, is shopping around for bankers for a potential dual-listing on the ADX and Riyadh’s Tadawul in 2H 2024, Bloomberg reports. The offering could be worth as much as USD 1 bn, the business information service says, citing sources it says have knowledge of the company’s plans.

Abu Dhabi-headquartered LuLu is likely to list its GCC assets in the transaction. The company valued itself at north of USD 5 bn in 2020 when it sold a stake to Abu Dhabi wealth fund ADQ and last explored the possibility of an IPO in 2022. LuLu was thought in late 2023 to have been discussing the potential sale of a stake to Saudi Arabia’s Public Investment Fund.

In context: Dual listings in the UAE and Saudi Arabia are rare. MENA restaurant operator Americana Restaurants went for an ADX + Tadawul listing in 2022. LuLu declined to comment on Bloomberg’s report.

By the numbers: LuLu has 18 hypermarkets and seven shopping malls in its pipeline as it pushes ahead with aggressive growth plans. It has some 70k employees across more than two dozen countries, but its centers of gravity are the GCC, India and, more recently, Egypt.

HAPPENING TODAY-

#1- The Middle East Bunkering Convention continues today and tomorrow at the Hilton Dubai Jumeirah. The event brings together industry players to discuss issues in the global marine fuel sector, including supply chains, decarbonization, and new fuels.

#2- The Foreign Affairs Ministry’s Ambassadors and Representatives of Missions Abroad Forum is on its second day and runs until this Thursday, the ministry said in a statement. Over the span of 30 sessions, ministers, senior officials and government representatives will gather at the Foreign Affairs Ministry to discuss regional issues, geostrategic developments, and plans to advance the government’s strategy.

#3- The Mubadala Abu Dhabi Tennis Open tournament is underway at Zayed Sports City's International Tennis Center. Today will see the continuation of the round of 32, with the round of 16 kicking off tomorrow. The final will take place on Sunday, 11 February.

HAPPENING THIS WEEK

#1- Biggest dental conference happening this week at DWTC: The Arab Dental Exhibition Dubai is set to take place from tomorrow to Thursday at the Dubai World Trade Centre, bringing together an estimated 66k attendees and 5.3k global brands, state news agency Wam says. The gathering is one of the largest healthcare conferences in the region.

#2- Dubai’s PMI figures will be out on Thursday, 8 February. We have the more comprehensive federal PMI in today’s news well, below.

#3- The Sharjah Consultative Council will discuss restructuring the Police Science Academy in Sharjah this Thursday, Sharjah24 reports. The restructuring would be enforced under a proposed bill amending a 2014 law.

MORNING MUST-READ-

#1-2024 is going to look a lot like 2023, with some moderation, according to Emirates NBD: “The long-term outlook is absolutely brilliant because UAE is next Switzerland,” Emirates NBD’s Chief Investment Officer Maurice Gravier told Khaleej Times. Speaking at a media roundtable where the bank presented its outlook for 2024, Gravier added that geopolitical tensions will not impact the country’s booming property sector. However, prices could moderate as more supply pours into the market, he noted.

Macro outlook: The bank expects the UAE economy to expand at a 3.3% clip in 2024, accelerating slightly from the 3.1% growth expected to be logged last year, Khaleej Times reported separately. Growth will pick up to 4% by 2025, led by a 4.7% expansion of the non-oil economy.

Banks will also have a “good year” as companies continue to pay out dividends, said Anita Gupta, head of equity strategy wealth management at Emirates NBD, noting that it may not be the “astronomical” growth witnessed in 2023. Emirati banks saw net incomes and revenues soar to record highs over the past year, amid momentum in the real estate market and robust liquidity.

Emirates NBD sees less global central bank influence this year: “Central banks, who outright dominated markets for 15 years, should become less radical, more predictable, less prominent. With pivotal changes also materializing in the international order and in technology, the investment landscape is definitely rejuvenated,” said Gravier.

DATA POINTS-

#1-The job market could see a 20-25% ramp-up in hiring this year, following a 20% rise in 2023, Khaleej Times reports Marc Ellis' General Manager Aws Ismail. Hiring managers are looking to recruit more professionals in IT, finance, banking, AI, and cybersecurity according to Hidayath group Senior HR officer Nadeem Ahmed.

#2- Front-month trading volume on the Dubai-based energy-focused commodity exchange Dubai Mercantile Exchange (DME) rose 6.3% y-o-y in 2023, reaching 800 mn barrels, according to a DME press release. Physical delivery volumes rose 16% y-o-y to 210 mn barrels during the year, with physical exposure reaching 262 mn barrels.

#3- Dubai property market purchase prices grew by 17.4% in 2023,accelerating at the fastest pace compared to other major city property markets, Khaleej Times reports, citing real estate consultancy Savills Global Residential Director Jelena Cvjetkovic. Despite the market growth, Cvjetkovic projects that the rate of growth will slow down to 4-5.9% in 2024 while remaining the second fastest-growing market after Sydney, according to Cvjetkovic’s projection.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- The Central Bank has launched its latest round of executive certificates for risk-based supervision professionals, accredited by the Institute of Bankers, a part of the University college of Dublin, reports state news agency Wam. Inaugurated in 2021, the program coaches bank supervisors to spot and mitigate the impact of risks on financial systems, in a bid to improve monetary and financial stability in the UAE.

#2-Sharjah’s investment community will have a direct channel of communication with the Sharjah government’s investment arm, Sharjah Asset Management, after it launched a new customer service center, Sharjah24 reports. The center will offer services both in Arabic and in English.

#3- The Abu Dhabi Executive Council now has a board of trustees for the Family Care Authority, responsible for offering specialized and integrated services for families on a case-by-case basis, reports the Abu Dhabi Media Office. The council also expanded the authority’s responsibilities to encompass the Abu Dhabi Center for Sheltering and Humanitarian Care (Ewaa), including providing sheltering and rehabilitation services and counseling for human trafficking victims.

CIRCLE YOUR CALENDAR-

Investors and startups with sustainable solutions can now apply to Dubai Holding’s Innovate for Tomorrow challenge, which will provide the selected company with a rewards package and funding. Ideas can range from solutions for economic circularity, resource efficiency and supply chain sustainability to waste reduction and consumer education, according to the Dubai Media Office. The selected idea will get access to Tecom Group’s in5 business incubator, and will get the chance to implement the idea through a pilot program with Dubai Holding. Applications can be submitted here until 31 March.

The UAE Tour Women is happening from this Thursday until next Sunday starting in Dubai and ending in Abu Dhabi. The event will feature three sprint stages and a mountain climb up Jebel Hafeet, spanning 468 km from Dubai to Abu Dhabi.

The Sustainable Aviation Futures MENA will kick off next Monday, 12 February through to Wednesday, 14 February at Kempinski Central Avenue. The event will see 80 speakers and upwards of 200 attendees discuss regulation, financing, and investments in sustainable aviation fuels in MENA.

Dubai will host the World Government Summit from Monday, 12 February, to Wednesday, 14 February. The summit, focusing on the daily implications of AI, will include 15 AI-centered conferences, and an annual gathering for the Time 100 AI list. OpenAI CEO Sam Altman will be among the speakers headlining the event, Gulf News reports.

Dubai will also host the Future Warehouse & Logistics 2024 Conference from Monday, 12 February to Wednesday, 14 February. On the agenda: How to boost resilience and overcome challenges, with discussions on disruptions, sustainability, internet of things, automation, workplace management and other topics.

Breakbulk Middle East 2024 will take place from Monday, 12 February, to Tuesday,13 January, in Dubai. The event is being hosted by the Ministry of Energy and Infrastructure to address industry challenges and identify prospects for growth in the UAE, KSA, and East Africa.

The Investopia Summit will take place from Wednesday, 28 February, to Thursday, 29 February, in Abu Dhabi. The two-day event will run under the theme “Emerging Economic Frontiers: Investing in Fast-Growing Sectors in the New Economy,” gathering investors, government officials, and entrepreneurs to explore investments in strategic markets.

Abu Dhabi is set to host the World Congress of the World Federation of the Deaf in 2027, marking the first time the event will take place in the Middle East and North Africa (MENA), Wam reports. Some 125 countries and over 2k hard of hearing participants from across the world are expected to participate in the event. The event promotes the inclusion of deaf individuals in societies and aims to increase awareness about their rights.

The inaugural edition of DRIFTx will take place in Abu Dhabi in April. The event is supported by the Abu Dhabi Investment Office and Bayanat, according to the Abu Dhabi Media Office. The showcase will offer an international platform for smart and sustainable urban mobility, featuring Banayat’s autonomous taxis by TXAI.

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

Non-oil sector grew at a slightly softer pace in January

Non-oil business activity records tapered growth: While the non-oil private sector continued to expand, output growth slowed to a five-month low in January, according to S&P Global’s purchasing managers’ index (pdf). The index inched down to 56.6 from 57.4 in December, still remaining above the 50.0 threshold that separates growth from contraction.

“Slight moderation” from 4.5-year high: “Whilst the UAE non-oil economy largely continued where it left off at the end of 2023, the PMI's dip to 56.6 in January pointed to a slight moderation of growth from the sector’s best quarterly performance in four-and-a-half years,” Senior Economist at S&P Global Intelligence David Owen said.

Strong domestic demand underpinned growth:Business growth was fueled by improved sales and marketing efforts, ongoing and new projects, increased investments, and government initiatives, with strong domestic demand driving output, according to the report. Business also ramped up input purchases as firms continued to replenish their stocks to keep up with heightened demand, the report said.

On the downside, hiring is taking a hit: Firms recruited new staff at the slowest rate in more than a year in January, with Owen noting that “strong demand and business optimism failed to translate into greater hiring.”

And supply chain disruptions impacted delivery, backlogs and pricing: Moderate delivery delays, growing backlogs and increased shipping costs ensued as supply chain risks persisted on the back of ongoing Red Sea attacks, according to Owen. Purchasing remained strong due to growing demand, but higher shipping costs led to a quicker increase in purchase prices.

Should we be worried about inflation? Companies reported higher material costs and salary adjustments added to their bills, the survey shows. “The impact on inflationary pressures so far has been notable but not severe, as input costs rose at a faster rate than in December but remained slower than in the preceding three months,” S&P Global senior economist David Owen said. However, businesses did not increase product prices for the third consecutive month because of a “build-up of competition” and their targeting of new customers.

Business confidence remains high: Optimism for the non-oil sector’s growth over the next 12 months remains high despite the small dip from December, with firms anticipating robust demand and sales to drive output expansion, coupled with expectations for new projects and increased investment.

FROM THE REGION-

Saudi PMI dips: Saudi Arabia’s PMI (pdf) stood at 55.4 in January, down from 57.5 in the previous month. This is the weakest growth in non-oil activity since January 2022 with higher costs, interest rates, and supply chain risks to blame.
Egypt’s PMI contracts for 38th consecutive month: Non-oil business activity in Egypt stood at 48.1 in January, down from the 48.5 recorded in December, as inflationary pressures continued to weigh on demand, according to its PMI (pdf).

Al Mal Capital REIT initiates AED 440 mn capital increase through tradable rights issue

Al Mal Capital’s real estate investment trust (REIT) is planning to increase its capital by up to AED 440 mn through a tradable rights issue as it looks to grow and acquire new assets, according to an ADX disclosure (pdf). If fully subscribed, the rights issue would see the fund raise its total capital to just north of AED 790 mn from AED 350 mn today. Al Mal is a unit of Dubai Investments.

What’s Al Mal doing with the money? The firm intends to use the proceeds from the rights issue to execute its investment strategy (pdf), which involves diversifying the portfolio, with a minimum of 75% of the funds allocated in the UAE and up to 25% in the GCC and other countries. The fund’s primary focus is on income-generating real estate assets within sectors like education, healthcare, and industrials — whether through direct ownership, development, or investment in tradable securities.

The mechanics: Existing unit holders will receive tradable rights at a ratio of one right for every 0.87516 units they own on 23 February. Every full right allows the unit owners to ultimately buy a new unit at a price of AED 1.10. Rights will be tradeable on the Dubai Financial Market from 26 February to 15 March 2024, the disclosure said.

SOUND SMART- How rights work: Existing unit holders have the option of not exercising their rights (ie: doing nothing); they can exercise their rights (buy units in proportion to the rights they hold); or trade the rights (sell them to someone else through a DFM-listed broker — and buy more rights if they want more of the Al Mal REIT). Investors who own no units can buy the rights from current unit holders, and folks who do nothing or sell their rights would be diluted down if the rights issuance sees others subscribing.

Uh, Enterprise? What’s a REIT? A real estate investment trust is a mutual fund that owns, finances or manages income-generating real estate assets — commercial, residential, office, and other properties. Some will also invest in real-estate-related securities or private equity transactions that are directly related to the industry.

How do I make money on a REIT? Mechanics vary from REIT to REIT, but unit holders (the REIT version of shareholders) are entitled a share of profits (ie: dividends) and they can also see the value of their investment go up if the assets the REIT buys appreciate.

Why would I buy a REIT? If you like the underlying portfolio of real assets, it’s an easy way to get exposure to real estate at (a) a lower ticket price than buying the assets yourself and (b) a REIT is usually a heck of a lot more liquid. REIT units are much easier to buy or sell whenever you want than are the real estate assets themselves.

Background: Al Mal Capital’s REIT was the first to IPO on the Dubai Financial Market late 2020, raising AED 350 mn. It has since acquired Wesgreen International School from Al Batha Real Estate for AED 265 mn, as well as Al Shola Schools in 2021 for AED 300 mn. The acquisitions led to the full deployment of the fund’s capital, the company said in October last year.

Abu Dhabi is getting a renewable energy industrial complex, courtesy of UK-based Hycap Group

Abu Dhabi to boost green hydrogen supply chain: The Abu Dhabi Department of Economic Development (ADDED) and UK-based net zero asset management company Hycap Group will develop a green hydrogen-focused renewable energy industrial complex in Abu Dhabi, according to the Abu Dhabi Media Office. The department and Hycap will also enlist the work of local partners, the statement said, without clarifying the planned location, timeline, or investment value of the project.

What we know: Hycap Group will work with the Industrial Development Bureau (IDB), ADDED’s arm for developing and regulating the industrial sector, to produce, store, and transport green hydrogen with a newly constructed electrolysis plant, a hydrogen storage facility, and hydrogen tankers. It will also work to create a value chain for hydrogen by setting up clean hydrogen production, electrical charging manufacturing, fuel cell manufacturing, and bus and truck manufacturing facilities, the statement added.

Creating a value chain means starting with the domestic sector: The plan is to align supply and demand for hydrogen locally by attracting industrial companies to the industrial complex, before scaling up to export hydrogen abroad, the statement said.

Hycap aims to turn Abu Dhabi into a green hydrogen hub: The company set up its first international office in the Abu Dhabi Global Market back in November, and plans to launch a UAE-based GCC Fund to invest in companies with net zero strategies and green hydrogen supply chains, it said in a press release at the time.

The UAE has been making big moves in green hydrogen: The national hydrogen strategy, announced in June 2023, includes a hydrogen production goal of 1.4 mn tonnes by 2031, with renewables giant Masdar contributing 1 mn tonne, according to a press release. Masdar also inked an agreement last month with the world’s largest commercial vehicle manufacturer, Daimler Truck, to explore supplying liquid green hydrogen to power fuel cell rig trucks in Europe by 2030.

Admo Lifestyle Holding and Addmind to pool resources in new global lifestyle JV

Alpha Dhabi Holding and Monterock JV Addmind and Abu Dhabi-based Admo Lifestyle Holding are launching a new global lifestyle vertical, pending regulatory approval, according to a press release. The JV, Alpha-Mind, will own and manage a portfolio of lifestyle, entertainment, and F&B brands, including Clap, Ongaku, Babylon, Sucre, Alma Bar, Bar Du Port, and Iris.

The split: Admo will hold the majority 51% stake in the JV, while Addmind will hold the remaining balance, while taking responsibility for managing the operations of all Alpha-Mind brands.

The JV plans to drive the growth of the companies’ brands and geographic footprints, as well as acquire new brands from within and beyond the region, the statement said, without disclosing a specific plan or timeline for acquisitions.

About ADMO: Admo was launched in 2022 by the Abu Dhabi investment company Alpha Dhabi Holding and multinational private equity firm Monterock International. In October, the JV acquired luxury lifestyle group Ce La Vi and purchased a stake in the Lebanese fine dining brand Em Sherif. The company’s development pipeline includes projects in London, Cannes, Miami, and Abu Dhabi.

About Addmind: The lifestyle and entertainment group oversees over 22 brands in Europe, the Middle East, and Africa. Addmind has a strong presence in Dubai and Abu Dhabi, recently launching the first Anghami Lab in Dubai in August 2021, and plans to expand in Ibiza, London, Mykonos, Paros, Milan, and St Tropez.

UAE federal government launches implementation index for laws + new strategy to improve women’s health

The federal government is assessing the implementation and impact of previously passed laws with its new Laws Implementation Index, which Cabinet approved at its meeting yesterday, state news agency Wam reports. The index will evaluate the implementation of federal laws and regulations by federal authorities and their impact on investors, citizens and residents. By assessing the laws’ effectiveness, the indicator will help the government gauge whether these laws are in need of being reviewed or updated to “ensure [their] equal application,” Prime Minister and Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum said.

What’s under review? Cabinet is assessing all laws enacted at the federal level and by ministries between 2020 and 2022, Wam says, without specifying the exact number of laws and legislative decisions the ministers are reviewing with the new index.

Want to go through a historical archive of laws and decrees for the country? That’s now been made possible with the launch of a new online legislative database housing all federal legislation, decrees, and executive regulations adopted since the UAE was established in 1971, the prime minister said. By launching the public platform, the government aims to “promote government transparency, enhance participation and engagement of various segments of society,” Al Maktoum said.

Also getting cabinet sign-off yesterday:

A new national strategy for science, technology, and innovation, focusing on six sectors — energy transition, health, food and water security, technology, cybersecurity, and industrialization;
A new framework to boost women’s healthcare services in the country, with the goal of bringing down women’s mortality rates to 62.77 per 100k women and addressing widespread health issues including obesity.

IHC reports 2023 earnings, records 18% revenue growth

IHC posts flat bottom line growth: ADX-listed conglomerate International Holding Company’s (IHC) net income stood at AED 32.57 bn in FY 2023, inching up 0.5% y-o-y, according to the company’s preliminary financial statement (pdf).

The conglomerate saw its revenues rise 18% y-o-y to AED 60.1 bn in 2023 on the back of “strategic acquisitions in addition to the improvements in the current business financial performance in line with management strategic vision for the group,” it said. IHC’s total assets grew 15% y-o-y to AED 264 bn in 2023.

ICYMI- IHC is transferring some AED 100 bn of its assets to 2PointZero, a firm that will hold companies across segments including financial services, investment banking, technology and AI, mining and resource management, and digital and crypto ecosystem.

Dubai welcomes the Hamdan Bin Rashid Cancer Hospital

UAE X has its eyes on the Hamdan bin Rashid Cancer Hospital in Dubai with the hashtag حمدان بن راشد# making the rounds on the platform. Crown Prince Sheikh Hamdan bin Mohammed Al Maktoum attended a ceremony to kick off the hospital’s construction, which is expected to become Dubai’s first comprehensive cancer hospital when completed in 2026.

Mubadala invests in Indian healthcare network + Globalpharma to manufacture Saudi meds in the UAE

HEALTHCARE-

#1- Mubadala Investment Company is investing an undisclosed amount in Indianhealthcare network Manipal Health Enterprises, according to a press release. Novo Holdings and California Public Employees' Retirement System (CalPERS) have also acquired minority shares in the company from Singapore-based sovereign wealth fund Temasek, The Hindu Business Line reports.

The details are unclear: Temasek will retain its majority stake in Manipal. The size and value of the transaction were not disclosed, though Indian outlet Mint cites two people with knowledge of the transaction as saying that the fund sold an 8% stake to the buyers, without clarifying a breakdown.

#2- Globalpharma is producing more drugs in-house: Dubai Investments subsidiary Globalpharma will manufacture three of Saudi pharma firm Tabuk Pharma Manufacturing Company ’s cardiovascular meds and analgesics under an agreement with the company, according to a statement (pdf). The agreement was inked on the sidelines of the Arab Health 2024 Exhibition.

FINTECH-

#1- You can now send money through Botim: Astra Tech partnered with Al Etihad Payments (AEP), a Central Bank of the UAE subsidiary, to integrate AEP's Aani instant payment platform into the Botim app, according to a press release. The service offers 24 hour cardless transactions, with the first phase seeing wallet-to-wallet transfers using mobile numbers as identifiers, and future plans slated to introduce QR code-based payments, direct debits and e-cheques, the statement said.

#2- Saudi SME fintech Geidea partnered with Dubai-based software developer Fils to allow its merchants to estimate emissions of certain transactions and invest in carbon credit projects,according to a statement from Fils.

ICYMI: Fils also partnered with our friends at Mashreq and e&’s tech solutions arm e& Enterprise last month to integrate its carbon offsetting feature into their platforms.

BANKING-

Emirates NBD gets DFSA’s first ESG fee waiver: The Dubai Financial Services Authority has waived all regulatory fees for Emirates NBD for its planned listing of ESG bonds in the Dubai International Financial Centre (DIFC) in 2024, Dubai Financial Services Authority (DFSA) has waived all regulatory fees for Emirates NBD, according to a statement.

Background: Dubai’s financial regulator announced at COP28 that it will waive all regulatory fees for financial institutions that issue green and sustainability-related securities to “accelerate the growth of sustainable capital markets in the Centre.”

TECH-

#1- Microsoft will work with Dubai’s Department of Economy and Tourism (DET) on a trade platform to improve operational efficiency across the logistics sector, according to the Dubai Media Office. Microsoft will also offer its resources and expertise to local tech startups, entrepreneurs, and schools in Dubai.

#2- e& to expand data center in Abu Dhabi: e&’s internet provider, Carrier & Wholesale Services (C&WS) will expand its data centers in the UAE and set up the fifth Tier III SmartHub data center in Abu Dhabi to “accelerate digital adoption in the country [and offer] added value for customers with low latency and high-speed internet,” according to a press release.

SOUND SMART- A Tier III data center can undergo power and cooling maintenance while connected to the internet without downtime.

#3- Swiss cybersecurity firm Zendata inaugurated its regional headquarters in Abu Dhabi, Al Khaleej reports. The move aims to address the growing demand for advanced cybersecurity solutions in the region and comes as part of the Economy Ministry’s NextGenFDI initiative.

TRANSPORT-

#1- Dubai’s Road and Transport Authority (RTA) inked anagreement yesterday with Amazon cloud computing subsidiary Amazon Web Services (AWS), as part of its plan to move most of its services online, according to an RTA statement.

Background:The RTA revealed plans in December to up its digital service adoption to 95% by 2030. The authority pledged to invest some AED 1.6 bn into the transition.

LOGISTICS-

AD Ports to introduce electric freight vehicles at Khalifa Port:AD Ports is looking to introduce the first electric freight vehicle in the Emirates at Khalifa Port Autoterminal Station, AD ports said (watch, runtime: 0:45).

HOSPITALITY-

Al Marjan Island is getting three new upscale properties: Marjan partnered with Eastern Caribbean hospitality developer Range Developments to introduce three luxury properties on Al Marjan Island in Ras Al Khaimah, marking its debut in the UAE market, according to a press release.

INVESTMENT-

Korean recycling firm sets up shop in Sharjah: South Korean platinum recycling firm Heesung PMTech launched yesterday the first phase of its 603 sqm platinum refinery, built with an initial investment of AED 4 mn, in the Sharjah Airport International Freezone (SAIF zone), Wam reports.

AVIATION-

Emirates to send engineers to oversee Boeing production: Warning that the US plane manufacturer is in the “last chance saloon,” Emirates President Tim Clark told the Financial Times that the Dubai-based flag carrier will send its own engineers to inspect the production line of the Boeing 777 jet and its supplier Spirit AeroSystems after seeing a “progressive decline” in the manufacturer’s standards.

Emirates’ move comes after a series of mishaps, including a piece of fuselage from a Boeing 737 Max 9 blowing out during an Alaska Airlines flight in January. Following the incident, United Airlines said it found loose bolts and other issues on its grounded 737 Max planes after safety checks.

TELECOM-

e& to connect the Emirates to the world’s longest telecoms cable: e&’s internet provider, Carrier & Wholesale Services (C&WS), is planning to anchor the world’s longest undersea telecoms cable, the 2Africa subsea internet cable, in Kaliba, Fujairah, according to a press release. The cable will be connected to Fujairah’s cable landing station.

STARTUPS-

Digital Hotelier lands USD 1 mn in seed round: Dubai-based hotel software startupDigital Hotelier raised USD 1 mn in a seed round led by Silicon Valley-based VC firm Plug and Play, Bahrain-based Hope Funds, and a group of angel investors, Wamda reports. The startup landed USD 200k from the Bahraini investment firm as part of the round via participating in the third season of the entrepreneurship-themed reality television show Beban. The funds will be used to expand the firm’s product offerings.

OECD sees the global economy growing at a 2.9% clip this year

A more optimistic global growth outlook: OECD has revised upwards its 2024 world growth forecast to 2.9% from November’s 2.7% forecast, it said in its latest economic outlook. Geopolitical risks within the MENA region, however, pose a “significant” risk to activity and inflation.

Don’t celebrate yet: Despite raising its growth outlook, OECD’s 2024 forecast remains below 2023’s 3.1% growth rate. Next year’s 3.0% growth forecast was left unchanged.

Where we could see fallout: Regional escalation “could disrupt shipping more extensively than presently expected, intensify supply bottlenecks, and push up energy prices if traffic is interrupted in the key routes for the transport of oil and gas,” the report wrote, adding that this could spur a rush to safety in global markets.

ICYMI- The IMF revised upwards its 2024 global growth outlook by 0.2 percentage points to 3.1% last week, also noting the potential for price spikes amid Red Sea attacks.

ADX	9,427	-0.3% (YTD: -1.6%)
DFM	4,230	+0.1% (YTD: +4.2%)
Nasdaq Dubai UAE20	3,767	-0.5% (YTD: -2.0%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.1% o/n	5.0% 1 yr
TASI	12,024	+0.5% (YTD: +0.5%)
EGX30	27,665	+0.3% (YTD: +11.1%)
S&P 500	4,940	-0.4% (YTD: +4.0%)
FTSE 100	7,612	0% (YTD: -1.6%)
Euro Stoxx 50	4,655	0% (YTD: +3.0%)
Brent crude	USD 77.99	+0.9%
Natural gas (Nymex)	USD 2.08	+0.1%
Gold	USD 2,043	-0.5%
BTC	USD 42,445	-1.0% (YTD: +0.2%)

THE CLOSING BELL-

The DFM rose 0.1% yesterday on turnover of AED 333.5 mn. The index is up 4.2% YTD.

In the green: Watania International Holding (+4.3%), National Central Cooling Tabreed (+2.8%) and Tecom Group (+2.2%).

In the red: Al Firdous Holdings (-10.0%), Takaful Emarat (-9.8%) and Islamic Arab Ins. Company (-3.2%).

Over on the ADX, the index fell 0.3%, on turnover of AED 1.1 bn meanwhile Nasdaq Dubai, closed down 0.5%.

Asian markets are in the red, tracking declines yesterday in New York. Futures point to a mixed open for major benchmarks in Europe, New York, and Toronto later today.

CORPORATE ACTIONS-

Sports management firm Palms Sports has approved a dividend payout of AED 100 mn in 2024, the company said in an ADX disclosure (pdf) yesterday.

President Al Nahyan and King of Jordan talk economic cooperation, war in Gaza

Economic cooperation and supporting Gaza are the two big themes of diplomacy in the UAE this morning:

President Sheikh Mohamed bin Zayed Al Nahyan discussed economic cooperation, particularly on renewables, investment, and food security with Jordan’s King Abdullah II, reports Wam. The two heads of state also reiterated the urgent need for a ceasefire in Gaza to prevent the spread of a wider war in the region, Wam said.

Sheikh Mohamed also talked cooperation with Russian President Vladimir Putinyesterday, Wam reports. Putin separately thanked the president for the UAE’s role in brokering the latest prisoner swap between Russia and Ukraine.

Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan discussed UNRWA’s role in delivering humanitarian aid to the Gaza Strip with UNRWA Commissioner-General Philippe Lazzarini yesterday. The UAE recently allocated USD 5 mn to support UNRWA’s humanitarian efforts in Gaza after various countries suspended their funding for the UN agency.

Lord Ahmad also discussed Gaza with FM, Al Hashimy: UK Minister of State for the Middle East Lord Ahmad met with Foreign Minister Abdullah bin Zayed Al Nahyan and Minister of State for International Cooperation Reem Al Hashimy yesterday to discuss “ending the Gaza war” and “building sustainable peace through delivering the two state solution,” the minister said on X.

The UAE has completed the second phase of its desalination plant in Gaza, which comes as part of the Gallant Knight 3 humanitarian operation to supply 600k gallons of clean water to displaced Gazans and the residents of Rafah, Sky News Arabia reports (watch, runtime: 2:25).

CALENDAR

FEBRUARY

1-15 February (Thursday-Thursday): InClassica Dubai International Music Festival 2024, Dubai Opera.

2-29 February (Friday-Thursday): Ras Al Khaimah Art 2024 Festival, Al Jazeera Al Hamra.

3-11 February (Saturday-Sunday): Mubadala Abu Dhabi Open, Zayed Sports City’s International Tennis Centre.

5-7 February (Monday-Wednesday): Middle East Bunkering Convention, Dubai, UAE.

5-8 February (Monday-Thursday): Medlab Middle East, Dubai.

6-7 February (Tuesday-Wednesday): The Middle East ProcureTech Summit, Dubai, UAE.

6-8 February (Tuesday-Thursday): AEEDC Dubai 2024, Dubai World Trade Centre.

7-8 February (Wednesday-Thursday): Sharjah Investment Forum, Al Jawaher Reception and Convention Centre.

8-9 February (Thursday-Friday): International Crop-Science Conference & Exhibition 2024, JW Marriott, Marquis Dubai.

8-11 February (Thursday- Sunday): The UAE Tour Women.

9 February (Friday): Abu Dhabi International Airport to be renamed to Zayed International Airport.

9-11 February (Friday-Sunday): HERO Abu Dhabi, Al Hudayriat Island.

12-13 February (Monday-Tuesday): Breakbulk Middle East conference, Dubai Trade Centre.

12-14 February (Monday-Wednesday): World Government Summit, Dubai.

12-14 February (Monday-Wednesday): Sustainable Aviation Futures MENA Congress, Hotel Dubai Mall.

12-15 February (Monday-Thursday): Future Warehouse & Logistics, Dubai, UAE.

15-25 February (Thursday-Sunday): FIFA Beach Soccer World Cup 2024, Dubai.

18 February (Sunday): Abu Dhabi Run and Ride, Abu Dhabi Corniche.

19-23 February (Monday-Friday): Gulfood 2024, Dubai World Trade Centre.

20-21 February (Tuesday- Wednesday): International Dialogue of Civilizations and Tolerance Conference, Abu Dhabi National Exhibition Centre.

22-24 February (Thursday-Saturday): International Freight Forwarders Conference 2024 Dubai, Hyatt Hotel.

23-25 February (Friday-Sunday): Taste of Dubai Festival, Skydive Dubai.

23 February - 3 March (Friday-Sunday): Maritime Heritage Festival Abu Dhabi.

24 February (Saturday): Ras Al Khaimah Half Marathon, Al Marjan Island.

25 February - 2 March (Sunday-Saturday): Abu Dhabi Desert Challenge 2024, Al Dhafra Region.

26-28 February (Monday-Wednesday): Management and Sustainability of Water Resources, Marriott Hotel Al Jaddaf.

27-28 February (Tuesday-Wednesday): Dubai Association Centre Conference, Dubai World Trade Centre.

26-29 February (Monday-Thursday): World Trade Organization Ministerial Conference, Abu Dhabi, UAE.

28-29 February (Wednesday-Thursday): Ras Al Khaimah Investment and Trade Summit, Rak Exhibition Centre.

28-29 February (Wednesday-Thursday): UAE delegation attends ‘Invest in Austria’ conference, Vienna.

28-29 February (Wednesday-Thursday): Third Investopia Summit, Abu Dhabi.

28 February - 1 March (Wednesday-Friday): MENA Transport Congress and Exhibition 2024, Dubai.

29 February-3 March (Thursday-Sunday): Gov Games, Dubai Festival City, Dubai.

MARCH

1-3 March (Friday-Sunday): Art Dubai, Madinat Jumeirah.

5-6 March (Tuesday-Wednesday): MRO Middle East, Dubai Trade Centre.

5-7 March (Tuesday-Thursday): World Police Summit, Dubai World Trade Centre.

5-7 March (Tuesday-Thursday): Dubai Entertainment Amusement & Leisure Exhibition, Dubai World Trade Center.

5-8 March (Tuesday-Friday): Forbes’ Third Annual 30/50 Summit In Abu Dhabi During International Women’s Day

8-9 March (Friday-Saturday): World Triathlon Championship Series 2024 Opening Race, Yas Marina Circuit on Yas Island.

11/12 March (Monday/Tuesday): Start of Ramadan.

APRIL

TBC April: DRIFTx, Abu Dhabi.

9/10 April (Tuesday/Wednesday): End of Ramadan, public holiday.

8-12 April (Monday-Friday): Eid Al Fitr, public holiday.

16-18 April (Tuesday-Thursday): World Future Energy Summit, Abu Dhabi National Exhibition Centre.

16-18 April (Tuesday-Thursday): Middle East Coatings Show, Dubai World Trade Centre.

16-18 April (Tuesday-Thursday): Middle East Energy, Dubai World Trade Centre.

23-25 April (Tuesday-Thursday): Connecting Green Hydrogen MENA, Madinat Jumeirah Conference Centre.

24-26 April (Wednesday-Friday): Global Education & Training Exhibition.

MAY

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

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

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

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

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.

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.

DECEMBER

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

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

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