Parkin debuts on the DFM

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Parkin debuts on the DFM today

Good morning, lovely people, and happy almost-FRIDAY. It’s been a busy week of news, so we’re looking forward to the weekend.

THE BIG STORIES here at home: A toss-up between news of Mubadala potentially tapping Islamic debt markets this month, the Central Bank of the UAE holding interest rates steady following the US Federal Reserve’s decision, and a longer feature on S&P Global’s outlook for UAE corporates in 2024.

PUBLIC SERVICE ANNOUNCEMENT-

Grab your umbrellas — it’s going to be a rainy weekend: Chance of rain could hit earlier than expected, with Friday expected tosee cloudy skies and light to moderate rainfall, and Saturday potentially seeing heavy downpours — paired with lightning, thunder, and strong winds, especially in areas at sea, according to the National Center of Meteorology. Conditions are expected to ease by Tuesday evening.

HAPPENING TODAY-

#1- Parkin’s shares will begin trading on the Dubai Financial Market today under the ticker PARKIN, following a blockbuster IPO that saw it raise AED 1.57 bn. The IPO was 165x oversubscribed, and values the company at AED 6.3 bn.

Refresher: The Dubai Investment Fund is selling a 25% stake (or 749.7 mn shares) in the company on the DFM. Dubai’s Road and Transport Authority (RTA) established Parkin in January, just a few months after saying it would go public with its taxi and parking assets in 2023. The company designs and manages public and private parking spaces in the emirate, and issues parking permits.

ADVISORS- Rothschild & Co’s Middle East division is the independent financial advisor, while Emirates NBD, Goldman Sachs, and HSBC Holdings are joint global coordinators, and Abu Dhabi Commercial Bank, our friends at EFG Hermes UAE, and First Abu Dhabi Bank are joint bookrunners. Emirates NBD is the lead receiving bank of the IPO, with the Commercial Bank of Dubai, FAB, Abu Dhabi Islamic Bank, AlMaryah Community Bank, Emirates Islamic Bank, Wio Bank, and our friends at Mashreq, also acting as receiving banks.

#2-An official from Lebanese group Hezbollah arrived in the UAE in what Reutersdescribes as a “landmark visit” to negotiate the release of detained Lebanese citizens, according to sources close to the group. Pundits speaking to the newswire suggest that the visit from Wafiq Safa, the head of Hezbollah’s Liaison and Coordination Unit, might represent a shift in the relations between the UAE and Hezbollah, which is currently designated as a terrorist group in the country.

WATCH THIS SPACE-

#1- Adnoc to run up against third competitor over Braskem stake: A third company is reportedly throwing its hat in the ring for a majority stake in Brazil’s petrochemical company Braskem, for which Abu Dhabi National Oil Company (Adnoc) is also bidding, Braskem CFO Pedro Freitas said on an analyst call, Bloomberg reports. Adnoc and Braskem’s second-biggest shareholder Petrobras has been conducting due diligence for the majority stake after US private equity giant Apollo Global Management exited the talks.

Who’s the mystery company? Although Braskem did not disclose who the third bidder is, Brazilian newspaper Valor suggests it is Kuwait Petroleum Corporation’s subsidiary, Petrochemical Industries Corporation.

ICYMI- Adnoc made a non-binding offer to Braskem in November to acquire Brazilian conglomerate Novoner’s 38.3% stake in Braskem. Braskem had also received a joint USD 7.6 bn offer from Adnoc and Apollo for the stake in May.

#2- Tabreed plans to raise USD 1 bn to expand operations: The UAE’s district coolingcompany Tabreed received shareholder approval for a USD 1 bn bond and/or sukuk issuance aimed at funding acquisitions and general corporate purposes sometime over the next year, according to a DFM disclosure (pdf).

What we know: The company’s board of directors is yet to decide whether to issue the bonds or sukuk in one or more tranches, the statement said. The bonds — which will either be issued by Tabreed directly or through one of its special purpose vehicles — will be offered at a margin not exceeding the prevailing market rate for companies with similar credit ratings, the statement noted.

Background: Tabreed is planning to increase its market share in the UAE and five other countries it is currently operating in, namely India, Saudi Arabia, Oman, Bahrain and Egypt, Tabreed said in a separate DFM disclosure (pdf) published yesterday.

#2- Fifty hedge funds to join DIFC: The Dubai International Financial Centre (DIFC) is in talks with 50 hedge funds to establish their offices in the financial center, DIFC governor Essa Kazim told AlKhaleej. Another 50 hedge funds from the US, Europe, and the GCC are already registered in the DIFC.

REFRESHER- Dubai Financial Services Authority (DFSA) saw a 125% y-o-y uptick in registrations by hedge fund managers in 2023 and expects continued strong interest from global hedge funds looking to set up shop in DIFC, DFSA CEO Ian Johnston said in February.

#3- Emirates Global Aluminum (EGA) is on track to wrap up construction on its pilot plant to tackle aluminum refining waste this year, it said in a statement. Once live, the plant will convert bauxite residue, a byproduct of aluminum refinement, into up to 6 tonnes of manufactured soil — expected to have up to ten times better carbon dioxide absorption than natural soil — daily in Al Taweelah in Abu Dhabi.

Refresher: The aluminum producer started construction on the plant back in November 2023, aiming to use the facility to test large-scale trials for plant growth with the manufactured soil it calls Turba, and overcome the UAE’s soil scarcity.

More applications: EGA has deployed its bauxite residue research team to explore other applications of Turba in the steel, cement, and construction industries. Some 150 mn tonnes of the material are produced globally each year, with less than 2% put to productive use, it said in its statement, citing industry experts.

DATA POINTS-

#1- Dubai is on track to hand over some 34k real estate units this year, while its neighboring emirate Abu Dhabi is slated to trade some 8k units, Khaleej Times reports, citing industry experts. The continued growth in the UAE’s property market amid global challenges, such as a high interest rate environment, will come on the back of a robust economy, government initiatives, and increasing investor confidence, experts suggest.

How this compares to other forecasts: S&P Global Ratings said back in December that it expects developers to sell up to 40k Dubai homes this year, compared to historical figures of 15-30k homes sold. The ratings agency has since updated its forecasts to suggest the emirate’s property market will cool down, pushing price declines to within the 5-10% range on the back of an oversupply risk.

ICYMI: We recently ran a deep-dive into the reasons behind the property price boom in 2023, and a breakdown of different analysts’ and pundits’ outlook for the market this year.

#2- Some 70.8% of companies operating in the Abu Dhabi Global Market (ADGM) are planning to up their workforce, with 29.9% eyeing significant increases and 40.9% anticipating moderate growth in staffing, ADGM said in a statement. The international financial center’s asset management sector is expected to draw in the most growth, with 18.6% of companies spotlighting its potential, followed by fintech (17.1%) and digital assets, blockchain, and distributed ledger technology (16.8%).

#3- The national industrial sector’s contribution to GDP has increased by some 49% since 2020, when the Industry and Advanced Technology Ministry was established, Minister Sultan bin Ahmed Al Jaber told Wam. The sector accounts for AED 197 bn of the national economy today, compared to AED 132 bn before 2020. Al Jaber attributes the growth to “strategic initiatives and programs” from the ministry, including a national in-country value program redirecting AED 237 bn spent outside the UAE into the national economy and national procurement strategies employing some 16k Emiratis across certified companies.

Industrial exports have climbed 60% during the period,hitting an estimated AED 187 bn in 2023. The ministry spent AED 1.5 bn on measures to support growth in high-tech industries in 2023, helping to drive high-tech exports to AED 3.5 bn in 2023 from AED 2.9 bn in 2020. The authority also provided AED 5.3 bn in financing for the industrial sector last year.

#4- The number of industrial licenses issued in Abu Dhabi — excluding freezones — rose 51% y-o-y in 2023 to reach 363, Wam reports, citing Abu Dhabi Chamber figures. In 2023, the emirate's industrial sector saw an increase in foreign investors, reaching a total of 46 companies. Mining support services accounted for the largest share of foreign investment with 13 companies, followed by chemicals with five companies, and basic metals with four companies.

#5- The UAE ranked 22nd in the 2024 World Happiness Report — measuring life evaluations from 2021 to 2023 — with a score of 6.733. The country was positioned second in the list of Arab countries, coming after Kuwait, which landed in 13th place with a score of 6.951.

THE BIG STORY ABROAD-

The US Federal Reserve’s guidance that it’s on track to deliver as many as three rate cuts this year is the big story in the global business press. We have the rundown in this morning’s news well, below.

Also worth knowing about:

Reddit has priced its IPO at the top of the range on which it had guided (more on that in Planet Finance, below). Shares start trading this afternoon in New York. (Financial Times)
PE giant Apollo Global is offering USD 11 bn for Paramount Global’s film and TV studio, the owner of broadcast outlet CBS and producer of the Top Gun franchise. (Wall Street Journal)

And Tim Cook isn’t having a great morning: The Apple CEO is dealing with a report that the US government could sue the company as soon as today for alleged antitrust violations. Meanwhile, rivals Meta, Microsoft, X, and Match have joined Epic Games in claiming that Apple isn’t playing ball with a court ruling on in-app payments.

FINALLY- Of Black Nazis and other AI faux pas: Semafor writes that Adobe AI model Firefly is as bad as Google’s Gemini was a couple of weeks back.

The misstep: “I asked Firefly to create images using similar prompts that got Gemini in trouble. It created Black soldiers fighting for Nazi Germany in World War II. In scenes depicting the Founding Fathers [of the United States] and the [US] constitutional convention in 1787, Black men and women were inserted into roles. When I asked it to create a comic book character of an old white man, it drew one, but also gave me three others of a Black man, a Black woman and a white woman. And yes, it even drew me a picture of Black Vikings, just like Gemini.” Read more.

CIRCLE YOUR CALENDAR-

Abu Dhabi Global Healthcare Week is set to take place between 13 and 15 May at the Abu Dhabi National Exhibitions Company Centre (Adnec), hosted by the Abu Dhabi Department of Health. The three-day event will see industry figures showcase the latest developments in the healthcare sector.

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

S&P Global Ratings’ GCC corporate outlook for 2024

What’s in the cards for GCC corporates + economies this year? Companies in the GCC region — particularly those in the oil sector — are set to turn in growth this year, with strong capex deployment despite a high interest rate environment, S&P Global said during its GCC Corporate Outlook 2024 webinar yesterday. The ratings agency also touched on the impact of Red Sea disruptions on oil and gas players in the region, as well as Dubai’s real estate ratings.

GCC corporates are expected to “remain resilient despite soft economic growth,” with stable or slightly improved credit metrics and 5-10% annual EBITDA growth, S&P Global Ratings’ Director of Corporate Ratings Rawan Oueidat said during the webinar. Companies will turn in positive performance despite a challenging operating environment, including high interest rates, Oueidat said. Despite the high interest rate environment, companies are expected to continue making “sizeable” investments over the next two years, with capex investments ranging between USD 45-50 bn, Oueidat said.

Corporate performance will be buoyed by GCC economies turning in higher oil-related GDP growth on the back of OPEC+ cuts, Oueidat noted. Economies in the region are expected to grow 2-3% on average “benefiting from these oil prices.” The expectation of relatively high oil prices in the near term will help support cashflows for national oil companies in the region, “as well as companies along their value chain,” Oueidat said.

Where to watch for growth: In terms of the oil sector, S&P expects to see growth in chemicals and oil and gas, including oil field services, with improved utilization and fleet expansion contributing to better cashflow, Oueidat said. Going into 2024, demand may stay subdued initially, at least for the first half of the year with oversupply easing compared to 2023. S&P Global Ratings-rated chemical producers in the GCC are well-positioned due to cost advantages and strong balance sheets.

Where to watch for downside risk: Geopolitical risks, investment delays, and slower economic growth are key concerns.

Non-oil economic growth in the UAE and Saudi Arabia is expected to hit 5%, compared to overall average GDP growth across the region of 2-3%. Non-oil GDP growth will be underpinned by tourism, demographics, hospitality, retail, and airlines, S&P Global Ratings Associate Director of Corporate Ratings Tatjana Lescova said. These sectors are, however, exposed to external risks such as geopolitical tensions.

Where to watch for growth: Consumer products and healthcare are also expected to post strong growth due to sustained consumer spending and mandatory ins., while telecom will see organic growth as well as through M&A, Lescova said. Education will grow in tandem with growing populations, especially in Dubai. Engineering and construction remain solid due to mega projects.

Credit growth in the UAE is expected to slow slightly from last year’s 7% due to high borrowing costs and a slowdown in the non-oil sector, Managing Director and Sector Lead for Financial Institutions in EMEA and Global Head of Islamic Finance Mohamed Damak said. However, retail borrowing will remain strong since “banks will want to continue to expand this profitable sector,” he noted. Banks in the UAE maintain high liquidity, with a fifth of the balance sheet in pure liquidity — cash and money market instruments — supported by strong customer deposits and limited reliance on external funding.

Red Sea disruption impact: The current disruptions in the Red Sea are viewed as manageable for rated oil and gas issuers for the time being given that the majority of hydrocarbon exports from the GCC are directed towards Asia, according to Oueidat. A complete or partial closure or disruption of the Strait of Hormuz is seen as posing a significantly greater risk.

Dubai real estate market: Ratings in Dubai's real estate sector have rebounded to pre-covid levels, with some developers surpassing those levels, Lescova said. The improved performance comes on the back of strong international demand, a supportive macro environment, and favorable oil prices, as well as Dubai government initiatives to drive population growth (including wider visa issuances), innovation support, and improved regulations. However, risks of a cyclical slowdown have increased due to a surge in new project launches since 2021 that have pushed prices past their peak in 2014, potentially leading to a gradual slowdown in price increases and a mild price correction in the future for which developers are well-positioned.

CBUAE holds rates steady following Fed decision. PLUS: Fed signals three rate cuts this year

The Central Bank of the UAE followed in the US Federal Reserve’s footsteps to keep interest rates steady yesterday, maintaining its overnight deposit rate at 5.40% and the overnight lending rate at 5.90%, it said in a statement late yesterday.

REMEMBER- The UAE’s overnight deposit rate, or the base rate on overnight deposit facilities, is anchored to the US Federal Reserve’s interest rates as the AED is pegged to the USD.

Not a surprise: The Fed’s decision to keep rates unchanged at 5.25-5.5% is in line with expectations, following what it cited as solid expansion of economic activity, elevated but easing inflation, strong job gains, and low unemployment, it said in a press release.

Sit tight for three rate cuts this year: Policymakers signaled that the central bank is still on track for rate cuts this year, with a three-quarters of a percentage point cut expected before the end of 2024.

But less rate cuts next year: Officials have dialed down expectations for rate cuts next year from four down to three, in what one analyst described as a “bullish-dovish” approach from the Fed.

Bullish on growth: The Fed raised its forecast for US economic growth this year, saying that it expects GDP to expand by 2.1% this year, compared to previous forecasts of 1.4%. “The economy is performing well,” Fed chair Jerome Powell said during a presser (watch, runtime: 1:11:22) after the Fed wrapped up its two-day meeting. That said, he added that there will be challenges before the economy moves into a soft landing, with core inflation projections currently sat at 2.6% in 2024, above the Fed’s 2% target.

Market reax: The Fed’s meeting sent investors to market, leading to a spike in the S&P 500, which closed at a record 5,225 on Wednesday. Tech-heavy Nasdaq 100 rose 1.2% while gold rose 1.6% to as much as USD 2,200 per ounce for the first time. Two-year Treasury yields fell 0.09 percentage points to 4.60%.

Mubadala considers USD 1 bn debut Islamic bond sale

It’s a big news day for Abu Dhabi sovereign wealth fund Mubadala, which is reported to be planning to tap Islamic debt markets after making another investment in an international fund.

#1- Mubadala mulls maiden sukuk issuance: Abu Dhabi sovereign wealth fund Mubadala is reportedly planning to raise USD 1 bn in its first USD-denominated sukuk issuance as soon as this month, Bloomberg reports, citing people familiar with the matter.

Mubadala is looking to ride the sukuk wave: The wealth fund is looking to issue the sukuk to “take advantage of increased investor demand” for the Islamic debt sale, following the steps of Saudi sovereign wealth fund Public Investment Fund (PIF), which raised USD 2 bn in a sukuk offering last month. PIF also raised USD 3.5 bn last October in a sukuk offering that was more than 7x oversubscribed.

Demand for Islamic debt has increased on the back of high oil prices that improved Islamic banks and asset managers’ liquidity positions, the primary buyers of Shariah-compliant bonds.

ADVISORS- Mubadala has reportedly appointed our friends at HSBC alongside Abu Dhabi Commercial Bank (ADCB) and First Abu Dhabi Bank (FAB) as global coordinators for the Shariah-compliant debt offering.

#2- US global management firm Apollo Management Global has launched a new private credit fund with seed investments from Mubadala and “other institutional investors,” Bloomberg reports. Mubadala and an Apollo affiliate have pooled over USD 290 mn into the new fund — Middle Market Apollo Institutional Private Lending — which has north of USD 790 mn in total assets. The fund has locked down a total of USD 450 mn in seed commitments as of 15 March.

More on Middle Market Apollo: The fund, structured as a business development company, plans to invest up to 70-80% in loans to US middle market companies with EBITDA below USD 75 mn.

Structure and governance: The fund's provision mandates a doubling of investment commitments to USD 900 mn within five years, or cash will be returned to investors. It imposes a 1% management fee and a 12.5% incentive fee after a 6% hurdle rate is met. The new fund will waive fees for the first year and halve them in the following year for Mubadala and other investors.

Mubadala also appointed head of credit investments Fabrizio Bocciardi (LinkedIn) to the fund’s board, while Howard Widra (LinkedIn) serves as chair and holds key roles within Apollo.

Apollo and Mubadala go way back: This fund builds on a 2020 partnership between Apollo and Mubadala. The two entities have jointly pursued various ventures, including a USD 2.5 bn private credit platform introduced last year, according to Bloomberg.

Islamic banks’ loans crossed the AED 700 bn milestone last year

2023 was a good year for Shariah-compliant banks: The value of Shariah-compliant banks’ loan books crossed the AED 700 bn threshold for the first time in 2023, climbing 11.5% y-o-y to AED 703.1 bn, according to recent data (pdf) from the Central Bank of the UAE. The banks’ gross credit — the amount of funds available to lend during the year — rose 7.8% y-o-y to AED 428.9 bn during the period, while deposits increased 12.6% y-o-y to AED 495.5 bn, according to separate figures (pdf).

Islamic banks’ total investments rose 27.1% y-o-y to AED 132.7 bn in 2023, split mostly into bonds held to maturity (AED 100.4 bn), debt-based financial instruments, AED 2.6 bn in shares, and AED 11 bn in other investments.

Shariah-compliant banks accounted for a 17.3% share of total bank assets during the year, up from 17.2% in December 2022.

Background: The UAE’s Shariah-compliant debt market had a growth spurt in 2023, with Sukuk issuances in all currencies accelerating by 115% y-o-y, and accounting for 8.7% of all debt issuances.

More growth expected this year: Fitch Ratings expects the debt capital market to expand some 11% y-o-y to USD 300 bn (AED 1.1 tn) in 2024-2025, on the back of an anticipated “diversification of funding and capital market developments,” including an increase in the share of sukuk and AED-denominated issuances in the UAE’s debt mix.

Dubai’s DAE secures USD 420 mn in funding from China Construction Bank

Dubai-based airplane lessor and aviation services provider Dubai AerospaceEnterprise (DAE) will receive USD 420 mn in fresh funding from China Construction Bank (CCB) to strengthen its liquidity position, the company said in a statement. The five-year credit facility will be used to “support the future financing needs of the business,” the statement reads.

Not the first time CCB lends DAE a hand: CCB provided DAE with a four-year USD 300 mn unsecured loan in 2020 to support the airplane lessor’s financing needs.

The state-owned firm had raised the biggest loan in its history last year, clinching USD 1.6 bn in funding from 26 lenders, DAE said in September.

IN OTHER DEBT NEWS-

#1- Sharjah Islamic Bank lends Turkey USD 100 mn Murabaha financing: The Turkey Wealth Fund secured USD 100 mn in Murabaha financing from Sharjah Islamic Bank, in what Reuters says is the world’s first Murabaha financing for a sovereign wealth fund, citing a statement from issuance advisor Turkish bank Dogan Investment Bank.

The issuance — which carries a maturity date of three years — is also the fund’s first international Islamic financing agreement, and comes in a bid to diversify its sources of financing.

SOUND SMART- Murabaha financing is a sales contract-like structure that allows clients to purchase goods at a pre-agreed margin.

#2- Fitch affirms three Emirati banks’ credit ratings: Fitch has affirmed the Commercial Bank of Dubai’s long-term issuer default rating (IDR) at A- with a stable outlook, and its viability rating (VR) at bb+, the rating agency said in a statement. Fitch has also maintained its BBB+ IDR for Sharjah Islamic Bank with a stable outlook and affirmed the National Bank of Ras Al-Khaimah’s IDR at BBB+ with a stable outlook while upgrading its VR to bb+ from bb, the agency said.

The rationale: The agency affirmed its ratings on the back of the Emirati banking sector’s “solid” operating conditions over the past year, projecting these conditions to “remain strong in 2024.” Fitch also expects lending to decelerate this year to 5% from the 6.2% posted over the first nine months of FY 2023, dampened by lower demand and high interest rates.

Shorooq Partners leads USD 11 mn funding round for Hong Kong blockchain platform Mantra

Venture capital firm Shorooq Partners led a USD 11 mn funding round for Hong Kong-based blockchain platform Mantra, a press release reads. The investment round also saw participation from Three Point Capital, Forte Securities, Virtuzone, Hex Trust, and others.

Where will the money go? The capital will be allocated towards developing regulatory-compliant infrastructure, providing developers with real world asset-focused protocol tools on Mantra’s platform, and expanding real-world asset tokenization efforts, particularly focusing on markets in the MENA region and Asia.

SOUND SMART- In the context of blockchain, “real world assets” refer to digital tokens that represent traditional, non-digital assets such as currencies, commodities, equities, or bonds.

Kuwait’s Al Mazaya, First Dubai complete merger

DFM-listed Kuwaiti firm Al Mazaya Holding has completed its merger with its partially-owned real estate subsidiary First Dubai, according to a DFM disclosure (pdf). Al Mazaya issued and allocated 40.8 mn new shares – priced at 100 fils per share – to shareholders in First Dubai as part of the merger.

Background: The Kuwaiti firm received regulatory approval from Kuwait’s Capital Market Authority to formally merge with First Dubai at the start of March. The authority had already approved the merger in 2023. Mazaya Holding has been seeking to fully acquire First Dubai since 2009.

Good news for Al Mazaya: The merger will result in an 8% increase in capital for Al Mazaya to KD 52.6 mn, distributed over some 525.6 mn shares.

About First Dubai: The real estate firm was established for the purpose of developing real estate in Kuwait and the UAE, according to its website.

Parkin posts 24.9% rise in 2023 net income ahead of first day of trading on the DFM

Car parking space manager Parkin posted a bottom line of AED 394.1 mn in 2023, up 24.9% y-o-y, according to the company’s first ever financial statements (pdf). The company’s revenues increased 13.6% y-o-y during the period to AED 779.4 mn.

ICYMI: The Dubai Investment Fund-owned company went live on the Dubai bourse today as the first offering of the year in the country, offering a 25% stake in the company. Parkin’s IPO was 165x oversubscribed during its book building process, raising some AED 1.57 bn.

Background: Dubai’s Road and Transport Authority's parking business recently spun off as Parkin in January, just a few months after saying it would go public with its taxi and parking assets in 2023. Parkin’s IPO is the sixth company to list on the Dubai bourse as part of the government’s privatization plan to list 10 state-owned companies back in 2021.

Monroe Capital appoints new managing director for regional expansion

Chicago-based asset management firm Monroe Capital has appointed Waleed Noor (LinkedIn) as its new managing director and head of Middle East distribution, Bloomberg writes. The new appointment comes alongside Monroe Capital’s plans to establish an office in Abu Dhabi in a bid for regional expansion. Noor has prior management experience working at Commerzbank and Crédit Agricole, according to his Linkedin.

Abu Dhabi-based investment management company Waha Capital has appointed James Finucane (LinkedIn) as its chief financial officer, according to an ADX filing (pdf). Finucane has prior experience working at Aldar Properties.

Dubai-based investment company Amanat tapped John Ireland (LinkedIn) as its CEO, according to a DFM filing (pdf). Ireland has been serving as acting CEO since March 2023.

RAK Properties has elected Abdulaziz Al Zaabi as chairman of its board, and Muhammad Al Nuaimi as vice chairman, according to an ADX disclosure (pdf).

The UAE is taking bullish leaps for AI

The UAE’s AI ambitions get the spotlight treatment in the foreign press: Time Magazine interviews AI Minister Omar Al Olama and Advanced Technology Research Council Director Faisal Al Bannai for an in-depth feature on the UAE’s attractions as a hub for AI, including founding one of the world’s most impressive open-source large language models, Falcon. Meanwhile, the Financial Times speaks with European and UK AI startups – including Aleph Alpha, Synthesia, and StabilityAI — who say they are being lobbied by UAE and Canada officials with subsidies and favorable regulations.

Is the “green living” trend alive in the UAE?Despite a USD 354 mn investment and seven years of development, the UAE’s sustainable city’s eco-promises remain unmet, casting doubt on the country’s ability to develop a trend of “green” living, Bloomberg writes.

One Moto + Global Synergy Trading to expand into India

EVs-

One Moto + Global Synergy Trading expand into India EV sector: Dubai-based EV startup One Moto and trading company Global Synergy Trading (GST) have launched One-Moto Technologies to manage their expansion into India’s two-wheeled EV sector, with support from the Dubai International Chamber, according to a statement. GST has been looking to diversify by entering the assembly and production sector, while One Moto is looking to further expand its decarbonization efforts, according to the statement.

Not One Moto’s first international venture: The company expanded its operations to Latin America last year, and is present in the UAE, Bahrain, Jordan, Kuwait, and conducted talks in Saudi Arabia and Morocco.

TECH-

#1- US-based tech company Nozomi Networks has expanded in the UAE through a newcloud-based cybersecurity management platform dubbed Nozomi Vantage, a press release reads. The new platform will help companies manage the security of their digital infrastructure, including their operational technology (OT) and Internet of Things (IoT) devices, through one consolidated platform.

#2- Coupa sets up shop in Dubai: AI cloud-based spend management platform Coupa inaugurated its first data center in the Middle East in Dubai, with support from Amazon Web Services, according to a press release. The move comes as part of the company’s plan to ramp up services for its UAE and Middle Eastern clients, with faster response times and compliance with local data regulations.

#3- AI-powered tech company Gewan AI and Eros Investments inked an agreement to ramp up cooperation in AI, innovation, and advanced technology, focusing on joint research and development initiatives, on the sidelines of Investopia 2024, reports Wam. Gewan AI plans to integrate its solutions in police, health, media, and retail fields, with support from the Economy Ministry.

#4- e& UAE and optical communications company Corning Incorporated have partnered up to bring Fiber-to-the-Yacht connectivity to Yas Marina, according to a press release. This collaboration has brought fiber optic cables to 138 yachts in the marina.

HOSPITALITY-

Delano lands in the UAE: Real estate investment company Dubai Holding has partnered with leisure hospitality company Ennismore to launch the latter’s Delano brand in Bluewaters Dubai later this year, reports Wam.

Background: Dubai Holding and Ennismore inked an agreement back in September 2023 to introduce new brands to Dubai, starting with the opening of Banyan Tree Dubai at Bluewaters Dubai last November.

ENERGY-

Renewable energy company X-Noor and industrial player John Crane are collaborating to build solar projects on the rooftops and car parking spaces of John Crane’s Middle East headquarters in Dubai, according to a press release. The facility is set to produce 785 MWh annually.

TOURISM-

Real estate developer Miral has completed 65% of the Natural History Museum Abu Dhabi, poised to be the region's largest upon completion in 2025, according to the Abu Dhabi Media Office.

LAW-

Indian law firm Cyril Amarchand Mangaldas has set up an office in Abu Dhabi Global Market (ADGM), marking its entry into the Middle East, according to a statement.

Reddit raises USD 748 mn in its IPO, with trading beginning today

Social media platform Reddit has raised USD 748 mn after setting its final IPO price at the top of its initial price range at USD 34 per share, the company said in a statement overnight. Reddit sold 22 mn shares in the offering, which has been in the making for nearly three years. The company is setting aside around 8% of the shares on offer for users and moderators who had accounts before the start of the year, along with employees’ friends and family and some board members, according to Bloomberg. “Those shares won’t be subject to a lockup, meaning the owners can sell them on the opening day of trading,” the business information service reports.

The company’s shares are set to begin trading on the New York Stock Exchange today under the ticker RDDT.

THE MARKET THIS MORNING-

Traders this morning welcomed the US Federal Reserve’s guidance: All of the major Asian benchmarks we follow are up in early trading — and three of them are soaring, up nearly 2%: The Nikkei, Kospi, and Hang Seng.

Sound smart: The Nikkei has just hit an all-time high. Traders were already in a good mood, having welcomed the Bank of Japan’s move earlier this week to raise interest rates for the first time since 2007. Prior to the move, Japan was the world’s last remaining negative-rates regime.

Futures are also up, with everything from S&P, Nasdaq, and Dow futures to wagers on European equities and oils on the rise.

ADX	9,269	+0.1% (YTD: -3.2%)
DFM	4,291	+0.4% (YTD: +5.7%)
Nasdaq Dubai UAE20	3,747	+0.5% (YTD: -2.5%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.1% o/n	5.4% 1 yr
TASI	12,739	-0.5% (YTD: +6.5%)
EGX30	28,589	-0.3% (YTD: +14.8%)
S&P 500	5,225	+0.9% (YTD: +9.5%)
FTSE 100	7,737	0.0% (YTD: +0.1%)
Euro Stoxx 50	5,000	-0.2% (YTD: +10.6%)
Brent crude	USD 85.95	-1.6%
Natural gas (Nymex)	USD 1.70	+0.2%
Gold	USD 2,208	+1.0%
BTC	USD 67,752	+7.5% (YTD: +45.4%)

THE CLOSING BELL-

The DFM rose 0.4% yesterday on turnover of AED 404.2 mn. The index is up 5.7% YTD.

In the green: Al Firdous Holdings (+4.2%), Al Salam Bank (+3.9%) and Union Properties (+3.9%).

In the red: Emirates Reem Investments Company (-2.1%), National Central Cooling (Tabreed) (-2.0%) and Ekttitab Holding Company (-1.8%).

Over on the ADX, the index rose 0.1% on turnover of AED 1.1 bn. Meanwhile Nasdaq Dubai closed up 0.5%.

CORPORATE ACTIONS-

Al Ansari Financial Services approved a dividend payout of AED 300 mn for 2H 2023, bringing the total amount of dividends for the year to AED 600 mn, according to a DFM disclosure (pdf).

District cooling firm Tabreed approved a record high dividend payout of 15.5 fils per share, according to a DFM disclosure (pdf).

Abu Dhabi Aviation's board recommended distributing AED 111.1 mn in dividends for 2023, according to an ADX disclosure (pdf). The proposal will be reviewed at the company’s upcoming general assembly meeting scheduled on 16 April.

National Marine Dredging Company approved a dividend distribution of AED 618 mn, according to an ADX disclosure (pdf).

Sheikh Abdullah bin Zayed and Antony Blinken talk ceasefire

Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan spoke with American Secretary of State Antony Blinken yesterday, discussing efforts to secure “a ceasefire of at least six weeks as part of an agreement for the release of all hostages” in Gaza, according to a US State Department statement. The phone call also covered the importance of protecting civilian life and the coordination in addressing the humanitarian crisis in Gaza.

OTHER DIPLO NEWS-

President Sheikh Mohamed bin Zayed Al Nahyan received a letter from his Slovak counterpart Zuzana Čaputová on developing cooperation between the countries. (Wam)

CALENDAR

MARCH

14 March-14 April (Thursday-Sunday): Dakakeen Festival, Khorfakkan Amphitheatre.

21 March (Thursday): Parkin shares begin trading.

21 March-10 April (Thursday-Wednesday): Ramadan Nights 2024, Expo Centre Sharjah.

26 March (Tuesday): Chimera JPMorgan UAE Bond UCITS ETF to debut on the ADX.

APRIL

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

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

15-16 April (Monday-Tuesday): Blockchain Life Forum 2024, Festival Arena, Dubai.

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

16-18 April (Tuesday-Thursday): EcoWaste Exhibition and Forum, 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.

23-25 April (Tuesday-Thursday): Argus Fertilizer Asia Conference, Abu Dhabi.

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

24-25 April (Wednesday-Thursday): Ras Al Khaimah Investment and Trade Summit, Rak Exhibition Centre.

24 April-1 May (Wednesday-Wednesday): Abu Dhabi Mobility Week.

25-26 April (Thursday-Friday): DRIFTx, Abu Dhabi.

29-30 April (Monday- Tuesday): Dubai World Ins. Congress, Atlantis, The Palm.

MAY

1-5 May (Wednesday-Sunday): The Sharjah Animation Conference, Expo Centre Sharjah.

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.

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

13-15 May (Monday-Wednesday): Abu Dhabi Global Healthcare Week, Adnec Centre, Abu Dhabi.

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.

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

19 May (Sunday): Investopia Europe, Milan.

24-25 May (Friday-Saturday): Baby Expo, 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.

26-28 November (Tuesday-Thursday: Global Media Congress, Adnec Center, Abu Dhabi.

DECEMBER

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

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.

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