S&P sees UAE’s economy growing more than 5% this year

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WHAT WE’RE TRACKING TODAY

It’s day 2 of Davos + S&P Global sees UAE’s economy outpacing global growth this year

Good morning, wonderful people. There’s a faint whiff of doom and gloom in the air as the business elite, grand wizards of high finance, and political class gather in Davos for the “real” first day of the World Economic Forum. And as longtime readers know, there’s little that media folks like more than a bit of angst.

The news cycle and the annual hand-wringing associated with the WEF provide equal measures of each:

DOOM + GLOOM #1- 70% of CEOs around the world see generative AI changing their strategies this year in one way or another — and 45% of them think their businesses will die within a decade unless they make significant changes, according to PricewaterhouseCoopers’ annual global CEO survey (website | PDF). Three of every four respondents think AI will meaningfully change their business in the coming 36 months — and most think that AI will see businesses shedding around 5% of their workforces this year.

(The PwC survey is front-page news in both the Financial Times and Reuters as we head into dispatch time this morning.)

DOOM + GLOOM #2- Your employees don’t think you’re doing a good job at managing change. That’s the take-home lesson from Edelman’s annual trust barometer (website | pdf), which found that “authority” is on the decline alongside public trust in business and government. Americans were the most likely to distrust business and government to manage innovation (56%), and resistance to change is particularly high in right-wing folks in the US, Germany, Australia, and Canada.

DOOM + GLOOM #3- The Bloomberg Economics and Bloomberg News team would like to keep you awake at night with worries as they present their annual Pessimist’s Guide to Global Economic Risks. Conflict in the wider Middle East is at the top of the list, and the US elections (and interest rate policy, oil, et cetera) are not far behind.

DOOM + GLOOM #4- QatarEnergy has stopped sending LNG tankers through the Red Sea as Houthi attacks continue. The company is the world’s second-largest exporter.

DAVOS WATCH-

On the ground in Switzerland, day two is shaping up to be very Mideast-heavy. World leaders, global banking and finance chiefs, top economists, Gulf bn’aires, and Wall Street giants have all descended upon Switzerland for the first full day of meetings for the World Economic Forum (WEF) 2024. Upcoming speeches by Ukrainian President Volodymyr Zelensky and EU Commission President Ursula von der Leyen are grabbing the attention of the global press, but there’s plenty to keep an eye on from regional heavyweights, including AI Minister Omar Al Olama, who will speak at a session on generative AI at 11:15am UAE time.

The UAE is in Davos in force: Over 100 Emirati personalities, 80% of whom are from major national companies and the private sector, are expected in Switzerland this week.

Not in Davos? Turkey. Turkish officials will be skipping the gathering on orders from President Recep Erdogan to protest Forum organizers’ position on Israel’s war on Gaza, Bloomberg reports.

** You can watch select live sessions here and check out the full program here.

HAPPENING TODAY-

The Sharjah Real Estate Exhibition kicks off today at the Expo Centre Sharjah and will run until this Saturday, 20 January, Wam reports. The exhibition will bring together over 93 local and international real estate developers and companies to exhibit their projects, offer preferential pricing and payment plans, and strike agreements.

The MENA region’s largest expo for lighting and building tech, Light + IntelligentBuilding Middle East, also kicks off today atthe Dubai World Trade Center, and will run until Thursday, according to a press release. The event features 400+ global exhibitors and 1k+ brands.

iFX EXPO Dubai 2024 starts today: The three-day fintech and online trading expo iFX EXPO Dubai 2024 starts this morning at the Dubai World Trade Centre. Check out the full agenda here.

The Dubai International Project Management Forum (DIPMF) is on its second day at the Madinat Arena in Madinat Jumeirah. DIPMF 2024 will focus on sustainability, modern methods of project management, and future trends and technology. The event runs until Thursday, 18 January.

PUBLIC SERVICE ANNOUNCEMENT-

Workers who have lost their jobs can now claim compensation through the job loss scheme online. The only criteria required is to be subscribed to the scheme for at least one year, and to file your claim within 30 days of job termination.

HAPPENING THIS WEEK-

#1- Australian Foreign Minister Penny Wong will be in town as part of a wider regional tour that will also see her visiting Jordan, Israel, and Palestine to discuss the ongoing war in Gaza, according to a statement from the Australian Foreign Ministry.

Wong’s visit also marks the start of negotiations for a trade agreement between the UAE and Australia, the statement said. The two countries agreed last December to launch the negotiations, aimed at boosting bilateral trade ties and bolstering Australian imports to the UAE.

#2- Abu Dhabi-based defense conglomerate Edge Group is hosting a delegation of state officials from the Sao Paulo government for a three-day visit, during which they will be discussing potential investments and partnerships, according to a press release.

DATA POINTS-

#1- The UAE secured over USD 78 bn in construction contracts in 2023, accounting for nearly half of construction contracts in the GCC during the year, according to MEED ’s regional projects tracker. The UAE came in second in the GCC behind Saudi Arabia, which secured some USD 92 bn in contracts. Total contracts awarded in the GCC rose 88% y-o-y to USD 205 bn.

#2- Dewa recorded 12.5 mn transactions in 2023: Dubai Electricity and Water Authority’s (Dewa) reported a 25% increase in transactions to 12.5 mn in 2023, up from 10 mn recorded in 2022, Wam reports. Some 2.1 mn transactions were carried out on Dewa’s website and over 3.2 mn were through its smart app, while the remaining 6.8 mn transactions were through other digital platforms.

#3-Dewa also commissioned 1,414 11 KV electrical substations last year, Wam reported separately. This brings the total number of operational 11 KV and 6.6 KV substations to over 44k by the end of 2023.

#4-Record breaking year for budget airline Wizz Air:Wizz Air Abu Dhabi doubled its number of flights in 2023 to a record 15k flights, carrying a total of 3 mn passengers in 2023, according to a statement. This included transiting over 1.5 mn point-to-point passengers to Abu Dhabi. The airline expanded its fleet with four A321 aircrafts, increasing its seat capacity by 135% to 3.7 mn seats.

#5- A total of 134 UAE citizens have been hired for specialized, technical, and administrative work for the Federal Tax Authority in 2023, state news agency Wam reports. The figure exceeds the FTA's initial target of recruiting 123 Emiratis, announced at the beginning of 2023 to improve Emiratisation rates across all of its sectors.

WATCH THIS SPACE-

#1- ADJD sets up automatic system for completed payments on judicial rulings:Enforcement decisions on judicial rulings will automatically be canceled once the relevant financial payments have been completed through official channels thanks to a new system the Abu Dhabi Judicial Department has set up, according to state news agency Wam. The system will monitor payment statuses on enforcement decisions, and is set to be the first implemented by a judicial authority in the region.

#2-Abu Dhabi could award the contract for an underpass and two bridges in Khaleej Al Arabi Street by early April, Zawya reports, citing a source it said has knowledge of the project. Abu Dhabi’s Transport department launched the tender for the contract on 11 January, and bids are due by 12 February, according to the source. Construction on the USD 50 mn project is set to be completed by 1Q 2026, according to the unnamed source.

THE BIG STORY ABROAD-

THE BIG STORY ABROAD is the start of the Iowa caucuses, where Republicans in the state have decided they’d like to see Donald Trump again seek the presidency under their banner.Caucus-goers are braving bone-chilling cold to meet.

Former US President Donald Trump has taken the caucuses, as expected. Both the Associated Press and CNN are projecting Trump will carry the state, meaning the fight is now down to whether former diplomat Nikki Haley or Florida Governor Ron Desantis will place second.

When will we know more? It depends, but near-final results should be in just after you open this email.

Where are the Democrats? They won’t be caucusing tonight after the party stripped Iowa of the right to run a caucus after counting issues in 2020. New Hampshire is running an unsanctioned primary next week and the first “formal” Democratic primary is South Carolina on 2 February.

Where can I get results? Check out live blogs from the New York Times and Wall Street Journal or the live results counter from Politico.

MUST READ: Who’s moving on from Iowa and who’s dead in the water? A viewer’s guide to reading the returns in Politico.

OH, AND… The Emmys are running as we speak, four months late thanks to the Hollywood writers’ and actors’ strikes. Liveblog here.

ON THE BUSINESS FRONT- No single story dominates as everyone looks to either Davos or Iowa. But near the top of the list: Instability in our corner of the world, as the world’s second-biggest LNG exporter skips the Suez Canal, the Houthis struck a US-flagged merchant vessel, and Iran’s Revolutionary Guards attacked what they said are Israeli “espionage centers” in Iraq.

CIRCLE YOUR CALENDAR-

The Abu Dhabi Extreme Championship 2 (ADXC 2) is taking place this Friday at the Mubadala Arena. You can get your tickets for the martial arts tournament here.

World of Coffee Dubai kicks off next Sunday, 21 January at the Dubai World Trade Center, bringing together stakeholders in the UAE’s coffee industry, including producers, retailers and traders. The event — which includes lectures and workshops, as well as a barista championship — runs until Tuesday, 23 January.

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

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ALSO- We’re happy to let you know that the EnterpriseAM UAE website is now up and running with 27 back issues online. We’re building out functionality over the coming day or two and it should be fully up and running before the end of the week.

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CORRECTION- A technical glitch in yesterday’s EnterpriseAM UAE saw us publish the wrong image atop a story about FAB selling an AED 700 mn sukuk. The gremlin has been quashed and the right image substituted. We regret the error.

S&P sees UAE GDP growing at more than 5% this year, outpacing global economic growth

Economic growth in the UAE will accelerate to more than 5% in 2024, outpacing the 2.8% growth expected for the global economy, S&P Global Ratings’ Associate Director of Corporate Ratings Tatiana Leskova tells state news agency Wam. The country’s GDP grew at an estimated 3% in 2023, Leskova estimates, with nearly 6% growth in the non-oil sector, despite “subpar growth levels” in the global economy.

This is higher than most other projections: The World Bank expects to see 3.7% growth in 2024, it said in its Global Economic Prospects report (pdf ), up from the previous estimate of 3.4% in the June edition of its report. The Arab Monetary Fund sees the UAE’s GDP growing at a 4.3% clip this year, while the Central Bank of the UAE is more bullish, saying last month it sees the economy growing at a 5.7% clip in 2024.

Driving the growth: Economic growth in 2024 and 2025 are set to be underpinned by sustained momentum in Dubai’s hospitality, wholesale, retail, and financial services sectors, Leskova said.

Real estate shows its defensive mettle: The UAE, and particularly Dubai, have shown relative resilience to global economic challenges, attributed to “limited sensitivity to interest rates and contained inflation,” Leskova explained. Dubai — where more than 80% of real estate sales are made with bank notes — witnessed an increase in mortgage transactions, despite higher interest rates, she added. Dubai also remains the most appealing destination for real estate investments, despite the emergence of gaming hotels in Ras Al Khaimah, she said.

Qatar pauses LNG shipments through the Red Sea as Houthis retaliate to US-UK strikes

At least five Qatari vessels carryingliquefied natural gas making their way to the Bab El Mandeb strait have been halted since Friday, Bloomberg reports. Some 209 oil tankers — making up around 4% of the world’s oil fleet — have started rerouting away from the Red Sea over the weekend, Asharq Business reports, citing a note from Oil Brokerage.

This includes Qatar’s state-owned LNG carrier QatarEnergy, which is pausing Red Sea transits pending a security update, Reuters reported. “It is a pause to get security advice, if passing [through the] Red Sea remains unsafe we will go via the Cape [of Good Hope],” the newswire reports, citing an unnamed senior source.

The alternative route around Africa’s Cape of Good Hope could add some nine days to European shipments, with current transit times standing at around 18 days, the newswire said.

Background: While the Houthi group hasn’t purposely targeted any oil tankers since the onset of attacks in November, Qatar — the second largest exporter of LNG to Europe — is likely to view the US-UK strikes as the beginning of graver tensions in the Red Sea. The two western navies advised merchant vessels to avoid Red Sea transit on Sunday amid their attack on Houthi bases.

ICYMI- The US, UK, and a handful of allies carried out a series of strikes on Houthi facilities across Yemen on Friday, in response to repeated Houthi attacks on commercial vessels passing through the Red Sea over the last two months.

Houthis strike back: Houthi militants fired an anti-ship cruise missile at an American destroyer in the southern Red Sea on Sunday before being shot down by US fighter jets, US Centcom reported.

Hapag-Lloyd prolongs Red Sea diversion: German shipping line Hapag-Lloyd will continue to reroute ships around the Cape of Good Hope for at least another week since it pulled its fleet from the fraught waterway in December, it said in a statement yesterday.

Market reacts: Brent crude rose 0.5% yesterday to USD 72.50 / bbl.

OTHER TRADE NEWS-

UAE businesses to ditch European suppliers amid Red Sea crisis? UAE-based businesses are looking to diversify their supply lines away from Europe in search of alternate markets amid continued shipping disruptions in the Red Sea, Gulf News reports. With shipping costs from Europe currently over USD 1k per container, compared to USD 450 prior to the crisis, some businesses are looking to Turkish suppliers to cover their short-term, faster shipping needs, avoiding the added 15-18 days on the Cape of Good Hope route, CSS Dubai freight forwarding VP Roshmon Manoli told Gulf News.

Nasdaq Dubai welcomes USD 600 mn green bonds from China Construction Bank

China Construction Bank (CCB) has listed USD 600 mn in green bonds on Nasdaq Dubai, according to a statement. The listing brings the value of issuances by CCB on Nasdaq Dubai USD 2.45 bn. The issuance takes the value of CCB’s bonds on Nasdaq Dubai to USD 2.45 bn, and the total value of ESG-related bonds on the exchange to USD 27.05 bn.

CCB will use the capital to boost green projects in the UAE and the region, including renewables, desalination, energy efficiency, and reducing emissions.

China Construction Bank is active in other green markets in the Gulf too: Saudi Arabia’s Acwa Power secured a USD 100 mn revolving credit facility from the Chinese lender in July to boost its power and water generation portfolio across the Middle East and the Belt & Road countries. The two also partnered on the 2.4 GW Hassyan power plant in the UAE and the 485 MW Zarqa gas power plant in Jordan.

China's green bonds ? Nasdaq Dubai: State-owned Industrial and Commercial Bank of China listed green bonds worth USD 2.03 bn on Nasdaq Dubai last November. The bank also listed four green bonds in February last year totalling USD 2.2 bn.

Could we see Dubai real estate prices cool down in 2024?

Enterprise Explains: Behind rising property prices + the outlook for the market in 2024. Data out over the past few weeks has pointed to a record increase in real estate prices in the UAE in 2023, with indications property prices will continue to appreciate in 2024 — albeit potentially at a slightly slower pace. The IMF estimates that real estate prices rose at the highest levels globally last year, with a 10.4% y-o-y surge, while others have estimated an even higher 15-18% surge in Dubai alone.

By the numbers: The UAE ranks sixth globally in estate price increases since pre-pandemic levels, rising 14.1% and trailing Portugal, the US, Japan, and the Netherlands, according to the IMF. Dubai real estate’s residential real price growth rates surged higher than any other major city in 2Q 2023, including Miami, Tokyo, and New York, according to the 2023 UBS Global Real Estate Bubble Index.

Sales also hit a record high in Dubai: Dubai’s real estate sales neared AED 401 bn for the first time ever last year, with a record 129k sales recorded, up 32% y-o-y, Gulf Today reports, citing a review by real estate brokerage W Capital.

The rental market is no different: Rentals in the emirate have risen some 42% since 2020, Bloomberg reports, citing data from property advisory firm CBRE Group.

Soaring prices owe a lot to an influx of foreign wealth: Russian business leaders turned to Dubai after the outbreak of war in Ukraine, making up nearly 15% of the market, the Telegraph reports. Ultra-high-net-worth Russian individuals looked to Dubai due to its lack of Western sanctions, low taxes, favorable positioning for remote work, and residency programs. Middle-class Russians did the same, fueling competition for real estate at multiple price points.

And it’s not just Russians: Half of Dubai’s property market consists of overseas buyers, including crypto m’naires and wealthy individuals from Europe and India, reports The Telegraph. Chinese buyers also flocked to Dubai to safeguard their investments amidst geopolitical tensions, Sergei Rakov, head of technology at real estate agency Allsopp & Allsopp said.

A lot of it was driven by luxury buys: These buyers tended to favor Dubai’s luxury segments, Rakov said. Wealthy buyers spent approximately USD 2.27 bn on luxury homes in Dubai in 2023, with the most expensive transaction (a five-bedroom apartment in Palm Jumeirah’s Como Residences) totaling USD 136.2 mn, reports Bloomberg. The number of homes purchased at USD 25 mn or more doubled y-o-y to reach 56 luxurious homes sold compared to 28 in 2022. Palm Jumeirah Island and Jumeirah Bay Island pooled the most global wealth.

Dubai estates are expected to get slightly more expensive in 2024, though at a slower pace than last year. S&P Global Ratings forecasts a 5-7% jump in Dubai property prices this year, down from 15% in 2023. The ratings agency also sees a risk of a cyclical slowdown, suggesting we could see prices “decelerate and potentially slightly reverse over the next 12-18 months, with price declines not exceeding 5%-10%.”

The past two months have shown signs of a slowdown: Morgan Stanley sees “continued tailwinds” for the market and thinks the market this year will be “less of a boom than 2023,” Bloomberg reports. Despite rents continuing to increase, the rate of the increase is cooling in some popular neighborhoods, with average rents rising 19.2% in November, slightly slower than October’s 19.7%, according to CBRE data picked up by Bloomberg.

Purchasing power is stretched thin:Buyers in Dubai are turning to smaller, one-bedroom apartments and studios amid global economic uncertainty, Bloomberg quotes Tatjana Lescova, S&P’s associate director of corporate ratings, as saying. Lescova, who covers three Emirati developers with a combined market share of some 50%, pointed to a downsizing trend late last year. “You have the high net worth individuals who can afford multiple and multi-mn properties, but the bulk of the market is coming to a certain limit in terms of purchasing power as property becomes expensive,” Lescova said.

Oversaturation + less demand will give way to lower prices: Property developers are already lowering prices to “reel in hesitant buyers,” Lescova said. This comes as sales of houses are expected to jump to 40k in Dubai this year, compared to historical figures of 15-30k homes sold.

Developers will shift their focus to earnings growth as they look to avoid history repeating itself with the boom-and-bust cycle in real estate in Dubai, Bloomberg cites Morgan Stanley as saying.

Despite the expected slowdown, prices in Dubai are considered to be “fairly valued,” with consistent income growth and rental growth surpassing owner-occupied price growth,according to UBS.

Mohamed Al Ali appointed CEO of Pakrin

Parkin, the newly formed company responsible for managing parking facilities in Dubai, has appointed Mohamed Al Ali (LinkedIn) as its new CEO, according to a Government of Dubai Media Office statement. Al Ali boasts over 20 years of project management experience in public transport and infrastructure. He oversaw several departments within the Roads and Transport Authority over 16 years, including roles in building, strategic planning, and the buses division.

Real Madrid, Barcelona and Xavi topping UAE X land

Football is the flavor of the day on X with ريال_مدريد_برشلونه# (Real Madrid v Barcelona) getting the most hits, after Madrid thrashed Barca 4-1 in the Spanish Super Cup. We also picked up تشافي# (Xavi), usually mocking the Barcelona manager after what X-land are calling poor managerial decisions.

GQG’s investment in IHC gets some ink

Finance is still the main theme of UAE coverage in the foreign press:The Financial Times gave ink to fund manager GQG’s recent purchase of a USD 1 bnstake in the ADX-listed conglomerate IHC, as it shifts its focus away from China in favor of the Middle East’s “business-friendly” environment.

Emirates NBD Capital appointed bookrunner for QIIB + advising on Fourth Mill IPO. PLUS: Infrastructure, banking, finance aviation, and education news

DEBT WATCH-

Emirates NBD Capital tapped as joint lead manager and bookrunner on QIIB’s sukuk offering: Qatar International Islamic Bank (QIIB) has appointed Emirates NBD Capital as joint lead manager and bookrunner on its upcoming USD-denominated 5-year senior unsecured sustainable sukuk issuance, according to a Qatar Stock Exchange disclosure. The sukuk, expected to be rated A- by Fitch, is part of the bank’s USD 2 bn Trust Certificate Issuance Program.

Other advisors: Al Rayan Investment (Masraf Al Rayan Group), Dukhan Bank, KFH Capital and QNB Capital were also selected as joint lead managers and bookrunners and will coordinate meetings with global investors, including virtual discussions that began yesterday and in-person fixed income investor meetings in London that will take place today. Standard Chartered Bank was selected as global coordinator.

IPO WATCH-

Saudi Arabia’s Fourth Milling has tapped Emirates NBD Capital to advise on its IPO, Bloomberg reports. Riyad Capital was also tapped to advise on the domestic initial public offering, according to sources with knowledge of the matter. The share sale, which could raise more than USD 200 mn, could take place as soon as 1H 2024, an unnamed source told Bloomberg. UAE-based Himmah Capital was selected in October to advise on the offering.

INFRASTRUCTURE-

Abu Dhabi and Al Ain are set to get new parks and transport projectsworth a combined AED 28 mn, after Abu Dhabi’s department of municipalities and transport inked an agreement with Abu Dhabi’s social development arm Ma’an, according to an Abu Dhabi Media Office statement. The projects include:

Developing nine community parks worth a combined AED 14.5 mnin several locations across Abu Dhabi;
Raising some AED 9.1 mn for the development of Al Batha Nature Reserve community park;
Three projects worth AED 4.4 mn led by the Integrated Transport Center, including rest areas for delivery drivers, boosting the number of taxis for people of determination, and building bus shelters.

HOSPITALITY-

Aleph Hospitality to manage new 110-key hotel in KSA’s Abha: Dubai-based Aleph Hospitality is set to manage Hotel Indigo Abha, a new facility which global hospitality player Intercontinental Hotel Group (IHG) will open in Saudi Arabia’s Abha under a franchise agreement it signed with Firdous Abha Hotel, IHG said in a statement. The new facility is scheduled for opening in December 2025

BANKING-

First Abu Dhabi Bank subsidiary Dubai First has become the first credit card issuer in the region to use Mastercard’s Token Connect technology, which allows customers’ card information to be securely transferred from the Dubai First mobile app to click-to-pay and digital wallets, according to a Mastercard statement. Tokenization technology allows users to manage their cards in a secured profile, easing check-out transactions by replacing a card’s primary account number with a unique alternative token number, the statement reads.

FINANCE-

#1-Less expensive retail spaces, kiosks and shops for businesses, courtesy of Khalifa Fund + Al Mushrif Coop:Khalifa Fund and Al Mushrif Coop inked a strategic partnership to providebusinesses with 25-50% markdowns on retail space, listings and registration fees, as well as 20-40% breaks on kiosks and 15-20% on shop rentals, according to a press release. The press release does not clarify what the criteria is for businesses to qualify for the markdowns, nor if they are capped.

#2-South Africa’sMaleyat Group enters MENA: Dubai-based client introductory services firm MCG Introduction Services will become South African online trading platform Maleyat ’s exclusive partner in the Middle East under a new partnership agreement, according to a press release. The partnership marks Maleyat’s entry into the region, and will see MCG introduce Maleyat’s trading platform to regional clients, the statement said.

#3- Dubai International Financial Centre and Guernsey Finance will cooperate on knowledge transfer and boosting investment flows between the two finance centers, according to a press release. The agreement will also see them work on organizing events and fostering talent development. Guernsey Finance hosts over 20% of the UK FTSE 100 companies in its jurisdiction.

ENVIRONMENT-

AD Ports Group, CMA CGM, and Ecocean willequip Khalifa Port with 48 biohuts to support the health of its coastal ecosystem, reports Wam. The Biohuts will be installed in 1Q 2024 at a new CMA CGM terminal currently under construction. Port locations where marine life needs the most support and regeneration will be targeted, with the project's pilot phase expected to last five years.

SOUND SMART- Biohuts are eco-friendly, non-toxic submerged structures offering a safe habitat for marine species to thrive.

EDUCATION-

#1-Palms Sports pins AED 282.2 mn contracts for nationwide Jiu-jitsu training:Emirates Schools Establishment (ESE) has awarded ADX-listed sports management company — and long-time partner — Palms Sports two jiu-jitsu program contracts worth AED 282.7 mn, according to a press release.

By the numbers: The first contract, valued at AED 68.7 mn over two and a half years, will fund the extension and expansion of a school jiu-jitsu program at ESE. The second contract worth AED 214 mn involves the comprehensive renewal of programs at 117 schools across Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah.

#2-Khalifa University launches cybersecurity training academy:Khalifa University of Science and Technology and the Cyber Security Council inaugurated the Khalifa University Cybersecurity Academy yesterday to provide training on cybersecurity in both Arabic and English, Wam reports.

AVIATION-

Emirates Skywards and TudoAzul members can now redeem miles across both Emirates and Azul’s networks, after the two airlines launched a reciprocal loyalty program, according to a press release.

FINTECH-

Dubai-based cashback platform Znap has rebranded to Totl under its “service delivery transformation strategy” that looks to modernize the brand, the startup said in a press release.

London slashes finance jobs

SIGN OF THE TIMES- London is shedding finance jobs, with openings in the field down 38% year-on-year in 2023. Total job seekers dropped 16% in the same period, according to a new report by staffing agency Morgan McKinley.

What they’re saying: “We haven’t seen a drop of this magnitude for a while. After a year of strong pay growth and over-hiring driven by a tight labor market, signs of a cooling market emerged as we approached the end of a challenging year,” Morgan McKinley UK chief Hakan Enver said.

Global banks slashed some 60k jobs last year — and fewer people are interested in applying for those positions that are still open.

What’s more, job seekers are moving for smaller bumps than a year ago. The average finance professional taking up a new post got a 14% bump in salary last year — down from 20% in 2022.

Asset manager GQG doubles down on Mideast stocks: Florida-based asset management firm GQG has piled up USD 2.8 bn stakes in companies in the Middle East over the past 18 months, lured by “business friendly” government policies, plans to move away from oil, and “massive privatization hopes,” the Financial Times reported, citing GQG founder Rajiv Jain. Meanwhile, the company has cut its investments in China to roughly half that level amid a government crackdown on private sector activity.

ADX	9,777	-0.1% (YTD: +2.1%)
DFM	4,101	-0.1% (YTD: +1.0%)
Nasdaq Dubai UAE20	3,893	-0.2% (YTD: +1.3%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
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FTSE 100	7,595	-0.4% (YTD: -1.8%)
Euro Stoxx 50	4,455	-0.6% (YTD: -1.5%)
Brent crude	USD 72.50	+0.52%
Natural gas (Nymex)	USD 212.07	-6.25%
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BTC	USD 42,737.10	+0.8% (YTD: +1.3%)

THE CLOSING BELL-

The DFM fell 2.82% yesterday on turnover of AED 215 mn. The index is down 0.69% YTD.

In the green: Emirates Reem Investments (+2.0%), Al Ansari Financial Services (+1.9%) and Amanat Holdings (+1.7%).

In the red: International Financial Advisors (-7.1%), Ekttitab Holding Company (-4.9%) and Takaful Emarat (-1.5%).

Over on the ADX, the market finished down 0.23%, up 2.56% YTD.

And the Nasdaq Dubai: finished down 0.18%, up 2.09% YTD.

Asian markets are mostly in the red this morning. Remarks by IMF boss Kristalina Georgieva are weighing on sentiment after she said yesterday in Davos that China needs to push for significant reforms or face “a fairly significant decline in growth rates.” Futures suggest stocks across western Europe and on Wall Street start the day in the red.

CORPORATE ACTIONS-

BHM Capital to serve as RAK Properties’ liquidity provider: Ras Al Khaimah’s ADX-listed property developer, RAK Properties, has tapped licensed market maker BHM Capital as a liquidity provider for its listed shares, according to a DFM filing (pdf). BHM Capital will aim to “enhance price stability, attract a broader range of investors to trade in the company's shares, and increase its turnover,” BHM Capital CEO Abdel Hadi Al Sa’di said.

SOUND SMART- A liquidity provider or market maker is an intermediary in securities markets that buys assets and distributes them to financial institutions and investors. Their buying and selling activity ensures that company assets are always tradeable and “liquid.”

Apex offloads c.34% stake to two family-owned companies: Abu Dhabi-based investment company Apex Investment sold a stake of over 34% to two companies owned by family members of two of the company’s board members. The transaction saw the transfer of over 1.2 bn shares that were owned by Newtech Investment General Trading Company. NK Trust for Commercial Investmentsand FX Capital Commercial Investments now each own a 17% stake in the company after acquiring over 610 mn shares in total, according to separate disclosures (pdfs — here and here).

The UAE at the Arab Ministerial Housing Forum + FM phones Israeli, British counterparts and UN’s Kaag

The UAE discussed its candidacy for the presidency of the UN’s Human Settlements Program at the ArabMinisterial Forumfor Housing and Urban Development in Libya on Sunday, state news agency Wam reports. Director of the Sheikh Zayed Housing Programme Mohamed Al Mansoori also discussed cooperation with other Arab nations to improve housing conditions at the forum, according to Wam.

FM discusses Gaza with British, Israeli counterparts and UN’s Kaag: Foreign Affairs Minister Sheikh Abdullah bin Zayed Al Nahyan stressed the need to provide aid to Gaza during phone calls with the UK’s Secretary of State for Foreign, Commonwealth and Development Affairs David Cameron and Israeli FM Israel Katz and the UN’s Senior Humanitarian and Reconstruction Coordinator for Gaza Sigrid Kaag yesterday, state news agency Wam reported

OTHER DIPLOMACY NEWS-

Turkey to solidify investment ties with Sharjah: The Sharjah Chamber of Commerce and Industry chairman Abdullah Sultan Al Owais met with Consul General Onur Şaylan to discuss boosting trade and investment ties between both countries. (Sharjah24)
The Sharjah Charity International has shipped medical aid to Ghana for support care centers for the elderly and individuals of determination, including 12 medical beds, various analysis devices to aid medical labs in care centers, as well as artificial respirators. (Sharjah24)

CALENDAR

Due to the length of this morning’s issue, our Calendar appears only on the web.

JANUARY

16-18 January (Tuesday-Thursday): Light + Intelligent Building Middle East, Dubai World Trade Centre.

16-18 January (Tuesday-Thursday): iFX EXPO Dubai 2024, Dubai World Trade Centre.

16-20 January (Tuesday-Saturday): The Sharjah Real Estate Exhibition, Expo Centre Sharjah.

19 January (Friday): The Abu Dhabi Extreme Championship 2 (ADXC 2), Mubadala Arena.

21-23 January (Sunday-Tuesday): World of Coffee Dubai, Dubai World Trade Centre.

23-25 January (Tuesday-Thursday): The Unmanned Systems Exhibition (UMEX) and the Simulation and Training Exhibition (SimTEX), Abu Dhabi National Exhibition Centre (ADNEC), Abu Dhabi.

26-28 January (Friday-Sunday): Dubai Challenge Cup, Al Maktoum Stadium, Dubai.

29 January- 1 February: Arab Health, Dubai World Trade Centre.

FEBRUARY

1 February (Thursday): New amendments banning trucks weighing over 65 tonnes to take effect.

2-4 February (Friday-Sunday): Sharjah Classic Cars Festival.

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

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

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

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

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

MARCH

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

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

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

12 March (Tuesday): Start of Ramadan, public holiday.

APRIL

11 April (Thursday): End of Ramadan, public holiday.

12 April (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.

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

MAY

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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