Talabat to IPO on the DFM later this year?

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WHAT WE’RE TRACKING TODAY

THIS MORNING: NMDC Energy’s book building process kicks off + EGA, Brands for Less eye more expansion and acquisitions

Good morning, lovely people, and happy FRIDAY. We close out a week full of IPO news with… more IPO news — this time, from Delivery Hero’s Talabat, which could debut on the DFM in 4Q 2024.

WEATHER- Temperatures will hit 40°C in Dubai today, before cooling to an overnight low of 30°C. Meanwhile, in Abu Dhabi, the mercury will peak at 38°C, with clouds and some chance of rain.

UPDATES-

#1- Telegram founder Pavel Durov has been granted conditional bail following his arrest inParis, with a travel ban imposed pending further investigation, Wam reports. The UAE government is coordinating with French authorities and Durov’s representatives to offer assistance, Reuters reports, citing an anonymous UAE official.

#2- The Central Bank of the UAE’s (CBUAE) latest 1.1 bn AED-denominated T-Sukuk auction was 5.7x oversubscribed, pooling AED 6.32 bn in bids, Wam reports, citing the Finance Ministry. The May 2026 and May 2027 tranches saw strong demand, with the T-Sukuk sold at 0-9 bps over US treasuries.

Background: The CBUAE launches regular AED-denominated Shariah-compliant sukuk auctions in a bid to strengthen the local currency’s yield curve in capital markets. More information on the program is available here.

HAPPENING TODAY-

The subscription period for NMDC Energy’s IPO kicks off today, and wraps on 4 September. NMDC received approval earlier this week from the Securities and Commodities Authority and the ADX to list 23% of its engineering, procurement, and construction unit on the ADX in a AED 3.22 bn IPO — potentially making it the biggest IPO of the year.

WATCH THIS SPACE-

#1- EGA eyes global expansion with further acquisitions: Mubadala-backed Emirates Global Aluminium (EGA) is targeting further acquisitions in East Asia, Europe, the US, and Mexico after completing two transactions this year, CEO Abdulnasser Bin Kalban told Bloomberg. The Middle East’s largest aluminum producer aims to boost its production capacity by purchasing metal-recycling assets to meet rising demand for recycled metal products in the US and Europe. The acquisitions will also help EGA diversify its customer base and market segments away from China, where there is currently a slowdown in construction, Bin Kalban said.

ICYMI- EGA recently expanded into the US aluminum recycling market by acquiring an 80% stake in Minnesota-based Spectro Alloys. This follows EGA’s acquisition of 100% of Germany’s Leichtmetall Aluminum Giesserei from Leichtmetall Holding in May.

#2- Also eyeing expansion: Brands for Less. Dubai-based Brands for Less (BFL) plans to open new stores in the Gulf region amid heightened demand, drawing on support from its recent acquisition by US discount retailer TJX, BFL CEO and co-founder Toufic Kreidieh told Asharq Business (watch, runtime: 4:03). The firm will also expand its footprint in Southeast Asia, with its first store in Singapore set to open next month, followed by openings in Malaysia.

Egypt has proven to be a more difficult market for BFL to crack, Kreidieh said, adding that the company has faced obstacles in entering the Egyptian market, despite it having always been on its radar for its large size and regional importance. BFL will seek out expansion in Egypt once the current challenges are overcome, Kreidieh said.

ICYMI- TJX — which operates TJ Maxx and Marshalls — inked a definitive agreement to acquire a 35% stake in BFL for USD 360 mn (AED 1.3 bn) last week. The transaction is expected to close later in its fiscal year, which ends 1 February 2025.

Kreidieh said the stake sale was primarily to facilitate the exit of shares for himself and co-founder Yasser Baydoun, rather than for financial needs.

#3- We’re on track to get 6G before 2030: The Telecommunications Regulatory Authority (TDRA) plans to kick off operational testing for 6G networks in 2029 or 2030, despite not currently having sufficient research on the frequencies needed for the services, TDRA deputy director Mohammed Al Ramsi told CNBC Arabia in an interview. The authority expects to gather more clear data near 2027 and 2028, Al Ramsi said, adding that TDRA is now conducting high-speed testing within the 5G range to develop an advanced 5.5G network.

We knew this was coming: Earlier in April, the TDRA rolled out its roadmap for adopting 6G technology, aiming to adopt services UAE-wide before 2030. The adoption plan kicks off this year with the establishment of a committee tasked with conducting scientific research, and overseeing the development of technical standards and specifications for 6G.

DIPLOMACY-

South Africa has recalled Consul General Andrew Lebona from Dubai to Pretoria due to allegations of misconduct and security breaches, Khaleej Times reports. The move followed whistleblower claims about a visa fraud operation at the Dubai embassy, in which Lebona is alleged to have played a role by orchestrating a break-in at the embassy to enable the illegal sale of visas to UAE nationals for entry into South Africa. He is also accused of facilitating his son's unlawful acquisition of a diplomatic passport. South Africa’s foreign affairs ministry confirmed that the investigation is still in progress.

DATA POINTS-

#1- The Dubai Financial Services Authority recorded a 22% y-o-y increase in the amount of authorized firms in 1H 2024 amounting to a total of 837 DFSA-registered companies, it said in a statement. The number of registered wealth management entities increased 62% y-o-y rise during the six-month period. The Dubai International Financial Centre (DIFC) currently hosts 27 out of the 29 Global Systemically Important Banks (G-SIBs).

#2- Dubai secured the 28th spot, while Abu Dhabi was ranked 41st, in real estate firm JLL’s Global Real Estate Transparency Index(pdf). Both cities have made strides in transparency, JLL said, citing advancements in anti-money laundering legislation and increased access to information from both established and emerging market providers.

Government initiatives have helped boost transparency: Tech initiatives in Dubai such as the Real Estate Innovation Incubator and the Dubai PropTech Group, as well as more real estate oversight and efficiency through the Abu Dhabi Real Estate Center (ADREC) and the introduction of an AI-enabled BIM and planning review system, are all credited to have improved transparency.

THE BIG STORY ABROAD-

Politics is once again front and center on the front pages of the foreign press as US Vice President and presidential hopeful Kamala Harris edges out former US President Donald Trump in several polls — leading 45% to 41% in a Reuters/Ipsos poll and 48% to 47% in a separate Wall Street Journal poll. She also leads by two percentage points across battleground states, according to a Bloomberg News/Morning Consult poll.

Harris also had her first exclusive interview with CNN, where she said she would appoint a Republican in cabinet if elected and that her “values have not changed” since her 2020 presidential campaign.

IN THE BUSINESS PRESS- Nvidia and Apple are in talks to invest in ChatGPT maker OpenAI’s upcoming bn-USD round, which is set to give the company a valuation of more than USD 100 bn, the Wall Street Journal reports.

Meanwhile, closer to home: Israel and Hamas have agreed to three zoned three-day pauses starting Sunday to accommodate a polio vaccination run in Gaza following an outbreak of the disease. (Reuters | NY Times | CNN | BBC)

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Talabat to IPO on DFM in 4Q 2024

Delivery Hero gears up to list Talabat on DFM: German last-mile delivery firm Delivery Hero is planning to list Talabat’s shares on DFM in 4Q 2024, according to a press release (pdf). The firm said the IPO is still awaiting approval from the Securities and Commodities Authority’s (SCA).

What do we know? Delivery Hero said in a separate disclosure that the shares might be offered in a secondary sale on the exchange, allowing it to retain a majority stake post-sale. The German firm did not disclose the number of shares it will be floating or how much it is looking to raise.

Talabat’s gross merchandise value (GMV) climbed 29.2% y-o-y to EUR 5.91 bn in 1H 2024, representing 25% of Delivery Hero’s overall GMV, the German company said in its earnings release (pdf).

A play at boosting its share price? The German company’s share price has fallen 85% from its January 2021 peak as food delivery stocks took the brunt of a post-pandemic sell-off, Reuters reports. Jeffries analysts said the IPO could bring about a positive response from investors, and will help support its balance sheet after the sale of its Asian subsidiary foodpanda to Uber Eats.

The caveat? The IPO would also restrict access to the cashflow from its most profitable business unit, which it will need to fight off “intensified competition in South Korea,” Bloomberg Intelligence analysts Tatiana Lisitsina and Diana Gomes said.

REFRESHER- This would be the third market debut on the DFM in 2024, following the successful IPOs of Parkin, which raised AED 1.57 bn, and Spinneys, which raised AED 1.38 bn.

There’s more in the pipeline for the DFM, with construction firm Alec and tapping advisors for a planned IPO and Amanat Holdings looking to list either its education or healthcare unit, with reports that its healthcare unit could raise some USD 200 mn as soon as this year. Meanwhile, shisha producer Advanced Inhalation Rituals was said to be eyeing an IPO in 1H 2024. Hospitality group Five Holdings also tapped advisors for a potential IPO next year.

ICYMI- The UAE’s IPO pipeline is heating up, with the National Marine Dredging Company (NMDC) announcing earlier this week that it will list 23% of its shares — valued at AED 3.22 bn — in its unit, NMDC Energy, on the ADX by September after receiving approval from the SCA and ADX.

Invictus to acquire South African flour milling firm

Invictus snaps up South African flour miller: Food and beverage giant Ghitha’s trading subsidiary, Invictus Investment inked an agreement to acquire an unnamed South Africa-based flour milling company, pending regulatory approvals, according to a press release (pdf). The details of the agreement, including the financial terms, have not been disclosed.

REMEMBER- Earlier this month, Invictus’ board greenlit a plan to acquire a majority stake in an agro-food manufacturer in Africa. The company was set to submit a binding offer to close the transaction.

What they said: “The acquisition contributes to our long-term strategy to expand our agro-food business in high-potential African markets, develop new strategic partnerships, and build on our operational capabilities in the midstream and downstream segments. It also brings us a step closer to our goal of becoming a fully integrated agro-food enterprise in the Middle East and Africa,” CEO Amir Daoud Abdellatif said.

ICYMI- Invictus is ramping up its investments in Africa: The company recently acquired a 60% stake in Moroccan agriculture trader Graderco, as it looks to ramp up its acquisitions and JVs in North and East Africa, including in Morocco, Algeria, Kenya, Tanzania, and Mozambique.

OTHER M&A NEWS-

e& enterprise finalizes the acquisition of GlassHouse: Emirati telco e& subsidiary e& enterprise completed the acquisition of 100% of Turkey-based cloud services provider GlassHouse for USD 60 mn, according to an ADX disclosure (pdf). The acquisition marks e&’s entry into Turkey’s IT and cloud services market, and will see it leverage GlassHouse’s services — including data backup, business continuity, managed cloud, and SAP Infrastructure — in the UAE and Saudi Arabia.

Remember: The Emirati firm inked a binding agreement to acquire GlassHouse from Mediterra Capital and an individual shareholder in June, with the transaction carried out through debt financing.

This acquisition is the first milestone of an expansion plan: The company considers this transaction as a gateway for more investment opportunities across the region, including the UAE, Saudi Arabia, and Turkey, the disclosure said.

Next steps: The financials of the Turkish company will be consolidated into e&’s financials starting 1 September.

Crypto investors can soon withdraw and deposit AED, USD, and EUR on Crypto.com

Crypto.com to offer fiat services from Dubai: Cryptocurrency exchange Crypto.com will allow clients to withdraw and deposit AED, USD, and EUR onto its platform in partnership with Standard Chartered from their regional hub in Dubai starting next month, it said in a statement. The services will be offered to UAE retail investors first, then progressively expanded across 90 countries, it added.

Crypto.com is the first exchange to offer fiat services globally in the three currencies, the statement said. The offering will allow investors to buy, sell and trade more than 250 cryptocurrencies.

What will Standard Chartered do? The bank will provide Crypto.com with the banking and payment processing infrastructure to process transactions on the platform, the statement said.

Background: Crypto.com became one of the first crypto platforms to receive full operational approval from Dubai’s Virtual Assets Regulatory Authority (VARA) in April.

REMEMBER- The Dubai Financial Services Authority recently eased regulations around unrecognized crypto tokens and stablecoins, while the Central Bank of the UAE’s board greenlit the introduction of a licensing and regulatory system for stable cryptocurrencies.

Dubai companies saw net income rise 30.9% y-o-y in 2Q 2024

Dubai-listed companies logged the second-largest y-o-y bottom line growth in the GCC in 2Q 2024, totaling USD 6.7 bn, up 30.9% y-o-y, according to a Kamco Invest GCC Corporate Earnings report (pdf). Bahrain led the way with the biggest bottom line growth in the region.

Growth was largely attributed to accounting adjustments and restructuring efforts by Dubai-based contractor Drake and Scull. The company reported a net income of USD 1 bn in 2Q 2024, a significant turnaround from a USD 11.8 mn net loss in the second quarter of 2023. This contributed to a 68.3% y-o-y increase in the capital goods sector's bottom line across the GCC.

The banking, capital goods, and telecom sectors were key contributors to the emirate’s profitability, accounting for 83.1% of Dubai’s aggregate earnings, with banks leading the way with a USD 3.3 bn aggregate net income. The emirate’s capital goods sector saw earnings jump up nearly 11x y-o-y in 2Q to a record USD 1.2 bn, supported by DSI’s restructuring, while its real estate sector saw profitability rise 29% y-o-y to USD 1.1 bn, with Emaar Properties driving growth with a 39% y-o-y increase in net income to USD 658.7 mn.

Meanwhile in neighboring Abu Dhabi, ADX-listed companies posted a 4.7% y-o-y increase in net income, hitting USD 8.3 bn in 2Q. Growth came on the back of a 20.7% y-o-y increase in profitability in the energy sector to USD 2.2 bn, with Adnoc Gas reporting USD 1.2 bn in net earnings for the quarter.

Other sectors to thank: Abu Dhabi’s transportation sector saw net income more than double y-o-y in 2Q to USD 504.5 mn, on the back of Abu Dhabi Aviation’s return to profitability, with USD 190.9 mn booked in net earnings. The banking sector delivered an aggregate bottom line of USD 2.5 bn, up 12.7% y-o-y, supported by FAB and Abu Dhabi Commercial Bank.

In 1H 2024, Dubai logged a 20% y-o-y increase in net income, while neighboring Abu Dhabi saw net income decrease 2.2% y-o-y.

THE REGIONAL PICTURE-

Aggregate net income for GCC-listed companies grew 5.7% y-o-y to USD 60.7 bn in 2Q, according to the report. Companies listed on Dubai and Bahrain bourses led the growth.

The energy sector saw profitability fall 0.9% y-o-y, driven by a 2.5% y-o-y drop in net income for Saudi Aramco overshadowing gains in other companies within the sector.

In 1H 2024, GCC-listed companies’ profitability remained relatively flat, increasing 0.1% y-o-y to USD 116.9 bn. Growth was driven by improved performance across the banking, telecom, and capital goods sectors, and hindered by declines in the energy and F&B sectors.

Verofax secures USD 3 mn bridge funding from multiple investors

Abu Dhabi-based virtual and augmented reality services provider Verofax secured USD 3 mn in a bridge funding round, Wamda reports. The investment was led by King Abdullah University for Science and Technology, Plug & Play Tech Center, Navig8 Group, and Trove Capital UK, while Jawa Brothers Advisory, Alzamil Pedco CVC, and Tracecore CVC also participated.

Where the money’s going: The funding will be used to scale the startup’s projects in the Middle East and EU, including AI-powered guides for retail, tourism, and sports firms in the GCC and sports fan guides in the EU and North America.

About the startup: Founded in 2018 by Wassim Merheby (LinkedIn) and Jamil Zablah (LinkedIn), Verofax uses patented Web3 technologies — including augmented reality, blockchain, and AI — to help brands in retail, tourism, and sports sponsor marketing efforts and ramp up consumer loyalty. The startup has reeled in over USD 3 mn in sales for Fortune 100 companies across 50 countries, with its clientele including Anheuser Busch and Emirates Airlines.

Background: The startup secured a USD 1.5 mn pre-series A round in 2022 from Benson Oak Ventures, with 500 Global, Wami Capital, and Vernalis Capital.

EGA saw its net income fall in 1H 2024, while Depa turned to the black

State-owned aluminum producer Emirates Global Aluminum’s (EGA) net income fell 6% y-o-y to AED 1.84 bn in 1H 2024, on the back of the impact of the corporate tax, it said in a statement. Meanwhile, revenues fell 5.48% y-o-y to AED 13.98 bn during the period, with sales of cast metal inching down 1.5% y-o-y to 1.3 mn tonnes, while production of hot metal increased despite the impact of the heavy rains in April.

Interior design and construction firm Depa turned to the black in 1H 2024, logging a bottom line of AED 46.3 mn, compared to net loss of AED 49.7 mn in 1H 2023, according to an earnings release (pdf). Revenues grew 34.2% y-o-y to AED 623 mn, driven by strong growth in Saudi Arabia. Its backlog also grew 13% y-o-y to AED 1.69 bn.

Alvarez and Marsal adds two bankers to its team in banking push

Management consulting firm Alvarez & Marsal is expanding work on banking and M&A from its Dubai office with two Barclays hires, Bloomberg reports. Quentin Mulet-Marquis (LinkedIn), who led Barclays’ financial institutions group (FIG) in the Middle East, Turkey, and Africa, and Jeremie Benhaim (LinkedIn), who most recently served as vice president in the same department, are set to join A&M in the coming months.

The hires coincide with a surge in banking consolidation in the Gulf region, as lenders pursue mergers to scale their operations.

A&M, most known for its restructuring work, tapped a former Bank of America and Morgan Stanley banker earlier this year to head its new financial services industry segment in Europe, Middle East and Africa.

Gulf Investment House accepted the resignation of its direct investment department’s assistant VP, Nourah Sulaiman Al Shehab, effective yesterday, it said in an ADX disclosure (pdf). Al Shehab cited personal reasons as the reason behind her departure.

Real estate still in focus + a look at DFM’s partnership with Shenzhen

Real estate is still getting play: Bloomberg interviews Dubai developer Binghatti Chairman Muhammad Binghatti about the developer’s ambitious development plans. The firm is set to invest USD 1 bn on construction for the world’s largest tower in the next 18 months, alongside some 9k homes already in the works and over 12k homes planned over the next two years, he said in the interview.

Binghatti sees heightened demand from wealthy Turkish and Egyptian buyers, which he says has increased 20% y-o-y, driven by currency instability in Turkey and Egypt, as well as capital gains in Dubai over the past few years.

The Financial Times also picked up news of DFM partnering with China’s Shenzhen Stock Exchange to cooperate on cross-border investments — including dual listings, ETFs, and fixed-income instruments. The move comes against the backdrop of Chinese investors’ efforts to “circumnavigate sluggish mainland stocks and take advantage of Beijing’s deeper ties in the Middle East,” the salmon-colored paper wrote.

Empower to develop second Jumeirah cooling plant

ENERGY-

#1- Emirates Central Cooling Systems (Empower) will develop a second district cooling plant with a capacity of 37k refrigeration tons (RT) in Jumeirah, according to a press release (pdf). The UAE firm awarded a contract for the design of the plant and construction is expected to kick off in 1Q 2025.

What we know: The new facility will service residential and commercial areas, hotels, and other facilities within the 802 hectare Jumeirah Village development, the statement notes. Empower’s first 49k refrigeration tons (RT) Jumeirah plant serves 114 buildings. The company awarded several contracts for the development of a first district cooling plant in October 2023.

Part of a bigger plan for Jumeirah Village: Empower intends to establish a total of six district cooling plants to produce a total of 256k RT, the statement notes.

#2- Tabreed eligible for carbon trading with Verified Carbon Standard certification: UAE district cooling firm Tabreed has received the Verified Carbon Standard (VCS) for one of its Abu Dhabi plants from US-based voluntary carbon credit certification body Verra, making it eligible for carbon trading, according to a press release. Verra conducted a year-long assessment of the facility to determine whether its operations bring environmental benefits, determining that the facility has a capacity of 28k refrigeration tonnes and cuts 19k tons of emissions reductions per annum.

A first for district cooling: Tabreed can now trade voluntary carbon credits as an “emissions preventer” marking the first time a district cooling company has earned the title. Tabreed can now apply for the same methodology that earned its verification to other facilities within its portfolio.

#3- RAKPA inks agreement with energy ministry to advance sustainable energy efforts: Ras Al Khaimah Petroleum Authority (RAKPA) inked an MoU with the Energy and Infrastructure Ministry for collaboration on the transition to sustainable energy, according to a ministry statement. The agreement will see them cooperate on sharing geological and hydrogeological data, researching natural hydrogen, exploring carbon capture through mineralization, and assessing geothermal energy potential in Ras Al Khaimah and the UAE.

REAL ESTATE-

Azizi Developments + Danfoss partner across various Dubai projects: UAE’s private developer Azizi Developments tapped heating and cooling systems provider Danfoss,for the supply of BTU meters, which measure heating and cooling systems’ energy generation, according to a press release. The BTU meters will be used across Azizi’s projects in Dubai, including Azizi Venice, Riviera, Azizi Vista, Azizi Central, Azizi Grand, and Creek Views III. The exact number of BTUs expected to be delivered and the value of the agreement were not disclosed.

BUSINESS-

#1- DMCC, Bogota chamber sign MoU: The Dubai Multi Commodities Centre (DMCC) inked an MoU with the Bogota Chamber of Commerce to enhance economic information exchange and business growth through targeted support and event promotion, according to a Dubai Media Office statement.

This move coincides with a 21% increase in Colombian companies joining DMCC this year, bringing the total to 23. DMCC is now home to over 150 companies from across South America. DMCC's also recently held a Made For Trade Live roadshow in Colombia, which encouraged businesses to expand to Dubai.

#2- Dubai World Trade Center’s event management unit DXB Live will open a new office in Riyadh, Saudi Arabia this year, with plans to expand further in the GCC, Europe, the Americas, and the Middle East, Wam quotes Senior Vice President Khalid Al Hammadi as saying. In 1H 2024, DXB Live organized events in countries including Egypt, Morocco, the US, Germany, and China.

STARTUPS-

Google Cloud will offer mentorship to startups in Dubai International Financial Center’s AI cluster Dubai AI Campus under a new partnership between the two, according to a press release. Google Cloud will offer programs like the Gen AI Startup School and Google for Startups Cloud Program to support early-stage startups with their use of Google Cloud.

TELECOMS-

du, Paltel to streamline UAE-Palestine connectivity: Telecom company du and the Palestine Telecommunications Company (Paltel) inked an agreement to establish an express link between the UAE and Palestine in a bid to improve internet connectivity and speed, according to a press release picked up by Zawya.

Companies look to next year for IPO plans amid market uncertainty

The IPO market is struggling this year, with several companies postponing their plans to next year due to volatility and uncertainty, the Wall Street Journal cites bankers, lawyers and corporate executives as saying.

Expectations of a slowdown in September — usually a busy month for IPOs — points to underlying concerns among investors that volatility could continue through the end of the year amid the upcoming US presidential election in November and potential interest rate cuts by the Federal Reserve.

By the numbers: IPOs in the US have raised some USD 25 bn this year, faring well below the USD 55 bn annual average over the past decade. Both Chinese autonomous-driving technology company WeRide and ticket-resale platform StubHub pushed back their IPO plans, while AI chip maker Cerebras is among those considering pushing its IPO to late 2024 or holding off until next year.

Market turbulence has dampened investor confidence, with many companies that went public in the past two and a half years now trading below their IPO prices, with the exception of Reddit's successful IPO earlier in March, up more than 70% from its USD 34 IPO price.

There’s still hope for smaller companies: The Russell 2000 index of smaller companies has outperformed the S&P 500 by more than five percentage points since late June. “Since the majority of IPOs are for relatively small companies — under USD 5 bn in value at the time of their offerings — the recent gains for this group is encouraging,” the WSJ said.

The hometown angle: We have a strong pipeline here at home (read: the IPO Watch section, above), with performance so far this year somewhat mixed. Both Parkin and Spinneys, which debuted on the DFM earlier this year, saw shares jump on their trading debut — with Parkin’s shares up more than 30% YTD, and Spinneys’ shares down 11.2% YTD.

MARKETS THIS MORNING-

Asian markets are up in trading on the back of positive US economic data, and despite mixed labor and inflation data from Japan. Japan’s Nikkei is up 0.46%, while the Topix climbed 0.59% and South Korea’s Kospi gained 0.7%. S&P 500 futures are flatlining, with investors awaiting inflation data from the personal consumption expenditures price index.

ADX	9,233	-0.6% (YTD: -3.6%)
DFM	4,334	+0.2% (YTD: +6.8%)
Nasdaq Dubai UAE20	3,741	+0.2% (YTD: -2.6%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	4.8% o/n	4.5% 1 yr
TASI	12,145	+0.2% (YTD: +1.5%)
EGX30	30,774	+0.2% (YTD: +23.6%)
S&P 500	5,592	0.0% (YTD: +17.2%)
FTSE 100	8,380	+0.4% (YTD: +8.36%)
Euro Stoxx 50	4,966	+1.1% (YTD: 9.8%)
Brent crude	USD 79.94	+1.6%
Natural gas (Nymex)	USD 2.14	+0.2%
Gold	USD 2,552.60	-0.3%
BTC	USD 60,582.12	+3.48% (YTD: +43.3%)

THE CLOSING BELL-

The ADX fell 0.6% yesterday on turnover of AED 910.9 mn. The index is down 3.6% YTD.

In the green: Ras Al Khaimah Co. for White Cement and Construction Materials (+7.8%), Abu Dhabi National Building Materials. (+4.4%) and Ooredoo (+4.4%).

In the red: Al Wathba National Insurance Co (-7.5%), Union Ins. (-7.1%) and Gulf Cement (-4.5%).

Over on the DFM, the index rose 0.2% on turnover of 306.0 mn. Meanwhile, Nasdaq Dubai rose 0.2%.

CORPORATE ACTIONS-

Dubai-based investment firm Amanat Holdings' board proposed a cash dividend distribution of AED 75 mn for 1H 2024, representing 3% of the company's share capital, according to a DFM disclosure (pdf). The distribution will be decided during the upcoming general assembly meeting on 18 September.

UAE to fund water restoration projects in Gaza

UAE to restore + operate damaged water networks in northern Gaza: The UAE inked an MoU to provide the northern region of Gaza with urgent humanitarian aid and funding to restore water wells and reservoirs, Wam reports. Some 60 water facilities in the region have been affected by the war, including wells destroyed, desalination plants out of operation, main water networks damaged, and water contamination.

The move 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.

ALSO- Dubai Police helped the Netherlands inaugurate its first smart police station — dubbed SPS Utrecht — following discussions with Dutch police to ramp up cooperation and swap expertise, according to the Dubai Media Office. The Netherlands is the second country to adopt Dubai Police’s smart police station concept, following Serbia in 2023.

My Morning Routine: Faizal Amod, CFO of E7 Group

Faizal Amod, CFO of E7 Group: Each week, My Morning Routine looks at how a successful member of the community starts their day — and then throws in a couple of random business questions just for fun. Speaking to us this week is Faizal Amod (LinkedIn), the CFO of E7 Group. Edited excerpts from our conversation:

I don't define myself by my title or job description. First and foremost, I'm a father, brother, and son. If the conversation shifts to what I do, I’ll mention that I'm the CFO of a listed company. If the conversation turns to my background, I’d say I'm a qualified chartered accountant. I'd been the CFO for a listed company in Abu Dhabi for about 13 years, and now I’m with E7 Group, which we listed through the UAE’s first de-spac listing in 2023.

Our transition to the public markets has been very smooth, because even prior to our listing, we operated with a strong governance framework — with the structure and strategic rigor expected of listed companies. We are pleased with the progress we have made on our strategy so far this year, as evidenced in our 1H 2024 performance.

Our de-spac listing was a first for the UAE and was supportive of Abu Dhabi’s ambition to expand its dynamic capital markets, while also accelerating our growth strategy and driving our ambition to increase market share by leveraging our brand, customer base and robust ecosystem.

E7 comprises four different units [across commercial printing, sustainable packaging, security solutions, and logistics]. Locally, our security solutions business prints passports, bank cards, telecom cards and national IDs and delivers them, providing the full spectrum of services. For school textbooks, it's a similar situation — we print and deliver more than 20 mn textbooks to UAE schools every year.

What sets us apart is that we are based in the UAE, a country highly regarded for security and innovation. When it comes to passports and national ID printing, there are maybe half a dozen companies around the world that do this, and we are one of the key players in this space. Having the benefit of being UAE-based gives us the opportunity to be able to target many more countries with our offerings.

We take pride in offering Abu Dhabi-made products to the world, with sales to about 25 countries globally across the Middle East, Africa, Central and East Asia, and Latin America. Our export portfolio includes passports, national IDs, driving licenses, bank cards, telecom cards, textbooks, exam papers, and even magazines through our distribution arm. On the packaging side, we've also seen sales in Europe.

We see significant growth potential in security solutions, particularly in system integration and biometrics, and in sustainable packaging, both by expanding the value chain in which we operate and by taking our solutions to more countries.

I see growth potential in packaging because it's relatively new for us. But I'm particularly excited about the security segment, where I believe there's a potential growth opportunity. It's a segment that relies heavily on trust, and customer trust is paramount. We have all the necessary certifications at the highest level as far as security is concerned.

As part of our strategic expansion plans, we have recently announced a AED 182 mn investment in our security business. This investment will help boost our passport production capacity, in line with our goal to enter new markets, and help us enter the digital tax stamps segment, an additional product that we'll add to our offering in 2025. This investment will allow us to produce stamps here and supply to the world.

E7 is eyeing inorganic expansion, hence we’re exploring potential acquisitions, primarily in the security sector as well as packaging. In packaging, we're focusing on sustainable packaging and niche, higher-value segments like pharma and the beauty sector.

I believe there is still a great opportunity in textbook printing. Many countries have tried to go digital but have moved back to physical textbooks, so there's still huge demand for textbooks both locally and internationally. We see the solution we offer locally as something that can be adopted and used in other parts of the world. We are targeting several countries in Africa to explore these opportunities. Specifically, we're looking at Central Africa as a region with good growth potential for the traditional text printing sector.

My day at work is mostly just back-to-back meetings. Sometimes it’s meetings with teams, or one-on-one discussions that require decision-making. Often, I have to be fully briefed on some issues before offering my perspective. Other times, I'll go ahead and accept subordinates’ recommendations.

The one constant about my workday is that whatever I plan to do doesn’t happen. I start the day with a list of tasks to accomplish, but by the end of the day, I look at the list to see I've managed to tick off one or two items out of half a dozen.

[My morning routine involves] reaching for my phone as soon as the alarm goes off around 6:30 to 7am. I immediately start checking any messages or emails that came in overnight. I have an X feed that I follow to catch up on financial news across the world. Depending on the length of the feed that morning, I might read the feed while doing light cardio on my exercise bike.

I try to meditate but I haven't been very successful, because my mind drifts a lot and I have too many things on in my mind. There’s a guided meditation app I use which starts with a short, 10-minute session. What’s good about it is that it helps bring your thoughts back if they wander, so it’s almost like the guide is reading my mind.

My day at the office starts around 9am and typically ends around 7:30pm, though often it extends later, but very rarely ends earlier. Occasionally when my day runs later, I stay and end it with a game of table tennis with some of my team members at the office. It's a routine we started doing a few months ago, so at least once a week I join them to play.

I don’t disconnect from work. The reality of being a CFO is that on evenings I still have work to do even if I’m back home, either with the board or a member of my team. Almost every night there will be something work-related to finish in the evening, or the CEO may call me in the evening.

I try to hang out with my wife a lot now that our two grown kids — a son and a daughter — are out of the house. We enjoy going out and eating out on the weekends. We also do activities together, like walking and kayaking when the weather is good. Sometimes I go shopping with her, which I find fun.

I don’t watch TV regularly, but I do enjoy watching series from time to time. I really enjoyed Succession. I also like to watch some of the popular comedies like Seinfeld, Friends, and Two and a Half Men. Recently, I watched Rules of Engagement, which I really enjoyed. Sometimes I just watch short clips of these shows on YouTube in the evening.

My favorite genre to read is non-fiction, focusing on business, finance, and self-help. Recently, I read Atomic Habits, which discusses how small changes in habits have incremental benefits. I also enjoyed Ikigai, which documents the lives of people on a Japanese island who live beyond 100 years.

The best piece of advice I’ve read is that what others think of me is none of my business. I can’t recall where I came across it, but I think it’s important. Another piece of advice I follow is not holding grudges or resentment, like what Nelson Mandela said: “Resentment is like drinking poison and then hoping it will kill your enemies.”

CALENDAR

SEPTEMBER

31 August - 8 September (Saturday-Sunday): Abu Dhabi International Hunting and Equestrian Exhibition (ADIHEX), Adnec Centre, Abu Dhabi.

4-5 September (Wednesday-Thursday): 2024 International Government Communication Forum, Expo Centre Sharjah, Sharjah.

5 September (Thursday): du’s Envision, Atlantis the Royal, Dubai.

5 September (Thursday): Deadline to apply for the sixth edition of Access Sharjah Challenge.

5 September (Thursday): Deadline to apply for Dubai Future Academy’s FEEL: A Disruptive Futures Program.

7-8 September (Saturday-Sunday): Binous Classic Bodybuilding Championship, DWTC, Dubai.

7-13 September (Saturday-Friday): Makers’ Month, Al Quoz Creative District, Dubai.

7-10 October (Monday-Thursday): The World Air Taxi Congress, The Grand Hyatt Dubai, Dubai.

9-12 September (Monday-Thursday): The annual EFG Hermes London Conference.

10-11 September (Tuesday-Wednesday): MENA PPP forum, Jumeirah Emirates Towers, Dubai.

11-12 September (Wednesday-Thursday): Dubai AI & Web3 Festival, Madinat Jumeirah, Dubai.

11-12 September (Wednesday-Thursday): Gitex Digi_Health 5.0 conference, Singapore.

16 September (Monday): HKMA–DFSA Climate Finance Conference, Hong Kong.

16-18 September (Monday-Wednesday): World Utilities Congress, Abu Dhabi.

16-20 September (Monday- Friday): Intelligent Transport Systems World Congress 2024, Dubai.

17-18 September (Tuesday-Wednesday): AI in oil and gas conference, Abu Dhabi.

18-19 September (Wednesday-Thursday): Sharjah Investment Forum, Jawaher Reception and Convention Centre, Sharjah.

15-19 September (Sunday-Thursday): Loop Beyond Borders, Abu Dhabi.

19-20 September (Thursday-Friday): Healthcare Leaders Summit 2024, St. Regis Saadiyat Island Resort, Abu Dhabi.

23-25 September (Monday-Wednesday): WorldFreezonesOrganization’s Annual International Conference and Exhibition, Dubai.

24-26 September (Tuesday-Thursday): Careers UAE 2024, Dubai World Trade Centre, Dubai.

25-26 September (Wednesday-Thursday): Green Steel Summit, Dubai, UAE.

25-26 September (Wednesday-Thursday): Global Aerospace Summit, Abu Dhabi, UAE.

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

30 September (Monday): Dubai Podfest, World Trade Center, Dubai.

OCTOBER

1-3 October (Tuesday-Thursday): Water, Energy and Environment Technology Exhibition, Dubai.

2-3 October (Wednesday-Thursday): The World Green Economy Summit, World Trade Center Dubai.

2-3 October (Wednesday-Thursday): MENA District Cooling Projects & MENA Cool Forum, Grand Hyatt Dubai, Dubai Healthcare City, Dubai.

7-8 October (Monday-Tuesday): Forex expo, World Trade Center, Dubai.

8-9 October (Tuesday-Wednesday)): Global Trade and Supply Chain Summit, Dubai.

8-10 October (Tuesday-Thursday): The Global Rail Transpo[rt Infrastructure Exhibition and Conference(Global Rail), Abu Dhabi.

14-18 October (Monday-Friday): Gitex Global, Dubai World Trade Centre and Dubai Harbour.

13-16 October (Sunday-Wednesday): Expand North Star, Dubai Harbour.

14-18 October (Monday-Friday): IEEE/RSJ International Conference on Intelligent Robots and Systems, Adnec Centre, Abu Dhabi.

14 October (Monday): The Smart Cities MENA Summit, Dubai.

15 October (Tuesday): Deadline for the European Commission to make a decision on its probe into e&’s acquisition of PPF’s Eastern European assets.

21-22 October (Monday-Tuesday): Port Development MEA Forum, Dubai.

21-22 October (Monday-Tuesday): Roads, Bridges, Tunnels MENA Conference, Dubai.

21-22 October (Monday-Tuesday): The Alternative Investment Summit, Dubai.

24-27 October (Thursday-Sunday): International Sports Medicine Conference, Dubai.

26 October (Saturday): UFC 308: TOPURIA vs HOLLOWAY, Etihad Arena, Abu Dhabi.

26-27 October (Saturday-Sunday): International Conference on Tourism, Transport, and Logistics, Dubai.

28-29 October (Monday-Tuesday): MENA Climate Proof Forum, Dubai.

29 October-2 November (Tuesday-Saturday): Abu Dhabi Early Childhood Week, Abu Dhabi.

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

30 October (Wednesday): Connected Construction Conference, Museum of the Future, Dubai.

NOVEMBER

3-10 November (Sunday-Sunday): Dubai Premier Padel P1, Dubai Dutyfree Tennis Stadium, Dubai.

4-7 November (Monday-Thursday): Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC), Abu Dhabi.

4-7 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi.

4-7 November (Monday-Thursday): ADIPEC Decarbonisation Accelerator, Abu Dhabi.

6 November (Friday): World Finance Forum, Dubai.

11 November (Monday): Dubai Diamond Conference, Jafza One Convention Centre, Dubai.

11-12 November (Monday-Tuesday): META Cinema Forum, Dubai.

18-20 November (Monday-Wednesday): Fastmarkets Middle East Iron & Steel 2024, Dubai.

19-20 November (Tuesday-Wednesday): Dubai Future Forum.

20-22 November (Wednesday-Friday): Xpanse Abu Dhabi, Adnec Centre, Abu Dhabi

22-23 November (Friday-Saturday): Global Meet on Electronics & Electrical Engineering (GMEEE), Dubai.

23 November (Saturday): Wireless Festival Middle East, Etihad Park, Abu Dhabi.

26-27 November (Tuesday-Wednesday) Global Food Security Summit, Adnec Centre Abu Dhabi.

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

Signposted to happen ahead of ADIPEC:

Changemakers Majlis, Abu Dhabi.

DECEMBER

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

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

8-12 December (Sunday-Thursday): International Desalination and Reuse Association World Congress, Adnec Centre Abu Dhabi.

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

9-12 December (Monday-ThursdayTuesday): Abu Dhabi Finance Week, Abu Dhabi.

10-12 December (Tuesday-Thursday): Middle East Investor Relations Association (MEIRA Conference), Conrad Abu Dhabi Etihad Towers Hotel, Abu Dhabi.

10-12 December (Tuesday-Thursday): The Middle East and North Africa Business Aviation Association Show, Al Maktoum International Airport, Dubai.

11-13 December (Wednesday-Friday): European-Arab Medical Congress, Abu Dhabi.

14-21 December (Saturday-Saturday): World Schools Festival, Abu Dhabi

Signposted to happen sometime in December:

UAE-China Summit, Abu Dhabi.

JANUARY 2025

1 January (Wednesday): ADGM to slash licensing fees for retail and non-financial firms, and hike fees for finance firms.

14-16 January (Tuesday-Thursday): World Energy Summit, Abu Dhabi.

FEBRUARY 2025

2-3 February (Sunday-Monday): L’Etape Dubai cycling race, Dubai.

24-25 February (Monday-Tuesday): 3rd World Passenger Experience Forum, Dubai.

24-26 February (Monday-Wednesday): Connecting Hydrogen MENA, Dubai.

Signposted to happen sometime in 1Q 2025:

The first eight fronds of the Palm Jebel Ali will be site-ready, allowing for the commencement of villa infrastructure and civil works.

APRIL 2025

6-11 April (Sunday-Friday): Geo-Spatial Week 2025, Dubai.

Signposted to happen sometime in April:

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

MAY 2025

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

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

JUNE 2025

3-4 June (Tuesday-Wednesday): Make-A-Wish International’s Global Wish summit, Abu Dhabi.

OCTOBER 2025

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

Signposted to happen sometime in 2025:

TBD: The Middle East Electric Vehicle Show, Expo Center Sharjah.
TBD: e& will complete Adnoc’s private 5G network.

Signposted to happen sometime in the fall of 2025:

2025 Games of the Future, Dubai.

Signposted to happen sometime in 2026:

The UAE to host the Arab Competition Forum

Signposted to happen sometime in 2028:

Abu Dhabi to host the Chess Olympiad.

Signposted to happen sometime in 2029:

Dubai to host the International Conference on Computer Vision.

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