UAE eyes more African trade with economic partnership with Mauritius

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WHAT WE’RE TRACKING TODAY

THIS MORNING: Economy Minister Abdulla bin Touq Al Marri is headed to India + Private consumption growth to moderate this year –Emirates NBD

Good morning, lovely people. We have another busy issue for you this morning, filled with M&A updates, data on the country’s property market in 1H, and a big economic partnership agreement inked with Mauritius — the first agreement of its kind the UAE inks with an African country.

Key M&A updates leading the news well today: Mubadala Capital just acquired a stake in stroller manufacturer Buggaboo, while Emirates Driving acquired a stake in Excellence Driving Center’s parent company.

WEATHER- The mercury peaks at 40°C today in Dubai — though it feels much hotter — with an overnight low of 36°C. Abu Dhabi will see a high of 38°C, and an overnight low of 33°C.

UPDATES-

#1- Adia-led consortium granted due diligence for possible Hargreaves Lansdown takeover: A consortium led by the Abu Dhabi Investment Authority was granted due diligence by British investment platform Hargreaves Lansdown, which decided it will engage with the consortium following a revised takeover bid submitted late June, according to a London Stock Exchange filing (pdf). The revised takeover bid — which was priced at GBP 11.40 per share, and includes a GBP 0.30 per share dividend that can be reinvested — was the consortium’s third following several rejections. Hargreaves’ board said at the time it was willing to recommend the proposal.

Hargreaves’ board of directors extended the deadline for bidding to 5 August to allow time for the consortium to finalize details like the structure of the acquisition, a source close to the matter told the Financial Times.

The caveat: Investors have raised concerns over the fairness of the proposed takeover for Hargreaves’ shareholders, the FT writes. The main sticking point is the weeding out of funds that will be unable to retain their stakes in Hargreaves following its delisting from the LSE, according to FT’s sources.

#2- More bids are in for the Telegraph: At least seven bids — including from Belgium’s Mediahuis, UK media groups National World and News UK, and British investors Lord Maurice Saatchi and Paul Marshall — were submitted on Friday to buy out the Telegraph and Spectator from Abu Dhabi-backed RedBird IMI, the Financial Times reports, citing people close to the sale process. Some 20 parties showed interest in the transaction, with some after both papers and others eyeing only one.

Other alternatives? RedBird could also move to buy out IMI and buy the papers itself if the bids are too low, the FT writes. Former Tory Chancellor Nadhim Zahawi is also reportedly preparing a GBP 600 mn bid for the papers, Sky News reported.

REMEMBER- Abu Dhabi-backed RedBird IMI formally withdrew its bid to acquire British papers, the Telegraph and Spectator, following months of opposition from the UK government. RedBird sought out first-round bids by 19 July, aiming to sell the papers to recoup the GBP 600 mn invested last year to acquire the assets. This is the second time RedBird IMI receives bids for the papers, after it launched an auction in April.

What’s next? Round two of the process is expected to commence in September, likely extending the sale into 4Q 2024. Investment banking advisers Robey Warshaw and Raine are analyzing the bids.

#3- Ardent is live on the New York Stock Exchange: US hospital operator Ardent Health Services, in which Healthcare giant PureHealth holds a 26.05% stake, successfully wrapped its IPO and is now trading on the New York Stock Exchange, the hospital operator said in a bourse filing (pdf). The company had been expecting a capital boost of up to USD 800 mn from the IPO, but the IPO was later downsized, with Ardent Health pricing it below the targeted range and raising around USD 192 mn, Reuters reports. The company sold some 12 mn shares at USD 16 each, valuing it at approximately USD 2.3 bn. Shares ended roughly flat on its debut.

Background: The IHC healthcare subsidiary acquired the minority stake in a transaction valued at AED 1.8 bn in May 2023.

PUBLIC SERVICE ANNOUNCEMENTs-

#1- Abu Dhabi citizens can now exchange their granted residential lands for available lands managed by the Abu Dhabi Housing Authority through its Iskan Abu Dhabi Application, according to a statement. To be eligible for the exchange, the plots must be undeveloped and undivided, provided that neither party receives any financial compensation from the exchange.

#2- The UAE will roll out a health ins. platform for tourist visas, offering emergency health coverage for visitors, according to a statement by the Federal Authority for Identity, Citizenship, and Customs. The platform will allow tourists to pick from a roster of different providers, director-general of the authority, Suhail Al Khaili, told Khaleej Times.

HAPPENING TODAY-

Economy Minister Abdulla bin Touq Al Marri is headed to India, leading a high-level delegation to explore ways to boost economic cooperation between the two countries, Wam reports. Discussions will focus on establishing new partnerships in the areas of logistics, advanced industries, entrepreneurship, SMEs, environment, and investment across government and private sectors.

A new round of Investopia Global Talks will be held in Chennai, in southern India, in tandem with the visit, with the participation of over 300 investors, entrepreneurs, and economic experts from India and UAE.

WATCH THIS SPACE-

#1- IHC-Ray Dalio partnership kicked further down the road: Abu Dhabi-based state-owned conglomerate IHC and hedge fund mogul Ray Dalio’s planned investment firm partnership has been delayed further due to legal setbacks related to Dalio exiting from his USD 160 bn asset management firm, Bridgewater Associates, Bloomberg reports, citing people in the know. His exit has sparked concerns that Dalio will use Bridgewater’s intellectual property in the potential tie-up despite inking a non-compete agreement.

Background: The partnership — initially set to launch last year — was set to see the Ray Dalio Family Office and IHC establish an asset management arm for AI giant G42 in Abu Dhabi Global Market, Bloomberg said. Dalio set up a family office in Abu Dhabi last year.

Despite the delays, several employees have already moved between the Dalio family office and G42, Bloomberg added.

#2- Private consumption growth in the UAE is expected to slow down in 2024 on the back of higher costs of living and higher interest rates, after growing nearly 12% last year, Emirates NBD’s chief economist, Khatija Haque, writes for the National. Strong public sector consumption and investment underpinned last year’s growth in private consumption, according to official data cited by Haque, who attributes the increase to population growth.

Public and private investment will drive non-oil sector growth in 2024 and beyond, Emirates NBD forecasts, citing a surge in infrastructure investments during 1H 2024, particularly for major construction projects.

Public sector projects under execution totaled AED 334 bn at the end of June, adding more than AED 70 bn during 1H 2024, with the oil and gas sector drawing most of the value. In addition, several projects are planned across the transport, power, and water sectors, including the development of Al Maktoum International Airport and Dubai Metro’s new Blue Line.

Lower interest rates in late 2024 and 2025 could support consumption and investment in the UAE, Emirates NBD expected, adding that investment in strategic public sector projects will likely proceed regardless of interest rate cuts, supporting medium-term economic activity. The lender predicts the UAE’s non-oil sector will grow at a 5% clip in 2024, down from 6.2% in 2023.

#3- Boeing delays thwart flydubai’s expansion plans: UAE’s budget carrier flydubai said its expansion plans will be significantly hampered by delays in Boeing’s delivery schedule in a statement yesterday. The airline is now working on “evaluating its route development plans and potential frequency revision across the network due to a lack of new aircraft deliveries over the next few months.” The delay is also expected to affect flydubai’s customers and its financial performance, it said in the statement. Fourteen 737 MAX aircraft, scheduled for delivery this year, will not be handed over to flydubai per Boeing’s schedule revision.

It’s not just flydubai who’s frustrated with Boeing: Emirates’ Tim Clark told Bloomberg he doesn’t expect Boeing’s 777X aircraft to enter commercial services before 2026, and that he “would not take kindly” to further delays caused by a growing backlog of orders. Both carriers have been resorting to retrofit programs in order to grapple with the delays.

THE BIG STORY ABROAD-

No surprises here — Kamala Harris is leading front pages everywhere after suddenly becoming the frontrunner for the Democratic nomination. Also getting attention: Israel is evacuating Khan Younis; ether ETFs are coming; and Google is keeping advertiser cookies.

Harris addressed her campaign staff yesterday as her candidacy earned the backing of key party officials, with former House speaker Nancy Pelosi the latest to give Harris her stamp of approval. Hollywood celebrities are also rallying around Harris and donating to the campaign — and Charli XCX seemingly triggered a viral meme campaign after tweeting that Harris “IS brat.” The campaign is leaning into it in a bid to attract Gen Z votes.

The sitting vice president aims to lock-in the delegates she needs to secure her nomination by tomorrow evening, Reuters reports. The Democratic National Committee has agreed to hold a virtual roll call to choose their nominee by Wednesday, 7 August. The formal convention will start on Monday, 19 August.

The key question on everyone’s minds now: Who will Harris pick as her running mate? Bloomberg, the New York Times and Politico each have a list of folks they think are likely candidates.

MEANWHILE- The US Secret Service admitted its “failure” in protecting Trump during his assassination attempt, and Biden said dropping out of the race was “the right thing to do.”

OVER IN GAZA- While Prime Minister Benjamin Netanyahu heads to Washington to address congress tomorrow, Israel has ordered civilians to evacuate Khan Younis as it relaunches attacks against Hamas, sending hundreds of thousands to the humanitarian area in Al Mawasi by the coast and killing 70 Palestinians in the meantime. (Bloomberg | Reuters)

IN BUSINESS NEWS- Several stories are making the rounds:

#1- The ripple effects of the global tech outage on Friday could last weeks, experts say, as flights continue to face delays across the world and healthcare services face ongoing snarls.

#2- The US Securities and Exchange Commission approved the launch of ether ETFs six months after the successful launch of BTC ETFs, with trading expecting to kick off today, CNBC reports. The ETFs could attract some USD 15 bn to market in its first year and a half, analysts expect.

#3- Google is scrapping long-standing plans to replace third-party cookies — long used by advertisers — after receiving feedback that the transition would be disruptive and would impact all online publishers. Read Google’s full blog post about the decision here.

Mubadala snaps up majority stake in Dutch Bugaboo

Mubadala buys into Bugaboo: Sovereign wealth fund Mubadala’s investment arm Mubadala Capital acquired a majority stake in Amsterdam-based stroller manufacturer Bugaboo Group from US private investment firm Bain Capital, according to a press release. The exact size and value of the majority stake was not disclosed, though sources told the Financial Times it values Bugaboo at “several hundred mn” GBP. Bain Capital said that it will retain a minority stake in the Dutch firm, which it fully acquired in 2018.

Mubadala will steer Bugaboo towards expansion: Mubadala plans to extend Bugaboo’s reach into growth markets and position the child products manufacturer as a “consolidator in the fragmented industry, with the objective of creating the global leader in the juvenile products space,” the release reads.

Which growth markets? Mubadala is looking to grow the firm in geographies with “a lot of organic growth but…there are a lot of opportunities,” such as the US and Asia, Antoun Ghanem, executive director and head of Mubadala Capital’s private equity team in Europe, told the FT. Ghanem noted that the transaction could pave the way for further transactions, which can be small scale bolt-on acquisitions or larger “transformative” mergers and acquisitions.

ADVISORS- Mubadala secured the acquisition through debt financing provided by First Abu Dhabi Bank, Citi, and Natixis Corporate & Investment Banking, acting as arrangers and underwriters. Citigroup served as financial advisor to Mubadala Capital, while Barclays and Baird advised Bugaboo.

OTHER M&A NEWS-

GFH Financial Group now holds a 76.63% majority stake in its subsidiary GFH Equities, after raising its stake by 12.5%, according to an ADX disclosure (pdf). The move is expected to reflect positively on the firm’s financials.

Property prices in Abu Dhabi are on the up in 1H. Plus: Industrial assets in Dubai see heightened demand

Prices in Abu Dhabi’s property market are still on the rise: Property prices in Abu Dhabi rose between 2 and 21% in 1H 2024, as compared to 2H 2023, with the biggest increases hitting luxury units amid rising demand, according to data (pdf) by Bayut. Rentals also rose, particularly for apartments in luxury neighborhoods.

Luxury villas led the pack: The average advertised price-per-sq-ft for luxury villas in Abu Dhabi rose by up to 10% during the six-month period, with prices for luxury houses in Yas Island appreciating by 10.3%. For luxury apartments, Saadiyat Island recorded the highest appreciation at 6%, while premium flats in Yas Island and Al Reem Island logged price increases of nearly 2.8%.

Affordable housing was not spared: The advertised sales price-per-sq-ft in the affordable segment also “generally increased,” Bayut notes, adding that apartments in Al Ghadeer recorded a significant increase of 9.5% in 1H 2024, followed by affordable flats in Al Reef, which witnessed a modest rise of 2.2%. Budget-friendly villas in the emirate saw increases of up to 7%, with villas in Khalifa City as the exception, with a 1.7% price drop.

On the rentals side: Rental rates for apartments in popular luxury neighborhoods saw “significant growth” of up to 21%, especially in the Saadiyat Island and Al Raha Beach communities. Affordable apartment rentals appreciated by more than 7% in some areas — such as Al Muroor — on the back of strong demand.

Rental rates for affordable villas saw a “minor to moderate increase” of nearly 7%, except for Shakhbout City, which recorded a minor decline. Upscale villas recorded rent hikes of up to 12% in 1H 2024, particularly in Al Bateen.

Increases are thanks to off-plan projects + more regulatory transparency: Price hikes across both the affordable and luxury segments were driven by a “diverse range of off-plan projects currently available in Abu Dhabi,” Bayut CEO Haider Ali Khan said. “With the government proactively bringing in more regulation and transparency, we can expect the properties in the capital to continue drawing both local and international interest.”

Biggest buck for investing: Affordable apartments in Al Ghadeer emerged as a “lucrative investment option in the budget-friendly category,” offering a high projected return on investment (ROI) of 8.5%, according to Bayut’s data. Al Reem Island maintained its popularity for luxury apartment purchases with a projected rental yield of 6.9%. For villas, Hydra Village offered the highest ROI of 8.1% for affordable houses, while Yas Island luxury villas had an ROI of 6.9%.

AJMAN-

The property market in Ajman also grew 33% y-o-y in 1H 2024 to log some 7k transactions valued at over AED 9 bn, according to a statement from the Ajman Government Media Office. More than half of that — 57% — came from foreign investors, who poured some AED 6.05 bn into real estate in the emirate. The increase was attributed to a successful Ajman Real Estate Investment Exhibition, which attracted AED 195.8 mn investments, as well as a flexible regulatory environment and a diversity of real estate projects.

Sales made up 77% of transactions with a total of AED 6.14 bn transactions, an increase of 37% y-o-y, while mortgages worth AED 1.8 bn made up the rest.

OTHER REAL ESTATE NEWS-

Industrial and logistics demand in Dubai rose 185% y-o-y in 1H 2024, logging almost 18 mn sqft of new requirements for industrial and logistics assets in the emirate, according to a report by global property consultant Knight Frank picked up by Construction Business News. The emirate saw increased interest from institutional investors from the US, China, and Europe, driven by globally attractive sector yields of around 8.3%.

Biggest sectors: The manufacturing and construction sectors comprised 11.7% and 11.1% of demand, followed by logistics, which made up 10.2%.

Rentals edged up: Jebel Ali Industrial (Grade B) logged the highest rental growth during the period at 38.5%, reaching AED 36 per sqft.

A shortage of new warehouses in Dubai sent demand spilling over to Abu Dhabi and Al Ain, with Abu Dhabi’s Kezad Group — representing 55% of UAE’s industrial supply — recording 88% occupancy in 1Q 2024. The warehouse also witnessed longer lease commitments, with the average lease length increasing to almost six years from four years in 2022.

More supply coming? Some 660k sqft of new supply is expected in Dubai in 2024, with an additional 1.3 mn sqft slated for handover in 2025.

UAE to boost trade with Africa after inking economic, trade agreement with Mauritius

UAE inks first economic partnership agreement with African nation: The UAE has signed an economic partnership agreement with Mauritius, set to grow the Emirates’ economy by 0.96% and Mauritius’ by over 1% by 2030, Wam reports. This agreement marks the first of its kind to be signed between the UAE and an African country, and is expected to pave the way for “increased investment flows with this fast-growing economy,” Investment Minister Mohammed Hassan Al Suwaidi said.

Lower tariffs: The agreement will eliminate tariffs on 99% of UAE imports to Mauritius and 97% on incoming Mauritian imports.

And tripling trade: The new economic pact is expected to triple trade between the two countries, aiming to increase non-oil bilateral trade to USD 500 mn within five years, up from USD 170 mn in 2023, Al Zeyoudi told Bloomberg. The agreement will cover petrochemicals, heavy machinery, precious metals, and food, in addition to a particular focus on service sectors as the two countries are financial hubs, “[complementing] each other,” Al Zeyoudi said.

Plus: More investments in logistics and trade? The agreement will also make way for investment into priority sectors such as logistics, manufacturing, tourism, and financial and professional services in Mauritius, Economy Minister Abdullah bin Touq Al Marri said, adding that there will be agreements in the upcoming “weeks and months” ahead. Investment Minister Mohammed Al Suwaidi also name-checked the ICT, tourism, transport, and financial services sectors as potential investment prospects for Emirati firms looking to invest in the country.

BACKGROUND- The terms of the agreement were finalized last December, aiming to foster increased trade and investment flows, as well as enhance private-sector collaboration between the two nations.

Fast facts: The UAE is the eighth-largest investor in Mauritius, with current investment standing at over USD 13.2 bn. The countries’ bilateral trade came in at USD 170.4 mn in 2023.

The pact will boost the UAE’s trade with Africa and the Far East, with India, Mauritius, and the UAE — all of which have trade agreements in place with one another — set to work on joint projects, Al Zeyoudi told Bloomberg.

More incoming: The UAE is in talks with Japan and Malaysia to finalize the terms of bilateral trade agreements, with up to seven other pacts set to be inked before year-end, in addition to seven more agreements pending final ratification, Al Zeyoudi told CNBC Arabia (watch, runtime: 3:59). Al Zeyoudi also revealed that the trade pact with South Korea is slated to enter into force by 1Q 2025, pending final signing from the Korean side.

AND- The UAE is hoping to reactivate both bilateral and GCC-level trade talks with the EU by the end of the year, Al Zeyoudi told Reuters. A trade zone agreement with the Eurasian Economic Union could also be finalized before year’s end, he added.

REMEMBER- Reuters reported earlier this year that the UAE is nudging the EU towards a bilateral trade pact “separate from an Arab bloc,” due to slow trade negotiations between the Union and the GCC.

OTHER DIPLOMACY NEWS-

President Sheikh Mohamed bin Zayed Al Nahyan met with Bahrain’s King Hamad bin Isa Al Khalifa in Abu Dhabi yesterday, where they discussed bolstering bilateral ties between the two nations at all levels. (Wam)

Emirates Driving acquires majority stake in Excellence Driving Center owner

ADX-listed driving institute and Multiply subsidiary Emirates Driving acquired a 51% stake in Excellence Premier Investment, the owner of Excellence Driving Center, according to an ADX disclosure (pdf). The company acquired the stake for AED 153 mn, Zawya reported.

The move comes as part of Emirates Driving’s plans to expand locally and in the GCC and improve its services, the statement said.

About Excellence Premier: The parent company of Excellence Driving Center — established in 2020 — also operates delivery, limousine, and auto workshop services, after setting up the center in 20 locations across Dubai.

OTHER M&A NEWS-

Adia purchases shares in India’s Vedanta: The Abu Dhabi Investment Authority (Adia) was among several institutional investors that bought shares in Mumbai-based mining conglomerate Vedanta during its qualified institutions placement round, which offered up 193.1 mn shares at a 4.61% discounted issue price of INR 440 (AED 5.26) per share, the Economic Times reports, citing a bourse filing. The round raised over USD 1 bn, with Goldman Sachs AMC, Morgan Stanley, Nippon Mutual Fund, SBI Mutual Fund, UTI Mutual Fund, ICICI Mutual Fund, Aditya Birla Mutual Fund, and Mirae Mutual Fund also participating.

The breakdown: Some 9.11% of the total issue size was allocated to funds run by Nippon Mutual Fund, while Morgan Stanley received 8.6% and SBI Mutual Fund received 7.9%. Vedanta plans to use the proceeds to de-leverage its balance sheet and edge the company towards its USD 10 bn EBITDA target.

MENA Glass eyes Gulf Capital’s stake in Middle East Glass

A new entry in the race for Gulf Capital’s stake in Middle East Glass: Parent firm MENA Glass Holding has submitted a mandatory tender offer to acquire an additional 40.8% — represented in 25.5 mn shares — in EGX-listed bottle maker Middle East Glass (MEG) in a USD 57.8 mn transaction, Egypt’s Financial Regulatory Authority said in a statement (pdf)

Remember: MENA Glass Holding already holds 52.9% of MEG, while Gulf Capital’s 36.9% stake (owned through special purpose vehicle MTM Packaging 2) makes it the second-largest shareholder. IGC Holdings owns 6.3%.

Who’s selling? Gulf Capital is looking to offload its entire stake — represented in 23.1 mn shares — in the company, while OGC rejected the offer.

The offer on the table: MENA Glass has offered to pay USD 2.26 per share — which would put the transaction value at some USD 57.8 mn if the buyer ends up securing the full 40.8% and at some USD 52.2 mn if it only secures Gulf Capital’s stake.

A huge markup: The offer marks a 774% premium to MEG’s average share price of EGP 12.54 a piece over the six months ending on 21 April, when MENA Glass submitted the MTO to the FRA, and values the whole company at almost EGP 6.9 bn, according to our calculations.

The end goal: If it succeeds in securing the full desired stake, the transaction will leave MENA glass with a 93.7% stake in MEG. It would get 87.4% without IGC’s stake.

What’s next? MEG has 19 working days to respond to the offer — which gives it until Monday, 19 August.

Post-acquisition plans: MENA Glass plans to resume and continue the expansion plans determined before the transaction, including plans to enhance production efficiency, carry out required maintenance upgrades, and ramp up exports. The buyer also pledged not to delist the company’s shares from the EGX.

Demand is high for Gulf Capital’s stake, with many investors expressing interest for the stake over the last quarter of 2023, including Africa-focused private equity firm Development Partners International, impact investor Mediterrania Capital Partners, and a number of other unnamed bidders.

Advisors: EFG Hermes will broker the acquisition, while Bahaa Eldin Law Office and MENA Associates will act as the buy side legal advisor. Arqaam Capital is the sell-side advisor.

du’s net income grows 46% y-o-y in 2Q

Emirates Integrated Telecommunications Company’s (du) net income grew 46% y-o-y to AED 581 mn in 2Q 2024, according to the company’s financial statements (pdf). The telco saw its revenues rise 7.3% y-o-y to AED 3.6 bn on the back of robust growth in its mobile service revenues, du said in its earnings release (pdf).

The breakdown: du’s mobile services alone contributed AED 1.6 bn in revenues, marking a 6.6% y-o-y increase. The company also reported a 3.5% y-o-y growth in its fixed service revenues to AED 982 mn amid rising demand for its home wireless product and enterprise broadband services.

du’s net income over the first half of the year rose 54.2% y-o-y to AED 1.18 bn. Meanwhile, the company booked AED 7.17 bn in revenues for 1H 2024, up 5.7% y-o-y.

What was said: “We have grown our subscriber base, revenues, profitability and [liquidity] generation, solidifying the stellar start we made this year. Our commercial momentum led to a strong growth in our service revenues in Q2 buoyed by significant large enterprise [transactions] with a robust pipeline of new projects as well as the launch of new innovative consumer products,” du CEO Fahad Al Hassawi said.

Dividends: The telco giant approved interim dividends of AED 0.2 per share, marking a 53.8% y-o-y increase.

BlackRock taps new chief strategist for the Middle East + Serco has a new COO for MENA. Plus: MBRSC gets new board

#1- US private equity giant BlackRock relocated Middle East and Asia Pacific chief strategist of its BlackRock Investment Institute unit, Ben Powell (LinkedIn), from Singapore to Dubai, as the firm looks to expand its research division to the Middle East, Bloomberg reports. Powell will focus on developing proprietary insights into the Middle East's macroeconomics, markets, and multi-asset classes, as he oversees the unit’s activities in the APAC region.

The move comes as the company sets up a Riyadh-based investments team with up to USD 5 bn from Saudi Arabia’s sovereign wealth fund, and after the private equity firm appointed a former Goldman Sachs executive to lead its UAE branch last month.

#2- Public services firm Serco promoted Hana Abu Kharmeh (LinkedIn) to COO for the Middle East, transitioning from her role as Chief People and Culture Officer, according to a press release. Abu Kharmeh previously led the people department for over five years at Serco and will now lead technology and transition teams while continuing to oversee HR and workforce management, reporting to CEO Phil Malem.

During her stint Serco managed to exceed the Emiratisation targets by seven times, which earned it a NAFIS UAE Award from the Emirati Talent Competitiveness Council, and boosted the number of female nationals in the business by 133% y-o-y.

#3- Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum reformed the board of directors of the Mohammed Bin Rashid Space Centre, according to the Dubai Media Office. The revised board will be chaired by Hamad Obaid Al Mansoori (LinkedIn), with Yousuf Hamad Al Shaibani serving as vice chairman.

#4- The Dubai Ruler also formed the Board of Trustees for the Dubai Community Contributions Establishment, according to the Dubai Media Office. The board will be chaired by Hessa bint Essa Buhumaid (LinkedIn), with Ahmed Darwish Al Muhairi serving as vice chairman.

UAE sentencing of Bangladeshi nationals gets ink

The Associated Press picked up news of Abu Dhabi Federal Court of Appeal’s sentencing of dozens of Bangladeshi nationals for protesting against a controversial quota system back home in the UAE’s streets. The ruling saw 53 individuals sentenced to 10 years in prison each, another to 11 years, and three to life imprisonment.

FAB India lends Indian engineering firm credit facility + DIB confirms role in USD 3.25 bn financing for Gems

DEBT-

#1- FAB India advances loan for Uzbek solar plant: First Abu Dhabi Bank’s India office advanced an INR 2.96 bn (c. AED 129.9 mn) credit facility to India-based renewables firm Jakson Green for a 250 MW solar plant in Bukhara, Uzbekistan, the Economic Times reports. This is the company's first renewables project in Uzbekistan and includes a 63 MW battery energy storage system.

#2- Dubai Islamic Bank took the leading role in financing a USD 3.25 bnsustainability-linked loan for Gems Education, facilitating asset manager Brookefield’s acquisition of a majority stake in the Dubai-based school operator, it said in a press release. The lender committed to over 50% of the financing transaction — one of its largest private-sector commitments — with the underwriting consortium also seeing participation from our friends at Mashreq and First Abu Dhabi Bank, as well as Abu Dhabi Commercial Bank. The financing allowed Gems to refinance its existing debt.

MANUFACTURING-

#1- Dubai Chambers teams up with SGS Gulf to boost Emirati exports: Dubai Chambers has inked an MoU with the Gulf arm of Swiss inspection and certification company SGS to ensure local companies’ exports comply with the test, inspection, and compliance standards enforced in 176 countries, a move which aims to boost Emirati exports to global markets, according to a statement from the Dubai Media Office.

IN CONTEXT- The agreement is part of Dubai Chambers’ Global Partnership Program, which seeks to attract foreign investments and support the expansion of local companies offshore.

#2- Zero Gravity is now the sole distributor for Optical Control Systems: Abu Dhabi-based IT solutions provider Zero Gravity signed an agreement with Optical Control Systems (OCS) to be the exclusive distributor of the German company’s products in the UAE, Al Bayan reports. OCS provides quality control systems for the polymer and petrochemical industries.

TELECOMS-

TruDoc to get e& enterprise’s CPaaS solution: Dubai-based telehealth company TruDoc will implement e& enterprise’s communications platform as a service (CPaaS) solution engageX per an agreement they signed on Monday, according to a statement from TruDoc. The move seeks to improve TruDoc’s customer service by integrating the company’s multiple communication channels — including voice, chat, email, and video — into a unified platform.

INFRASTRUCTURE-

Dubai commissioned eight substations in 1H 2024: The Dubai Electricity and Water Authority (Dewa) commissioned eight 132 kV transmission substations with the cost of AED 1.36 bn in 1H 2024, along with the installation of 89 km of ground cables to support the substations, according to the Dubai Media Office. The substations have a total conversion capacity of 1.2k megavolt-amperes, and will be connected to the main electricity grid after Dewa awarded AED 176 mn in contracts to lay an additional 25 km of ground cables.

There’s more in the pipeline: Dubai has 31 more 132 kV substations under construction, with plans to issue tenders for over 50 more within the next three years and financial proposals being reviewed for six more currently, Executive Vice President Hussein Lootah said, adding that 350 km of ground cables will also be added. The number of transmission substations in the emirate stood at 382 as of June 2024.

BANKING-

Rakbank USD 600 mn issuance rated BBB+: Fitch Ratings assigned the National Bank of Ras Al Khaimah’s (Rakbank) USD 600 mn social bond issuance a BBB+ senior unsecured long term rating, according to a disclosure (pdf).

REMEMBER- RAKBank issued the first-ever public social bond in the GCC last week — a USD 600 mn, five-year EUR Medium-Term Note bond — under its Social Finance Framework. The issuance was 3x oversubscribed.

AVIATION-

Budget carrier Air Arabia added the Maldives to its destination network, launching daily non-stop flights between Sharjah and the islands starting 27 October, according to a statement.

The bad habits of NBFIs are a growing threat to the global financial system, the Financial Stability Board warns

The Financial Stability Board (FSB) is urging global financial regulators to tighten their grip on non-banking financial institutions (better known as NBFIs). Klass Knot, the FSB chair whose name might make for a good Bond villain, expressed the worries in a letter to G20 finance ministers and central bank governors ahead of their Rio de Janeiro meeting later this week, the Financial Times reports. Knot wants regulators to step up both the rollout of tighter rules and enforcement. You can read the full letter here.

IN CONTEXT- No fire without a spark: The FSB, a key international watchdog, has been concerned about the risks posed by NBFIs since a March 2020 meltdown triggered when debt-laden hedge funds pile into cash (and sold down other assets) as the covid-19 crisis set it.

Detractors call NBFIs “shadow banks,” and Knot thinks they control AUM worth USD 218 tn — nearly half of all assets in the global financial system, exposing everyone to the risks posed by the heavily indebted sector, according to the salmon-colored paper.

THE CULPRIT- Higher leverage + less oversight and low transparency: NBFIs including hedge funds and finance companies have been “taking on additional leverage through off-balance sheet exposures, including foreign exchange swaps and forwards” that has “grown significantly over the past decade,” said Knot.

The problem: Unlike banks, which are heavily regulated, NBFIs often operate with higher leverage and less oversight, making them more susceptible to financial shocks.

The pitch: The FSB wants to see regulators demand NBFIs hold more liquid assets and engage in regular stress tests — and impose tighter rules on redemptions at money market funds.

Why the FSB matters: The body was set up in the aftermath of the 2008 global financial crisis to monitor and make recommendations about the global financial system. Its primary purpose is to coordinate national financial authorities and international standard-setting bodies to develop and promote the implementation of effective regulatory, supervisory, and other financial sector policies. It’s quasi-governmental: The FSB is made up of the central bank governors and finance ministers of major economies, along with international financial and economic bodies such as the IMF, and the World Bank. FSB has no legally binding powers of its own.

MARKETS THIS MORNING-

To indulge in the armchair analysis that the financial press loves to fall back on when looking at how markets are moving: Asian investors are mixed on the prospect of Kamala Harris as the Democratic nominee for this fall’s elections. Shares are up in early trading in Australia, Japan, and South Korea (all key US allies in Asia), while the Shanghai Composite is down and the Hong Kong’s Hang Seng is flat.

Wall Street welcomed Joe Biden’s decision to step down, with the Dow, S&P 500, and Nasdaq all rising. US and European equities futures were up in overnight trading.

ADX	9,279	+0.4% (YTD: -3.1%)
DFM	4,179	-0.1% (YTD: +2.9%)
Nasdaq Dubai UAE20	3,628	+0.3% (YTD: -5.6%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.0% o/n	5.0% 1 yr
TASI	12,175	-0.2% (YTD: +1.7%)
EGX30	28,992	+16.5% (YTD: +0.7%)
S&P 500	5,564	+1.1% (YTD: +16.7%)
FTSE 100	8,199	+0.5% (YTD: +6.0%)
Euro Stoxx 50	4,897	+1.5% (YTD: +8.3%)
Brent crude	USD 82.40	-0.3%
Natural gas (Nymex)	USD 2.23	-0.8%
Gold	USD 2,445	+0.1%
BTC	USD 67,918	+0.3% (YTD: +60.6%)

THE CLOSING BELL-

The DFM fell 0.1% yesterday on turnover of AED 331.9 mn. The index is up 2.9% YTD.

In the green: Shuaa Capital (+14.9%), Al Salam Bank (+9.7%) and Dubai National Ins. & Reins. (+8.6%).

In the red: Mashreqbank (-3.3%), Spinneys (-2.0%) and Amanat Holdings (-1.8%).

Over on the ADX, the index rose 0.4% on turnover of AED 1.2 bn. Meanwhile Nasdaq Dubai closed up 0.3%.

CALENDAR

JULY

31 July (Wednesday): Deadline for Sidara to submit another takeover bid to Wood Group.

AUGUST

2 August (Friday): Abu Dhabi Extreme Championship, Mubadala Arena, Abu Dhabi.

3 August (Saturday): UFC Fight Night, Etihad arena, Abu Dhabi.

20-21 August (Tuesday-Wednesday): The World ESG Summit, Dubai.

21-22 August (Wednesday-Thursday): Rex Fuels Global Expo & Conference 2024- Bitumen, Petrochemicals & Products, Dubai.

21-22 August (Wednesday-Thursday): Dubai Business Forum in Beijing, China.

25 August (Sunday): Deadline to register for the AI Challenge.

Signposted to happen sometime in mid-August:

New regulations on telemarketing calls will go into effect

SEPTEMBER

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

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

10-11 September (Tuesday-Wednesday): MENA District Cooling Projects & MENA Cool Forum, Grand Hyatt Dubai, Dubai Healthcare City, Dubai.

11-12 September (Wednesday-Thursday): MENA oil and gas digitization conference, Abu Dhabi.

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

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

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.

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

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

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

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.

26-27 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.

NOVEMBER

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

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

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

4-7 November (Wednesday-Saturday): 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.

11-14 November (Monday-Thursday): Abu Dhabi International Petroleum Exhibition & Conference, Abu Dhabi.

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

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

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

9-12 December (Saturday-Thursday): Abu Dhabi Finance Week, Abu Dhabi.

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

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

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

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

APRIL 2025

16-17 April: Global Ports Forum, Dubai.

OCTOBER 2025

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

Signposted to happen sometime before the end of the year:

Spinneys inaugurates three more stores in KSA

Signposted to happen in 2025:

6-11 April (Sunday-Friday): Geo-Spatial Week 2025, Dubai.
3-4 June (Tuesday-Wednesday): Make-A-Wish International’s Global Wish summit, Abu Dhabi.
TBD: The Middle East Electric Vehicle Show, Expo Center Sharjah.
TBD: e& will complete Adnoc’s private 5G network.

Signposted to happen sometime in 2028:

Abu Dhabi to host the 47th Chess Olympiad.

Signposted to happen sometime in 2029:

Dubai to host the International Conference on Computer Vision.

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