UAE, KSA non-oil firms will lead the GCC pack this year, Fitch says

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WHAT WE’RE TRACKING TODAY

Adnoc, OMV to resume talks on Borouge-Borealis petrochem merger + US, British troops launch fresh strikes against Houthi targets

Good morning, ladies and gentlemen, and welcome to what has shaped up to be a very busy Tuesday. The flavors of the day are sustained M&A activity — primarily beyond Emirati borders — along with plans and expectations of stronger investment performance this year.

THE BIG STORY: Fitch sees the UAE and Saudi Arabia leading the GCC’s investment pipeline in 2024, despite the agency expecting the region to have an overall “neutral” year in terms of investment activity.

^^ We have the full story in this morning’s news well, below.

WATCH THIS SPACE-

#1-Renewed talks on the Borouge-Borealis petrochemical merger: The Abu DhabiNational Oil Company (Adnoc) and Austria-based integrated oil and gas company OMV are set to resume talks this week on the final terms of an agreement initially announced in July to combine ADX-listed Borouge with Borealis, Reuters reports, citing three sources familiar with the details of the transaction. Reuters and Bloomberg have both reported on the near-finalization of the estimated USD 30 bn merger since late last year.

The sticking points: Neither party has settled on a trading venue or headquarters for the new entity, with some sources suggesting a potential dual-listing in the UAE and Vienna. Other pending issues include the need for job guarantees in Austria, and the appointment of an Austrian chairman for the new entity.

Adnoc and OMV are expected to have an equal controlling stake in the merger, with OMV potentially injecting some EUR 1.7 bn into the merger to ensure an equal stake to Adnoc, sources told Bloomberg back in November.

#2- Masdar’s 1 GW solar project in Iraq is on track to be submitted for review at the Iraqi cabinet, Zawya reports, citing statements from Iraq’s Electricity Minister Ziyad Ali Fadel. The project, which will span four regions in Iraq, is pending the cabinet’s final approval and potential tax exemptions. The plant will have an output capacity of 1k MW in the first phase.

Breakdown: The project comprises a 450 MW facility in the Dhi Qar governorate, a 100 MW plant and a 250 MW plant in Ramadi, a 100 MW plant in Mosul, and a 100 MW plant in Amarah.

#3- Abu Dhabi launches accessibility initiative: The Abu Dhabi Department of Community Development (ADDCD) and our friends at Aldar Properties rolled out a new strategy to help assist individuals with disabilities and senior citizens in accessing public facilities, with the first phase of the strategy kicking off this quarter at Yas Island before it’s rolled out to the rest of the country at a later stage, The National reports. The strategy will include boosting accessibility to transport and housing, as well as education, health, social and entertainment services.

#4- Green asset manager Offset8 Capital is set to expand its operations in Japan: Abu Dhabi-based asset manager Offset8 Capital, which focuses on nature-based carbon removal projects, plans to establish an office in Tokyo by 3Q 2024, co-founder Jules Maitrepierre told Asharq Business. Offset8 Capital aims to have four employees in Japan by the end of the year, with plans to double its workforce in the country by 2025.

#5- Local suppliers are using overland routes in Dammam to get goods to Saudi Arabia instead of the regular seaborne routes, Gulf News reports.

“Dammam has become the single most important option for shippers — not just to keep costs down, but ensure they can deliver the orders from Saudi Arabia on time,” an undisclosed trader in FMCG goods told Gulf News. The route from Jebel Ali to Dammam fares AED 5k, inclusive of Saudi border charges.

Emirati exporters aren’t the only ones looking for alternative routes: Container shipping costs from Europe to the Gulf have increased by USD 1k for a standard twenty-foot container in recent weeks. Global air cargo tonnages have increased 24% from the previous week, with cargo owners increasingly eyeing air transport due to longer ocean voyages, Transport & Logistics Middle East reports, citing WorldACD Market Data.

HAPPENING THIS WEEK-

The Sharjah Consultative Council (SCC) will reconvene thisThursday, reports Sharjah 24.The agenda includes approving the minutes of the last session, in addition to reviewing the statement of directions for the next stage and the drafted parliamentary response to Sharjah Ruler Sultan bin Mohammed Al Qasimi’s opening speech at the SCC work ceremony on 14 December.

DATA POINTS-

#1- Dubai has seen traffic improvements across 14 sites in 2023, slashing travel times by up to 50% and upping vehicular capacity by up to 25% in some areas, according to a Dubai Roads and Transport Authority (RTA) news release. The improvements spanned across adding more lanes to streets in downtown, Umm Suqeim, and Al Fay Street, to adding exits and u-turns.

More improvements are underway: RTA plans to continue to implement improvements to help reduce traffic as part of a wider plan to implement 45 projects during FY 2023-2024. The projects will focus on some 31 sites in Dubai, including Sheikh Mohammed bin Zayed Road, Al Awir Street, Abu Baker Al Siddique Street, Al Rebat Street, Al Khail Road, and Al Meydan Street.

#2- Ras Al Khaimah Economic Zone (Rakez) saw an 86% y-o-y increase in new company registrations in 2023, with over 7,800 businesses joining, Wam reports. Nearly 100 existing businesses in Rakez also expanded their operations across various sectors in 2023.

#3- More women are now working in the private sector: Women’s participation in the private sector surged by 23.1% y-o-y in 2023, Wam reports, citing data from the Human Resources and Emiratisation Ministry.

GREEN FINANCE-

Mashreq to integrate carbon offsetting feature for clients:Our friends at Mashreq have inked an agreement with ESG infrastructure payment firm Fils that will allow its clients to integrate a carbon offsetting feature into their Mashreq corporate accounts, according to a company statement. The offering will allow clients to purchase carbon credits directly through Mashreq’s platform instead of going through the conventional voluntary carbon market route, the statement said.

THE BIG STORIES ABROAD-

#1- US and British forces launched another round of attacks last night against Houthi targets in Yemen, hitting what they said were the Tehran-backed group’s missile capabilities as well as underground storage sites. The two struck eight sites, with unspecified support from Australia, Bahrain, Canada, and the Netherlands.

It’s the second major strike aimed at stopping Houthi attacks on Red Sea shipping. The story is leading the front pages of the Wall Street Journal and Reuters. It’s also getting plenty of ink from others including the Financial Times and the New York Times.

#2- It’s a big day in US politics as voters in New Hampshire head to the polls in a primary that media are almost uniformly positioning as challenger Nikki Haley’s last chance to stop Donald Trump from cruising to the Republican nomination. Trump foe Ron Desantis has already dropped out of the race.

Uh, Enterprise? Isn’t this the first primary? It is, for the GOP, at least. Haley is hoping to upset Trump, who has a commanding lead in the polls, and US and UK media seem convinced that it’s all over for the former UN ambassador and South Carolina governor if she doesn’t beat him tonight.

Need more? Head over to Politico (here and here), the Associated Press, New York Times, or Financial Times.

ALSO worth knowing about this morning:

Want to send the kid to study in Canada? Ottawa is imposing a two-year cap on international student visas as part of a bid to tamp down skyrocketing housing prices. (Reuters | Globe and Mail)
BlackRock is reorganizing to capture more business from clients rotating out of cash ahead of anticipated interest rate cuts. The big emphasis: a single exec leading a new unit in charge of product creation across the board. The move comes just days after its USD 12.5 bn acquisition of Global Infrastructure Partners. (Financial Times)
The Dow has broken past 38k for the first time and the S&P 500 reached a new high yesterday. (WSJ | Reuters)

CIRCLE YOUR CALENDAR-

Emirati real estate developers will be in Sao Paulo, Brazil, for the UAE Property Forum, hosted by the Emirati embassy in Brazil and the Consulate General in Sao Paulo. The exhibition runs from 29-30 January at the Tivoli Mofarrej São Paulo Hotel, Brazil, according to a press release.

The Mubadala Abu Dhabi Tennis Open will take place from Saturday, 3 February to Sunday 11 February at Zayed Sports City’s International Tennis Centre. The tournament will see participation from four-time Grand Slam champion Naomi Osaka, plus Elena Rybakina, Ons Jabeur, Maria Sakkari, and Barbora Krejčíková, reports The National.

Young entrepreneurs can pitch their early education startup ideas at the AbuDhabi Youth Challenge: Techstars Startup Weekend, running for three days from Friday, 2 February, to Sunday, 4 February at Cloud Spaces ADGM in Abu Dhabi. Participants get 54 hours to develop startup ideas under the mentorship of founders and investors, form teams with which they can develop a demo or prototype, and then present their ideas to a panel of judges. The top three teams will get AED 30k.

The Middle East Bunkering Convention will take place from Monday, 5 February through to Wednesday, 7 February at the Hilton Dubai Jumeirah. The event will bring together industry experts to tap into issues affecting the global marine fuel sector, including supply chains, decarbonization, and new fuels.

The UAE Tour Women will take place from 8-11 February starting in Dubai and ending in Abu Dhabi. The event will feature three sprint stages and a mountain climb up Jebel Hafeet, spanning 468 km from Dubai to Abu Dhabi. Riders will compete for the competition’s Red, Green, White and Black jerseys.

The Sustainable Aviation Futures MENA will kick off on Monday, 12 February through to Wednesday, 14 February at Kempinski Central Avenue. The event will see 80 expert speakers and upwards of 200 high level attendants and will handle topics pertaining to regulation, financing, and investments in Sustainable Aviation Fuels (SAF) in MENA.

The UAE will host the Future Warehouse & Logistics 2024 Conference from Monday, 12 February to Wednesday, 14 February in Dubai. The event will handle means for supply chain leaders to boost resilience and overcome challenges, with discussions on disruptions, sustainability, Internet of Things (IoT), automation, workplace management and other topics.

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

The Ras Al Khaimah Half Marathon is returning on Saturday, 24 February, on Al Marjan Island. The World Athletics Gold Label event will welcome athletes, running enthusiasts and amateurs alike. You can register here.

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

Fitch maintains neutral outlook for GCC businesses in 2024, with UAE set to lead investments

Fitch sees GCC non-oil firms doing well in 2024: Fitch ratings sees the Emirates and Saudi Arabia “leading the investment pipeline in 2024,” amid what it says is a “neutral” outlook for GCC businesses for the year in its 2024 GCC Corporates Outlook report. Corporates operating in the region are expected to record a solid year and post stable earnings, driven by public-sector spending in infrastructure and energy, high oil prices and potential Fed interest rate cuts, according to Fitch Ratings.

GCC corporates are expected to improve their fiscal budgets on the back of high oil prices, with Fitch expecting Brent crude oil to settle around USD 80 in 2024. This outlook matches the US Energy Information Administration’s (EIA), which sees Brent crude oil prices averaging USD 83 per barrel in 2024.

A “delay” in mega-project investments could impact non-oil firms: On the downside, new government financial policies could impact non-oil companies’ order backlog and cashflow visibility as investments in mega-projects see delays, the ratings agency said.

Non-oil GDP to inch down: The ratings agency expects the momentum for the non-oil sector in the GCC to slow, growing at a 3.7% clip in FY 2024, compared to the 4.2% projection for FY 2023.

ICYMI- UAE and KSA non-oil sectors continued to grow in 2023: Activity in the UAE’s non-oil private sector expanded to its highest level in over four years in December, surging to 57.4, recording the second-best expansion level since mid-2019, according to S&P Global’s purchasing managers’ index (PMI). KSA’s non-oil sector also recorded a four-month high growth level in 2023 in October, accelerating to 58.4.

GCC firms will borrow more: Citing GCC borrowers adapting to the high-interest rate environment and increasing their fixed-income issuances by 3.5x in 2023, the ratings agency sees “debt capital markets activity for corporate sectors [rising], depending on the respective volatility and accessibility of the financial markets.” The Emirates’ debt capital market is expected to reach USD 300 bn (AED 1.1 tn) by 2030, the ratings agency said in September last year.

But they’re in the clear from refinancing risk, with the majority of Fitch-rated GCC corporate issuers having stable or positive outlooks. Emirati and Saudi corporate issuers are due to pay off USD 30 bn (AED 110 bn) for outstanding bonds and sukuk, with maturities set for 2024-2026.

Adnoc will spend USD 23 bn on lower-carbon projects, >50% more than originally planned

Adnoc pledges more investments in decarbonization: State-owned Abu Dhabi National Oil Company (Adnoc) has raised its budget for investments in decarbonization and lower-carbon projects to USD 23 bn (AED 86.6 bn), up from its initial USD 15 bn (AED 55.1 bn) budget, according to a company statement. Adnoc made the announcement during its annual board meeting.

Where the funds will go: “The increased allocation will include investments to grow the company’s domestic and international carbon management platforms,” the company said in the statement.

Targets: Adnoc aims to decrease its carbon intensity by 25% by 2030 and achieve net-zero carbon emissions by 2045. The company is planning to double its carbon capture and storage capacity to 10 mn tonnes a year by the end of the decade, the statement said.

The board also approved a target for the company to contribute AED 178 bn to the UAE economy over the next five years, building on the AED 41 bn generated by Adnoc’s in-country value program in 2023.

The news got wide attention in the international press: Reuters, Bloomberg, and the Financial Times.

Emirati fruit exporter Unifrutti acquires 100% of South America’s Verfrut

ADQ-backed Unifrutti Group has acquired 100% of Chile-based fruit producer and exporter Verfrut, Unifrutti said in a statement, without disclosing the value of the transaction.

What they said: The acquisition allows Unifrutti to become “a major fruit company in Chile,” as well as expanding its footprint into Peru, and builds on Unifrutti’s goal of “building a globally diversified premium fruit platform,” the statement notes.

About Unifrutti: Established in Eritrea in 1948, Unifrutti currently has a footprint in 50 countries across four continents, producing and distributing more than 100 fresh fruit products. ADQ acquired a majority equity stake in the company in 2022, as the fund looked to expand its food and agriculture portfolio.

About Verfrut: Verfrut is currently one of Chile and Peru’s largest fruit producers, after nearly 30 years in the business. The company was founded in 1966 in Chile.

OTHER M&A NEWS-

Amantra FM acquires fire safety solutions firm, venturing into construction industry: UAE-based facility management company Amantra Facilities Management acquired fire fighting and safety solutions company Al Manqab Technical Services. Amantra says the transaction will allow it to expand its range of mechanical, electrical, and plumbing services, as well as integrate fire safety measures during the design stages of construction projects, according to a statement. The size and value of the acquisition were not disclosed.

Abu Dhabi’s Taqa sells stake in Atrush oil field in Kurdistan

Abu Dhabi’s Taqa to exit its stake in Atrush oil field: The Abu Dhabi National Energy Company (Taqa) will sell its 47.4% stake in the Atrush oil field in the Kurdistan region of Iraq to Canadian energy firm ShaMaran Petroleum subsidiary General Exploration Partners (GEP), according to an ADX disclosure (pdf). The exit will be executed via Taqa’s wholly-owned subsidiary Taqa Atrush BV, which owns the stake in the field, for an undisclosed sum.

ShaMaran is upping its stake: The transaction will be carried out over two stages as part of ShaMaran’s consolidation plan in the region, according to a statement (pdf) by ShaMaran. In the first stage, Cayman Islands-based GEP will acquire the Atrush field operator, Taqa Atrush BV (TABV), which holds Taqa’s 47.4% stake, raising ShaMaran’s stake in the field from 27.6% to 50%. Following the acquisition, the second step will be for ShaMaran to transfer 25% working interest and operatorship to GEP2, a new entity wholly-owned by GEP by selling GEP2 to HKN Energy, ShaMaran’s partner in the Kurdish Sarsang oil field.

Ownership structure: After closing the transaction, GEP will own a 50% stake, HKN Energy will hold a 25% indirect stake and will act as the main operator of the field, and the Kurdistan Regional Government (KRG) will own 25%.

Background: Taqa bought a 53.2% operating stake in the oil field for USD 600 mn (AED 2.2 bn) from GEP in 2013, marking Taqa’s maiden energy project in the MENA region.

About Atrush: Located approximately 85 km northwest of the Kurdish capital, Erbil, the Atrush oil field reached a record daily production capacity of some 45k barrels per day in 2019, according to ShaMaran’s website. Discovered in 2011, the field is estimated to hold reserves of around 40 bn oil barrels.

Danube Properties to develop AED 2 bn residence in Jumeirah Lake Towers !_StoryTags_! Dubai Multi Commodites Center, Danube Properties, Dubai, Jumeirah Lakes Towers,

Jumeirah Lakes Towers (JLT) to get another residence:Dubai-based developer Danube Properties will develop 65-story twin towers, estimated at a development value of AED 2 bn, at JLT, after inking an agreement with Dubai Multi Commodities Centre (DMCC), according to a Dubai Media Office statement. The towers will house 1.2k residential units across approximately 158k sqm, adjacent to DMCC’s Uptown Dubai district. The project is currently in the design phase.

JLT is seeing high demand: The new residence meets growing demand for properties in JLT, which currently accommodates 100k residents, according to DMCC CEO Ahmed Bin Sulayem.

Background:DMCC previously partnered with Danube in January 2023 (pdf) to construct two high-rise towers in Cluster K of JLT under a project dubbed Viewz. The fully-sold towers were valued at AED 1.4 bn, making it Danube’s largest project. DMCC also licensed developers Ellington Properties Partner and Sobha Realty Partners last year to boost JLT’s residential offering.

Majid Al Futtaim awards contracts worth AED 3 bn for flagship Dubai development Tilal Al Ghaf

Majid Al Futtaim has awarded construction contracts worth AED 3 bn for its flagship destination Tilal Al Ghaf in Dubai, according to a news release. The contracts were awarded to construction companies Innovo Build and Unec on Monday, to develop two neighborhoods — Alaya and Elysian Mansions.

The details: UAE construction conglomerate ASGC subsidiary Innovo Build will be the primary contractor for the 94-unit Elysian Mansions, while UAE-based construction firm Unec is the main contractor for the 130-unit Alaya villa development.

The timeline: The developers have broken ground on the two neighborhoods, with both projects expected to take 26 months to complete, the statement said. Handover of the units at Elysian Mansions is expected to take place in mid-2026, while Alaya’s units will see handovers in early 2026, it added.

OTHER REAL ESTATE NEWS-

Anax Developments is building a AED 470 mn Vento Towerin Dubai’s Business Bay area, which it expects to complete by 4Q 2025, according to a press release. The tower will comprise 225 fully furnished residences, spanning 19 residential floors, with the starting price for a studio set at AED 1.2 mn.

UAE’s Mohamed bin Zayed sets up Artificial Intelligence and Advanced Technology Council

The UAE now has an Artificial Intelligence and Advanced Technology Council (AIATC), after Sheikh Mohamed bin Zayed Al Nahyan issued a law establishing the council and appointing its leadership team, according to a Dubai Media Office statement.

The scope: AIATC will be responsible for creating research programs focused on artificial intelligence and advanced technology, with an eye to developing “policies and strategies related to research, infrastructure and investments in artificial intelligence and advanced technology in Abu Dhabi,” the statement says.

REMEMBER- We already have the Advanced Technology Research Council, which appears to be a separate entity that will continue to operate independently of AIATC with a different leadership team.

At the top: Sheikh Mohamed has tapped Sheikh Tahnoun bin Zayed Al Nahyan as AIATC’s chairman, while Sheikh Khaled bin Mohamed bin Zayed Al Nahyan as vice chairman. Other members of the council include Mubadala CEO and Managing Director Khaldoon Khalifa Al Mubarak, e& Chairman Jassem Mohamed Bu Ataba Al Zaabi, EDGE Group Chairman Faisal Abdulaziz Al Bannai, and G42 CEO Peng Xiao.

Asset management platform Akkrue Capital closes funding round led by DHF Capital

Crypto asset managerAkkrue Capital closed an undisclosed seed funding round led by Luxembourg-based DHF Capital last September, according to a statement published yesterday on Wamda. The value of the investment was not disclosed in the statement.

Where the money’s going: The funds raised in this round will go towards enhancing Akkrue Capital ‘s financial products and services. The company offers decentralized finance and digital asset management solutions to businesses, institutions, banks, and ultra-high net worth individuals.

Deyaar Development's net income rose to AED 440.7 mn in 2023, marking a 206% increase

Dubai’s Deyaar Development recorded a 206% y-o-y increase in net income to AED 440.7 mn in 2023, according to its earnings release. The real estate developer and service provider’s total revenue reached AED 1.3 bn, up 56% y-o-y.

The rise in earnings can be credited to a surge in property development revenue, according to the statement, with some AED 412 mn accrued from property sales, primarily driven by accelerated progress in construction, the company said. The company also documented 15% y-o-y growth in revenue in other business segments.

What they said: “We increased our project frequency and accelerated various stages of construction to maintain our track record of delivering projects on time or even ahead of schedule,” CEO of Deyaar Development Saeed Al Qatami said. “The year 2024 looks even more promising, as we have already started the year with the launch of Rosalia Residences, our third project at Al Furjan,” he added.

Visiomed Group appoints new Dubai-based CEO

Visiomed has a new Dubai-based CEO: French healthcare tech firm Visiomed Group has appointed Clément Pacaud (LinkedIn) as the group’s new CEO, the company said in a press release (pdf). Pacuad will serve as CEO from Dubai, where he will oversee the business and its plans to expand geographically in the Middle East, the press release said.

The company wants to make the region “the central hub for its commercial and strategic operations,” and to “become a key player in prevention and precision medicine in the Middle East,” it said.

CEO Profile:Pacuad enters the role after serving as chief financial officer for Dubai-based private equity firm Perpetua Investment Group. He also previously served as the CEO of Lahab, one of Edge Group’s subsidiaries.

!_InsertUAESponsorBlock_!

Dubai launches AED 1 bn scholarship program for Emirati students + Mashreq to integrate carbon offsets for clients, and a mixed bag of news

EDUCATION-

#1- New AED 1 bn scholarship program for Emiratis:One hundred high-achieving Emirati students from public and private schools will receive support for their higher educationthrough the newly launched AED 1.1 bn Hamdan bin Mohammed Academic Scholarship Program every year, reports Wam. The scholarships will help send students to international universities for “specialized studies that are compatible with the needs of Dubai’s economy,” Wam said. The program will start accepting applications in April for the 2024-2025 academic year.

#2- ADU law students can train in the UK: Abu Dhabi University’s (ADU) College of Law inked an MoU with Contractus House UK to provide cross-learning experiences for its students, reports Wam. The agreement will see Contractus House provide ADU law students access to its eight-week internship program, as well as jointly host conferences, workshops, seminars, academic activities, and training programs with ADU.

BANKING-

Abu Dhabi Judicial Department (ADJD) is launching a new digital platform in partnership with Abu Dhabi Islamic Bank (ADIB)for automated deposit and withdrawal processes for judicial cases, according to a press release.

ICYMI- ADJD is setting up a new system that will allow enforcement decisions on judicial rulings to be canceled once the relevant financial payments have been completed through official channels. The system will monitor payment statuses on enforcement decisions, and is set to be the first implemented by a judicial authority in the region.

FINANCE-

Standard Chartered’s fintech unit SC Ventures will open an office in the Abu Dhabi Global Market (ADGM), with Gautam Jain (LinkedIn) leading the new office, according to a press release. Jain boasts 30 years of experience in banking and tech, with posts at Standard Chartered Bank, Barclays, HSBC and Citigroup. The announcement comes after SC Ventures joined forces with Japan’s SBI Holdings to launch a USD 100 mn digital asset joint venture firm in the UAE last November.

Mastercard will work with local banks to provide SMEs in the Abu Dhabi Global Market (ADGM) with cards for secured expense management, as part of a partnership agreement with ADGM, according to a press release.

REAL ESTATE-

Alef Group fares well at Acres: Sharjah-based developer Alef Group secured AED 310 mn in sales for its Al Mamsha Sharjah and Hayyan residential projects at the 2024 Acres Real Estate Exhibition, reports Wam. The Alef developments sit near Sharjah International Airport, children’s school complexes, the University of Sharjah, and Sharjah Healthcare City.

The exhibition helped generate more than AED 1.4 bn real estate transactions, attracting more than 400 visitors and 93 regional and global real estate companies, Wam reports.

MANUFACTURING-

Assa Abloy inaugurates new Dubai regional HQ: Door security solutions provider Assa Abloy inaugurated its new regional HQ at the National Industries Park (NIP) in Dubai, according to a press release. The new facility includes a showroom displaying Assa Abloy’s products.

ENERGY-

Lebanese energy production and distribution ITP Energy has committed more than AED 40 mn in seed investments in Sharjah, with upcoming plans to double the investment to AED 80 mn between 2025 and 2026, according to a press release.

MARITIME-

Adnoc awards USD 56.9 mn contract to dredging company: The Abu Dhabi National Oil Company (Adnoc) awarded the National Marine Dredging Company (NMDC) a USD 56.9 mn (AED 208.8 mn) contract for a island reclamation project for Abu Dhabi’s Tamkeen, according to an ADX disclosure. The disclosure did not provide more details on the project.

AUTOMOTIVE-

US’HummingbirdEV to establish new manufacturing facility in the UAE: US-based EVsystem provider HummingbirdEV has partnered with India-based, UAE-backed, global investments and advisory firm IBMC Group to open a microfactory facility in the Emirates for the production of zero-emission commercial vehicles in the MENA and Southeast Asia regions, according to a press release. The new facility follows HummingbirdEV’s UAE office launch, and its hiring of a local operations team, which came in efforts to leverage the UAE’s trade agreements with Southeast Asia, and India in specific.

The microfactory will specialize in producing EVs for delivery services: The microfactory will focus on producing vehicles for mid-mile delivery (delivery of goods from local hubs/ports/factories to local distribution centers) and last-mile delivery (delivery of goods from the local distribution center to the end consumer), including refrigerated trucks, to meet the region’s surging demand, the statement said.

DEFENSE-

Swedish aerospace and defense company Saab will provide the UAE’s Defense Ministry with maintenance support for the GlobalEye Airborne Early Warning and Control (AEW&C) solution under an USD 190 mn (AED 697.8 mn) contract, according to a statement. The three-year agreement covers maintenance, logistics, and training services.

What’s GlobalEye? The system provides real-time information with long-range detection capabilities across air, sea, and land to enhance situational awareness and threat detection for military forces.

HEALTHCARE-

New healthcare company sets up shop in Dubai: Newly-launched NeoHealth will allow patients to meet with DHA-licensed nurses via Zoom or schedule in-person home visits for personalized medical and personal care services, according to a press release. The company’s services cover clinical care, postoperative rehabilitation, elderly and newborn care, and home testing.

Public Investment Fund’s first bond sale of 2024 was 5x oversubscribed

Strong investor appetite for PIF’s first debt sale in 2024: Saudi Arabia’s PublicInvestment Fund took a USD 5 bn senior unsecured bond issuance to market yesterday, Bloomberg reported.

The offering was 5x oversubscribed, with bankers taking orders worth USD 27 bn, an unnamed source told the business information service.

It’s just the latest addition of debt to PIF’s war chest: The fund closed in October a USD 3.5bn global sukuk issuance, two green bond offerings totaling USD 8.5 bn between 2022 and 2023, and lined up a USD 17 bn corporate facility in 2022.

This is following in the footsteps of Mexico, Indonesia, and Poland, among others, who haveraised significant debt of late as countries look to take advantage of favorable market conditions driven mainly by an ongoing drop in US yields since October.

ADX	9,680	-0.3% (YTD: +1.1%)
DFM	4,081	0.0% (YTD: +0.5%)
Nasdaq Dubai UAE20	3,869	0.0% (YTD: 0.7%)
USD : AED CBUAE	Buy 3.67	Sell 3.67
EIBOR	5.2% o/n	5.1% 1 yr
TASI	12,110	+0.9% (YTD: +1.2%)
EGX30	28,050	+1.2% (YTD: +12.7%)
S&P 500	4,839	+1.2% (YTD: +1.5%)
FTSE 100	7,464	0.0% (YTD: -3.5%)
Euro Stoxx 50	4,467	+0.4% (YTD: -0.9%)
Brent crude	USD 79.89	+1.7%
Natural gas (Nymex)	USD 2.42	-4.0%
Gold	USD 2,042.00	-0.3%
BTC	USD 39,824.64	-4.6% (YTD: -5.2%)

THE CLOSING BELL-

The DFM fell 0.01% yesterday on turnover of AED 355.4 mn. The index is up 0.5% YTD.

In the green: National International Holding (+14.4%), Dubai Taxi Company (+4.0%) and Mashreqbank (+3.0%).

In the red: Islamic Arab Ins. Company (-4.7%), Emaar (-1.8%) and Takaful Emarat (-1.8%).

Over on the ADX, the index fell -0.3% on turnover of AED 1.01 bn, while the Nasdaq closed down 0.03%.

Asian markets are flirting with the green in early trading this morning. Futures suggest shares on Wall Street and in Europe will follow suit later today.

CALENDAR

JANUARY

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

22-24 January (Monday-Wednesday): Japan Kyoto Trade Exhibition 2024, Dubai World Trade Centre.

22-24 January (Monday- Wednesday): IAAPA Middle East Trade Summit, Yas Island in Abu Dhabi.

22-26 January (Monday-Friday): WED Innovation Lab, Abu Dhabi’s Yas Acres Golf and Country Club.

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.

24-25 January (Wednesday-Thursday): WFC FinTech Dubai 2024.

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

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

29 January-30 January (Monday-Tuesday): UAE Property Forum, Tivoli Mofarrej São Paulo Hotel, Brazil.

31 January-6 February (Wednesday-Tuesday): Emirates LitFest, InterContinental Hotel Festival City.

FEBRUARY

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

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

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

2-4 February (Friday-Sunday): All Africa Festival Abu Dhabi.

2-4 February (Friday-Sunday): Abu Dhabi Youth Challenge Techstars Startup Weekend, ADGM, Abu Dhabi.

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

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

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

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

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

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

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

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

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.

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

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

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

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

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

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

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.

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

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

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

MAY

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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