Good morning, lovely people. We have a tight issue for you this morning, with the newsflow remaining slow — in UAE terms — as conference season rumbles on.

The dominant theme of today’s issue? M&A. We have news of a rejected takeover bid by Dubai-based infrastructure firm Sidara — formerly Dar Group — of British multinational John Wood Group; Mubadala-owned Spanish oil refiner Cepsa divesting its upstream assets in Peru in a bid to transition towards green energy; and more on Phoenix’s acquisition of Rekt and Taqa’s potential takeover of Spain’s Naturgy.

PUBLIC SERVICE ANNOUNCEMENTS-

#1- Your taxi ride in Dubai just got a little more expensive: Dubai Taxi has announced a new rate of AED 2.09 per km for taxi fares in Dubai, up from AED 1.97 per km, according to the company’s website. Fare hikes come on the back of fuel prices climbing for the fourth consecutive month in May, marking a seven-month high. The company left base rates unchanged at AED 12.

#2- The Dubai Metro is set to resume normal services at several stations affected by the storm on 28 May, Dubai’s Roads and Transport Authority (RTA) said in a statement. The Passive, Equity, Mashreq, and Energy metro stations will resume their normal operations after undergoing maintenance and safety tests.

Until then, you can catch the bus instead: The RTA will deploy over 150 buses on three routes during metro operation hours until operations resume, it said. Bus services grid passengers commuting from Business Bay Metro Station to several other key stations.

#3- Mercedes-Benz is recalling over 2.5k SUVs in the UAE due to a transmission issue, specifically in GLS/GLE models from 2019 to 2023 with the M256 engine and automatic transmission NAG3, Khaleej Times reports. Local importers across the country are coordinating the recall, reaching out to affected vehicle owners for necessary checks and repairs.

HAPPENING TODAY-

#1- Spinneys’ shares will begin trading on the DFM today under the ticker SPINNEYS. The IPO raised AED 1.38 bn, with over AED 71 bn in orders, as well as AED 275 mn from cornerstone investors. The final share price was set at AED 1.53 per share, giving the company a market cap of AED 5.51 bn.

Advisors: Our friends at HSBC Middle East are joint global coordinators alongside Emirates NBD Capital and Merrill Lynch. Our friends at EFG Hermes are joint bookrunners, while Rothschild Middle East is independent financial advisor. Emirates NBD Capital is also acting as listing advisor, while Emirates NBD Bank is lead receiving bank. Other receiving banks include our friends at FAB as well as MBank and Commercial Bank of Dubai.

#2- Sharjah trade missions in India: A trade delegation from the Sharjah Chamber of Commerce and Industry led by Chairman Abdullah Sultan Al Owais landed in India earlier this week and will be there until Friday, 10 May, Wam reports. The mission will be looking to strengthen economic ties and explore potential investments.

The Sharjah-India Business Forum, held as part of the trade mission, featured around 160 business meetings seeking to attract Indian businessmen to Sharjah, Wam writes. The delegation met with:

• Indian Investment promotion agency Guidance Tamil Nadu to explore ways to strengthen bilateral economic and investment cooperation between both nations;
• The Madras Electrical Traders Association Chennai, comprising companies in the electricity trade sector, to explore cooperation and investments in the energy and electrical industries.

A Dubai International Chamber trade mission is also making the rounds in Indonesia and Vietnam to help local companies grow in these markets, Wam reports.

#3- The Arab Tourism Media Awards is on its final day at the Dubai International Convention and Exhibition Centre, state news agency Wam reports. The Arab Union of Tourist Media will present awards to 34 Arab personalities, tourism institutions, and cities that have contributed to the tourism industry in the Arab region.

#4- TheAnnual Investment Meeting (AIM) Congress is also on its final day at the Abu Dhabi National Exhibition Center. Gathering senior government officials and industry experts, the summit will focus on exploring means of strengthening the economy under the theme Resilient, Sustainable Economic Growth – Creating a Healthy and Prospective Investment through FDI and FPI.

#5- The two-day Innovative Finance Expo wraps today at the Jumeirah Emirates Towers in Dubai. The event will bring together fintech and blockchain companies and experts to serve as a knowledge exchange platform, showcasing the latest developments in the financial sector, including DeFi crypto, foreign exchanges, payment, and finance technologies.

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WATCH THIS SPACE-

#1- The UAE is expected to reel in USD 30 bn in foreign direct investment (FDI) inflows in 2024, International Investors Council Secretary General Jamal Al Jarwan said during a panel at the AIM Congress 2024 in Abu Dhabi, Khaleej Times reports. Despite regional tensions, the Emirates remains “the least risky market in the world,” Al Jarwan said. This would see inflows increase 30% from the USD 23 bn recorded last year.

REMEMBER- The government is looking to draw in USD 150 bn worth of FDI inflows by 2031.

#2– The ADX is expecting three new listings in the second half of 2024, including two companies from a sector currently not yet represented in the market, ADX CEO Abdullah Al Nuaimi told {Asharq Business}. In 2023, the exchange welcomed six new companies.

A look at our IPO pipeline: Supermarket chain operator LuLu Group International is reportedly gearing up for listing in Abu Dhabi, with a possible dual listing on the Riyadh Stock Exchange. Edtech firm Alef Education has also already tapped banks to advise on its planned ADX IPO, while Etihad Airways’ highly anticipated listing — which could become the first by a Gulf carrier — could take place by year’s end.

#3- An AED 16.8 bn transport strategy…: Dubai’s Executive Council approved a transport strategy yesterday that aims to nearly double the contribution of logistics and transport to the emirate’s economy to AED 16.8 bn, state news agency Wam reported late yesterday. The strategy will also aim to increase tech adoption in infrastructure by 75%, reduce carbon emissions in the sector by 30%, and improve operational efficiency by 10%.

…and reduced traffic flows? The council also approved a plan to reduce traffic in the emirate by increasing public bus routes — improving trip times by 59% — and expanding remote work policies, as well as encouraging students to use school transport.

ALSO- The council approved a strategy aiming to increase Dubai’s data capacity fivefold, boosting “value addition” by AED 14.3 bn annually, according to Wam.

#4- Gulf Pharma Industries (Jalphar) plans to expand to key markets as part of its new strategic expansion plan to accelerate revenue growth by “compressing the times it takes to internationalize products,” Julphar’s senior executives said in a statement (pdf). The new plan will see the pharma firm shift to a parallel market model, moving away from its previous approach of developing and launching products locally in the UAE before exporting them.

Jalphar’s income took a blow last year amid regional tensions: The pharma company’s sales were impacted in 2023 by ongoing regional headwinds, including Egypt’s currency devaluation, the civil war in Sudan, Iraq’s import restrictions, and Algeria’s nationalization efforts. The company’s board cited these as factors behind the modest 1.4% y-o-y growth in sales last year (pdf).

Background: Julphar widened its net losses to AED 98.5 mn last year, from AED 31.7 mn in 2022, according to its financial statements (pdf).

DATA POINTS-

#1- The UAE held the second-largest share (33%) of Fitch-rated ESG sukuk globally in 1Q 2024, following Saudi Arabia’s 45%, according to a statement. Outstanding global ESG sukuk rose 60.3% y-o-y to USD 40 bn across all currencies during the quarter, constituting 12% of global outstanding sukuk in hard currencies.

#2- Formula 1 Etihad Airways Abu Dhabi Grand Prix 2024 contributed AED 1.16 bn to Abu Dhabi’s economy in 2023, making it the region’s largest sporting and entertainment event, the Abu Dhabi Media Office reports, citing event organizer Ethara.

THE BIG STORY ABROAD-

The war in Gaza and a dysfunctional global EV market are two of the big stories that you need to know this morning.

#1- Joe Biden has warned Israel that he will cut off shipments of offensive weapons (we’re … not sure what weapon isn’t offensive?) to Israel “if they go into Rafah.”

In his own words: “I made it clear that if they go into Rafah — they haven’t gone in Rafah yet — if they go into Rafah, I’m not supplying the weapons that have been used historically to deal with Rafah, to deal with the cities — that deal with that problem,” he said in an {exclusive with CNN}.

The story is leading front pages around the world: Politico | Financial Times | Wall StreetJournal | Bloomberg | Reuters.

#2- Those Chinese-made EVs you see plying Cairo’s streets? They’re part of a global problem. Sales of EVs are up sharply at BMW — and the Bavarian carmaker saw its margins collapse in 1Q as a result, reports Germany’s Handelsblatt. The culprit? Competition is rising in a softening market in which many players have tons of excess product, forcing it to cut selling prices.

A lot of that oversupply is coming from China, where companies are now pushing EVs on other markets — including here in the Middle East. That has even friendly trade partners on edge and saw the European Union this week threaten to impose sanctions on Chinese EVs unless Beijing takes action in the short term, Bloomberg notes. EC boss Ursula von der Leyen said China is “flooding our market with massively subsidized electric cars,” Reuters adds.

Chinese companies could look to start producing EVs in other countries in a bid to ease tensions — much as Japanese automakers did to smooth-out economic relations with the US back in the 1980s. Two cases in point: EV leader Byd as well as Neta Auto plan to start producing EVs in the lucrative Indonesian market, with Byd saying it will invest USD 1 bn in its plant, the Financial Times reports.

AND- Top French business daily Les echos reports that European officials are worried about deep fakes and disinformation campaigns heading into the 6-9 June European Parliament elections.

OUR NEXT CONFERENCE IN CAIRO-

Foreign investors are falling in love with Egypt again… Foreign investors we speak with (debt, equity, and strategic alike) have growing appetite for Egypt. They’re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that’s taking shape after the float of the EGP, and its competitive advantages are clear to many of them: It’s a massive consumer opportunity and a regional export hub of tomorrow.

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: Spark conversations about a future that sees Saudi Arabia, Egypt, and the the UAE at the heart of a more vital Middle East economy — and provide an early, actionable roadmap for those who are “long Egypt.”

We’ll be talking with you about the agenda over the coming couple of weeks. It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow’s opportunities — and who aren’t afraid to answer some tough questions.

 *** Interested in attending? Tap or click here to let us know. Seating is limited.

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CIRCLE YOUR CALENDAR-

The Abu Dhabi Global Healthcare Week is set to take place between 13-15 May at the Abu Dhabi National Exhibition Centre. Hosted by Abu Dhabi’s Department of Health, the event will bring together around 5k attendees, 100 exhibitors, and 1k delegates specialized in healthcare. Featured topics include AI, biotech, and genomics. You can find the event brochure here (pdf).

The Acres Real Estate Exhibition is set to take place between 16-19 May at the Dubai World Trade Center. The event will gather leading property developers, investors, brokers, and experts, to showcase the latest projects and technologies in the real estate industry.

The Middle East Petroleum and Gas Conference is set to take place from 20-22 May in Dubai, hosted by the Emirates National Oil Company and under the organization of S&P Global Commodity Insights. The theme of the conference is “Evolving Core Energy Markets within a Sustainable Landscape.”

The Dubai Business Forum in Beijing, China is set to take place between 21-22 August, Wam reports. Hosted by Dubai Chambers, the event aims to attract foreign direct investments by presenting investment prospects.

The Gulf Petrochemicals and Chemicals Association Supply ChainConference is scheduled for next Wednesday and Thursday, 15-16 May at the Address Sky View Hotel in Dubai. The conference will bring together industry players under the theme Harnessing Connectivity for a Sustainable Tomorrow, discussing supply chain connectivity and AI integration in the industry.

The International Exhibition of National Security and Resilience2024 Conference is happening on 21-22 May 2024 at Adnec Abu Dhabi, coinciding with the International Exhibition of National Security and Resilience, Wam reports. The conference is set to gather top CEOs, leaders, and experts from different fields to discuss security challenges and promote strategic partnerships.

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