{"id":101188,"date":"2025-02-28T00:00:00","date_gmt":"2025-02-28T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/this-morning-arada-could-look-to-ipo-in-three-years-real-estate-prices-dipped-for-the-first-time-since-2022-in-january\/"},"modified":"2025-02-28T00:00:00","modified_gmt":"2025-02-28T00:00:00","slug":"this-morning-arada-could-look-to-ipo-in-three-years-real-estate-prices-dipped-for-the-first-time-since-2022-in-january","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2025\/02\/28\/this-morning-arada-could-look-to-ipo-in-three-years-real-estate-prices-dipped-for-the-first-time-since-2022-in-january\/","title":{"rendered":"THIS MORNING: Arada could look to IPO in three years + Real estate prices dipped for the first time since 2022 in January"},"content":{"rendered":"

Good morning, lovely people, and happy FRIDAY. <\/strong>It\u2019s our last issue before the start of the final month of the quarter \u2014 and of Ramadan, so Ramadan Kareem to all who observe. We hope you have a blessed weekend with your families.<\/p>\n

There is no single big story abroad this morning as the news winds down ahead of the weekend<\/strong>, though we have fresh figures on the banking sector in 2024 from Alvarez & Marsal, as well as more LNG sales and purchase agreements from Adnoc. Plus: Space42 posts its first earnings since the merger between Bayanat and Yahsat, and UAE-based venture builder Distrupt.com commits USD 100 mn to AI ventures.<\/p>\n

\u26c5WEATHER- It\u2019s a slightly cooler day today in Dubai <\/strong>with only partially sunny conditions, and temperatures peaking at 24\u00b0C, before dropping to an overnight low of 19\u00b0C. It\u2019s more of the same in Abu Dhabi<\/strong>, where the mercury peaks at 20\u00b0C before dropping to 18\u00b0C overnight. <\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- Adnoc and Taqa eye investments in Cyprus\u2019 energy sector? <\/strong>Adnoc is considering investments in Cyprus\u2019 Exclusive Economic Zone (EEZ), Energy Minister George Papanastasiou said at Investopia, Reuters<\/a> reports. While Adnoc currently favors existing assets, Papanastasiou did not rule out the possibility of a new exploration licensing round, reiterating comments he made last November<\/a>. Papanastasiou also reaffirmed Taqa\u2019s interest<\/a> in investing in the EUR 1.9 bn Great Sea Interconnector (GSI), an electricity transmission project linking Europe to Cyprus \u2014 and later to Israel \u2014 set for completion by 2030.<\/p>\n

Background: <\/strong>Adnoc and Cypriot energy officials met last summer<\/a> to explore investments in the island\u2019s emerging natural gas sector, particularly within the EEZ. The UAE and Cyprus discussed stronger trade, investment, and energy ties at a diplomatic meeting in September<\/a>. <\/p>\n

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<\/a> #2- Sharjah-born property developer Arada is eyeing a potential IPO in<\/strong> three years\u2019 time, <\/strong>Founder and CEO Ahmed Alkhoshaibi told The National<\/a>, without disclosing the potential size or venue of the transaction. He noted that the company\u2019s decision to follow through on its IPO plans will depend largely on market conditions as well as its own financial performance over the coming years. Arada\u2019s net income after tax grew nearly three-fold y-o-y in 1H 2024 to AED 125.8 mn, according to its latest results (pdf)<\/a>. <\/p>\n

IN CONTEXT- <\/strong>Arada is looking to capitalize on increased demand for Emirati real estate assets, after its USD 1.52 bn Masaar 2 project sold out within just three hours of opening. \u201cIndians remained the biggest percentage as an individual nationality and the rest is divided between westerners, Eastern Europeans and Arabs, GCC and UAE nationals,\u201d the CEO said. <\/p>\n

Also in the pipeline: <\/strong>The real estate developer wants to scale beyond its core Sharjah and Dubai markets, with plans to expand into Ras Al Khaimah, Abu Dhabi, and Saudi Arabia, Alkhoshaibi said. It also recently launched an office in Australia<\/a>, with plans to develop AED 6 bn in Sydney. <\/p>\n

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<\/a> #3- Have real estate prices finally hit a breaking point? <\/strong>Dubai\u2019s real estate prices fell for the first time since summer 2022, dipping 0.57% in January, signaling a potential shift toward stabilization, Trade Arabia<\/a> reports, citing Property Monitor data. Average prices dropped to below AED 1.5k per sq ft during the month, despite January marking a record 14.4k transactions.<\/p>\n

REMEMBER- <\/strong>Earlier this week<\/a>, Moody\u2019s forecasted a dip or stabilization in Dubai\u2019s property market over the next 12 to 18 months, as developers face rising construction costs and potential delivery delays, alongside a large pipeline of pre-sales set for completion over the next two to three years. A Deloitte report<\/a> similarly projected that residential price and rent growth may slow by year-end as new supply enters the market, while Knight Frank previously forecasted that Dubai\u2019s residential prices will rise by 8% in 2025<\/a>, down from a 20% surge in 2024, with an increase in supply over the next two to three years to contribute to market stabilization.<\/p>\n

New supply entered the market as off-plan activity remained strong in January<\/strong>, with 53 new launches from 37 developers adding 12.4k units. Still, sales volumes declined 4.6% from December 2024, with off-plan transactions falling 17.7% m-o-m, making up 52% of total sales with 7.6k transactions. Mortgage activity increased 6.8% m-o-m, with 4.1k loans secured, while title deed sales rose 15.7%, accounting for 47.6% of all transactions.<\/p>\n

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<\/a> #4- Dubai\u2019s <\/strong>Virtual As<\/a><\/strong>sets Regulatory Authority<\/a><\/strong> (VARA) plans to introduce new <\/strong>regulations in 1Q 2025,<\/strong> CEO Matthew White told The Standard<\/a>. Issuers and service providers may be required to disclose the identities of major crypto holders, known as \"whales,\" to enhance consumer protection and improve transparency. Since many crypto holders use pseudonyms, this measure could help authorities track illicit activities like money laundering. Issuers may also be mandated to define redemption mechanisms, disclose the composition of their reserves, and undergo audits to ensure investors are fully informed of potential risks.<\/p>\n

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#5-<\/strong> More debt issuances from local banks? <\/strong>Our friends at Mashreq and Ajman Bank are the latest to approve new debt programs, after Emirates NBD<\/a> and its Islamic finance unit Emirates Islamic did the same earlier this week. <\/p>\n