{"id":92679,"date":"2024-06-04T00:00:00","date_gmt":"2024-06-04T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/the-cost-of-floods-on-emirates-passenger-traffic-growth-etihads-ipo-and-more-from-iatas-annual-meeting\/"},"modified":"2024-06-04T00:00:00","modified_gmt":"2024-06-04T00:00:00","slug":"the-cost-of-floods-on-emirates-passenger-traffic-growth-etihads-ipo-and-more-from-iatas-annual-meeting","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/06\/04\/the-cost-of-floods-on-emirates-passenger-traffic-growth-etihads-ipo-and-more-from-iatas-annual-meeting\/","title":{"rendered":"The cost of floods on Emirates, passenger traffic growth, Etihad\u2019s IPO, and more from IATA\u2019s annual meeting"},"content":{"rendered":"

Good morning, friends. <\/strong>We have a mixed bag of news for you today, with plenty of investments in real estate and private credit leading the way \u2014 plus a bunch of forecasts for the airline industry as the IATA annual meeting draws to a close. <\/p>\n

THE BIG STORY here at home is Adnoc Logistics & Services\u2019 USD 1.04 bn acquisition of UK-based pool operator Navig8. <\/strong>Also worth your attention: Abu Dhabi Investment Authority\u2019s latest private credit investment, which saw it anchor European asset manager Pemberton\u2019s NAV financing strategy, as well as Emaar\u2019s AED 1.5 bn plans to expand Dubai Mall. <\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- Interest among real estate investors in Abu Dhabi, Sharjah, and Ras Al <\/strong>Khaimah\u2019s property markets is picking up<\/strong> as property prices continue to soar in Dubai, partner and head of Mena research at real estate consultancy Knight Frank Faisal Durrani told Khaleej Times<\/a>. Also helping spur interest are infrastructure investments and new development launches like Wynn Resorts\u2019 plans<\/a> to develop the first integrated gaming resort in the MENA region in Ras Al Khaimah at USD 3.9 bn. <\/p>\n

Residential prices in Abu Dhabi have remained relatively flat over the past four years<\/strong>, Durrani says, adding that \u201cthis stability, combined with the fact that prices in Abu Dhabi are, on average, about a third cheaper than Dubai, [\u2026] has contributed to rising transactional activity,\u201d with the emirate logging a 75% y-o-y surge in total transactions in 2023, against neighboring Dubai\u2019s 38% y-o-y increase in the same period.<\/p>\n

Stable prices in Abu Dhabi are also pushing tenants to ditch rentals for ownership of properties, <\/strong>according to Durrani. \u201cInternational demand too has crept up, with the proportion of international buyers [\u2026] for Aldar\u2019s home sales rising from 3% two years ago to 28% last year.\u201d<\/p>\n

ICYMI- <\/strong>We had detailed coverage<\/a> of Knight Frank\u2019s Destination Dubai report last month, which dives into investor sentiment for the three emirates among high net worth individuals. <\/p>\n

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#2- Emirates Airlines is reviewing its contingency plans after the April floods cost it AED <\/strong>400 mn <\/strong>in damages and claims, Emirates chief Tim Clark told a media briefing at the International Air Transport Association (IATA) meeting in Dubai, according to the National<\/a>. \u201cWe've got to be far more aggressive, if you can call it that, and if necessary, stop the operations and [grapple] with all the fallout,\u201d he said. The airline needs to spend more on manpower, ground equipment, and training in order to be more prepared if a similar crisis happens again, Clark added.<\/p>\n

#3- Etihad Airways is pushing forward with plans for its IPO on the ADX<\/strong>, with the company \u201cworking very hard to make it happen whenever it is the time,\u201d Etihad CEO Antonoaldo Neves told Bloomberg in an interview (watch, runtime: 4:34<\/a>). Etihad owners told Neves to run the company as if it were listed, he adds in the interview. <\/p>\n

REMEMBER-<\/strong> ADQ is considering listing Etihad<\/a> on the public market \u201cas soon as this year,\u201d with the specific timing and size of the offering still undecided. ADQ is eyeing going after both a traditional IPO and direct listing, and has tapped banks<\/a> to advise on its planned IPO on the ADX. Etihad would be the first major Gulf carrier to trade publicly if the IPO goes through.<\/p>\n

<\/a> #4- ADGM to overhaul property regulations: <\/strong>The Abu Dhabi Global Market (ADGM) has proposed amendments and new rules to its real property regulatory framework in a recently published consultation paper (pdf)<\/a>. These regulatory updates aim to \u201caddress market needs and ensure [that ADGM] stays aligned with market developments,\u201d the financial center said in a statement<\/a>. ADGM has published the paper to gather feedback from all ADGM-based organizations and investors on the proposed regulations, with the deadline for submitting comments set for 19 June.<\/p>\n

What is ADGM proposing? <\/strong><\/p>\n