{"id":93233,"date":"2024-06-26T00:00:00","date_gmt":"2024-06-26T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/govt-sells-usd-1-5-bn-in-eurobonds-dubais-property-market-is-in-for-an-unprecedented-summer\/"},"modified":"2024-06-26T00:00:00","modified_gmt":"2024-06-26T00:00:00","slug":"govt-sells-usd-1-5-bn-in-eurobonds-dubais-property-market-is-in-for-an-unprecedented-summer","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/06\/26\/govt-sells-usd-1-5-bn-in-eurobonds-dubais-property-market-is-in-for-an-unprecedented-summer\/","title":{"rendered":"Gov\u2019t sells USD 1.5 bn in eurobonds + Dubai\u2019s property market is in for an \u201cunprecedented\u201d summer"},"content":{"rendered":"

Good morning, friends, and welcome to an uncharacteristically calm hump day.<\/strong> We say calm despite the big story of the day being a blockbuster USD 1.5 bn eurobond offering the government took to market yesterday amid strong investor demand \u2014 and the usual smattering of M&A news.<\/span><\/p>\n

^^ We have these stories and more in this morning\u2019s newswell, below.<\/p>\n

WATCH THIS SPACE-<\/p>\n

<\/a> #1- Dubai\u2019s property sector is expected to record an \u201cunprecedented\u201d <\/strong>USD 33 bn (c.AED<\/strong> 121 bn<\/strong>) in sales during the summer season<\/strong>, up 15-20% y-o-y from the 2023 summer season, according to real estate brokerage W Capital<\/a>. \u201cDubai real estate sector sales are heading to unprecedented levels during the summer season. The market has reached maturity in recent years, so every summer season records higher sales than the one before,\u201d W Capital CEO Walid Al Zarooni said. <\/p>\n

It\u2019s not just the summer:<\/strong> Dubai real estate is on track to post record sales in 2024, ranging between AED 450-500 bn, following the \u201chistorical\u201d sales surpassing AED 400 bn last year. Over the first five months of 2024, the emirate saw property sales climb 25.4% y-o-y to AED 187 bn from some 66k transactions, a 30% y-o-y jump from last year. <\/p>\n

SPEAKING OF DUBAI REAL ESTATE- Dubai-based Qube Developments plans to<\/strong> introduce AED 2.6 bn (USD 680.6 mn) <\/strong>worth of properties<\/strong> in the market by the end of 2025, according to a press release<\/a>. Specializing in sustainable developments across 2.3 mn sqft in Dubai, they have already acquired 623k sqft of land.<\/p>\n

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<\/a> #2- UBS taps 10 senior bankers from Deutsche Bank and HSBC:<\/strong> Swiss bank UBS tapped HSBC veteran Rana Al Emam (Linkedin<\/a>) to assume responsibility for growing the business in Abu Dhabi, according to a press release picked up by Zawya<\/a>. Al Emam is one of three senior bankers to join UBS from Deutsche Bank and HSBC to positions in the region as UBS looks to expand its wealth management team in MENA.<\/p>\n

<\/a> #3- There\u2019s a new Abu Dhabi Family Business Index: <\/strong>Abu Dhabi\u2019s Economic Development Department and the United Arab Emirates University launched a new index measuring performance metrics for family-owned and family-controlled businesses in Abu Dhabi, the Abu Dhabi Media Office<\/a> reports. The index covers revenue, industry, employment, governance, leadership gender ratios, succession planning, longevity, and socio-economic impact.<\/p>\n

#4- Drake & Scull board steps down ahead of general assembly: <\/strong>The board of Dubai-listed contractor Drake & Skull<\/a> has resigned, calling for the election of new board members in its coming general assembly, according to a disclosure (pdf)<\/a> to the Dubai Financial Market (DFM). The meeting is reportedly set to take place a month from now, according to Zawya<\/a>.<\/p>\n

ICYMI- <\/strong>The company returned<\/a> to the DFM on 29 May, after being suspended from trading in November 2018 due to excessive financial losses and reporting violations. An ambitious restructuring plan has been underway, which seeks to write off 90% of its debt and issue<\/a> mandatory convertible sukuk. The company increased its capital to around AED 2.89 bn after raising AED 450 mn<\/a> from shareholders last month.<\/p>\n

UPDATE- <\/p>\n

Indian Cement Manufacturer UltraTech is set to acquire an additional 25% stake in Ras Al<\/strong> Khaimah White Cement<\/strong> (Rak White Cement) \u2014 equivalent to 133 mn shares \u2014 after Rak White Cement shareholders accepted the sale offer, according to a company statement (pdf)<\/a>. The additional stake purchase comes after Ultratech revised the size of their offer from its original target of a 31% stake. <\/p>\n

CLARIFICATION-<\/strong> The offering period closed on Monday after shareholders agreed to sell the stake to UltraTech before the original deadline, and was not extended until 26 July, as we suggested in yesterday\u2019s issue. <\/p>\n

ICYMI- <\/strong>Ultratech already owned a 29% stake in Rak White Cement, which it acquired in 2022 as part of their plan to expand the cement manufacturer\u2019s operations locally and globally, and to introduce new products to Rak Cement\u2019s production portfolio.<\/p>\n

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<\/a> <\/p>\n

THE BIG STORY ABROAD- <\/p>\n

An eclectic mix of stories is playing out across the front pages of the global business <\/strong>press<\/strong>, with coverage of the EU\u2019s latest bid to \u201ctame\u201d big tech playing out alongside stories about Volkswagen, Citigroup, and the prospect of war in Asia. <\/p>\n

The Financial Times is going all-in with its coverage of how European Union regulators <\/strong>are looking to bring Big Tech to heel. <\/strong>Earlier this week, the bloc accused Apple of breaking so-called \u201cgatekeeper rules\u201d<\/a>, for which they\u2019re threatening to fine the company up to 10% of its global revenues. Yesterday, they went after Microsoft<\/a> with antitrust violations over Teams.<\/p>\n

Those are just the latest charges the EU has levied against big US tech firms, and Apple <\/strong>is sending a message of its own: <\/strong>The company is delaying the rollout to users in the EU<\/a> of a bunch of new features in the new iOS due out this fall \u2014 including Apple Intelligence \u2014 because of uncertainty about how the EU will view them under the Digital Markets Act.<\/p>\n

A must read <\/strong>for those of you who want to go deeper: What are the battle lines between the EU<\/a>and Big Tech?<\/a> <\/p>\n

MEANWHILE- Volkswagen<\/strong> is getting prominent front-page play in the FT<\/a>, the Wall Street<\/a>Journal<\/a>, and Handelsblatt<\/a> after saying it will invest up to USD 5 bn in EV maker Rivian<\/strong> and the FT<\/a> says time is running out for Jane Fraser\u2019s turnaround bid at Citigroup<\/strong>.<\/p>\n

CLOSER TO HOME:<\/strong><\/p>\n