{"id":96661,"date":"2024-10-10T00:00:00","date_gmt":"2024-10-10T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/this-morning-adia-to-participate-adanis-usd-2-bn-share-sale-dubai-will-be-90-cashless-by-2026\/"},"modified":"2024-10-10T00:00:00","modified_gmt":"2024-10-10T00:00:00","slug":"this-morning-adia-to-participate-adanis-usd-2-bn-share-sale-dubai-will-be-90-cashless-by-2026","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/10\/10\/this-morning-adia-to-participate-adanis-usd-2-bn-share-sale-dubai-will-be-90-cashless-by-2026\/","title":{"rendered":"THIS MORNING: Adia to participate Adani\u2019s USD 2 bn share sale? + Dubai will be 90% cashless by 2026"},"content":{"rendered":"

Good morning, wonderful people. <\/strong>We have yet another packed issue for you, filled with noteworthy updates on infrastructure, debt, and real estate. <\/p>\n

The Hafeet Rail<\/strong> link between Oman and UAE just secured USD 1.5 bn in debt financing<\/strong>, while in other debt news, Dubai Islamic Bank<\/strong> is gearing up for a USD 500 mn AT1 sukuk sale<\/strong>. Meanwhile, Dubai\u2019s real estate market<\/strong> is on fire with record sales<\/strong> in 3Q 2023, but Abu Dhabi sales<\/strong> take a tumble<\/strong>. <\/p>\n

WEATHER- Dubai <\/strong>will see the mercury hit 37\u00b0C before cooling to an overnight low of 29\u00b0C. Over in Abu Dhabi<\/strong>, the mercury peaks at just 33\u00b0C with an overnight low of 29\u00b0C. <\/p>\n

WATCH THIS SPACE- <\/p>\n

<\/a> #1- Acelen grows anxious as sale to Petrobras stalls: <\/strong>Investors in Acelen, the company Mubadala set up to run the Mataripe oil refinery in Brazil, are getting antsy as talks for a potential sale to Petrobras drag on with no progress, Bloomberg<\/a> reports, citing people it says are familiar with the matter. Acelen\u2019s bonds have slipped around USD 0.08 in the past two months, with no major updates provided to debt holders during a September earnings call. Yields have also surged to their highest levels since February.<\/p>\n

REFRESHER #1- <\/strong>Brazil's state-controlled oil firm dialed back expectations of a potential buyback of the Mataripe refinery from Mubadala in August<\/a>, saying the transaction is \u201cnot a priority.\u201d Petrobras was said to be finalizing due diligence in July<\/a> to re-acquire the Mataripe refinery from Mubadala, after selling it for USD 1.65 bn in 2021. <\/p>\n

REFRESHER #2- <\/strong>Rumors of a potential buyback began circulating earlier this year<\/a> when Mubadala signed an MoU<\/a> with Petrobras to partner on a USD 13.5 bn biofuels project<\/a> in Brazil. <\/p>\n

Analysts think the buyback is still on: <\/strong>\u201cWe think the M&A is more likely to happen than not,\u201d Balanz Analyst Ezequiel Fernandez told the business information service, adding that Petrobras downplaying its interest in the transaction could just be a negotiation tactic.<\/p>\n

\n

<\/a> #2- Adia could potentially partake in Adani\u2019s USD 2 bn QIP:<\/strong> Adani Enterprises is in talks with Abu Dhabi Investment Authority (Adia), along with other GCC sovereign wealth funds to raise USD 2 bn from a qualified institutional placement (QIP), which was approved by its board in May, Moneycontrol<\/a> reports, citing people it says are familiar with the matter. The sources added that the sale is expected to launch this month. <\/p>\n

The company launched the first USD 500 mn tranche of the sale yesterday<\/strong>, Moneycontrol<\/a> reports, adding that the figure could be larger due to the addition of a green shoe option. <\/p>\n

O<\/strong>ther potential participants:<\/strong> Adani has reportedly tapped some 12 institutional investors to buy into the share sale, including Qatar Investment Authority and US investment manager GQG Partners, according to Moneycontrol.<\/p>\n

T<\/strong>his would mark Adia\u2019s second investment in Adani this year<\/strong>, following the sovereign wealth fund\u2019s participation in the company\u2019s USD 1 bn secondary share sale in July<\/a>, which attracted demand from 50 other institutional investors.<\/p>\n

\n

<\/a> #3- Wynn Resorts forecasts USD 1.66 bn revenue from Marjan gaming reso<\/strong>rt: <\/strong>Hotel and casino operator Wynn Resorts expects its upcoming USD 3.9 bn project on the Marjan Islands in Ras Al Khaimah to generate USD 1.66 bn in gross gaming revenue annually, the company revealed in an investor update (pdf)<\/a>. The resort is expected to capture a 33% market share of the UAE\u2019s USD 3-5 bn<\/a> gaming market.<\/p>\n

Wynn plans to spend a total of USD 5.1 bn on the gaming resort<\/strong>, with USD 1.1 bn coming from equity and USD 2.4 bn in debt financing currently being raised, with an eye to close it by year\u2019s end. The company had already funneled USD 514 mn<\/a> as of August into the project, which is set to be the first integrated gaming resort in the Mena region and is slated for handover in 1Q 2027.<\/p>\n

ICYMI- <\/strong>The General Commercial Gaming Regulatory Authority awarded the UAE\u2019s first commercial gaming operator's license to Wynn earlier this week<\/a>. The license will be valid for 15 years and is renewable, with a blended tax rate of 10-12%, according to the investor update.<\/p>\n

\n

<\/a> #4- <\/strong>Dubai to go 90% cashless by 2026: <\/strong>Digital Dubai launched its Cashless strategy, with a plan to make 90% of transactions in the emirate cashless by 202 in a bid to boost economic growth by over AED 8 bn, according to a Dubai Media Office statement<\/a>. The strategy, unveiled earlier this month alongside other 2033 initiatives<\/a>, aims to establish Dubai as one of the top five cashless cities globally. <\/p>\n

\n

<\/a> #5- Etihad Airways plans to onboard an additional 600 Emirati pilots by 2030<\/strong>, as part of its relaunched Cadet Pilot training program, the company\u2019s chief human resources and corporate affairs officer Nadia Bastaki told Al Ain<\/a>. The two-year program aims to graduate 60 pilots annually until 2030. It has seen some 400 Emirati pilots graduate since launching in 2007.<\/p>\n

The move comes as part of Etihad\u2019s expansion plans<\/strong>, with the airline planning to double its fleet size and triple passenger numbers by 2030. In June<\/a>, Etihad Airways revealed plans to launch an international roadshow to recruit hundreds of pilots in 2024 and 2025. The company also added 16 more aircrafts<\/a> to its 92 fleet in 1H, and is expecting to add more than 20 new generation aircraft to its fleet in the next 18 months.<\/p>\n

ALSO- The airline is plann<\/strong>ing to reveal a significant network expansion in late November and early next year <\/strong>as it prepares to receive its first Airbus A321LR, according to Aviation Week<\/a>. \u201cThe date to watch out for is November 25, when we will announce 11 new cities. And then, next year \u2014 around January or February \u2014 we're going to announce 20 more cities,\u201d Etihad Airways Chief Revenue and Commercial Officer Arik De told delegates at the summit.<\/p>\n

REMEMBER- The airline has an IPO in the works: <\/strong>Etihad\u2019s parent company ADQ is potentially going after both a traditional IPO and direct listing on ADX<\/a> no sooner than in 2025, with the offering expected to raise as much as USD 1 bn.<\/p>\n

HAPPENING TODAY- <\/p>\n

#1- Dubai International Chamber is now on the Turkey leg of its <\/strong>trade mission<\/a><\/strong> to Serbia and Turkey that runs until tomorrow, aiming to help UAE businesses identify potential investments in Turkey. The program includes bilateral business meetings designed to foster cooperation, expansion, and the establishment of new trade and investment agreements between companies. <\/p>\n

#2- <\/strong>The World Air Taxi Congress<\/a><\/strong> is on its final day at the Grand Hyatt Dubai<\/strong>, showcasing the latest in aerial technologies, including eVTOLs, next-generation STOLs, eCTOLs, delivery and cargo drones, and the role of autonomy and AI in aviation.<\/p>\n

#3- Dubai Chambers\u2019 Center for Responsible Business is hosting the <\/strong>annual Dubai<\/a><\/strong><\/a><\/strong>Chambers Sustainability Week 2024<\/a><\/strong> until Friday. <\/strong>The activities of the week will focus on the intersection of technology and sustainability.<\/p>\n

#4- The <\/strong>Global Rail Transport Infrastructure Exhibition and Conference<\/a><\/strong> kicked off yesterday <\/strong>and runs until tomorrow at Adnec Abu Dhabi<\/strong>. The event gathers leaders and specialists from the rail and transport industries from the region and beyond to discuss smart mobility, greentech, and automation.<\/p>\n

#6- <\/strong>The Regional Data and Community Development Forum<\/a><\/strong> is on its second and final day <\/strong>at Al Jawaher Reception and Convention Center. Organized by the Department of Statistics and Community Development, the forum aims to bring together global experts and decision-makers to discuss the role of data in promoting sustainable social development.<\/p>\n

#7- The National Summit on Financial Crime Compliance is on its second and final day <\/strong>in Abu Dhabi, Wam<\/a> reports. Organized by the Central Bank of the UAE, the summit brings together local regulatory bodies and global law enforcement authorities to discuss frameworks for combating financial crimes.<\/p>\n

#8- <\/strong>The Space Research Conference 2024<\/a><\/strong> wraps up today. <\/strong>The event is part of the World Space Week activities, held from 8-10 October and organized by the UAE Space Agency. The conference is designed to raise awareness and align research initiatives with the strategic priorities of the UAE's space sector.<\/span><\/p>\n

EDITOR'S NOTE- This story was amended on 13 October, 2024 to remove incorrect information.<\/font><\/i><\/p>\n

HAPPENING NEXT WEEK-<\/span><\/p>\n

The Central Bank of the UAE (CBUAE) will offer up to AED 16.5 bn in four M-Bills at an <\/strong>auction on Monday, 14 October<\/strong>, according to a statement (pdf)<\/a> from the bank. The bills \u2014 all tap issues \u2014 will have tenors ranging from 28 to 252 days.<\/p>\n

Decoding central bank speak<\/strong>: M-bills are short-term securities issued in AED by the CBUAE at no interest. The bonds typically have maturity dates of one to 12 months and are not retrievable through any other listing. A tap issuance allows the CBUAE to more finely control money supply by allowing it the flexibility to continue selling bills past the initial auction date.<\/p>\n

PUBLIC SERVICE ANNOUNCEMENTS-<\/p>\n

#1- Abu Dhabi\u2019s <\/strong>Integrated Transport Center (Abu Dhabi Mobility)<\/a><\/strong> will now offer driver <\/strong>and vehicle <\/strong>licensing services<\/strong>, according to the Abu Dhabi Media Office<\/a>. The services will be accessible through various digital platforms and contact centers, in addition to the current service centers in Abu Dhabi City, Al Ain, and Al Dhafra.<\/p>\n

#2- Emirates canceled all flights to and from Tehran in Iran and Baghdad and Basra <\/strong>in Iraq until 16 <\/strong>October <\/strong>in the wake of rising regional tensions, according to an Emirates travel update<\/a>. Passengers transiting through Dubai with final destinations in Iraq and Iran will not be accepted for travel from their point of origin until that date.<\/p>\n

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

Hurricane Milton in the US and the looming Israeli retaliation on Iran <\/strong>are still getting top billing in the foreign press, as dozens were killed by Israeli airstrikes in an escalation of violence in northern Gaza. Meanwhile, Hurricane Milton is approaching landfall as it makes its way to Florida, though it has dropped to a Category 4 storm. (France24<\/a> | Reuters<\/a>) <\/p>\n

US President Joe Biden and Israeli Prime Minister Benjamin Netanyahu spoke yesterday<\/strong> as Biden looks to rein in the latter\u2019s response to Iran\u2019s airstrikes on Israel, and while it was the first phone call in over a month, there were no clear conclusions on next steps. Israeli Defense Minister Yoav Gallant promised a \u201clethal, precise, and surprising\u201d retaliation against Iran, Reuters<\/a> reports. <\/p>\n

The US is trying to propose a milder response<\/strong>, like a fresh round of sanctions against Iran, sources told Bloomberg<\/a>. <\/p>\n

IN THE BUSINESS PRESS- Several stories are getting attention: <\/strong><\/p>\n