The Daily Circuit
Today in The Daily Circuit we’re looking at the UAE’s trade agreement with Ukraine, NEOM’s new financing deal, ADQ’s rarely seen balance sheet and UAE Ambassador Yousef Al Otaiba’s vision for AI cooperation with the U.S. But first, let’s take stock of stocks in Dubai.
The Gulf’s capital markets have remained hubs of activity amid inflation, geopolitical risk and higher interest rates. The how and why of this story will be in focus tomorrow in Dubai as the two-day Capital Market Summit gets underway. The Dubai Financial Market is set to host government officials, investment bankers and business leaders to identify what’s driving the market and explore trends in sustainable investing, fintech, digital transformation and market resilience.
Helal Saeed Al Marri, Chairman of the DFM, is slated to be in conversation with May Nasrallah, Founder and Executive Chair of corporate advisory firm deNovo Partners on Wednesday. Also on the agenda are Jim DeMare, President of Global Markets at BofA Securities; Claire Suddens-Spiers, a 27-year veteran and Co-Head of Equity Market Solutions at Rothschild & Co.; and Michael Wilson, Chief U.S. Equity Strategist and Chief Investment Officer at Morgan Stanley.
The DFM reported strong quarterly earnings today, more than doubling net profit year-on-year to $24 million amid a surge in foreign investor activity. The exchange operator attracted 44,259 new investors, of which 85% were from abroad. Institutional investors’ share of trading value reached 65%. The imminent IPO of Spinneys on May 9 on the DFM is expected to raise up to $376 million for the UAE and Oman grocery retailer. The total number of shares offered to retail investors has been increased by 7% as of today on strong investor demand.
📰 Developing Stories
UKRAINE PACT
After signing 14 free trade agreements over the past two years, the UAE has reached final terms on a pact with Ukraine that offers a significant boost to the war-torn country’s economy. The draft Comprehensive Economic Partnership Agreement (CEPA) will reduce tariffs between the two nations and remove other trade barriers. It also aims to boost Ukraine’s supply chain to the Middle East and North Africa for its major exports, including grains, machinery and metal. “The agreement will play an active role in the revitalisation of the Ukrainian economy, and we look forward towards the ratification of the deal,” Dr. Thani Al Zeyoudi, the UAE Minister of State for Foreign Trade, said in a statement on Monday. The UAE has signed CEPA deals with India, Turkey, Israel, Indonesia, Cambodia, Georgia, Mauritius, Kenya, the Republic of Congo, Colombia and Costa Rica. It is close to signing an agreement with South Korea, while talks are ongoing with Serbia, Vietnam, the Philippines, New Zealand and Ecuador.
EQUITABLE AI
For the Middle East, data is the new oil, according to UAE Ambassador to Washington Yousef Al Otaiba. Hailing the $1.5 billion AI deal Microsoft signed this month to invest in artificial intelligence with Abu Dhabi’s G42 company, Al Otaiba writes in a Bloomberg opinion piece that “governments must race to realize the technology’s potential – and limit its harm.” The UAE, U.S. and other partners are working together on new regulatory frameworks to facilitate public-private sector collaboration on AI and ensure its ethical use, Al Otaiba writes, pledging hundreds of billions of dollars from his country for the effort. At the same time, the world must not allow the massive amounts of energy needed for AI data centers to compromise climate priorities and the shift to renewable power, according to the ambassador. “AI will be the lifeblood of future societies,” Al Otaiba writes. “To ensure that data is truly destiny in the new age, we must join together to promote AI’s ethical and equitable benefits for all.”
💲 Sovereign Circuit
ADQ: The Abu Dhabi sovereign wealth fund is planning to issue its first dollar-denominated bonds, Bloomberg reports. The bond prospectus offered a rare glimpse of ADQ’s financials, revealing that the fund made a net profit in 2023 of $4.3 billion, compared to $3.3 billion in 2022. ADQ employs 85,000 people in the UAE and has directly contributed 10% to the emirate’s non-oil economy while supporting 22% of wider non-oil GDP.
Public Investment Fund: Saudi Arabia’s PIF-backed NEOM mega-project obtained a $2.6 billion revolving credit facility from Saudi National Bank, Riyad Bank and seven other lenders to diversify its financing.
Mubadala: Turkish grocery delivery company Getir will withdraw from European and U.S. markets to focus on Turkey with new financing from Mubadala.
↪↩ Closing Circuit
🏝️ Island Homes: Aldar Properties, Abu Dhabi’s biggest developer, plans to build 7,000 luxury homes in its $6.8 billion project on the city’s Al Fahid Island, Bloomberg reports. The listed developer reported an 81% jump in first-quarter net profit today on higher sales amid strong momentum for the real estate industry in the UAE.
🇨🇳 Shipping LNG: QatarEnergy signed an agreement with China State Shipbuilding Corp. for the construction of 18 QC-Max size vessels to carry liquified natural gas (LNG).
🐔 Food Factory: Saud Arabia’s Almunajem Foods will build a $42 million factory in Jeddah to produce poultry, red meat, seafood and dairy products.
🌀 Malaysian Renewables: Saudi Arabia’s ACWA Power may invest $10 billion over 10 years to develop renewable energy projects in Malaysia, the country’s Bernama news agency reports.
🗣 Circuit Chatter
🪐 Space Station: The Saudi Space Agency and the World Economic Forum will establish a Center for Space Futures as a platform for public-private collaboration on extraterrestrial projects.
🛢️ Risky Business: The UAE’s Dana Gas suspended operations at its Khor Mor gas field in Iraq’s Kurdistan region following a drone attack on its site on April 26, according to a company statement on Monday on the Abu Dhabi Stock Exchange.
☕ Deal Paused: General Atlantic and CVC Capital Partners have paused multimillion-dollar stake sales in companies operating Starbucks, KFC and other fast food brands in Indonesia and Malaysia as protests over the Israel-Hamas war disrupt business, the Financial Times reports.
🌍 Power Circuit
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and Chairman of the Dubai Executive Council, launched the Dubai Universal Blueprint for Artificial Intelligence, a yearly plan focused on harnessing technology to improve quality of life in the emirate.
Sheikh Saif bin Zayed, UAE Deputy Prime Minister and Minister of the Interior, met withKojo Boakye, Head of Operations and Public Policy for Africa, Middle East and Turkey at Meta Group, and Helen Charles, Director of Public Policy at WhatsApp, to discuss strategies for crime-fighting initiatives, with a specific focus on curbing the dissemination of drug-promoting content.
➿ On the Circuit
Kristalina Georgieva, Managing Director of the International Monetary Fund, called for more jobs for young people in the MENA region as a key driver of growth and security, speaking to The National in Riyadh on the sidelines of the special meeting of the World Economic Forum.
Sultan Ahmed bin Sulayem, Chairman and CEO of DP World Group, said the company is boosting investments in the Philippines and Malaysia.
Saudi Aramco CEO Amin Nasser said that the world’s largest oil company is looking to invest in new sources of oil, gas and other hydrocarbon energy sources, speaking at a session during the World Economic Forum’s special meeting in Riyadh.
Noel Quinn, CEO of HSBC, plans to retire, marking an unexpected departure from Europe’s largest lender which will seek to replace him by year-end.
🎶 Culture Circuit
👠 Style Launch: French fashion mag ELLE launched a new edition in Egypt this month, led by Cairo-based media veteran Susan Sabet as Editor-in-Chief and Managing Director. The website is bilingual in English and Arabic, and the first print edition will come out in September.
📷 Photo of The Day
🗓️ Circuit Calendar
Apr. 29-May 1, Riyadh, Saudi Arabia: Future Hospitality Summit. An international gathering hosted in cities around the world bringing together the most influential hospitality investors and developers. Mandarin Oriental Al Faisaliah.
Apr. 29 – May 5, Abu Dhabi, UAE: Abu Dhabi International Book Fair. A key event for the publishing industry in the Middle East and North Africa. Abu Dhabi National Exhibition Center.
Apr. 30-May 1, Abu Dhabi, UAE: Mobility Live. A conference and exhibition sponsored by the Abu Dhabi transport regulators, gathering disruptive technology developers in transportation and the public sector. Abu Dhabi National Exhibition Center.
Apr. 30-May 1, Abu Dhabi, UAE: Middle East Rail. The leading conference in the region for rail innovation, technology and strategy. Abu Dhabi National Exhibition Center.
May 1-2, Dubai, UAE: Capital Market Summit. A gathering of investors and entrepreneurs hosted by the Dubai Financial Market aimed at sparking interest in IPOs. Madinat Jumeirah.
May 5-8, Los Angeles: Milken Institute Global Conference. Politicians, financiers, media and philanthropists convene to discuss challenges across themes like innovation and technology, health and medical research, diversity and inclusion. The Beverly Hilton.
May 6-7, Dubai, UAE: Dubai FinTech Summit. The second annual gathering of financial leaders meet to spotlight innovation and discuss disruptions in the industry, organized by the Dubai International Financial Centre (DIFC). Madinat Jumeirah.
May 7-9, Abu Dhabi, UAE: AIM Congress. The Annual Investment Meeting will convene inter-governmental leaders, executives, entrepreneurs and policymakers on the theme “Adapting to a Shifting Investment Landscape: Harnessing New Potential for Global Economic Development.” Abu Dhabi National Exhibition Center.
May 13-15, Abu Dhabi, UAE: Abu Dhabi Global Healthcare Week. A conference focusing on investments, and innovation to solve the most important global health challenges. Abu Dhabi National Exhibition Center and Abu Dhabi City.
May 14-15, Abu Dhabi, UAE: J.P. Morgan Asset Management: Life Sciences Innovation Summit. A gathering aimed at drawing startups and investors from the life sciences sector to Abu Dhabi. Cleveland Clinic Abu Dhabi.
May. 14-16, Doha, Qatar: Qatar Economic Forum, Powered by Bloomberg. A news-driven event dedicated to global business and investment. This year’s theme is “A World Remade: Navigating the Year of Uncertainty.” Request your invitation here. Fairmont & Raffles, Doha.
May 29-31, Marrakech, Morocco: GITEX Africa. The second edition of the biggest tech and startup gathering in Africa. Place Bab Jdid.
