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Good morning, wonderful people. We have a packed issue for you this morning as we race towards the end of Ramadan, so let’s dive in.
BUT FIRST- A quick note: We may have been overly excited in our coverage of the private sector holiday notice, and did not mention that there is a chance the private sector only gets a six-day holiday next week. Since the ministry said the holiday would end on 3 Shawwal — whichever day of the Gregorian calendar that might be — Friday, 12 April could be declared a normal working day if Ramadan ends on Monday, rather than Tuesday as forecast.
Private schools, universities, and nurseries are all getting the nine days from Monday, 8 April, to Sunday, 14 April off, the Knowledge and Human Development Authority said.
** So, when do we eat? Maghrib prayers are at 6:39pm in Dubai and 6:42pm in Abu Dhabi, and you have until 4:53am to hydrate and caffeinate ahead of Fajr in Abu Dhabi, and until 4:50am in Dubai.
It’s an M&A-heavy newsday here at home, with not one, not two, but three mergers and acquisitions going through — including OSN+’s merger with Anghami, ADIA’s acquisition of Landmark Dividend, and Borealis’ acquisition of Integra Plastics. Also worth your time: ADIA invests more into private credit | Dubai private schools get green light to hike tuition fees | Retail investors can no longer subscribe to foreign funds.
SMART POLICY- Visa is rolling out three new AI-powered products to prevent risk and fraud, targeting non-Visa card payments, token fraud prevention, and real-time account-to-account payment protection, it said in a statement (pdf). The products — which will be accessible to clients sometime this year — will fall under the credit card company’s Visa Protect suite, comprising some 200 value-added services across five categories.
ICYMI- We recently attended a roundtable with three of Visa’s top risk and fraud officers, who talked us through the most common payment scams, how AI is making it tougher to secure financial transactions, and how it can also be used to fight back.
HAPPENING TODAY-
The UAE’s PMI figures will be out shortly after we hit “send” on this morning’s issue. The non-oil sector expanded at its fastest pace in five years in February, turning in the highest output growth rate since June 2019. We’ll have the full rundown in tomorrow’s edition.
OPEC+ member countries are set to meet later today for their regularly scheduled ministerial monitoring committee meeting. The alliance will take stock of the market and reassess their agreed output cuts.
What the pundits are saying: The committee “is unlikely to recommend any oil output policy changes” after having extended oil output cuts of 2.2 mn bbl / d at its last meeting, Reuters reports, citing five OPEC+ sources. The expectation comes as oil prices have been rising steadily since December, fueled by OPEC+’s voluntary supply cuts, strong demand outlook for 2024, Red Sea tension, which has prompted cargo ships to take the longer and more oil-consuming routes to avoid the Gulf of Aden and Red Sea, writes Bloomberg.
HAPPENING THIS WEEK-
Shuaa bond restructuring deadline pushed: The deadline for negotiations with Shuaa Capital’s bondholders to restructure some USD 150 mn in outstanding bonds, which matured on Sunday, has been extended to the end of this week, as trading remains suspended on the Dubai Financial Market (DFM) due to the asset manager’s failure to file audited financial statements for 2023, a DFM filing (pdf) reads.
Background: Shuaa Capital asked bondholders two weeks ago to restructure some USD 150 mn in outstanding bonds owed by a special purpose vehicle it owns, saying that the “amended terms and conditions” have already been agreed by 25% of bondholders.
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WATCH THIS SPACE-
#1-Enercap eyes potential listing: Energy storage player Enercap could potentially go public before the end of 2024 or in early 2025, Chairman Waseem Ashraf Qureshi said, according to Al Bayan. The company could decide to debut its shares on the Dubai Financial Market, the Abu Dhabi Exchange, or the Nasdaq Dubai, and has not made a decision on which exchange it will go with, Qureshi said. The potential listing comes as Enercap plans to invest AED 220 mn to build a new factory in Abu Dhabi, which will be its second facility in the country.
#2-Funds manager National Bonds expects to receive regulatory approval for its new pension fund for UAE employers within six weeks, National Bonds CEO Mohammed Qasim Al Ali told Gulf News. The fund will gather earmarked end-of-service and gratuity scheme payments from employers.
National Bonds had a good year: As of December 2023, the investment portfolio of National Bonds surpassed AED 14 bn (USD 3.8 bn), Wam reports. National Bonds’ Golden Pensions Plan, launched last year, attracted around 34k enrollments by 2023, contributing to the company’s investment portfolio. This surge, alongside AED 6.4 bn in new sales, reflects a 122% increase in monthly direct debits from savers, according to the CEO.
#3- Borouge pledges net zero: Abu Dhabi-based petrochemicals company has committed to bring scope 1 (polyethylene and polypropylene) and scope 2 (energy consumption) carbon emissions down to zero by 2045, setting intermediate targets to reduce greenhouse gas emissions intensity by 25% and energy intensity by 30% by 2030, reports Wam. The firm plans to roll out energy efficiency programs and explore new decarbonization technologies to achieve its objective.
How it’s going: Borouge has already marked off one of its 2030 goals, recording a 30% reduction in emission intensity in 2023 compared to the 2018 baseline.
#4-The Energy and Infrastructure Ministry will issue on 24 April tenders for a new authority building and six upgrades across the UAE, according to its website. The projects include maintenance and addition works for schools in Ras Al Khaimah, Umm Al Quwain, and Ajman, plus maintenance and renovation projects for the Culture and Youth Ministry building in Abu Dhabi and Energy and Infrastructure Ministry building in Sharjah. One of the tenders is also seeking engineering consulting services for the construction of an additional building for the Federal Authority for Identity, Citizenship, Customs, and Ports Security in Abu Dhabi.
DATA POINTS-
#1-The Central Bank of the UAE’s foreign assets reached AED 695 bn in January 2024, according to CBUAE data (pdf), marking a 39% y-o-y increase.
#2- The Mothers’ Endowment Campaign raised AED 1.4 bn during Ramadan, surpassing its AED 1 bn target, The National reports. The fund, initiated by Dubai Ruler Sheikh Mohammed bin Rashid Al Maktoum at the start of Ramadan, aims to assist underprivileged families globally, particularly focusing on educational support.
What they said: “Contributions to this endowment exceeded Dh1.4 bn during the holy month, providing perpetual educational endowment and ongoing charity for mothers in the UAE. May this initiative bless our endeavors and journeys,” Sheikh Mohammed said in a statement on X.
#3- Emirati carriers grew their destination network to 603 global destinations in 1Q 2024, an increase of 3% y-o-y on the back of a recovering aviation sector meeting a heightened demand for travel, reports Wam. Emirates posted the largest network during the quarter with a total of 143 destinations.
More routes to be onboarded: Etihad Airways plans to expand to over 125 destinations by 2030, with up to 6 new destinations scheduled to launch this year.
MARKET WATCH-
Adnoc’s strategic move to prioritize Murban oil over Upper Zakum crude has caused a substantial drop in Upper Zakum exports, Reuters reports. The move is in line with Adnoc’s investments in refinery upgrades, particularly at its Ruwais facility, which allow it to process heavier grades more efficiently.
“They invested a lot of money over at least 3-4 years upgrading Ruwais to run heavier grades so it makes a lot of sense to run Upper Zakum and sell Murban,” said director of Surrey Clean Energy Adi Imsirovic. “Barrel-for-barrel, Murban brings more revenue for equal compliance.”
THE BIG STORY ABROAD-
The global business press is focused on the war in Gaza and tensions in Syria, with the two stories leading or getting prominent play everywhere from the Wall Street Journal to Reuters and Bloomberg.
#1- Israel’s military expressed “sincere sorrow” that it had killed seven aid workers from World Central Kitchen in an airstrike on Gaza, saying the strike was a mistake. The attack prompted the Biden administration to offer its toughest criticism yet of the Netanyahu government.
#2- Iran is furious and has vowed to respond after Israel killed top Iranian military officials in an attack on Iran’s embassy in Damascus despite diplomatic compounds having protected status under the Vienna Convention. Israel’s defense minister was unapologetic, saying, “We are in a multifront war, offensively and defensively.”
IN BUSINESS- Tesla’s shares plunged after quarterly deliveries fell for the first time since 2020, CNBC reports.The 8.5% drop in deliveries was worse than analysts had penciled in, the Wall Street Journal and Bloomberg add.
FAR, FAR AFIELD- The moon is about to get its own timezone. “The White House on Tuesday directed NASA to establish a unified standard of time for the moon and other celestial bodies, as the United States aims to set international norms in space amid a growing lunar race among nations and private companies,” Reuters writes in an exclusive.
