Good morning, friends, and welcome to an uncharacteristically calm hump day. 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 — and the usual smattering of M&A news.

^^ We have these stories and more in this morning’s newswell, below.

WATCH THIS SPACE-

#1- Dubai’s property sector is expected to record an “unprecedented” USD 33 bn (c.AED 121 bn) in sales during the summer season, up 15-20% y-o-y from the 2023 summer season, according to real estate brokerage W Capital. “Dubai 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,” W Capital CEO Walid Al Zarooni said.

It’s not just the summer: Dubai real estate is on track to post record sales in 2024, ranging between AED 450-500 bn, following the “historical” 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.

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

#2- UBS taps 10 senior bankers from Deutsche Bank and HSBC: Swiss bank UBS tapped HSBC veteran Rana Al Emam (Linkedin) to assume responsibility for growing the business in Abu Dhabi, according to a press release picked up by Zawya. 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.

#3- There’s a new Abu Dhabi Family Business Index: Abu Dhabi’s 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 reports. The index covers revenue, industry, employment, governance, leadership gender ratios, succession planning, longevity, and socio-economic impact.

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

ICYMI- The company returned 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 mandatory convertible sukuk. The company increased its capital to around AED 2.89 bn after raising AED 450 mn from shareholders last month.

UPDATE-

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

CLARIFICATION- 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’s issue.

ICYMI- 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’s operations locally and globally, and to introduce new products to Rak Cement’s production portfolio.

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THE BIG STORY ABROAD-

An eclectic mix of stories is playing out across the front pages of the global business press, with coverage of the EU’s latest bid to “tame” big tech playing out alongside stories about Volkswagen, Citigroup, and the prospect of war in Asia.

The Financial Times is going all-in with its coverage of how European Union regulators are looking to bring Big Tech to heel. Earlier this week, the bloc accused Apple of breaking so-called “gatekeeper rules”, for which they’re threatening to fine the company up to 10% of its global revenues. Yesterday, they went after Microsoft with antitrust violations over Teams.

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

A must read for those of you who want to go deeper: What are the battle lines between the EU and Big Tech?

MEANWHILE- Volkswagen is getting prominent front-page play in the FT, the Wall Street Journal, and Handelsblatt after saying it will invest up to USD 5 bn in EV maker Rivian and the FT says time is running out for Jane Fraser’s turnaround bid at Citigroup.

CLOSER TO HOME:

  • The Israeli military must start drafting ultra-Orthodox Jews, the country’s supreme court has ruled. (New York Times)
  • Rioters protesting taxation in Kenya tried to storm the country’s parliament. Five have so-far been killed in clashes with police. (Reuters)

JUST WHAT WE NEED: Another regional war. The Philippines’ ambassador to Washington, Jose Manuel Romualdez, has for months been beating the drum about the prospect that conflict with China over a reef in the South China Sea could in turn spark a regional war. He’s previously talked up the idea with the Japanese press, and President Ferdinand Marcos Jr. recently said in a speech that it won’t start the war — but “won’t be intimidated” by China, either. The Financial Times has since lined up its own interview with Romualdez, and it’s getting front-page play this morning.

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