Good morning, lovely people, and happy FRIDAY. We close out a week full of IPO news with… more IPO news — this time, from Delivery Hero’s Talabat, which could debut on the DFM in 4Q 2024.

WEATHER- Temperatures will hit 40°C in Dubai today, before cooling to an overnight low of 30°C. Meanwhile, in Abu Dhabi, the mercury will peak at 38°C, with clouds and some chance of rain.

UPDATES-

#1- Telegram founder Pavel Durov has been granted conditional bail following his arrest in Paris, with a travel ban imposed pending further investigation, Wam reports. The UAE government is coordinating with French authorities and Durov’s representatives to offer assistance, Reuters reports, citing an anonymous UAE official.

#2- The Central Bank of the UAE’s (CBUAE) latest 1.1 bn AED-denominated T-Sukuk auction was 5.7x oversubscribed, pooling AED 6.32 bn in bids, Wam reports, citing the Finance Ministry. The May 2026 and May 2027 tranches saw strong demand, with the T-Sukuk sold at 0-9 bps over US treasuries.

Background: The CBUAE launches regular AED-denominated Shariah-compliant sukuk auctions in a bid to strengthen the local currency’s yield curve in capital markets. More information on the program is available here.

HAPPENING TODAY-

The subscription period for NMDC Energy’s IPO kicks off today, and wraps on 4 September. NMDC received approval earlier this week from the Securities and Commodities Authority and the ADX to list 23% of its engineering, procurement, and construction unit on the ADX in a AED 3.22 bn IPO — potentially making it the biggest IPO of the year.

WATCH THIS SPACE-

#1- EGA eyes global expansion with further acquisitions: Mubadala-backed Emirates Global Aluminium (EGA) is targeting further acquisitions in East Asia, Europe, the US, and Mexico after completing two transactions this year, CEO Abdulnasser Bin Kalban told Bloomberg. The Middle East’s largest aluminum producer aims to boost its production capacity by purchasing metal-recycling assets to meet rising demand for recycled metal products in the US and Europe. The acquisitions will also help EGA diversify its customer base and market segments away from China, where there is currently a slowdown in construction, Bin Kalban said.

ICYMI- EGA recently expanded into the US aluminum recycling market by acquiring an 80% stake in Minnesota-based Spectro Alloys. This follows EGA’s acquisition of 100% of Germany’s Leichtmetall Aluminum Giesserei from Leichtmetall Holding in May.

#2- Also eyeing expansion: Brands for Less. Dubai-based Brands for Less (BFL) plans to open new stores in the Gulf region amid heightened demand, drawing on support from its recent acquisition by US discount retailer TJX, BFL CEO and co-founder Toufic Kreidieh told Asharq Business (watch, runtime: 4:03). The firm will also expand its footprint in Southeast Asia, with its first store in Singapore set to open next month, followed by openings in Malaysia.

Egypt has proven to be a more difficult market for BFL to crack, Kreidieh said, adding that the company has faced obstacles in entering the Egyptian market, despite it having always been on its radar for its large size and regional importance. BFL will seek out expansion in Egypt once the current challenges are overcome, Kreidieh said.

ICYMI- TJX — which operates TJ Maxx and Marshalls — inked a definitive agreement to acquire a 35% stake in BFL for USD 360 mn (AED 1.3 bn) last week. The transaction is expected to close later in its fiscal year, which ends 1 February 2025.

Kreidieh said the stake sale was primarily to facilitate the exit of shares for himself and co-founder Yasser Baydoun, rather than for financial needs.

#3- We’re on track to get 6G before 2030: The Telecommunications Regulatory Authority (TDRA) plans to kick off operational testing for 6G networks in 2029 or 2030, despite not currently having sufficient research on the frequencies needed for the services, TDRA deputy director Mohammed Al Ramsi told CNBC Arabia in an interview. The authority expects to gather more clear data near 2027 and 2028, Al Ramsi said, adding that TDRA is now conducting high-speed testing within the 5G range to develop an advanced 5.5G network.

We knew this was coming: Earlier in April, the TDRA rolled out its roadmap for adopting 6G technology, aiming to adopt services UAE-wide before 2030. The adoption plan kicks off this year with the establishment of a committee tasked with conducting scientific research, and overseeing the development of technical standards and specifications for 6G.

DIPLOMACY-

South Africa has recalled Consul General Andrew Lebona from Dubai to Pretoria due to allegations of misconduct and security breaches, Khaleej Times reports. The move followed whistleblower claims about a visa fraud operation at the Dubai embassy, in which Lebona is alleged to have played a role by orchestrating a break-in at the embassy to enable the illegal sale of visas to UAE nationals for entry into South Africa. He is also accused of facilitating his son’s unlawful acquisition of a diplomatic passport. South Africa’s foreign affairs ministry confirmed that the investigation is still in progress.

DATA POINTS-

#1- The Dubai Financial Services Authority recorded a 22% y-o-y increase in the amount of authorized firms in 1H 2024 amounting to a total of 837 DFSA-registered companies, it said in a statement. The number of registered wealth management entities increased 62% y-o-y rise during the six-month period. The Dubai International Financial Centre (DIFC) currently hosts 27 out of the 29 Global Systemically Important Banks (G-SIBs).

#2- Dubai secured the 28th spot, while Abu Dhabi was ranked 41st, in real estate firm JLL’s Global Real Estate Transparency Index (pdf). Both cities have made strides in transparency, JLL said, citing advancements in anti-money laundering legislation and increased access to information from both established and emerging market providers.

Government initiatives have helped boost transparency: Tech initiatives in Dubai such as the Real Estate Innovation Incubator and the Dubai PropTech Group, as well as more real estate oversight and efficiency through the Abu Dhabi Real Estate Center (ADREC) and the introduction of an AI-enabled BIM and planning review system, are all credited to have improved transparency.

THE BIG STORY ABROAD-

Politics is once again front and center on the front pages of the foreign press as US Vice President and presidential hopeful Kamala Harris edges out former US President Donald Trump in several polls — leading 45% to 41% in a Reuters/Ipsos poll and 48% to 47% in a separate Wall Street Journal poll. She also leads by two percentage points across battleground states, according to a Bloomberg News/Morning Consult poll.

Harris also had her first exclusive interview with CNN, where she said she would appoint a Republican in cabinet if elected and that her “values have not changed” since her 2020 presidential campaign.

IN THE BUSINESS PRESS- Nvidia and Apple are in talks to invest in ChatGPT maker OpenAI’s upcoming bn-USD round, which is set to give the company a valuation of more than USD 100 bn, the Wall Street Journal reports.

Meanwhile, closer to home: Israel and Hamas have agreed to three zoned three-day pauses starting Sunday to accommodate a polio vaccination run in Gaza following an outbreak of the disease. (Reuters | NY Times | CNN | BBC)

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