Good morning, friends. It’s yet another busy day of news — we have an update on ADNH Catering’s ADX debut, fresh figures for Dubai’s commercial and luxury property markets in 3Q 2024, debt and M&A news, and a lot more. Let’s dive in.

WEATHER– Cloudy skies with moderate to heavy rain are forecast across areas of the UAE today, particularly in eastern and western regions. Dubai will see a high of 37°C and a low of 31°C. In Abu Dhabi, expect a high of 35°C and an overnight low of 30°C today.

Dubai Islamic Bank (DIB) listed its USD 500 mn additional Tier 1 (AT1) sukuk on Nasdaq Dubai, after they were sold earlier this month at an annual yield rate of 5.25%, according to the Dubai Media Office. The issuance saw a reset spread of 133.4 bps over the US Treasury rate — the lowest for any AT1 issuance since the 2009 financial crisis — driven by strong demand.

WATCH THIS SPACE-

#1- Pearl Petroleum to launch USD 300 mn bonds: Pearl Petroleum, a consortium comprising five companies, including Dana Gas and Crescent Petroleum, has reportedly engaged banks to arrange a potential USD 300 mn bond issuance, Zawya reports. The hydrocarbon producer, which operates in the Kurdistan Region of Iraq, appointed Norway’s DNB Markets and Pareto Securities AS as joint lead managers and bookrunners to facilitate investor meetings ahead of the issuance. The USD 300 mn senior secured bonds are expected to have a maturity of 3.5 years.

Background: The company had planned to issue USD 350 mn bonds in 2019, but later reportedly scrapped the issuance on slow demand.

#2- Bank of Sharjah is in talks to sell its wholly-owned subsidiary Emirates Lebanon Bank, but ongoing geopolitical tensions have hindered the transaction from moving forward, Bank of Sharjah’s CEO Mohamed Khadiri told CNBC Arabia. A revaluation of the bank ahead of its sale is also on the table.

#2- The UAE plans to boost trade with Singapore to USD 9 bn over the next seven years, up from USD 5.8 bn in 2023, UAE’s Economy Minister Abdullah Bin Touq Al Marri told CNBC.

#3- Thailand is looking to finalize its trade agreement with the UAE in 2025, Thailand’s Commerce Minister Pichai Naripthaphan told Bloomberg. Thailand is also currently seeking a food security agreement with the UAE, which would bolster the UAE’s stockpile of commodities like frozen chicken, rice, and ready-to-eat products. Similar agreements are also underway with other GCC countries.

The rationale: The Thai government believes that the ongoing geopolitical tensions in the Middle East could pressure the region’s food supplies if the conflict escalates. “We propose that we can hold the food for every country that buys it, and we can ship it to them within 24 hours,” Naripthaphan said.

Background: Thailand and the UAE agreed to launch trade talks in May of last year, with an eye to wrap talks this year.

PUBLIC SERVICE ANNOUNCEMENTS-

UAE residents traveling to Indonesia will be able to get a pre-approved electronic visa on arrival via email when submitting their application online via the VFS Global website ahead of departure, according to a press release. This is after the Directorate General of Immigration under Indonesia’s Law and Human Rights Ministry appointed VFS Global as the exclusive provider for the electronic visa service, which is set to launch in December 2024 for residents of the UAE and Saudi Arabia, among 97 other eligible countries.

DATA POINTS-

#1- The UAE’s latest AED-denominated T-Sukuk auction raised AED 1.1 bn, with AED 7.2 bn in bids, reflecting a 6.5x oversubscription, Wam reports. The auction was part of the Islamic T-Sukuk issuance program for 4Q.

The details: The tranche maturing in May 2027 offered a yield of 4.10%, with a spread of 10 basis points above US Treasuries bonds of similar maturities at the time of issuance. The tranche maturing in September 2029 provided a yield of 4.12%, with a spread of 12 basis points above US Treasuries.

#2- Dubai is steadily going green: Dubai slashed its carbon emissions by 29% in 2023, thanks to the ongoing green energy projects and programs, the Dubai Supreme Council of Energy (DSCE) said in its latest meeting, according to the Dubai Media Office. The progress propels the emirate towards its target to cut emissions by 30% by 2030.

What is next for Dubai? The DSCE approved a program during its meeting to boost the participation of the private sector in building EV charging stations, Vice Chairman of the council Saeed Mohammed Al Tayer said, without providing further details on the program.

ALSO- Abu Dhabi is on track to have 40% of its electricity generated from renewable energy sources by the end of 2024, in line with the emirate’s plan to raise the figure to 60% by 2035, Wam quotes Awaidha Murshed Ali Al Marar, chairman of the Abu Dhabi Department of Energy, as saying.

#2- Aani has onboarded over 1 mn customers in a year: Over 1 mn customers and 80k merchants have joined the central bank-backed instant payment platform Aani since its inception in October 2023, Gulf News quotes CEO of the central bank’s digital payments arm Al Etihad Payments Jan Pilbauer as saying.

About Aani: The Aani app allows customers and retailers to make instant payments 24/7,

including proxy and QR-based payments.

#3- The UAE is projected to welcome around 800 high net worth individuals (HNWIs) and their families from the UK this year amid a wider exodus of HNWIs from the country, according to Henley & Partners’ estimate.

The reason for the exodus? High taxes in the UK — and concerns that the new Labour government might hike them even further — are the main reason behind HNWIs choosing to leave the country.

It’s not just the UK: The UAE is set to receive a total of 6.7k m’naires by the end of 2024, UBS said earlier. After the UK, the UAE will see some 720 HNWIs come from the US, 300 from Australasia, and more than 250 m’naires from the Caribbean Islands.

#4- UAE lenders’ accumulated debt to SMEs hit AED 81.2 bn in 1H 2024, representing 9.5% of the AED 855.7 bn in total loans and credit facilities provided to the trade and industrial sector by the end of the first six months of the year, Wam reports, citing data from CBUAE.

HAPPENING TODAY-

#1- It’s the final day of the Brics summit in Kazan, Russia, where President Sheikh Mohamed bin Zayed Al Nahyan is in attendance. This marks the UAE’s first participation in the summit since its formal admission as a member last year.

#2- The UAE is also participating in the International Monetary Fund and World Bank Group Annual Meetings, which kicked off on Monday in Washington, DC. The UAE Finance Ministry will host the UAE Banks Reception on the sidelines to build connections between the UAE’s public and private sectors and international financial institutions. The meetings wrap up on Saturday.

What to expect: Our Planet Finance from earlier this week laid out the big themes to look out for and the global challenges structuring the conversation.

#3- The Foreseeing Government Audit Future Conference will take place on 24 October at Madinat Jumeirah, Wam reports. Organized by the Financial Audit Authority, the event will be held under the theme “Tomorrow’s Auditor” and will gather key figures, senior officials, and experts in auditing, finance, and economics to discuss the future of government auditing.

THE BIG STORY ABROAD-

It’s the first time in a long time that business news makes it to most front pages of the foreign press, as earnings season heats up and aircraft maker Boeing faces its toughest time yet with factory workers set to vote on a contract that could end a five-week strike.

#1- Boeing reported USD 6 bn in losses that its new CEO Kelly Ortberg chalked up to “serious performance lapses” and an erosion of investor confidence, as factory workers vote on new wage terms that could end their ongoing strike. (Reuters | Financial Times | Wall Street Journal)

#2- Tesla’s earnings are also getting a lot of ink, with the EV maker reporting a higher than expected bottom line and profitability for its cybertruck, marking a turnaround after a few disappointing quarters. The EV maker now expects 20% growth in vehicle sales next year. Its shares jumped 12% in extended trading on the news. (FT | CNBC | CNN)

#3- Apple is gearing up to launch its updated Macbook Air with the M4 chip, and its low-end iPad and revamped iPhone SE, in early 2025, Bloomberg reports.

ALSO GETTING ATTENTION- The US elections are still looking as tight as ever with the two candidates statistically tied among likely voters in the seven swing states in the Bloomberg News/Morning Consult poll, leaving it up to the final weeks of rallies and campaigns to decide who will come out on top.

AND- Israel continued to strike Beirut’s southern suburbs yesterday, as Hezbollah said it fired precision guided missiles at Israeli targets for the first time. One strike hit the office of Al-Mayadeen, killing at least one person and wounding five others. (Reuters)

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