Good morning, friends. We have a brisk issue for you this morning, with plenty of earnings and M&A updates to sift through.

There’s no single big story dominating the news today, but news of Dubai-based contractor Rowad Capital Commercial potentially acquiring a 60% stake in Ugandan telecom operator UTel, and Adnoc Gas’ 2Q 2024 earnings — along with its projection of strong gas demand until 2040 — are important reads. Plus: New labor law amendments will subject employers to fines of up to AED 1 mn for violations. We have more in the news well, below.

WEATHER- Temperatures are rising again in Dubai, with the mercury hitting 43°C, before cooling to an overnight low of 36°C. Over in Abu Dhabi, the mercury peaks at 39°C, with an overnight low of 34°C.

MSCI added Adnoc Drilling to its MSCI Emerging Markets Index, making it one of the largest companies by market capitalization joining the index in its quarterly review, according to a statement (pdf). The company will be added to the index — which is the biggest global index for large cap emerging market stocks — as of 30 August.

REMEMBER- Adnoc Drilling sold a 5.5% stake in a secondary sale for USD 935 mn last May, increasing its freefloat in a bid to qualify for MSCI indices.

PUBLIC SERVICE ANNOUNCEMENT-

UAE embassy in Athens alerts citizens on forest fires: The UAE Embassy Athens advised UAE citizens in Greece to exercise caution and adhere to local safety directives due to ongoing forest fires in northeastern Attica and nearby areas, in a statement posted on X.

WATCH THIS SPACE-

#1- AD Ports, Turkey push to finalize Izmir Port acquisition: AD Ports is continuing negotiations with Turkey to establish a joint venture for the operation of Izmir Port after approximately eight months of delay, Reuters reports, citing people familiar with the matter. AD Ports has been in talks to acquire a stake in the key Turkish port of Izmir in a USD 500 mn transaction since December.

What was causing the delays? Turkey was exploring other buyers, but has decided to advance with AD Ports, one of the sources says. Conditions on capacity and competition delayed the final agreement, the source added.

What we know: The agreement will see AD Ports shell out investments in an entity established by Turkey’s sovereign wealth fund, the Turkish Wealth Fund (TWF), to operate the facility. Details of the arrangement are yet to be finalized.

#2- Mediahuis, Saatchi expected to exit The Telegraph bidding race: European media group Mediahuis and British advertising executive Lord Maurice Saatchi are unlikely to make it to the second round of bidding for acquiring The Telegraph newspaper as Abu Dhabi-backed RedBird IMI narrows down its shortlist of potential buyers, the Financial Times reported citing people it says are familiar with the matter.

Remember- RedBird IMI — a JV between Deputy Prime Minister Sheikh Mansour bin Zayed Al Nahyan’s International Media Investments and US’ RedBird Capital Partners — is targeting a valuation of GBP 510 mn for The Telegraph, as it seeks to recoup most of the GBP 600 mn investment it made last year. RedBird IMI became the ipso facto owner of the newspaper when it paid off a debt for its then-owner the Barclay family, before the UK government blocked the acquisition.

Who’s still in? UK digital multimedia firm National World and British hedge fund manager Paul Marshall are reportedly still vying for the Telegraph, alongside at least two other international investors. Concurrently, Marshall is in separate negotiations with RedBird to purchase The Spectator, potentially for more than GBP 100 mn, the salmon-colored paper reported, citing people it says are in the know. The sale process is expected to extend into September.

#3- Gov’t launches 3Q clean energy certificates auction: Emirates Water and Electricity Company (Ewec) opened registration for its 3Q 2024 clean energy certificates (CECs) yesterday, according to a statement from Ewec. Interested companies will have until 13 September to purchase the certificates.

ICYMI- Ewec introduced the UAE’s first wind CECs earlier this month, issuing certificates for the landmark 103.5 MW wind project operated by state-run renewables giant Masdar.

REMEMBER- CECs are the only accredited instruments in Abu Dhabi that prove the ownership of environmental and economic benefits of consuming clean energy. The certificates were introduced by the Abu Dhabi Department of Energy to help ensure that the emirate meets its clean energy and net zero goals.

SIGN OF THE TIMES- An AI real estate consultant is outperforming traditional brokers in Dubai: Dubai-based Realiste’s AI real estate consultant, dubbed Jucica Brown, has already closed a whopping USD 30 mn in property transactions within only three weeks on Telegram, Realiste senior executives told Arabian Business.

The AI property consultant — said to be the world’s first on social media — offers “detailed, data-driven insights that surpass the capabilities of even the most seasoned brokers,” including forecasting real estate prices up to five years in advance and comparing project ROIs, rental yields, and capital growth potentials across various properties, Alex Galt, founder of Realiste AI, said.

DATA POINT-

Dubai Multi Commodities Centre accounted for 15% of the total foreign direct investments in Dubai in 1H 2024, up from 11% in 1H 2023, Wam reports. The freezone currently represents 7% of the emirate’s GDP, having registered over 1k new companies during the first six months of 2024, bringing the total to about 25k companies. The entrants included 226 new companies in the tech sector, 159 in the energy industry, and 140 financial services firms.

THE BIG STORY ABROAD-

The rising imminence of Iran attacking Israel — potentially triggering a regional war — is largely leading the conversation in the international press this morning. Washington is bracing itself for what its intelligence suggests “could be a significant set of attacks” on Israel by Iran “and / or its proxies,” White House Press Secretary John Kirby said last night, according to a press readout.

The US has ramped up its “force posture and capabilities in the region even in just the last few days” in anticipation of a potential outbreak of violence, Kirby said. US Secretary of Defense Lloyd Austin had ordered yesterday a strike group to speed up its deployment to the region, following a call with his Israeli counterpart Yoav Galant.

This comes as Israel pushes ahead with its attacks on Palestine, killing more than 20 people in its latest strikes in Khan Younis, Gaza City, and Rafah yesterday. (Reuters | Bloomberg | Financial Times | CNBC)

ALSO WORTH NOTING- Elon Musk hosted Donald Trump for a live streamed interview and X crashed due to technical glitches — which Musk blamed on a cyberattack. (CNBC | Wall Street Journal | Politico)

MARKET WATCH-

Opec+ has trimmed its outlook for growth in global oil demand in 2024 and 2025 on the back of softer demand from China, according to the group’s monthly report (pdf). The oil cartel now sees oil demand rising by a “healthy” 2.1 mn barrels per day (bbl / d) this year to 104.3 mn bbl / d, down from its previous forecast of a 2.25 mn bpd increase.

The 2025 forecast: Opec+ has also revised down next year’s demand growth for crude oil, penciling in a 1.78 mn bbl / d increase, down from 1.85 mn bbl / d.

MEANWHILE- Are you planning to be in Egypt on 24 September? You may be interested in attending our 2024 Enterprise Finance Forum. Seating is strictly limited at our flagship, invitation-only forum for C-suite executives and other senior leaders.

Why attend? We’re in the early days of a generational realignment of power in our industry — in our region and beyond — and on the cusp of the biggest intergenerational transfer of wealth the world has ever seen. With that as the backdrop, we’re going to take stock of where we stand six months after the float of the EGP and ask what’s next for finance in Egypt and the wider region. Among the questions we’ll be asking:

  • What roles will Egypt, Saudi and the UAE play in the regional industry going forward?
  • What are foreign investors looking for right now?
  • Is real estate the only asset class in Egypt?
  • What does the next generation of leaders think as they take over established family businesses?

Do you want to request an invitation? Tap or click the image below.

***
DID YOU KNOW that we also cover Egypt and Saudi Arabia?

Tap or click here to get your own copy of EnterpriseAM UAE delivered every weekday before 7am UAE time — without charge, thanks to our friends at Mashreq.
***

CIRCLE YOUR CALENDAR-

The World ESG Summit is scheduled to take place on 20-21 August at Dusit Thani in Dubai. The two-day business conference will gather public and private sector players from key sectors like energy, utilities finance, and manufacturing to explore ESG integration across all industries.

The Dubai Business Forum in Beijing, China is set to take place between 21-22 August. Hosted by Dubai Chambers, the event will gather over 50 Dubai-based companies and 350 Chinese firms to explore potential investments in sectors like green tech, AI, healthcare, and renewable energy, president and CEO of Dubai Chambers Mohammad Ali Rashed Lootah told the National.

Rex Fuels will host the Global Bitumen, Petrochemicals & Petroproducts Conference at the JW Marriott Marquis Hotel in Dubai on 21-22 August 2024. The conference will bring together bitumen and petroleum producers, suppliers, and traders, to network and discuss trends and challenges in the industry.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

Leave a comment

Your email address will not be published. Required fields are marked *