THIS MORNING: UAE led GCC in IPO 2024 IPO proceeds even as market declined regionally

Good morning, wonderful people. It’s a reasonably quiet morning on the business news front here at home, with key government and private-sector players in Davos for the World Economic Forum.

Still, finance nerds have lots to consider, between Atlantic General’s blockbuster acquisition yesterday of emerging markets infrastructure private equity giant Actis — and optimism on 2024 dealflow from top execs at Goldman Sachs and Morgan Stanley.

And it’s shaping up to be a big day for our fellow tech nerds, with Samsung set to unveil its latest crop of flagship smartphones and plenty of news from archrival Appe.

^^ We have all of these stories and more, below.

FROM DAVOS- The government’s focus for the next few years is green growth and decarbonization, Economy Minister Abdullah bin Touq al Marri told CNBC (runtime 03:17) on the sidelines of the World Economic Forum. “In a world where we’re going to [see] high inflation and high interest rates, and being realistic as well on the global challenges and crises we currently live in, I think we need a different lens on looking at economic policies,” he said, referencing the need to engage more with the private sector to improve ease of doing business and reducing regulatory burdens.

ALSO FROM WEF:The oil market could tip toward a supply crunch as early as 2025 as new exploration slows to the point where reserves are not discovered and brought online fast enough to meet demand, Reuters cites Occidental Petroleum CEO Vicki Hollub as saying at the gathering. Whereas in the mid-1950s to late 1970s, discoveries of oil were five times as much as the amount of oil consumed, this ratio has fallen to 25% in 2023, Hollub said, adding that the markets are not balanced in the near term.

Crude prices could trade at USD 80-85 per barrel from next year as a result, Hollub estimates.

AND- Mohammed bin Rashid Al Maktoum Global Initiatives (MBRGI) agreed to provide the UN World Food Program with AED 43 mn for direct food aid Gaza, Zawya reports. MBRGI signed the agreement on the sidelines of the World Economic Forum.

PUBLIC SERVICE ANNOUNCEMENT-

Some 54 homebuilding services will be under one roof in Dubai when the new Integrated Housing Center launches in February, hosting 54 residential services in Nad Al Sheba’s Avenue Mall, according to a Government of Dubai Media Office statement. The center will incorporate services from four government departments: Mohammed Bin Rashid Housing Establishment, Dubai’s Roads and Transport Authority, Dubai Municipality and Dubai Land. Two private sector partners — Emirates Islamic Bank and Sobha Realty — will also provide services to customers through the center.

DATA POINTS-

#1- The UAE led the GCC in IPO proceeds in 2023, raising AED 20.2 bn in seven transactions that accounted for 54% of all funds raised last year, according to Kuwait Financial Centre (Markaz).

It wasn’t a great year for IPOs in the Gulf. The UAE’s 55% y-o-y dip in IPO value last year mirrors the 55% drop in GCC proceeds. Some 45 IPOs across the region raised USD 10.1 bn (AED 37 bn) last year.

By market in the UAE: The Abu Dhabi Securities Exchange led in proceeds with USD 4.9 bn (AED 17.9 bn), followed by the Dubai Financial Market with USD 0.5 bn (AED 1.8 bn).

Top ADX IPOs of 2023: Adnoc Gas (AED 9.1 bn) alone made up 25% of total GCC IPO proceeds. Pure Health’s AED 3.6 bn offering and Adnoc Logistics’ AED 2.8 bn listing round out the top three in the UAE.

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#2- Anti-money laundering watchdog handed out AED 249 mn in fines in 2023: TheExecutive Office of Anti-Money Laundering and Counter Terrorism Financing’s (AML/CTF) annual review revealed a 223% surge in the value of fines issued by the authority in the first 10 months of 2023 to some AED 246 mn, Wam reports. The AML/CFT Partnership Forum — a national public-private initiative set up to coordinate with private actors to curb money laundering — also saw its membership expand to over 50 members in 2023.

#3- Passenger traffic at Sharjah International Airport rose to over 15.3 mn in 2023, up 17.4% y-o-y, according to a statement. Air traffic increased by 12%, with more than 98k flights recorded throughout the year, the statement said. The airport handled over 141k tonnes of air cargo.

#4-Dubai Electricity and Water Authority (Dewa) extended over 364 km of fiber optic (FO) ducts in 2023, bringing the total length of ducts in the emirate to nearly 4k km, up 10% y-o-y, reports Wam. Dewa has injected some AED 7 bn to upgrade its FO network for its smart electricity grid, Wam adds.

WATCH THIS SPACE-

Bids are open for Dubai Metro Blue Line: Dubai’s Road and Transport Authority (RTA) issued tender documents for the design and construction of the Dubai Metro Blue Line, valued at USD 4.9 bn, reports MEED. Six consortiums prequalified to bid for the contract after the initial tender notice last fall. They are:

• Hyundai Rotem, China Civil Engineering Construction Corporation, and Nippon;
• China Railway Rolling Stock Corporation, Limak Holding, and Mapa Group;
• Siemens, Samsung, Larsen & Toubro, and Wade Adams;
• Alstom, FCC, and China State Construction Engineering Corporation;
• Construcciones y Auxiliar de Ferrocarriles, China Tiesiju Civil Engineering Group, Arab Contractors;
• Hitachi and WeBuild.

Project timeline: Construction will kick off in 2025, with trial operations expected in 2028, The National reported previously. Full commercial operations are scheduled to begin in 2029.

Refresher: The 30-km-long metro line will see 28 trains serve 14 elevated and underground stations as part of Dubai’s 20-minute city urban policy plan. The line will accommodate some 320k passengers daily in Dubai Creek Harbour, Dubai Festival City, International City, and more.

THE BIG STORY ABROAD

The global business press is digesting Donald Trump’s landslide win in the Iowa caucuses yesterday. He was always tipped to come out on top, but a much stronger than expected showing has pundits openly suggesting that his appeal has expanded beyond his base (at least in very white, very Republican midwestern states…) and that Nikki Haley and Ron Desantis are “running out of time” to stop him. (Financial Times | Wall Street Journal | Politico | Axios | Reuters)

Must-read on the topic:A wary world braces for Trump’s return to the White House, in Bloomberg.

IT’S A BIG DAY FOR: Tech nerds, as Samsung holds its Galaxy Unpacked event. Expect a new S24 line with new artificial intelligence capabilities to take center stage. Samsung faithful expecting a big redesign will be as disappointed as were iSheep this past fall with the, let’s say “extreme stability” of Apple’s iPhone design language.

Want more? You can check out Samsung’s Unpacked page or head over to its Youtube channel when the event starts at 10pm UAE time tonight.

Speaking of Samsung: The company is no longer the world’s largest mobile phone maker. Apple, which already led the industry in terms of value, has overtaken Samsung by volume — the first time in a dozen years of heavy competition that the Cupertino company has edged out its Korean rival.

And speaking of Apple: The tech giant is going to let third-party apps in the United States link to their developer’s website to process payments for in-app purchases. While doing so would bypass Apple’s built-in payment system, it will still ask for a percentage of the sale, Bloomberg reports. Apple and Google face pressure from regulators around the world to open their app marketplaces to sideloading and third-party payment methods.

Curious about Apple’s Vision Pro? With the order and delivery window coming up (for readers in the United States only), you might want to head over to The Verge not just for a Samsung recap this evening, but for Victoria Song’s take on Vision Pro after getting to spend 30 minutes hands-on with it. Her take: “I know what I saw, but I’m still trying to figure out where this headset fits in real life.”

AND- Interim BP boss Murray Auchincloss will get the job permanently, the Financial Times reports. Expect an announcement later today.

HAPPENING THIS WEEK-

#1- Australian Foreign Minister Penny Wong will be in town as part of a wider regional tour that will also see her visiting Jordan, Israel, and Palestine to discuss the ongoing war in Gaza, according to a statement from the Australian Foreign Ministry.

Wong’s visit also marks the start of negotiations for a trade agreement between the UAE and Australia, the statement said. The two countries agreed last December to launch the negotiations, aimed at boosting bilateral trade ties and bolstering Australian imports to the UAE.

CIRCLE YOUR CALENDAR-

The Abu Dhabi Extreme Championship 2 (ADXC 2) is taking place this Friday at the Mubadala Arena. You can get your tickets for the martial arts tournament here.

World of Coffee Dubai kicks off on Sunday, 21 January at the Dubai World Trade Center, bringing together stakeholders in the UAE’s coffee industry, including producers, retailers and traders. The event — which includes lectures and workshops, as well as a barista championship — runs until Tuesday, 23 January.

The IAAPA Middle East Trade Summit is set to take place from next Monday-Wednesday (22-24 January) on Yas Island in Abu Dhabi. The event will feature a trade connections area with 41 companies as well as sessions, events and tours.

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

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