🪙Abu Dhabi's Murky Spinoff

Read time: 3.5 minutes

Good Afternoon, ☀️

Sheikh Mohammed plans to fund an AED 205.7b Dubai social agenda, Abu Dhabi to launch first Shariah-compliant India ETF, FAB and UAE agency sukuks oversubscribe, ADQ eyes a bid for Dubai's largest office tower, and questions arise over IHC Abu Dhabi's asset valuation in its AED 99.17b 2PointZero spinoff.

Let’s dive in.

Markets 📈 

Money Brief 💰

A roundup of the biggest deals in the UAE this week.

Markets:

• Lunate Capital to launch first Shariah-compliant India ETF on the Abu Dhabi stock exchange (ZWY)

• Eshraq Investments buys back 150,000 shares, increasing its total treasury share holdings to 4.79% of the company (ADX)

• Emirates Driving investors approved a stock split and capital increase (ADX)

• FCI announced a suspension of all ready mix concrete sales from 1st February 2024, anticipating revenue loss in 2024 (ADX)

Earnings:

• Taaleem Holdings reported a record revenue of AED 258.7m with year-on-year net profit up by 60.5% (ADX)

• What we’re watching next week:

  • Mashreq Bank

M&A / Investments:

• Sheikh Mohammed to fund new AED 205.7b Dubai Social Agenda 33 plan to double Emirati families in 10 years (RBB)

• IHC Abu Dhabi to transfer AED 99.16b in Royal Group assets into the newly formed 2PointZero, with IHC owning 87% and the ownership of the remaining 13% unspecified (RTR)

• ADNOC Drilling and Alpha Dhabi’s AED 5.5b joint venture invested AED 661m for a stake in US-based Gordon Technologies, a measurement while drilling technology firm (ADN)

• Salmon, a consumer fintech company backed by Abu Dhabi sovereign wealth fund ADQ, will acquire a majority stake in a Philippine rural bank for an undisclosed sum (AGB)

• ADNOC buys 10.1% stake in Storegga, a UK-based developer of global carbon capture and storage projects for an undisclosed sum (DNC)

• Gulf Capital sells AmCan, a sports nutrition distributor, to an unnamed regional FMCG distributor (ZWY)

VC:

• Lokalee, a Dubai-based B2B content platform for hotels and holiday homes, raised AED 20.6m in pre-Series A funding led by Crown Private Fund (WYM)

• Maalexi, a risk management platform for agri-businesses, raised AED 11m pre-Series A funding led by Global Ventures (WMD)

• Eesee, a crypto marketplace, raised AED 10.47m through an AED 4m seed round and an AED 6.47m private round (CRN)

• Cargoz, a platform linking SMEs to warehousing companies with excess capacity, secured an undisclosed sum of seed funding led by Nama Ventures, RAZ Holding, and Innovest Properties (ZWY)

• Behomes, a CRM proptech, raised an undisclosed Seed round (CB)

Partnerships / Projects:

• UAE and India sign an AED 11b MoU to develop new port terminals and economic zones in Gujarat, India (XMN)

• Wiseband, a UAE-based satellite services company, partnered with Germany's Rivada to expand its satellite network (SWG) 

• e& and Cisco signed a MoU to collaborate on advanced connectivity solutions and services for UAE businesses (EME)

• Abu Dhabi Islamic Bank launched ADIB Business Souq, a B2B online marketplace designed to support SMEs in the UAE (ZWY)

• Ikigai Steel to setup 548,000 square feet factory in Sharjah’s HFZA with an annual production capacity of 30,000 tonnes (ZWY)

• AD Ports signed a contract with Egypt to construct, operate, and maintain passenger and cruise terminals at Hurghada, Safaga, and Sharm El Sheikh sea ports (AGB)

• Zand Digital signs an MoU with Dubai’s Real Estate Regulatory Agency to oversee real estate development escrow accounts as an approved bank (UAN)

• Dragon Oil, owned by the Dubai government, signed an MoU with Turkmenistan Oil to expand into three new oil fields in Turkmenistan's Block 19 (TRB)

• AVSS Group, an Abu-Dhabi based cybersecurity firm, entered a 24-month agreement with Sekur Private Data to distribute its Swiss-hosted encrypted solutions (YFN) 

• XMILE Group partnered with Abu Dhabi agencies to launch region's first enzyme-based fuel additives processing facility (MBS)

• Dubai Investments launches DIP Angola, a 2,000-hectare mixed-use development modelled after the Dubai Investment Park (ARB)

• Odys Aviation, a UAE-based VTOL aircraft builder, partnered with Aramex to develop autonomous logistics and introduce hybrid-electric VTOL cargo flights in the Middle East (SMX)

• UAE and India signed a deal to explore linking their energy grids through undersea cables (FPT)

• UAE-based fintechs Qashio and CredibleX partnered to launch financing solution for MENA businesses (PYM)

• Emirates Islamic launched Shariah-compliant digital wealth and equity trading platform (BST)

• DIFC and HFM, the hedge fund arm of With Intelligence, partnered to launch the UAE’s first hedge fund event in May (ZWY)

Debt:

• FAB, the UAE's largest bank by assets, issued a 5-year sukuk (Sharia-compliant bonds) at AED 2.9b, tightening the spread to 85 basis points over US Treasuries from 100 bps, after orders reached USD 1.45 billion (ZWY)

• UAE’s Ministry of Finance and Central Bank raised AED 2.8b in an Islamic treasury T-Sukuk auction that oversubscribed 3.35 times and achieved a 14 bps spread over similar US Treasuries (MOF)

• Mubadala, Abu Dhabi's sovereign investor, listed a USD 5.3b dual-currency bond on the ADX through issuing entity Mamoura Diversified Global Holding (ZWY)

Personnel:

• Q Holding, an Abu Dhabi firm with AED 44b of real estate assets, appointed Jassem Al Zaabi as chairman, Bill O'Regan as group chief executive officer, and Abdullah Al Sahi as group managing director (TRB)

• 2PointZero, an IHC Abu Dhabi subsidiary and holding company, appointed Sheikh Zayed bin Hamdan bin Zayed Al Nahyan as Chairman and Mariam bint Mohammed Saeed Hareb Almheiri as CEO (ZWY)

• ADX confirmed Ghannam Butti Al Mazrouei as Chairman (MDF)

• Ghitha Holdings, a retail subsidiary of IHC Abu Dhabi, elected Dr. Mhd Ajalyaqin as the board chairman and Mr. Hamad Shamsi as the vice chairman (ADX)

• Ajman Bank subsidiary, Skyrise properties, named Mohammed al Shamsi as CEO (GBN)

• UAE's prime minister appointed Maktoum bin Mohammed bin Rashid al-Maktoum as deputy prime minister for financial and economic affairs (RTR)

Crypto / FX: 

• Phoenix Group, an ADX-listed cryptocurrency mining hardware retailer, purchased Bitcoin mining machines worth AED 686m from Bitmain Development (ADX)

• India and the UAE initiate Rupee-Dirham direct trade, with plans to expand bilateral trade to AED 367.3b under their free trade pact (EIT)

Real Estate: 

• ADQ, the Abu Dhabi-based AED 576.7b wealth fund, is considering a bid for a minority stake in Dubai's largest office tower, ICD Brookfield Place, valued at up to AED 5.5b (BBG)

• Aldar Properties invests an additional AED 1b to expand its logistics real estate business in Dubai and Abu Dhabi (GLN)

• Sheikh Hamdan, Crown Prince of Dubai, approves a series of projects spanning housing, education, social services, tourism and entertainment sectors as part of the Hatta Master Development Plan (GBN)

• RAKPROP unveiled Quattro Del Mar, its luxury coastal residential project on Hayat Island, Mina Al Arab (RKP)

• MAG, a UAE real estate developer, acquires a plot in Downtown Dubai for AED 350m to develop Keturah, a luxury residential project, by Q4 2027 (ZWY)

• Meraas, a Dubai government-owned developer, is launching The Acres villa project on January 12, with prices starting at AED 5.09m (NNW)

• Vogo Hotels, an InterContinental Hotels Group brand, acquires Westin Abu Dhabi Golf Resort & Spa for an undisclosed sum (ABC)

• Ajman Bank launches real estate subsidiary Skyrise Properties to provide property management, sales, leasing and brokerage services (GBN)

Money Souk’s Picks:

• Karen Kwok raises questions about IHC Abu Dhabi's murky asset valuation processes and its latest AED 99.17b spinoff, 2PointZero

• Bloomberg breaks down the power shift in private equity, with funds like UAE's ADIA demanding distributions from old investments and greater transparency for new fundraises

Meme Freshener

That’s all for now! 

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DISCLAIMER: This information is prepared by Money Souk and uses public and reliable sources. Money Souk nor any of its directors, isn't liable for its content or use. It's not intended as investment advice or a solicitation to trade financial products.