🔥Al Jaber Heats Up COP28

Read time: 5.5 minutes

Good morning, ☀️

This week, Egypt's wealthiest man, Nassef Sawiris, announced his relocation to Abu Dhabi, while PureHealth's IPO attracted substantial investor interest.

Here’s what else we have for you today:

• 👑 AI Jaber’s bold COP28 stance on global energy

• 💸 Expert advice on portfolio rebalancing

Let’s dive in.

Markets 📈 

Money Brief 💰

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

Headline Roundup:

• Nassef Sawiris, Egypt's richest man with an AED 28b net worth, to relocate family office NNS Group to Abu Dhabi (BB)

• Shuaa Capital board approved termination of Al Ramz Capital as a liquidity provider for the company’s shares on the DFM (DFM) 

• RAKBANK received reaffirmation from Moody’s on its Baa1/P-2 credit rating along with a stable outlook (MDY)

• ADNOC reduces January Murban crude OSP to $83.32/barrel, down from December's $91.00 (YFN)

Earnings:

• Shuaa Capital reported a 52% rise in 9-month operating revenue, reaching AED 128m, but posted a net loss of AED 570m due to a one-off, non-cash impairment charge (ZWY)

• Ras Al Khaimah White Cement Company shares to be delisted from Kuwait Boursa  (ADX)

M&A / Investments:

• Dubai Holding subsidiary now owns 14.84% in Emirates NBD after Investment Corporation of Dubai transferred 937.5m shares in bank to DH 7 LLC (GBN)

• First Abu Dhabi Bank to commit over AED 500b in Green Finance by 2030 (PRN)

• Investcorp, a Bahraini private equity firm, joins consortium with Metito and lead by Orascom in ADNOC's AED 8b sustainable water project in Abu Dhabi (ZWY)

• RedBird IMI, an Abu Dhabi royal family backed consortium, pays off Barclay family's AED 5.55b Lloyds debt, paving way for control of the UK Telegraph and Spectator via debt-for-equity swap (RTR)

• ADNEC Group, an Abu Dhabi exhibitions operator, acquires Karavel, the French tourism group, from Equistone Partners Europe, a European mid-market private equity investor (ANG)

• EasyLease Motorcycle Rental, a subsidiary of Abu Dhabi's International Holding Company, acquired a 60% stake in Fully Charged, a UAE-based electric vehicle charging solutions provider (ADX)

• Dubai Financial Market launches a carbon credits trading pilot program, running from December 4–8, 2023, with transactions concluding on January 10, 2024, and settlement in USD by Dubai Clear and Dubai CSD (WAM)

• Abu Dhabi National Hotels acquired 50% stake in M Five Cleaning Services which is specialized in housekeeping and cleaning services (ZWY)

• Emirates Telecommunications Group (e&) signs its first Green Loan agreement worth AED 366m with a consortium of banks (GBN)

VC:

• Zenobē, a London-based e-vehicle tech firm, received an undisclosed investment from Abu Dhabi sovereign investor, Mubadala (MDB)

• Flow48, a UAE-based fintech start-up, secures AED 91.8m in a pre-Series A funding round including a mix of equity and debt funding from Speedinvest, Daphni, 212, Blockchain Founders Fund, Unpopular Ventures, Endeavor Catalyst, TLG and several angel investors (FFT)

• Omniful, a KSA and UAE-based an e-commerce platform startup, raised an AED 21.5m Seed round, led by VentureSouq, with participation from 500 Global, DASH Ventures, Jahez Group, SEEDRA Ventures, Bunat Ventures, Hala Ventures, and RZM Investments, along with family offices including Al Rasheed, Siraj Holding, Al Bawardi, Al Nafea, and a number of GCC angel investors (WMD)

• INOS, a Paris-based beauty tech startup, raised AED 2m in a Seed funding round from Dubai Sheikh Ali Al Maktoum's Private Office (ASO)

IPOs:

• PureHealth, a health-care platform, oversubscribed within an hour of its IPO opening. The IPO, managed by First Abu Dhabi Bank, offers 1.11 billion shares at AED 3.26 each, representing 10% of the company's equity, valued at AED 3.62b, with the subscription phase ending on December 11 and set for ADX listing on December 20. (PRN)

• Phoenix Group's shares surged 50% in its Abu Dhabi IPO, raising AED 1.36b, with the offering 33 times oversubscribed and marking the first crypto-related listing in the Middle East (CNT)

• M42, an Abu Dhabi healthtech company, will consider an initial public offering as it accelerates its expansion (TNN)

SPACs:

• ADC Acquisition Corporation, an Abu-Dhabi royal family backed SPAC, to rebrand as E7 Group and boost capital to AED 524m following merger with ADQ's United Printing & Publishing (ZWY)

Partnerships / Projects:

• TASC Towers Holding of Dubai to form AED 8b regional tower giant with gulf telcos Zain, and Ooredoo in a cash-and-share deal with a projected AED 1.8b in annual run rate revenue (TTT)

• TAQA is partnering with energytech firm Kraken Technologies of Octopus Energy Group to trial its energy platform in the UAE, while considering a joint venture to expand globally and establish an innovation hub in Abu Dhabi (TAQ)

• ADNOC and Tabreed inaugurate the Gulf's first geothermal cooling plant in Masdar City, with plans to replicate the project throughout the UAE (ADN)

• Wahed, a global Shariah-compliant fintech, launches in the UAE as the country's first dedicated Islamic digital investment platform (FFN)

• ADQ and Kazakhstan's Qazaqstan Investment Corporation establish a co-investment platform (ADQ)

• Abu Dhabi Ports forms joint venture with Kazakhstan Railways to enhance industrial infrastructure in Kazakhstan (ADM)

• Presight, a UAE analytics firm, and the Kazakh sovereign wealth fund, Samruk-Kazyna, form joint venture to accelerate digital transformation in Kazakhstan (MBS)

• MBME Pay, a UAE  payment platform, signs an agreement with Axiom Telecom to expand services and customer reach (ADX)

Personnel

• Maha Al Qattan resigned from her position as a Board Member at Shuaa Capital for personal reasons with a replacement pending (DFM)

• Briseida Sinaj has been appointed as the new CFO of MBME GROUP (ADX)

• Richard Teng has been appointed as the new CEO of Binance, succeeding his previous role as the CEO of Abu Dhabi Global Market Financial Services Regulatory Authority (CD)

• Shovit Sahai has been appointed as the Head of Product Management at the Bank of Singapore's Dubai branch, previously serving as Asia Head of Structured Products and Derivatives at BNP Paribas Wealth Management in Singapore (FNA)

Crypto / FX: 

• Trust Wallet, a crypto wallet app, shifts operations to Ras Al Khaimah, focusing on growth in Asia (YFN)

• Fasset, a crypto brokerage, secures the Virtual Asset Service Provider license from Dubai's VARA (FNM)

• Paxos, a crypto infrastructure firm, receives preliminary approvals from Abu Dhabi's FSRA for U.S. dollar-pegged stablecoin issuance and brokerage services in the Abu Dhabi Global Market (CNS)

Real Estate: 

• Aldar Properties, Abu Dhabi's largest listed developer, makes its first acquisition outside the Middle East by buying UK's London Square for AED 1.06b (RTR)

• Binghatti Properties and luxury automaker Mercedes-Benz to launch Mercedes-Benz Places, a luxury residential tower in downtown Dubai (YHF)

• Bugatti Residences hits a sale rate of AED 9,674 per square foot, selling out its first phase and nearing AED 1b in sales (ZWY)

• Aqua Properties to launch two projects worth AED 3b in Dubai, including a 50-storey-plus tower on Sheikh Zayed Road and a large development in Arjan (CWO)

• Aldar Properties’ Nikki Beach Residences in Ras Al Khaimah sold out phase one within 48 hours, with 420 beachfront units and over AED1bn in sales on Al Marjan Island (GN)

The Big Deal 👑

COP28 Unveils a Tapestry of Alliances and Debates

The recent COP28 climate summit has become a focal point, drawing the attention of global financial and environmental communities. President Sultan Ahmed Al Jaber's leadership has stirred discussions and controversies that are reshaping the landscape.

President Sultan Ahmed Al Jaber, who simultaneously leads ADNOC and presides over COP28, has challenged the prevailing narrative of swiftly abandoning fossil fuels. This stance has raised questions about the scientific foundations of rapid transition.

Al Jaber's perspective has triggered a spectrum of reactions, from environmentalists' criticism to broader conversations about the role of fossil fuels in future energy strategies. 

What Happened:

• President's Polarizing Perspective: Sultan Ahmed Al Jaber, simultaneously at the helm of ADNOC and COP28, challenged the established narrative of rapidly eliminating fossil fuels, questioning its scientific underpinning.

• Global Response: This stance has elicited a gamut of reactions, ranging from criticism by environmentalists to broader discussions on the role of fossil fuels in future energy policies.

• UAE's Strategic Position: The UAE's dual role as a major oil producer and a proponent of climate action places it at a unique crossroads, influencing its domestic and international policies.

Why It Matters: Al Jaber's comments at COP28 represent more than just a momentary ripple in the ongoing climate change and energy policy dialogue.

They are indicative of the broader challenges and opportunities facing nations like the UAE, which are navigating the complex transition towards sustainable energy solutions while managing existing economic dependencies.

This dynamic is particularly pertinent for investors and policy-makers, who must consider both the immediate and long-term implications of these discussions on global markets, environmental strategies, and the evolving landscape of international relations. (Source)

Expat Wallet 💸 

With inflation lurking and the stock and bond markets riding waves of unpredictability, the key to safeguarding your investments lies in the delicate dance of portfolio rebalancing. 

Yet, as common as it may sound, emotions often pull the strings, leading us astray.

Peter Siks, an investment coach at Saxo Bank, underscores this point, highlighting how investment objectives change with age.

He notes, "The investment portfolio of a 22-year-old looks different than the portfolio of a retired person at 69. The youngster wants capital to grow, whereas the older person is looking for preservation of capital and possibly some income as well."

Vijay Valecha, chief investment officer at Century Financial, emphasizes the significance of periodic portfolio rebalancing. 

It helps maintain target asset allocation, mitigate risk, and enhance long-term returns. Valecha suggests that for most retail investors, annual or semiannual rebalancing is appropriate, with automatic triggers when allocations deviate significantly.

When To Exit?

Identifying underperforming investments is a critical skill. As Valecha highlights, it involves assessing how an investment lags behind benchmarks or peers. But knowing when to exit is a nuanced dance.

Deciding when to exit hinges on your investment objectives, risk tolerance, and fundamentals. Peter Siks emphasizes the importance of distinguishing between a stock's price and its intrinsic value rooted in financial fundamentals. It's a compass for making informed decisions.

To strike that balance, consider semi-annual or annual rebalancing. 

Just remember, frequent rebalancing can raise management and trading costs. (Source)

Meme Freshener

That’s all for now! 

See you in your inbox with more updates next week 👋🏾

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