Analysis Telecoms Analysts question possible Adia bid for India telecoms group Abu Dhabi’s top sovereign wealth fund, Abu Dhabi Investment Authority (Adia), is among the preferred bidders for a minority stake in Vodafone Idea, a struggling Indian telecom company. However, analysts are warning that the deal makes little commercial or financial sense. Vodafone Idea is India’s third largest mobile operator, but has lost about 210 million […] August 20, 2024
Analysis Trade Metals market under pressure with India-UAE pact review The UAE’s lucrative trade in gold, silver and other precious metals is facing fresh scrutiny as India seeks a review of a Comprehensive Economic Partnership Agreement between the two countries. The evaluation could significantly alter the flow of these metals, impacting UAE businesses and particularly affecting exports from Russia via the Gulf state. Sunil Barthwal, […] August 20, 2024
Trade India pushes for more rupee-dirham payment in UAE trade India’s central bank has told lenders dealing with the UAE to settle at least part of their trade payments directly using the rupee and dirham. The Reserve Bank of India (RBI) has not provided specifics of the targets, but has asked banks to report back the extent of rupee or dirham-denominated payments, Reuters reported, citing […] August 19, 2024
Analysis Telecoms Worst is over for Etisalat shares but don’t expect a rebound Shares in UAE blue-chip e& – more commonly known as Etisalat – have fallen by more than half from a 2022 peak as investors fret over difficulties related to some of the telecom operator’s foreign investments. Yet analysts believe these issues are now priced in and so the worst should be over for the stock. Etisalat […] August 19, 2024
Transport Abu Dhabi’s Noatum enters Egypt with Safina buyout Noatum, an Abu Dhabi state-owned AD Ports Group company subsidiary, has acquired a majority stake in Safina, an Egyptian maritime and cargo services provider. The deal, the value of which was not disclosed, is expected to close in Q3 2024, the UAE state-run Wam news agency reported. The acquisition of Safina will support Noatum Maritime’s […] August 18, 2024
Analysis Telecoms UAE broadband users pay dearly for lack of competition Telcos may have generated nearly AED94 billion ($25 billion) in revenue for the UAE government, but a lack of competition and steep costs means that residents have been hit with the highest broadband bills in the Gulf. With an average price of $142.65 per month, people in the UAE are paying more than double than […] August 18, 2024
Logistics DP World profit falls 60% amid Red Sea disruption Dubai’s DP World said profit fell 60 percent in the first half of the year, as the global port operator felt the impact of the Red Sea disruption. Profit attributable to owners fell to $265 million in the first six months from $651 million a year earlier. However, revenues were up 3 percent to $9.3 […] August 16, 2024
Analysis Finance Mubadala Capital puts faith in biotech startups Abu Dhabi’s Mubadala Capital has made early-stage investments into three US biotech startups this year, taking advantage of a broader decline in company valuations to buy into the fast-growing sector. Biotechnology uses living organisms to make products, often pharmaceuticals. There are nearly 7,600 biotech-based drugs in development in the US according to the Biotechnology Innovation […] August 16, 2024
Banking and Finance More mergers likely in GCC Islamic insurance market More consolidation is likely among small and medium-sized Islamic insurers in the UAE and Saudi Arabia for the rest of the year, as they continue to struggle with weak earnings, according to analysts. One in five Islamic insurers in Saudi Arabia and one in three of those in the UAE merged in recent years, in […] August 15, 2024
Real Estate Arada moves into Australia with first project set for 2025 UAE developer Arada is planning multiple projects, valued at AED6 billion ($1.6 billion) in Australia, adding more than 2,500 dwellings in Sydney, the country’s most populous city. The Dubai-based master developer announced that the first project will be launched next year, after opening its office in Sydney. Arada’s Australian-born group CEO Ahmed Alkhoshaibi will spearhead […] August 15, 2024
Finance Dubai’s Amanat to pay $20m dividend despite profit fall Amanat Holdings, a Dubai-listed investment company, will pay an interim dividend of AED75 million ($20.4 million) for the first half of 2024 despite a decline in profit. The bottom line fell 8 percent year on year to AED89 million, impacted by the one-time gain in the last year and the impact of corporation tax. Excluding […] August 15, 2024
Analysis Telecoms Telcos turning to tech to propel growth Fear of market irrelevance has spurred former Gulf telecom operators such as e& to bet on providing more sophisticated, tech-based services to consumers and businesses. This strategy differs from earlier efforts to create a vast geographic footprint for their operations, which, in many cases, led Gulf telcos to nurse billion-dollar losses. E&, which is listed […] August 15, 2024
Infrastructure UAE company involved in $1bn project in Uzbekistan A consortium, which includes an Abu Dhabi state-owned company, is set to develop a $1 billion wastewater treatment plant in Uzbekistan. The group, comprising Abu Dhabi Sustainable Water Solutions Company, Japan’s Marubeni Corporation and France’s Suez, signed a development agreement with Uzbekistan’s investment, industry and trade ministry and state-run Uzsuvtaminot JSC. The project, located in […] August 15, 2024
Finance ADGM reports 31% increase in registered entities in H1 Abu Dhabi Global Market (ADGM), a financial free zone in the UAE capital, reported a 31 percent year-on-year increase in the number of registered entities to 2,088, including 231 in financial services. Assets under management rose by 226 percent year on year in the first half. By June 2024, ADGM had 112 fund and asset […] August 15, 2024
Banking and Finance Emirates NBD seeks majority stake in India’s Yes Bank Dubai’s largest lender Emirates NBD is in advanced talks to acquire a majority stake in India’s Yes Bank, according to a media report. The potential acquisition comes as the state-owned State Bank of India (SBI) intends to divest its 24 percent stake in Yes Bank for $2.2 billion by the end of March, Reuters reported […] August 14, 2024
Energy Taqa first-half profit falls despite rising revenues Abu Dhabi National Energy Company (Taqa) said net profit attributable to shareholders fell 68 percent year on year to AED4.4 billion ($1.2 billion) in the first half of 2024. Revenues reached AED27 billion, up 2 percent than the prior year’s period, due to the contribution from Sustainable Water Solutions Holding Company, which was acquired in […] August 14, 2024
Economy Salik revenue rises but profit growth slows Dubai toll operator Salik’s second-quarter profits fell 2 percent year on year to AED268 million despite a 3 percent rise in revenues to AED533 million. Revenue-generating trips reached 116 million, up 2 percent year on year, the highest second-quarter revenue-generating trips since inception. Growth remained strong across several gates in the second quarter, with Jebel […] August 14, 2024
Aviation Air Arabia profits slip even as revenues climb Air Arabia’s profits declined in the second quarter of 2024, impacted by rising costs amid economic and geopolitical uncertainties. The UAE’s low-cost carrier reported a 7 percent fall in net profit, down to AED427 million ($116.3 million) from AED459 million in the same period last year. “The aviation industry continued to experience slower yield growth […] August 13, 2024
Opinion Finance The UAE closes in on the ‘shady men in sunny places’ Far from being a safe haven for fugitives, Abu Dhabi has accelerated the pace of its extraditions August 12, 2024
Energy Adnoc Gas finance chief bullish on future demand Adnoc Gas is aiming to increase capacity by one-fifth by 2028 to cope with increasing demand. “That’s a combination of us making the most of what we already have, really utilising those assets, plus building new capacity,” chief financial officer Peter Van Driel said on Monday. The company supplies nearly two-thirds of the UAE’s gas […] August 12, 2024
