DEWA to Raise up to USD $2.19bn via its IPO...

UAE News:
The Dubai Electricity and Water Authority (DEWA) is looking to raise as much as AED 8.06bn (USD 2.19bn) via its IPO, with the indicative price range set at between AED 2.25 and 2.48 each. This is expected to be the biggest IPO on the exchange since 2007. Emirates Investment Authority, state holding company ADQ, Multiply Group, Alpha Dhabi Partners and Investment Holdings Est will become cornerstone investors in the IPO with a total commitment of up to USD 1.3bn.
The UAE President issued a federal law allowing the use of foreign reserves and international debt instruments to maintain balance in the UAE’s 2022 general budget, according to a tweet from the Finance Ministry.
The UAE Cabinet authorised the use of crowdfunding by both public and private sectors.
Dubai SME members won contracts worth AED 921.6mn in 2021, up 3% YoY, as part of the Government Procurement Programme. Contracts at the Expo topped the list (AED 161.7mn) followed by the Roads and Transport Authority (AED 95.2mn).
Abu Dhabi’s sovereign wealth fund Mubadala launched a USD 1.5bn worth five and ten-year bonds for sale.
UAE launched 10 initiatives to empower 15k coders in the UAE over a 15-month period including a coding ambassador programme, a language programmer challenge, and nomination of coders into career opportunities.
STR data showed that hotel occupancy in the UAE was 85% in the week ending 12th March: this is the highest in the world, compared to a global average of 50.8%. In Dubai, hotel occupancy was at 90.4%, with an average daily rate of AED 846.3 – this compares to 82.7% and AED 617.22 in the same week in 2019.
Dubai property market is going strong: there have been 12,119 sales transactions till late March, according to Property Monitor real estate data platform. This is 17.7% higher than in 2017, which had seen a similar good start to the year.
Dubai airport will close 2 of its runways for a 45-day maintenance from 9th May; this would move some flights (to 34 of its more than 90 destinations) temporarily to Dubai’s second airport (Al Maktoum International).

MENA News:
Bahrain recorded a 50% increase in foreign tourists for the Formula 1 Grand Prix 2022, compared to 2019.
Islamic banking’s market share in Bahrain rose to 38.8% of domestic banking assets and 17.8% of total banking assets (including foreign assets) at the end-2021. Fitch Ratings forecast that rising public demand will drive Islamic banks growth in Bahrain.
Egypt Suez Canal Authority will temporarily raise a surcharge on laden crude oil and petroleum products tankers transiting the canal to 15% of normal dues from 5%. This will come into effect from 1st May. In February, the Suez Canal posted a 15.1% YoY jump in revenue to USD 545.5mn.
Kuwait and Saudi Arabia agreed to develop the Durra gas field: the field is expected to produce one billion standard cubic feet per day of gas and 84k barrels per day of condensates.
Lebanon started talks with the IMF (The International Monetary Fund) delegation: the PM expressed hopes that a deal will be agreed to in the coming weeks, and before elections in mid-May.
Lebanon, in a bid to find alternatives to grain from Ukraine, is planning a tender to import 50k tonnes of wheat from India. However, it will depend on the Central Bank opening a credit line. The country is also waiting to hear from the US and Kazhakstan on specifications and prices, according to the Economy Minister.
Oman has opened a new land port at UAE’s Hatta, linking both countries, allowing for smooth movement of travellers from both sides.
S&P revised Saudi Arabia’s outlook to “positive” thanks to improvements in GDP growth and better fiscal dynamics over the medium term while reaffirming the rating at “A-/A-2”.
At the Saudi Capital Markets Forum, Tadawul’s CEO disclosed that the exchange has seen 16 listings so far in 2022, three were awaiting approval from the market regulator and more than 70 applications were pending. He underscored the sector diversity in recent listings and stated that it plans to provide companies with “new financing tools such as debt instruments”.
Saudi Arabia provided more than USD 80bn in support to SMEs, according to the governor the SME Authority Monsha’at. In addition to cash injections, support was also provided via regulatory improvements and advisory hub.

Global News:
Global markets showed a mixed picture last week, with US equities supported by a tech rally (amid rising US Treasury yields) while Stoxx600 and Chinese equities ended the week lower. The MSCI (Morgan Stanley Capital International) all world index posted gains for a 2nd consecutive week. Regional markets were mostly higher compared to a week ago, with Egypt’s index posting the biggest percentage gain in nearly 2 years (4.5%) last Monday when the Central Bank hiked rates. Oil prices increased (first weekly gains in 3 weeks) after an attack on a Saudi Aramco facility in Jeddah while safe haven assets gold and the Swiss franc remaining robust.

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SOURCE:
Nasser Saidi & Associates