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Valu Closes its Eighth Securitization worth EGP 888 Million

By
Sahfy Sahfy
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Valu Closes its Eighth Securitization worth EGP 888 Million
Valu Closes its Eighth Securitization worth EGP 888 Million

Valu, MENA’s leading universal financial technology powerhouse, announced today that it has closed its eighth securitized bond issuance worth EGP 888 million. The issuance is part of the approved extended program worth EGP 9.0 billion.

The bond is backed by a receivables portfolio assigned to EFG for Securitization, the issuance’s special purpose vehicle (SPV), and is comprised of two tranches:

  • Tranche A – Valued at EGP 639.4 million, with a 6-month bond tenor, a Prime 1 (sf) rating, and a fixed interest rate.
  • Tranche B – Valued at EGP 248.6 million, with a 12-month bond tenor, a Prime 2 (sf) rating, and a fixed interest rate.

Shokry Bidair, CFO of Valu, said, “We are excited about the latest securitized bond offering, which signifies a major milestone in our strategic journey. With the successful closure of our eighth securitization issuance in partnership with EFG Hermes, we are taking a significant step towards sustainable growth and expanding our ability to deliver diverse and innovative financial services to our clients. This offering builds on our past successes and sets the stage for us to explore new and innovative ways to access the debt capital market, supporting our ambitious growth objectives. By strengthening our financial base, we are reaffirming our commitment to cementing Valu as a leading financial technology powerhouse, delivering comprehensive financial solutions tailored to meet the evolving needs of our customers.”

Valu, is revolutionizing the financial landscape in Egypt by enriching the lives of millions with its cutting-edge offerings. The company’s flagship BNPL platform ‘U’ and a diverse array of investment products, such as the AZ Valu fund and EFG Hermes ONE, are empowering customers to achieve their financial goals with ease. In addition to these services, Valu continues to introduce innovative solutions to meet its customers’ evolving needs. From the instant cash redemption program Sha2labaz to the convenient savings solution Akeed and the luxury financing program Ulter, Valu is committed to providing comprehensive financial services tailored to enhance the customer experience. Recently, Valu has unveiled its co-branded credit card and prepaid card in partnership with Visa, expanding its range of offerings to provide greater financial flexibility and convenience to its customers.

Maie Hamdy, Managing Director – Debt Capital Markets at EFG Hermes, commented on the transaction, saying, “We are thrilled to be a part of Valu’s continued success story. This latest transaction not only underscores our dedication to providing innovative financial solutions but also showcases the exceptional collaboration between our teams at EFG Holding. We are thrilled to play a pivotal role in fueling Valu’s remarkable growth trajectory, and we eagerly anticipate the boundless opportunities that lie ahead for our dynamic partnership.”

EFG Hermes was the sole financial advisor and sole transaction manager. EFG Hermes and Arab African International Bank (AAIB) also acted as the issuance’s underwriters. African International Bank (AAIB) also acted as the custodian bank. Arab Banking Cooperation (ABC), and Al Ahli Bank of Kuwait (ABK) were within the subscribers to the issuance. Dreny & Partners acted as the legal advisor. Baker Tilly acted as the transaction’s auditor.

ADGM 2024 Growth Outlook: Over 70% of Companies in ADGM Plan Workforce Expansion in 2024

By
شمس سيف
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ADGM 2024 Growth Outlook: Over 70% of Companies in ADGM Plan Workforce Expansion in 2024

Abu Dhabi Global Market (ADGM), the international financial centre (IFC) of Abu Dhabi, stands as a testament to the vision and ambition that drive the United Arab Emirates (UAE) and the wider region’s economic landscape. A recent comprehensive survey conducted among the ADGM community offers a window into the promising outlook for ADGM in 2024.

The survey results indicate a strong growth trajectory in several sectors, with Asset Management poised to take the lead, as 18.56% of respondents recognise its significant growth potential. Following closely are the Fintech and the fields of Digital Assets, Blockchain, and Distributed Ledger Technology (DLT), with 17.08% and 16.83% of stakeholders banking on their rise, respectively. These sectors are reinforced by the growing interest in Sustainable Finance and Private Banking and Wealth Management, which are also projected to experience substantial growth. Furthermore, Professional Services are forecast to continue their upward trend, rounding out the sectors set for expansion within the dynamic financial landscape of the IFC.

ADGM’s Unique Position as a Premier IFC

The survey shed light on the unique attributes that define ADGM’s appeal as a business hub. Notably, 21.35% of participants acknowledged the robust regulatory environment as a cornerstone of ADGM’s competitive edge. The market’s strategic location was also highlighted by 19.66% of the survey pool, underlining ADGM’s role as a strategic gateway for tapping into the MEASA region and beyond. The multitude of networking opportunities (17.04%), the exceptional quality of life (14.98%), and the diverse community (14.04%) were also recognised as key strengths that contribute to ADGM’s position as an attractive business destination. In addition, the availability of a skilled workforce, acknowledged by 11.24% of respondents, emphasises the market’s capacity for attracting and fostering professional talent.

Anticipated Employment Surge in ADGM

A total of 70.81% of companies anticipate expanding their workforce in ADGM during 2024, with 29.93% expecting significant increases and 40.88% planning moderate growth in staffing. This collective optimism underscores Abu Dhabi’s robust economic health and the strong confidence within the business community in the IFC’s conducive business environment.

Business Community Confidence in ADGM

The confidence in ADGM is further reinforced by the readiness of the business community to recommend the IFC to businesses. An impressive 97.08% of business leaders express a positive inclination towards endorsing ADGM. Among them, 71.53% are ‘Highly likely’ and an additional 25.55% consider themselves ‘Likely’ to recommend it. This substantial majority reflects the strong confidence in which ADGM’s world-class regulatory framework, advanced infrastructure, and exceptional business opportunities held within the global business community. Moreover, this is a clear reflection that ADGM’s comprehensive approach to fostering a supportive, innovative, and thriving business environment is clearly resonating with the global business community, positioning it as a leading IFC and a hub of economic activity for the future.

Abu Dhabi a City Known for Safety, Stability and Quality of Life

A combined 78.84% of respondents endorse Abu Dhabi’s overall liveability positively. This endorsement highlights the city’s effectiveness in delivering an outstanding quality of life, supported by superior infrastructure, affordable living costs, and luxurious community facilities. Additionally, Abu Dhabi’s achievement in being ranked as the world’s safest city for the 8th consecutive year further underlines its excellence in ensuring the security and well-being of its residents, making it an even more attractive destination for both expatriates and nationals.

WIZZ AIR ABU DHABI SHARES LOVE OF TRAVEL THIS RAMADAN WITH AN INCREDIBLE FLASH 20 PERCENT SALE ON TICKETS

By
شمس سيف
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WIZZ AIR ABU DHABI SHARES LOVE OF TRAVEL THIS RAMADAN WITH AN INCREDIBLE FLASH 20 PERCENT SALE ON TICKETS

Wizz Air Abu Dhabi, the ultra-low-fare national airline of the UAE, is celebrating Ramadan with an unmissable promotion on selected routes for travel lovers looking to discover must-see destinations. The flash promotion is applicable for bookings made on 20 March, with travel dates to destinations, including vibrant cities and natural paradises across its ever-expanding network, available until 30 June 2024*.

The selected routes are now available on wizzair.com and the WIZZ mobile app, both accessible in Arabic. With Wizz Air, ultra-low-fares are just a few clicks away!

The second largest airline in Abu Dhabi is allowing travellers to book a well-deserved vacation to discover hidden gems, savour delicious dishes from nearby spots and explore the history of charming neighbourhoods. The exciting promotion during the busy travel period offers travellers affordable, hassle-free travel opportunities and incredible value for money.

Johan Eidhagen, Managing Director of Wizz Air Abu Dhabi, said: “As the flagbearer for ultra-low-cost travel in the region, we are delighted to celebrate the holy month of Ramadan with an extraordinary promotion that enables an exhilarating adventure for all ages. We are committed to spontaneous travel during the busy travel period and beyond as we continue to foster connectivity and create unmissable travel experiences. We strongly encourage all adventurous travellers to secure their bookings early to enjoy the lowest fares to a plethora of incredible destinations. We look forward to welcoming you on board our aircraft soon.”

Passengers can book tickets with confidence, thanks to WIZZ Flex. With WIZZ Flex, passengers can change their flight up to three hours before departure without any fee and receive 100% of the fare immediately reimbursed in airline credit.

Strategically located in the UAE, Wizz Air Abu Dhabi provides ultra-low-fares and efficient travel options to Alexandria (Egypt), Almaty (Kazakhstan), Amman (Jordan), Ankara (Turkey), Aqaba (Jordan), Athens (Greece), Baku (Azerbaijan), Belgrade (Serbia), Bishkek (Kyrgyzstan), Cairo (Egypt) and Dammam (Saudi Arabia). As well as routes to Kuwait City (Kuwait), Kutaisi (Georgia), Larnaca (Cyprus), Male (Maldives), Madinah (Saudi Arabia), Muscat (Oman), Nur Sultan (Kazakhstan), Salalah (Oman), Santorini (Greece), Samarkand (Uzbekistan), Sarajevo (Bosnia), Sohag (Egypt), Tashkent (Uzbekistan), Turkistan (Kazakhstan), Tirana (Albania) and Yerevan (Armenia) among others.

*One-way price, including administration fee. One carry-on bag (max: 40x30x20cm) is included. Trolley bag and each piece of checked-in baggage is subject to additional fees. The price applies only to bookings made on wizzair.com and the WIZZ mobile app. Number of seats at indicated prices are limited.

ICAEW and SOCPA: Strengthening Anti-Money Laundering Vigilance in Saudi Financial System

By
Sahfy Sahfy
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ICAEW and SOCPA: Strengthening Anti-Money Laundering Vigilance in Saudi Financial System
ICAEW and SOCPA: Strengthening Anti-Money Laundering Vigilance in Saudi Financial System

20 March 2024: The Institute of Chartered Accountants in England and Wales (ICAEW) and the Saudi Organisation for Chartered and Professional Accountants (SOCPA) have urged chartered accountants in the Kingdom to elevate their professional scepticism in the ongoing battle against money laundering.

 

In a recent joint webinar addressing the pressing issue of Anti-Money Laundering (AML), ICAEW and SOCPA aimed to guide organisations on how to navigate their anti-money laundering compliance obligations. The distinguished panel included:

 

  • Ahmed Abdullah Al-Meghames, CEO of SOCPA
  • Abdularahman Alshabib, Senior Supervisor at SAMA
  • Hanadi Khalife, Head of Middle East at ICAEW
  • Duncan Wiggetts, Chief Officer of the Professional Standards Department at ICAEW
  • Michelle Giddings, Head of Anti-Money Laundering at ICAEW

 

The expert panel highlighted the increased vulnerability of KSA to financial crimes due to its importance in international trade and finance, stressing the crucial role played by the public and private sectors in combatting this threat. Vigilance and prompt reporting of suspicious business activities were emphasised as key components of an effective anti-money laundering strategy.

 

ICAEW’s award-winning training film ‘All Too Familiar’, produced in collaboration with the UK’s HM Revenue and Customs, was screened during the event. The film delves into the dynamics of trust in personal and professional relationships, prompting reflections on whether trust alone can effectively combat economic crime. The objective was to challenge perspectives and foster discussions on the necessity for increased professional scepticism when facing potential money laundering risks.

 

Dr. Ahmed Abdullah Al-Meghames, CEO of SOCPA, said: “Combatting money laundering is an integral mission for SOCPA as we strive to uphold the highest standards of professionalism and ethical conduct in the Saudi financial sector. Through joint initiatives like these, we can equip professionals with the knowledge and skills necessary to identify and report suspicious activity, ultimately safeguarding the Kingdom’s financial system and promoting sustainable economic growth.”

Hanadi Khalife, Head of Middle East at ICAEW, said: “Accountants are the key gatekeepers for the financial system, facilitating vital transactions that underpin the economy. As such, we have a significant role in ensuring our services are not used to further a criminal purpose. Our job is to help organisations recognise, prevent, and report money laundering.”

– ENDS –

 

Media enquiries:

Tarik Raouf, Mojo PR, on +971 (0)55 930 9272 or email tarik@mojo-me.com

 

 

Notes to editors:

 

About ICAEW

Chartered accountants are talented, ethical and committed professionals. ICAEW represents more than 202,000 members and students around the world.

 

Founded in 1880, ICAEW has a long history of serving the public interest, and we continue to work with governments, regulators and business leaders globally. And as a world-leading improvement regulator, we supervise and monitor over 12,000 firms, holding them and all ICAEW members and students to the highest standards of professional competency and conduct.

 

We promote inclusivity, diversity and fairness and we give talented professionals the skills and values they need to build resilient businesses, economies and societies, while ensuring our planet’s resources are managed sustainably.

 

ICAEW is the first major professional body to be carbon neutral, demonstrating our commitment to tackle climate change and supporting UN Sustainable Development Goal 13.

 

ICAEW is a founding member of Chartered Accountants Worldwide (CAW), a global family that connects over 1.8m chartered accountants and students in more than 190 countries. Together, we support, develop and promote the role of chartered accountants as trusted business leaders, difference makers and advisers.

 

We believe that chartered accountancy can be a force for positive change. By sharing our insight, expertise and understanding we can help to create sustainable economies and a better future for all.

EFG Holding Shatters Records with EGP 14.7 Billion in Revenues, Fueled by Stellar Performance From EFG Hermes, Valu, and aiBANK

By
Sahfy Sahfy
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EFG Holding Shatters Records with EGP 14.7 Billion in Revenues, Fueled by Stellar Performance From EFG Hermes, Valu, and aiBANK
EFG Holding Shatters Records with EGP 14.7 Billion in Revenues, Fueled by Stellar Performance From EFG Hermes, Valu, and aiBANK

Revenue Growth Reported by the Three Verticals Underpinned the Group’s Net Profit After Tax and Minority Interest, Up 39% Y-o-Y to Reach EGP 2.5 Billion

Cairo, 20 March 2024

EFG Holding, a financial institution with a universal bank in Egypt and the leading investment bank in the Middle East and North Africa (MENA), announced today its results for the full year ended 2023. The Group booked its highest-ever recorded revenues of EGP 14.7 billion, representing a 34% Year-on-Year growth, fueled by the stellar performance of its Investment Bank’s (EFG Hermes) sell-side and buy-side, Valu, and its commercial bank arm, aiBANK.

EFG Holding operating expenses rose 35% Y-o-Y on higher employee expenses and other G&A, particularly at EFG Hermes, followed by aiBANK, and higher provisions and ECL across EFG Finance’s lines of business and aiBANK. In terms of profitability, the Group’s net operating profit increased 32% Y-o-Y to EGP 4.9 billion. Meanwhile, net profit rose 47% Y-o-Y to EGP 3.2 billion in FY23, driven primarily by Brokerage, Asset Management, Valu, and aiBANK’s growth in profitability. Meanwhile, the Group’s net profit after tax and minority interest came in at EGP 2.5 billion, up 39% Y-o-Y, and the Group’s total assets stood at EGP 121.9 billion at the end of December 2023.

Karim Awad, Group CEO of EFG Holding, reflected on the Group’s performance, stating, “The exceptional performance of EFG Holding in 2023 stands as a testament to our team’s unwavering dedication in navigating challenging economic conditions, our steadfast commitment to excellence, and our strategic foresight. With our unprecedented revenues and impressive profitability, we continue to set the standard in the financial industry in the MENA region, providing value and fostering growth across our diverse range of services. The record-breaking financial results, driven by the remarkable contributions of EFG Hermes and aiBANK, underscores the strength of our strategic vision that revolutionized our business model years ago, as well as our enduring commitment to delivering excellence to our clients, shareholders, and communities. Our dedication to innovation and sustainable growth remains resolute.”

On the investment bank side of the house, EFG Hermes had a strong year, with its revenues rising 32% Y-o-Y to EGP 8.1 billion in FY23, driven primarily by its core operations, the sell-side, and the buy-side. Sell-side revenues grew 51% to EGP 3.8 billion, lifted by Brokerage revenues. While Investment Banking revenues were essentially flat Y-o-Y, inching down 2% Y-o-Y, Brokerage revenues shot up 73% Y-o-Y, underpinned mainly by Brokerage Egypt’s strong executions.

Meanwhile, the buy-side’s revenues leaped 75% Y-o-Y to close the year at EGP 1.3 billion; mainly driven by robust growth in the Asset Management business, with the Asset Management revenues surpassing the EGP 1.0 billion mark in FY23 versus EGP 553 million in FY22, driven by higher incentive and management fees booked by FIM Partners and higher incentive fees booked by Egypt’s Asset Management. Meanwhile, Private Equity revenues increased 44% Y-o-Y to EGP 246 million in FY23 on higher management fees.

The Investment Bank net profit after tax and minority interest increased 20% to record EGP 1.6 billion compared to EGP 1.3 billion in FY22.

Revenues at EFG Finance, the Group’s Non-Bank Financial Institutions (NBFI) platform, rose 17% Y-o-Y to reach EGP 3.0 billion in FY23, underpinned by Valu, which drove the NBFI’s top and bottom line in FY23, with its revenues spiraling up 78% Y-o-Y to EGP 1.2 billion in FY23. Operating expenses rose 17% Y-o-Y to EGP 2.3 billion, driven primarily by higher Provisions & ECL.

 

This was followed by EFG Corp-Solutions reporting higher revenues, with revenues from the Leasing side of the business rising 23% Y-o-Y to EGP 363 million and the Factoring side adding 45% Y-o-Y to EGP 120 million. Meanwhile, Tanmeyah’s revenues declined 14% Y-o-Y to EGP 1.3 billion, while Fatura reported higher revenues, up 45% Y-o-Y, as Fatura’s acquisition was completed in June 2022. Furthermore, net profit after tax and minority interest rose 51% Y-o-Y to EGP 349 million on strong growth in profits reported by Valu.

 

aiBANK experienced a robust year, as the Bank saw its revenues soar 61% Y-o-Y to EGP 3.6 billion in FY23, driven by higher net interest income on the back of loan book growth. Moreover, Fees & commissions increased more than three times, largely on higher trade finance activities. The Bank’s net profit after tax more than doubled, up 117% Y-o-Y to EGP 1.1 billion (of which the Group’s share is EGP 591 million) in FY23, reflecting the Bank’s resilient growth in operations.

“With Egypt’s market taking a pivotal turn following the recent floatation, EFG Holding looks ahead with optimism towards our future endeavors. Our robust balance sheet has been strategically hedged to withstand the fluctuations in the EGP, while our expanding regional operations consistently yield considerable USD revenues annually. These factors, combined with the promising growth trajectories of Valu, aiBANK, and Tanmeyah, instill in us a growing sense of confidence in the resilience and efficacy of the business model we have diligently built. We are increasingly assured of our ability to not only weather challenges but also to drive sustained profitability and create value for shareholders, clients, and communities” concluded Awad.

EFG Holding’s FY23 financial results and management’s commentary are available on the Firm’s website.

EFG Hermes Concludes Advisory on Cenomi Retail’s Sale of a Portfolio of Fashion Brands to Abdullah Al-Othaim Fashion

By
Sahfy Sahfy
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EFG Hermes Concludes Advisory on Cenomi Retail’s Sale of a Portfolio of Fashion Brands to Abdullah Al-Othaim Fashion
EFG Hermes Concludes Advisory on Cenomi Retail’s Sale of a Portfolio of Fashion Brands to Abdullah Al-Othaim Fashion

EFG Hermes, an EFG Holding Company and the leading investment bank in the Middle East and North Africa (MENA), announced today that it concluded advisory on a merger and acquisition (M&A) deal for Cenomi Retail, the largest franchise retailer in the Kingdom of Saudi Arabia. The retail giant has agreed to sell a select portfolio of brands to Abdullah Al-Othaim Fashion Company, a fully owned subsidiary of Abdullah Al-Othaim Investment Company.

As part of the agreement, Cenomi Retail had reached a definitive share purchase agreement with Abdullah Al-Othaim Fashion Company for the acquisition of 100% of the share capital of Innovative Outfit Trading Company, a Cenomi Retail subsidiary holding the franchise rights for the 16 brands involved in the deal in December 2023, which closed in February 2024 after obtaining the required approvals and completing the agreed-upon commercial and regulatory conditions.

Abdullah Silsilah, Director, Investment Banking at EFG Hermes, said, “We are immensely proud to have played a pivotal role in seamless execution of this transaction. Marking our second transaction in the Kingdom’s retail space in 2024, this not only perfectly aligns with our strategic objectives of bolstering our footprint in Saudi Arabia, but also underscores our commitment to showcasing the nation’s vast potential across various sectors.”

This transaction is a significant milestone in Cenomi Retail’s ongoing transformation program, aligning with its strategy to focus on Champion brands within the Fashion, Electronics, and Food & Beverage categories.

EFG Hermes acted as the sell-side advisor to Cenomi Retail on the transaction, while the legal advisor was Clyde & Co. The legal advisor for Al Othaim was Latham & Watkins.

Forbes Middle East Reveals The Top 100 Arab Family Businesses 2024

By
Sahfy Sahfy
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Forbes Middle East Reveals The Top 100 Arab Family Businesses 2024
Forbes Middle East Reveals The Top 100 Arab Family Businesses 2024

Forbes Middle East Reveals The Top 100 Arab Family Businesses 2024

Forbes Middle East has unveiled its annual list of the Top 100 Arab Family Businesses for 2024, highlighting the long-standing conglomerates transforming through expansion and investment in the region. To construct this list, Forbes Middle East only considered businesses owned or run by Arab families. The conglomerates were ranked on their size, value, performance, business activity, age, legacy, and extent of the business’ geographic and sector diversification.

GCC families are the most successful in the family business space, with 34 of the 100 firms originating from Saudi Arabia, 28 from the UAE, and seven businesses each from Kuwait and Qatar. Combined, these four Gulf countries constitute 76% of the list.

The Saudi Arabia-headquartered Abdul Latif Jameel reigns in the first place, with the UAE’s Al-Futtaim Group and Egypt’s Mansour Group rounding up the top three. Of the top 10, the billionaire-owned Mansour Group is the only non-GCC-based entry. In May 2023, U.S. Major League Soccer awarded a $500 million franchise to a group led by Mohamed Mansour to launch a football club in San Diego, California, by 2025. Group Chairman Mohamed Mansour, alongside brothers Youssef and Yasseen, had a combined net worth of $5.8 billion as of February 2024, making them the richest Arab family featured on this year’s list.

From traditional real estate to hospitality investments, the family businesses on this list have stood the test of time, with six being established in the 1800s and 26 established before 1950. Just six were established in the 2000s, all of which were formed due to a split or sale of an earlier business or consolidation of pre-existing assets to form a holding group. For instance, Morocco’s O Capital Group was founded in 2021 when Holding Benjelloun Mezian merged with FinanceCom in the same year. In contrast, Oman-based Towell Group is the oldest family business in the ranking, with roots dating back to 1866.

Backing sustainable operations with substantial capital has been a consistent priority for several of the 2024 listees. For example, AlNowais Investments Group has over 1,230MW of clean energy projects in Africa, Burkina Faso, Egypt, Jordan, Morocco, and Togo, either in operation or under construction. Meanwhile, Alfardan Group signed an MoU with Electronics Recycling Factory to develop environmental sustainability and encourage e-waste recycling in June 2023. Similarly, the Safari Group and the Knauf Group agreed in December 2023 to invest in and build a new state-of-the-art plasterboard production facility that will significantly reduce energy and water consumption.

Top 10 Arab Family Businesses In The Middle East 2024

1| Abdul Latif Jameel

Country: Saudi Arabia

Established: 1945

2| Al-Futtaim Group

Country: U.A.E.

Established: 1930s

3| Mansour Group

Country: Egypt

Established: 1952

4| Majid Al Futtaim Holding

Country: U.A.E.

Established: 1992

5| Olayan Financing Company (OFC)

Country: Saudi Arabia

Established: 1947

6| Al Ghurair Investment

Country: U.A.E.

Established: 1960

7| SEDCO Holding

Country: Saudi Arabia

Established: 1976

8| Al Muhaidib Group

Country: Saudi Arabia

Established: 1943

9| Al Ghurair Group

Country: U.A.E.

Established: 1960

10 | DAMAC Group

Country: U.A.E.

Established: 1982

Click here to view the complete list of the Top 100 Arab Family Businesses 2024.

ADNOC Drilling Receives Shareholder Approval for $358 Million Final 2023 Dividend and Reconfirms its AI-Enabled Accelerated Growth Commitments at Annual General Assembly Meeting

By
Sahfy Sahfy
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Executive Photo provided by the company sent to the statement.
Executive Photo provided by the company sent to the statement.

Increased final dividend amounts to $358 million (8.22 fils/share) and brings total 2023 dividend to $717 million (16.45 fils/share) representing a 5% year-on-year increase versus 2022.

Company reaffirms its commitment to deliver highly attractive shareholder returns and progressive dividend policy.

Company sets out robust growth strategy for 2024, embracing AI, digitization, and advanced technologies as it capitalizes on considerable growth opportunities.

Abu Dhabi, UAE – March 14, 2024: ADNOC Drilling Company PJSC (“ADNOC Drilling” or the “Company”) (ADX symbol: ADNOCDRILL / ISIN: AEA007301012) confirms shareholder approval of all agenda items at its Annual General Assembly Meeting, including distribution of its highly attractive final cash dividend for the year ending December 31, 2023.

 

Commenting on the announcement, Abdulrahman Abdulla Al Seiari, Chief Executive Officer of ADNOC Drilling, said: “In 2023 we made excellent progress towards our strategic priorities, while supporting our customers to achieve theirs. Our industry leading HSE performance supported the delivery of record results in 2023. The company’s performance is testament to the hard work and dedication of our diverse and highly skilled people, and I thank them for their continued committment.

 

“2024 will be a landmark year for ADNOC Drilling. Our core integrated drilling services business is complemented by the establishment of Enersol, our strategic partnership with Alpha Dhabi, that will support the adoption of AI, digitization and advanced technology solutions to drive growth, value and efficiency. The year will also see us extend our presence further into the region, building on our entry to the Jordan market last year. We have always been ambitious at ADNOC Drilling and 2024 will be the year when we will realise those ambitions.”

 

Final Dividend 2023

 

The final shareholder-approved dividend for 2023 amounts to $358 million (8.22 fils per share). This brings total dividend for the year to $717 million (16.45 fils per share), representing a 5% year-on-year increase versus 2022. The dividend will be paid on or around April 3, 2024 to all shareholders of record as at March 21, 2024.

 

ADNOC Drilling reiterates its commitment to a dividend policy that is progressive, reflecting robust underlying cash flow, with an annual distribution that is expected to grow by at least 5% per annum on a dividend per share basis over the next three years (2024-2026).

 

Enersol Driving AI and Advanced-Technology Solutions

 

During 2023, the Company established an innovative strategic partnership with Alpha Dhabi Holding PJSC (Alpha Dhabi). The joint venture (JV), which is known as Enersol, is targeting value-accretive, technology-enabled oilfield and energy service businesses globally that will drive future growth through the adoption of artificial intelligence (AI) and digitization across the OFS and energy value chain. The JV, of which the Company owns 51%, underpins ADNOC Drilling’s investment and expansion strategy by co-investing up to $1.5 billion.

 

Enersol is empowered to invest in, multiple businesses and foster a scalable ecosystem that will enhance market value and optimize operational efficiencies.  A major driver of individual investment decisions will be ability to support wider energy transition ambitions, the UAE’s net zero agenda and economic diversification.

 

Ongoing Fleet Expansion

 

In 2024 the Company will grow its integrated drilling fleet even further, with total rig count expected to reach 142. Each new advanced specification rig joining the fleet will use leading AI technologies to improve operational efficiency and boost revenues. The oilfield services (‘’OFS’’) segment is expected to experience continued, significant growth as the Company brings operational efficiency, through the deployment of advanced technologies, to its customers and extracts more value from every well delivered.

 

Growth Beyond the Borders

 

In 2023, ADNOC Drilling advanced its international growth strategy by mobilizing its first ever rig outside of the UAE. The Company signed its first international contract to deliver an integrated drilling services campaign for the Kingdom of Jordan’s Ministry of Energy and Mineral Resources. The company will be tendering for further contracts in Jordan.

 

Along with its activities in Jordan, ADNOC Drilling is now targetting other opportunities in the GCC region.

 

Unconventional Resources Opportunity

 

Abu Dhabi holds an estimated 22 billion barrels of recoverable unconventional oil resources, along with 160 trillion standard cubic feet of recoverable unconventional gas resources. This opportunity presents an outstanding transformational opportunity for ADNOC Drilling and the Company will be targeting this sector as a key segment for future growth.

 

Full Year 2024 and Medium-Term Guidance

 

On the back of strong 2023 results, ADNOC Drilling announced full year 2024 and medium-term guidance, reaffirming growth. The Company continues to expect its owned rig count to total 142, including the four new lease-to-own land rigs, by the end of 2024.

 

The Company expects total revenue between $3.60 to $3.80 billion, EBITDA of $1.70 – $1.90 billion, with a margin range of 48% – 50% and Net Profit of $1.05 – $1.25 billion, with a margin range of 30% – 33%. Moreover, ADNOC Drilling expects CapEx to be between $0.75 – $0.95 billion, while maintaining a leverage ratio “Net debt/EBITDA” below 2x in 2024, excluding material M&A.

 

ADNOC Drilling’s medium-term guidance is as follows:

 

  • Revenue CAGR in the 12% – 16% range from 2023 base.
  • EBITDA Margins around 50% with drilling margins exceeding 50% and OFS Margin in a range of 22% – 26% medium term.
  • Conservative long-term leverage target of up to 2.0x net debt / EBITDA, excluding material M&A.
  • Net working capital as percentage of revenue target of around 12%.
  • Maintenance CapEx post-2024 of $200 – $250 million per annum.

 

ENDS

 

About ADNOC Drilling 

ADNOC Drilling, listed on the Abu Dhabi Securities Exchange (ADX symbol “ADNOCDRILL”; ISIN AEA007301012), is the largest drilling and integrated drilling services (IDS) company in the Middle East by fleet size, owning and operating one of the largest multi-discipline drilling fleets in the world. The Company is a critical link in ADNOC’s upstream business, as ADNOC responsibly accelerates its production capacity targets in light of globally increasing demand for energy and enables gas self-sufficiency for the UAE. ADNOC Drilling incorporated IDS into its portfolio in 2018 and now offers a total solution of start-to-finish wells and associated services that encompass the entire drilling value chain. To find out more, visit: www.adnocdrilling.ae

For media inquiries please contact: 

Iain Cracknell

Vice President, Corporate Communications

+971 2 698 3614

 

For investor inquiries please contact:

Massimiliano Cominelli

Vice President, Investor Relations

+971 2 698 3383

 

 

 

 

European Bank Launches Plan to Transform 6th of October City to Green City

By
Sahfy Sahfy
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Within the framework of implementing the Green Cities program in Egypt
Within the framework of implementing the Green Cities program in Egypt

March 12 2024

Within the framework of implementing the Green Cities program in Egypt

The European Bank for Reconstruction and Development launches a plan to transform “6th of October City” into a green city

– Dr. Rania Al-Mashat, Minister of International Cooperation: The Green Cities Program is consistent with the national strategy for climate change and the state’s efforts to transform into a comprehensive and sustainable economy.

– Dr. Heike Harmgart, EBRD’s Managing Director for the Southern and Eastern Mediterranean (SEMED) region: The Green Cities Program in Egypt is the result of close cooperation with the Ministry of International Cooperation and development partners in Egypt.

In order to enhance efforts to transition to a green and sustainable economy in Egypt and implement the Green Cities Programme, which comes within the framework of cooperation between the government and the European Bank for Reconstruction and Development (EBRD), the bank, in cooperation with the government, launched the plan to transform 6th of October City into a green city. The plan is scheduled to be implemented by the relevant government agencies and the 6th of October City Authority in cooperation with the EBRD.

This comes within the framework of the close relations between the Arab Republic of Egypt and the EBRD, one of the largest European multilateral development banks, and in implementation of the joint strategy with the Bank for the period 2022-2026, which is based on three main pillars, including accelerating the pace of green transformation in Egypt, as well as the national priorities for the transition to green, comprehensive and sustainable growth, and the country’s keenness to implement the green and sustainable cities program implemented by the EBRD.

In her comment, Dr. Rania Al-Mashat, Minister of International Cooperation and Governor of Egypt at the EBRD, said that cooperation with the Bank in implementing the Green Cities Program reflects the close cooperation between the two sides, and also strengthens the international partnerships of the Arab Republic of Egypt in the field of transition to a green economy and implementation of the National Climate Change Strategy 2050 and Nationally Determined Contributions (NDCs), as well as the implementation of sustainable development goals, pointing out that the plan includes many pioneering projects in many areas that will be worked on by mobilizing investments and funds regarding their implementation.

The Minister pointed to the approach taken by Egypt to transform into sustainable and green cities, and her readiness to host Egypt for the World Urban Forum in its session next November 12, which is the second largest international conference after the COP27, to enhance the global and local trend towards green transformation and enhance urban development efforts. H.E. explained that through international partnerships, the first dry port project in Egypt in 6th of October City was financed, with funding from the EBRD and in partnership between the government and private sectors, and it is considered one of the green projects in the city.

For her part, Dr. Heike Harmgart, EBRD’s Managing Director for the Southern and Eastern Mediterranean (SEMED) region said, “We are proud that 6th of October City as it is the first in Egypt to launch, complete and adopt the Green Cities Action Plan; we look forward to Alexandria and Cairo working to take the same steps.” The achievement is the result of great cooperation with the Ministry of International Cooperation, which provides full support for the Green Cities Program implemented by the European Bank, as well as the Ministry of Housing, Utilities and Urban Communities through its strategic contributions, and the Urban Communities Authority for their supervision and guidance. I also thank the 6th of October City Authority for their efforts to reach a plan.

Through the action plan, 6th of October City works to address environmental issues and challenges related to infrastructure and support the transition to a green, low-carbon future, capable of resilience and response to crises. It serves as a strategic roadmap designed to achieve the city’s vision through the implementation of “core pivotal projects.”

The Green City Action Plan (GCAP) identifies 14 key projects across key sectors; supported by 17 long-term initiatives, with the aim of transforming 6th of October City into a leading Egyptian city that supports sustainability, green investment, digital transformation, and inclusive growth.

The program provides a strong platform for international financial institutions to support sustainable projects. A prominent example of this is the financing available from the EBRD worth €25 million to establish Egypt’s first dry port in the city, which represents one of the important milestones for the city in this framework of the Green Cities Programme, and serves as a catalytic project for the Green City Action Plan.

It is worth noting that the agreement for 6th of October City to join the Green Cities initiative was signed during the visit of the Bank’s President, Ms. Odile Renaud Basso, to Egypt in 2021, and was witnessed by Dr. Rania Al-Mashat, Minister of International Cooperation.

The Minister participated in a discussion session within the EBRD annual meetings, which was held in the city of Samarkand, Uzbekistan, last year, on the “Green Cities Initiative: Resilient Solutions for Future Cities.” In her intervention, she highlighted cooperation with the Bank in implementing the program. The session also witnessed the presentation of a promotional video produced by the EBRD on the implementation of the Green Cities Program in Egypt.

The EBRD launched the Green Cities Program in late 2016, to support cities to transition to a green, low-carbon and more resilient future. It achieves this by helping cities identify their most urgent environmental priorities, and addressing them through targeted investments, procedures, and public policies. So far, the program includes 50 cities worldwide, including three cities in Egypt: Cairo, Alexandria, and 6th of October.

80 projects are being implemented within the program around the world, saving 4.57 million tons of carbon dioxide emissions, and about €5 billion have been mobilized from bilateral and multilateral development partners for the project, including the Green Climate Fund, the European Union, the European Bank Technical Support Fund, and South Korea and Japan.

Boston Consulting Group (BCG) Celebrates Successful Partnership at the Quantum Innovation Summit 2024

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Sahfy Sahfy
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Boston Consulting Group (BCG) Celebrates Successful Partnership at the Quantum Innovation Summit 2024
Boston Consulting Group (BCG) Celebrates Successful Partnership at the Quantum Innovation Summit 2024

The Quantum Innovation Summit 2024 recently concluded, and it proudly recognized the Boston Consulting Group (BCG) as its knowledge partner. As a strategic consulting leader, BCG shared invaluable insights into the quantum technology sector and investment trends and highlighted the Gulf Cooperation Council (GCC)’s initiatives in advancing this groundbreaking technology. BCG’s participation underscored its dedication to fostering innovation, collaboration, and diversity within the global quantum technology community.

Anticipating the Quantum Leap

Despite experiencing a 50% decrease in global venture capital funding from roughly $2 billion in 2022 to about $1 billion in 2023, the quantum technology sector remains cautiously optimistic. This is due to a projected increase in governmental investments, with over 20 governments worldwide having developed formal policies to advance quantum technology, committing over $40 billion for the upcoming decade. Notably, the UAE and KSA have emerged with promising initiatives in the quantum market, indicating strong progress in the field. The region is trying to establish a quantum-ready infrastructure, demonstrating its commitment to adopting quantum technology and a significant presence in this advancing field.

Quantum Innovation Meets Economic Evolution: Panel Discussion Highlight

The summit at The H Hotel – Al Massa Ballroom in Dubai featured insightful discussions, including a standout panel on “Quantum Innovation Meets Economic Evolution.” This discussion explored the transformative potential of quantum technologies on economic frameworks, deep tech ecosystems, and business models. Panellists deliberated on strategies for fostering innovation, sustainable growth, and policy formulation in a quantum-enhanced future.

“The rapid advancement of quantum computing on a global scale is set to revolutionize the traditional approaches to scientific and industrial development.” Faisal Hamady, Managing Director and Partner at Boston Consulting Group said, “This evolution promises a fundamentally different digital transformation across societies, organizations, and financial markets. Our goal is to delve deeper into the impact of quantum technology and identify the sectors that are ready for change. We emphasize the importance of collaborative efforts between research, industry, and policy to drive quantum innovation forward. The Quantum Innovation Summit 2024 is a crucial forum for discussing how to implement these technologies for global progress effectively. This interest extends beyond commercial research and development and includes universities, scientific communities, research labs, and notably, nation-states, all keenly focused on the practical applications of quantum technologies.”

Celebrating an Unprecedented Gathering

The Quantum Innovation Summit 2024, spurred by BCG’s strategic vision, brought together industry leaders, academics, and technology enthusiasts. This congregation aimed to drive conversations on quantum innovation’s future, contributing to industry and societal progress.

As the event wrapped up, participants reflected on the rich discussions and insights shared. BCG’s role as the Knowledge Partner provided a solid foundation for exploring the vast potential of quantum technology. The summit’s success paves the way for ongoing dialogue and cooperation in quantum innovations’ role for global advancement.

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