Latest news with #Dh27
Khaleej Times
20-05-2025
- Business
- Khaleej Times
UAE's domestic debt market issuance to hit Dh66.1b in 2025
The UAE is accelerating efforts to deepen its domestic debt capital market, with Abu Dhabi and the federal government set to issue over Dh29.4 billion ($8 billion) in local currency debt in 2025, according to S&P Global Ratings. This strategic push aims to build a robust domestic yield curve, reduce reliance on volatile international markets, and foster financial resilience across the emirates. S&P Global Ratings projects that the UAE federal government and individual emirates will collectively issue approximately Dh66.1 billion ($18 billion) in local currency debt this year, a slight dip from Dh69.7 billion ($19 billion) in 2024. 'About 55 per cent of this will refinance or roll over maturing debt,' said S&P analyst Zahabia Gupta. Among the rated emirates — Abu Dhabi, Ras Al Khaimah, and Sharjah — only Sharjah is expected to issue debt to address a fiscal deficit, projected at 6.3 per cent of GDP in 2025. Abu Dhabi and Ras Al Khaimah, bolstered by fiscal surpluses, will focus on issuances based on opportunities. The UAE's domestic debt market, though still nascent, is gaining traction. Since 2021, the federal government has issued Dh27 billion ($7.3 billion) in treasury bonds and sukuk in local currency, accounting for 42 per cent of total issuances. Sharjah has also been active, issuing Dh1 billion in long-term sukuk in July 2024 and reissuing Dh7 billion in short-term sukuk in May 2024. However, most emirate and federal debt remains U.S. dollar-denominated and held externally, exposing issuers to global market volatility. Sharjah's net government debt stood at 50 per cent of GDP and an interest burden consuming 30 per cent of revenues — one of the highest among S&P-rated sovereigns. Despite this, its recent sukuk issuances were well-received, signalling market confidence. The UAE's well-capitalised banking sector, with rising deposits and healthy loan-to-deposit ratios, provides a safety net. A 2025 report from Moody's Analytics notes that UAE banks' liquidity ratios improved by eight per cent in 2024, positioning them to support lending growth. In extreme scenarios, S&P expects Abu Dhabi-backed federal support for struggling emirates. Lower oil prices have not deterred fiscal prudence. Abu Dhabi may repay part of its Dh22 billion ($6 billion) debt maturing in 2025, while Dubai continues deleveraging, repaying Dh4.4 billion ($1.2 billion) in Q1 2025. However, Dubai could ramp up borrowing from 2026 to fund major projects like the Al Maktoum International Airport expansion and rainwater drainage upgrades, according to a Bloomberg report. Ras Al Khaimah, meanwhile, issued a Dh3.7 billion ($1 billion) 10-year sukuk in March 2025 to refinance maturing debt, with tourism projects largely funded by government-related entities to limit fiscal strain. Regular local currency issuances by Abu Dhabi and the federal government are pivotal for establishing a domestic yield curve, which could streamline pricing for bank and corporate issuances and enable smaller issuers to tap capital markets. A 2025 Fitch Ratings report highlights that domestic bond issuances could reduce borrowing costs for UAE corporates by 10–15 per cent over the next five years. However, S&P anticipates that international markets and bank funding will remain dominant for corporates in the near term. The UAE's push to develop its domestic debt market reflects a broader vision of economic diversification and financial stability. By fostering local currency issuances, the emirates are not only shielding themselves from global market volatility but also paving the way for a more inclusive and dynamic capital market ecosystem.
Al Etihad
17-05-2025
- Business
- Al Etihad
UAE to raise over $8 billion in local debt market in 2025 to build yield curve: S&P
17 May 2025 12:31 REDDY (ABU DHABI) The UAE government, including the emirate of Abu Dhabi, is expected to issue more than $8 billion in local currency debt this year as part of a strategic push to develop a domestic yield curve, S&P Global Ratings said in its latest initiative reflects an effort to deepen the UAE's local debt capital markets and reduce reliance on external financing.'Overall, we expect individual emirates and the UAE federal government to issue about $18 billion of total debt in 2025, slightly down from $19 billion in 2024,' the report said, noting that around 55% of the new borrowing will go towards refinancing or rolling over maturing the three emirates rated by S&P — Abu Dhabi, Ras Al Khaimah, and Sharjah — only Sharjah is expected to raise debt to cover a fiscal deficit, estimated at 6.3% of GDP in 2025. Abu Dhabi and Ras Al Khaimah are forecast to maintain fiscal Dhabi's move to issue more local currency bonds builds on the federal government's efforts, which began in 2021 with the launch of dirham-denominated treasury bonds and sukuk totalling Dh27 billion ($7.3 billion). Sharjah followed in 2024 with both long- and short-term sukuk in local currency. Nevertheless, most UAE sovereign debt remains denominated in US dollars and held a domestic yield curve — a representation of borrowing costs across different maturities — is key to fostering a vibrant local debt market. It serves as a pricing benchmark for banks and corporates, enables more efficient capital allocation, and improves funding access for smaller issuers. As Abu Dhabi and the federal government increase dirham-denominated issuances, these instruments can help anchor market-wide to S&P Global Ratings, Abu Dhabi recorded the highest gross borrowing among UAE emirates in 2024 at $12.4 billion, or 4.1% of GDP. This is expected to fall to $8.2 billion in 2025, or 2.7% of GDP. Sharjah's projected borrowing for 2025 stands at $6 billion, representing 13.9% of GDP — the highest relative debt burden among rated emirates. Ras Al Khaimah is expected to raise $1 billion this year, after no issuance in 2024, equating to 7.5% of GDP. The UAE federal government is forecast to issue $2.7 billion in 2025, or 0.5% of GDP, while Dubai is not expected to raise any debt this data point to a pattern: individual emirates — particularly Abu Dhabi, Sharjah, and Ras Al Khaimah — are considerably more active in the debt markets than the federal government. This trend reflects the UAE's decentralised fiscal architecture, with most capital market activity occurring at the emirate capital market conditions become less favourable, the UAE's well-capitalised and liquid banking sector could provide alternative funding. 'Banks have notably increased deposits over the past three years and continue to display comfortable loan-to-deposit ratios that should support strong lending growth in 2025,' the report lower oil prices, most emirates are expected to maintain prudent fiscal management and robust balance sheets. 'Much of the debt issuance is therefore likely to be opportunistic and market dependent,' S&P said. The report cites several examples. Abu Dhabi may choose to repay part of the approximately $6 billion in debt maturing this year. Dubai continues its deleveraging path, having repaid $1.2 billion in the first quarter of the year. 'Dubai could, however, issue more debt from 2026 to fund the expansion of the Al Maktoum International Airport and the renovation of the rainwater drainage network,' the report said. Ras Al Khaimah issued a $1 billion 10-year sukuk in March to refinance maturing obligations. 'There are large upcoming tourism-related projects in the emirate, but we anticipate that these will be mostly funded by government-related entities (GREs), with contingent liabilities of the government remaining manageable,' the S&P report concluded.
Gulf News
24-04-2025
- Entertainment
- Gulf News
Alappuzha Gymkhana: 2025 Malayalam sleeper hit made on just Dh5.28 million that became a blockbuster
Dubai: In a year dominated by star-driven blockbusters and high-concept thrillers, Alappuzha Gymkhana emerged as an unexpected success story from the Malayalam film industry. Directed by Khalid Rahman and starring Naslen in the lead role, the film quietly punched above its weight—both critically and commercially—and became one of the most talked-about Malayalam releases of 2025. So, why did Alappuzha Gymkhana work? At its core, the film offered a grounded and refreshingly relatable take on the sports genre. Instead of focusing on a rags-to-riches journey or a climactic championship, it followed Jojo Johnson (played with effortless charm by Naslen), a college student who, along with his friends, joins a boxing club not out of passion but in pursuit of grace marks. What starts off as a comical ploy soon transforms into a deeper, more sincere exploration of purpose, friendship, and self-worth. This underdog sports story worked precisely because it wasn't trying to be inspirational in the conventional sense. There were no grand speeches or dramatic training montages. Instead, Alappuzha Gymkhana leaned into small, human moments—awkward silences, spontaneous jokes, and the quiet satisfaction of emotional growth. The film didn't glorify the sport of boxing, but used it as a backdrop to explore themes of identity and connection. The cast played a huge role in bringing this emotional honesty to life. Naslen's portrayal of Jojo was warm, funny, and understated, while supporting actors like Lukman Avaran, Ganapathi S. Poduval, and Anagha Ravi added genuine depth to their characters. Together, they created a world that felt lived-in and emotionally resonant. Critics praised the performances for their authenticity, with many noting how the ensemble elevated what could have been a light-hearted comedy into something with surprising emotional heft. Then there's the film's box office story. Made on a modest budget of Dh5.3 million, Alappuzha Gymkhana defied expectations by grossing over Dh27 million worldwide within just two weeks of release. It quickly surpassed Rekhachithram to become the second highest-grossing Malayalam film of the year, just behind L2: Empuraan. That kind of performance isn't just impressive—it's a testament to how deeply the film resonated with viewers, especially younger audiences who saw themselves in Jojo's uncertain, aimless beginnings. Technically, too, the film stood out. Jimshi Khalid's cinematography beautifully captured the sun-drenched charm of Alappuzha, lending a relaxed, observational tone to the storytelling. The music was subtle and emotional without being manipulative, and the editing kept the narrative tight, flowing smoothly between moments of humour and introspection. Khalid Rahman's direction deserves special mention. He resisted the temptation to dramatise or sentimentalise, choosing instead to tell the story with a light, human touch. There's humour, yes—but it's organic, never forced. There's emotion, but it's never melodramatic. That balance gave Alappuzha Gymkhana its unique flavour: a film that felt like a slice of life, even within a stylised sports setting. Ultimately, Alappuzha Gymkhana succeeded because it was honest. It didn't try to be larger-than-life—it focused on being true to life. It gave audiences characters they could root for not because they were extraordinary, but because they were entirely ordinary, trying to figure things out one awkward step at a time.
Khaleej Times
22-04-2025
- Business
- Khaleej Times
Emirates NBD's profit before tax surges 56% surge to Dh7.8b
Emirates NBD, a leading banking group in the UAE, announced a remarkable 56 per cent increase in profit before tax, reaching Dh7.8 billion for the first quarter of 2025. The bank's performance was driven by strong loan growth, an enhanced deposit mix, and innovative product offerings, propelling total income up by 11 per cent year-on-year to Dh11.9 billion. The bank's balance sheet crossed a historic milestone, with assets surpassing Dh1 trillion, fuelled by a buoyant regional economy, Dubai's largest lender said in a statement. Loan growth was a key driver, with lending increasing by Dh18 billion in Q1 2025, over half of which came from the bank's expanding international network. Deposits rose by Dh31 billion, including a record Dh27 billion surge in low-cost current and savings accounts, reinforcing the bank's strong funding base. The impaired loan ratio improved to 3.1 per cent, supported by an impairment credit of Dh0.5 billion, reflecting robust client recoveries amid favorable economic conditions. Hesham Abdulla Al Qassim, vice chairman and managing director of Emirates NBD, said: the profit growth was driven by strong regional expansion, increased digital adoption, an outperforming funding base and sustained loan recoveries. 'The balance sheet surpassed the Dh1 trillion milestone boosted by impressive loan and deposit growth from a buoyant regional economy.' Shayne Nelson, group chief executive officer, said the 11 per cent year-on-year increase in income was propelled by excellent loan growth and the bank's ability to attract and retain low-cost deposits. 'The group's ability to substantially grow income is a direct benefit of the strategic investment in our regional footprint, Digital and GenAI, helping to offset the impact of lower interest rates. Innovative products have successfully harnessed key growth areas.' Patrick Sullivan, group chief financial officer, said the group's low-cost current and savings account deposit base grew by a record Dh27 billion in the first quarter, helping absorb the impact of lower interest rates. 'The credit environment remains healthy, and clients continue to benefit from a buoyant economy, leading to a net impairment credit of Dh0.5 billion. Retained earnings helped support strong loan growth and the rock-solid balance sheet makes Emirates NBD a regional powerhouse, providing the platform for future growth.' Emirates Islamic Emirates Islamic, a subsidiary, achieved a milestone of its own, posting quarterly profits exceeding Dh1 billion for the first time, cementing its position as a top Islamic bank in the UAE. The bank's wealth management strategy also bore fruit, with assets under management reaching $50 billion, driven by the region's growing affluent population. Emirates NBD commands a 35 per cent market share of UAE credit card spending, with over Dh50 billion in credit and debit card transactions in Q1 2025. New offerings, such as the Abu Dhabi-focused 'Darna' co-branded credit card with Aldar and free local equity trading on the ENBD X and EI+ apps, have bolstered its retail and investment appeal, the bank statement said. The bank's net promoter score of 48 underscores its leadership in customer experience. Regionally, Emirates NBD's Saudi Arabia operations saw a 15 per cent loan growth, while new lending of Dh46 billion drove 7.0 per cent retail and 6.0 per cent corporate loan growth. The bank introduced structured credit, commodity, and investment products, boosting income from both local and international clients. Emirates NBD Capital retained its top spot for UAE IPOs and MENA loans, while ranking among the top three for international sukuk.
Al Etihad
22-04-2025
- Business
- Al Etihad
Emirates NBD Group and Emirates Islamic announce robust first quarter 2025 results
22 Apr 2025 11:45 A. SREENIVASA REDDY (ABU DHABI)Emirates NBD and its subsidiary, Emirates Islamic, have both released their financial results for the first quarter of 2025, showcasing strong growth and profitability amidst a buoyant regional economy. Emirates NBD Group announced a substantial 56% increase in profit before tax, reaching Dh7.8 billion. This impressive growth was underpinned by strong lending momentum, an improved deposit mix, and the successful introduction of new products, which collectively drove an 11% year-on-year rise in income to Dh11.9 billion. Its net profit stood at Dh6.2 billion. The bank's balance sheet also achieved a significant milestone, surpassing Dh1 trillion, fuelled by robust loan and deposit of Emirates NBD opened half a percentage point higher on the Dubai Financial Market (DFM) following buoyant results. Deposits at Emirates NBD saw a 5% increase, bolstered by a record Dh27 billion surge in low-cost Current and Savings Account balances. Loans grew by Dh18 billion during the quarter, with more than half of this expansion originating from the Group's growing international network. Meanwhile, Emirates Islamic reported a record-breaking quarterly net profit of Dh1 billion, marking a 24% increase compared to the same period last year. Total income peaked by 8% year-on-year to reach Dh1.45 billion, driven by higher funded and non-funded income. Total assets increased by 11% to Dh123 billion during the first quarter of 2025. Customer deposits increased by 8% to Dh83 billion in Q1 2025 with Current Account and Savings Account balances at a very healthy 71% of total Abdulla Al Qassim, Vice Chairman and Managing Director of Emirates NBD Group, expressed his satisfaction with the results, stating, "Emirates NBD's Profit before tax grew substantially, driven by strong regional expansion, increased digital adoption, an outperforming funding base and sustained loan recoveries. All business units achieved an outstanding performance as they delivered higher YoY income. The bank commands a 35% market share of UAE Credit card spend, and we processed more than Dh50 billion Credit and Debit card spend in the first quarter of 2025.' Shayne Nelson, Group Chief Executive Officer of Emirates NBD, said, 'Emirates NBD delivered an 11% year-on-year increase in income, propelled by excellent loan growth and our ability to attract and retain low-cost deposits. The Group's ability to substantially grow income is a direct benefit of the strategic investment in our regional footprint, Digital and GenAI, helping to offset the impact of lower interest rates. Innovative products have successfully harnessed key growth areas, including Private Banking, Wealth Management, Escrow, regional Corporate growth and Investment Banking.' Commenting on the results, Farid AlMulla, Chief Executive Officer, Emirates Islamic, said: 'Emirates Islamic continues to be at the forefront of driving digital banking innovation in the Islamic financial services sector, providing our customers with best-in-class solutions through our digital banking channels. We continue to add innovative services to our digital banking platforms, giving our retail and business customers the convenience of banking anytime, from anywhere.' Emirates NBD and Emirates Islamic are both listed on the Dubai Financial Market (DFM). However, Emirates Islamic's shares are not currently being traded, as its parent company, Emirates NBD, is in the process of acquiring 100% ownership of the bank and delisting it from the DFM. Despite the planned delisting, Emirates Islamic is expected to retain its separate corporate identity. The parent company of the Emirates NBD Group is Investment Corporation of Dubai, a company in which the Government of Dubai is the majority shareholder, according to the information available on the DFM website.
