Morning Report 07 June 2021

Market Stats UAE Trading Summary 1M 3M 1Y Indices Close Change Change Change Change AEDm Buy Sell Net ADX 6,623 0.3% 7.7% 16.3% 53.9% ADX 1,256 1,256 - DFM 2,821 -0.1% 5.9% 9.8% 38.3% Local 85% 85% 0% TASI 10,685 -0.1% 4.5% 15.6% 48.2% Foreign 15% 15% 0% BHSEASI 1,542 0.2% 1.3% 4.7% 21.1% Institutional 85% 89% -4% EGX 10,122 0.7% -4.4% -10.7% -4.7% Retail 15% 11% 4% Dow Jones 34,756 0.5% 1.8% 12.4% 32.2% DFM 157 157 - S&P 500 4,230 0.9% 1.6% 12.2% 35.9% Local 39% 56% -17% Nasdaq 13,814 1.5% 1.3% 8.6% 43.7% Foreign 61% 44% 17% FTSE 100 7,069 -0.6% 1.4% 5.8% 10.7% Institutional 39% 40% -1% DAX 15,693 0.4% 5.6% 11.6% 26.2% Retail 61% 60% 1% CAC40 6,516 0.1% 4.2% 11.7% 30.0% Total 1,413 1,413 - Nikkei225 28,942 -0.4% 0.4% 0.0% 27.5% Local 80% 82% -2% HIS 28,918 -0.2% 1.3% -1.1% 18.7% Foreign 20% 18% 2% MSCI EM 1,382 -0.1% 3.5% 2.6% 39.7% MSCI Asia 210 0.1% 2.4% 1.4% 33.2% US Future 4,223 -0.1% -0.1% 10.6% 32.5% EUR Future 4,087 -0.1% 2.0% 8.6% 21.0%

# Last Trading Day's Top Short Sell Positions Short Volume Short Volume Volume Turnover Company (shrs.) (%) (m) (AEDm) RAK Properties (617,216) 75.5% 0.8 0.5 RAK Cement (200,000) 2.6% 7.7 8.1 Adnoc (164,087) 1.3% 12.4 54.0

Upcoming Corporates Actions & Events Date Company Event 7-Jun Salam Bank BOD Meeting 9-Jun NIND Ex-Dividend Date 17-Jun ALSALAMKW AGM 20-Jun ALMADINA AGM 21-Jun AMAN AGM 21-Jun FTSE Index 2Q21 Index Effective Date 21-Jun Ooredoo Date of interest payment to bondholders

# KEY STORIES

Emaar records property sales of AED 10.5bln in first five months of 2021 Dubai Property Fund Rescinds Debt Offer After Bondholders Revolt Deyaar board approves AED 500mln settlement offer from Limitless. The proposal, which follows a 2019 court ruling, includes both cash and land Abu Dhabi Ports opens Fujairah Terminals after AED 1bln expansion. The expansion will increase the general cargo handling capacity at the port to 1.3mln tonnes ENBD REIT net rental income up 8% YoY, board proposed a final dividend of USD 0.0176/share for 6 month period ending 31st March 2021 SHUAA and funds sell all their Khaleeji Commercial Bank stake Air Arabia to start flights to Sarajevo; resume service to Vienna. Sarajevo service to be operated from Abu Dhabi; Vienna flights will be from Sharjah Etihad Airways announces new summer routes to Mykonos, Santorini And Malaga Bank of Sharjah shareholders approve transfer of AED 100mln from general reserve to paid up capital

Amazon enters UAE car rental market; rates start from USD 12 per day UAE on Jun 06 announced 1,874 new Covid-19 cases and 1,842 recoveries. The tally takes total cases in UAE to 583,071 with 562,576 recoveries and 1,699 deaths Hires Banks for Debut Dollar Islamic Bond Sale Saudi non-oil private sector expansion quickens as recovery deepens – PMI Saudi Arabia raises July crude oil official selling prices for Asia Saudi Chemical signs collaboration agreement with Glaxosmithkline Consumer Healthcare Saudi Ltd Kuwait’s Jazeera Airways board approves sale, leaseback deal relating to CFM LEAP-1A 26 engine Egypt's Talaat Moustafa Group, NUCA partner for Noor City project, a USD 32bln development slated to be Egypt’s first green smart city

# Key Global Trends/ Market Clues

Asian shares firmed on Monday while the dollar wavered after the anxiously awaited May U.S. payrolls report showed the recovery on track but not so hot that it might bring forward a policy tapering from the Federal Reserve. Investors were curious to see how shares of major tech firms would react to the G7's agreement on a minimum global corporate tax rate of at least 15%, though getting the approval of the whole G20 could be a tall order. So far, the reaction was muted with both Nasdaq and S&P 500 futures little changed. Also of interest will be the tussle over U.S. President Joe Biden's proposed USD 1.7trn infrastructure plan with the White House rejecting the latest Republican offer. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.3% and looked to break three sessions of losses. Japan's Nikkei rose 1.0% to touch its highest in almost a month, and South Korea gained 0.7%. Oil extended gains to hit fresh multi-year highs on Monday, underpinned by a brighter economic and fuel-demand outlook, while investors eyed the outcome of talks between Iran and world powers over a nuclear deal that is set to boost crude supplies. futures for August rose 0.4%, to USD 72.17 a barrel by 0107 GMT, their highest since May 2019. WTI for July touched USD 70 for the first time since October 2018 and was at USD 69.91 a barrel, up 0.4%. Both contracts have risen for the past two weeks as fuel demand is rebounding in the United States and Europe after governments loosened COVID-19 restrictions ahead of summer travel. Global oil demand is expected to exceed supplies in the second half despite a gradual easing of supply cuts by OPEC+ producers, analysts say. A slowdown in talks between Iran and global powers in reviving a 2015 nuclear deal and a drop in U.S. rig count also supported oil prices.

# UAE Stories

Dubai’s biggest listed property developer Emaar Properties recorded a 250% jump in property sales in the first five months of 2021 as the economy recovers from the pandemic-driven slowdown. The company’s total property sales during the period rose to AED 10.5bln, compared to AED 3bln in the same period last year. The UAE's property market, which softened in the wake of a three-year oil price slump that began in 2014 and subsequent oversupply concerns, is showing signs of a revival as end- users look to upgrade to larger spaces amid a rise in remote working and learning due to the pandemic. Dubai Property Fund Rescinds Debt Offer After Bondholders Revolt. Dubai-based Emirates REIT on Monday withdrew the restructuring proposal for its $400 million Islamic bond after a group of investors successfully opposed the deal. Emirates REIT said 57% of voting sukuk-holders were in favor of its exchange offer, falling short of the 75% it required to push through the proposal. As a result, it rescinded the plan but vowed to continue exploring options to improve the REIT’S sukuk and equity trading. The company also said that “there has been no event of default or any dissolution event” with its debt and that it will pay its upcoming sukuk profit distribution in June as scheduled. The board of Dubai developer Deyaar approved a AED 500mln settlement offer from Limitless related to a dispute over the purchase of land. The settlement offer includes both cash and land, Deyaar said. Deyaar’s board “agreed on the settlement, taking into account that any proposed land [has] the necessary infrastructure and master plan approvals from the relevant authorities and that such land [is] to be valued by independent external valuers appointed jointly by the two parties,” the company said. In 2019, a UAE court ordered Limitless, a Dubai-based developer, to pay AED 411.9mln to Deyaar in a dispute related to the purchase of land. The court also ordered Limitless to pay fees as well as compensation of AED 61.1mln to Deyaar. An expanded container terminal at Fujairah Port was inaugurated on Sunday after an investment of AED 1bln. A number of new structures have been added at the terminal operated by Abu Dhabi Ports to boost its cargo-handling capacity and accommodate larger vessels, according to officials. The completion of the expansion works, which began three years ago, will increase the terminal’s general cargo throughput to 1.3mln tonnes and container capacity to 720,000 twenty-foot equivalent units. The size of the container terminal has been expanded to 110,000 square metres, with a further 25,000-square-metre multipurpose area also added to handle general cargo and roll-on, roll-off, or Ro-Ro, items The work also involved extending the quay wall from 760 metres to 1,000 metres while the approach was deepened from 12 metres to 15 metres to allow the port to handle larger vessels. ENBD REIT Plc net asset value as of 31st March is USD 180mln or USD 0.72 per share. The board proposed a final dividend of USD 0.0176 per share for 6 month period ending 31st March 2021. The net rental income was up 8% YoY and total property portfolio value stands at USD 360mln. SHUAA Capital has sold its 3.8% stake in Khaleeji Commercial Bank 34.6m shares, to GFH Financial Group. The sale is expected to contribute positively to SHUAA’s Q2 financials. At least two new low-cost flights from the UAE were introduced on Sunday, as the air travel industry looks to win back more passengers after over a year of the coronavirus pandemic. Sharjah-based carrier Air Arabia announced that it is further expanding its network with the resumption of flights to Vienna, Austria later this year. On the same day, the airline’s joint venture with Etihad Airways, Air Arabia Abu Dhabi, unveiled its new passenger service to Sarajevo. The direct flights between Sharjah and the European city will start from October 15, 2021. Etihad Airways announces new summer routes to Mykonos, Santorini And Malaga. Mykonos will operate between 8 July and 11 September 2021 and Santorini between 9 July and 12 September 2021. Will launch new flights to Malaga twice a week between 9 July and 15 September 2021. Bank of Sharjah shareholders approve transfer of AED 100mln from general reserve to paid up capital US tech giant Amazon is cashing in on the vehicle leasing market in the UAE with the launch of its online car rental services on Sunday. Through its home services unit, Amazon is offering customers across the country with options to rent out SUVs, hatchbacks and sedans for one day to one month. The services can be booked online through the Amazon Home Services page and are available to customers in Dubai, Abu Dhabi, Sharjah, Ajman and Ras Al Khaimah. Amazon said that customers who book can have the vehicles delivered directly to the selected address as early as three hours from the time of booking. No security deposit is required, and rates start from as low as AED 44 / USD 12 per day. The United Arab Emirates on Jun 06 announced 1,874 new Covid-19 cases, bringing the total confirmed cases in the country to 583,071. At the same time, 1,842 more patients have recovered from the virus, taking the tally of recoveries in the UAE to 562,576. UAE's ministry of health and prevention said. It has reported 3 deaths from Covid-19 during the past 24 hours. The nationwide death toll stands at 1,699.

# GCC/MENA

Saudi Aramco Hires Banks for Debut Dollar Islamic Bond Sale. Saudi Aramco, the world’s biggest energy company, hired advisers including Citigroup Inc. and Goldman Sachs Group Inc. for its first dollar- denominated Islamic bond sale. The state-controlled company may offer three tranches of notes due in three, five and 10 years, according to a person familiar with the matter. Islamic bonds, or sukuk, comply with the religion’s teachings, including its ban on interest. Saudi Arabia's non-oil private sector expanded for the ninth consecutive month in May and did so at a pace that quickened for a second straight month, a survey showed on Thursday. The seasonally adjusted IHS Markit Saudi Arabia PMI rose to 56.4 in May from 55.2 in April, its fastest pace of growth since January. It signalled a robust improvement in business conditions and approached the series average of 56.9. Saudi Arabia's economy, the largest in the Arab world, is expected to grow 2.1% in 2021 after shrinking 4.1% last year amid the twin shocks of the coronavirus pandemic and lower oil prices, the IMF said in a recent report. Saudi Arabia has raised the July official selling prices (OSP) of most crude grades it sells to Asia. It set the July OSP for the flagship Arab light crude at USD1.90 a barrel above the Oman/Dubai average for Asia, up 20 cents from June. Saudi Arabia set its Arab Light OSP to northwest Europe at a discount of USD 1.90 a barrel against ICE Brent for July, compared with a discount of USD 2.90 for June, according to a document seen by Reuters. The OSP to the United States was set at a premium of USD 1.05 a barrel over Argus Sour Crude Index (ASCI), unchanged from June. Saudi Chemical Company signs a collaboration agreement with Glaxosmithkline Consumer Health Saudi Limited for manufacturing in Saudi Arabia. The agreement amis to benefit from Glaxo experience in consumer healthcare sector and ensure transfer of technology for consumer healthcare products Saudi, followed by the commercial scale production in Aja Pharma manufacturing site. Contractual agreement is for 5 years with an expected revenue of around SAR 100mln. Kuwait’s Jazeera Airways board approves sale, leaseback deal relating to CFM LEAP-1A 26 engine Egypt’s Talaat Moustafa Group (TMG) and the New Urban Communities Authority (NUCA) have joined hands to launch EGP 500bln Noor Capital Gardens project in East Cairo. TMG said in a press statement that the mega development, located across the New Administrative Capital area, would span 5,000 acres and house 140,000 residential units. CEO Hisham Talaat Mostafa said in the statement that four globally renowned companies - SWA, SASAKI, BCG and Perkins Eastman - have planned the project, which is slated to be the ‘first green smart city’ in Egypt. It will accommodate a population of 600,000, create 3.3mln job opportunities and generate an estimated tax revenue of EGP 110bln. Source: ADX, DFM, Bloomberg, Reuters, Gulf News, The National, Arabian business # UAE Focus list

MCAP PRICE HIGH-LOW VALUATION Div. HISTORICAL RETURN Company (AEDm) (AED) 52WH 52WL PE PB (%)^ 1M% 3M% 6M% 12M% ADCB 48,841 7.02 7.05 4.86 10.35 0.88 3.8% 12.5 18.0 20.4 39.6 ADIB 19,649 5.41 5.68 3.46 11.85 0.99 3.8% 7.6 17.2 20.5 49.1 ADNIC 2,730 4.79 5.51 3.00 7.15 1.11 7.3% (0.6) 0.9 (0.7) 68.4 ADNOC Dist 54,375 4.35 5.01 2.90 22.36 15.64 4.7% (8.2) 3.8 25.1 55.6 Agthia 5,004 6.95 7.32 2.65 84.84 2.09 2.4% 10.3 8.3 66.9 164.9 Air Arabia 6,440 1.38 1.42 1.07 NA 1.31 0.0% 7.0 9.5 7.0 13.1 Ajman Bank 1,533 0.73 0.83 0.57 19.43 0.61 0.0% 1.4 (2.7) 0.0 21.7 Al Waha 2,683 1.38 1.41 0.62 10.98 0.84 4.3% 14.0 25.1 34.4 113.4 Aldar 29,485 3.75 3.88 1.66 15.26 1.15 3.9% 5.3 5.3 21.0 116.5 Amanat 2,388 0.96 0.98 0.75 66.46 0.94 2.3% 5.8 13.7 14.0 20.9 Amlak 387 0.26 0.38 0.20 NA 1.58 0.0% 10.3 15.2 (4.8) (19.9) Aramex 6,032 4.12 4.49 3.20 27.66 2.21 3.2% 1.5 10.9 4.3 30.4 BOS 1,170 0.56 0.77 0.50 NA 0.37 0.0% (2.3) (11.0) (20.4) (7.2) DAMAC 7,744 1.28 1.75 0.67 NA 0.60 NA 4.1 4.1 (2.3) 85.5 Dana Gas 5,617 0.80 0.84 0.63 38.97 0.70 6.8% 3.6 21.1 22.9 31.5 Deyaar 1,757 0.30 0.33 0.25 NA 0.41 0.0% 12.2 13.0 8.6 10.9 DFM 9,200 1.15 1.29 0.75 72.65 1.18 0.0% 5.5 7.5 25.4 40.6 Dubai Inv. 7,016 1.65 1.72 1.11 14.67 0.59 NA 2.5 15.6 32.4 41.8 DIB 35,624 4.92 5.15 3.71 14.39 0.98 4.1% 9.6 7.0 12.1 27.4 Easy Lease 749 24.98 27.00 10.00 30.49 15.78 NA 24.9 2.0 - - Emaar Dev 14,480 3.62 3.72 2.04 8.09 1.20 0.0% 23.1 31.6 26.6 58.8 Emaar Malls 25,898 1.99 2.05 1.26 40.25 1.34 0.0% 3.1 12.4 6.4 41.1 Emaar Pro. 28,997 4.05 4.22 2.54 11.76 0.52 2.5% 3.6 13.6 20.8 50.0 DU 30,506 6.73 7.22 5.00 22.68 3.74 4.2% 0.1 (0.4) 21.2 34.5 ENBD 86,222 13.65 14.00 8.39 13.17 1.04 2.9% 9.6 23.0 32.2 51.6 Eshraq 760 0.33 0.46 0.22 NA 0.57 NA 3.2 2.2 2.2 34.0 Etisalat 190,460 21.90 22.20 16.10 20.90 4.26 5.5% 2.1 12.8 31.8 39.9 FAB 184,111 16.86 17.14 10.36 17.33 1.71 4.4% 16.0 18.9 37.5 47.6 GFH 2,566 0.67 0.69 0.53 11.29 0.70 2.5% 5.9 7.1 17.9 25.0 Gulf Nav. 318 0.31 0.55 0.30 NA 0.81 0.0% (1.0) (11.9) (24.1) (12.4) IHC 175,180 96.20 100.00 28.00 35.14 18.20 NA 2.3 100.4 139.9 243.6 Julphar 1,652 1.43 1.77 1.02 NA 1.88 0.0% (7.1) 5.9 (1.4) 12.0 Mashreqbank 10,652 60.00 71.00 60.00 NA 0.56 6.7% (7.7) (7.7) (11.6) (11.7) NBF 9,536 4.98 NA NA NA NA 1.9% NA NA NA NA Tabreed 7,828 2.82 3.15 1.79 14.42 1.52 2.0% (3.4) 6.6 9.7 47.8 RAK Bank 6,436 3.84 4.24 3.35 13.87 0.81 3.9% (1.5) 2.4 5.5 (1.8) RAK Pro. 1,106 0.55 0.64 0.35 6.68 0.28 7.2% (0.9) 3.4 20.2 53.6 RAK Cer. 2,107 2.12 2.19 1.24 NA 0.98 3.5% 9.8 21.1 52.9 57.2 SALAMA 1,014 0.84 0.97 0.48 6.54 1.19 9.8% 1.0 11.1 7.6 90.7 SIB 4,438 1.44 1.47 1.03 10.66 0.59 5.6% 5.9 6.7 25.1 45.3 SHUAA 1,598 0.63 0.77 0.50 3.76 1.05 4.8% 3.4 (5.7) 4.1 13.8 Tak. E. Ins. 213 1.42 1.77 1.20 NA 1.95 5.8% (13.9) (5.3) (9.6) 3.6 TAQA 150,662 1.34 1.78 0.61 33.19 2.39 1.9% (1.8) (3.2) (11.1) 100.2 Union Pro. 1,192 0.28 0.39 0.25 3.63 0.41 0.0% 2.6 4.5 (1.1) 1.5 UAB 1,541 0.75 0.89 0.59 NA 1.07 0.0% NA (4.1) (16.4) (16.4)

(Source: Bloomberg) ^ current dividend yield based on latest dividend declaration

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