Presight AI, a data analytics company owned by Abu Dhabi’s G42 Group, has announced plans to generate 1.82 billion dirhams ($495 million) through an initial public offering (IPO) and subsequently list its shares on the Abu Dhabi Securities Exchange’s first market. On March 3, the UAE Securities and Commodities Authority granted approval to the company’s IPO application. According to a notice published in the local media, the company intends to offer 1.36 billion shares at a price of 1.34 dirhams per share. After the IPO, Presight AI’s share capital will be 560.86 million dirhams.
Presight AI has entered into a cornerstone investment agreement with Abu Dhabi conglomerate International Holding Co. (IHC), under which IHC has committed to investing in the planned IPO. In the previous year, G42 executed an IPO for another subsidiary, Bayanat, an Abu Dhabi-based provider of geographic data and analytics. G42 is supported by Abu Dhabi’s sovereign wealth fund, Mubadala.
End-to-end logistics services
AD Ports Group and SEG ENERA Group, a multisectoral holding company based in Uzbekistan, have announced the creation of a joint venture named ADL-Ulanish. The purpose of this new entity is to offer comprehensive global logistics services throughout Uzbekistan.
AD Ports Group will leverage its proficiency in global supply chain logistics and advanced technology to tackle some of the logistical issues that companies face in Uzbekistan, a country that is doubly landlocked.
Meanwhile, SEG ENERA Group will contribute its regional knowledge, industry best practices, and industrial assets, such as warehousing capacity and rail and trucking fleets. The joint venture will cater not only to SEG ENERA’s business requirements but also to the demands of other customers in Uzbekistan’s market.
MAF posts revenue hike
Majid Al Futtaim Holding, a company based in Dubai, has reported a rise in its full-year revenue due to a surge in tourism in the region, which led to an increase in footfall at its malls, hotels, and entertainment venues. The company’s revenue for 2022 grew by 12 percent, reaching 36.3 billion dirhams, while its earnings before interest, taxes, depreciation, and amortization rose by 4 percent, reaching 4.1 billion dirhams. Despite this, the company’s net profit declined by 2 percent, standing at 2.4 billion dirhams, as a result of increased inflation and currency fluctuations in some of the group’s markets.
The company’s hotel business saw a significant increase in revenue per available room of 50 percent, as well as a 14 percent increase in average occupancy, due to various events such as Dubai’s Expo 2022, increased demand during holidays in Saudi Arabia, and the FIFA World Cup in Qatar.
According to a recent report from AM Best, the insurance market in the United Arab Emirates (UAE) has experienced a significant decline in underwriting profitability in 2022. The report states that this is largely due to the highly competitive market conditions and continuous pricing pressures, especially in the core motor and medical lines, which represent a significant portion of the retained risk in the market.
The report, titled “Intense Price Competition Erodes Profitability of United Arab Emirates – Listed Insurers in 2022,” reveals that despite an increase in gross written premiums of over 10 percent, listed national insurers in the UAE generated lower aggregate profits in 2022. The report highlights the need for insurers to implement effective pricing strategies and underwriting discipline in order to maintain profitability and ensure sustainable growth in the UAE insurance market.