CGTN: Digital economy becomes new growth engine for China and other G20 members

BEIJING, Nov. 14, 2022 /PRNewswire/ — Three years into the COVID pandemic, the world economy, while facing mounting uncertainties and challenges, has undergone profound changes, with the digital evolution accelerated and the digital economy emerging as a new engine for economic recovery and growth.

The digital economy refers to a broad range of economic activities that include using digitized information and knowledge as the key factor of production, modern information networks as an important activity space, and the effective use of information and communication technology (ICT) as an important driver of productivity growth and economic structural optimization, according to the G20 Digital Economy Development and Cooperation Initiative agreed at 2016 G20 Hangzhou summit.

In 2021, the added value of the digital economy of 47 major countries around the world reached $38.1 trillion, up 15.6 percent from a year earlier, accounting for 45 percent of their combined GDP, according to a white paper released by the China Academy of Information and Communications Technology (CAICT) in July 2022.

Among them, the G20 members, which represent more than 85 percent of the global GDP, 75 percent of the international trade and 60 percent of the world’s population, lead the world in the development of digital economy.

The U.S., with a digital economy worth $15.3 trillion, ranked first in the world. China came second with its digital economy reaching $7.1 trillion. The European Union took the third place with a value of $6.3 trillion.

In terms of the digital economy’s share in GDP, Germany, Britain and the U.S. ranked among the top three, all exceeding 65 percent.

G20 consensus on digital economy

At the 2016 G20 Summit held in Hangzhou, China, as the rotating presidency, included digital economy as an important topic in the summit for the first time. The country also led the formulation and release of the G20 Digital Economy Development and Cooperation Initiative, which was the first digital economy policy document endorsed by the G20 leaders.

The document proposed seven guiding principles for the development of digital economy, namely innovation, partnership, synergy, flexibility, inclusion, open and enabling business environment, flow of information for economic growth, trust and security.

It also identified six key areas for cooperation in digital economy, including expanding broadband access and improving quality; promoting investment in the ICT sector; supporting entrepreneurship and promoting digital transformation; encouraging e-commerce cooperation; enhancing digital inclusion and promoting development of small and medium-sized enterprises.

China’s booming digital economy

China’s digital economy reached $7.1 trillion in 2021, accounting for 39.8 percent of the country’s GDP, according to a white paper released by the CAICT.

From 2012 to 2021, the average growth rate of China’s digital economy was 15.9 percent, and the digital economy’s share in its GDP increased from 21.6 percent to 39.8 percent, the white paper showed.

The digital economy’s role as a stabilizer and an accelerator of China’s overall economy has become more prominent, said the white paper.

As of June 2022, China had 1.05 billion internet users, forming the world’s largest and most dynamic digital society.

The country has also built the world’s largest 5G networks, with 1.97 million 5G base stations by the end of July.

While China’s digital economy is booming and becoming an increasingly important growth engine for its economic development, the country is also offering more opportunities for international companies to grow in the Chinese market and witnessing active cooperation with G20 members in the field.

In June, German company Siemens set up its first Smart Infrastructure Digitalization Enablement Center in China, exploring collaboration with domestic firms in smart infrastructure.

U.S. tech giant IBM, with its cloud-based services, has been actively cooperating with Chinese companies in their digital transformation.

China is also working with Brazil in protecting the Amazon rainforest ecosystem with digital technologies.

https://news.cgtn.com/news/2022-11-14/Digital-economy-turns-new-growth-engine-for-China-other-G20-members–1eWXYmrvcXe/index.html

Over 150 digital startups apply for Dubai Chamber of Digital Economy metaverse academy

Dubai, UAE: Dubai Chamber for Digital Economy revealed that it has received 153 applications from 27 countries for its newly launched Future of the Digital Economy: Business in the Metaverse academy, the first-of-its-kind specialised training programme designed to equip digital startups with practical knowledge and tools they need to build and thrive in the metaverse.

A majority of the applications (67%) were submitted by digital startups based in the UAE, followed by Egypt, India, Jordan, Turkey, the UK and the US, among other countries. A total of 30 digital startups will be selected to join the training academy, which utilises VR, AR and XR technologies to immerse participants in the metaverse.

Recently launched in collaboration with the SEE Institute, the training academy will run December 5th-14th, 2022 and feature four interactive sessions delving into a wide variety of relevant topics such non-fungible tokens (NFTs), blockchain and Web3 technologies, and how these practices will pave the way to a more sustainable society.

Khalid Al Jarwan, Executive Director of the Dubai Chamber for Digital Economy, said: “We are encouraged by the strong interest in this initiative, which reflect growing business interest in the metaverse and confidence in Dubai as a digital economy hub.

Al Jarwan noted that the academy supports the Chamber’s efforts to capitalise on new opportunities emerging from increased digitalisation and the expansion of Fourth Industrial Revolution technology across all sectors of business. He added that benefits of participating go far beyond the training, adding that enrolled startups would have access to mentorship support in Dubai and free sustainable co-working space, in addition to speaking opportunities at Dubai Chamber of Digital Economy’s biggest events in 2023.

Source: Dubai Chamber of Commerce & Industry

Empower debuts listing and trading of its shares on the Dubai Financial Market

Dubai Financial Market (“DFM”) today welcomed the successful listing of Emirates Central Cooling Systems Corporation PJSC (“Empower”), the world’s largest district cooling services provider and a clear leading player in the Dubai district cooling market.

This is the fourth public offering and listing on the DFM in 2022 to date. It is part of the accelerating steps to implement Dubai’s strategy which aims to develop its capital markets.

His Excellency Saeed Mohammed Al Tayer, Chairman of Empower rang the DFM market opening bell to celebrate the listing, in the presence of His Excellency Helal Al Marri, Chairman of the DFM, Ahmad Bin Shafar, Chief Executive Officer of Empower and Hamed Ali, CEO of the DFM and Nasdaq Dubai.

Shares began trading under the symbol “EMPOWER”, concluding the Company’s successful public offering that raised AED 2.66 billion giving a market capitalization of AED 13.30 billion on admission with a share price of AED 1.33 at the upper end of the floatation price range, noting that the Company has increased the size of the offering by 100% to cater to the strong demand that led to the IPO being covered on its first day. Accordingly, the offering was oversubscribed by 47 times as it drew a total of AED 124.69 billion. Empower shares trade within the Utilities Sector.

His Excellency Saeed Mohammed Al Tayer, Chairman of Empower said: “Thanks to the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, and the support from His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance, Dubai is moving steadily to become a leading global economic hub. Empower’s IPO further reiterates Dubai’s focus towards building robust capital markets and accelerating new listings that unlock value and growth in vital sectors.”

His Excellency Ahmad Bin Shafar, Chief Executive Officer of Empower, commented: “We are proud to take this next important step in Empower’s journey and become a public company. It is an honour to have the prestige of a public listing and now a very important role to play in one of the world’s most active, dynamic capital markets. It’s a privilege to be part of Dubai’s successful privatisation programme and broader efforts to deepen and broaden our stock markets by attracting foreign investment. The oversubscription levels illustrate not just what a great investment case Empower is, but the enduring allure of Dubai’s history, progress and longer term economic vision.”

His Excellency Helal Al Marri, Chairman of the DFM, said: “We welcome Empower to DFM. Today marks another important moment in Dubai’s ambitious programme to develop its capital markets. Due to the rapid implementation of this programme, the DFM has become one of the most active financial markets globally in terms of new IPOs and listings this year. This momentum underscores the sound fundamentals of the economy in Dubai and the UAE and investors’ deep confidence. It also demonstrates the effectiveness of the strategic plan for the development of capital markets under the supervision of His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance.”

Hamed Ali, CEO of the DFM and Nasdaq Dubai, said: “Dubai is a thriving, dynamic international financial centre full of opportunities. Its economy is quickly evolving and its world class markets are increasingly attracting international and national investments by both retail and institutional investors. Our capital markets are quickly deepening and diversifying. The listing of Empower underscores the sustained momentum of IPOs on DFM year to date, as the new issuers raised AED 33.4 billion and attracted a record level of subscribed funds totaled AED 659.2 billion.”

The DFM applied no price limits on the shares during the first day of trading, as they will be applied from the second day of listing.

It is noteworthy that the DFM investor base has exceeded one million for the first time ever by the end of September 2022. The number of new investors has increased 41 times to 155,060 investors.

Source: Dubai Electricity and Water Authority

AD Ports Group delivers record net profit in Q3 2022 with 77% growth YoY

ABU DHABI, AD Ports Group on Tuesday announced its financial results for the third quarter of 2022.

The Group’s revenue grew 53% YoY to AED1,466 million in Q3 2022 (+35% YoY growth to AED3,755 million for 9M 2022), driven by strong growth in its Maritime Cluster and a robust performance of its Economic Cities & Free Zones (EC&FZ) Cluster.

Ports Cluster revenue grew 18% YoY on a like-for-like basis when adjusted for the positive effect of a one-off sand supply contract in 2021.

EBITDA increased 52% YoY to AED594 million in Q3 2022 (+42% YoY growth to AED1,650 million for 9M 2022), implying an EBITDA margin of 40.5% in Q3 2022 and 43.9% for 9M 2022. The Group’s EBITDA performance should continue to be supported by higher operating leverage in the Ports and EC&FZ Clusters going forward.

Net Profit soared 77% YoY to reach AED334 million in Q3 2022 (+58% YoY growth to AED941 million for 9M 2022).

Earnings per share increased 27% YoY to 0.19 for 9M 2022.

AD Ports Group continued to press ahead with its ambitious organic revenue generating CapEx programme, with spending of AED1.6 billion in Q3 2022 and AED4.2 billion for 9M 2022.

Operating Cash Flow amounted to AED1.3 billion for 9M 2022, implying a cash conversion of 76% while Free Cash Flow remained negative at AED-2.6 billion due to the large ongoing revenue generating growth CapEx investments. AD Ports Group maintains a solid financial position and robust balance sheet, with significant capital resources available for both organic and inorganic growth.

Operationally, Ports Cluster container volumes grew 31% YoY in Q3 2022 (+28% YoY for 9M 2022), driven by increased capacity after the expansion of ADT and CSP Abu Dhabi Terminals in 2021.

One of the key highlights of the period was the announcement of the acquisition of an 80% equity stake in Dubai-based Global Feeder Shipping (GFS), a global container shipping company, for AED2.9 billion (US$800 million), implying a 100% Enterprise Value of AED3.7 billion (US$1.0 billion).

GFS is the third largest feeder shipping business globally, with operated capacity of 72,500 TEUs, a total of 26 vessels, and 9,000 owned and 31,000 operated containers across its feeder and NVOCC businesses. It operates a comprehensive service network of 20 services across the GCC, Red Sea, Indian Subcontinent and Southeast Asia.

Upon completion, the acquisition, which is the company’s largest by AD Ports Group to date, is set to position AD Ports Group as the largest pure feeder operator in the region and the third largest globally by container capacity, which will be close to 100,000 TEUs. GFS provides a complementary asset base and portfolio of services that will boost AD Ports Group’s regional and global footprint.

The company expects the GFS acquisition to be c.60% EPS accretive on a full-year basis in 2023.

In September, AD Ports Group also completed the acquisition of a 70% stake in International Associated Cargo Carrier (IACC) in Egypt, which fully owns Transmar and TCI, for an enterprise value of AED514 million (US$140 million).

The transformative impact of the company’s acquisitions strategy can be seen most clearly in the enhanced performance of the Group’s Maritime Cluster, which saw a 241% YoY increase in revenue to AED1.3 billion in the first nine months of the year.

This was in part driven by increased activity in new business segments and service offerings, including feedering, chartering, transshipment, and offshore services, and accelerated by the contribution of the recent acquisitions, including Divetech, ASCL, SAFEEN Surveys and Subsea Services, and Transmar, which accounted for 27% of the total 9M 2022 Maritime Cluster revenue.

Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said, “These remarkable results demonstrate the effectiveness and impact of our ambitious growth strategy, as we seek new opportunities even in challenging global market conditions. As ever, we are grateful to our wise leadership for their steadfast support for our initiatives at home in the UAE and worldwide.

We have pursued joint ventures and acquisitions that have built supply chain density along major routes, accelerating trade and building resilience for customers worldwide. These new ventures have played a key role in expanding our service offering, enabling us to support customers at every stage of their business journey, and delivering exponential growth in our maritime business in particular.”

Martin Aarup, Group Chief Financial Officer of AD Ports Group, said, “We have a strong balance sheet, a firm bedrock of long-term recurring revenue for our Ports and EC&FZ businesses, and we see a positive correlation between the fundamentals of the Abu Dhabi economy and the success of our business. Our alignment with the emirate’s long-term industrial and manufacturing strategies, the country’s National Food Security Strategy 2051, and the long-term strategy to diversify the economy and boost non-oil exports all auger well for our business in the future.”

Ross Thompson, Group Chief Strategy and Growth Officer, AD Ports Group, said, “Globally, we can see signs of economic recession and a slowing of international trade, but our operations are thriving in markets and along routes that still show tremendous capacity for growth, particularly in the MENA region, along the Red Sea coast, and the Indian subcontinent.

“We are successfully executing a three-stage growth strategy with clear objectives and outcomes, consolidating our position as the leader in logistics and trade services in Abu Dhabi and the UAE; executing customer-led regional expansion along critical trade routes and through focused service launches; and expanding globally across major maritime and inland supply chains. We can offer confident medium-term visibility that will see positive strong revenue, EBITDA and profit growth for the next five years.”

Source: Emirates News Agency

DEWA organises Partners Creativity Lab 2022

Dubai Electricity and Water Authority (DEWA) organised the Partners Creativity Lab 2022, at its Innovation Centre at the Mohammed bin Rashid Al Maktoum Solar Park, in the presence of a group of DEWA partners from the public and private sectors. The event aimed to discuss ways to enhance collaboration to achieve joint strategies, meet partner needs and exceed their expectations, develop benchmarks, manage risks and improve corporate flexibility. The Creativity Lab included a range of interactive workshops and panel discussions, as well as a tour of the Innovation Centre.

“We build strategic partnerships with local, regional and global organisations to achieve national and global ambitions, and to contribute to foreseeing and creating a more sustainable and brighter future for our current and future generations. This supports the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to transform Dubai into the smartest city in the world, and the Dubai Clean Energy Strategy 2050 and the Dubai Net Zero Carbon Emissions Strategy 2050 to provide 100% of Dubai’s total power production capacity from clean energy sources by 2050. It also supports the UAE Centennial 2071 objectives to make the UAE the world’s leading nation. DEWA is proud of its effective partnerships that consolidate international efforts in facing global challenges, exchange best global practices and experiences, stimulate research and innovation to find sustainable and innovative solutions, accelerate digital transformation and achieve comprehensive and sustainable development,” added HE Saeed Mohammed Al Tayer, MD & CEO of DEWA.

“Over DEWA’s journey of distinguished global achievements and successes, our partners have played a fundamental role in strengthening our position as one of the most distinguished and pioneering utilities in the world in all fields, and in supporting our relentless efforts to become a globally leading sustainable innovative corporation that keeps pace with Dubai’s prosperity and meets the increasing demand for electricity and water. This is according to the highest standards of availability, reliability, efficiency and sustainability, to provide an integrated, innovative and value-added experience that meets the aspirations of customers, and enhances the happiness of stakeholders and the quality of life in Dubai,” added Al Tayer.

Al Tayer thanked all local and international partners, praising their keenness for strengthening constructive partnerships for the benefit of all parties and in support of international efforts to enhance sustainability. Al Tayer highlighted DEWA’s keenness to listen to the ideas, opinions and observations of stakeholders, including customers, partners, and community members, to turn them into services and initiatives compatible with their needs, continuing the process of development and improvement and ensuring the best results.

Source: Dubai Electricity and Water Authority

Empower debuts listing and trading of its shares on DFM

DUBAI, Dubai Financial Market (DFM) today welcomed the successful listing of Emirates Central Cooling Systems Corporation (Empower). This is the fourth public offering and listing on the DFM in 2022 to date. It is part of the accelerating steps to implement Dubai’s strategy which aims to develop its capital markets.

Saeed Mohammed Al Tayer, Chairman of Empower, rang the DFM market opening bell to celebrate the listing, in the presence of Helal Al Marri, Chairman of the DFM, Ahmad Bin Shafar, Chief Executive Officer of Empower and Hamed Ali, CEO of the DFM and Nasdaq Dubai.

Shares began trading under the symbol “EMPOWER”, concluding the Company’s successful public offering that raised AED2.66 billion giving a market capitalisation of AED13.30 billion on admission with a share price of AED1.33 at the upper end of the floatation price range, noting that the Company has increased the size of the offering by 100% to cater to the strong demand that led to the IPO being covered on its first day.

Accordingly, the offering was oversubscribed by 47 times as it drew a total of AED124.69 billion. Empower shares trade within the Utilities Sector.

Chairman of Empower commented, “Thanks to the vision and directives of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, and the support from H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance, Dubai is moving steadily to become a leading global economic hub. Empower’s IPO further reiterates Dubai’s focus towards building robust capital markets and accelerating new listings that unlock value and growth in vital sectors.”

Chief Executive Officer of Empower said, “We are proud to take this next important step in Empower’s journey and become a public company. It is an honour to have the prestige of a public listing and now a very important role to play in one of the world’s most active, dynamic capital markets. It’s a privilege to be part of Dubai’s successful privatisation programme and broader efforts to deepen and broaden our stock markets by attracting foreign investment.”

Chairman of the DFM said, “We welcome Empower to DFM. Today marks another important moment in Dubai’s ambitious programme to develop its capital markets. Due to the rapid implementation of this programme, the DFM has become one of the most active financial markets globally in terms of new IPOs and listings this year. This momentum underscores the sound fundamentals of the economy in Dubai and the UAE and investors’ deep confidence. It also demonstrates the effectiveness of the strategic plan for the development of capital markets under the supervision of Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum.”

CEO of the DFM and Nasdaq Dubai said, “Dubai is a thriving, dynamic international financial centre full of opportunities. Its economy is quickly evolving and its world class markets are increasingly attracting international and national investments by both retail and institutional investors. Our capital markets are quickly deepening and diversifying. The listing of Empower underscores the sustained momentum of IPOs on DFM year to date, as the new issuers raised AED33.4 billion and attracted a record level of subscribed funds totaled AED659.2 billion.”

The DFM applied no price limits on the shares during the first day of trading, as they will be applied from the second day of listing.

It is noteworthy that the DFM investor base has exceeded one million for the first time ever by the end of September 2022. The number of new investors has increased 41 times to 155,060 investors.

Source: Emirates News Agency