Barclays initiates coverage of five Adnoc stocks with 'overweight' rating
Britain's Barclays Bank has initiated coverage of five of listed subsidiaries of Adnoc, with an 'overweight' rating on each and expects price appreciation of their stocks in the next 12 months. The five companies – Adnoc Distribution, Adnoc Drilling, Adnoc Gas, Adnoc Logistics & Services as well as Fertiglobe – are assets that are ready to scale, with rapid artificial intelligence and technology adoption, Barclays analysts Lydia Rainforth, Ramachandra Kamath and Mick Pickup wrote in a note to investors last week. 'Together, these companies form a diversified ecosystem poised to deliver robust returns in a dynamic energy landscape,' Barclays said. 'We take the unusual step of initiating on each company with an 'overweight' rating.' An overweight rating on a stock refers to analysts expectations that stock will outperform its industry peers within the next six to 12 months and it is used as an industry yardstick to guide investors on the potential of price appreciation of a particular stock. Barclays said the Adnoc stocks it has included in its coverage universe offer a range of different investment cases with the combination of 'value and momentum as the optimal mix'. The typical return on average capital employed, a financial ratio showing profitability versus the investments a company has made in itself – across Adnoc-covered companies is 20 per cent, which compares to the average of the US and European group at just 11 per cent. Barclays analysts estimate dividend yields average of 4.9 per cent for investors and expects on average 35 per cent potential upside to the stock prices from current levels. 'With Barclays initiating coverage on Adnoc Drilling with an overweight rating, we are proud to now be the most covered stock in Mena, followed by 19 research analysts and supported by 18 'buy' recommendations from across the globe, from China to the US,' said Youssef Salem, chief financial officer of Adnoc Drilling. 'Barclays' broader coverage of five Adnoc-listed companies is also a strong vote of confidence in the Adnoc investment ecosystem and in the UAE as a dynamic, resilient, and increasingly attractive destination for global capital.' Barclays said the wider market negativity across the energy sector spectrum was 'overdone'. The British bank continues to forecast oil and gas demand to grow into the 2030s, notably for oil as non-Opec supply additions slow. 'Concerns about a sustained sharp fall in oil prices will prove unfounded, even in the current tariff backdrop,' Barclays said. The lender's positive rating and target price are a strong endorsement of Adnoc Gas's long-term growth strategy and recent financial performance, said Fatema Al Nuaimi, chief executive of Adnoc Gas. 'Adnoc Gas is targeting 40 per cent Ebitda growth between 2023 and 2029, which, we believe, is a key factor in Barclays recommendation of a buy rating for our stock,' she said.
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Khaleej Times
27 minutes ago
- Khaleej Times
Dubai is a world's new second-home capital as demand rises
Dubai, long admired for its architectural marvels and tax-friendly policies, has evolved beyond being merely a playground for the wealthy. Today, it is firmly establishing itself as a permanent lifestyle destination for global citizens. Over the past few years, the emirate has seen a significant surge in high-net-worth individuals acquiring prime properties — not just as a means of portfolio diversification, but for actual personal use. Historically, Dubai's real estate market was dominated by flippers and short-term investors attracted by high rental yields, off-plan appreciation, and rapid development cycles. However, the profile of buyers has shifted dramatically, especially in the five years following the pandemic. Today's buyers are more emotionally invested, seeking long-term security, lifestyle benefits, and a true home for themselves and their families. This transformation has been further supported by the introduction of Golden Visas, enhanced residency laws, and Dubai's unmatched lifestyle appeal. These factors have made it easier and more desirable for foreigners to settle in the city. As a result, demand in the real estate sector has moved away from speculative investments toward end-user purchases, bringing greater stability and sustainability to the market. Why Second-Home Buyers Flocking to uae 'The lifestyle factors attracting second-home buyers to Dubai include a strong sense of safety, world-class infrastructure, a convenient geographic location, and significant tax advantages, such as zero income tax,' says Svetlana Vasilieva, Head of Secondary Sales at Metropolitan Premium Properties. In particular, families are increasingly making Dubai their second home. Drawn by the city's secure environment, excellent schooling options, and abundant family-friendly amenities, many are opting for larger residences to accommodate growing household needs. 'The introduction of initiatives like the Golden Visa and streamlined family sponsorship processes have made Dubai an even more attractive destination for families,' Vasilieva adds. 'We are seeing a clear rise in demand for 4-5 bedroom homes designed for comfort and long-term living.' Echoing this trend, Sara Aji, Managing Partner of Alma Developments, notes, 'Dubai's appeal has broadened beyond traditional investors. Families now prioritise liveability over speculation. At Alma Gardens, for example, there's increasing demand for thoughtfully designed homes with features like built-in studies, ample storage, and community amenities that cater to multi-generational living and hybrid work setups.' Dubai's reputation as a retirement-friendly city is gaining momentum thanks to the retirement visa programme and the city's tax-free environment. 'Retirees are increasingly considering Dubai for second homes,' Vasilieva observes. 'The combination of a modern, well-connected city with attractive tax benefits makes it an ideal choice for a comfortable retirement abroad.' At the same time, Dubai is emerging as a hotspot for digital nomads and remote professionals. The city's remote work visa, rapid internet, numerous co-working spaces, and thriving expat communities create the perfect ecosystem for location-independent lifestyles. Kareem Fahmy, Founder and CEO of Innovate Living and Co-Founder of Omoria, comments: 'We're seeing interest from professional couples, entrepreneurs, and remote workers relocating from major global cities. They seek not only tax and climate advantages but also a high quality of life. Dubai offers a secure, vibrant, and culturally rich environment that meets diverse lifestyle needs.' 'The shift we're witnessing is from pure investment to lifestyle-driven purchases,' says Aamil Tabani, CEO of Golden Bridge Real Estate. 'Buyers today want more than a property, they want a city that supports their way of life.' Dubai's unique blend of modern luxury, year-round sunshine, and top-tier infrastructure makes it a compelling choice for second-home ownership. 'From family-friendly healthcare and international schools to leisure facilities like golf courses, beaches, fine dining, and entertainment hubs, Dubai offers a lifestyle where individuals and families can live comfortably for months at a time,' Tabani explains. 'This lifestyle appeal is the real magnet for second-home buyers.' Tax-free Living and Long-term Visas With its bold visa reforms, investor-friendly regulations, and enviable tax structure, the emirate is outpacing traditional second-home markets like London, Paris, and Singapore. 'Dubai offers substantial tax advantages compared to traditional second-home destinations like London, Paris, or Singapore — especially for high-net-worth individuals, investors, and expatriates,' says Vasilieva. 'One of the most compelling benefits is that Dubai imposes zero annual property tax, no capital gains tax, no inheritance tax, and no personal income tax.' Compare that with Europe's leading cities, where annual property taxes range from 1% to 3%, and rental income can be taxed up to 45%, depending on tax residency and income brackets. In Singapore, foreign buyers face stamp duties of up to 60%, along with income tax on rental income capped at 22%. Dubai, in contrast, offers clarity and predictability. 'Second-home ownership in London, Paris, or Singapore often comes with a web of stamp duties, inheritance taxes, and high recurring levies,' says Aji. 'This makes Dubai not only a fantastic lifestyle destination but also a more cost-efficient place to invest in real estate.' Beyond its favourable tax regime, Dubai is also redefining how the world approaches property-linked residency. 'The introduction of long-term visas, particularly the 10-year golden visa, has been a game-changer,' says Tabani. 'It provides security, confidence, and mobility.' Today, investors can secure a 10-year golden visa by investing just Dh2 million in real estate — even through mortgage-backed purchases. The recent removal of the minimum down payment requirement for visa eligibility has further opened the gates for a broader investor base. 'Policy innovation has been a catalyst,' Tabani adds. 'Combined with transparent regulations and ease of property registration, it has boosted international interest in Dubai as a long-term second-home destination.' A recent example is the introduction of the 'visa on hold' procedure, which allows residents to temporarily suspend their visa while transferring it to a new property. This makes it easier for end-users to relocate within Dubai or upgrade their investment without bureaucratic red tape. Additionally, developers are sweetening the deal. From escrow-protected payment plans to post-handover options, buyers are finding it easier than ever to step into the market. 'These changes reflect a shift from transactional investment toward encouraging deeper lifestyle integration,' notes Aji. 'Dubai's tax environment continues to be one of its most compelling value propositions,' says Fahmy. 'But equally important is the government's proactive approach to regulation. The UAE now offers a unique mix of fiscal advantage, transparency, and lifestyle.' He points out that the 9% corporate tax introduced recently only applies to business profits above Dh375,000 — leaving most residents and real estate investors unaffected. 'The government has made targeted efforts to ensure international investors feel supported,' Fahmy adds, 'from fast-track administrative services to broader integration into the country's economic ecosystem.' Second Homes with First-Class Appeal From panoramic waterfront villas to sleek branded residences and tech-enabled serviced apartments, international investors are embracing a new kind of convenience-led luxury. 'Waterfront homes are the most popular as beaches are rarely accessible in other countries all over the world,' says Vasilieva. 'Branded residences are also a top choice among second-home buyers because they come with high-end lifestyle facilities. Meanwhile, serviced apartments are appealing to clients looking for a hassle-free investment that delivers short-stay flexibility and rental income, all in a fully furnished, smart-home-equipped package.' Tabani notes a surge in demand for branded residences that provide 'hotel-like services and global prestige,' as well as waterfront and golf-view homes that blend lifestyle appeal with solid rental potential. 'Buyers want convenience, high-end amenities, strong resale value, and minimal hassle. Developers are responding by offering turnkey solutions, flexible payment plans, and features like co-working lounges, wellness spaces, concierge services, and even international school partnerships within communities,' he says. For Fahmy, the real differentiator lies in the art of hospitality. 'Second-home buyers are increasingly drawn to residences that offer more than just design or location. What they value most is ease, privacy, and a level of service that feels intuitive,' he explains. At Omoria, this ethos is embodied by the Japanese philosophy of Omotenashi — a concept rooted in thoughtful, anticipatory care. 'Technology and AI play a meaningful role in delivering this,' Fahmy adds. 'From learning personal preferences and automating climate settings to preparing the home before arrival, our systems are designed to enhance—not replace the human touch.' Aji agrees. 'Branded residences and turnkey apartments continue to perform well, but there's also growing interest in functional, mid-size homes that are ready for immediate use, especially among families and part-time residents,' she says. 'At Alma, we provide fully fitted interiors, built-in cabinetry, and flexible layouts that accommodate extended stays without the hassle of post-handover furnishing. The demand is for homes that feel 'lived in' from day one.' Top Picks for Savvy Buyers According to Vasilieva, family-centric gated communities are leading the pack. 'From a real estate perspective, several areas in Dubai are emerging as top choices for second-home buyers, driven by lifestyle preferences, infrastructure, and investment potential,' she says. 'Gated communities such as Dubai Hills Estate, Arabian Ranches, and Emirates Living are highly sought-after for their family-friendly environments, security, green spaces, and well-developed social infrastructure, all within a single, self-contained area.' For those craving an urban pulse, neighbourhoods like Dubai Marina, Downtown Dubai, and Dubai Creek Harbour remain firmly in demand. These communities offer waterfront living and close proximity to major business hubs, alongside vibrant dining and entertainment scenes. 'Mohammed Bin Rashid City (MBR City) is also gaining popularity among both families and investors,' Vasilieva adds, citing its central location, spacious layouts, and luxury-centric amenities. 'While traditional areas like Palm Jumeirah, Downtown Dubai, and Dubai Marina continue to see strong demand, we're now seeing heightened interest in new masterplan districts such as Dubai Islands,' Fahmy says. 'These emerging areas are being developed with a clear focus on integrated living, offering a blend of residential, lifestyle, cultural, and wellness experiences within a single ecosystem.' Aji highlights the growing traction in Dubailand, particularly areas like Liwan. 'While traditional hotspots like Downtown and the Palm remain popular with the luxury segment, we're seeing strong momentum in emerging areas like Liwan that are focusing on the mid-market sector,' she says. 'These communities offer more space, better value per square foot, and improved infrastructure, especially with the upcoming Dubai Metro Blue Line.' 'Home Away From Home' As international buyers seek flexible living arrangements that blend luxury, liveability, and long-term opportunity, the emirate is ticking all the right boxes. The trend of treating Dubai as a second home is not only growing — it's here to stay. Vasilieva believes Dubai is perfectly positioned to lead this global shift. 'Yes, the trend of treating Dubai as a second home is expected to continue growing over the next decade,' she says. 'Post-pandemic, the concept of a 'second home' has evolved, it's no longer just a vacation property, but a flexible living base that supports work, lifestyle, and long-term security.' The global pandemic was a turning point in how people view mobility and space. A second home today isn't just a luxury beachfront escape, it's a strategic base that supports remote work, family life, and a new sense of wellbeing. Dubai's unique combination of tax advantages, geographic accessibility, and high-quality lifestyle has helped solidify its place on the shortlist of international buyers. 'Dubai supports this evolution through flexible visa options, zero income tax, top-tier infrastructure, and political stability,' Vasilieva adds. 'Its role as a global aviation hub further cements its appeal.' For Aji, the shift is as much about mindset as it is about market conditions. 'The pandemic redefined what it means to have a second home — it's now a flexible base that supports work, family, and wellbeing,' she notes. 'Dubai is uniquely positioned to lead this shift thanks to its infrastructure, lifestyle ecosystem, and proactive policymaking.' Aji also observes a diversification in buyer interest. While luxury remains a strong pull, there's a marked increase in mid-market investments from global citizens seeking value and long-term liveability. 'Over the next decade, we expect the second-home trend to strengthen, particularly with investors looking beyond the usual hotspots. Challenges may come from global economic headwinds or oversupply in certain sub-markets, but Dubai's continued focus on liveability and investor-friendly regulation will likely keep it front and centre in the global second-home conversation.' Indeed, the idea of 'home' itself is evolving. Fahmy sees a growing shift in priorities. 'There's a growing emphasis on well-being, mobility, and quality of life, rather than simply owning property in major capital cities,' he explains. 'Dubai caters to all these evolving priorities. It offers world-class infrastructure, a globally connected location, and a lifestyle that blends cultural depth with modern convenience.' He adds that Dubai's appeal goes beyond hard metrics like safety and tax incentives. 'It's also about hospitality, experience, and design. The city's ambition — evident in strategic plans like Dubai 2040 and its consistent top rankings in safety reinforces its status as more than just a destination. Dubai is a long-term lifestyle choice.' Tabani credits much of the growth to the emirate's visa reforms, urban planning, and consistent investment in tourism and sustainability. 'Post-pandemic, the idea of a second home is no longer just a luxury — it's a flexible lifestyle solution. People want a base in a city that offers opportunity, safety, and quality of life,' says Tabani. 'Dubai ticks every box, emerging as a hybrid home city — ideal for business, leisure, or a seasonal lifestyle. It's not just a second home anymore… for many, it's becoming their preferred home away from home.'
Zawya
30 minutes ago
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