The Daily Circuit
Hello from Davos!
Today we’re looking at the Public Investment Fund pouring money into virtual reality company Magic Leap, Greg Coffey’s Kirkoswald Asset Management move to Abu Dhabi, Qatar suspending LNG shipments in the Red Sea and Palantir’s new partnership in Israel. But first, a stroll down the Promenade at Davos.
It is Day One at the World Economic Forum’s annual meeting, bringing world leaders, industry titans and philanthropists to the highest town in the Alps. Attendees have pulled on their snow boots, picked up their badges and are gamely working the Promenade, the winding snow-plowed street at the heart of this Swiss ski village.
One of the striking elements this year is the proliferation of pop-up pavilions on the icy street that seek to transport visitors to the sandy sun-baked Gulf – some using virtual reality.
The NEOM pavilion zeroes in on the investment opportunities at the world’s biggest construction site on Saudi Arabia’s Red Sea coast. Visitors can catch a few minutes with Chief Investment Officer Manar Al Moneef while sipping on cappuccinos made with Saudi-sourced coffee beans and look at renderings of the $500 billion mega-project.
Down the Promenade a few hundred feet, The Royal Commission for AlUla, which is leading Saudi Arabia’s redevelopment of the massive heritage site in the northwest of the country, is looking to lure tourists. It welcomes guests with dates and coffee sent straight from AlUla for the WEF meeting, and offers VR goggles for an immersive experience of the ancient site.
The UAE, meanwhile, has sent a delegation of over 100 leaders, including executives from Mubadala and ADNOC. Government officials make up only a fifth of the UAE team, as the country looks to emphasize the strength of its private sector. They can be found at the UAE pavilion, featuring Emirati chai hot chocolate at its entrance, across the street from a heavily guarded Meta corporate pop-up. The Emirates has dedicated most of its space to a stage, planning a packed agenda that carries the theme, “Impossible is Possible.”
The Circuit’s Jonathan Ferziger and Kelsey Warner are on the ground in Davos to bring you the color and perspectives of the world leaders and dealmakers as the meeting gets underway.
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📰 Developing Stories
DAVOS AGENDA
Wars in Gaza and Ukraine, tensions on the Red Sea, climate change and the proliferation of artificial intelligence are driving the conversations in Davos this week. A Kremlin spokesman has already dismissed a peace plan proposed by Ukraine at the WEF as pointless. Meanwhile, in his final days as U.S. Climate Envoy, John Kerry will open a session on Tuesday with the First Movers Coalition, a collection of close to 100 nations committed to reducing greenhouse gases in “hard-to-abate’ sectors such as aviation, chemicals, concrete, shipping, steel and road transport, which collectively account for more than a third of the world’s emissions.
QATARI SHIPS
QatarEnergy, one of the world’s biggest exporters of liquified natural gas, has stopped at least four of its tankers from sailing through the Red Sea following U.S.-led strikes against Yemen’s Houthi rebels who have been attacking ships in the vital waterway. President Joe Biden said he will continue to act against the Houthis, whose attacks have disrupted world trade and forced shippers to take longer and costlier routes to move goods.
💲 Sovereign Circuit
Public Investment Fund: The Saudi-backed PIF has invested $590 million in Magic Leap, a maker of virtual reality headsets competing with Apple’s Vision Pro.
ADQ: The Abu Dhabi sovereign wealth fund’s ADNEC subsidiary bought a 40.5% stake in Talaat Mostafa Group’s Egyptian hotel unit ICON, whose holdings include the Cairo Marriott Hotel, the Steigenberger Cecil Alexandria and Sofitel Winter Palace Luxor.
🗣 Circuit Chatter
Growing Risk: Reinsurers are inserting new get-out clauses in policies they write for clients with business in the Middle East to protect themselves if a full-scale regional war breaks out, the Financial Times reports.
Money Moves: Greg Coffey’s Kirkoswald Asset Management has set up an office in Abu Dhabi, joining a growing number of top financiers who have flocked to the emirate over the past year.
Recycled Trash: Saudi Arabia’s Ministry of Environment, Water and Agriculture introduced a plan to recycle as much as 95% of the country’s waste.
Tourism Boom: Several of Spain’s biggest hotel chains, including Barcelo, Riu and Iberostar, are opening new properties in Morocco amid the ongoing growth in tourism.
101 Floors: Dubai’s Danube Properties announced plans to build a 101-floor tower in the city’s Business Bay section that will house 1,346 apartments starting at $327,000.
Tech Supplier: Palantir, the U.S. data analysis giant, announced a strategic partnership with Israel’s Ministry of Defence and said it will supply Israel with technology “to help in its war effort.”
↪↩ Closing Circuit
Medical Alliance: PureHealth, the UAE’s largest healthcare company, completed the acquisition of Circle Health Group, Britain’s largest private healthcare provider, in a deal valued at $1.2 billion before debt.
Hospital Expansion: Dubai’s Gulf Islamic Investments has invested $160 million in Saudi Arabia’s Abeer Medical Co. and will help the hospital chain expand to new cities.
Diversifying Assets: Bank Muscat, Oman’s biggest lender, is setting up a fund to invest up to $390 million in other banks across the Gulf, seeking to diversify earnings.
Asset Sales: Egypt’s plan to sell off state companies in a series of IPOs has attracted some $3.5 billion in investment since it was announced a year ago.
Indian Upgrade: Israel’s Ceragon Networks signed a deal with an unidentified global integrator to work on a network modernization project in India worth $150 million.
🌍 Power Circuit
Sheikh Mohammed bin Rashid, the Ruler of Dubai, approved a plan to build thousands of homes in the new Latifa City development.
➿ On the Circuit
Investor Rajiv Jain’s Miami-based asset-management fund GQG has accumulated $2.8 billion in holdings in Middle East companies and plans more investments in the region, the Financial Times reports.
🎶Culture Circuit
Riyadh Fashion: Lebanese designer Elie Saab Jr. is putting together an “immersive fashion experience” specially tailored for Saudi Arabia’s Riyadh Season festival. Saab signed a preliminary agreement with the kingdom’s General Entertainment Authority in London to create the event. Saab opened a flagship store in the Saudi capital last year at the Via Riyadh Mall.
Kiwi Win: Team New Zealand took home the top prize at the inaugural Mubadala Abu Dhabi Sail Grand Prix. Taking place at Mina Zayed, the competition featured 10 national teams competing in high-speed F50 catamarans.
📅 Circuit Calendar
Jan. 15-19, Davos, Switzerland: World Economic Forum. The annual meeting aims to drive public-private cooperation and this year will focus on exploring opportunities enabled by new technologies.
Jan. 16-18, Dubai, UAE: Intersec. Security conference bringing together government and vendors focused on domestic, cyber, commercial, fire and rescue. Dubai World Trade Center and Commercial Security, Safety & Health, and Fire & Rescue. Dubai World Trade Centre.
Jan. 22-24, Riyadh, Saudi Arabia: Real Estate Future Forum. A gathering of government officials, developers and investors exploring development opportunities in the kingdom. Four Seasons Hotel.
Jan. 22-25, Abu Dhabi, UAE: UMEX. The only conference in the Middle East dedicated to drones, robotics and autonomous systems. Abu Dhabi National Exhibitions Center.
Jan. 24, Kuwait City, Kuwait: Kuwait Innovation Forum. Startup investors, policymakers meet for annual conference. Arraya Ballroom.
Jan. 25, Dubai, UAE: Casino Countdown. First Middle East conference to focus solely on the gaming industry, sponsored by Arabian Business. Atlantis The Royal Hotel.
Jan. 25-27, Manama, Bahrain: Health/Wellness Expo 2024. Annual gathering of medical professionals and alternative treatment specialists. Exhibition World Bahrain.
Jan. 29-Feb. 1, Dubai, UAE: Arab Health. The biggest trade show in the region for medical devices and healthcare. Dubai World Trade Center.
Feb. 22-23, Miami Beach, Fla.: FII Priority Miami. A summit on disruptive technology and investment trends hosted by Saudi Arabia’s Future Investment Initiatives Institute. Faena Hotel Miami Beach.
Feb. 26-29, Doha, Qatar: Web Summit Qatar. A Middle East edition of the technology crowd mega-event, gathering investors, entrepreneurs and business leaders. Doha Exhibition and Convention Center.
