The Daily Circuit
👋 Hello from Davos!
The Middle East is front and center today as the World Economic Forum kicked off its line-up of global leaders answering questions about their toughest economic and geopolitical challenges. Up first was Qatari Prime Minister Sheikh Mohammed bin Abdul Rahman Al-Thani, who talked about the roots of the current Red Sea shipping crisis in the Gaza war and longstanding conflicts with Yemen’s Houthi rebels.
The regional problems have changed “how we view international trade, how we view international shipping, how interconnected we are from east to west,” the prime minister said. “Whenever something is happening in the Middle East, it’s affecting everyone.”
Also on the main stage today at Davos are Chinese Prime Minister Li Qiang, Ukraine President Volodymyr Zelensky, Jordanian Prime Minister Bisher Hani Al Khasawneh and Microsoft CEO Satya Nadella. Israeli President Isaac Herzog is scheduled to appear on Wednesday.
Outside the Davos Congress Center, black cars carrying VIPs were backed up on the snow-lined Promenade where groceries and retail stores have been replaced for this week by pop-up pavilions rented by dozens of businesses, media outlets and national agencies, including BlackRock, DP World, the Financial Times and Saudi Digital.
While diplomats may be dressed in hiking boots because of the icy sidewalks, many in town are carrying skis and snowboards as they head for the slopes, where a daily lift ticket goes for $98. By the numbers, Davos is hosting 60 heads of state and government officials, joined by 800 chief executives, with a total of 2,800 official participants. A couple of thousand more non-registered guests are on the prowl for deals and connections, some seen exchanging LinkedIn profiles and sipping oat milk flat whites in AI House (they’ve gone dairy-free), an old Swiss chalet retrofitted for the occasion.
The Circuit’s Jonathan Ferziger and Kelsey Warner are on the ground in Davos to bring you the color and perspectives of all the world leaders and dealmakers as the meeting gets underway.
👂 Heard at Davos
Omar Al Olama, UAE Minister of State for Artificial Intelligence, speaking on a panel at the WEF meeting, called AI an opportunity for smaller nations to “scale up brain power and compete on the global front,” adding that he is working on reducing his country’s dependence on outside players for technology.
Peng Xiao, Group CEO of UAE artificial intelligence firm G42, speaking to an audience at AI House, said the company was all in on the U.S. after previously trying to work with both the U.S. and China to develop its technology.
“At G42 we made our bet. We believe that the most advanced AI players in the world are centralized around Silicon Valley and we’ve pivoted towards a large group of partners and are working with them very closely. To maintain the previous position, say, from a couple of years ago, where we’re trying to have this neutrality to work with all sides, it’s becoming, frankly speaking, politically more difficult, and also honestly scientifically more challenging.”
He added that China is “a black box.”
“It’s right for governments and policymakers to be guarded in their policy vis a vis other national players. But we cannot afford for nations to have black boxes around them. For example, the U.S. has no clue what China is doing. That’s very risky.”
U.S. Sen. Mark Rounds, (R-S.D.) who serves as the ranking member of the cybersecurity oversight body of the Armed Services Committee, talked about the speed of the AI chip race and why the U.S. has curtailed foreign sales of the critical piece of hardware.
“We measure our spread from us versus our near-peer adversaries in a period of months. How many months ahead do we believe we are in the development of AI capabilities? And by simply restricting the availability of chips, high-speed chips… we seek to maintain our competitive edge.”
Anthony Scaramucci, founder of Skybridge Capital, talking to The Circuit about Saudi Arabia’s strong presence this year at Davos.
“I think the Saudis are sending a message – ‘Our country’s open for business. We want to integrate with the democracies. We have a beautiful country and you should feel safe in our country.’ I think this is part of a normalization process in general, and eventually with the State of Israel.”
David Rubenstein, co-founder and co-chairman of The Carlyle Group, speaking to an audience at Casper Lab’s pavilion, The Hub.
“The government is not likely to do much more to regulate Bitcoin and cryptocurrencies in the foreseeable future…. There’s clearly a desire by people to own something that government can’t know about. And that you can move easily around the world and that can’t be readily taxed. And whether that’s fair or not, or appropriate or not, there clearly is an interest in it…. The government may not like it but I don’t think it’s going away.”
Bill Ford, CEO of growth equity firm General Atlantic, on a World Economic Forum panel about private capital, said the market correction is slowing.
“There was a lot of excess from 2019 to 2021, and a lack of discipline on due diligence… we saw the same around 2000,” he said. “We have hit peak growth equity and we are back to a more rational level.”
💲 Sovereign Circuit
Public Investment Fund: The kingdom’s sovereign wealth fund is eyeing big investments in both the semiconductor and space industries this year, Bloomberg reports. The PIF is also preparing to host its second Private Sector Forum, a two-day conference starting Feb. 6. in Riyadh.
Abu Dhabi Investment Authority: ADIA will reportedly open an office in Gujarat International Finance Tec-City – also known as GIFT City – in India, becoming the first sovereign wealth fund to do so.
🗣 Circuit Chatter
Royal Stadium: Saudi Arabia is planning to build a futuristic stadium outside Riyadh that will be named after Crown Prince Mohammed bin Salman and feature some of the most advanced technology for presenting sports, concerts and cultural events.
Haj Taxis: Saudia Airlines, the kingdom’s flagship carrier, plans to operate a fleet of 100 air taxis that would shuttle between Jeddah’s international airport and the holy city of Mecca, carrying Muslim visitors performing the Haj pilgrimage.
Airport Expansion: Egypt plans to build a new passenger terminal at Cairo International Airport to handle 30 million passengers a year, double the current capacity.
↪↩ Closing Circuit
Ski and Swim: Italian construction company WeBuild won a contract worth an estimated $5 billion from Saudi Arabia’s NEOM mega-project to build dams that would create an artificial lake at the center of its Trojena mountain ski resort, MEED reports.
Emirati Growth: The UAE economy is expected to expand by more than 5% in 2024, S&P Global Ratings reports, citing growth in financial services, hotels and other bfd4566unon-oil sectors.
Chic Interiors: Dubai-based interior design firm Depa won contracts worth $204 million from Red Sea Global for work on Saudi hotels, resorts and a yacht club.
Tycoon City: An influx of millionaires to Dubai led to a doubling in sales last year of the number of homes worth $25 million or more in the city, adding up to $2.3 billion.
🌍 Power Circuit
Delegations from the Middle East, U.S., Asia and Europe have arrived in Davos. From Saudi Arabia, Faisal bin Farhan Al Saud, Minister of Foreign Affairs, is joined by Mohammed Al-Jadaan, Minister of Finance, and Bandar Alkhorayef, Minister of Industry and Mineral Resources. The UAE delegation is led by Mohammad Al Gergawi, Minister of Cabinet Affairs, while Salman bin Khalifa Al Khalifa, Minister of Finance and National Economy, is leading Bahrain. U.S. Secretary of State Antony Blinken arrived this morning. China’s delegation is represented by Prime Minister Li Qiang, joined by Chinese Commerce Minister Wang Wentao, the governor of the People’s Bank of China. Ukrainian President Volodymyr Zelensky is also attending in person for the first time since Russia’s invasion in 2022, joined by EU chief Ursula von der Leyen and NATO head Jens Stoltenberg.
➿ On the Circuit
Steve Mnuchin, the former U.S. Treasury Secretary who runs private equity firm Liberty Strategic Capital, told Calcalist while visiting Israel this week that he’s “looking at some very large significant investment opportunities” in the country.
🎶Culture Circuit
Tennis Champion: Rafael Nadal believes there is a big opportunity to help tennis grow in Saudi Arabia after the 22-time Grand Slam champion was named an ambassador for the Saudi Tennis Federation. He will spend time each year in the kingdom to help train children and promote the sport, with plans also in the pipeline for a training academy, the Saudi federation said.
📅 Circuit Calendar
Jan. 17-19, Davos, Switzerland: World Economic Forum.
Highlights for Jan. 17, Day 3 of the Davos conference. (all times CET)
- 9:00-9:45 a.m. – Supply Chains of the Future with Bandar Alkhorayef, Minister of Industry and Mineral Resources, Saudi Arabia
- 10:15-11:00 a.m. – TradeTech’s Trillion-Dollar Promise with Thani Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade.
- 4:40-5:10 p.m. – Global Ventures Founder and Partner Noor Sweid in conversation with former Ferrari CEO Jean Todt. Davos 2024 Misk Youth Majlis, Davos Platz.
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.