The Daily Circuit
👋 Hello from the Middle East!
Today we’re looking at efforts by Turkey and Egypt to revitalize trade, MGM dispelling Dubai casino rumors, the PIF’s new joint venture with Italy’s Pirelli and Tiger Woods on prospects for the PGA-LIV merger. But first, an ode to Gulf expats.
Retaining wealthy expatriates for the long-term is critical to the growth of Gulf economies as cities vie to attract workers who are projected to live longer and retire earlier, according to a new report from Mercer, released with the World Governments Summit in Dubai this week.
“GCC countries like the UAE – because of their significant proportion of high-net-worth international expatriates – could benefit from more expatriates staying for retirement,” said Mercer’s Robert Ansari, a co-author of the report. Opportunities are growing for expats in technology and financial services across the region as the GCC relaxes visa rules and expands incentives to lure start-ups, tech companies and multinational financial firms. The UAE’s visa reforms, including its move last month to lower spending requirements to secure a 10-year residency visa, the so-called “Golden Visa,” is one example.
Home sales, a barometer of long-term commitment, are a mixed bag in the Gulf as high prices and rising interest rates pinch buyers. Residential real estate transactions in Saudi Arabia declined 16% last year compared to 2022, according to a new report by property consultancy Knight Frank. Dubai, by contrast, is shrugging off the affordability challenge — the market is hot and international buyers are flocking. The emirate counted a record 1.6 million real estate transactions last year, up 17% compared to 2022, according to the Dubai Land Department.
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📰 Developing Stories
BACK TOGETHER
Turkish President Recep Tayyip Erdogan made his first visit to Egypt on Wednesday after more than a decade of tension between the two countries. He and Egyptian President Abdel-Fattah El-Sisi pledged to work together on issues ranging from security and diplomacy to banking, energy and tourism. Since his reelection last May, Erdogan has sought to improve Turkey’s international ties while working to attract investment in the Gulf. Sisi greeted Erdogan in Cairo and said the two nations plan to boost bilateral trade over the coming few years to $15 billion. The Egyptian leader said he was invited by Erdogan on a reciprocal visit to Turkey in April.
GAME OVER
Ending months of speculation, the head of MGM Resorts International confirmed its $2.5 billion three-hotel project in Dubai will not feature a casino. William Hornbuckle said that Abu Dhabi may be better positioned for a gaming resort during an earnings call on Tuesday, and that the U.S. hospitality and entertainment company would be interested in doing business there, Zawya reports. “We spent some time on the ground there, specifically in Abu Dhabi, trying to understand the license in general for UAE,” Hornbuckle said on the call, adding that he believes the gaming development would be on Yas Island, home to the Formula 1 track. The UAE announced in September a new regulatory authority to oversee the roll-out of commercial gaming activities and a national lottery system.
💲 Sovereign Circuit
Public Investment Fund: The European Commission has granted approval to Italy’s Pirelli Tyre SpA and the PIF for a joint venture to manufacture and sell passenger car tires in Saudi Arabia.
Qatar Investment Authority: The QIA’s CEO Mansoor Bin Ebrahim Al-Mahmoud met with Kazakhstan’s President Kassym-Jomart Tokayev in Doha and discussed establishing a Qatari-Kazakh investment fund. Singapore’s Capitaland is raising a follow-on fund for co-living investments to the Ascott Serviced Residence Global Fund set up by Ascott Ltd. as a 50-50 joint venture with the QIA.
International Holding Co.: Alpha Dhabi, the diversified conglomerate controlled by Sheikh Tahnoon bin Zayed’s IHC, reported a 25% increase in net income, which reached $3.6 billion in 2023.
🗣 Circuit Chatter
🌴 Satellite View: Saudi Arabia is working on a plan to use satellites for tracking the success of its campaign to plant 10 billion trees across the kingdom.
🌽 Future Farming: The Saudi government introduced its new Sonbola program for agtech startups, helping entrepreneurs with venture capital, business incubators and rural development.
🛞 Autonomous Traffic: Dubai authorities have set a goal for 25% of transportation in the city to involve self-driving vehicles by 2030.
🛰️ Musk Link: The Israeli government approved the use of Elon Musk’s Starlink internet services within Israel and at a UAE field hospital operating in the Gaza Strip.
↪↩ Closing Circuit
🇪🇬 Gas Partners: Adnoc, the Abu Dhabi National Oil Co. and the UK’s BP agreed to form a joint venture in Egypt to help the country develop its natural gas resources. BP said last year it would spend about $3.5 billion on Egyptian energy projects through 2026.
🩺 Healthtech Finance: Vessi Medical, an Israeli startup that produces a cryotherapy device for treating bladder cancer, raised $16.5 million in a Series A funding round.
📈 Flour Shares: Investors snapped up all of the shares in Saudi Arabia’s Modern Mills for Food Products Co. IPO shortly after books opened, putting it on course to raise $314 million from the sale, Bloomberg reports.
🚙 Vanity Plates: Dubai’s Roads and Transport Authority, which sold a two-digit license plate last year for $15 million, is planning to auction off 350 additional plates that carry attractive numbers.
🧾 Payment Processing: UAE fintech platform Kema, founded by ex-Mumzworld co-founder Michael Ghandour, raised $2 million led by Speedinvest, with participation from Dubai Foundation District Fund.
🌍 Power Circuit
Indian Prime Minister Narendra Modi opened the $95 million BAPS Hindu Temple in Abu Dhabi on Wednesday, calling the carved stone structure, “a symbol of the mutual love between the Indian and Arab people.” UAE Minister of Tolerance Sheikh Nahyan bin Mubarak joined Modi at the temple and said it reflected the country’s openness to different religions and ethnicities.
UAE President Sheikh Mohamed bin Zayed met in Abu Dhabi on Tuesday with Albanian Prime Minister Edi Rama, who was in the country to attend the World Governments Summit.
➿ On the Circuit
Tiger Woods said the PGA Tour’s negotiations with Saudi Arabia’s Public Investment Fund are ongoing but that the Tour is “in a great position” after securing a $3 billion investment last month from Strategic Sports Group. The investment allows for co-investment with the PIF, which controls LIV Golf, but those talks are ongoing.
Movie star Johnny Depp and Saudi Crown Prince Mohammed bin Salman are the subjects of a feature story in Vanity Fair that explores their unlikely friendship and the kingdom’s massive investments in film and art.
Saudi filmmaker Khalid Fahad who directed the Netflix original “From the Ashes,” has made the kingdom’s first global hit, ranking in the top 10 of non-English films in 37 countries in its first weeks of release, The National reports.
🎶 Culture Circuit
🎞️ Climate Cinema: “All the Wild Things” is a three-day film festival hosted by Cinema Akil in Abu Dhabi’s 421 culture space, showing regional films that explore the climate crisis from Feb. 25-25. Panel discussions and Q&A sessions led by filmmakers will explore topics inspired by the films screened throughout the program. Children’s film screenings will take place indoors and include snacks and comfy bean bags.
📅 Circuit Calendar
Feb. 11-17, Doha, Qatar: Qatar TotalEnergies Open 2024. Professional women’s tennis tournament now in its 22nd edition. International Tennis and Squash Complex.
Feb. 16-18, Munich, Germany: Munich Security Conference. Defense industry, foreign policy and national security leaders gather for annual summit. Hotel Bayerischer Hof.
Feb. 19-20, Riyadh, Saudi Arabia: Saudi Capital Markets Forum. A gathering of government ministers, banks and local publicly traded companies to discuss integrating emerging markets with established financial systems. King Abdullah Financial District.
Feb. 21-22, Dubai, UAE: Step Conference. The Dubai edition of the leading tech festival for emerging markets. Internet City.
Feb. 22-23, Miami Beach, FL: FII Priority Miami. A summit on disruptive technology and investment trends hosted by the Future Investment Initiative 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 Centre.
Feb. 28-29, Abu Dhabi, UAE: Investopia. A gathering of investors hosted by SALT and Investopia, an investment platform launched by the UAE Ministry of Economy and backed by Mubadala and the Department of Economic Development. St. Regis Saadiyat.
Feb. 29-March 2, Sakhir, Bahrain: Formula 1 Gulf Air Bahrain Grand Prix. Bahrain International Circuit.
March 1, Abu Dhabi, UAE: Abu Dhabi Family Office Summit. One of the largest meetings in the region for family office leaders and investors. Saadiyat Rotana.
March 4-7, Riyadh, Saudi Arabia: LEAP. A global technology conference for developers, startups, investors, C-suite and media. King Abdul Aziz International Conference Center.
March 5-6, Doha, Qatar: International LNG Forum. Gathering of industry leaders and key stakeholders to discuss the future of gas in a key export market. InterContinental Doha Beach.
March 7-9, Jeddah, Saudi Arabia: Formula 1 STC Saudi Arabian Grand Prix. The Jeddah Corniche Circuit.