The Daily Circuit
đź‘‹ Hello from the Middle East!
Today in The Daily Circuit, we’re looking at Etihad’s mooted IPO, OPEC+ efforts to keep oil prices high, Qatar’s increasing dominance over the LNG market and the e& telecom’s $6 billion investment in boosting connectivity. But first, robots step out front at Saudi Arabia’s LEAP24 conference.
With Ramadan expected next week, events in the Gulf are reaching a frenzied pace before a quieter month begins. LEAP24 got underway in Riyadh this morning, touted as the biggest tech exhibition in the world and with the major players represented, including Google, Microsoft, Oracle, Dell, Cisco, SAP, Amazon Web Services, Alibaba and Huawei. The kingdom was quick to break news at the conference, announcing a $1 billion commitment to its new accelerator for artificial intelligence startups.
Abdullah Alswaha, Saudi Arabia’s Minister of Communications and Information Technology, announced the government’s massive capital injection into the program, which is less than one year old. The accelerator, known as GAIA, is a collaboration between the Saudi Data and Artificial Intelligence Authority, the National Technology Development Program and the U.S.-headquartered global AI community New Native. The project – based out of Riyadh’s startup space, The Garage, which opened last year – has already recruited nearly 50 AI startups.
Indeed, AI would appear to be dominating the LEAP agenda: The kingdom’s flag carrier, Saudia, is introducing its virtual travel assistant over the four-day gathering. Also working the event will be Mohammad the Humanoid Robot, a “male” counterpart to “Sara” a human-like robot revealed at last year’s conference that could speak in different Arabic dialects and perform local dances. In 2017, Saudi Arabia became the first country in the world to grant citizenship to a robot. Named Sophia and created by the Hong Kong-based company Hanson Robotics, she made her debut at the Future Investment Initiative in Riyadh that year.
More than 1,800 international and local exhibitors, including 600 startups, are populating the exhibition floor at the King Abdul Aziz International Conference Center in Riyadh, and the Saudi government is showing off 30 of its agencies to highlight its national digitalization drive.
Meta executive Greg Marra will be speaking about building the metaverse to a largely receptive crowd: the GCC is one of the fastest growing markets for digital currencies, gaming and augmented reality. Zayad Salem will talk about the future of sports in the kingdom, from his perch as head of sports operations at Kijami Saudi Arabia. And from the cap table: Noor Sweid, Managing Partner of Dubai VC fund Global Ventures; Reema Khan, CEO of U.S. private equity fund Green Sands Equity and Chris Rust, Partner of Silicon Valley VC fund Clear Ventures, are set to speak.
đź“° Developing Stories
CROWDED SKIES
Competition is picking up in the Middle East aviation market as Gulf countries seek more ways to extract value from diversifying their economies. In the UAE, Abu Dhabi-based Etihad, backed by the ADQ sovereign wealth fund, is considering an IPO, which would make it the first Gulf carrier to go public, Bloomberg reports. In Saudi Arabia, which is launching Riyadh Air as a second flag carrier, budget airline Flynas said in December that it is looking into a public share sale.
SOAKING UP SURPLUS
OPEC+ nations, led by Saudi Arabia and Russia, extended oil supply cutbacks to the end of the second quarter to prevent amassing a surplus and keep prices from falling.
Oil has settled over the past week close to its highest this year near the highest level as the OPEC+ decision to extend the 2 billion-barrel-a-day reduction crimps supply. Brent futures today traded near $84 a barrel after rising 2% on Friday.
đź’˛ Sovereign Circuit
Public Investment Fund: Houston, Texas-based Bristow Group will work with Saudi Arabia’s The Helicopter and Jet Company, which is owned by PIF, to develop vertical-takeoff aircraft for emergency medical services, tourism and other uses. PIF-owned Alat aims to create a world-class manufacturing electronics hub in the heart of Saudi Arabia, Brian Rogove, the company’s Co-Chief of Corporate Development, told Gulf Business.
Qatar Investment Authority: Uzbekistan’s ambassador met with senior officers from the QIA, including Sheikh Faisal Al Soni, chair of telecom company Ooredoo to discuss boosting Qatar’s investments in the Central Asian country.
đź—Ł Circuit Chatter
🚢 Sinking Ship: A ship carrying fertilizer that was attacked last month by Yemen’s Houthi militants, has sunk in the Red Sea, the first vessel to be totally destroyed in the conflict.
♀️ Women’s Health: Organon, a U.S. company promoting women’s health, and Cairo-based venture capital firm Flat6Labs, have launched the second edition of an accelerator program to support startups focusing on family planning, fertility and women’s wellness.
🛞 Uber Rival: Bolt, an Estonian taxi service that competes with Uber, sees great commercial potential in its plans to expand in Saudi Arabia, Co-Founder and Chairman Martin Villig told Arab News.
✏️ Automation Prep: UiPath, a New York-based business automation firm, said it will open an office and school in Saudi Arabia that integrates AI with business processes.
đź’» Hacking Contest: More than 300 UAE students competed in the InnovAIte Hackathon, which was held in Dubai from March 1 to 3 in collaboration with the National Program for Coders.
↪↩ Closing Circuit
📱 Better Signal: UAE telecom company e& pledged to invest $6 billion to improve network connectivity and digital services across the 16 countries in which it operates across the Middle East, Africa and Asia.
🏠Gas Expansion: Qatar’s decision to expand natural gas capacity by 13% at its North Field reservoir will increase the Gulf country’s influence in the liquified natural gas (LNG) market, adding more than $30 billion to its annual revenue, Bloomberg reports.
💰 Cash Infusion: Egypt received the first $15 billion of a $35 billion Ras El Hekma development deal signed last week with Abu Dhabi’s ADQ, providing quick cash to ease its foreign currency crisis.
🇨🇱 LatAm Hub: Saudi Aramco completed the acquisition of a 100% equity stake in Chile’s Esmax, which it plans to use as a base for oil exports to Latin America.
🏗️ Hot Investment: Dubai’s Palm Jebel Ali was the top-performing area for fourth-quarter property sales as long-term investors show interest in the island under construction as a haven for the wealthy.
đź’° Fresh Funds: MENA startups raised $88.7 million across 37 deals in February, a modest growth of just 2% month-on-month, according to new data from Wamda.
🌍 Power Circuit
Sheikh Mohammed bin Rashid, Ruler of Dubai and Prime Minister of the UAE, was formally presented with a report on the Government’s financial achievements and initiatives in 2023.
Major General Sheikh Ahmed bin Tahnoun, the UAE army’s Deputy Chief of Staff, rode on Sunday on an Etihad Rail prototype passenger train from Abu Dhabi to Dubai.
Sheikh Salman bin Hamad Al Khalifa, Bahrain’s Crown Prince and Prime Minister, and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamedattended the final day of the Formula 1 Gulf Air Grand Prix 2024 in Bahrain on Saturday.
âžż On the Circuit
The pre-wedding celebration on Sunday night for Radhika Merchant and Anant Ambani, son of the wealthiest man in Asia, Mukesh Ambani, was the social event of the season in India’s western city of Jamnagar. Among the guests who enjoyed a concert with Rihanna were Qatari Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, Sheikh Nahyan Bin Mubarak Al Nahyan, the UAE’s Minister of Tolerance, Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and Group CEO of ADNOC, and Emaar Properties founder Mohammed Alabbar. Coming to celebrate from outside the region were Microsoft’s Bill Gates, Meta’s Mark Zuckerberg, Disney’s Bob Iger, Jared Kushner of Affinity Partners and his wife Ivanka Trump, and Joshua Kushner of Thrive Capital.
Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and CEO of ADNOC, met with leadership from the Red Crescent on Monday including Hamdan Musallam Al Mazrouei, Chairman; Rashid Mubarak Al Mansouri, Secretary-General; Hamoud Al Junaibi, Acting Secretary General; and Saleh Al Hashemi, Head of the Commercial Affairs Department. They met at ADNOC headquarters for a day of service for ADNOC employees, supported by the Red Crescent, ahead of Ramadan.
Nasser Al Neyadi was appointed CEO of the UAE’s Ports, Customs and Free Zone Corp. by its chairman Sultan Ahmed bin Sulayem.
Majid Al Suwaidi, Director General of the UAE’s COP28 climate summit organization, met with Kate Hampton, CEO of the Children’s Investment Fund Foundation, at the Brazilian Climate Finance Forum in Sao Paulo, to discuss climate finance and philanthropy.
Vishal Wanchoo, CEO of Oxagon, which is building an industrial city in Saudi Arabia’s Neom mega-project, said its use of renewable energy will help redefine how manufacturing zones around the world operate in the future.
Tucker Carlson, the former Fox broadcaster who’s gone independent, singled out UAE President Sheikh Mohamed bin Zayed as his pick for world’s best leader, in an interview with podcaster Lex Friedman.
🎶 Culture Circuit
🏌️ Rough Start: Golfer Anthony Kim made his hotly anticipated return as a wildcard in the Saudi-backed LIV Golf league in Jeddah on Friday after 12 years of mysterious absence. “There’s a lot of things that I’m getting used to, and these changes are obviously unfamiliar to me, seeing as I haven’t played much golf over the last 12 and a half years,” Kim said after finishing last.
🛏️ Restored Inns: Saudi Arabia’s Jeddah Historic District is opening three small hotels – the Beit Jokhdar, Beit Al-Rayes, and Beit Kedwan – after a meticulous restoration project aimed at promoting the Red Sea port city’s heritage while offering guests the amenities of boutique hospitality.
đź“· Photo of the day
đź“… Circuit Calendar
March 3-5, Abu Dhabi, UAE: Culture Summit. An annual forum of leaders from the fields of arts, design, heritage, media, museums, public policy and technology, to identify ways in which culture can transform societies and communities worldwide. Manarat Al Saadiyat.
March 4-5, New York: MindTheTech NY Conference. U.S. investors meet Israeli startups at conference sponsored by Calcalist and Bank Leumi. Quorum by Convene.
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 export market. InterContinental Doha Beach.
March 5-6, Jerusalem, Israel. Life Science & Health-Tech Week in Israel. Healthtech company executives, investors, and government leaders join the annual conference. International Conference Center.
March 7, Jeddah, Saudi Arabia: Bloomberg Power Players Jeddah. Investor conference focusing on the impact of money on professional sports. Jeddah Yacht Club.
March 7-9, Jeddah, Saudi Arabia: Formula 1 STC Saudi Arabian Grand Prix. The Jeddah Corniche Circuit.
March 14-15, Cannes, France: Saudi Talks. Saudi Arabia brings more than 20 government and industry figures to discuss the kingdom’s real estate sector at MIPIM, the world’s largest real estate event. Palais des Festivals.