The Daily Circuit
👋 Hello from the Middle East!
Today in The Daily Circuit, we’re looking at EDGE’s radar venture with Spain, Saudi Arabia’s accelerating non-oil business activity, Mubadala’s reported effort to bring U.S. restaurant chains to Brazil and Oman’s new mountain wellness resort. But first, the newsmakers at LEAP24.
Ten billion. That was the figure that caught everybody’s attention at Day 1 of LEAP24, the buzzing tech exhibition now underway in Riyadh. Saudi Arabia announced on Monday it has attracted over $10 billion in investment from Amazon Web Services and other tech companies to build data centers, the critical infrastructure to support its ambitions in artificial intelligence. AWS, Amazon’s cloud division, said it plans to open the data centers in 2026 and will pour more than $5.3 billion into the kingdom.
The Seattle, Washington-based colossus is one of many international firms that have set up regional headquarters in Saudi Arabia in response to a January 2024 deadline set by the kingdom for foreign firms to establish HQs in the country or lose out on big government contracts. Meanwhile, Saudi Aramco unveiled a large language model called AramcoMetabrain, which is built on 90 years’ worth of company data. Aramco President and CEO Amin H. Nasser said the aim is to make the world’s largest oil company more productive. Aramco also announced a new partnership with Grok, a U.S.-based AI chip company that it says can offer a faster implementation of AI. ADNOC, which has been developing AI tools for several years, said today it has generated $500 million of additional value in 2023 by using AI.
Alat, the new sustainable technology manufacturing company launched last month and backed by Saudi Arabia’s Public Investment Fund, said it plans to team up with Riyadh research university King Abdulaziz City for Science and Technology to boost the development of the semiconductor industry in the kingdom. Amit Midha, CEO of Alat, laid out his vision for the company in a keynote at LEAP on Monday: “Imagine purchasing a phone that has been assembled by intelligent robots – in an automated factory, in a smart city, in Saudi Arabia, powered by clean energy.”
📰 Developing Stories
RADAR PARTNERS
Abu Dhabi’s EDGE Group defense conglomerate completed a joint venture agreement with Spain’s Indra Sistemas to develop and manufacture advanced radar systems in the UAE. Speaking at a signing ceremony on Monday at the Ministry of Defense in Madrid, Indra Chairman Marc Murtra said the two companies are aiming to sell the technology in “untapped and fragmented non-NATO markets outside of the European Union.” According to Tactical Report, meanwhile, Sheikh Khaled Bin Mohamed, Crown Prince of Abu Dhabi and Chairman of its Executive Council, is seeking to acquire top cyber companies and integrate them into EDGE’s Electronic Warfare and Cyber Technologies division.
GULF GROWTH
Non-oil business activity in Saudi Arabia and the UAE picked up quickly in February, according to new data. The kingdom’s economy rose at its fastest rate in five months, reaching its highest level since September 2023 following a slump to a two-year low in January, according to Riyad Bank. Expectations towards future activity were buoyed, while supply chains remained supported despite ongoing conflict in the Red Sea. Meanwhile in the UAE, the latest index from S&P Global noted the fastest upturn since June 2019, as 38% of monitored firms noted a month-on-month increase in activity from new business, stronger client activity and more marketing and development work. Anecdotally, Dubai Mall — a landmark of the Gulf’s economic diversification efforts — welcomed 105 million visitors in 2023, a 19% uptick from the previous year, making it “the most visited place on Earth in 2023,” according to its developer Emaar.
💲 Sovereign Circuit
Mubadala: Mubadala Capital, a unit of the Abu Dhabi sovereign wealth fund, is eyeing popular food franchises that are struggling to turn a profit in Brazil as it seeks to boost its presence in Latin America’s largest economy, Bloomberg reports. It recently took control of Zamp, the Popeye’s and Burger King operator in Brazil as it aims to transform the business into a larger franchise operator, reportedly targeting Outback Steakhouse, among others.
Public Investment Fund: Saudi Arabia’s Principality of the Eastern Region reached agreement with a PIF subsidiary on plans to develop The Rig, an amusement park and hotel resort inspired by offshore oil platforms.
Abu Dhabi Investment Authority: The sovereign wealth fund acquired an undisclosed number of SpiceJet shares from the open market, the Indian airline reported, disclosing that ownership of its shares by foreign institutional investors surged to 6.2% last month from 0.3% in December.
ADQ: ADQ-backed PureHealth has completed the integration of Sheikh Shakhbout Medical City, adding the UAE’s largest healthcare complex to its growing portfolio.
🗣 Circuit Chatter
🌍 Climate Finance: The UAE will convene a meeting of world climate officials and bankers in June to discuss increasing country commitments to fight global warming, in preparation for November’s COP29 conference in Azerbaijan, Bloomberg reports.
🌐 Perilous Repairs: Attacks on Red Sea shipping traffic are complicating repairs to underwater cables that carry web traffic between Europe and East Asia, the Wall Street Journal reports.
🦵 Arabian Physio: Burjeel Holdings, an Abu Dhabi-based specialty healthcare provider, will open eight new physical therapy centers in Saudi Arabia under the brand name PhysioTherabia.
🏎️ Car Crash: Mohammed Ben Sulayem, President of the governing body for motorsports, FIA, is under investigation for allegedly interfering with a Formula 1 race result at the 2023 Saudi Arabian Grand Prix
📈 Going Public: Emerging-markets-focused investment bank EFG Hermes is “very bullish” on Gulf markets this year, expecting more, smaller IPOs from the region from a year earlier, investment banking head Mostafa Gad told Reuters.
💰 VentureScouting: Sequoia Capital is planning to open an office in Israel to scout for tech investments and hire Dean Meyer as its chief, currently at Vine Ventures, The Marker reports.
↪↩ Closing Circuit
🤝 Insurance Swap: Saudi Reinsurance Co. signed an agreement to sell its 49.9% stake in Bermuda’s Probitas Holdings to London-based Aviva Insurance Ltd. for $152 million.
💰 Venture Activity: The UAE led MENA for venture capital activity in February, securing $66 million in 22 deals, according to new data from Wamda.
⛰️ Mountain Resort: Oman unveiled plans for its new $2.4 billion Omani Mountain Destination development, comprising hotels, a wellness resort and residential homes.
🤖 Tech Zone: Saudi Arabia’s MODON industrial authority signed a deal with General Electric to operate a $346 million technology zone in the port city of Dammam.
💰 Store of Value: Saudi Arabian e-commerce start-up Salla raised $130 million ahead of its IPO. The round was led by Investcorp, with participation from Sanabil Investment, a wholly owned company of the PIF and STV, a technology venture capital fund and existing shareholder.
🩺 Policy Platform: Healthee, an Israeli startup that developed a platform to help companies manage employee health insurance plans, raised $32 million in a Series A funding round co-led by Fin Capital, Glilot Capital Partners, and Group11.
🌍 Power Circuit
Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah, Emir of Kuwait, arrived on a state visit to the UAE on Tuesday. He met with Sheikh Mohamed bin Zayed, UAE President, at a reception at Qasr Al Watan in Abu Dhabi that included Sheikh Mansour bin Zayed, Vice President of the UAE, Sheikh Mohammed bin Hamad bin Tahnoun Al Nahyan, Advisor for Special Affairs at the Presidential Office and Dr. Matar Al Neyadi, UAE Ambassador to Kuwait.
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, launched “Dubai Farms” on Monday, an incentive program aimed at supporting Emirati farmers.
Sheikh Mohammed bin Rashid, UAE Vice President and Ruler of Dubai, launched a AED 1 billion ($227 million) global education fund for people from underprivileged backgrounds. Called the Mothers’ Endowment campaign, the fund will also allow people in the UAE to celebrate their mothers by making donations in their name during Ramadan.
➿ On the Circuit
Former U.S. Secretary of State John Kerry says the energy transition agreement he helped broker at last year’s COP28 conference in Dubai was a “major breakthrough” in the battle to curb global warming, speaking to the Associated Press before he steps down today as White House climate envoy.
LeBron James, NBA star, and rapper Drake were among the investors in the recent round raised by the PGA Tour led by Fenway Sports Group, DealBook reports, adding some star power to the $3 billion deal.
Idris Elba, the British actor and founder of The Akuna Group impact investment firm, signed an agreement with the Abu Dhabi Investment Office to promote the emirate’s work in sustainable food production and fighting water scarcity through desalination.
Barathan Pasupathi, was named the new CEO of Kuwait’s low-cost carrier Jazeera Airways, succeeding Rohit Raachandran.
Naim Yazbeck, General Manager of Microsoft UAE, said the software maker will “double down” on its investments in the region as it expands its data centers in Abu Dhabi and Dubai.
Gautam Sashittal, CEO of the company building Saudi Arabia’s King Abdullah Financial District, said developers will be “activating” the project in 2024 with half of the area under construction.
Will Ahmed, Founder and CEO of fitness company WHOOP, met Saudi Pro League soccer star Christiano Ronaldo on a visit to Riyadh this week.
🎶 Culture Circuit
⚽ Al Mubarak’s Goal: Manchester City’s rise as a dominant force in UK soccer under Emirati ownership led by Chairman Khaldoon Al Mubarak, who runs the Mubadala sovereign wealth fund, is explored in The Athletic.
📷 Photo of the day
📅 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 4-6, Doha, Qatar: DIMDEX – The Doha International Maritime Defence Exhibition and Conference. Conference hosted by the Qatari Armed Forces features displays and discussions on latest developments in maritime defense technology and strategy. Qatar National Convention Centre.
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 5-7, Abu Dhabi, UAE: Forbes 30/50 Summit. A conference for women combining the 30 Under 30 and 50 Over 50 crowds curated by Forbes each year. Rotana Saadiyat.
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.