The Daily Circuit
👋 Hello from the Middle East!
Today in The Daily Circuit, we’re looking at the swelling population in Abu Dhabi’s financial center, the comeback of embattled contractor Drake & Scull, Etihad’s bank picks for its planned IPO, and F1 driver Max Verstappen in Saudi Arabia. But first, we’re getting ready for Ramadan.
The conference circuit will give way to the Iftar and Suhoor circuits in the Gulf as Ramadan is expected to begin next Monday or Tuesday. The Holy Month brings about one of the quietest times for deal activity and events in the region as hours are shortened for workers across sectors to make room for daylong fasting and more time spent with family.
Working hours are reduced by government mandate, typically to five hours a day in the public sector in the GCC countries, and private companies tend to follow suit. Last year, venture capital activity dropped 41% in funding and 64% in the number of deals compared to the same period in 2022. The plunge in activity was partly attributed by data platform Magnitt to the timing of Ramadan – which had occurred later in 2022.
The official start date of the Holy Month is typically announced when countries’ respective moon-sighting committees, made up of religious leaders and astronomers, spot the crescent moon, which marks the beginning. This means the official announcement for the start of Ramadan 2024 isn’t expected to be revealed until tomorrow or Sunday.
Many companies with a Gulf presence will host an Iftar or Suhoor meal during Ramadan for employees and clients. Tiktok’s Dubai office hosted a flower-draped Suhoor last year, bringing together content creators and employees, as well as Arabic calligraphers and sand art.
📰 Developing Stories
FREE MARKET
Abu Dhabi Global Market, the UAE capital’s financial Free Zone, boosted its roster of companies by 447 last year, a 32% increase, as it grew into one of the world’s largest financial districts. Assets under management increased 35%, according to a statement released on Thursday. Among the 1,825 firms in the ADGM at the end of 2023, newcomers included Brevan Howard, Ardian, Goldman Sachs, Blackstone, SBI Capital, Asian Infrastructure Investment Bank, Apollo and Vibrant Capital. Another 125 companies are in the process of seeking to set up shop in the ADGM. Hong Kong’s Infini Capital announced that it received preliminary regulatory permission to establish an office and, upon final approval, would become the first Asian hedge fund in the ADGM.
COMEBACK KID
Embattled UAE contractor Drake & Scull is mounting a comeback to the Dubai trading floor after a five-year hiatus in which it has worked to restructure a massive debt pile. The company that once worked on the Louvre Abu Dhabi is nearing the conclusion of negotiations with its lender, as well as with its trade creditors, a series of court cases, a management reorganization and two capital restructurings in the past decade. The next step is to hold a General Assembly meeting on March 27 to seek the approval of shareholders for the resumption of trading and to increase the company’s share capital, The National reports.
💲 Sovereign Circuit
Public Investment Fund: Saudi Arabia transferred an 8% stake in Aramco to the PIF’s portfolio, doubling the sovereign wealth fund’s holding with shares worth almost $164 billion.
ADQ: The Abu Dhabi sovereign wealth fund has picked advisers for a potential IPO of Etihad Airways, including Citigroup, HSBC and First Abu Dhabi Bank, Bloomberg reports. Rothschild & Co. is acting as an independent financial adviser to ADQ, it said.
Mubadala: Brazilian state-controlled oil company Petroleo Brasileiro SA has set a late-March deadline to receive binding proposals for a controlling stake in gas pipeline network Transportadora Associada de Gás (TAG), Reuters reports. Consortia led by Mubadala Development Co., Australia’s Macquarie Group and French utility Engie SA are preparing their offers, the news agency said.
🗣 Circuit Chatter
🏦 Taxing Banks: Sheikh Mohammed bin Rashid, the Ruler of Dubai, issued a law on Thursday imposing an annual 20% tax on foreign banks operating in the emirate, except those licensed to operate in the Dubai International Financial Centre, which is classified as a Free Zone.
☀️ Green Partners: The German government and the European Union agreed to provide 10 million euros ($11 million) to help Morocco in making the transition to a low-carbon economy.
🌍 Geothermal Data: The UAE’s G42 artificial intelligence company and Kenya’s EcoCloud signed an agreement to collaborate on building a data center in the East African country powered by geothermal energy.
🪙 Risk Center: Brevan Howard Asset Management has turned Abu Dhabi into its biggest risk-taking center, with 80 employees, marking one of the most aggressive moves among firms that have set up in the city, Bloomberg reports.
🛗 Going Up: Elevator company Otis Worldwide was tapped by Emaar Properties to modernize 34 of the 57 elevators and all eight escalators in the Burj Khalifa, the world’s tallest building, as well as a service contract for the next 10 years.
↪↩ Closing Circuit
💵 Hot Money: Money managers who abruptly withdrew $20 billion from Egypt two years ago will now find few places in emerging markets more attractive, Bloomberg reports, following the $8 billion loan package granted Egypt by the IMF and a $35 billion deal the government signed with Abu Dhabi’s ADQ sovereign wealth fund.
🗄️ Landing Pad: Saudi Arabia’s Riyad Capital and Al-Ramz real estate firm launched the $186 million Durrat King Khalid Fund to create office space attractive to international companies locating in the kingdom.
💳 Loyalty Points: Tookeez, a Moroccan startup for aggregating points in consumer loyalty programs, raised $1.5 million from the Azur Innovation Fund.
🧘 Wellness Platform: Fijoya, an Israeli startup with a platform for employer-sponsored health and wellness services, raised $8.3 million in a seed funding round led by Team8.
💵 New Money: Utila, an Israeli enterprise-grade crypto operations platform, closed an $11.5 million seed round from NFX, Wing VC and Framework Ventures.
📃 Paper Production: Saudi Paper Manufacturing Co. signed a non-binding agreement with Italy’s Toscotec to buy an $80 million production line as part of an expansion plan.
🙏 Tranquility Tech: Abu Dhabi-based SacredSpace.AI and DeepMinds agreed on a $480,000 pre-seed partnership deal to create products that foster tranquility through technology.
🌍 Power Circuit
Maj. Gen. Sheikh Ahmad Bin Tahnoon Al Nahyan, Deputy Chief of Staff of the UAE Armed Forces, and Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of the Masdar sustainable energy company, were present to witness the signing of a partnership agreement between the Ministry of Defense and Masdar to develop solar power plants across Abu Dhabi (see clip). The facilities will be built and operated by Emerge, a joint venture between Masdar and France’s EDF Group. Also at the signing ceremony were Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, Luc Koechlin, CEO Middle East of EDF Group; and Michel Abi Saab, General Manager of Emerge.
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, has approved the design of two new stadiums for the Shabab Al Ahli and Al Wasl football clubs. The Shabab Al Ahli stadium features a circular roof depicting the moon and will be surrounded by green spaces and walking areas.
➿ On the Circuit
Kuwait Petroleum CEO Sheikh Nawaf Al-Sabah said in a Bloomberg interview that global oil consumption is strong and the market looks relatively balanced this year as OPEC+ tries to stabilize prices. “We all now have spare capacity,” he said. “That’s also quite important for stability in the market, to know that there is additional capacity in case of a supply disruption.”
UAE Minister of State for Foreign Trade Dr. Thani Al Zeyoudi headed a delegation to Switzerland where he met senior government and business leaders to discuss economic collaboration and strengthen investment flows between the two nations.
Noor Sweid, Founding Partner at Global Ventures, spotlights Dr. Nadine Hachach-Haram, CEO and Founder of Proximie, a U.K.-based augmented reality for surgeries platform, on the sidelines of LEAP 2024 in Riyadh this week.
Max Verstappen, a Red Bull team Formula One driver, predicted a hard-fought qualifying session to come at the Jeddah Corniche Circuit this weekend.
Ahmad Abdulkarim Mohammad Julfar has been elected Chairman of the Commercial Bank of Dubai, the bank announced in a DFM filing on Wednesday. Ahmad Abdulla Juma Binbyat has been elected Deputy Chairman.
Sal Khan, Founder of learning platform Khan Academy, talks about his ambitions for AI tutors and his work with OpenAI to develop them in an interview with the Wall Street Journal.
🎶 Culture Circuit
⛳ Desert Golf: NEOM unveiled plans for its futuristic Gidori golf resort on the shore of the Gulf of Aqaba, screening a video peek at the project for its Board of Directors this week. Gidori’s immaculately groomed 18-hole course will have pod-like golf carts while visitors can rent one of 190 luxury apartments built in a crystalline structure hanging from a massive slab jutting out from the desert sand.
🤼 Grapplers Return: The UFC is bringing Fight Night back to Abu Dhabi. The mixed martial arts extravaganza was a big hit in October when lightweight champion Islam Makhachev knocked out Alexander Volkanovski in the first round to retain his belt in the main event. The next UAE match takes place Aug. 3 at the Etihad Arena on Yas Island.
📷 Photo of the day
📅 Circuit Calendar
March 7-9, Jeddah, Saudi Arabia: Formula 1 STC Saudi Arabian Grand Prix. The Jeddah Corniche Circuit.
March 7-9, Abu Dhabi, UAE: UAE Powerboat Class 3 Championship. Local and international speedboat racing professionals go head to head, organized by the Abu Dhabi Marine Sports Club. Corniche.
March 12, Virtual Webinar: Navigating Opportunities, State of Venture in the Middle East. Hear from leaders from UAE VC fund Global Ventures and MENA VC data platform Magnitt, hosted by Carta.
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.
Apr. 16-17, Abu Dhabi, UAE. Green Hydrogen Summit 2024. Bringing together experts, policymakers, and industry leaders to explore opportunities and the industry’s future. Abu Dhabi National Exhibition Center.
Apr. 16-18, Abu Dhabi, UAE: World Future Energy Summit 2024. A platform to showcase the solutions to some of the most critical challenges identified at COP28. Abu Dhabi National Exhibition Center.
Apr. 16-18, Dubai, UAE. Middle East Energy. Energy leaders gather to debate and shape the future. Dubai World Trade Center.
Apr. 23-25, Dubai, UAE: GISEC Global. A forum for furthering the key discussions that are helping to define cyber resilience and connecting the global cybersecurity community. Dubai World Trade Center.
Apr. 29-May 1, Riyadh, Saudi Arabia: Future Hospitality Summit. An international gathering hosted in cities around the world bringing together the most influential hospitality investors and developers. Mandarin Oriental Al Faisaliah.
Apr. 29 – May 5, Abu Dhabi, UAE: Abu Dhabi International Book Fair. A key event for the publishing industry in the Middle East and North Africa. Abu Dhabi National Exhibition Center.
Apr. 30-May 1, Abu Dhabi, UAE: Mobility Live. A conference and exhibition sponsored by the Abu Dhabi transport regulators, gathering disruptive technology developers in transportation and the public sector. Abu Dhabi National Exhibition Center.
Apr. 30-May 1, Abu Dhabi, UAE: Middle East Rail. The leading conference in the region for rail innovation, technology and strategy. Abu Dhabi National Exhibition Center.
