The Daily Circuit
š Ramadan Kareem from the Middle East!
Today in The Daily Circuit, weāre looking at Saudi Aramcoās big dividend payout, broader Gulf investment in sports, record gold prices turning Emiratis into window-shoppers and Max Verstappen extending his F1 winning streak with the Saudi Arabian Grand Prix. But first, bright indicators for Dubaiās non-oil economy.
Itās a good time to be job-hunting in Dubai. The economy grew quickly in February, bucking inflationary pressures and disruptions in the Red Sea, spurring the biggest hiring spree in the emirate in eight years, according to new data.
The S&P Global Dubai Purchasing Managers’ Index, a closely monitored indicator of the non-oil economy, posted an uptick from January. The economy started strong in 2024 and cost pressures remained modest last month. The reading matched May 2019 ā making it the joint-highest reading in just over nine years, according to S&P Global.
Dubaiās non-oil economy is āone of the fastest growing worldwide,ā David Owen, Senior Economist at S&P Global Market Intelligence, said. āOutput and new order volumes are proving especially robust, with companies reporting new clients, higher demand and a still improving economy post-pandemic,ā he added.
The bumper jobs report in February comes after around four months of more subdued hiring as businesses factored in the newly introduced corporate tax requirements rolled out in the UAE at the start of the year. Construction, project management and real estate added the most jobs, while travel and tourism is poised for another strong first quarter, according to S&P Global.
š° Developing Stories
OIL PROFIT
Saudi Aramco paid out nearly $100 billion in dividends in 2023 despite reporting a 25% drop in annual profit and cutting production to keep oil prices high. CEO Amin Nasser said on Sunday that the company was looking to make new investments in China, where he said demand for oil is strong and growing. Reuters reported, meanwhile, that Aramco and the UAEās ADNOC are trying to extract lithium from brine in their oilfields to produce batteries for electric vehicles. Carmakers are looking for new lithium supplies, which are expected to be the primary source for EV battery power for the coming years even though cheaper alternatives are being tested.
SPORTING LIFE
Saudi Arabia is looking to lure private capital to its local football clubs amid a push in the region to nurture a sports and leisure sector. āWe expect to have another wave of privatization coming up soon,ā Vice Minister of Sport Bader Alkadi said at Bloomberg Power Players Jeddah on Thursday. āThat gives us opportunity to make the investment in sport a sustainable investment.ā Saudi Arabia and, to a somewhat lesser extent, the UAE, have been on a spending spree to develop leagues and facilities to support athletics on the professional and recreational levels. On Friday, Abu Dhabi Entertainment Company inked a deal with Sanad Strata and Solutions+ to update sports facilities across the capital. Meanwhile, Dubai opened two new bike paths over the weekend as it plans over 600 miles of track.
š² Sovereign Circuit
Qatar Investment Authority: Sionna Therapeutics, a Boston-based healthcare firm working on a treatment for cystic fibrosis, raised $182 million in a Series C funding round led by Enavate Sciences with participation from the QIA.
Public Investment Fund: Ceer, the Saudi Arabian electric vehicle company backed by the PIF, will develop a $1.3 billion manufacturing facility in the kingdomās King Abdullah Economic City.
Oman Investment Authority: Karwa Motors, a joint venture between the OIA and the Qatar Investment Authority, has signed an agreement with Omanās Ministry of Education and the Oman Development Bank to assemble and supply 5,000 school buses.
ADQ: Unifrutti, a unit of Abu Dhabi sovereign wealth fund ADQ reached a deal to buy Peruās AvoAmerica and Bomarea from U.S.-based Solum Partners and Alpine Fresh.
International Holding Co.: Ghitha Holding, a unit of Abu Dhabi-backed IHC, acquired a 12% stake in Al Ain Farms for $16.6 million, boosting its stake in the UAEās largest dairy company to 60%.
š£ Circuit Chatter
š¦ Delivery Hub: Aramex, a UAE-based package delivery and logistics company, said it will establish a regional headquarters in Saudi Arabia, enabling it to receive government contracts.
āØ Window Shoppers: Record gold prices have cut deeply into business at the Dubai Gold Souk where customers are window-shopping instead of buying expensive jewelry, Bloomberg reports.
š± Currency Float: Moroccoās central bank is well-positioned with slowing inflation and improved balance of payments to take steps towards a fully floating dirham, Capital Economics reports.
šļø Telegraph Deadline: U.K. Culture Minister Lucy Frazier is due to decide today whether Abu Dhabi-backed Redbird IMI can take control of The Telegraph or the deal should undergo further review.
š Driverless R&D: Abu Dhabiās Advanced Technology Research Council (ATRC), a government-backed applied research entity, and South Korea-based Seoul Robotics are exploring a partnership for joint research and development in autonomous driving.
āŖā© Closing Circuit
š IMF Bump: Egyptian stocks closed at a record high on Sunday, extending a rally set off by a new deal with the International Monetary Fund for an $8 billion loan package.
š° Raising Funds: Wiz, an Israeli cybersecurity startup, is in talks with Sequoia, Thrive and Light Speed Venture Partners to raise as much as $800 million, the Financial Times reports.
š§š· Bought in Brazil: Nayax, an Israeli fintech startup, completed the $28 million acquisition of Brazilās VMtecnologia after raising $55 million in a public offering.
š Sacred Property: Saudi Arabiaās holy cities of Mecca and Medina are drawing high-net-worth Muslim property buyers, who plan to invest $2 billion in the markets, a Knight Frank report says.
š Power Circuit
Sheikh Abdullah bin Zayed, UAE Minister of Foreign Affairs, met with MĆ©lanie Joly, Minister of Foreign Affairs of Canada, in Dubai over the weekend.
UAE President Sheikh Mohamed bin Zayed ordered the release of 735 inmates from correctional facilities ahead of the Holy Month of Ramadan.
Sheikh Mohammed bin Rashid, UAE Prime Minister and Ruler of Dubai, ordered the release of 691 prisoners of different nationalities from Dubaiās correctional and punitive establishments, ahead of Ramadan.
Sheikh Saud bin Saqr Al Qasimi, Ruler of Ras Al Khaimah, ordered the release of 368 prisoners ahead of Ramadan, and pledged to settle their financial liabilities on the advent of Ramadan.
āæ On the Circuit
Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President and Group CEO of ADNOC, met in Greece on Sunday with Prime Minister Kyriakos Mitsotakis to discuss sustainable investments and economic cooperation. Abu Dhabiās Mubadala Investment Co. and Greeceās Hellenic Development Bank of Investments signed a preliminary agreement to inject an additional 200 million euros ($219 million) into their existing partnership.
Emirati astronauts Hazza Al Mansouri and Sultan Al Neyadi appeared at a ceremony in Washington that paid tribute to collaboration in space between the UAE and U.S., which was attended by NASA Administrator Bill Nelson and hosted by UAE Ambassador to the U.S. Yousef Al Otaiba.
Soccer star Lionel Messiās ads promoting Saudi Arabia reached 747 million people, according to Mazen Nahawi, Founder and CEO of media monitoring firm CARMA.
Mohammed Al Turki, CEO of the Red Sea Film Foundation which backed the Oscar-nominated documentary āFour Daughters,ā attended the Academy Awards on Sunday.
š¶ Culture Circuit
šļø F1 Champ: Red Bull’s Max Verstappen won the Formula One Saudi Arabian Grand Prix on Sunday, beating teammate Sergio Perez who came in second place and Ferrariās Charles Leclerc in third. The victory was Verstappen’s second in 2024 and his ninth consecutive win since September.
š Circuit Calendar
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 kingdomās real estate sector at MIPIM, the worldās 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.