The Daily Circuit
👋 Ramadan Kareem from the Middle East!
Today in The Daily Circuit, we’re looking at Dubai-based Telegram eyeing a blockbuster IPO, Mubadala closing the only VC mega-fund from MENA for 2023, Rupert Murdoch stepping into the potential Redbird IMI-Telegraph deal and Morocco’s foray into green hydrogen. But first, Abu Dhabi launches an AI investment firm with its A-team.
Abu Dhabi has added a piece to the chess board in the global competition to develop advanced technology and secure the infrastructure needed to power it. The Artificial Intelligence and Advanced Technology Council on Monday announced MGX, a new investment company focused on three themes: AI infrastructure, semiconductors and core technology like software, life sciences and robotics.
The emirate’s sovereign fund Mubadala Investment Co. and AI firm G42 are founding partners. MGX will be chaired by UAE National Security Adviser Sheikh Tahnoun bin Zayed, who also chairs ADQ and ADIA, with Mubadala CEO Khaldoon Al Mubarak acting as MGX’s Vice Chairman. Board members include UAE Central Bank Vice Chairman Jassem Al Zaabi and G42 CEO Peng Xiao.
“MGX builds from Abu Dhabi’s innovation and investment leadership and an extensive network of global technology partners; in doing so, the company will further advance the UAE’s role as a home and ecosystem for top technology talent, investors and entrepreneurs,” Sheikh Tahnoun said in a statement.
The council that launched MGX was set up in January by UAE President Sheikh Mohamed bin Zayed and tasked with developing policies and strategies related to AI and advanced technology as the country aims to be a leader in development and regulation. MGX plans to have up to $100 billion in assets under management within a few years, Bloomberg reports. The new company plans to partner in the UAE and internationally.
Mubadala and G42 previously launched M42, one of the region’s biggest healthcare technology and life sciences companies, and also created Space42, one of the world’s largest geospatial technology companies. Mubadala is eyeing investments in AI and space technology, Al Mubarak said at the Investopia conference in Abu Dhabi last month.
📰 Developing Stories
MONEY MESSAGE
Dubai-based Telegram, an encrypted messaging platform, is nearing profitability and mulling an initial public offering, its owner told the Financial Times in an interview. Pavel Durov said the app has over 900 million users and is making “hundreds of millions of dollars” in revenues after introducing advertising and paid subscriptions two years ago. “We are hoping to become profitable next year, if not this year,” said the Russia-born founder in his first public interview since 2017. He said he has ruled out selling the platform while he explores a potential blockbuster IPO.
WOMEN’S DIVIDEND
The return of women to the workforce after pregnancy, childcare and other career breaks could add $385 billion to nine MENA economies, PwC says. The consulting firm conducted a survey of 1,200 women across the UAE, Saudi Arabia, Qatar, Egypt, Bahrain, Jordan, Kuwait, Lebanon and Oman and found that nearly half of women in the region have taken career breaks. The results indicate a “significant” economic potential if organizations would adopt “supportive” measures to ensure a smooth transition for women back into the workforce, PwC said.
💲 Sovereign Circuit
Mubadala: Only one venture capital mega-fund — defined as over $500 million — closed last year in the MENA region, courtesy of Mubadala‘s more than $710 million Brazil Special Opportunities Fund II, according to new data from Pitchbook.
Public Investment Fund: Saudi Arabia’s pro soccer club Al Hilal is looking to bag a 28th straight win in competitive games on Tuesday that could set a world record for a top-tier team. Al Hilal’s dominating season follows the club spending about $380 million on player transfers.
HIGH RISK
Nuvo, a maker of remote fetal monitors, prepares for Wall Street debut
Across the U.S., doctors and healthcare companies are trying to address the spread of “maternity care deserts,” large swaths of the country suffering from a shortage of obstetricians and nursing staff, The Circuit’s Jonathan Ferziger reports.
Philips test: Two years ago, health technology giant Philips teamed up with a small Israeli startup called Nuvo Group to judge whether its remote fetal monitoring equipment could help. The pilot program conducted with women in rural parts of Colorado whose pregnancies were termed high-risk ultimately persuaded Philips to strike a distribution agreement with Nuvo.
$30 million: The device’s ability to provide accurate information, assisted by artificial intelligence, is also propelling the company to its debut in the next two months on the Nasdaq stock market. Going public in a SPAC, Nuvo hopes to raise at least $30 million, CEO Rice Powell told The Circuit.
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🗣 Circuit Chatter
🗞️ Enter Murdoch: Rupert Murdoch’s News Corp. and the owner of the Daily Mail have held talks about a potential joint takeover of the Telegraph alongside the UAE-backed investment fund RedBird IMI, Bloomberg reports. Meanwhile, U.K. Prime Minister Rishi Sunak is considering changes to the law to block the sale agreement entirely, the Financial Times reports.
🌍 Green Energy: The Moroccan government said it will dedicate 1 million hectares (2.5 million acres) of land to green hydrogen projects and become a player in the renewable energy market.
🚢 Shipping Lanes: The number of container ships passing through the Red Sea and the Suez Canal fell again in February compared to January, according to Kiel Trade Indicator. Around 40 container ships still sail through the Red Sea every day, compared to an average of over 100 ships last year.
🌐 Adopting 5G: Kuwait Telecommunications Co., known as STC, is offering 5G RedCap Fixed Wireless Access service to ease customers into adopting the new internet standard.
🇷🇼 Happy Together: The Abu Dhabi Global Market and Rwanda’s Kigali International Financial Centre signed a preliminary agreement to cooperate on finance and investment.
🏗️ Slowing Down: Dubai’s residential property market is expected to cool over the next year due to increased supply and global economic pressures affecting demand, S&P Global Ratings said in a new report.
📚 New Class: Economics will be added to the Saudi school curriculum, following an agreement by two ministries designed to align education with workforce needs.
↪↩ Closing Circuit
💰 Emerging Romance: The $50 billion in financing that Egypt has received in the past two weeks, bringing it back from the brink of disaster, is likely to turn the country into an “emerging market darling” for overseas debt investors, Bloomberg reports.
🏗️ Infrastructure Spending: Abu Dhabi’s Executive Council approved 144 infrastructure projects worth $18 billion, with the focus on housing, education, tourism and natural resources.
💰 Debt Deal: Investcorp Capital has entered into a $800 million revolving credit facility agreement with a syndicate of regional and international banks to repay an intercompany transaction and to support its investment strategy, according to a bourse filing on Monday.
🌍 Power Circuit
UAE President Sheikh Mohamed bin Zayed had a call on Monday with Ursula von der Leyen, President of the European Commission, where they discussed cooperation between the UAE and the E.U. The president also spoke by phone with Nikos Christodoulides, President of Cyprus, on the same day.
➿ On the Circuit
Munerah Al-Rasheed has been elected by the World Customs Organization to head up its Regional Intelligence Liaison Offices for 2025 and 2026, becoming the first Arab woman to lead the office, the Saudi Press Agency reported on Tuesday.
Sheikh Mohammed bin Faisal Al Qassimi received unanimous Board approval to become Chairman of Sharjah-based United Arab Bank, succeeding Sheikh Faisal bin Sultan Al Qassimi, who held the post for nearly 50 years.
🎶 Culture Circuit
⚽ Goal Getters: UAE club Al Ain has secured a place in the Asian Champions League semi-finals after dramatically beating Portuguese star Cristiano Ronaldo’s Al Nassr on penalties at Al-Awal Park Stadium in Riyadh on Monday night. Al Ain will face the winner of Tuesday’s quarter-final between Saudi’s Al Ittihad and Al Hilal. It is the first time Al Ain, the UAE’s only winner of the Asian Champions League in 2003, has advanced to the final four since 2016.
📷 Photo of the day
📅 Circuit Calendar
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.
