The Daily Circuit
👋 Hello from the Middle East!
Today in The Daily Circuit, we’re looking at Saudi Arabia attracting billions in private investment for its tourism push, Oman breaking ground on a renewables manufacturing facility, Dubai’s Parkin IPO being way oversubscribed and the latest on the PIF’s bid for pro tennis. But first, new developments in Abu Dhabi’s AI ambitions.
Abu Dhabi’s G42 shared its latest progress on building a network of nine supercomputers, a massive project first announced last year and undertaken in partnership with American semiconductor startup Cerebras Systems. The aim is to equip the UAE’s flagship artificial intelligence firm with access to some of the fastest and most efficient computing power in the world to train its large language models like Jais, an Arabic-and-English bilingual LLM and Med42, which is being deployed in healthcare.
On Wednesday, G42 said it had broken ground on the third phase of its Condor Galaxy supercomputer network, this one located in Dallas, Tex. The new high-performing hardware is powered by the industry’s fastest AI chip as Cerebras looks to compete with market-dominating chipmaker Nvidia.
The company also announced its commercial rollout of BoardNavigator, an AI technology developed with Microsoft as a corporate strategy and governance assistant. The AI tool will analyze large proprietary and public data sets to support board members in their decision-making processes, the company said. UAE conglomerate International Holding Co. (IHC), chaired by UAE National Security Advisor Sheikh Tahnoun bin Zayed – who also chairs G42 – is the first customer.
📰 Developing Stories
TOURISM MAGNET
Saudi Arabia’s tourism industry has drawn about $13 billion in private sector investment, adding thrust to its campaign to attract international travelers. The money will pay for the addition of 150,000 to 200,000 hotel rooms over the next two years, Princess Haifa M. Al Saud, Saudi Arabia’s vice minister for tourism, told Bloomberg. Government projections call for $85 billion in tourism revenue in 2024, up from $66 billion last year. The kingdom has been on a spending spree to spruce up historical sites such as the desert city of AlUla and the Diriyah section of Riyadh with luxury hotels and high-end restaurants. It has also staged gaming conferences, MMA (mixed martial arts) matches and hip-hop concerts to attract younger visitors from abroad.
HERE COMES THE SUN
Australia’s United Solar broke ground on a $1.3 billion factory in Omanto make polysilicon, which is used in the production of solar panels. The project being built at the Sohar Port and Free Zone, will be the largest of its kind in the Middle East, with an annual production capacity of 100,000 tons, the company said in a statement. “We are committed to fostering a dynamic and inclusive environment for investment and growth, leveraging our strategic location and world-class infrastructure to attract businesses looking to expand into the Middle East and beyond,” Sohar Freezone CEO Omar Mahmoud Al Mahrizi said.
💲 Sovereign Circuit
Dubai Investment Fund: Dubai’s Parkin, which operates public parking spaces in the emirate, will go public at the top of its pricing range at 2.10 UAE dirhams ($0.57) per share, raising $429 million for the selling shareholder Dubai Investment Fund. The 25% stake sale, the emirate’s first privatization deal this year, values the company at $1.72 billion, the company said in a statement on Thursday. According to Parkin, the IPO saw 165 times oversubscription, the highest achieved on the Dubai Financial Market, with gross demand for shares from investors reaching $71 billion.
Mubadala: The Abu Dhabi sovereign wealth fund has formed an alliance with New York-based Blue Opal Capital, becoming an anchor investor in its new venture capital fund. “We are excited to back the Blue Opal Capital team, led by Ahmed Al Mosa, Sebastien de Jong and Federico Jost,” said Faris al Mazrui, Head of Growth Investments at Mubadala. “The team has a solid track-record and a demonstrated ability in identifying emerging managers that have matured into top quartile VC firms.” Autonomous driving company Waymo, which is backed by Mubadala, said on Wednesday it is moving to new phases in programs being run in Los Angeles and Austin.
Public Investment Fund: The PIF has denied reports that it has made a $2 billion “take-it-or-leave-it” offer to unite tennis’s ATP and WTA Tours, merging the men’s and women’s tours, with sources insisting its intention is to be a collaborator not a disruptor if a deal is made, The Guardian reports.
🗣 Circuit Chatter
🇪🇬 Brighter Outlook: Moody’s upgraded its ratings outlook for five Egyptian banks from negative to positive after the IMF’s expansion of a loan package for Egypt to $8 billion.
🚢 Headwinds at Sea: Dubai-based global port operator DP World reported a 33% drop in 2023 net profit to $820 million and said outlook remains uncertain due to geopolitical and macroeconomic headwinds.
🗞️ Stop the Presses: U.K. Prime Minister Rishi Sunak is trying to block The Telegraph’s sale to UAE-backed Redbird IMI by making it illegal for a foreign government to own a British news organization.
🛫 No Departures: Irish low-cost carrier Ryanair announced it is canceling all flights to and from Tel Aviv through October, citing a war-related hike in terminal fees.
↪↩ Closing Circuit
🛢️ Adding Underwriters: Saudi Arabia is in talks to add top Wall Street banks, including JPMorgan Chase, Bank of America Corp. and Morgan Stanley, as underwriters for a secondary share sale in Aramco, which could raise as much as $20 billion in one of the largest stock offerings in recent years, Bloomberg reports. Citigroup, Goldman Sachs and HSBC are reportedly already working on the sale.
💻 Tech Pact: Abu Dhabi-based Gulf Capital signed an agreement with Saudi Arabia’s Research, Development and Innovation Authority to invest $100 million in Saudi tech companies.
📃 Insurance Acquisition: Gulf Tamin, a consortium of U.S. corporate investors, acquired a 13.85% stake in Bahrain-traded Arab Insurance Group.
⛽ Gasfield Pause: Adnoc and BP have suspended talks to buy a $2 billion stake in Israel’s Leviathan offshore gas field because of “uncertainty created by the external environment.”
🌍 Power Circuit
Saudi Crown Prince Mohammed bin Salman traveled to the holy city of Medina on Wednesday after exchanging Ramadan greetings in Riyadh with the Grand Mufti of the kingdom, along with princes, scholars, ministers and citizens.
Sheikh Mohamed bin Zayed, President of the UAE, received the rulers, crown princes and senior officials from all seven emirates in Abu Dhabi on Wednesday in a royal gathering for Ramadan.
Sheikh Mohammed bin Rashid, Ruler of Dubai, issued a decree on Wednesday promoting the “Unified Digital Platform,” which is aimed at making it easier to establish tech companies in the emirate. He also shared a tribute on social media following the death of Emirati businessman Saeed Juma Al Naboodah, co-founder of the Saeed and Mohammed Al Naboodah Group and a former chairman of Dubai Chamber of Commerce and Industry.
Sheikh Maktoum bin Mohammed, First Deputy Ruler of Dubai and Minister of Finance of the UAE, led a meeting of the Dubai Securities and Exchange Higher Committee, where he is Chairman, and “reiterated Dubai’s ambition to establish itself as the epicenter of global finance.”
➿ On the Circuit
UAE Minister of State for Foreign Trade Thani Al Zeyoudi signed a deal with Hungarian Foreign Minister Peter Szijjarto on Wednesday for a $5.5 billion project to revitalize a Budapest neighborhood. Eagle Hills Properties, which is led by Emaar Properties’ Mohamed Alabbar, is the lead developer on the project.
Park Sang-Woo, South Korea’s Minister of Land, Infrastructure and Transport, signed a preliminary agreement on Wednesday with Mohamed Ali Al Shorafa, Chairman of the UAE’s Department of Municipalities and Transport, to facilitate collaboration in the fields of mobility and smart cities.
Palantir Co-founder and CEO Alex Karp said U.S. demand is driving its share price in an interview on Wednesday with CNBC.
Media fixer Michael Kassan is headed for a legal showdown with talent agency UTA over differing allegations about the use of a $950,000 “special expenses” fund and a dispute over whether he resigned or was fired as CEO earlier this month.
Pro golfer Rory McIlroy said Wednesday that he wants the “train to speed up” regarding the PGA Tour finalizing a deal with the PIF to reunify men’s professional golf amid falling TV ratings.
🎶 Culture Circuit
👩🍳 Top Chef: YouCater, Dubai’s new app aimed at the city’s wealthy residents, offers on-demand personal chefs, expert bartenders and catering from top restaurants.
📷 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.
