The Daily Circuit
š Hello from the Middle East!
Today in The Daily Circuit, weāre looking at new plans for Riyadh Air, the EUās $8.1 billion financial aid package for Egypt, PureHealthās banner year and comedian Ramy Youssefās HBO stand-up sequel. But first, expanding horizons for UAE real estate firms.
UAE property developers and asset owners are now eyeing international markets amid tourism and property booms at home. Some of the UAEās biggest names in real estate and hospitality announced consolidation plans over the weekend to support growth plans beyond the Gulf.
Two of Dubaiās largest property developers, Nakheel and Meydan, will be merged and operate as a unit of Dubai Holding, Sheikh Mohammed bin Rashid, the Ruler of Dubai said. The deal is aimed at creating a āmore financially efficient entity,ā that will own assets worth āhundreds of billionsā of dollars and can compete both regionally and internationally, Sheikh Mohammed said in a statement published Saturday by the UAEās state news agency WAM.
The move comes amid surging real estate demand and rising home prices after an influx into Dubai of wealthy Russians and financiers. Under the new plan, the boards of both Nakheel and Meydan will be abolished and the companies will report to Sheikh Ahmed bin Saeed, who is chairman of Dubai Holding and a founder of the UAEās flag-carrier Emirates.
Meanwhile, in Abu Dhabi, two of the emirateās biggest investment groups announced a strategic partnership to combine hotel assets. Alpha Dhabi Holding, a unit of Sheikh Tahnoon bin Zayed’s International Holding Co., and National Corporation for Tourism and Hotels (NCTH) have completed a strategic transaction that transfers three of Alpha Dhabiās hotel businesses to the NCTH portfolio.
Under the deal, which is still subject to regulatory approvals, Abu Dhabi luxury resorts St. Regis Saadiyat and Al Wathba Luxury Collection, as well as the ultra-luxury Cheval Blanc in the Maldives and the soon-to-open Cheval Blanc Seychelles will join NCTHās growing portfolio of hotel assets. āBy uniting our hotel brands under the NCTH umbrella, we have substantial direct and indirect investment both here in the UAE and internationally that will serve as an engine of growth,ā said Hamad Al Ameri, CEO of Alpha Dhabi Holding.
š° Developing Stories
Aligning airlines
As Saudi Arabiaās new Riyadh Air prepares to start flying next year, the kingdomās venerable carrier Saudia is being repositioned to fit into a new blueprint for boosting business and tourism. The Saudi Public Investment Fund has started talks to acquire Jeddah-based Saudia, which flies to 90 destinations, in a step that may lead to the airlineās privatization, Bloomberg reports. The two airlines will work in tandem to pursue the kingdomās twin goals of bolstering access to Saudi Arabia as a regional finance hub while also turning it into a magnet for foreign tourists. Under the plan, Riyadh Air pursues the business crowd and Saudia will focus more on the market for religious pilgrimages to the holy cities of Mecca and Medina, Bloomberg says.
EU AID
First came the UAE and the International Monetary Fund to bail out Egyptās debt-riddled economy. Now the European Union is stepping in, providing a 7.4 billion-euro ($8.1 billion) funding package for the North African country. This time, however, the money is being directed toward trying to stop Egyptian migrants from reaching Europe. It is also designed to strengthen cooperation in renewable energy, trade and security. Such deals are “the best way to address migratory flows,” said Italian Prime Minister Giorgia Meloni, who traveled to Cairo on Sunday with EU Commission President Ursula von der Leyen and other European leaders to announce the financing package.
š² Sovereign Circuit
ADQ: PureHealth, the UAEās largest healthcare company, reported a 31% jump in revenue last year and a 17% increase in total assets to $7.7 billion. The company, which is owned by Abu Dhabi sovereign wealth fund ADQ and IHC, a holding company run by Sheikh Tahnoon bin Zayed, acquired a minority stake last year in Nashville, Tenn.-based Ardent Health Services.
Public Investment Fund: Golf pros Jordan Spieth and Adam Scott are ābeing encouragedā by the player-directors on the PGA board to meet with PIF Governor Yasir Al-Rumayyan, Spieth said, amid ongoing negotiations with Saudi-backed LIV Golf on a potential merger deal.Ā
š£ Circuit Chatter
š Power Supply: Iraq expects to complete a connection to Kuwaitās power grid that would supply 500 MW of electricity and reduce its reliance on getting supplied from Iran.
š Blockchain Security: Genesis Technologies, a blockchain startup affiliated with Qatar University, announced a strategic partnership with CPLabs, South Koreaās leading digital assets firm, focused on security against cyber threats.
š Internet Detour: Hong Kongās HGC Global Communications and South Africa-based Seacom are rerouting Red Sea internet traffic after reports that underwater cables were cut in Houthi attacks.
š« Fresher Fleet: Qatar Airways is in early talks with Boeing and Airbus to order as many as 150 widebody jets and renew its fleet of aging long-distance aircraft, Bloomberg reports.
āŖā© Closing Circuit
š¶ African Aid: Morocco will receive a 100 million-euro ($109 million) loan from the African Development Bank to fund new investment projects and sustainable infrastructure initiatives.
šµ Revolving Credit: The UAEās Bank of Sharjah acted as the mandated lead arranger of an $800 million four-year, revolving credit facility for Bahrain-based Investcorp Capital.
š¢ Declining Interest: The Egyptian government plans to reduce its interest to less than 20% by early 2025 in three real estate firms that trade on the EGX exchange, Asharq Business reports.
š¤ AI Boost: Nvidia is in talks to acquire Run:ai, an Israeli software startup that makes artificial intelligence applications run more efficiently, for as much as $1 billion, Calcalist reports.
ā” Renewable Power: Doral Group, an Israeli builder of renewable energy systems, reported a preliminary agreement for its U.S. subsidiary to receive a $400 million investment from an unidentified third party.
š Power Circuit
Sheikh Tamim bin Hamad Al Thani, Emir of Qatar, met with the UAEās top diplomat, Sheikh Abdullah bin Zayed, Minister of Foreign Affairs, at Lusail Palace on Sunday, with Sheikh Mohammed bin Abdurrahman bin Jassim Al Thani, Prime Minister and Minister of Foreign Affairs of Qatar also present.
UAE President Sheikh Mohamed bin Zayed met with Erin Gore, CEO of World Central Kitchen on Saturday at Qasr Al Watan in Abu Dhabi. On Sunday he participated in a mass iftar along with crowds of Muslims at the Sheikh Zayed Grand Mosque in Abu Dhabi. He broke his fast alongside Sheikh Mansour bin Zayed, UAE Vice President, Deputy Prime Minister and Chairman of the Presidential Court, as well as Sheikh Khaled bin Zayed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council and Sheikh Theyab bin Zayed, Deputy Chairman of the Presidential Court for Development Affairs and Martyrsā Families.
Sheikh Hamdanbin Mohammed, Crown Prince of Dubai, chaired the first meeting of The Executive Council of Dubai, following its recent reconstitution. He approved the launch of the Government of Dubaiās new logo, which will be implemented by entities over the next six months, and the allocation of AED40 billion ($10.9 billion) for a portfolio of public-private partnerships over the next three years.
āæ On the Circuit
Jared Kushner, head of Affinity Partners which is backed by the PIF, is in advanced discussions on three property development investments in the Balkans that could surpass $1 billion, he told Bloomberg in an interview.
Eliezer Fishman, who was one of Israelās wealthiest businessmen and publisher of the Hebrew financial daily Globes before declaring bankruptcy in 2017, has died at 80.
š¶ Culture Circuit
š¤ New Act: Ramy Youssefās comedy special will hit screens in the Middle East at the same time as in the U.S., MENA streaming service OSN said. āMore Feelingsā will be available on OSN+ on March 23 simultaneously with its U.S. release on HBO Max. The new stand-up performance will be the second on HBO for the Egyptian-American comedian who created and starred in the sitcom āRamy,ā following his original āFeelingsā show in 2019.
š Ahead on The Circuit
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.
