The Weekly Circuit
š Hello from the Middle East!
This week weāre looking at efforts to create a $40 billion AI fund backed by Gulf and Silicon Valley investors, Saudi Arabiaās launch site for space tourism, Dubaiās reduced stake in Nasdaq and Abu Dhabiās venture into the U.S. renewables market. But first, Riyadh-based Almarai invests in dairy products and Saudi food security.
While Saudi Arabia is the worldās largest exporter of oil, it depends on imports for some 80% of its food supply. As part of the kingdomās efforts to develop agricultural industries and boost food security, its biggest dairy company, Almarai, announced a $4.8 billion investment program to diversify production over the next five years and expand the business.
Riyadh-based Almarai, which is 16%-owned by Saudi Arabiaās Public Investment Fund, will put money into its core dairy, juice and baked-good products while setting aside funds for technology development. It also plans to strengthen supply chain logistics, expand poultry sales and introduce new products, the company said in a report to the stock exchange on Monday.
Almarai said its strategy is aligned with Saudi Arabiaās Vision 2030 plan to diversify the economy away from oil by investing in other industries and selling state assets. Saudi Arabiaās largest food products company Savola said last month it planned to distribute its entire 35% stake in Almarai to its eligible shareholders.
Meanwhile, Saudi Arabia plans to join the UAE in forming a mega-fund for investments in artificial intelligence. The kingdom aims to create a $40 billion fund to pour money into the fast-growing technology, possibly in connection with California venture capital giant Andreessen Horowitz, The New York Times reports. Marc Andreessen reportedly hosted Public Investment Fund Governor Yasir al-Rumayyan in Las Vegas for the Super Bowl as the fund mulls opening an office in Riyadh, according to the Times.
The kingdom is planning to provide a launch site for space tourism company HALO Space to test a prototype capsule on a flight nearly 20 miles above the Earthās surface. The Madrid-headquartered company plans to embark on its sixth test flight from Saudi Arabia in June following regulatory approval, HALO said in a statement on Monday. Founded in 2021 through consulting firm Arthur D. Littleās Breakthrough Incubator program, HALO is aiming to offer commercial flights in 2026, starting at $164,000 with plans to build a permanent base in Saudi Arabia.
Borse Dubai, the Nasdaqās largest shareholder, said it will sell a $1.6 billion stake in the New York stock market. That will leave the owner of the Dubai Financial Market with a 10.8% interest in Nasdaq, down from 15.5%, and make it the second largest shareholder behind U.S. private equity firm Thoma Bravo. āāBorse Dubai said it will sell nearly 27 million Nasdaq shares at $59 each, a discount of more than 5% to the stock’s closing price on Tuesday.
WEST WIND
Masdar to buy 50% stake in California renewables firm Terra-Gen
Abu Dhabiās Masdar bought a 50% stake in U.S. renewables company Terra-Gen from Energy Capital Partners, the biggest push yet into a crucial market for its ambitious growth plans, The Circuitās Kelsey Warner reports.
Green ambition: The move announced on Tuesday comes as Masdar looks to develop or acquire an energy portfolio of at least 100 GW capacity by 2030, with the U.S. a key to achieving that target.
Fully charged: The worldās biggest economy is the second-largest renewable energy market. Solar power, wind and other alternatives to fossil fuels are on track to become the leading sources for electricity by the mid-2030s, according to government figures.
Click here to read the full story.
ALIGNING AIRLINES
Saudia airline being repositioned for kingdomās tourism push
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 Circuitās Jonathan Ferziger reports.
Preparing for take-off: The 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.
On the map: 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.
Click here to read the full story.
š² Sovereign Circuit
Mubadala: Apollo Global Management created a new private credit fund that will invest money from a Mubadala affiliate and other institutional investors for no fee during the first year and waive half of the fees the following year, Bloomberg reports. Moove, the Abu Dhabi-based African startup that finances vehicle purchases for drivers of app-based ride-hailing services, raised $100 million in a Series B funding round, led by Uber, with participation from Mubadala.
Public Investment Fund: Saudi Arabiaās PIF-backed ACWA Power said it will refinance $580 million of debt for Bahrain’s Al Dur Phase II water and power project. Golf pros Jordan Speith 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.
Abu Dhabi Investment Authority: ADIA is eyeing discounted stakes in funds managed by Hong Kong-based PAG as U.S. investors look to cut their China exposure, the Financial Times reports. PAG operates as an alternative investment firm managing more than $55 billion with investors that include state pension funds in California, Texas, Florida and Iowa. The Blackstone Group acquired a minority stake in 2018.
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.
Oman Investment Authority: The sovereign wealth fund is planning an IPO for Asyad Group, the government-owned logistics company, as part of its program to divest from state enterprises.
š£ Circuit Chatter
šļø Free Zone: Kuwait has finalized plans for the Nuwaiseeb Free Zone, which aims to attract 500 companies to the countryās southern region. The project will house 50 factories, along with logistics warehouses and storage facilities. It will feature three hotels, two investment complexes, four restaurant hubs and two medical centers.
š IPO Access: The Abu Dhabi Securities Exchange (ADX) has started to collaborate with Eureeca, a global investment platform that matches investors with early-stage companies and aims to bolster access to ADX IPOs.
š Pirate Taxis: Saudi Arabia is cracking down on the hordes of unlicensed taxi drivers who overcharge passengers they pick up at the kingdomās airports, posting warnings that fines are rising to 5,000 riyals ($1,333).
š±Google Pay: Moroccoās CIH Bank is partnering with Google to let its clients use Google Pay and enable MasterCard cardholders to use contactless payment terminals.
ā½ LNG Supply: ADNOC signed a 15-year deal to supply 1 million metric tons of liquified natural gas annually to Germany through its state-owned company, Security Energy for Europe (SEFE).
š¢ Property Contest: Competition is growing among Dubai developers to buy more plots of land as the supply of prime real estate dwindles and prices keep rising, the Khaleej Times reports. Also this week, Aldar, Abu Dhabiās largest listed developer, sold the emirateās most expensive apartment for $37 million as demand for luxury property continues to rise in the UAE capital.
š¹ļø E-Sports Consulting: KALM, a consulting firm for e-sports, opened a global headquarters in Abu Dhabi with support from Access Abu Dhabi and the Abu Dhabi Investment Office.
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¢ Port Logistics: The Saudi Ports Authority, known as Mawani, and MEDLOG, the logistics arm of Swiss-based Mediterranean Shipping Co., signed an agreement to develop a $47 million logistics zone at Jeddah Islamic Port.
š Record Holdings: Islamic banking assets in the UAE surpassed $190 billion at the end of 2023 for the first time ever, an 11% increase over the previous year.
šŖšŗ European Funding: Neureality, an Israeli chipmaking startup, raised $20 million in a funding round that included participation from the EUās European Innovation Council.
š» Data Sorter: Euno, an Israeli startup that helps companies sort out large quantities of data, raised $6.25 million in a seed funding round led by 10D.
šMarket Maker: Saudi Arabiaās Tadawull stock exchange approved Merrill Lynchās bid to be a market maker for Aramco shares, making it the first foreign bank to provide such services.
šŖš¬ Egypt Aid: The World Bank said it will provide Egypt with more than $6 billion over the next three years to support its debt-ridden economy, joining the IMF and EU in offering aid packages.
š¶ African Loan: Morocco will receive a 100 million-euro ($109 million) loan from the African Development Bank to fund new investment projects and sustainable infrastructure initiatives.
šø 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¤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.
š Power Circuit
Sheikh Nahyan bin Mubarak, UAE Minister of Tolerance and Coexistence and Chairman of the Sandooq Al Watan philanthropic foundation, hailed the establishment of the organizationās UAE National Incubator Network, which is aimed at promoting the growth of startups across the country. The Minister welcomed the Mohammed Bin Rashid Innovation Fund as a founding member of the network.
Sheikh Mohamed bin Zayed, UAE President, held a phone call on Tuesday with Dr. Frank-Walter Steinmeier, President of the Federal Republic of Germany. They discussed cooperation between the two countries and strengthening of ties across sectors, as well as initiatives to speed up delivery of relief to the Gaza Strip. Sheikh Mohamed met with JoĆ£o Manuel GonƧalves LourenƧo, President of Angola at Qasr Al Bateen in Abu Dhabi on Monday. He also announced a new allowance for all UAE mosque staff, equivalent to 50% of their monthly salary.
Sheikh Mohammed bin Rashid, UAE Prime Minister and Ruler of Dubai, chaired the UAE Cabinet meeting on Monday at Qasr Al Watan in Abu Dhabi, focusing on the impact of labor market reforms and the industrial sector. Also in attendance were Sheikh Mansour bin Zayed, Vice President and Chairman of the Presidential Court; Sheikh Maktoum bin Mohammed, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance and Sheikh Saif bin Zayed, Deputy Prime Minister and Minister of the Interior.
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, announced that a new university will soon be established in the emirate, backed by a $109 million donation from Sobha Realty.
āæ On the Circuit
Dr. Sultan Al Jaber, the UAE Minister of Industry and Advanced Technology and Chairman of ADNOC who was President of last yearās COP28 climate conference, warned about the acceleration of global warming, responding to the release of the State of the Global Climate Report 2023 by the World Meteorological Organization. āWe have no time to spare,ā he said in a statement on Tuesday. āWe need global action that responds to the science.ā
Waleed Noor was hired by Monroe Capital as Managing Director and Head of Middle East Distribution as the private credit firm sets up a regional office in Abu Dhabi.
Jessica Lessin, Founder and CEO of The Information, will host Ibrahim Ajami, Head of Venture at Mubadala Capital, for the publicationās first Private Capital Conference at the New York Stock Exchange on April 9. Ajami will be joined by others like Lauren Garcia Belmonte of Morgan Stanley; Michael Gronager of Chainalysis and Jannick Malling of Public.
Philip Bahoshy, Founder of venture capital data platform MAGNiTT, said startup founders in MENA are increasingly looking to Indonesia and Turkey for expansion as the gap widens between well-funded ecosystems like Saudi Arabia and the UAE and the rest of the region, in an op-ed for The Realistic Optimist blog.
Saudi Aramco Chief Executive Officer Amin Nasser said the global energy transition is āvisibly failing on most frontsā because consumers still want cheap, reliable fuels. Nasser spoke on Monday during a panel discussion at the CERAWeek energy conference in Houston, Texas.
Dan Loeb, head of activist hedge fund Third Point, has been quietly bankrolling the patent lawsuits in Europe from computer chip design company, R2 Semiconductor, in which it holds a majority stake, against tech giants like Intel, Dell and Amazon Web Services amid the ongoing chip wars, The New York Times DealBook reports.
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¦ Land of Giants: Construction of the Natural History Museum Abu Dhabi is 65% done and on track to be completed by the end of 2025, the capitalās Department of Culture and Tourism said on Wednesday. Located in the Saadiyat Cultural District, the museum will feature exhibits framed through an Arabian lens, with the fauna, flora and geological history of the region central to the planned journey for visitors. A focal point of the collection will be the world-famous skeleton of āStanā, the Tyrannosaurus rex.
šļø New Beaches: Yas Island, home to some of the UAEās biggest tourism draws like the F1 racing circuit, SeaWorld Abu Dhabi, Warner Bros. World and a Ferrari-themed amusement park, is expanding its beachfront under new plans from Miral. The Abu Dhabi developer will add nearly a half mile of new beaches to Yas Bay Waterfront.
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 Feelings” 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 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.