👋 Hello from the Middle East!

Today in The Daily Circuit, we’re looking at another potential IPO from International Holding. Co., a deal to calm the Red Sea, why Apollo is waiving fees and Franklin Templeton’s move to Riyadh. But first, the Gulf is becoming a gamers paradise. 

True Gamers is looking to up the ante on the business of video games in the Gulf. The UAE-based gaming lounge and arena developer announced plans today for a $280 million gaming island in the Al Seef area of Abu Dhabi, providing a first-of-its-kind destination for pros and hobbyists of Fortnite, Counter-Strike and League of Legends. 

The startup says it’s working with undisclosed investors for funding and discussions with developers are in the works. True Gamers envisages a gaming-themed hotel, eSports camps for kids and a dedicated residence for professional players to prepare for major tournaments with healthy food, personal space and gaming equipment. 

True Gamers was founded in 2019 and has 124 gaming halls in the UAE and Eastern Europe. Earlier this year, the company signed an agreement to open 150 clubs in Saudi Arabia with an investment of $45 million and a franchise deal with Saudi entrepreneur Nawaf Al-Bishri.

The demographics in the UAE and Saudi Arabia are supportive of the gaming push, where people skew younger and the pastime is wildly popular. Nearly half of the people in the UAE are under 35 and in the kingdom, it’s 70%. Saudi Crown Prince Mohammed bin Salman, 38, is said to be a big Call of Duty fan. The Public Investment Fund, which he chairs, has earmarked $38 billion for an ambitious plan to attract 250 gaming companies and studios and create 39,000 video game-related jobs in the process, building its credentials in the e-arena with investments in the biggest players like Tencent, Nintendo, Activision Blizzard and Ubisoft.

TRADING SOON

Abu Dhabi’s largest listed company, International Holding Co. is planning to hold an IPO next year for its new 2PointZero subsidiary, IHC’s CEO Syed Basar Shuebis said in a Bloomberg interview, putting the firm’s value “north of 100 billion dirhams ($27 billion).” IHC consolidated existing and newly created firms earlier this year to form 2PointZero, which has interests ranging from financial services to mining. IHC is chaired by Sheikh Tahnoon bin Zayed, a brother of the UAE’s President and the country’s National Security Adviser. Mariam Almheiri, the UAE’s former Minister of Climate Change and Environment, was named as 2PointZero’s CEO.

GROWING EAST 

Abu Dhabi’s surveillance and space technology company Bayanat is planning to provide internet services in India under a joint venture with Mountain View, Calif.-based UAVOS, a developer and manufacturer of advanced unmanned systems. The new JV, called Mira Aerospace, will partner with VEDA Aeronautics, an Indian aerospace and defense company to deliver High Altitude Pseudo Satellites (HAPS). HAPS are a kind of high-flying drone and a relatively new competitor to Elon Musk’s Starlink satellites for providing telecom services. Bayanat is set to merge with Abu Dhabi’s Yahsat later this year, creating a $4 billion enterprise with Mubadala Investment Co., G42 and International Holding Co., its largest shareholders. Parallel shareholder meetings are set for April 25 to vote on the proposed merger.

Abu Dhabi Investment Authority: Pocket FM, an Indian audio streaming platform, is reportedly close to finalizing a new fundraising round, with ADIA participation, potentially valuing the company at $1.2 billion. 

Public Investment Fund: Republicans in the U.S. Congress delayed a motion to subpoena Jared Kushner, head of Affinity Partners, over his ties to the PIF, which seeded his private equity firm with $2 billion in 2021.  The CEO of PIF-backed developer Roshn Real Estate Co., David Grover, has left the firm, Bloomberg reports.

🚢 Safe Passage: China and Russia have received assurances from Yemen’s Houthi militants that their ships can sail through the Red Sea without being attacked, Bloomberg reports. The danger of Houthi missiles has increased insurance rates for passage through the Red Sea, leading many cargo lines to find alternative routes and cutting revenue for Egypt’s Suez Canal.

💰 Free Money: Private credit firms like Apollo, KKR and Carlyle are waiving fees for sought-after funds from the Gulf like Mubadala Investment Co. amid muted investor activity elsewhere, Bloomberg reports. 

🛫 Airport Swap: Saudia, the flag airline of Saudi Arabia, will gradually move out of Riyadh’s airport and focus on its primary hub in Jeddah, making room for the kingdom’s newest airline, Riyadh Air, Bloomberg reports.

🇹🇷 Trade Pact: The Gulf Cooperation Council signed an agreement with Turkey to start talks on a free-trade agreement, following trade pacts last year with South Korea and Pakistan.

🛒 Grocery IPO: LuLu Group International, which owns one of the Middle East’s largest supermarket chains, appointed Emirates NBD Capital, Abu Dhabi Commercial Bank, Citigroup and HSBC to manage a planned IPO this year that aims to raise $2 billion, Bloomberg reports.

🇸🇦 Saudi HQ: Franklin Templeton, the New York-based investment firm, received authorization to open a regional headquarters in Riyadh under Saudi Arabia’s plan to draw foreign companies to the kingdom with a 30-year exemption from corporate taxes.

🪟 Glass Maker: Saint Gobain, the French construction materials maker, laid the cornerstone on Wednesday for a $190 million glass factory in Egypt’s Al-Ain Al-Sokhna Industrial Zone.

🛞 Deluxe Autonomy: Mobileye, the Intel-owned Israeli maker of autonomous driving systems, signed a deal with Volkswagen Group to provide driving assistance software to VW luxury brands Audi, Bentley, Lamborghini and Porsche.

King Abdullah II of Jordan arrived on Thursday for an official visit to Abu Dhabi where he was met at Al Bateen Executive Airport by UAE President Mohamed bin Zayed.

Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, attended ADNOC’s Ramadan family gathering on Thursday at the Abu Dhabi Energy Centre.
Emir Sheikh Tamim bin Hamad Al Thani of Qatarwelcomed Kazakhstan’s Prime Minister Olzhas Bektenov to Lusail Palace on Wednesday, where they discussed ways to strengthen ties between their countries.

Dr. Sultan Al Jaber, the UAE Minister of Industry and Advanced Technology and Chairman of ADNOC who was President of last year’s COP28 climate conference, called for making more aid available to assist developing countries with energy transition from fossil fuels, speaking at the Copenhagen Climate Ministerial meeting on Thursday. “Climate finance must be made more available, accessible and affordable at every level,” Al Jaber said.

John Ireland was appointed CEO of Dubai-based Amanat Holdings, which invests in healthcare and education.

🐲 Making Magic: The world’s first “Dragon Ball” theme park will be built in Saudi Arabia by Qiddiya Investment Company. The 500,000 square meter park will feature iconic sites from the Japanese anime franchise, with five rides and more than 30 attractions, including a 70-meter high statue of magical dragon Shenron.