The Daily Circuit
š Hello from the Middle East!
Today in The Daily Circuit, weāre looking at a $5 billion beach town in Kuwait, Flydubaiās inaugural flights to the Red Sea, “Golden Visas” for UAE companies and why Omanās banks are adopting the IBAN standard. But first, Chinaās investment surge in Saudi Arabia.
China is emerging as Saudi Arabiaās most active foreign investor amid a flood of new projects aimed at turbocharging non-oil economic growth in the kingdom. The worldās second-largest economy accounted for 58% of new business investments ā primarily focused on automotive, metals and semiconductor investments ā in Saudi Arabia in 2023, with $16.8 billion invested. That figure is up more than tenfold from $1.5 billion the previous year, according to new data from Dubai-based Emirates NBD.
Saudi Arabia, the Arab worldās largest economy, is still trailing its target of attracting $100 billion in foreign direct investment (FDI) by 2030 as de facto ruler Crown Prince Mohammed bin Salman looks to boost non-oil GDP and diversify the economy. But 2023 showed signs of progress: foreign investment into new business in Saudi Arabia more than doubled to $28.8 billion last year, according to Emirates NBD, surpassing the 2018 peak of $17.6 billion but shy of the 2008 record of $34.3 billion.
The influx in foreign capital comes as Gulf economies are increasingly turning East to China and India, one of the fastest growing economies, for opportunity. Saudi Arabia and the UAE have been invited to join the BRICS economic alliance, which analysts have predicted will increase Chinaās power and influence in the MENA region. Still, the U.S. was runner-up: pouring $2.7 billion into Saudi Arabia, mostly in software and IT, and a 238% increase over the previous year. The UAE came in third, its investments primarily focused on renewable energy.
This week the kingdomās Minister of Culture, Prince Badr bin Abdullah, visited Beijing, where he signed a flurry of agreements with his Chinese counterpart to boost collaboration. Museums, cultural heritage, theater, architecture and libraries are all on the table for greater exchange. āWith the support of the leadership of the two friendly countries, Saudi-Chinese cultural cooperation begins a new chapter,ā Prince Badr said on X.
š° Developing Stories
BEACHSCAPING IN KUWAIT
Kuwait is accelerating production to adorn its $5 billion Sabah Al Ahmad Sea City with a fine layer of beach sand by this summer. Laā Ala Al-Kuwait Real Estate Co. has contracted with CDE of Northern Island to process and wash the 1.4 million cubic meters of sand that are being applied to the megaprojectās 200 kilometers (125 miles) of artificial waterways, islands and coastline, according to Trade Arabia. Started in 2016 with a 25-year production schedule divided into 10 phases, Sabah Al Ahmad is one of the biggest real estate projects in the world and will eventually house 250,000 residents. The development is located on the Gulf about 90 kilometers south of Kuwait City, employing more than 3,000 contractors from 20 countries.
DOWNSTREAM DIVIDEND
Borouge, the UAEās biggest chemical producer, is eyeing global expansion and entering the āfeasibility stageā of a new opportunity in the Asia Pacific region, according to Chairman Dr. Sultan Al Jaber. The company reported on Thursday that its shareholders approved a $650 million dividend for 2023 and confirmed its intention to pay a total dividend of $1.3 billion for 2024 “Borouge is pursuing accelerated growth domestically and internationally,ā Al Jaber, who is also Group CEO of ADNOC, said. The ADNOC petrochemicals joint venture, which counts Austriaās Borealis AG as the other major shareholder, also provided an update on its Borouge 4 project. The Ruwais facility in western Abu Dhabi, which is now 60% complete, is expected to boost Borougeās production capacity by 1.4 million tons per year and its revenue from $1.5 billion to $1.9 billion.
š² Sovereign Circuit
Public Investment Fund: Red Sea Global, a developer and subsidiary of the PIF, is getting ready to welcome Flydubai, which will carry the first international arrivals to the Red Sea International Airport, the main hub serving the many beach resort hotels being built along the coast. The Dubai carrier will add direct routes next month from the UAE to western Saudi Arabia, including Al Jouf Airport near the Jordanian border.
Mubadala: Brown University and Brazilās BTG Pactual are in advanced talks to invest in Fortress Investment Group alongside Mubadala Investment Co. as part of the Abu Dhabi sovereign wealth fundās acquisition of a majority stake in the alternative asset manager, Bloomberg reports.
Abu Dhabi Fund for Development: From 2020 through 2023, the Abu Dhabi Exports Office, a unit of the ADFD, has financed AED3.2 billion ($870 million) worth of projects to exporters and foreign buyers to increase the presence of UAE-made goods internationally, according to the development fundās annual report published this week.
ADQ: Purehealth, which counts ADQ as its largest shareholder, has launched student and graduate trainee programs for UAE Nationals with the aim of supporting Emiratization targets for the country’s healthcare sector.
āŖā© Closing Circuit
š Door to Door: Dubaiās Aviterra signed a deal with Netherlands-based PAL-V to buy 1,000 flying cars, priced at $799,000 apiece, which can both fly and drive to offer taxi customers door-to-door service.
š° New Funds: Egypt-based edtech startup Sprints.ai has secured $3 million to finance expansion. The round was led by Disruptech Ventures, with participation from EdVentures and CFYE, among others.
š Cyber Sentry: Coro, an Israeli cybersecurity startup focused on small and medium-sized businesses, raised $100 million in a Series D funding round led by One Peak Partners.
š Threat Detector: Zafran, an Israeli startup that identifies network threats, raised $25 million in a Series A funding round led by Sequoia Capital and Cyberstarts, as well as $5 million in a previously unannounced seed round.
š Plugging In: The UAE may develop data centers with a capacity of up to 1,000 megawatts in Kenya amid a push to build technology infrastructure in Africa.
Ā š Online Trucks: C2A Security, an Israeli startup that protects computer systems built into vehicles, signed a deal to equip Daimler Trucks with its EVSec platform to comply with European regulations. Financial terms were not disclosed.
š£ Circuit Chatter
šŖŖ Licensed to Sell: The UAE is considering a proposal that would enable foreign companies to obtain operating licenses for periods of five years and 10 years as a business stimulus.
š± Payment Standard: Omanās central bank will introduce the use of IBAN codes to manage consumer payments, aligning the country with international standards to ease transactions and fight money laundering.
āļø Green Finance: Saudi Arabia may sell green bonds for the first time as part of its new Green Finance Framework aimed at reducing carbon emissions and reaching net zero by 2060.
š Power Circuit
U.S. President Joe Biden said Arab countries including Saudi Arabia were prepared to āfully recognize Israelā at a campaign fundraising event at Radio City Music Hall in New York on Thursday, that was attended by his Democratic predecessors Barack Obama and Bill Clinton.
Sheikh Khalid bin Mohammed, Crown Prince of Abu Dhabi and Chairman of its Executive Council, approved the emirateās tourism strategy that aims to raise the sectorās contribution to non-oil GDP to $24.5 billion and generate 178,000 jobs by 2030.
Sheikh Abdullah bin Zayed, the UAE Minister of Foreign Affairs met in Rome with Italian Foreign Minister Antonio Tajani, Minister of Foreign Affairs of the Italian Republic, where they discussed cooperation in trade, energy and investment.
āæ On the Circuit
Sam Bankman-Fried, the convicted FTX crypto founder, was sentenced in New York on Thursday to 25 years in prison for one of the biggest financial fraud cases in history.
David Rubenstein, co-founder and former CEO of The Carlyle Group, purchased The Baltimore Orioles on Wednesday after getting unanimous approval from Major League Baseball.
Mohammed Aoun, who was suspended as Libyaās Minister of Oil and Gas as part of a corruption probe, denied wrongdoing in a statement issued on Wednesday. Aoun was replaced on Tuesday by his deputy, Khalifa Abdul Sadiq.
š¶ Culture Circuit
š§± Steel Sculptor: Qatar paid tribute to Richard Serra, the American artist whose outdoor steel sculptures have become cultural landmarks around the world, after his death on Tuesday at 85. Among Serraās works in Qatar are ā7,ā located at the Museum of Islamic Art Park and āEast-West/West-Eastā in the Brouq Nature Reserve. āHis towering works standing proud in Qatarās landscape are a testament to his lasting legacy and genius,ā Sheikha Al Mayassa bint Hamad, Chairperson of Qatar Museums, said in a statement. Serra;s 1986 work, āOutdoor Circuit,ā is on permanent display at the Israel Museumās Billy Rose Art Garden in Jerusalem.
š Circuit Calendar
Daniel Kahneman, the Israeli-American psychologist who shared the 2002 Nobel Prize in economics for his research into how people make decisions amid uncertainty, died on Wednesday at 90.
Apr. 9, New York. The Informationās Private Capital Conference. An exclusive event for subscribers to join Founder and CEO Jessica Lessin and The Informationās reporters to discuss the future of technology and investing. New York Stock Exchange.
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. 25-26, Abu Dhabi, UAE: DriftX. An event for smart, autonomous and sustainable urban mobility across air, land, and sea organized in partnership with the Abu Dhabi Investment Office, Abu Dhabiās Smart and Autonomous Vehicles Industry (SAVI) cluster and Bayanat. Yas Marina.
Apr. 28-29, Riyadh, Saudi Arabia: World Economic Forum Special Meeting. A gathering of investors, politicians and experts on topics of collaboration, growth and energy for economic development. TBC.
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.
May 13-15, Abu Dhabi, UAE: Abu Dhabi Global Healthcare Week. A conference focusing on investments, and innovation to solve the most important global health challenges. Abu Dhabi National Exhibition Center and Abu Dhabi City.
May. 14-16, Doha, Qatar: Qatar Economic Forum, Powered by Bloomberg. A news-driven event dedicated to global business and investment. This year’s theme is āA World Remade: Navigating the Year of Uncertainty.ā Request your invite here. Fairmont & Raffles, Doha.
May 29-31, Marrakech, Morocco: GITEX Africa. The second edition of the biggest tech and startup gathering in Africa. Place Bab Jdid.