The Daily Circuit
👋 Hello from the Middle East!
Today in The Daily Circuit, we’re looking at new progress for non-oil growth in the Gulf, a profusion of mangroves in Abu Dhabi, why Mumtalakat may sell a stake in McLaren and SVC’s fireside chat with General Atlantic’s Bill Ford. But first, another big life sciences play out of the UAE.
ADQ has launched a new healthcare holding company named Arcera that consolidates the Abu Dhabi sovereign wealth fund’s pharmaceutical interests in Switzerland, Turkey and Egypt, making it one of the MENA region’s largest life sciences businesses. The new company, based in Abu Dhabi, intends to double its revenue over the next five years through international acquisitions and partnerships, ADQ said in a statement on Monday.
Arcera’s portfolio will consist of 2,000 branded medicines, addressing illnesses in the areas of neurology, gastroenterology, cardiovascular, pain relief, rheumatology and infection. The holding company owns ADQ’s stakes in Switzerland’s Acino International, Turkey’s Birgi Mefar Group and Egypt’s Amoun Pharmaceutical Co.
Abu Dhabi has taken a forward-leaning stance on healthcare investments coming out of the Covid-19 pandemic and today aims to become a regional hub for life sciences — one of the hottest areas of investment that covers everything from genomics and pharmaceuticals to clinical trials and personalized medicine. ADQ, chaired by UAE National Security Advisor Sheikh Tahnoon bin Zayed, is spearheading a number of those efforts under its mandate to be the lead investor driving the UAE’s economic transformation from petro-state to a knowledge-based economy.
The formation of Arcera follows a familiar playbook: In January 2022 ADQ merged its healthcare subsidiaries with Alpha Dhabi’s Pure Health Medical Supplies to create PureHealth, the country’s largest healthcare provider. ADQ is planning to list the new entity, Bloomberg reports, as it did with Purehealth last December. The firm’s $1 billion listing surged 84% on its debut.
📰 Developing Stories
NON-OIL OUTLOOK
Non-oil economic growth appears strong in the Middle East amid diversification efforts by Saudi Arabia, the UAE and other states, helped by government support and reforms to attract private capital, according to the latest PwC Middle East Economy Watch. Oil prices are expected to drop this year amid supply and demand growth uncertainty. “Strong growth in the non-oil sector is expected to counterbalance these impacts,” said Richard Boxshall, Partner and Chief Economist, PwC Middle East. Inflation cooled in the GCC last year, with PwC composite data for the region averaging 2.6% and ending the year at 1.7% YoY, down from a post-Covid high of 4.3% in July 2022.
PROJECT MANGROVE
Abu Dhabi has planted 850,000 mangrove trees along the emirate’s coastal areas as part of its Ghars Al Emarat initiative to mark last year’s COP28 climate summit. The project committed to planting 10 mangroves for each of the 85,000 visitors to the two-week United Nations conference in December that took place at the Expo City Dubai. Mangroves are hardy shrub-like trees that form dense thickets and adapt to growing in coastal saline waters. They are a popular tourist attraction in Abu Dhabi, where kayaks, canoes and paddle boats are available for rental to let visitors explore mangrove wetlands that have become habitats for flamingos, crabs and turtles.
💲 Sovereign Circuit
Abu Dhabi Investment Authority: The sovereign wealth fund and India’s Kotak Alternative Investment Fund agreed to invest $240 million in Indian real estate group Prestige.
The Sovereign Fund of Egypt: The fund agreed to buy control of the company that owns Egypt’s Misr Pharmacies chain and expects to complete the deal by the third quarter, Daily News Egypt reports.
Mumtalakat: CYVN Holdings, an investment firm backed by Abu Dhabi, may buy a stake in British luxury carmaker McLaren, as part of a group led by Bahrain’s Mumtalakat sovereign wealth fund, Bloomberg reports.
↪↩ Closing Circuit
💻 Computer Credit: Emirates NBD Capital arranged a $500 million syndicated revolving credit facility for Lenovo, the Chinese-American laptop maker, as it tries to bolster business in the MENA region.
⛽ Gas Growth: Adnoc Gas said it plans to invest more than $13 billion until 2029 on domestic and international growth opportunities to expand LNG production capacity.
💼 Money Magnet: Brokerage firms at the Dubai Financial Market more than doubled new investor accounts to 26,596 during the first quarter of 2024, compared to the same period last year.
🗣 Circuit Chatter
📈 Growth Forecast: The UAE’s gross domestic product is expected to grow this year to 4.2% from 3.1% in 2023, according to a quarterly report by the Central Bank of the United Arab Emirates. The GDP forecast for 2025 is 5.2%.
🌙 Islamic Leasing: The Saudi office of Kuwait’s Kamko Invest signed a preliminary agreement with Paris-based Flexam Invest to help customers find Shariah-compliant leasing opportunities in Europe’s logistics and transportation sectors.
🛫 Tokyo Direct: Japan Airlines started a new daily flight between Tokyo and Qatar this week, the first non-stop route to the Middle East operated by a Japanese Airline.
💡 Startup Scout: Abu Dhabi’s Investopia program – led by UAE Minister of the Economy Abdullah bin Touq Al Marri – launched its new “Next50” initiative that draws on the expertise of top CEOs to identify the country’s most promising tech startups.
🌍 Power Circuit
Saudi Crown Prince Mohammed bin Salman will meet with White House national security adviser Jake Sullivan on Thursday in the kingdom.
UAE President Sheikh Mohamed bin Zayed received a phone call on Monday from King Abdullah II of Jordan in which the two leaders discussed trade and security issues.
➿ On the Circuit
Ali Syed, a Managing Director at Citigroup, has been hired by Lazard to cover sovereign wealth funds and pension funds in the Middle East, Asia and North America, Bloomberg reports.
Bill Ford, Chairman and CEO of U.S. growth equity fund General Atlantic, was hosted by Haifa Al-Moqbil, Head of Direct Investments at Saudi-backed venture capital fund SVC, for a fireside chat in Riyadh on exit strategies for late-stage companies.
🎶 Culture Circuit
🧳 Travel Bug: With Eid holidays expected to bring a full week’s break this year, many UAE citizens and residents will be seeking opportunities for a getaway. A growing number of countries are offering visa-free entry as a result of efforts to create travel corridors from the Gulf. And it may not be long before Europe’s 29-country “Schengen Area” is added to the list, with the GCC in negotiations to secure a visa waiver for citizens of the UAE, Saudi Arabia, Qatar, Kuwait, Bahrain and Oman.
📅 Circuit Calendar
Apr. 9, New York: The Information’s Private Capital Conference. An exclusive event for subscribers to join Founder and CEO Jessica Lessin and The Information’s 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 Dhabi’s 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 5-8, Los Angeles: Milken Institute Global Conference. Politicians, financiers, media and philanthropists convene to discuss challenges across themes like innovation and technology, health and medical research, diversity and inclusion. The Beverly Hilton.
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 “A World Remade: Navigating the Year of Uncertainty.” 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.