The Weekly Circuit
đź‘‹ Hello from the Middle East!
This week we’re looking at the UAE’s latest big play in life sciences, a gusher of Chinese investment into Saudi Arabia, Mubadala’s role in Silver Lake’s deal to take Endeavor private and an unexpected bump in Gulf VC activity. But first, the MENA region goes out-of-office ahead of a packed pre-summer events calendar.
As the Gulf takes a break next week for the Eid Al Fitr holiday, marking the conclusion of the month-long observance of Ramadan, investors are looking ahead to the end of April when business returns to high gear.
Dubai International, the world’s busiest international airport, has sent an advisory to passengers to help them navigate the holiday rush as DXB gears up for one of the busiest travel periods of the year. Schools are off for the next two weeks and flights are packed to destinations from London to Bali. While it’s a relatively long respite for expats and locals alike, the turnaround will be swift: expect the rest of April, May and June to be a sprint to pull off events and close deals before the summer months begin.
Energy is the big theme at the end of this month with some of the industry’s most influential leaders gathering in the UAE for parallel summits dedicated to renewable fuels and the global outlook for oil and gas. Abu Dhabi will also host its first DriftX event — a coming-out party of sorts for the smart and autonomous vehicles R&D hub it rolled out last year. The first race for Abu Dhabi’s new Autonomous Racing League will take place at the Yas Marina Circuit the same week.
In the last week of April, the World Economic Forum will gather for the first time outside of Davos since the Covid-19 pandemic for a special meeting in Riyadh as the kingdom looks to position itself as a global destination for investment. And at the start of next month, Gulf investment leaders will head to Los Angeles for the Milken Institute’s Global Conference. Slated to speak are Ahmed Saeed Al Calily, Chief Strategy and Risk Officer at Mubadala Investment Co. and Sarah Al Suhaimi, Chairwoman of the Board of the Saudi Tadawul Group.
Welcome to The Weekly Circuit. Read on for the stories, deals and players at the top of the news across the MENA business landscape. Please send comments and story tips to [email protected].
The Weekly Circuit is taking a break next week for the Eid Al Fitr holiday. We will be back on Apr. 17
HEALTH CONSCIOUS
ADQ combines pharmaceutical businesses to launch Arcera
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 Circuit’s Kelsey Warner reports.
Healthy ambition: 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.
The right medicine: 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.
Click here to read the full story.
LEAD INVESTOR
Saudi Arabia sees investment surge from China, according to Emirates NBD
China is emerging as Saudi Arabia’s most active foreign investor amid a flood of new projects aimed at turbocharging non-oil economic growth in the kingdom, The Circuit reports.
Cash injection: The world’s second-largest economy accounted for 58% of new business investments — primarily focused on automotive, metals and semiconductor investments — 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.
Playing catch-up: Saudi Arabia, the Arab world’s 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.
Click here to read the full story.
đź’˛ Sovereign Circuit
Mubadala: The Abu Dhabi sovereign wealth fund is among the backers of investment firm Silver Lake’s $13 billion agreement to take talent agency Endeavor Group private. U.S. shopping social network Flip raised $144 million in a Series C round with participation from Mubadala Capital, bringing the company’s pre-money valuation to $1 billion.
Public Investment Fund: Saudi Aramco awarded $7.7 billion in contracts to expand its Fadhili gas plant’s processing capacity, signing agreements with PIF-backed Nesma & Partners, South Korea’s Samsung Engineering & Construction and GS Engineering & Construction in the U.S. PIF-backed Emaar the Economic City appointed Abdulaziz Alnowaiser as its new CEO, effective May 1.. Alnowaiser was previously CEO of PIF-owned Tahakom Investments.
Abu Dhabi Investment Authority: Alternative asset manager DigitalBridge Group said that an ADIA subsidiary completed the acquisition of a 40% stake in its Landmark Dividend portfolio company. ADIA and India’s Kotak Alternative Investment Fund agreed to invest $240 million in Indian real estate group Prestige. An investors group led by private equity firm PAG, which includes ADIA and Mubadala, announced it would invest $8.3 billion for a 60% stake in Chinese property company’s Dalian Wanda’s mall unit.
International Holding Co.: Abu Dhabi ADX-listed fleet operator Easy Lease Motorcycle Rental, a subsidiary of IHC, has acquired a 60% stake in United Trans, a mobility solutions provider and a subsidiary of Alserkal Group of Companies. It did not disclose the value of the transaction.
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
đź’¸ Up and Up: Startups in the MENA region raised $254 million in March across 54 deals, up 186% from February, according to new data from Wamda.
🌾 Brazilian Terminal: Dubai-based DP World and Brazilian railway operator Rumo have formed a partnership to build a $500 million terminal for grain and fertilizer at Brazil’s Port of Santos.
🩺 Hospital IPO: Saudi Arabia’s Dr. Soliman Abdulkader Fakeeh Hospital in Jeddah received regulatory approval to sell a 21.5% stake in an IPO on the Tadawul stock exchange.
🏝️ Mansion Island: Jubail Island Investment Co. announced plans to build a $1.1 billion gated community on Abu Dhabi’s Jubail Island with a private beach, yacht pier and mansions selling for between $9 and $18 million.
🤖 AI Chips: Hailo, an Israeli maker of semiconductor chips for artificial intelligence applications, raised $120 million in a funding round with participation from investors including OurCrowd, Delek Motors, Poalim Equity and the Zisapel family.
đź—Ł Circuit Chatter
🗞️ Telegraph Saga: RedBird-IMI plans to hire The Raine Group and Robey Warshaw to consult on next steps amid government opposition to its purchase of the Telegraph newspaper, Sky News reports.
🚢 Port Bidders: A UAE company is competing with firms from China and Singapore to operate Iraq’s Grand Faw Port, which is expected to be commissioned in late 2025, an official from the Iraqi Transport Ministry said on Monday.
🎥 Big Production: ​​Shari Redstone is in exclusive talks with Larry Ellison’s production company Skydance, which counts RedBird Capital, Tencent and KKR as backers, for the sale of Paramount, The New York Times reports.
đź’¸ Crypto Platform: Deribit, a cryptocurrency derivatives exchange operating in the Netherlands, the U.K. and Panama, announced it will move its headquarters to Dubai and appoint Luuk Strijers as CEO.
đź’ˇStartup 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
Egyptian President Abdel-Fattah El-Sisi started a third six-year term after taking the oath of office in Parliament on Tuesday at Egypt’s new administrative capital east of Cairo.
Sheikh Mansour bin Zayed, the UAE Vice President and Chairman of the Presidential Court, hosted an Iftar banquet on Tuesday evening at Emirates Palace in Abu Dhabi attended by several ambassadors and employees of federal and local authorities.
Saudi Crown Prince Mohammed bin Salman will meet in the kingdom on Thursday with White House national security adviser Jake Sullivan to discuss a possible U.S.-Saudi defense treaty and relations with Israel.
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.
Sheikh Mohammed bin Rashid, UAE Prime Minister and Ruler of Dubai, attended the 28th Dubai World Cup of horse racing on Saturday at the Meydan Racecourse.
âžż On the Circuit
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.
Nick Philpott, co-founder of Zodia Markets, the London-based crypto firm backed by Standard Chartered Bank, is relocating to Abu Dhabi as part of a Middle East expansion.
Sheikh Faisal bin Qassim al-Thani, owner of Qatar’s Al-Faisal Holding Co., cut the ribbon to open Gold Souk Square, the new gold and jewelry market at City Center Doha.
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.
Nora Alsarhanhas been appointed Deputy CEO of the Saudi-backed venture capital fund SVC. She will continue in her role as Chief Investment Officer.
🎶 Culture Circuit
🍝 Mama Mia: Toto, an Italian fine-dining restaurant launched by Rafael Nadal and Cristiano Ronaldo, has opened a branch in Abu Dhabi’s Mamsha Al Saadiyat. Drawing inspiration from the Golden Age of Italian cinema, Toto serves up traditional Italian cuisine in a 1950s-inspired dining room. Leisure Quest Restaurants Management has been appointed to run the high-end establishment by UAE restaurant group Food Quest.
đź“· Photo of The Week
đź“… 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.
