The Daily Circuit
👋 Hello from the Middle East!
Today in The Daily Circuit, we’re looking at the opening day of the Green Hydrogen Summit in Abu Dhabi, the coming IPO for Spinneys in Dubai, Bank of China’s bridge loan for Saudi Arabia’s ACWA Power and Kuwait’s new prime minister. But first, Microsoft leans in to the UAE’s push for AI prominence.
Microsoft will invest $1.5 billion in Abu Dhabi artificial intelligence firm G42, providing one of the biggest inbound investments from an outside player yet and lending credibility to the UAE’s ambitions to become a world-leading technology hub. The deal gives Microsoft a minority stake in G42 and offers Vice-Chair and President Brad Smith a seat on its board.
“Microsoft’s investment in G42 marks a pivotal moment in our company’s journey of growth and innovation, signifying a strategic alignment of vision and execution between the two organizations,” Sheikh Tahnoon bin Zayed, Chairman of G42, said in a statement. Sheikh Tahnoon, who also serves as UAE National Security Advisor and Chairman of sovereign wealth funds ADQ and Abu Dhabi Investment Authority, was photographed at a signing between Smith and G42 CEO Peng Xiao.
The commercial partnership is “backed by assurances to both governments” for secure AI development, the companies said, a signal to critics that the U.S.-UAE technology partnership is strong and that G42 has severed ties to China. U.S. Commerce Secretary Gina Raimondo, traveled twice to the UAE to talk about security arrangements for the Microsoft deal and other partnerships, The New York Times reports.
The firms also agreed to a further $1 billion development fund to support training an AI workforce and talent pool in the UAE and for the wider region. “Our two companies will work together not only in the UAE, but to bring AI and digital infrastructure and services to underserved nations,” Smith said. “We will combine world-class technology with world-leading standards for safe, trusted and responsible AI, in close coordination with the governments of both the UAE and the United States.”
Last month, G42 alongside Abu Dhabi’s sovereign wealth fund Mubadala, launched an AI investment company called MGX with the ambition of building up $100 billion in assets under management within a few years. The fund is reportedly now in early talks with Sam Altman, whose OpenAI is backed by Microsoft, to invest in his multi-trillion-dollar chip venture.
📰 Developing Stories
HYDROGEN HOPEFUL
Abu Dhabi has convened energy leaders from around the globe today under unusually cloudy skies for the Green Hydrogen Summit, as the UAE capital aims to establish itself as a leader in the alternative fuel market. The conference also serves to highlight the world energy transition four months after the UAE hosted the UN climate meeting COP28. Swiss explorer and clean technology pioneer Bertrand Piccard opened the summit, nearly a decade after departing from Abu Dhabi on a round-the-world journey in a solar-powered aircraft. Piccard’s keynote this morning focused on his plans to co-pilot another flight around the globe, this time powered by hydrogen. Former U.K. Prime Minister Boris Johnson, sporting a lime green tie, spoke of his country’s growing relationship with the UAE to develop alternative energies. He highlighted the Dogger Bank South Project in the North Sea, one of the largest planned offshore wind farms in the world, which is partly owned by Abu Dhabi’s Masdar and set to power 3 million homes in the U.K. in its first phase in 2029.
SHOPPING FOR SHARES
UAE supermarket chain Spinneys said today it will sell 25% of its shares in an IPO on the Dubai Financial Market. The company, which also operates in Oman and plans to enter the Saudi market, expects to start trading in May after a subscription period for investors that ends April 30. The announcement follows reports that Lulu Group International, one of the biggest retail operators in the Middle East, is planning a dual listing later this year on the Riyadh and Abu Dhabi exchanges. Rothschild & Co. Middle East is the independent financial adviser for Spinneys, while Emirates NBD Capital, Merrill Lynch and HSBC Bank Middle East are joint global co-ordinators and bookrunners.
💲 Sovereign Circuit
ADQ: Abu Dhabi’s TAQA, the energy and water business owned by ADQ, is in talks with Spain’s Criteria over a potential takeover of Spanish energy company Naturgy, Reuters reports, citing Madrid’s Cinco Dias.
Public Investment Fund: PIF-backed ROSHN Group signed a $57 million contract with Saudi developer Dar Al Arkan to build luxury villas in Riyadh’s Sedra residential project.
Kuwait Investment Authority: CVC Capital Partners, a Luxembourg-based private equity firm that is backed by the KIA, is planning an IPO in Amsterdam that aims to raise as much as 1.5 billion euros ($1.6 billion).
↪↩ Closing Circuit
☀️ Chinese Loan: Saudi Arabia’s ACWA Power received an equity bridge loan from Bank of China worth $80 million to finance its solar power plant in Uzbekistan, the first loan agreement in China’s currency between a Chinese bank and a Saudi enterprise.
🏦 Bank Debt: Egypt’s Qalaa Holdings said it has settled close to $270 million in debt with five banks, including Banque Misr, Banque du Caire, Arab African International Bank, Al Ahli Bank of Kuwait and Arab International Bank.
🛫 Airport Handler: Saudi Ground Services signed a five-year contract worth $533 million with budget airline flynas to handle baggage and other ground services for flights in airports across the kingdom.
🤑 Menlo Money: Andreessen Horowitz closed on $7.2 billion for its newest set of funds, beating a $6.9 billion fundraising target, Axios reports.
🚚 Paying for Freight: United International Transportation, which operates the Budget Saudi Arabia car rental agency, said it will acquire a 70% stake in the UAE freight forwarder Overseas Development for $3.6 million.
💰 Capital Gains: Triton Liquid, a new digital assets hedge fund started by American entrepreneur Chris Keshian, has set up in Abu Dhabi with a target of raising $50 million in additional capital this year. It currently has $43 million in assets under management.
🤖 Analyst Bot: Bridgewise, an Israeli startup that uses artificial intelligence to provide investment research, raised $21 million in a Series A funding round led by Zurich-based SIX Group.
🎁 Buying Presents: Snappy, an Israeli startup that runs a gift-shopping platform, raised $25 million in a Series D funding round led by Qumra Capital.
🗣 Circuit Chatter
🚦AI Traffic: The Abu Dhabi government’s Integrated Transport Centre signed a preliminary agreement with LocationMind, a Japanese data analysis company, to collaborate on using artificial intelligence to analyze road congestion, predict accidents and improve traffic signals.
🏗️ City Builders: The workforce building Saudi Arabia’s NEOM mega-project is expected to surpass 200,000 in 2025 as the pace of construction accelerates.
🏠 Rich Living: Sales of homes in Dubai worth $10 million or more rose 6% in the first quarter versus last year, according to property consultancy Knight Frank.
💻 Fresh Faces: Abu Dhabi startup ecosystem Hub71 has admitted 25 new startups from 11 different countries, bringing the total number of startups currently in Hub71’s programs to 223.
🌍 Power Circuit
Sheikh Ahmad Abdullah al-Sabah, Kuwait’s former Oil Minister and Finance Minister, was appointed as the country’s Prime Minister on Monday by Emir Sheikh Mishaal al-Sabah and asked to form a new government. He replaces Sheikh Mohammed Sabah al-Sabah, who resigned.
Sheikh Mansoor Bin Zayed, UAE Vice President, Deputy Prime Minister and Chairman of the Presidential Court, attended the fifth day of competitions on Monday of the Festival for Purebred Arabian Camel Racing at the Al Wathba Camel Race Track. He was joined by Sheikh Sultan bin Hamdan, Adviser to the UAE President and Chairman of the UAE Camel Racing Federation.
➿ On the Circuit
Abdulla bin Touq Al Marri, UAE Minister of Economy, will speak at Investopia’s conference in Milan, Italy, next month, alongside Fabrizio Rindi, Chairman of Investcorp, and Alfonso Dolce, CEO of Dolce & Gabbana.
Jerry Inzerillo, CEO of Saudi Arabian real estate developer Diriyah Co., was appointed a United Nations Tourism Ambassador during the first-ever UN Sustainability Week in New York.
Michael Jabri-Pickett, Editor-in-Chief of Khaleej Times, heralded a “new era” for one of the oldest English language newspapers based in the Gulf as it marks its 46th anniversary today.
🎶 Culture Circuit
🕌 Modern Pilgrimage: Saudi Arabia will host an international conference on the future of pilgrimage, with the Saudi Ministry of Hajj and Umrah expected to unveil new initiatives and partnerships for enhancing travel to Makkah, Madinah, and other important religious sites. The three-day Umrah and Ziyarah Forum at the King Salman International Convention Center in Madinah starts on April 22.
📷 Photo of The Day
🗓️ Circuit Calendar
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. 16-17, Dubai, UAE: Global AI Show. A two-day expo for AI startups and executives under the patronage of UAE Minister of Artificial Intelligence and Remote Work Applications Omar Al Olama. Grand Hyatt.
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 14-15, Abu Dhabi, UAE: J.P. Morgan Asset Management: Life Sciences Innovation Summit. A gathering aimed at drawing startups and investors from the life sciences sector to Abu Dhabi. Cleveland Clinic Abu Dhabi.
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.