The Daily Circuit
👋 Hello from the Middle East!
Today in The Daily Circuit, we’re looking at structural lessons for the UAE from this week’s flooding, Oman’s latest LNG contracts, Binance’s redemption in Dubai and a summer appearance in Abu Dhabi by Lebron James with other NBA all-stars. But first, there’s more underneath the Saudi desert sands than oil.
Saudi Arabia is digging deeper to capitalize on the vast mineral wealth beneath the kingdom, according to a new government report. In addition to its vast oil reserves, the country is also sitting on gold, phosphate, bauxite, copper, zinc and nickel. The mineral abundance’s value is estimated at $2.5 trillion, the latest government figures show.
To accelerate exploration and development, the country has poured $182 million in incentives through the end of 2023 with the Saudi Industrial Development Fund covering up to 75% of eligible project costs, according to Vice Minister of Industry and Mineral Resources for Mining Affairs Khalid Al-Mudaifer. The mineral wealth “presents a crucial opportunity to expand non-oil revenue streams alongside the oil and petrochemical industries,” his ministry said on Wednesday.
Saudi Arabia, the world’s second-biggest oil producer, may well emerge as a critical player in the energy transition amid the discoveries as some of the minerals are linchpins in our current electrification era. As recently as 2022, the potential value of untapped minerals beneath the Saudi desert was put at $1.2 trillion.
The massive exploration efforts have more than doubled that figure in two years. Bob Wilt, CEO of the Public Investment Fund-backed mining company Ma’aden, told The Circuit in January that he believes it is the largest mineral exploration effort underway anywhere in the world. “We just had great luck,” he said.
📰 Developing Stories
taking stock
UAE President Mohammed Bin Zayed instructed authorities to begin work on a nationwide assessment of the damage done to its infrastructure after a record-setting rainfall. The downpour flooded parts of the country, wreaking havoc on Dubai International Airport, major roadways and popular shopping centers. With UAE authorities and experts pointing to extreme weather, rather than man-made cloud seeding, as the cause of this week’s destruction, the issue of adapting buildings for the effects of climate change is expected to come to the fore, analysts say. An estimated 80% of current global building stock is expected to be standing t in 2050 – Dubai itself is home to 170,000 structures – according to real estate consultancy JLL MENA. The figures “call for governments and real estate players to significantly step up retrofitting efforts,” it said.
tapping lng
Oman is ratcheting up gas production and cementing long-term contracts as it competes to supply growing demand for liquified natural gas. State-owned Oman LNG Co. signed two 10-year agreements this week: one to supply 1.6 million metric tons a year to Shell‘s gas unit and a second to supply 800,000 metric tons a year to JERA, Japan’s largest power company. Demand for LNG is projected to more than double by 2040 as industries switch from coal to gas in China, India and elsewhere in Asia.
💲 Sovereign Circuit
ADQ: The Abu Dhabi sovereign wealth fund has offered to buy a 49% stake in the construction arm of Alpha Dhabi Holding Co. and said it will call a general assembly meeting to approve the purchase. Meanwhile, Abu Dhabi’s TAQA, the energy and water business owned by ADQ, confirmed it is in talks with Spain’s Criteria over a potential takeover of Spanish energy company Naturgy. ADQ also said it is collaborating with the UAE’s Terrax Environmental Ltd. to develop TerraTile, a modular flooring system for events composed 100% from recycled materials.
Mubadala: Masdar, the Abu Dhabi sustainable fuels company part-owned by Mubadala, plans to raise as much as $1 billion this year through the sale of green bonds to finance new projects and acquisitions.
↪↩ Closing Circuit
🏦 Indonesian Lender: Abu Dhabi Islamic Bank is in talks to buy a $1.1 billion stake in Indonesia’s top Islamic lender, Bank Syariah Indonesia, Reuters reports.
🤝 VC Partners: Egypt’s Beltone Venture Capital signed an agreement with Abu Dhabi based Citadel’s CI Venture Capital to co-manage a $30 million fund to invest in MENA startups.
💰 Lower Fees: An estimated $295 million worth of investment banking fees were generated in the MENA region during the first quarter of 2024, 5% lower than a year ago, according to data from the London Stock Exchange Group.
🇹🇷 Airplane Parts: Turkish Airlines is close to signing an agreement with Rolls-Royce and Airbus for the domestic production of aircraft components worth as much as $20 billion, part of its effort to compete with regional rivals such as Emirates and Qatar Airways, Bloomberg reports.
🛢️ Settling Up: ADNOC said intends to settle its U.S. dollar-denominated senior unsecured bonds in ADNOC Distribution, paying up to $1.195 billion in cash, along with up to $4.18 million in applicable interest.
🛒 Retail Tech: Fortis, a Dubai-based developer of fintech and retail technology for small and medium-sized businesses, raised $20 million in a Series A funding round led by Opportunity Venture,
🔒 Network Protection: Armis Security, an Israeli cybersecurity company, signed a $150 million contract to buy Silk Security, an Israeli startup that can identify computer network vulnerabilities and repair them.
🍎 Precision Spray: Greeneye Technology, an Israeli agricultural startup that develops AI-enabled precision spraying technology, raised $20 million in a funding round led by Deep Insight.
🗣 Circuit Chatter
💸 Back in Business: Binance Holdings received its full crypto license in Dubai after co-founder Changpeng “CZ” Zhao agreed to give up voting control in the local entity, Bloomberg reports.
👀 Under Watch: London’s High Court has placed NMC Health, the UAE’s largest private hospital operator, into government-supervised administration on the application of one of its biggest lenders, Abu Dhabi Commercial Bank.
🔌 Going Dark: Egypt has resumed daily power cuts lasting up to two hours in an attempt to save money amid a continuing energy shortage. Authorities had suspended the cuts during the month of Ramadan and last week’s Eid Al Fitr holiday.
🇨🇳 Air Routes: A China Southern Airlines flight that landed in Riyadh on Tuesday was the first after Saudi regulators authorized routes to and from Beijing and two other cities.
🏗️ Dubai-Inspired: “The Redneck Burj Khalifa” or “Burj Khaloma” are tongue-in-cheek name ideas for the proposed tower in Oklahoma City, Oklahoma that would be the tallest in the U.S. if property developer Scot Matteson’s plans are approved.
🌍 Power Circuit
UAE President Sheikh Mohamed bin Zayed and Costa Rican President Rodrigo Chaves Robles witnessed the signing of the UAE-Costa Rica Comprehensive Economic Partnership Agreement (CEPA) during a virtual ceremony on Wednesday. The free-trade agreement was signed by Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, and Manuel Tovar, Minister of Foreign Trade of Costa Rica.
Sheikh Shakhboot Nahyan Al Nahyan, Minister of State at the UAE Ministry of Foreign Affairs, participated in the meetings of the International Humanitarian Conference for Sudan and Neighboring Countries, which took place in Paris on Monday, where he announced a commitment of $100 million in aid.
Qatari Prime Minister Mohammed bin Abdulrahman Al Thani, who is also Foreign Minister, was profiled by Time magazine on its list of The 100 Most Influential People of 2024.
Sheikh Theyab bin Mohamed, the UAE’s Deputy Chairman of the Presidential Court for Development and Fallen Heroes Affairs, attended the World Future Energy Summit 2024 in Abu Dhabi on Wednesday.
➿ On the Circuit
Omar Al Olama, UAE Minister of Artificial Intelligence, will speak tomorrow on the country’s AI strategy and how the UAE views its global role in a virtual discussion hosted by the Atlantic Council.
Ambassador Majid Al Suwaidi, COP28 Director-General, met with Amos Hochstein, U.S. Deputy Assistant to the President and Senior Advisor for Energy and Investment, in Washington DC this week.
NBA all-stars Lebron James, Stephen Curry and Kevin Durant are coming to Abu Dhabi in July to represent Team USA and compete in friendly games against Australia and Serbia ahead of the Paris Olympics.
Ambassador of India to Qatar Vipul attended a “curtain raiser” event in Doha for the upcoming KBF Business Connect 2024, which will be held on April 30 and May 1 to boost business ties between the two countries. Muzna Almusafer, an Omani film director, is in Riyadh this week for the fourth annual Gulf Cinema Festival, where her short “Clouds” is up for a prize.
🎶 Culture Circuit
🎞️ Official Selection: The Cannes Film Festival announced that the Saudi film “Norah,” supported by the Saudi Film Commission, has been selected as part of the festival’s Official Selection in the Un Certain Regard section. The festival will take place in Cannes, France, from May 14 to 25.
🏎️ Autonomous Racing: Software coders are the racers in next week’s Abu Dhabi Autonomous Racing League, a self-driving vehicle race known as A2RL, that will take place April 27 at the Yas Marina Circuit, The National reports.
🌋 Rare Find: A large lava tube in Saudi Arabia provided valuable shelter for humans herding livestock over at least the past 7,000 years, according to a study published in the academic journal PLOS ONE. Greater investment in archaeological research in the kingdom over the last decade is increasingly shedding light on a previously mysterious archaeological record.
Ahead on The Circuit
April 19, Washington D.C.: The Atlantic Council will host a FrontPage Conversation with the UAE’s Minister of State for Artificial Intelligence Omar Sultan Al Olama. Register for the livestream through the webpage link.
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.
