👋 Hello from the Middle East!

Today in The Daily Circuit, we’re looking at the first-quarter performance of MENA’s capital markets, the U.S.-UAE tech alliance, another pro tennis sponsorship deal for the Public Investment Fund and American comedian Dave Chappelle performing in Abu Dhabi next month. But first, two kingdoms unite.  

The Brits will beat a path to Riyadh next month under the banner of a trade expo between the two nations as U.K. Prime Minister Rishi Sunak eyes the trillions of dollars Crown Prince Mohammed bin Salman is plowing into his Vision 2030 economic diversification plan. 

A delegation of more than 750 British and Saudi executives, some from British Airways, HSBC and NEOM, will meet at Saudi Great Futures on May 14 and 15. The event will launch a year-long campaign to showcase U.K. firms to Saudi investors with a focus on sectors that support the kingdom’s bold economic ambitions, putting a spotlight on opportunities in the kingdom for burgeoning sectors like renewable energy, tourism, gaming and fashion and push the U.K. as a potential collaborator.

The U.K. — and some of its most storied institutions — have long been a destination for Gulf capital. Legendary Knightsbridge department store Harrod’s is owned by Qatar’s sovereign wealth fund and the UAE’s Vice President Sheikh Mansour bin Zayed is the owner of Premier League football club Manchester City. Qatar and Saudi Arabia’s sovereigns both own a stake in Heathrow Airport. That’s just to name a few. 

A two-way street for trade and investment flows has picked up pace in the last several years as Saudi Arabia has opened up to tourism and mega-projects like NEOM have gotten underway. Trade between the U.K. and Saudi Arabia has increased to $20.4 billion in 2022 from $15 billion in 2018, Bloomberg reports. The invitation is open: “We are looking for senior U.K. leaders of businesses, organizations, and educational institutions to join us in Riyadh to participate not only as delegates but as speakers, exhibitors and sponsors, presenting the very best of what the U.K. has to offer,” the Great Future website says.

CAPITAL FLOWS 

MENA equity capital markets, a beacon over the past few years amid muted global activity, recorded declining proceeds and activity on their exchanges in the first quarter, according to the London Stock Exchange Group. The region’s markets raised $1.2 billion in equity and equity-related issuances in the first quarter, down 6% year-on-year and the lowest first-quarter performance since 2021, as the number of issuances declined 14% from 2023. Nine IPOs happened between January and March, four less than during the first quarter of 2023, according to LEG. They raised a combined $931.4 million, 74% less than the total proceeds raised by IPOs during the same period last year. Emirates NBD PJSC and HSBC tied for first place in the MENA ECM underwriting league table during the first quarter, each with a 20% market share and both bringing in $228.6 million in fees. 

BALANCING CHINA

The Biden administration is proactively encouraging U.S. technology firms to seek artificial intelligence deals and partnerships in the UAE, the Financial Times reports after a blockbuster $1.5 billion investment from Microsoft in Abu Dhabi AI firm G42 was announced last week. U.S. Secretary of Commerce Gina Raimondo, who was part of those deal discussions with the UAE, reiterated her views on advancing American tech — and keeping it out of the hands of China — in an interview on Sunday with 60 Minutes. Meanwhile, Singapore has sought to reassure investment bankers from firms like Citigroup and Standard Chartered that it remains a neutral financial center amid rising tensions between Beijing and Washington, the FT reports.

🚚 More Deliveries: Abu Dhabi’s non-oil foreign trade grew to $77 billion in 2023, up 8% compared to the prior year as imports also grew by 19%, according to Abu Dhabi Customs.  

🇨🇴 New Green Deal: Colombia is hoping to attract up to $700 million worth of investment from the UAE across sectors including green hydrogen and the digital economy, after signing a Comprehensive Economic Partnership Agreement on Friday. 

🛢️ Going Global: Abu Dhabi’s AD Ports has signed an agreement with Adnoc Distribution for its subsidiary Ports Cluster, which owns or operates 24 terminals worldwide, to distribute lubricants globally. 

💰 Paid Up: Dubai-listed investment bank SHUAA Capital has secured agreement with note holders to settle its $150 million bond, following a five-month extension, and hinted at an imminent capital injection.