The Daily Circuit
👋 Hello from the Middle East!
Today in The Daily Circuit, we’re looking at air taxis in the UAE, Morocco’s cannabis farmers, shareholder approval of the UAE’s space company merger and billionaire Ray Dalio’s scuba dive with Dubai’s Crown Prince Hamdan. But first, the World Economic Forum heads to the Arabian Peninsula.
The Davos crowd will descend on the Ritz Carlton in Riyadh this weekend as the World Economic Forum hosts a special meeting that begins on Sunday on themes of global collaboration and energy policy amid crisis in the Middle East. Saudi Arabia will gather top officials from the U.S., EU and the Arab world on the sidelines on Monday, including U.S. Secretary of State Antony Blinken, to discuss Gaza, Bloomberg reports.
Within the conference halls, the kingdom will look to drive the conversation among the crowd of key partners toward the progress it is making on its Vision 2030 economic diversification strategy. Under the wide-ranging plan, Crown Prince Mohammed bin Salman looks to transform the country by building up industries such as tourism, mining, technology and gaming. Co-chairs of the Forum’s meeting include Ibrahim A. Al-Assaf, the Saudi Arabian Minister of State; Bill Ford, Chairman and CEO of General Atlantic; Chung Ki-Sun, Vice-Chairman and Chief Executive Officer of Hyundai; Anna Marks, Global Chair of Deloitte; and Shunichi Miyanaga, Chairman of Mitsubishi Heavy Industries, among other executives from shipping, energy and finance.
Out of the 1,064 economic development initiatives that have been rolled out under the ambitious strategy, 87% are complete or on track, the state-owned Saudi Press Agency reported on Thursday as it marked the eighth anniversary of the plan’s roll-out. As of last year, Saudi Arabia recorded improvements in visitor numbers, home ownership rates, the development of heritage sites, life expectancy and health services coverage, among other indicators.
📰 Developing Stories
AIR AND SEA
Abu Dhabi has signed a flurry of deals with American companies as it aims to provide autonomous transportation options throughout the UAE. At the inaugural two-day DriftX conference now underway on Yas Island, Archer Aviation, a U.S. developer of electric vertical takeoff and landing (eVTOL) aircraft, signed a framework agreement for “multi-hundred-million dollars” with the Abu Dhabi Investment Office, setting a target date to start air taxi operations in 2025. ADIO also signed an agreement with Archer competitor Joby Aviation to offer flying taxi services between Abu Dhabi and Dubai. The agreement builds on a deal the California company has made with the Dubai aviation regulator for exclusive rights to operate air taxi services in Dubai. Joby expects to start services as early as next year after its infrastructure partner landed $125 million in investment this month. Meanwhile, Boston-based Regent Craft signed agreements with ADIO and the Department of Transport for the trial use of electric seagliders that can carry passengers between Dubai and Abu Dhabi in 25 minutes, less than half the time by car.
CANNABIS SURGE
Morocco is growing into a major producer of legal marijuana. According to the government’s ANRAC regulatory agency, authorization to grow cannabis has been granted to 2,905 applicants so far this year, compared to 609 who received licenses in all of 2023. That follows the country’s first legal cannabis harvest of 294 metric tons last year after the government approved its cultivation and export for medicinal and industrial uses. Recreational cannabis use is illegal, although tolerated. Close to 1 million people live in areas of northern Morocco where cannabis has long been the main economic activity. Legalizing cannabis was meant to improve farmers’ incomes and protect them from drug traffickers.
💲 Sovereign Circuit
Qatar Investment Authority: Nearly £1 billion ($1.25 billion) has been wiped off the value of London’s Canary Wharf offices amid declining popularity for the district and a rise in working from home. Canary Wharf Group, which is co-owned by the QIA and U.S. asset manager Brookfield, reported the drop-off amid a spate of high-profile exits. Meanwhile, Swiggy, an Indian food delivery app with backing from QIA, got approval from its shareholders for a $1.25 billion initial public offering.
Public Investment Fund: The PIF-backed NEOM mega-project inked a deal with Marriott International to bring its ultra-luxury brand Ritz-Carlton Reserve to the mountain region of Trojena in the northwest Saudi Arabia. Meanwhile, the PIF-backed Regional Voluntary Carbon Market Company has selected commodity exchange Xpansiv to provide tech infrastructure for its carbon credit market set to launch later this year in Saudi Arabia.
↪↩ Closing Circuit
🛰️ Final Frontier: Shareholders at both Abu Dhabi’s geospatial and data analytics firm Bayanat AI and satellite services operator Al Yah Satellite Communications approved the merger of their companies on Thursday. The two firms, owned by G42 and Mubadala, will operate as separate units of Space42, creating one of the world’s largest space companies.
☁️ Cloud Cover: Microsoft, which has invested $1.5 billion in G42, reported third quarter earnings on Thursday, beating analysts’ estimates on the top and bottom lines on the strength of its cloud computing business.
☪️ Bond Offering: Saudi Arabia’s oilfield services provider Rawabi Holding raised $320 million in an offering of Islamic bonds led by Albilad Capital, Alinma Investment, Al Rajhi Capital, and Riyad Capital.
🤑 Feeling Funding: Dubai and Singapore-headquartered private equity firm TVM Capital Healthcare has invested $17 million in Neurocare Group, a Munich-based startup specializing in personalized mental healthcare.
🍲 Delivery Location: Beijing-based Meituan is planning to roll out its food-delivery app Keeta in Riyadh, marking its first foray outside China amid slowing growth and broader expansion plans in the Middle East.
🗣 Circuit Chatter
🏗️ Going Up: IHG-owned hospitality group Six Senses plans to build the tallest residential tower in the world, located in the bustling Dubai Marina.
🩺 Hospital Manager: Elegancia Healthcare, a unit of Qatar’s Estithmar Holding, signed an agreement with Iraq’s Ministry of Health to manage the Al Hasan Al Mujtaba Teaching Hospital.
⛈️ Dramatic Forecast: Climate change made recent deadly flooding in the UAE and Oman anywhere from 10% to 40% more intense than it would have been in the preindustrial era, according to the World Weather Attribution research initiative.
🛢️ Risk Premium: Oil prices could go beyond $100 a barrel if there is a severe escalation of the conflict in the Middle East, the World Bank said in its Commodity Markets Outlook on Thursday.
🇨🇳 Adding Bounce: Arlanxeo, a unit of Saudi Aramco, has started construction of a factory in China’s Jiangsu province to make high-quality HNBR rubber.
🌍 Power Circuit
Sheikh Hamdan Bin Mohammed, Crown Prince of Dubai, went scuba diving with billionaire Bridgewater hedge fund founder Ray Dalio to explore the new Dubai Reef, a massive project to restore the emirate’s coral habitats and protect marine biodiversity.
Sheikh Mansour bin Zayed, UAE Vice President and Deputy Prime Minister held a meeting at Qasr Al Watan in Abu Dhabi with China’s Ambassador Zhang Yiming.
Sheikh Dr. Sultan bin Muhammed Al Qasimi, the Ruler of Sharjah, signed a decree to establish the University of Al Dhaid in the emirate, which will specialize in the study of agriculture, the environment, food and livestock.
➿ On the Circuit
OpenAI CEO Sam Altman, Nvidia’s Jensen Huang, Microsoft’s Satya Nadella and Alphabet’s Sundar Pichai will join a panel to advise the U.S. Department of Homeland Security on deploying artificial intelligence safely, the Wall Street Journal reports.
Fadhel Al Ali, Chairman of SHUAA Capital, said he will step down after nearly five years leading the Dubai-based asset manager and investment bank. A replacement was to be elected on Friday, with the Board then naming a new Managing Director.
Nick March, Assistant Editor-in-Chief at The National, writes about how The Club, an Abu Dhabi beach club catering to expats that dates back to 1962, weathered last week’s storm.
Nipun Sahni, Apollo Global Management’s partner for real estate in India, is leaving the firm, Bloomberg reports.
🎶 Culture Circuit
🎨 Qatar’s Renaissance: The booming cultural scene in Doha, with its growing number of museums, exhibitions and art collections, is the subject of a Bloomberg feature. Work is underway on the next major addition, an old flour mill being reimagined as the Art Mill Museum by Pritzker Prize-winning Chilean architect Alejandro Aravena.
📷 Photo of The Day
🗓️ Circuit Calendar
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. King Abdulaziz International Conference Center at the Ritz Carlton.
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 1-2, Dubai, UAE: Capital Market Summit. A gathering of investors and entrepreneurs hosted by the Dubai Financial Market aimed at sparking interest in IPOs. Madinat Jumeirah.
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 6-7, Dubai, UAE: Dubai FinTech Summit. The second annual gathering of financial leaders meet to spotlight innovation and discuss disruptions in the industry, organized by the Dubai International Financial Centre (DIFC). Madinat Jumeirah.
May 7-9, Abu Dhabi, UAE: AIM Congress. The Annual Investment Meeting will convene inter-governmental leaders, executives, entrepreneurs and policymakers on the theme “Adapting to a Shifting Investment Landscape: Harnessing New Potential for Global Economic Development.” Abu Dhabi National Exhibition Center.
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 invitation 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.
