👋 Hello from the Middle East!

Today in The Daily Circuit we’re looking at the Dubai Financial Market’s new private credit platform, the restructuring of Abu Dhabi’s artificial intelligence holdings, torrid demand for Saudi Arabia’s latest IPO and the death of Sheikh Tahnoun bin Mohammed, an influential elder of Abu Dhabi’s royal family. But first, three predictions from the UAE’s Minister of AI.

With Dubai soaked from another late-season storm, UAE Minister of State for Artificial Intelligence Omar Al Olama mounted the stage at today’s Capital Market Summit wearing rubber sandals. Before delivering a peek into the country’s AI future, the minister had to navigate his way to the correct location at Dubai’s Madinat Jumeirah Conference and Events Centre as the main stage was damaged by rain, The Circuit’s Kelsey Warner reports.

Addressing how AI will affect the world of finance, Al Olama offered three predictions. No. 1: Stronger firewalls will be erected to limit the amount of information that can be freely scraped from the internet. No. 2: Investors will see the rise of “artisanal” large language models to guide them through such thickets as hedging, ETFs and shariah-compliant lending. No. 3. Overuse of AI will lead to a “big catastrophic financial event.”

Roaming the conference halls was one business executive from Hong Kong who was seeking connections for big tech and EV clients back in China. With an eye toward potential dual listings, she noted that Chinese companies have yet to go public on the Dubai Financial Market, but they are seeing opportunities reminiscent of the go-go days of China’s biggest city. “Dubai in 2024 is Shanghai in 2004,” she said.

Heavy rain, wind and lightning hit the UAE overnight, with flooding on roads in Dubai and Abu Dhabi, and trees uprooted in some areas. Dubai International Airport canceled 13 flights and intercity bus services have been suspended. Schools held classes online while students stayed home and many businesses allowed employees to work remotely.

The latest downpours come as the emirates, particularly Dubai, are still recovering from extreme weather that brought record rain and flooding two weeks ago.

NEW ARENA

Dubai’s stock exchange is introducing a new platform called “The Arena” that allows companies to tap into the growing global market for private credit and gives venture capital firms the ability to sell shares in startups they own. Using technology developed for Nasdaq, the Dubai Financial Market’s latest project targets family conglomerates, VC funds, and small and medium-sized enterprises, the exchange said in a statement on Wednesday. Companies raising money through The Arena will have the ability to impose access limitations, such as restricting sales to institutional investors, employees or family members. “Arena is designed to facilitate seamless processes, including due diligence, book building, brokered trades, and settlement, fundamentally reshaping the landscape of investment accessibility and efficiency,” DFM CEO Hamed Ali said.

AI RESTRUCTURING 

Abu Dhabi artificial intelligence company Presight has acquired a 51% stake in AIQ, an AI and machine learning joint venture between the Abu Dhabi National Oil Co. (ADNOC) and advanced technology company G42. ADNOC will retain 49% under the new structure, which values AIQ at $1.4 billion, with the oil company’s CEO Dr. Sultan Al Jaber taking over as chairman. AIQ uses AI and machine learning to optimize business processes, improve planning and increase profitability for ADNOC and the wider oil and gas industry.

Public Investment Fund: Saudi Arabia’s PIF-owned Ma’aden mining company completed its acquisition of a 10% stake in Brazil’s Vale Base Metals.

Abu Dhabi Investment Authority: ADIA will be a cornerstone investor in Saudi hospital group Fakeeh, after participating in what is likely to be the kingdom’s biggest public listing of the year. The IPO sold out in minutes of starting this morning, raising up to 2.86 billion riyals ($763.4 million), Bloomberg reported.

Mubadala: The U.S.-based Joint Commission International, which sets standards for healthcare facilities, granted accreditation to Mubadala Health Dubai, which runs a chain of walk-in clinics in the UAE.

ADQ: The Abu Dhabi sovereign wealth fund has listed its first dollar-denominated bonds on the London Stock Exchange, selling a $1.25 billion five-year tranche and a $1.25 billion 10-year tranche.

↪↩ Closing Circuit

🏡 Cairo Suburb: Egypt’s Madinet Masr sold homes worth $107 million in the new luxury Sheya development, which is under construction outside Cairo and due to be completed in 2028.

🏭 Petrochemicals Underperform: SABIC, the giant Saudi petrochemical company, reported a 62% drop in first-quarter net profit, with declines in revenue stemming from oversupply.

🚨 Fraud Alert: BioCatch, an Israeli fraud detection startup, is being acquired by U.K. private equity firm Permira, which will pay $750 million for a 57% stake held by Bain Capital and Maverick Ventures. The transaction values the company at $1.3 billion.

🔒 ID Manager: Cyber Oasis, an Israeli cybersecurity startup focused on identity management, raised $35 million in an extension to its Series A funding round led by Accel, Cyberstarts and Sequoia Capital.

🌀 Energy Gust: The UAE’s Masdar renewable energy company signed an agreement with Bapco Energies to explore investing in wind projects in Bahrain.

⚗️ Drug Debut: Remepy, an Israeli drug development startup, raised $10 million in seed funding, led by NFX, to bring its first hybrid drug to market.

🗣 Circuit Chatter

🏝️ Island Mansions: One of the islands in Dubai’s mothballed artificial archipelago project called “The World” is being revived by the son and daughter of Damac Properties founder Hussain Sajwani, offering beachfront mansions starting at $13.6 million, Bloomberg reports.

🔬 Saudi HQ: Chicago-based bio-pharmaceutical company AbbVie, opened a regional headquarters office in Jeddah, complying with Saudi requirements for receiving government contracts.

🛏️ French Hospitality: France’s Accor plans to build 45 new hotels across Saudi Arabia by 2030, regional CEO Duncan O’Rourke said in an interview with Arab News.

🏦 Race to Riyadh: Banking giants attracted to Saudi Arabia’s vast oil wealth, including Deutsche Bank and JP Morgan, are rushing to set up shop in the kingdom’s capital, but it’s not all smooth sailing, Bloomberg reports.

💾 Virtually There: The Dubai subsidiary of digital asset custody provider Liminal has secured initial approval from Dubai’s Virtual Asset Regulatory Authority, a “pivotal step” towards acquiring a full license to handle virtual assets in the UAE.

🌍 Power Circuit

Sheikh Tahnoun bin Mohammed, the uncle of UAE President Sheikh Mohamed Bin Zayed and his Representative to the Al Ain region, died on Wednesday at 82. Sheikh Tahnoun was a close adviser to the UAE’s Founding Father and President, Sheikh Zayed bin Sultan Al Nahyan, holding a series of posts that included Chairman of ADNOC and Minister of Municipalities and Agriculture. The country is observing a seven-day mourning period for Sheikh Tahnoun in which flags are to be flown at half-mast. 

Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, received Mehrdad Bazrpash, Iranian Minister of Road and Urban Development, at Qasr Al Watan in Abu Dhabi on Wednesday. The pair discussed ways to expand bilateral trade as part of meetings for the UAE-Iran joint economic commission, which is convening in Abu Dhabi this week for the first time in 10 years.

Sheikh Abdullah bin Zayed, UAE Minister of Foreign Affairs, met with Israeli Opposition Leader Yair Lapid in Abu Dhabi to discuss the latest developments in the region, particularly addressing the humanitarian crisis in Gaza.

➿ On the Circuit

Amna Al Dahak, the UAE Minister of Climate Change and the Environment, is leading the Emirati delegation to the G7 Ministerial Meeting on Climate, Energy and Environment in Italy.

Dr Mahmoud Mohieddin, Executive Director at the International Monetary Fund, praised the UAE’s success in diversifying its economy on the sidelines of the Economy Middle East Summit in Abu Dhabi. “There has been a noticeable improvement in growth rates and economic indicators in the UAE,” he told WAM.

Gokul Mani, Managing Director and regional head of Equity Capital Markets at JP Morgan, said the exceptional performance of IPOs on the Dubai Financial Market and around the GCC would attract more international investors to the region.

🎶 Culture Circuit

🐪 Hump Days: AlUla will host the inaugural Arab Camel Cup and the World Camel Endurance Championship at the Mughira Heritage Sports Village this weekend. “Elite” camels from 15 countries will compete for prizes of more than 3 million riyals ($800,000) in the Arab Camel Cup on Friday, and 2 million riyals in the endurance event on Saturday, which will include male and female riders.

📷 Photo of The Day

🗓️ Circuit Calendar

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.  

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.