The Daily Circuit
👋 Hello from the Middle East!
Today in The Daily Circuit we’re looking at why more expats want to work in Dubai and Abu Dhabi, the growing number of women founding Saudi startups, the likely extension of OPEC production cuts and the debut this month of Red Sea Fashion Week. But first, Gulf financiers head for the annual Milken gathering in LaLa Land.
Among the more than 1,000 speakers descending on Beverly Hills for the Milken Institute’s Global Conference starting Sunday will be a cadre of Middle East power brokers who are shaping the future of the region. Between morning yoga sessions and sound baths – Milken has a “healthy aging” bent – the financiers, entrepreneurs and business leaders are likely to be figures of curiosity at this year’s four-day gathering at The Beverly Hilton. The Gulf’s economic diversification drives have gathered pace, making investments and headlines in everything from artificial intelligence and mineral mining to moviemaking and golf.
Making his way to the California sunshine is Ahmed Saeed Al Calily, Chief Strategy and Risk Officer at Abu Dhabi’s second-largest sovereign wealth fund, Mubadala Investment Co., who is set to speak on balancing climate risk and returns. For advice on connecting Gulf investors with U.S. targets, Saleha Osmani, Managing Director of Dubai’s Falconbridge Advisors, will be on hand. Khalfan Belhoul, CEO of the Dubai Future Foundation can describe the city’s investment thesis on the future (yes, really) while Sheikha Shamma Al Nahyan, President and CEO of UAE Independent Climate Change Accelerators, will tout her home country’s bona fides in sustainable investing. Qatar Investment Authority, the Gulf’s fourth-largest sovereign with $510 billion in assets under management, is sending Americas investment chief Mohammed Al Sowaidi and Head of Funds Mohsin Tanveer Pirzada.
Saudi Arabia will be well-represented, too. As the kingdom looks to drive foreign investment through its Vision 2030 strategy, Minister of Investment Khalid Al-Falih will be on hand alongside Manar Al Moneef, Chief Investment Officer of NEOM, who has been traveling the world promoting the futuristic mega-project’s investment opportunities. The Gulf’s hot capital markets are also on the agenda with Sarah Al Suhaimi, Chair of the Board of Saudi Tadawul Group slated to speak. From the industry side, Fahad Al-Dhubaib, Senior Vice President of Strategy and Market Analysis of Saudi Aramco, and executives from Alat, Saudi Arabia’s new manufacturing company backed by the Public Investment Fund, will be there, including CEO Amit Midha and corporate development head Brian Rogove.
From the wider region, and likely to tackle themes stemming from the war in Gaza, are Queen Rania Al Abdullah of Jordan; Eugene Kandel, Chairman of the Tel Aviv Stock Exchange; and Jon Medved, Founder and CEO of Israeli venture capital fund OurCrowd; as well as Lebanese entrepreneur Ibrahim Al Husseini, Founder and Managing Partner of Full Cycle, a climate restoration investment fund.
📰 Developing Stories
DREAM JOBS
Tax-free salaries, booming tech investment and an English-speaking business environment have pushed the UAE’s two biggest cities into the top ranking of global hotspots where expats want to work. Dubai was No. 3 and Abu Dhabi No. 4 on the list of “Dream Destinations and Mobility Trends” compiled by Boston Consulting Group. London and Amsterdam were the most popular cities while New York rounded out the top five. The report was based on responses from 150,000 people in 188 countries surveyed at the end of last year. It cites the worldwide shift to remote work during the coronavirus pandemic as broadening the number of professionals looking for jobs outside their home countries.
FEMALE FOUNDERS
Women are making inroads into Saudi Arabia’s growing constellation of startups even though some 91% of the companies were founded by men. A report by data analytics firm MAGNiTT in collaboration with the Saudi Venture Capital Co. found a “growing emphasis on diversity and inclusion” in the kingdom’s tech ecosystem that “aligns with global movements toward gender parity in entrepreneurship.” The survey tracked 400 founders at 200 of the best-funded Saudi startups between 2013 and 2023. It found that nearly a third of them were founders, co-founders or board members of previous startups. In terms of education, 18% had MBAs and 9% had PhDs. While many founders attended elite international universities such as Harvard and Stanford, “a significant number” were graduates of Saudi Arabia’s own schools such as King Saud University and King Fahd University, the report said.
💲 Sovereign Circuit
Mubadala: Aldar Properties, a Mubadala-held company that is Abu Dhabi’s biggest real estate firm, announced plans to build a luxury residential development in Dubai called Athlon in partnership with Dubai Holding. Mubadala and Warburg Pincus, meanwhile, are reportedly in talks to acquire a controlling stake in India’s Shriram Housing Finance, according to the Business Standard.
Abu Dhabi Investment Authority: ADIA and American private equity firm KKR have invested an estimated $1.5 billion in the warehousing assets owned by the retail subsidiary of India’s Reliance Industries Limited, Economic Times reports.
ADQ: Abu Dhabi Aviation completed the acquisition of Etihad Airways Engineering, Advanced Military Maintenance Repair & Overhaul Centre and a 50% stake in Global Aerospace Logistics from an ADQ subsidiary in exchange for $1.1 billion in ADA shares.
Public Investment Fund: Lucid Group, the PIF-controlled U.S. maker of luxury electric vehicles, signed an agreement with Saudi Arabia’s King Abdulaziz City for Science and Technology, to strengthen development of EV technology within the kingdom.
↪↩ Closing Circuit
📽️ Studio Struggle: Apollo Global Management and Sony Pictures submitted a $26 billion offer for Paramount studios, which has been in merger talks with Skydance Media under an exclusivity agreement that expires today, the Wall Street Journal reports.
🌃 Downtown Digs: Knight Frank MENA real estate set a record for selling Dubai’s costliest downtown apartment, a duplex penthouse at the top of the Kempinski The Boulevard hotel that went for $22 million.
🤖 Altman-Backed: Apex, an Israeli cybersecurity startup focused on artificial intelligence applications and backed by OpenAI’s Sam Altman, emerged from stealth and said it raised $7 million in a seed funding round led by Sequoia Capital and Index Ventures.
💰 Dubai Logic: U.S. private equity firm Brookfield Asset Management has acquired a controlling stake in Dubai-based Gulf Islamic Investments’ logistics real estate platform for an undisclosed sum.
🔒 Browser Shield: LayerX, an Israeli cybersecurity startup with a platform to protect internet browsers, raised $26 million in a Series A funding round led by Glilot Capital Partners.
🩺 AI Diagnosis: AISAP, an Israeli startup that uses AI to help doctors make a diagnosis from ultrasound images, raised $13 million in a seed funding round led by Harel Insurance Investments and Shoni Top Ventures.
🗣 Circuit Chatter
🛢️ Surplus Supply: OPEC+ will probably extend oil output cuts into the second half of the year as it seeks to soak up a global surplus and keep prices high, Bloomberg reports. Bucking the trend is Abu Dhabi’s ADNOC, which has boosted production by 4% to 4.85 million barrels per day since the end of last year.
⚗️ Chemical Reaction: Advent International, a Boston-based private equity firm, is in talks with Oman about a potential move to inject fresh capital into state-owned OQ Chemicals in exchange for a majority stake in the company, Bloomberg reports.
🏦 VC Outpost: Speedinvest, a European venture capital firm with $1 billion in assets under management, plans to open an office in the UAE, VC Circle reports. It hired Rana Abel Latif as a partner on the Emerging Markets team tasked with finding early-stage startups for investment.
🏗️ Builders Wanted: Saudi Arabia is leading the world in construction activity, according to the latest Global Construction Monitor from the Royal Institution of Chartered Surveyors, but faces a major hurdle with labor supply shortages.
📱 New & Improved: Dubai Financial Market released an upgraded version of its iVestor app, a digital platform aimed at simplifying financial management for investors.
🌍 Power Circuit
UAE President Sheikh Mohamed bin Zayed on Thursday performed the funeral prayer over his uncle, the late Sheikh Tahnoun bin Mohammed, Representative to the Al Ain region, at the Sheikh Sultan bin Zayed the First Mosque in Abu Dhabi. Also performing the prayer were Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, and Sheikh Mohammed bin Saud bin Saqr Al Qasimi, Crown Prince of Ras Al Khaimah, as well as Sheikhs of the Al Nahyan family, the late Sheikh Tahnoun bin Mohammed’s siblings, his children and crowds of worshipers. The country is observing a seven-day mourning period for Sheikh Tahnoun in which flags are to be flown at half-mast.
Sheikha Mahra, the daughter of Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, announced the arrival of a healthy baby girl on Wednesday. The baby is the first child for Sheikha Mahra and her husband Sheikh Mana Al Maktoum, after the couple married in April last year.
Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani has sold a Mayfair mansion to another member of the nation’s ruling family for £39 million ($49 million) in October, Bloomberg reports.
➿ On the Circuit
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef said during a meeting with investors in Qatar that the kingdom is open to providing up to 75% of financing for a variety of industrial and mining projects.
Phil Mickelson, one of the first top players to join the Saudi-backed LIV Golf league, said in a Bloomberg interview that he’s considering retirement and is skeptical about the need for a merger between LIV and the PGA Tour.
Aaron Sobel is profiled in Business Insider as the lead partner at Apollo, the private equity giant that has teamed up with Sony to land Paramount with a $26 billion bid.
🎶 Culture Circuit
👗 Kingdom Couture: Saudi Arabia will showcase local and international designers at the inaugural Red Sea Fashion Week on Ummahat Island, May 16-18. The event at the St. Regis Red Sea Resort will fuse traditional Saudi aesthetics with contemporary design. It comes after the kingdom hosted its first fashion week in Riyadh in October.
📷 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.
