The Daily Circuit
👋 Hello from the Middle East!
Today in the Daily Circuit, we’re looking at the latest proliferation of Gulf IPOs, COP28 President Sultan Al Jaber’s outreach to Silicon Valley CEOs, Mubadala’s new mental healthcare firm and Saudi Arabia’s first coffee-making factory. But first, taking off for the UAE’s blue skies with no pilot on board.
Abu Dhabi has made good on a long-held promise – putting a drone to the test of carrying a human passenger – as the emirate looks to hit critical milestones on the road to autonomous travel. Mohamed Hamad Al Dhaheri was the brave soul to hop aboard the pilot-free flight that took place in the UAE’s “Garden City,” Al Ain.
Al Dhaheri, a board member of Abu Dhabi-based Multi Level Group, which works on advanced automation products, called the flight, which took place two weeks ago, “exhilarating.” He added: “Integration of technology and aviation represents a significant leap forward for our nation, and as an Emirati I am proud to be a part of it.”
The drone was manufactured by EHang, an autonomous aircraft company out of Guangzhou, China, that has plans to launch commercial flights in the UAE. Last month, EHang signed an agreement with the Abu Dhabi Investment Office and Multi Level Group as the Chinese company looks to set up a regional headquarters in the UAE capital to expand its businesses ranging from manufacturing and flight operations to research and development.
Badr Al Olama, CEO of ADIO, shared videos on Instagram of Al Dhaheri’s maiden voyage, offering a bird’s eye view of the future of flight. The tests were attended by government officials and executives from the defense sector, with the electrified flyers being developed for potential intra-city travel and security applications, according to a statement. ADIO, whose mandate is to drive investment in Abu Dhabi, has honed in on autonomous transportation in recent months, establishing a research hub to attract autonomous vehicle businesses like EHang to the emirate.
📰 Developing Stories
IPO ESCALATION
Initial stock offerings are proliferating across the Gulf. Spinneys supermarket chain is the latest UAE company to go public with its shares soaring more than 11% today in its trading debut on the Dubai Financial Market. Saudi Arabia’s Tadawul stock exchange, meanwhile, has more than 10 companies in its pipeline waiting to launch IPOs and another 50 that have applied for listings, CEO Mohammed Al-Rumaih told Bloomberg. “The good thing about those IPOs is not just the number but the diversity,” he said. “They are from different sectors, different sizes in different stages in their life cycle.” The kingdom’s Dr. Soliman Abdul Kader Fakeeh Hospital sold out its offering within an hour last week, raising more than $760 million and making it the largest Saudi IPO so far this year.
CURTAIN CALL
To cap his year-long term as President of the United Nations COP28 climate summit, UAE Minister for Industry and Advanced Technology Dr. Sultan Al Jaber is planning a get-together in Abu Dhabi of the world’s largest energy and tech companies this coming November, the Financial Times reports. The gathering of CEOs from top Silicon Valley firms and global oil companies – dubbed the “Change Makers Majlis,” or gathering – will take place days before the two-week COP29 summit opens in Azerbaijan, focusing on artificial intelligence and the energy transition from fossil fuels. “My message to the tech sector is this: AI needs energy and energy needs AI,” said Al Jaber, who is CEO of the ADNOC national oil company, speaking in an interview with the FT. “Let’s collaborate to drive down the emissions of the conventional energy you will still need, and on ways that AI can drive energy efficiency.”
💲 Sovereign Circuit
Mubadala: Mubadala is preparing to launch a mental healthcare company geared toward young adults in the U.S. under its healthcare and life sciences unit, Alaa Halawa, Mubadala’s Head of U.S. Ventures, said on a panel at Milken Institute Global Conference on Wednesday. He also offered a glimpse into his mandate as the Head of Healthcare at Abu Dhabi’s second-largest sovereign wealth fund, saying his unit is focused on early-stage investing across three verticals: therapeutics and pharmaceuticals, healthcare technology and services as well as backing company formations and growth investing.
Public Investment Fund: PIF-owned Saudi Coffee Co. received a license to build the kingdom’s first coffee production factory in the southwest city of Jazan.
↪↩ Closing Circuit
🚢 Cargo Seizure: Three insurance companies have rejected Chevron’s $57 million claim over the seizure last year of an oil cargo by Iran, according to a complaint filed on Tuesday in a U.S. court in California.
🇨🇳 Metal Manufacturer: Zhejiang Hailiang Co., a Chinese producer of copper tubes and rods, announced plans to invest $288 million to build a factory in Morocco.
🛫 Flight Partners: Saudia airline and Red Sea Global signed a partnership agreement that will furnish flight discounts and corporate travel rates for employees of the Saudi real estate developer.
💵 Cash Flow: Panax, an Israeli fintech startup that uses artificial intelligence to help companies manage cash flow, raised $10 million in a Series A funding round led by Team8.
🕹️ Drone Battles: Xtend, an Israeli maker of combat drone aircraft, raised $40 million in a Series B financing round with participation from Claltech.
🗣 Circuit Chatter
💺 Premium Seating: Emirates airline is reconfiguring some of its aircraft cabins to increase the size of its premium-economy section and scale back on its lower-cost ordinary economy seats, Bloomberg reports.
☪️ Islamic Banking: Saudi telecom group stc has obtained regulatory approval for the beta launch of stc Bank, which will specialize in providing Shariah-compliant fintech services.
🌐 Crypto License: Singapore’s crypto trading platform QCP Capital received “In-Principle Approval” from the Abu Dhabi Global Market’s regulatory authority to operate in the UAE.
🇭🇰 Hong Kong Link: The Qatar Financial Centre Authority signed a preliminary agreement with Hong Kong’s Financial Services Development Council to facilitate training and exchange programs and enhance connectivity.
🤝 Big Chill: Israeli business activity with the UAE has cooled but not stopped under the shadow of the Gaza war, with ongoing deals now conducted away from public scrutiny, Reuters reports.
🌍 Power Circuit
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, toured the 31st Arabian Travel Market at the Dubai World Trade Centre on Wednesday. During his tour, Sheikh Hamdan made stops at the pavilions for Emirates, flydubai, Abu Dhabi’s Department of Culture and Tourism, Saudi Arabia and Visit Qatar. He highlighted the role of tourism as a key driver for Dubai’s economic strategy.
Sheikh Hazza bin Sultan bin Zayed, a nephew of the late UAE President Sheikh Khalifa, died early today, according to a statement by the Presidential Court.
Sheikh Theyab bin Mohamed bin Zayed, Chairman of the Office of Development and Martyrs Families Affairs at the Presidential Court and Chairman of the Emirates Council for Rural Development, attended the signing of a AED73.5 million ($20 million) agreement between the Emirates Council for Rural Development and Mubadala aimed at funding community projects under the Emirates Villages programme.
➿ On the Circuit
Sheikha Amal Suhail Bahwan, Chair of the National Bank of Oman, and Vice Chair of the Omani conglomerate Suhail Bahwan Group Holding, acquired an equity stake of undisclosed size in the U.K.’s Monument bank.
Colm McLoughlin, Vice Chairman and CEO of Dubai Duty Free will retire after 41 years. COO Ramesh Cidambi was named Managing Director and will take McLoughlin’s place.
Jeff Zucker, CEO of UAE-backed Redbird IMI and former President of CNN, will discuss his recent media ventures today at the Wall Street Journal’s CEO Council in London.
Donia Abu Talib earned her formal qualification to represent Saudi Arabia in the women’s taekwondo competition at the Paris Olympics in July.
🎶 Culture Circuit
🖌️ Art Exchange: Louvre Abu Dhabi will host a new masterpiece on loan from Paris from November, exchanging Leonardo da Vinci’s ‘Saint John the Baptist’ for ‘Pyxis in the name of Al-Mughira,’ a 10th century container intricately carved out of ivory.
📷 Photo of The Day
🗓️ Circuit Calendar
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.
June 5, Hong Kong: Bloomberg Wealth Event. A gathering to bring actionable intelligence to portfolio managers and other dealmakers and analysts from asset managers and owners, family offices and hedge funds. Conrad Hong Kong.
June 23-26, National Harbor, Maryland: SelectUSA Investment Summit. The highest profile event in the U.S. to facilitate business investment by connecting thousands of investors, companies, economic development organizations and industry experts to make deals. Gaylord National Resort and Convention Center.
