👋 Hello from the Middle East!

Today in The Daily Circuit, we’re looking at Saudi Prince Alwaleed’s investment in Elon Musk’s AI company, EDB’s ambitious new financing plans, a channel to space exploration for Saudi Arabia’s sovereign wealth fund and a direct shipping line in the works between Oman and Jordan. But first, South Korea and China lay down the red carpet this week for MBZ.

Landing in Seoul this morning for a two-day state visit to South Korea, UAE President Sheikh Mohamed bin Zayed swiftly set the strengthening of ties with Asia’s business elite at the top of his agenda. He travels to Beijing tomorrow amid ongoing negotiations within the Gulf Cooperation Council on a proposed free trade agreement with China.

Ahead of ceremonies and strategic talks with South Korean President Yoon Suk Yeol, the Emirati leader met with leaders of the country’s biggest conglomerates to discuss expanding trade in fields ranging from construction and shipbuilding to green energy, the Korea Herald reports. Among those at the meeting were Samsung Electronics Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, Hyundai Motor Group Executive Chair Chung Euisun and GS Group Chairman Huh Tae-soo.

Sheikh Mohamed brought his own corporate heavyweights on the swing through Asia, including Dr. Sultan Al Jaber, the Minister of Industry and Advanced Technology who is Group CEO of the national oil company ADNOC and President of COP28, which led the U.N. climate summit in Dubai. Khaldoon Al Mubarak, Chairman of the UAE Executive Affairs Authority and Group CEO of the Mubadala sovereign wealth fund, is also traveling in the presidential delegation.

Other key UAE cabinet members on the trip are Minister of Energy and Infrastructure Suhail Al Mazrouei, Minister of Investment Mohamed Alsuwaidi and Minister of State for Foreign Trade Dr. Thani Al Zeyoudi. The four units of its new $20 billion Barakah power plant in Abu Dhabi were built by Korea Electric Power Corp. and a consortium of Korean companies.

MADE IN UAE

Emirates Development Bank (EDB) is loosening the purse strings, aiming to massively increase financing to the private sector by 2026. The bank announced it will provide financing worth AED 30 billion ($8.2 billion) by 2026, targeting the 13,500 companies operating in key sectors for the UAE’s diversification efforts, including renewable energy, industry, advanced technology, healthcare and food security, according to Shaker Zainal, Business Finance Director at EDB. On the sidelines of the Make it in the Emirates Forum on Monday, he said the bank has allocated $1.36 billion in financing for industrial projects so far this year. Access to financing is one of the top hurdles for small- and medium-sized enterprises looking to grow in the Gulf. To address the access to credit or equity financing gap, development banks across the region have cropped up in the last decade, with EDB launching in 2015. 

MUSK’S MACHINE

Saudi Arabia’s Prince Alwaleed Bin Talal and his Kingdom Holding Co. continue to rank among Elon Musk’s biggest backers, participating in the $6 billion Series B funding round of the tech billionaire’s start-up, xAI. In a blog post on xAI’s website, a description of key investors includes the Saudi prince’s personal office and his Tadawul-listed company. The kingdom’s sovereign wealth fund, the Public Investment Fund, acquired a $1.05 billion stake in KHC in 2022. The conglomerate, along with the private office of Prince Alwaleed, were jointly the second-largest investors after Musk’s Twitter takeover in 2022, according to a statement released by the Saudi prince at the time. xAI, which is focused on the development of advanced AI systems, is valued at $24 billion, following the latest funding round that saw participation from Valor Equity Partners, Vy Capital, Andreessen Horowitz, Sequoia Capital and Fidelity Management & Research Company. The cash will be used to take xAI’s first products to market as the Musk entity rises to challenge OpenAI’s ChatGPT, which is working on an update to its flagship AI product. 

Public Investment Fund: The Saudi sovereign wealth fund established its new Neo Space Group that will make strategic investments in satellite communications, earth observation, satellite navigation and the Internet of Things to help establish the kingdom as a leader in the space industry. Meanwhile, Jada, a fund of funds owned by the PIF, has backed a new fund from Dubai- and Singapore-headquartered healthcare private equity firm TVM Capital Healthcare, Bloomberg reports. The $250 million fund is one of the first health-care focused investment vehicles in the kingdom. 

Mubadala: MGX, the artificial intelligence mega-fund created in January through a partnership between Mubadala and G42, held its first board meeting this week, chaired by Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi. The board meeting was attended by Mubadala CEO and MGX Vice-Chair Khaldoon Al Mubarak, as well as Jassem Mohamed Bu Ataba Al Zaabi, Peng Xiao and Ahmed Yahia Al Idrissi. Meanwhile, Strata Manufacturing, a unit of the Abu Dhabi sovereign wealth fund, won a contract to supply key elements of the F50 catamarans in the SailGP boating race. Mubadala is a title partner in next month’s Mubadala New York Sail Grand Prix.

Oman Investment Authority: The Omani sovereign wealth fund signed a preliminary agreement with Jordan’s Social Security Corp. to establish a direct shipping line between the Jordanian port of Aqaba and several ports in the sultanate.

Lunate: FAB Securities, a unit of the UAE’s largest lender First Abu Dhabi Bank, has been named as the latest authorized participant for the Chimera Umbrella Fund by Lunate Capital, an Abu Dhabi-based investment management firm and subsidiary of Lunate Holding, to provide expertise and support in simplifying access to regional and global stock markets. The nine Lunate ETFs provide investors with access to various bourses, including in the U.S., China, Saudi Arabia, Kuwait, Turkey and Pakistan. The ETFs include conventional, Shariah-compliant and dividend-distributing share classes that can be bought and sold like stocks.

UAE President Sheikh Mohamed bin Zayed issued a directive for 65,000 books from the 33rd Abu Dhabi International Book Fair to be distributed to libraries at 220 schools across the country.

Sheikha Fatima bint Mubarak, widow of the UAE’s late President Sheikh Zayed and Chairwoman of both the General Women’s Union and the Family Development Foundation, co-hosted an “onboarding event” with PureHealth for the Emirati Women Chapter mentorship initiative, aimed at cultivating role models for professional women in the UAE.

Sheikh Mansour bin Zayed, UAE Vice President, Deputy Prime Minister and Chairman of the Presidential Court, visited the Make It in the Emirates Forum in Abu Dhabi on Monday, saying that the country seeks to raise levels of innovation and use artificial intelligence to make its products more efficient and competitive.

➿ On the Circuit

Mansoor Mohamed Al Hamed, Mubadala Energy CEO, is in Malaysia this week, where he has met with Prime Minister Datuk Seri Anwar Ibrahim. 

Mohamed Alabbar, Founder of Emaar, revealed details of the Dubai Creek Harbor development, a massive urban project comprising residential buildings and public parks. The head of Dubai’s largest developer said the firm is working with an undisclosed Chinese technology firm renowned for their expertise in multimedia installations for the “Music, Colour, and Fire Plaza.”

Adel Alsharji, Chief Operating Officer of Presight, will deliver a keynote address at GITEX Africa titled “Harnessing Big Data and Gen AI for Emergency Response Management” on Thursday, May 30. The G42-owned AI company plans to have a big presence at the tech conference, hosting talks and VIPs at its sponsored lounge. 

Dr. Craig Cook, CEO of DP World’s Aviv Clinics Dubai, talks about treatments to increase lifespan and medical tourism in an interview with Forbes Middle East. 

🎶 Culture Circuit

📺 Legal Drama: An Arabic adaptation of critically acclaimed TV series, “The Good Wife,” will be released on June 2, MBC Group has announced. “Moftaraq Toroq” follows the journey of Amira, an Egyptian woman who must confront the scandalous upheaval of her husband’s public career after 15 years dedicated to being a wife and mother.

📷 Photo of The Day

🗓️ Circuit Calendar

May 27-29, Dubai, UAE: Arab Media Summit. Organized by the Dubai Press Club, a gathering of media executives, content creators, students and digital storytellers. Dubai World Trade Center. 

May 29-31, Marrakech, Morocco: GITEX Africa. The second edition of the biggest tech and startup gathering in Africa. Place Bab Jdid. 

June 2, Muscat, Oman: Taiwan Trade Mission to Oman. Taiwan trade officials invite Omani investors and entrepreneurs for one-on-one meetings at conference. Crowne Plaza Muscat.

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 11-13, Rio de Janeiro, Brazil: Future Investment Initiative Priority Summit. Saudi Public Investment Fund holds FII conference for first time in Latin America. Copacabana Palace.

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.

July 15-26, Granada, Spain: ADIA Lab International Summer School. A course of lectures and case studies to explore the critical role of trust and safety in AI, examining the ethical, technical and societal implications of AI applications. University of Granada.