The Daily Circuit
š Hello from the Middle East!
Today in The Daily Circuit, weāre looking at clues that Etihad Airways will hold an IPO, Qatarās testing of a digital currency, Saudi PIF bonds denominated in British Sterling and a new government cabinet in the works for Egypt. But first, Dubaiās retail shrine unveils its expansion plans.
Sitting at the base of the worldās tallest skyscraper where dozens of dancing fountains greet more than 100 million credit-card-wielding visitors a year, the Dubai Mall ranks as the biggest and glitziest shopping center in the Middle East. Now itās getting bigger and glitzier.
Mohamed Alabbar, founder of Emaar Properties, which built the 162-story Burj Khalifa that towers above, announced an expansion of the mall on Monday that will add 240 stores and restaurants to the 1,200 currently in operation. The $408 million plan to enlarge the Dubai landmark comes after Emaar posted a 70% increase in net profit last year and the UAE reported record tourism.
āThis expansion reflects Dubaiās ambitious vision to remain at the forefront of global innovation and culture, further solidifying our city’s position as a top global destination,ā Alabbar said in a statement.
The mall, which first opened in 2008, is anchored by Bloomingdaleās and Galeries Lafayette, with boutiques that include Chanel, Dior, Gucci, Armani, Louis Vuitton, Hermes and Dolce & Gabbana. The vast shopping galleries also house the Dubai Aquarium and Underwater Zoo, an Olympic-size skating rink and a 24-screen cinema complex.
š° Developing Stories
FIRST CLASS
Etihad Airways is moving ahead with plans for a possible IPO, the first for a major airline in the Middle East, CEO Antonoaldo Neves said in an interview with Bloomberg. The potential listing comes amid booming demand for air travel globally. Airlines have raised their profit forecast to $30.5 billion this year as passenger count is expected to reach a record 5 billion, the International Air Transport Association said during its annual meeting, which wraps up in Dubai today. Middle East carriers are faring particularly well, set to earn a net profit of $3.8 billion this year, up from $3.1 billion last year, according to the IATA. Profit per passenger is among the highest in the world, netting $15.20 compared to the global average of $6. Etihad, which has already recruited more than 1,000 cabin attendants this year, announced this week it is looking to add another 1,000 crew members. The UAE flag carrier will host recruitment drives from June until the end of the year in 19 locations, including Athens, Vienna, Singapore, Cape Town, Colombo and Jaipur.
FRESH MINT
The Qatar Central Bank has the infrastructure ready to circulate a national digital currency and will soon start an experimental phase that will operate through October. The state news agency reported this week that the central bank plans to focus on distributed ledger technology, enhancing liquidity and transactions with securities. Meanwhile, Sheikh Mansour bin Zayed, the UAEās Vice President and Chairman of the Central Bank of the UAE (CBUAE), chaired a meeting of the bankās Board of Directors in Abu Dhabi on Monday in which plans to introduce a digital currency and regulate cryptocurrencies were discussed. The CBUAE has participated in Project mBridge, in which interoperability for a digital currency was successfully tested earlier this year with the central banks of China, Hong Kong and Thailand and used for remittance payments to India. Digital currencies are coming into focus in the Gulf as governments respond to cryptocurrency market volatility and assert their monetary sovereignty, according to Qatari think tank Middle East Council on Global Affairs.
š² Sovereign Circuit
Public Investment Fund: Saudi Arabiaās sovereign wealth fund has initiated plans to issue bonds denominated in British sterling, Arab News reports. The PIF hired Barclays, BNP Paribas, HSBC, and JPMorgan as joint global coordinators of the sale. The kingdomās PIF-backed STC Group is, meanwhile, in the early stages of considering an offer for European telecom and pay-TV operator United Group, Reuters reports.
Mubadala: The Abu Dhabi sovereign wealth fundās Mubadala Capital unit hired Sam Merksamer as a senior member of its private equity team, with a focus on direct investments, Bloomberg reports. Merksamer, a partner at Rajeev Misraās One Investment Management, earlier worked at Softbank.
āŖā© Closing Circuit
ā Shipping Pools: Adnoc Logistics & Services said it will pay $1 billion for an 80% stake in Navig8 TopCo Holdings, an operator of global shipping pools, and buy the remaining 20% in 2027.
š Factory Pact: Khalifa Economic Zones Abu Dhabi (KEZAD) and NMDC Energy, a subsidiary of the UAEās National Marine Dredging Co., signed a 50-year leasing agreement in which the energy company will build a new $100 million manufacturing facility in KEZAD.
āļø Soaked Runways: The record rainstorm that flooded Dubai International Airport in April cost Emirates $110 million and will lead to a major review of the airlineās contingency processes, CEO Tim Clark said.
š On Track: French engineering firms Egis and Systra won an Egyptian government contract to supervise construction of two new high-speed electric rail lines that will run 1,325 kilometers from Cairo to Abu Simbel.
š£ Circuit Chatter
šŖš¬ Cabinet Remake: Egyptian President Abdel-Fattah El-Sisi instructed Prime Minister Mostafa Madbouly to form a new government as the country enacts major economic reforms after obtaining more than $50 billion in investments and loans.
š« Swedish Blacklist: Sweden’s Seventh AP pension fund said it blacklisted Saudi Aramco and six Chinese and Indian companies from its portfolio ābecause they do not act in line with the Paris Agreement due to large-scale oil or coal operations without transition plans.”
āļø Aircraft Shopping: Saudi Arabiaās Flyadeal, the low-cost subsidiary of national flag carrier Saudia, is in the early stages of deciding whether to expand its fleet with Boeing 787 aircraft or the Airbus A330neo, CEO Steven Greenway told Reuters.
š” Property Manager: Colife, a Dubai-based startup that runs a platform for managing rental properties, launched an office in Hong Kong and plans to operate in 10 major Asian and Middle East cities by 2028.
š± Iran Links: Whistleblowers say they have uncovered billions of dollars worth of previously undetected transactions carried out by Standard Chartered with Iran-linked entities, including sanctioned companies and terrorist organisations, the Financial Times reports.
š Power Circuit
Sheikh Abdullah bin Zayed Al Nahyan, UAE Minister of Foreign Affairs, met yesterday with Lawrence Wong, the newly appointed Prime Minister of Singapore. Sheikh Abdullah congratulated Wong on taking office and the pair discussed bilateral relations and the comprehensive partnership between their countries. The meeting in Singapore was also attended by Jamal Abdullah Al Suwaidi, UAE Ambassador to Singapore, and Saeed Mubarak Al Hajeri, UAE Assistant Foreign Minister for Economic and Trade Affairs.
Russian President Vladimir Putin will host government officials from Oman as the honored guest nation at his annual forum in St. Petersburg this week as the Kremlin looks to warm up economic ties with the sultanate.
āæ On the Circuit
Omar Al Olama, UAE Minister of State for Artificial Intelligence, said his country is seeking āa marriageā with the U.S. over technology development, speaking in an interview with the Financial Times.
James Hogan, former CEO of Etihad Airways and current Chairman of Abu Dhabi-based Knighthood Global, was inducted into Air Transport Worldās Hall of Fame at an awards ceremony in Dubai.
Hend Al Otaiba, UAE Ambassador to France, participated alongside Sultan Al Neyadi, Minister of State for Youth Affairs, in the āFirst Student Forum in Franceā organized by the Embassy of the UAE in Paris in collaboration with the Emirates World Youth Council in France on Monday.
Loia Fadel Muqames resigned as CEO of Al Ahli Bank of Kuwait after four years in the job. Ahmed Khalid Al Duwaisan, General Manager of Corporate Banking, was named acting CEO.
š¶ Culture Circuit
š Trend Point: Keen-eyed sneakerheads have spotted piles of Yeezy trainers on sale at half price at an Adidas outlet store in Dubai, prompting some existential questions about the once-viral fashion item, The National reports. Kanye Westās cult brand has suffered blowback from the rapperās fall from grace, although it hasnāt put some diehards off, with one fan asking, āHow much is a ticket to Dubai?ā
šļø Circuit Calendar
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 16-18, Across MENA: Eid Al Adha. Government offices and businesses are closed across the MENA region for the Islamic holiday. Dates are subject to sighting of the moon by state religious committees in each country.
June 22-23, New York City: Mubadala New York Sail Grand Prix. Flying catamarans compete at SailGPās two-day racing festival in New York Harbor. Governors Island.
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.
