👋 Hello from the Middle East!

Today in The Daily Circuit, we’re looking at the latest IPOs on the Saudi Tadawul, a new chip hub in Riyadh, Oman Investment Authority’s surging assets and a fifth Football League Trophy for Man City — if club Chairman Khaldoon Al Mubarak has his way. But first, the UAE’s powerbrokers rub elbows with Obama. 

UAE National Security Advisor Sheikh Tahnoon bin Zayed concluded a three-day trip to Washington, D.C. on Wednesday as the UAE and U.S. look to nail down a common policy framework that protects intellectual property and data. Amid increasing commercial activity between the two countries on advanced technology, artificial intelligence is among the fastest-growing areas of bilateral commerce, the UAE Embassy to the U.S. noted in a summary of Sheikh Tahnoon’s visit.

The relationship is a two-way street: more than $1 trillion is currently invested by the UAE in the U.S. economy, with significant backing from Emirati funds in semiconductors, AI, space and clean energy. UAE Ambassador to the U.S. Yousef Al Otaiba called the U.S. “our partner of choice” on AI development with “ambitious plans to do even more.”  

Sheikh Tahnoon, who is the brother of UAE President Sheikh Mohamed bin Zayed and chairman of sovereign wealth funds Abu Dhabi Investment Authority and ADQ, met with former President Barack Obama on Wednesday to discuss joint efforts to use technology to improve education. 

He also met with his counterpart Jake Sullivan on Tuesday and held discussions with Secretary of Commerce Gina Raimondo, a key figure in Microsoft’s $1.5 billion investment in G42. Others who met with Sheikh Tahnoon included Deputy Secretary of State Kurt Campbell; Deputy Secretary of the Treasury Wally Adeyemo, Director of National Intelligence Avril Haines; Principal Deputy National Security Advisor Jon Finer; and Special Presidential Coordinator for Global Infrastructure and Energy Security Amos Hochstein. Also, White House Coordinator for the Middle East and North Africa Brett McGurk; Assistant Secretary of State for Near Eastern Affairs Barbara Leaf, Deputy Assistant Secretary of Defense for Middle East Policy Dan Shapiro; Senator Chris Coons (D-DE) and Senator Mark Warner (D-VA).

Traveling with Sheikh Tahnoon were UAE Minister of Investment Mohamed Alsuwaidi; Executive Affairs Authority Chairman and Mubadala Investment Co. CEO Khaldoon Al Mubarak; Supreme Council for National Security Secretary-General Ali Al Shamsi; National Emergency Crisis and Disaster Management Authority Chairman Ali Al Neyadi and G42 CEO Peng Xiao, who is a member of the Artificial Intelligence and Advanced Technology Council.

In a banner year for raising funds on Saudi Arabia’s Tadawul stock exchange, the latest candidate to make preparations for going public is Arabian Oud, a 42-year-old perfume retailer that operates 1,200 stores in 37 countries. The Dubai-based company recently hired two banks, Emirates NBD Capital and SNB Capital, to start arrangements for an IPO in Riyadh, Bloomberg reports. Details such as timing and valuation are still under discussion and subject to change, the news agency said. A share sale for Arabian Oud would come at a fertile time for deals in Saudi Arabia. Four recent IPOs in the kingdom drew a combined $176 billion in institutional investor orders. Saudi Aramco, meanwhile, started a $12 billion secondary share sale on Sunday while Saudi healthcare group Dr. Soliman Abdel Kader Fakeeh Hospital Co. raised $91 billion as it started trading this week. And Saudi Arabia’s Leaf Global Environmental Services, which is offering 30% of its share capital in an IPO has set the final price at 50 riyals ($13.33) per share, potentially raising SAR 75 million ($20 million).

CHIPPY MOVE

Saudi Arabia has launched a new strategy to become a hub for semiconductor design as part of the kingdom’s plan to diversify its oil-focused economy. The National Semiconductor Hub will look to back and develop semiconductor companies that can design new chips with a $266 million initial capitalization, saying on Wednesday that it wants to attract 50 firms to Saudi Arabia by 2030. The hub will focus on simple chips to start — not the advanced chips that power generative artificial intelligence and military technology, Bloomberg reported. Plans for the chip hub come as more AI startups are setting up shop in the kingdom, lured by incentives and the possibility of lucrative government deals, The Circuit reports.

Mubadala: Hakluyt Capital, the investment arm of a strategic advisory firm started by former MI6 intelligence officers, has raised its first venture capital fund with the Abu Dhabi sovereign wealth fund among its backers, surpassing a target of $50 million, Bloomberg reports. Meanwhile, Austrian content management software firm Storkblok raised $80 million in a Series C funding round with participation from asset management unit Mubadala Capital and Highland Europe as well as participation from existing investors like 3VC and venture capital arm Mubadala Ventures. And China-headquartered polysilicon manufacturer GCL Tech has partnered with MDC Power, a unit of Mubadala Investment Co., to build a polysilicon factory, a material commonly used in semiconductor chips and solar panels, in the UAE. 

Oman Investment Authority: Oman’s sovereign wealth fund recorded a 9.95% return in 2023, compared to 8.80% in 2022, as its total assets under management surged by more than OMR1 billion ($2.6 billion) to reach OMR19.24 billion ($50 billion) last year, according to the fund’s annual report released this week. 

Mumtalakat: The Bahraini sovereign wealth fund said it has formed a strategic partnership with Abu Dhabi’s Mubadala-backed M42 Group to launch an Amana Healthcare facility in Bahrain that provides medical, pharmaceutical and other health services.

Public Investment Fund: The board of NEOM, the futuristic mega-project backed by the Saudi sovereign wealth fund, has unveiled Magna, a consolidation of a dozen tourism destinations along the Gulf of Aqaba comprising 15 luxury hotels and 2,500 residences.

UAE Energy Minister Suhail Al Mazrouei sought to reaffirm the country’s commitment to OPEC+, telling a panel in the Russian city of St. Petersburg on Thursday that “UAE has been committed to this group, committed to the consumers and the market.” 

Manchester City Chairman Khaldoon Al Mubarak said the English Premier League club would “absolutely” be targeting five titles in a row, after its historic four-title streak was cemented with a 3-1 win over West Ham United last month. “I remember just going down to the pitch and just telling almost everybody that I saw, ‘Excellent. Fantastic result. We’re so proud. But now we’re going for five in a row,” Al Mubarak, who is also CEO of Mubadala Investment Co., said.

U.K. Prime Minister Rishi Sunak has put forward JPMorgan Chase CEO Jamie Dimon and former Google Chair Eric Schmidt for U.K. honors, the Financial Times reports.

David Rubenstein, Co-Founder and Co-Chairman of Carlyle, shared a light moment with Mohammed Alardhi, the Executive Chairman of Bahrain-headquartered Investcorp, at SuperReturn International Berlin on Wednesday, asking him if he could take over control of a passenger plane in an emergency situation. “I will but the landing may be hard for them,” Alardhi, a former fighter-pilot, joked. He returned fire on the new owner of the Baltimore Orioles, quipping “Talking about these things, it’s also dangerous to buy a baseball team.”

Oneworld CEO Nat Pieper told Bloomberg that the global airline group led by American Airlines and British Airways is planning to launch a tech platform which will allow passengers to check-in one time across different carriers, speaking on the sidelines of the IATA annual meeting in Dubai on Monday.

🎶 Culture Circuit

🛎️ New Edition: The Edition, the Marriott-owned hotel concept dreamed up by Studio 54 creator Ian Schrager, has opened its first hotel in Saudi Arabia. The five-star Jeddah Edition, on the city’s glittering Corniche, embodies the brand’s signature understated aesthetic and laid-back vibes, The National reports in the first review of the property. The 52 spacious rooms and 11 suites boast views of the F1 Grand Prix Circuit and the Jeddah Yacht Club & Marina.

📷 Photo of the Day

🗓️ Circuit Calendar

June 5-6, Hong Kong: Greenwich Economic Forum. A convening of global thought leaders in finance, business, government, and media. HKEX Connect Hall.

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 throughout the 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 SailGP’s 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.