👋 Hello from the Middle East!

Today in The Daily Circuit, we’re looking at a $1.1 billion Emirati satellite contract with Europe’s Airbus, Saudi Aramco’s tilt to foreign investors in its latest stock sale, renewed efforts to engineer the PGA-LIV Golf merger and free Wi-Fi for pilgrims to Mecca. But first, Dubai anchors AI in its bureaucracy.

The C-suites have gotten a bit bigger in Dubai’s government offices. Over the weekend, Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, installed 22 Chief Artificial Intelligence Officers across departments that govern areas such as community development, human resources, customs, policing and civil aviation. 

“The appointment of the new Chief AI Officers in the Dubai government marks the initial phase toward realizing our vision for the future of government work,” Sheikh Hamdan said. “We are confident that these officers will intensify their efforts and go the extra mile in translating our vision into reality.”

It is a quintessentially Dubai move. The UAE’s biggest city has long sought to be known for flexible policymaking, a business-friendly environment and smart government services as it looks to lure private sector development, with the likes of Microsoft, Meta and Google taking up regional headquarters in the glitzy city. The Dubai Future Foundation, which shares an office tower with UAE Prime Minister and Ruler of Dubai Sheikh Mohammed Al Maktoum, for example, is a think tank designed to help guide government policy as it gears for the future. 

While Dubai has prioritized business-friendliness and agile governance amid the artificial intelligence revolution, Abu Dhabi has taken a different tact. The UAE capital, a bit more than an hour south of Dubai, has leveraged its deep sovereign wealth fund pockets to plow cash into government-backed entities, investment vehicles and startups both at home and abroad. Locally, this has yielded AI champion G42, the applied research group Advanced Technology Research Council and an AI-dedicated research university, the Mohamed bin Zayed University of Artificial Intelligence. It has also given Abu Dhabi Inc. a footprint in tech hubs like Silicon Valley, with major investments in companies like semiconductor startup Cerebras and self-driving firm Waymo.   

Meanwhile, over the weekend, David Rubenstein, Co-Founder and Co-Chairman of The Carlyle Group, met with Sheikh Maktoum bin Mohammed, the First Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance and President of the Dubai International Financial Center, as competition heats up to attract private capital to the region. 

“We discussed the unique model for public-private partnerships established by the UAE and Dubai, and the new investment opportunities resulting from this approach,” Sheikh Maktoum wrote in a post to Instagram. 

REACHING UP

The UAE space program is taking a $1.1 billion leap forward by contracting with Airbus to build two new satellites. Abu Dhabi-based Yahsat signed a contract with European aerospace company Airbus Defence and Space to design and build the AY4 and AY5 satellites based on the widely used Eurostar Neo platform. Yahsat won a $5.1 billion contract last year to provide satellite service for the UAE government, primarily through the AY4 and AY5 models that are scheduled for launch in 2027 and 2028. Yahsat merged with Emirati space company Bayanat last December to form a new company focused on satellite communications and artificial intelligence with an implied market value at the time of $4 billion. Among the key backers of the combined entity are the Mubadala sovereign wealth fund, AI developer G42 and International Holding Co., the Abu Dhabi investment company led by Sheikh Tahnoon bin Zayed.

REACHING OUT

Most of the Saudi Aramco shares sold in a secondary offering last week went to foreign investors, changing the script from five years ago when the oil company’s $29 billion IPO was bought up primarily by domestic players. International banks, private equity funds and other investors were allocated more than half of the shares on offer in Saudi Aramco’s $11.2 billion stock sale, the company said in a regulatory statement to the Tadawul stock exchange. Aramco shares rose 1% on Sunday, the first day of trading after the new offering. The deal generated strong demand from the U.S., the U.K., Europe, Hong Kong and Japan, Bloomberg reported.

Mubadala: Stake, a Dubai-based real estate investment platform raised $14 million in a Series A funding round led by Middle East Investment Partners. Investors included Mubadala, Saudi Aramco’s Wa’ed Ventures and New York-based Republic Maximal. Fast-fashion online retailer Shein, which is backed by Mubadala, probably won’t qualify for the FTSE 100 Index even as the Singapore-based company gears up for an IPO that could be one of the largest ever in the U.K., The Times of London reports. 

Public Investment Fund: The PIF met with the PGA Tour Enterprises Transaction Subcommittee in New York City on Friday as negotiations over a tie-up between the PIF-owned LIV Golf and North America’s top tour continue past the one-year mark. “Progress was made,” according to a statement from the subcommittee, which added meetings are happening several times a week “to work through potential deal terms and come to a shared vision on the future of professional golf.” Attendees included PGA Tour Commissioner Jay Monahan, PIF Governor Yasir Al-Rumayyan, as well as Strategic Sports Group principal John Henry and players Tiger Woods and Rory McIlroy.

Qatar Investment Authority: The QIA has purchased a 36% stake in Qatar District Cooling Co. (Qatar Cool), the country’s chilled water utility, for $220 million from Qatari master developer United Development Co.

↪↩ Closing Circuit

 🏦 Buying Banks: Morocco’s Holmarcom Group completed its acquisition of Credit Agricole’s entire stake in Credit du Maroc and now owns nearly 80% of the lender.

💳 Pay Up: Banknbox Egypt, a developer of digital payment technology, announced strategic partnerships with banks and fintech firms in eight countries during the first half of 2024, including Qatar, Iraq, Libya, Bangladesh and Moldova.

🇸🇦 Shrinking Economy: Saudi Arabia’s real GDP shrank 1.7% in the first quarter, compared to a year earlier as a decline in oil activities cut growth. The kingdom’s GDP shrank 3.7% in the fourth quarter of 2023. The decline in the first quarter was the third consecutive quarter of year-on-year contraction in the kingdom.

⚗️ Cell Destroyer: New Phase, an Israeli medical startup, received FDA approval to begin clinical trials in the U.S. for its cancer-cell destroying treatment.

🗣 Circuit Chatter

💺 Frequent Flyer: Indigo, India’s largest airline, is considering an expansion of its service to Oman, Indigo CEO Pieter Elbers told the Oman Daily Observer.

💊 Drug Hub: Abu Dhabi’s Department of Health is teaming up with the Abu Dhabi Investment Office (ADIO), Etihad Airways and AD Ports, to promote the UAE capital as  a global pharmaceutical and distribution hub.

🕌 Wi-Fi Hajj: Saudi Arabia is introducing free Wi-Fi for pilgrims visiting the greater Mecca metropolitan area, including in the Al-Tanaim and Al-Hal mosques. According to the Saudi Press Agency, the new service will enable visitors to find answers to Hajj-related questions and view related instructional videos.

🛫 China Connection: Cathay Pacific plans to launch direct flights in October between Hong Kong and Saudi Arabia as part of a plan to strengthen links with countries participating in China’s Belt and Road infrastructure-building initiative.

⛽ LNG Processor: Egypt is preparing to receive a Norwegian floating storage regasification unit for liquified natural gas by mid-June to meet high summer demand, Asharq Business reports.

🩺 Abortion Terms: The UAE Ministry of Health and Prevention is introducing new regulations for legal abortions, including the appointment of regional medical committees to evaluate abortion requests that include three doctors including an obstetrician-gynecologist and psychiatrist.

🌍 Power Circuit

Saudi Prince Salman bin Sultan, Emir of the Medina Region, and Minister of Interior Prince Abdulaziz bin Saud inaugurated the kingdom’s Smart Pass initiative at Prince Mohammad Bin Abdulaziz International Airport in Medina. The program aims to speed up the entry process at customs by employing artificial intelligence, facial recognition and other technologies.

UAE President Sheikh Mohammed bin Zayed met members of the Al-Ain Football Club at the Al Bahr Palace in Abu Dhabi to congratulate them on winning the Asian Champions League crown for a second time.

Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, approved the launch of the Food and Water Abundance Development Complex to boost efforts to ensure food and water security.

➿ On the Circuit

Dara Khosrowshahi, CEO of Uber, called the company’s $3.1 billion acquisition of Dubai-based Careem in 2020 “one of the best acquisitions that Uber has made” with the two companies still operating separately in the region, in an interview with The National. “Careem represented an opportunity to buy into and to build on the entrepreneurship that we saw in the Middle East,” he said. 

Mohammad Al Fahim has been hired by U.S. asset management giant Blackrock as Managing Director and Head of the UAE to lead client business in the UAE, Oman and Bahrain. He was previously at Goldman Sachs. 

Sanjay Advani and Nisar Sindhi have been hired by Swiss wealth manager Julius Baer Group Ltd. as managing directors to strengthen its business with wealthy Indians in Dubai. Advani was previously at UBS and Sindhi was at JPMorgan.

🎶 Culture Circuit

🎨 Art Opening: Saudi Arabia is opening its first digital art museum – called teamLab Borderless Jeddah – in the Al Balad area’s Culture Square today. Spanning 10,000 square meters, the new museum in the historic district will highlight art based on light, sound and touch.

⛰️ Exit through Gift Shop: As the big money crowd arrives in Switzerland for the Art Basel art fair, Puck columnist and auction house insider Marion Maneker laments the loss of a sense of urgency and consequence at the famed annual event – calling out the digital pre-sales and attempts to monetize the Art Basel brand by selling “merch.”

📷 Photo of the Day

🗓️ Circuit Calendar

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.

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.