👋 Hello from the Middle East!

Today in The Daily Circuit, we’re looking at the latest share sale out of Saudi Arabia, AI power players like Nvidia making their pitch at Dubai’s Museum of the Future, the mud-brick palaces dusted off in Saudi’s tourism push and a possible windfall for ADQ’s PureHealth. But first, the FII crowd has landed in Rio de Janeiro.  

Saudi Arabia’s Future Investment Initiative, which hosts the annual “Davos in the Desert” gabfest, begins its first gathering in Latin America today. Following a buzzy meeting of FII PRIORITY in Miami earlier this year, the kingdom is broadening its sphere of influence with a summit drawing some of South America’s biggest names in business and government to the Copacabana Palace in Rio de Janeiro. This iteration will delve into climate action, the Gulf’s emergence among the BRICS nations and new technology. 

FII, which counts the Public Investment Fund as a founding partner, is bringing together powerbrokers amid a flurry of trade activity between Saudi Arabia and Brazil. The two countries have discovered common ground on food security, mining and aviation, with Brazil hitting a 10-year high in export activity to the kingdom in 2023. 

The most recent deals include an agreement between Lulu, the Middle East’s biggest supermarket chain, and Brazil’s trade agency to promote Brazilian foodstuffs in the Saudi market, signed last week. In May, Brazilian mining giant Vale sold a 10% stake of its base metals unit for $2.5 billion to Manara Minerals, a joint venture between Saudi mining firm Ma’aden and the PIF. That same month, Brazilian aviation company Embraer inked cooperation agreements in the kingdom, with the airplane manufacturer planning to build or assemble its aircraft in Saudi Arabia under the deal. All of this comes as the kingdom mulls opening an investment office in South America’s biggest economy.

Speakers on the agenda at this FII gathering include Yasir Al-Rumayyan, Governor of the Public Investment Fund and Chairman of the FII Institute; Reema Bint Bandar Al Saud, Saudi Ambassador to the U.S.; Faisal Bin Bandar Al Saud, Chairman of the Saudi Esports Federation; and Mike Pompeo, former U.S. Secretary of State. Also scheduled to speak are Khalid bin Abdulaziz Al-Falih, Saudi Minister of Investment; Martin Sorrell, Executive Chairman of S4 Capital Group; André Esteves, Chairman of BTG Pactual; Bernard Mensah, President of International at Bank of America; and Julia Dias Leite, CEO of the Brazilian Center for International Relations.

📰 Developing Stories

POWER PUSH

Saudi Arabia’s energy firm Acwa Power is planning to raise 7.1 billion riyals ($1.9 billion) by issuing stock to existing shareholders days after Saudi Aramco landed $11.2 billion in its own share sale. Acwa Power, which is 44% owned by the Saudi Public Investment Fund, is one of the leading firms in Saudi Arabia’s decarbonization and diversification strategies. The company is planning to double annual investments to $2.5 billion in an international push into renewables and hydrogen, as well as projects in the kingdom, Bloomberg reports. Acwa’s shares have increased about 570% since listing on the Saudi Tadawul Exchange in October 2021. 

CHIPS FOR SALE

The convening of an “AI Retreat” at Dubai’s Museum of the Future today has presented a sterling opportunity for some of the biggest names in chips and data storage to show off their wares before some of the UAE’s top decision-makers in government. Executives from Nvidia, Google Cloud, Microsoft, AWS, Oracle and IBM are all taking the stage today to tout their products as the UAE’s biggest city accelerates plans to implement AI across government services and attract more business from deep tech firms. On the sidelines of the gathering, Omar Al Olama, UAE Minister of Artificial Intelligence, said the UAE is looking to position itself as a top destination for advanced chip manufacturing, in an interview with Bloomberg. He added that he believes U.S. security concerns over technology leaking from the Middle East and into China are understandable. “Sometimes you are a victim of the neighborhood you are in,” he said.

UNBURIED TREASURE

Saudi investment in heritage tourism is starting to pay off

Across Saudi Arabia, ancient sites filled with the remnants of mud-brick imperial palaces and rocky Nabatean tombs are coming back to life, Rebecca Anne Proctor writes for The Circuit.

Desert Drawcard: From Riyadh’s Diriyah royal district and storied Red Sea port of Jeddah to the desert region of AlUla, the kingdom is spending lavishly to uncover its buried past and use it as a draw for both foreign and domestic tourists.

Rich Rewards: Over the last five years since Saudi Arabia first introduced online visas for international visitors, tourism has grown dramatically. More than 100 million visitors entered the kingdom in 2023, a 56% increase from 2019. 

Click here to read the full story.

💲 Sovereign Circuit

Investment Corp. of Dubai: Brookfield Asset Management agreed to sell the Conrad hotel in Seoul to ARA Korea REF, a real estate fund, for about $302 million, Bloomberg reports. In April, Brookfield and the Dubai sovereign wealth fund announced the sale of a 49% stake in Dubai’s $1.5 billion ICD Brookfield Place tower to a pair of Middle Eastern investors.

ADQ: Abu Dhabi energy company TAQA, owned by ADQ, has confirmed it ended talks with Spanish group Criteria Caixa to jointly take over Spanish gas and power firm Naturgy Energy Group. TAQA had been holding discussions with private equity investment firms GIP and CVC to acquire their shares in Naturgy, according to a statement to Abu Dhabi Securities Exchange on Tuesday. Meanwhile, ADQ-backed PureHealth is in line for a potential $800 million windfall, if U.S. subsidiary Ardent Health’s July ambitions for an IPO go to plan.

↪↩ Closing Circuit

🪪 Passport Printer: Abu Dhabi-based E7 Group plans to invest $50 million in its E7 Security business, aiming to strengthen its passport manufacturing capacity and enter the digital tax stamps market.

📱 Hold the Phone: HMD Global, the Finnish manufacturer of Nokia mobile phones, plans to produce 4 million traditional and smartphones annually in Egypt for export across Africa.

💸 Building Portfolio: UAE-based Magellan Group agreed to pay more than $750 million to acquire Danish Ship Finance as it seeks to build a diverse investment portfolio.

🗣 Circuit Chatter

🩺 AI Healthcare: Saudi Arabia is aiming to integrate artificial intelligence across its healthcare sector by 2030, developing AI applications ranging from robot-assisted surgery and imaging to genomics and medical education.

🏭 Aluminum Complex: Oman is planning to build a special complex for aluminum manufacturers in Suhar Industrial City, assembling an interagency team to visit the site and help the industry become competitive.

👛 Super Suq: Bahrain is moving ahead with eight-year-old plans to give the Manama traditional suq, or market, a modern facelift, using technology to improve the visitor experience.

🏗️ On Hold: U.S. chipmaker Intel is halting plans for a $25 billion factory in Israel, Calcalist reported.

⛱️ No R&R: American activist hedge fund Elliott Investment Management, founded by Paul Singer, is gearing up for a busy summer after taking seven new stakes in major companies around the world since April, according to data compiled by Bloomberg.

Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai, on Monday approved legislation addressing the expansion of self-driving vehicles and electric cars. Sheikh Mohammed chaired the UAE Cabinet meeting at Qasr Al Watan in Abu Dhabi, where the Cabinet reviewed and approved a range of initiatives, including the Ethical Charter of Development and Use of AI, which defines how AI should be used ethically and responsibly. At the same meeting, the Cabinet reviewed progress on the Emirati Genome Program, an effort to sequence the DNA of every citizen in the country. 

UAE President Sheikh Mohamed bin Zayed received a phone call on Monday from Mark Rutte, Prime Minister of the Netherlands. The pair discussed bilateral relations and reviewed regional and international developments.

Hassan Berkani, President of the Casablanca-Settat Chamber of Commerce, Industry and Services, confirmed that the UAE is the largest Arab investor in Morocco, with investment volumes expected to double in the coming years, speaking on the sidelines of a trade mission organized by the Dubai International Chamber.

💃 Eid Entertainment: While many UAE residents will take the opportunity for a short vacation for the Eid Al Adha holidays, falling on June 16-18 this year, there are also plenty of live shows for those staying close to home. The National rounds up 10 concerts and events, from late Egyptian singer Umm Kulthum’s hologram concert returning to Dubai, to “Matilda, The Musical” at Abu Dhabi’s Etihad Arena.