This week we’re looking at Lunate’s first six months as an Abu Dhabi power player, anticipation building up for the Gulf’s first casino, ADIA’s backing for Texas-based Fisher Investments and the passing of Lebanese chocolatier Nizar Choucair, the founder of Patchi. But first, Saudi dealmakers are popping up in Cannes and Rio de Janeiro. 

Saudi Arabia is making a splash at the Cannes Lions International Festival of Creativity in the South of France this week, sending a delegation from its tourism authority to rub elbows with titans of advertising and communications.

The linen-clad creative class are plying La Croissette, the main drag where the festival’s sponsored talks and parties take place through Friday along the yacht-dotted French Riviera. Saudi Arabia’s Cannes attendees are among executives from digital ad giants like Meta, LinkedIn and Google, big spenders from the Fortune 500, as well as art directors, set designers, PR fixers and ad execs. 

Saudi Tourism Authority CEO Fahd Hamidaddin stood in the Forum, the site of the conference’s main stage, delivering his opening keynote on Monday before a screen that read, “Saudi transformation is a challenging act of creativity.” 

He spoke about how Saudi Arabia is putting creative work at the center of its economic diversification efforts and how the industry can play a role in shaping global perceptions of Saudi Arabia. “If you think you know Saudi, think again,” Hamidaddin said. “Even Saudis don’t recognize it amid the changes and transformations happening every day.”

Saudi Arabia’s drive to lure international visitors and investors spread as far as Brazil last week, where Tourism Minister Ahmed Al-Khateeb addressed 1,500 delegates attending the Future Investment Initiative Priority Summit. Speaking at the Copacabana Palace hotel in Rio de Janeiro, Al-Khateeb said his nation is committed to sustainable tourism in its sprawling $1.5 trillion Neom mega-project.

“The kingdom’s doors are open for business,” the Saudi minister said at the summit, a spin-off from the annual “Davos in the Desert” conference in Riyadh that is backed by the Public Investment Fund. “We are keen to provide a favorable environment for international investors, and the investment facilities aim to make doing business in the kingdom in the most efficient and the least expensive way.”

As temperatures soar in the Arabian Gulf – the mercury regularly rises beyond 100 degrees Fahrenheit in July and August – the events calendar is set to quiet down in the region. But decision-makers will continue to pop up in places like Cannes, or the Mubadala-sponsored Sail Grand Prix getting underway in New York City this weekend. These make for important items on the calendar, keeping the pace of conversations and dealmaking alive even through the dog days of summer. 

Welcome to The Weekly Circuit. Read on for the stories, deals and players at the top of the news across the MENA business landscape. Please send comments and story tips to [email protected].

ABU DHABI INC.

Lunate’s $50 billion launch made it an overnight MENA powerhouse

Nearly six months after its New Year’s Day launch, Abu Dhabi-owned Lunate has emerged as a major player in the MENA investment landscape, Omnia Al Desoukie reports for The Circuit.

Rapid Growth: Starting as a $50 billion alternative investment manager with a pedigree from the upper reaches of the Royal Court, the firm has more than doubled its assets under management and now deploys $105 billion in capital.

Japan Connection: Most recently, Lunate announced the launch of the Chimera S&P Japan UCITS ETF, an exchange-traded fund to track Japan’s top 30 equities, listing on the Abu Dhabi Securities Exchange as of May 29.

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HIGH STAKES

Gulf’s first casino resort sparks building boom in Ras Al Khaimah

Anticipation of the Gulf’s first sanctioned casino complex has sparked a development boom in the UAE emirate of Ras Al Khaimah, with five-star resorts and multi-million dollar villas rapidly springing up from the desert sands, The Circuit’s Jonathan Ferziger reports.

Island Dream: Las Vegas casino operator Wynn Resorts last year announced plans for a $4 billion resort on the artificial Marjan islands, about one hour’s drive north of Dubai, which had been all but abandoned since they were completed in 2013.

Skyline of Cranes: Now, more than 20 developers are busy at work with Marjan, the owner of the islands, planning to build 9,000 new hotel rooms and as many villas, Bloomberg reports.

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Abu Dhabi Investment Authority: ADIA and Advent International have agreed to invest between $2.5 billion and $3 billion in money-management firm Fisher Investments in a deal that values Plano, Texas-based Fisher at about $13 billion, the Wall Street Journal reports. ADIA has acquired a minority stake in India-listed Paras Defense and Space Technologies Ltd for more than Rs628 million ($7.5 million). Meanwhile, a private equity consortium led by CVC Capital Partner and ADIA subsidiary, Platinum Ivy, has made a revised bid for the UK-based Hargreaves Lansdown valuing it at £5.4 billion ($6.9 billion).

Mubadala: The Abu Dhabi sovereign wealth fund acquired a $37.4 million stake in Chicago-based software developer Thoughtworks and a $54 million stake in German drug discovery startup Evotec. Meanwhile, Abu Dhabi Catalyst Partners, a $1.65 billion joint venture between Mubadala Capital and Florida-headquartered investment company Alpha Wave Global, has invested in U.S-based technology-focused private equity firm Haveli Investments to fund its expansion by opening its first office outside of North America in Abu Dhabi. Mubadala also invested almost $1.5 billion in New York-based Aquarian Holdings, which counts Redbird Capital Partners among its largest backers, Bloomberg reports.

Qatar Investment Authority: The Qatari sovereign wealth fund is backing Warburg Pincus in the private equity firm’s buyout of an Indian housing finance company, VC Circle reports.

ADQ: AD Ports Group, which counts ADQ as its largest shareholder, will invest $4.7 million over the next 15 years to operate three cruise terminals in Egypt. The deal with the Red Sea Ports Authority will see the ports operator develop, operate and manage the terminals at Safaga, Hurghada, and Sharm El Sheikh ports, expected to be operational by 2025.

The Sovereign Fund of Egypt: E-Z International, TSFE’s health-focused subsidiary fund, has acquired about 20% of Care Pharmacies for $1.6 million, Asharq Business reports, buying 45 of the company’s 220 branches nationwide.

Citizens Fund: The Israeli sovereign wealth fund has received more than $1.8 billion from government levies on profits from natural gas exports pumped in its offshore fields.

↪↩ Closing Circuit

🇲🇦 Gas Buyout: U.K. gas company Sound Energy sold its subsidiary, Sound Energy Morocco East, to Morocco’s largest mining company, Managem, for $45 million.

🛰️ Qatari Acquisition: Kazakhtelecom will sell MT-S, one of its two mobile communications subsidiaries, to Qatar’s Power International Holding for $1.1 billion, the Kazakh government said.

🏡 Rental Hub: Qstay, a Dubai-based hospitality and rental property management platform, has raised $4.6 million in a pre-Series A funding round.

🏙️ City Vision: Zencity, an Israeli developer of smart city platforms for local governments, raised $40 million in a Series C financing round led by StepStone Group.

🪴 Climate Finance: Canada’s Brookfield Asset Management said it is looking to raise $5 billion for a new climate fund backed by the UAE’s Alterra fund, adding financial details to plans announced in December at COP28.

🗣 Circuit Chatter

🎒 Lesson Plan: A consortium led by Canada’s Brookfield Asset Management is investing some $2 billion in GEMS Education, a Dubai-based family business founded by Indian immigrants that has become one of the world’s largest private education providers, Bloomberg reports.

🤝 Pariah to Partner: The transformation of U.S. President Joe Biden’s relationship with Saudi Arabia, from its contentious beginning when he took office in 2021 to the blossoming strategic and commercial ties evident now is explored in the Financial Times.

🔌 Connecting Grids: A new direct link between the electricity grids of Oman and the GCC Interconnection Authority is under design and expected to be completed by the end of 2026, the Oman Observer reports.

💥 Arms Race: Israel’s defense exports reached a record $13.1 billion last year, up $500 million from 2022, as escalating conflicts in Ukraine and other hotspots sent global weapons sales soaring.

🏅 Keeping Competitive: The UAE cracked the Top Ten list of most competitive world economies, placing seventh in the annual ranking by the Swiss-based International Institute for Management Development (IMD). Among Middle East states, Qatar came in 11th place, Saudi Arabia 16th and Bahrain 21st. Singapore, Switzerland and Denmark earned the top spots on the IMD honor roll.

🌍 Power Circuit

UAE President Sheikh Mohamed bin Zayed attended the G7 summit of global leaders in southern Italy on Friday, where he was greeted by the host, Italian Prime Minister Giorgia Meloni, and participated in talks on artificial intelligence and energy transition. Though invited to the G7, Saudi Crown Prince Mohammed bin Salman sent regrets, citing commitments connected to the annual Hajj pilgrimage to Mecca.

Ukrainian President Volodymyr Zelensky said he held “productive and energetic” talks with Saudi Crown Prince Mohammed bin Salman in Jeddah on June 12, focusing on last week’s “Peace Summit” in Switzerland and improving bilateral ties.

Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai, chaired a cabinet meeting in which ministers approved a new $458 million housing assistance package.

Egyptian President Abdel Fattah El-Sisi arrived in Saudi Arabia on Thursday and prayed at the Prophet’s Mosque in the holy city of Medina. He was received by Prince Salman bin Sultan, Governor of the Medina region.

➿ On the Circuit

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef is planning a July visit to Chile, the second largest supplier of lithium, which is needed for the kingdom’s budding electric vehicle business.

Nizar Choucair, founder of Lebanon’s Patchi chocolate shops, died in his eighties after turning his family confectionery into a global brand with 200 branches worldwide.

Arif Amiri, DIFC Authority CEO, said Dubai’s boom in IPOs underscores the city’s status as a thriving hub for capital markets, Zawya reports.

Roger Kempink was hired by Apollo Global Management as a partner in London to lead private credit strategies globally. He was previously head of investor relations and a partner at Park Square Capital.

🎶 Culture Circuit

🏝️ Desert Inspiration: UK design company Muza Lab’s design for Saudi Arabia’s new Six Senses Southern Dunes resort on the Red Sea was inspired by ancient Nabataean traders. 

📺 Saudi Survivor: Saudi actor Mohammed Elshehri will return to host the second season of MBC’s “One Million Dollar Land,” a desert survival reality TV show, which will be produced at Neom’s audiovisual production hub this year, along with the Netherlands version of the the show, “Million Dollar Island”. The Arabic version of the show will be produced by Dubai-based Blue Engine Studios, Deadline reports.

📷 Photo of the Day

🗓️ Circuit Calendar

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 10-11, Riyadh, Saudi Arabia: Global EV and Technology Forum. The inaugural summit in Saudi Arabia bringing together policymakers, companies and investors focused on sustainable urban mobility solutions. Riyadh International Convention & Exhibition 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. 

Aug. 12-15, Riyadh, Saudi Arabia: Saudi Food Expo. One of the kingdom’s largest trade shows for the food & beverage industry. Riyadh Front Exhibitions.