The Daily Circuit
👋 Hello from the Middle East!
Today in The Daily Circuit, we’re looking at Dubai’s $8.2 billion road drainage project to prepare for future floods, Saudi Arabia’s new crown as the world’s biggest construction site, Masdar’s hunt for European green energy acquisitions and Matt Dalio’s bid to give Emirati kids the mojo to become gaming developers. But first, schmoozing about U.S.-Gulf trade on the banks of the Potomac.
Gulf trade officials, executives and entrepreneurs have descended on suburban Washington D.C. this week for the SelectUSA Investment Summit, the U.S. government’s annual dog-and-pony show aimed at drumming up business partnerships around the world.
The four-day conference in National Harbor, Maryland, which drew close to 5,000 participants last year, kicked off on Sunday with a smorgasbord of panel discussions that included a “data dive” into foreign direct investment into the U.S. from the Middle East and Africa.
Representing the UAE at the U.S. Commerce Department-sponsored confab, is Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade, and executives from some 35 Emirati companies. “With over $1 trillion invested across America, the UAE has already ‘Selected the USA,’ and we look forward to deepening this important trade and economic relationship,” Al Zeyoudi said in a statement.
Saudi Arabia, which generated $34 billion in bilateral trade with the U.S. last year, is active both on the summit floor and the sidelines, where officials from Riyadh attended meetings on Sunday held by the Saudi-U.S. Trade and Investment Framework Agreement Council.
Among other events surrounding SelectUSA are a session titled “Trade Opportunities between the Middle East and the United States,” which features participation from U.S. ambassadors stationed in Gulf countries, and the fifth GCC-U.S. Trade and Investment Dialogue Forum.
📰 Developing Stories
STORMY WEATHER
After an April storm that flooded the city, paralyzed its roads and shut down airports, Dubai is determined not to be caught helpless again. Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai, announced plans on Monday to build a drainage network he described as “the largest rainwater collection system in the region.” The $8.2 billion project will increase Dubai’s drainage capacity by 700% and “enhance the emirate’s readiness to face future climate challenges,” he said in a government statement. The freak storm, which struck both the UAE and Oman, killed at least two dozen people, many of them trapped in their cars as the water collected in deep pools on the roads.
CRANE CAPITAL
Saudi Arabia is on track to become the world’s largest construction market as the kingdom pours billions of dollars into new urban hubs and tourism destinations underpinning its economic diversification strategy, according to Knight Frank. Since Vision 2030 was laid out eight years ago, the country has announced projects worth more than $1.25 trillion spanning residential properties in the capital Riyadh to far-flung mega-projects like Neom, the real estate consultancy group found. The total construction output value is forecast to reach $181.5 billion by the end of 2028, up almost 30% from 2023 levels, the London-based firm said in a report published Monday. The construction boom is down to Crown Prince Mohammed bin Salman’s mandate to transition the oil-dependent economy to become a magnet for skilled workers and foreign tourists. “We are currently witnessing a historical transformation unfolding in Saudi Arabia with construction projects standing out in their design scale and value,” said Mohamed Nabil, regional partner and head of project and development services for the Middle East and North Africa at Knight Frank.
💲 Sovereign Circuit
Mubadala: Shareholders of grocery delivery startup Getir have backed a restructuring plan that will see Mubadala inject up to $250 million of new capital and acquire control of the Turkish-founded business. Meanwhile, Masdar, the Abu Dhabi-based green energy company backed by Mubadala and ADNOC, is on the hunt for more European acquisitions after buying Greece’s biggest renewables company last week, the Financial Times reports. Masdar CEO Mohamed Jameel Al Ramahi told the FT that the deal for Terna Energy at a $3.4 billion valuation was just the start of a further expansion into central and eastern Europe. “The reality is we are not just acquiring this platform and portfolio,” Al Ramahi said. “We are going to be pumping more capital into Greece and into Europe.”
Abu Dhabi Investment Authority: ADIA is backing Bobby Jain’s new $5.3 billion multistrategy hedge fund, Bloomberg reports. The ex-Millennium Management executive has traveled the world to secure the record-setting fund, initially aiming to raise as much as $10 billion. That target was trimmed, with Jain cutting client fees and reducing his target, the news agency reports. Jain Global has lined up wealth banking platforms including Morgan Stanley, Goldman Sachs, UBS and HSBC and will start trading July 1.
ADQ: Lunate Capital, which is backed by the Abu Dhabi sovereign wealth fund, is launching the Chimera JPMorgan Global Sukuk ETF, an exchange-traded fund tracking global Islamic bonds, which is scheduled to list on the Abu Dhabi Securities Exchange on July 8.
↪↩ Closing Circuit
🏭 Steel Plant: India’s Essar Group is awaiting final approval from Saudi authorities to build a low-carbon steel plant in the kingdom at a total investment of $4.5 billion, the Press Trust of India reports.
🔌 Turbine Order: Siemens Energy received a $1.5 billion order to supply its HL-class gas turbines for two new power plants in Saudi Arabia and provide maintenance for 25 years.
🐶 Pet Platform: FirstVet, an online pet health services platform, announced the closing of a €20 million ($21.5 million) Series C funding round, led by TELUS Global Ventures and with participation from Mubadala Capital.
🇪🇬 Economic Shift: The World Bank agreed to provide Egypt with $700 million in financing to “support its shift toward more private sector participation, better macroeconomic and fiscal resilience, and a greener growth trajectory.” The Washington-based lender also approved $600 million in financing for Morocco to strengthen the public sector and “improve the inclusiveness of public services.”
🗣 Circuit Chatter
🏦 Bank Stake: Kuwait Finance House has been exploring the purchase of a significant stake in Saudi Investment Bank, which is valued at $4.3 billion, Bloomberg reports.
🤝 Pipeline Position: New York-based Global Infrastructure Partners and Italy’s Snam SpA are considering a potential sale of their stakes in Adnoc Gas Pipeline Assets – possibly to Abu Dhabi investment firm Lunate, Bloomberg reports.
🚗 EV District: Singapore-based SingAuto, a commercial electric vehicle maker, has received preliminary approval to build what it claims will be “the world’s largest” commercial EV industrial district in Abu Dhabi, CEO Chris Chen told The National in an interview.💰 Great Expectations: The Abu Dhabi Global Market is attracting global companies and investors as it looks to become one of the world’s top financial hubs, Al-Monitor reports.
💵 Serving the Underbanked: MyZoi, an Abu Dhabi-based startup that provides a digital payment platform and basic financial services for low-wage workers, has raised $14 million and is looking for additional investors, Co-Founder Syed Ali tells The National in an interview.
🌍 Power Circuit
UAE President Sheikh Mohamed bin Zayed sent a message of condolences today to Russian President Vladimir Putin on the victims of the terrorist attacks in Dagestan, wishing the injured a speedy recovery. Sheikh Mohammed bin Rashid, Vice President, Prime Minister and Ruler of Dubai, and Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, sent similar messages to the Russian President.
➿ On the Circuit
Khalid Al Falih, Saudi Arabia’s Minister of Investment, told the U.K.-Saudi Sustainable Infrastructure Summit in London on Monday that the kingdom’s Vision 2030 economic plan is more than halfway completed and running ahead of schedule. “Projects that were only perceived as dreams are well under construction,” he said.
Tarun Chhabra, a White House technology advisor, said at a Council on Foreign Relations event in Washington D.C. on Monday that Microsoft’s deal to invest $1.5 billion in artificial intelligence firm G42 was “generally a positive development” because it forced the Emirati company to sever ties to China’s Huawei.
Stephen A. Schwarzman, Chairman, CEO and Co-Founder of Blackstone, invites viewers to help name the fish that stars in the money management firm’s new television commercial.
Joanne Norman, Head of Compliance at G42, talks about why she is taking on the “Ocean Seven Challenge,” one of the world’s toughest challenges in swimming, including spanning the English Channel and circumnavigating of Manhattan, elaborating in a LinkedIn post shared on Monday.
Ibrahim al-Organi, an Egyptian business owner close to President Abdel Fattah el-Sisi, is the subject of a Financial Times profile that describes how one of his companies has become a rare conduit for Palestinians seeking to escape from Gaza, charging $5,000 per adult and $2,500 for children under 16.
🎶 Culture Circuit
🕹️ Game Play: A new video competition launched in the UAE will aim to celebrate cultural heritage while inspiring the next generation of game developers across the emirates. The UAE Game Makers Competition 2024 was organized by Matt Dalio, the chief executive of Endless Studios and son of billionaire hedge funder Ray Dalio, in collaboration with government defense entity Tawazun Council and geospatial AI company Bayanat. Participants are invited to integrate UAE cultural elements into their game designs, competing for a total prize pool of Dh100,000 ($27,230). Dalio told The National that the mission was to teach skills for the digital economy. “We do so by harnessing this generation’s enthusiasm for games. By teaching participants to build games, we teach them to build software.”
🍽️ Dining with the Dead: A fine dining restaurant in Dubai has used AI deepfake technology to resurrect the famed late chef Paul Bocuse. Krasoa, co-founded by digital artist Anton Nenashev, has brought Bocuse “back to life” to describe items on its menu in its eight-course “Imaginary Futures” experience.
📷 Photo of the Day
🗓️ Circuit Calendar
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.
June 26-30, Tan-Tan, Morocco: Tan-Tan Moussem Cultural Festival. Annual gathering held since 1963 by more than thirty tribes from southern Morocco, with participation from the UAE and other Middle East nations.
July 1-3, Milan Italy: The Global Energy Transition Congress & Exhibition. An event bringing together thought leaders, innovators, and industry experts to address the challenges of accelerating the global energy transition. Milano Convention Centre.
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.
