The Daily Circuit
š Hello from the Middle East!
Today in The Daily Circuit, weāre looking at Omanās deliberations on a personal income tax, the UAEās new satellite project to safeguard sea traffic, the Public Investment Fundās increased ownership stake in Saudi Re and Abu Dhabi-based Lunateās taking control of G42ās China investments. But first, construction cranes are rising all over Riyadh.
Even as the most audacious blueprints for Saudi Crown Prince Mohammed Bin Salmanās Vision 2030 are revised, Riyadh is still poised to be one of the fastest-growing cities in the world over the next decade as the kingdomās mega-projects take root, according to British property consultancy Savills.
Saudi Arabiaās capital city landed in the top 15 fastest-growing cities by 2033 ā the only urban center outside of Asia on the list ā according to the Savills Growth Hubs Index. Indian and Chinese cities take five spots each in the top 15, followed by Vietnam with two, and the Philippines, Bangladesh and Saudi Arabia with one each. The ranking is a compilation of forecasts of population, wealth and economic expansion.
Riyadh is at the center of the kingdomās diversification push away from oil as the city serves as regional headquarters to an influx of international companies. Major new developments are also underway to improve livability. The mixed-use property development New Murabba and a new metro system are under construction as the city prepares to host the World Expo in 2030 and vies for the World Cup in 2034.
The Middle Eastās third largest city is expected to record a 26% uptick in population, taking Riyadh from 5.9 million to 9.2 million residents in 10 years. The new-arrivals boom is expected to result in continued government spending on massive infrastructure projects as well as improved amenities and services to accommodate the growing population, according to Savills.
āSaudi Arabia boasts a population of around 36 million people and, astonishingly, 67% are under the age of 35,ā Richard Paul, Head of Professional Services & Consultancy Middle East, said in the report. āThe employment potential and ultimate spending power of this segment of the population over the next decade are enormous.ā
š° Developing Stories
TAX PIONEER
Oman is pushing forward with plans to impose a personal income tax on high-earning citizens and expats that would make it the first member of the GCC to take such a step. The proposal, which has been floated by the government for more than a decade, was recently presented for consideration to the State Council, The National reports. Introducing a personal income tax is in line with the countryās efforts to diversify its revenue streams and reduce its dependence on oil. If enacted, the tax would probably apply to citizens with net global income of $1 million or more and foreign nationals on Oman-sourced income above $100,000. The proposed tax rates range between 5% to 9% for foreign nationals and a flat rate of 5% for Omanis. The UAE and Saudi Arabia have refrained from taxing individuals to make their countries more attractive to international companies and candidates for skilled jobs.
EYES IN THE SKY
The UAE is aiming to use its advances in space to prevent chaos at sea. Launching its new Satgate project, the Ministry of Energy and Infrastructure said it will employ satellites and artificial intelligence to locate ships, monitor sea conditions and forecast the weather, according to a statement issued today. In collaboration with the Mohammed bin Rashid Space Centre in Dubai, the project will also develop a database of ships that call at UAE ports and help maintain the security of maritime facilities and coasts by tracing the location of ships that are not connected to tracking devices. At a time when oil tankers and cargo vessels are being attacked in both the Red Sea and the Gulf, the satellite project has the potential to make commercial sea traffic in the region more secure and financially competitive. āImproving our tracking systems using advanced technology will enhance maritime transport and mitigate risks,ā Minister of Energy and Infrastructure Suhail Mohamed Al Mazrouei said in the statement.
š² Sovereign Circuit
Public Investment Fund: The PIF will increase its ownership in Saudi Re to 23% after investing $114 million to acquire new shares in the reinsurance company. As part of the deal, the PIF will nominate three new members to Saudi Reās board of directors. Al Rajhi Capital and GIB Capital are financial advisors for Saudi Re and the PIF, respectively.
Lunate: Abu Dhabi AI firm G42 has handed over control of its China-focused 42XFund to Lunate, Bloomberg reports.
āŖā© Closing Circuit
š²š¦ Reform Package: The World Bank and Morocco agreed on a $350 million financing package to support reforms of public enterprises and establishments
šø Crypto Property: Mantra Chain, a Hong Kong-based blockchain developer, will tokenize $500 million worth of assets of Dubai real estate developer MAG Group.
š Pineapple Bandage: MediWound, an Israeli developer of bandages to dress burns and wounds made with a pineapple extract, surged in Nasdaq trading on Friday, on reports of a $400 million buyout bid by U.S-based Solventum.
š©ŗ AI Med: K Health, an Israeli startup that uses artificial intelligence to manage primary health care platforms, raised $50 million in a funding round led by Claure Group. K Health has raised a total of $375 million.
š£ Circuit Chatter
š¦ Fiscal Reformers: Bond investors in recent months are more aggressively selling debt from countries where governments are undertaking financial reforms, including Egypt and Turkey, Bloomberg reports.
šÆļø Comeback Convos: Former BP CEO Bernard Looney met with senior figures from the UAE including ADNOC CEO Dr. Sultan Al Jaber and Sheikh Tahnoon bin Zayed, National Security Adviser and Chairman of sovereign wealth funds ADIA and ADQ. The talks involved Looneyās possible role in leading private equity investments with backing from the country, the Financial Times reports.
š Pride Wear: Team Liquid, a participant in Saudi Arabia’s Esports World Cup, has been allowed to wear rainbow-colored jerseys signifying gay pride during the competition, a significant development given the kingdomās laws under which homosexuality is considered a crime.
š Power Circuit
UAE President Sheikh Mohamed bin Zayed talked by telephone to the U.K.ās new Prime Minister Keir Starmer to congratulate him on winning election last week. He also sent a message of congratulations to Iranās new President Masoud Pezeshkian on winning last weekās election. Sheikh Mohamed received a phone call on Saturday from Kenyan President William Ruto. The pair discussed bilateral relations and opportunities for economic cooperation across areas including technology, infrastructure and renewable energy.
Sheikh Nahyan bin Mubarak, UAE Minister of Tolerance and Coexistence, inaugurated the Burjeel Cancer Institute in Mohammed bin Zayed City, Abu Dhabi, on Friday. The institute will offer advanced cancer diagnostics and treatments for patients in the UAE and from abroad. BCI is equipped to conduct clinical trials and will collaborate with international cancer research institutions to bring the latest science in cancer care to the UAE.
āæ On the Circuit
Sultan Al Mansoori, acting as an envoy of UAE Minister of Foreign Affairs SheikhĀ Abdullah bin Zayed,Ā led a delegation to TurkeyĀ to explore prospects for cooperation. Al Mansoori, the former Minister of Economy, held meetings with Turkish officials who includedĀ Abdulkadir UraloÄlu, Minister of Transport and Infrastructure;Ā Mustafa Tuzcu, Deputy Minister of Trade;Ā Dr. Hakan Yurdakul, Member of the Turkish Presidential Economic Council andĀ Burak DaÄlıoÄlu, President of the Investment Office of the Presidency of Turkey.
Abdullah bin Zayed, led a delegation to Turkey to explore prospects for cooperation. Al Mansoori, the former Minister of Economy, held meetings with Turkish officials who included Abdulkadir UraloÄlu, Minister of Transport and Infrastructure; Mustafa Tuzcu, Deputy Minister of Trade; Dr. Hakan Yurdakul, Member of the Turkish Presidential Economic Council and Burak DaÄlıoÄlu, President of the Investment Office of the Presidency of Turkey.
Naim Yazbeck, General Manager of Microsoft UAE, writes in a blog post on LinkedIn that the success of the UAEās artificial intelligence strategy lies in improving the quality of life for its residents, realizing economic growth and āexporting best practicesā across the region.
Abdulaziz Khashogji and Amirah Al-Bassam got married in style as Saudi Arabiaās first couple to celebrate their āzaffa,ā or wedding entrance, sitting in a racing car on Jeddahās F1 circuit.
š¶ Culture Circuit
š¢ Long Beach: Dubai has unveiled plans for the Jebel Ali Beach Development Project, a 6.6 kilometer stretch of beach set to become a recreational site with a focus on environmental preservation, including turtle habitats and mangroves. Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, approved the master plan on Sunday as a part of a wider revamp of the emirateās public beaches under the Dubai 2040 Urban Master Plan. āOur focus is on creating spaces rich in beaches, open areas, and recreational greens,ā he said.
š· Photo of the Day
šļø Ahead on The Circuit
July 2-Aug. 25, Riyadh, Saudi Arabia: Esports World Cup. An international competition for professional gamers with a $60 million prize pot. Boulevard City.
July 9-10, Vienna, Austria: Ninth OPEC International Seminar. The organization representing oil producers will hold a conference titled āChartering Pathways Together: The Future of Global Energy.ā Imperial Hofburg Palace.
July 9-13, Sun Valley, Idaho: Sun Valley Conference. Sponsored by Allen & Co., the annual conference brings together some of the worldās wealthiest and most influential leaders in finance, tech, entertainment and politics. Sun Valley Resort.
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 15-17, Abu Dhabi, UAE: USA Basketball Showcase. The 2024 USA Basketball Menās National Team will host the national teams of Australia and Serbia for three matches. Etihad Arena
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.
July 16-19, Aspen, Colo.: Aspen Security Forum. Pentagon leaders, defense contractors and security officials from around the world meet for a four-day conference. Aspen Institute.
Aug. 12-15, Riyadh, Saudi Arabia: Saudi Food Expo. One of the kingdomās largest trade shows for the food & beverage industry. Riyadh Front Exhibitions.
Sep. 30-Oct. 2, Dubai, UAE: Future Hospitality Summit. The global conference for leaders in the hospitality industry expands this year at a new location with dedicated space for ESG planning, country pavilions and a larger exhibition area. Madinat Jumeirah.
