The Daily Circuit
đź‘‹ Hello from the Middle East!
Today in The Daily Circuit, we’re looking at Abu Dhabi-based Agthia’s new $24.5 million meat-processing plant, the continued decline of VC investing in the MENA region, the ambitious growth plans for women’s professional tennis being fueled by the Saudi Public Investment Fund and the royal palace outside Riyadh that has been transformed into an ultra-cushy hotel.
Saudi Arabia’s drive to establish an electric vehicle industry in the kingdom – clinching deals over the past year with the U.S., China and Europe – will be on display this week during the Global EV and Mobility Technology Forum in Riyadh.
The two-day conference, which gets underway tomorrow at the Riyadh International Convention and Exhibition Center, will bring together senior government officials, financiers and car company executives – led by Faisal Sultan, Managing Director and Vice President of Lucid, the California EV-maker backed by the Saudi Public Investment Fund.
Others scheduled to speak at the conference include Rusty Russell, Executive Director of Mobility at Saudi Arabia’s Red Sea Global; Shavaye Govender, Head of Business Development, Middle East, Africa and Pakistan at Uber; Fathi Tlatli, President of Global Sector Auto-Mobility for DHL; and Alex Gilbert, Head of Energy and Electrification and Commercial Development at Transport for London.
Lucid shares jumped 4% in Nasdaq trading on Monday after the company reported that second-quarter car deliveries grew 70% from the same period in 2023. The PIF, which has a 60% stake in Lucid, opened a factory in the kingdom last year and has poured billions into the U.S. company as it looks to become a significant regional manufacturer.
đź“° Developing Stories
VENTURE DECLINE
Venture capital investing in emerging markets, including the MENA region, continued its decline in the first half of 2024, according to MAGNiTT. The UAE-based fund-tracking platform found that South East Asia led the pack with $2.2 billion in funding – still a 31% decline from the first half of 2023 – and captured 64% of total capital raised among emerging markets. The Middle East, Pakistan and Turkey collectively secured $665 million, an 18% year-on-year decline, while deal count fell by 14%. Fintech remains a venture capital darling for nascent startup ecosystems where large swathes of the population remain unbanked. Retaining its top position across markets, fintech claimed $1 billion in funding and led with 128 deals. One bright spot: the number of investors in MENA increased by 33%, reaching 262. While mega-deals waned, early-stage investments appear to be making a comeback, according to MAGNiTT.
FOOD FUTURE
Abu Dhabi food and beverage group Agthia has opened a meat processing facility in Jeddah, Saudi Arabia’s second-largest city, as the desert kingdom looks to feed its growing population and the broader region pushes for greater food security. The $24.5 million factory, located in Jeddah’s Industrial City 1, spans 9,000 square meters and is expected to produce over 9,000 tons of processed proteins – enough to export to more than 25 countries. Agthia, which is owned by Abu Dhabi sovereign wealth fund ADQ, is in the midst of a five-year growth strategy in its push to become one of the region’s top food and beverage companies.
đź’˛ Sovereign Circuit
Public Investment Fund: Having tapped into PIF’s sovereign wealth and Luxembourg-based CVC Capital’s private equity funds, the Women’s Tennis Association is primed with ambitious growth plans, the Financial Times reports.
Temasek: Singapore’s state-owned fund plans to prioritize U.S. deals and “stay cautious” on China, Deputy CEO Chia Song Hwee tells the FT. Chia added the fund is “not in a hurry” to invest in AI and warned of “hype” in the sector.
Turkiye Wealth Fund: Turkey’s sovereign wealth fund is weighing whether to sell its 26.2% stake in Turkcell, the country’s biggest telecommunications operator, Bloomberg reports, adding that unidentified investors from the Arabian Peninsula are among interested buyers.
↪↩ Closing Circuit
🤖 AI Interest: DAMAC Group, one of the UAE’s largest conglomerates with activities ranging from real estate to technology, announced it will invest $50 million in San Francisco-based startup Anthropic to develop its interests in artificial intelligence.
🇪🇬 Egyptian Horizon: Saudi Arabia-based Adeer International is planning to invest $400 million in the Egyptian real estate market within five years, CEO Bassel El-Serafy told Asharq Business.
đź”’ Guarding Data: Sola Security, an Israeli cybersecurity startup, raised $28 million in a seed funding round led by S Capital and with participation from S32, and investor Michael Moritz, Calcalist reports.
đź—Ł Circuit Chatter
🛫 Gulf Routes: New Indian budget carrier Air Kerala plans to expand to the UAE by 2026 as it prepares to start operations.
🛢️ Petrol Heads: Saudi Aramco is betting that combustion engines will be around for a “very, very long time” after acquiring a 10% stake in fuel-based engine manufacturer Horse Powertrain for $800 million last month, the FT reports.
🛬 Soft Landing: AirHelp Inc. has released its 2024 report ranking the world’s 10 best and worst airports, with Qatar’s Hamad International landing in the top position.
🌍 Power Circuit
Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, led a meeting of the Council that approved the Emirati Family Growth Program, an effort by the government to encourage young couples to have children.
âžż On the Circuit
Ram Buxani, a well-known Indian businessman in Dubai who was chairman of ITP Cosmos Group, died on Sunday at the age of 83.
Mark Thompson, a scholar at the King Faisal Center for Research and Islamic Studies, presented a report on Monday at the SMRG Think conference in London on the development of new employment opportunities for young jobseekers in Saudi Arabia.
Aaron Miller, former Head of Financial Services in Private Equity at the Abu Dhabi Investment Authority, has been named Chief Financial Officer at U.S. insurer Acrisure. One of ADIA’s subsidiaries is a shareholder in Acrisure.
🎶 Culture Circuit
🏰 High-end Digs: Saudi Arabia is transforming palaces into ultra-luxury hotels, offering a taste of royal life in its latest bid to lure wealthy travelers to the kingdom. The Red Palace, a 365,000 square-foot art deco residence south of Riyadh once lived in by King Saud bin Abdulaziz, will open to guests at the end of 2025.
đź“· Photo of the Day
🗓️ 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 9-13, Sun Valley, Idaho: Sun Valley Conference. Sponsored by Allen & Co., the annual “summer camp for billionaires” brings together some of the world’s 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 gathers 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 Men’s National Team will host the national teams of Australia and Serbia for three matches. Etihad ArenaÂ
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 kingdom’s largest trade shows for the food & beverage industry. Riyadh Front Exhibitions.Â
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. Â
