The Weekly Circuit
👋 Hello from the Middle East!
This week we’re looking at the massive Dubai logistics park being built by Aldar and DP World, Oman’s carbon capture startup, the IPO being planned for Mubadala’s catering business and Lebron James leadings Team USA to victory over Australia in an exhibition game in Abu Dhabi. But first the Saudi PIF’s hydrogen fuel business.
Hydrogen hype has pervaded conversations about the energy transition in the Gulf of late. Saudi Arabia has a new entrant with the Public Investment Fund’s Energy Solutions Co. (ESC), which is mandated to focus on co-investing in low-carbon hydrogen projects in the kingdom.
The company has operated “quietly” since it was formed, according to Global SWF. Its only reported investment has been the acquisition of 6% of the share capital of Nucera, worth around $164 million following its IPO last year, the U.S.-based sovereign wealth fund tracker found. The hydrogen unit of Germany’s Thyssenkrupp has begun work on a plant to produce green hydrogen and ammonia for the NEOM mega-project.
ESC is one to watch as a potential national champion for domestic hydrogen production in one of the world’s biggest energy-producing countries, according to Global SWF. In addition to driving the development of the green hydrogen market in the kingdom, ESC will also co-invest with Saudi Aramco in the state energy giant’s blue hydrogen developments.
Saudi Arabia isn’t alone in growing its green bona fides. Abu Dhabi alternative energy firm Masdar plans to sell more dollar-denominated green bonds as it forges on with global expansion plans. The renewable-power company plans to offer five and 10-year green bonds in two tranches, Bloomberg reports.
Meanwhile, Saudi Arabia’s decision to cut oil production in line with most of its OPEC partners is chipping away at its growth prospects. The International Monetary Fund on Tuesday revised downwards its estimate for the kingdom’s economic growth by nearly one percentage point, mainly due to oil production cuts, Reuters reports. The revision was the biggest among major economies and dragged down the rest of the Middle East and North Africa region, which is projected to grow 2.2% this year.
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].
LOGISTICAL STEP
Mubadala-backed Aldar inks deal with DP World for Dubai logistics park
Mubadala-backed Aldar Properties has signed an agreement with DP World to develop a 1.55 million-square-foot logistics park as Abu Dhabi’s biggest real estate developer looks to expand in Dubai and respond to e-commerce driven demand for warehousing, The Circuit reports.
Location Location: The project at National Industries park in the Jebel Ali neighborhood of Dubai gives Aldar access to develop and lease assets in a strategic location between Dubai’s major port and Al Maktoum International Airport.
Global Focus: The deal comes at a time when the UAE is jockeying for position in the global supply chain and to play a role in the region’s future food security.Click here to read the full story.
ROCK DEPOSIT
Oman’s carbon capture startup 44.01 raises $37 million
Omani carbon capture startup 44.01 has landed a fresh round of funding as it looks to commercialize its solution to turn CO2 into rock, The Circuit’s Kelsey Warner reports.
Big Name Investors: The firm, already backed by Sam Altman’s Apollo Projects, secured $37 million in Series A funding from a group of investors led by the UAE’s Shorooq Partners and Equinor Ventures. Other investors in the round include Amazon’s Climate Pledge Fund and Bill Gates’ Breakthrough Energy Ventures.
Solid Solution: Carbon dioxide can turn to rock naturally in a process called mineralization when absorbed by a certain kind of rock. 44.01, named after the molecular mass of CO2, has techniques to massively speed that process up – from decades to less than a year.
💲 Sovereign Circuit
Public Investment Fund: The Saudi sovereign wealth fund signed an agreement with China’s TCL Zhonghuan Renewable Energy Technology Co., the world’s second-largest manufacturer of solar cell components, to build a $2.8 billion solar power production plant in the kingdom. The fund has picked banks JP Morgan and Morgan Stanley for the planned IPO of the kingdom’s largest medical procurement firm, Nupco, Bloomberg reports. The PIF is also close to a deal with China’s second-largest wind turbine manufacturer, Envision Energy Co., to develop a plant in the kingdom, Bloomberg reports. The fund signed an agreement with China’s TCL Zhonghuan Renewable Energy Technology Co., the world’s second-largest manufacturer of solar cell components, to build a $2.8 billion solar power production plant in the kingdom.
Mubadala: Abu Dhabi National Hotels is considering an IPO of its catering business and has picked Citi and First Abu Dhabi Bank to manage the fundraising, Bloomberg reports. The group, which owns hotels including the Ritz Carlton and Park Hyatt in Abu Dhabi, counts Mubadala among its shareholders. Singapore’s Princeton Digital Group, which counts Mubadala as an investor, plans to double the capacity of its data centers in Asia over the next three years to meet growing demand from artificial intelligence users, Bloomberg reports. Mubadala signed an agreement with China’s TCL Zhonghuan Renewable Energy Technology Co., the world’s second-largest manufacturer of solar cell components, to build a $2.8 billion solar power production plant in the kingdom.
Abu Dhabi Investment Authority: The planned takeover of Indian pharma company BSV Group (formerly Bharat Serum & Vaccines Ltd.) from private equity firm Advent International is now down to a competition between ADIA, along with European buyout group ETQ, and Mankind Pharma, The Economic Times reports. Offers from both parties value a potential deal at around $1.6 billion.
Abu Dhabi Investment Authority: ADIA’s potential $2.6 billion buyout of Malaysia Airports with BlackRock’s Global Infrastructure Partners is characterized as a bright spot in Asia-Pacific dealmaking by Bloomberg as Malaysia comes out on top in the region amid surging M&A activity.
International Holding Co.: Syed Basar Shueb, Abu Dhabi-based IHC’s CEO and Managing Director, was appointed Chairman of IHC-backed Multiply Group, an investment group with interests ranging from energy and mobility to media.
Qatar Investment Authority: The QIA has joined Mubadala in investing in a new transportation equipment-focused fund from U.S. private equity firm I Squared Capital that has raised more than $600 million from investors, Bloomberg reports.
↪↩ Closing Circuit
🧵 Chinese Cloth: China’s Zhejiang Hengsheng Dyeing and Finishing Co. broke ground on Sunday for its new $70 million factory in Egypt’s Suez Canal Economic Zone.
⚡ Power Film: Xpro India, a producer of dielectric films that are used in energy storage and transmission, is investing $27 million to build a manufacturing unit in the UAE’s Ras Al Khaimah Economic Zone.
🤝 Kushner Connects: Affinity Partners, a Miami-based investment firm led by Jared Kushner, agreed to buy a 4.9% stake in Israeli insurer Phoenix Holdings for close to $130 million with an option to purchase an additional 4.9% later, subject to Israeli regulatory approval.
⚽ TV Rights: Qatari channel beIN Sports and the U.K.’s DAZN have acquired the TV rights to French football’s top-flight Ligue 1 for at least the next two seasons, paying close to $540 million, AFP reports.
🤝 A is for Acquisition: Wiz, an Israeli cybersecurity startup headquartered in New York specializing in cloud networks, is in talks with Google’s parent company Alphabet to be acquired for a reported $23 billion, which would be the Mountain View, Calif.-based company’s largest acquisition in history.
🗣 Circuit Chatter
💋 Beauty Products: Germany’s Henkel, maker of Pert shampoo and a wide range of other beauty products, opened a new factory on Sunday in Riyadh.
🕶️ Tourism Slump: Jordan’s tourism industry earned revenue of $3.3 billion in the first half of the year, a 4.9% drop from the same period in 2023, which officials attribute to canceled bookings because of the Gaza war.
⚖️ Judicial Jump: The Dubai International Financial Centre’s independent court system is busier than ever, handling 480 cases in the first half of 2024, a 10% increase over the same period last year. The value of the cases heard rose 37% to more than $285 million compared to the first half of 2023.
🛢️ Oil Discovery: Kuwait Oil Co. said it has discovered “huge commercial amounts” of light oil and associated gas in an offshore field as it explores for new sources of fuel and plans to increase production.
🦖 Dinosaur Demand: Prices for dinosaur fossils sold at Sotheby’s and other auction houses are booming, stoked by deep-pocketed new institutions such as Abu Dhabi’s Natural History Museum, which is set to open next year and spent more than $30 million on Stan the T-Rex, the Financial Times reports.
🌍 Power Circuit
Indonesian President Joko Widodo was welcomed by UAE President Sheikh Mohamed bin Zayed at the Presidential Airport in Abu Dhabi on Tuesday at the start of his two-day state visit. Also present were Sheikh Hamdan bin Mohamed, Deputy Chairman of the Presidential Court for Special Affairs; Sheikh Mohammed bin Hamad, Advisor for Special Affairs at the Presidential Court; Suhail bin Mohammed, Minister of Energy and Infrastructure; and Abdulla Salem Al Dhaheri, UAE Ambassador to the Republic of Indonesia.
Sheikh Mohammed bin Rashid, the Vice President and Prime Minister of the UAE and Ruler of Dubai, celebrated his 75th birthday on Monday.
Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed witnessed the signing on Monday of an agreement between ADNOC and Mubadala Investment Co. to enhance levels of cooperation in UAE national talent development.
Jordan’s King Abdullah II met with a long lineup of American executives on the sidelines of the Sun Valley economic forum last week including Amazon Founder and Executive Chairman Jeff Bezos; Walmart CEO Doug McMillon; Sony Chairman and CEO Kenichiro Yoshida; Mayo Clinic President and CEO Gianrico Farrugia; and ARM CEO Rene Haas.
➿ On the Circuit
Georges Elhedery, the CFO of HSBC has been tapped to become the London bank’s next CEO. The Lebanese-born banker has also led HSBC’s Middle East, North Africa and Turkey regional division.
Habib Saikaly, a veteran investment banker at JP Morgan, is joining Goldman Sachs in Riyadh as head of the bank’s fundamental equity business across the Middle East and North Africa, Bloomberg reports. He is also expected to oversee a new Middle East-focused fund that Goldman Sachs is putting together.
Dr. Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, opened a new cashew-processing plant in Côte d’Ivoire on Saturday with Prime Minister Robert Beugré Mambé and officials from Pan African Agro Commodities, which operates the factory and is incorporated in the Abu Dhabi Global Market.
Steve Kerr, Head Coach of Team USA’s men’s basketball team, which is preparing for the Olympics with exhibition games this week in Abu Dhabi, called the assassination attempt on former President Donald Trump a “demoralizing day for our country.” The coach’s father, Malcolm Kerr, was shot dead in 1984 in Beirut, Lebanon, when he was President of the American University of Beirut.
🎶 Culture Circuit
🏘️ Sharjah 2.0: The modernization and rebranding of Sharjah, UAE’s heavily traditional and third most populous emirate, has gathered pace as the booming property market in Dubai pushes many residents to consider alternatives. A prime example is Aljada, a new real estate mega project taking shape in the emirate’s Muweilah district, 15 minutes from Sharjah International Airport. The area will house up to 70,000 residents and have an emphasis on lifestyle and community, including a farmers’ market and Olympic-sized skate park. “We want to create a new Sharjah,” Amit Arora, CEO of developer Arada, told The National.
🛶 Floating Relic: Zayed National Museum has rebuilt a 4,000-year-old boat, which has been spotted cruising along the coast off Abu Dhabi’s Mamsha Al Saadiyat beach. The 18-meter-long Bronze Age vessel, built using reeds and date palm fiber ropes, was sailed for a two-day voyage, recreating a chapter from the UAE’s ancient past as part of a project involving researchers from NYU Abu Dhabi and Zayed University.
📷 Photo of the Week
🗓️ 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 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.
July 27-Aug. 4, Washington D.C. Mubadala Citi DC Open. Tennis tournament featuring nine of the world’s top 20 players. Rock Creek Park.
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.
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.
