The Daily Circuit
đź‘‹ Hello from the Middle East!
Today in The Daily Circuit, we’re looking at Germany’s hydrogen fuel suppliers in the Gulf, Trumpworld in the Saudi capital, the PIF’s steel venture partner in China and Morocco’s star Olympic surfer. But first, Boeing pledges that Riyadh Air’s 787 Dreamliner will be ready to fly when the kingdom’s bold new carrier takes off next year.
Amid Boeing’s global travails ranging from delays in the delivery of its new generation airliners to lawsuits from the mid-flight blowout of a cabin door, the world’s No. 2 planemaker is determined not to lose Saudi Arabia.
Peter Bellew, chief operating officer of Riyadh Air, says Boeing executives have sought to assure the kingdom’s new flag carrier that the first aircraft in its fleet of purple-hued 787 Dreamliners on order will arrive in time for the airline’s projected launch in the summer of 2025.
“We have to take them on their word,” Bellew told The National in an interview on the sidelines of the U.K.’s Farnborough International Airshow that was published on Wednesday. “They are aware we’re a startup and we don’t have older or leased aircraft to fall back on,” he said, adding “We’re in close contact with them constantly.”
Riyadh Air, which is owned by the Public Investment Fund, is a key element in Saudi Arabia’s plan to open the kingdom to visitors and attract international business. With chic designer uniforms unveiled on a Paris runway last month, Bellew expects to hire more than 700 pilots and 3,000 cabin crew over the next two years.
Also generating pressure on Boeing is the competition for Riyadh Air’s second order which Bellew suggested is still a toss-up between the U.S. planemaker and the industry leader, Europe’s Airbus.
đź“° Developing Stories
HYDROGEN HOPEFUL
Germany has green-lit a strategy for the import of hydrogen as it eyes international partnerships in Qatar, the UAE, Africa and Australia. At least half of the hydrogen Germany requires to meet its domestic green energy targets will need to be imported, the Economy Ministry said Wednesday. Late last year, Abu Dhabi alternative energy firm Masdar signed a $16.2 billion strategic partnership with Spanish energy giant Iberdrola to evaluate joint development of offshore wind and green hydrogen projects in Germany, the U.K. and the U.S. Meanwhile, Germany’s hydrogen funding vehicle, H2Global, said it awarded €200 million to ADNOC-owned Fertiglobe earlier this month to deliver a quarter of a million tons of hydrogen by 2027. But it’s still early days. Hartmut Rauen, Deputy Director of European industry advocacy group VDMA, lamented the lack of “new measures, fresh impulses or even milestones” for hydrogen trade at a global scale.Â
TRUMPWORLD IN RIYADH
A lobbying firm run by Brian Ballard, a top fundraiser for Donald Trump, is opening an office in Riyadh, its third outpost in the region where it already has a presence in Tel Aviv and Istanbul. Ballard Partners has tapped Jasmine Zaki, a former senior legal counsel for Bechtel and the chair of the board of the Middle East Policy Council, to lead the new office and its MENA practice as Managing Partner, joined by influential Saudi businessman Sheikh Abdullah bin Zaid Al-Meleihi and former Rep. Robert Wexler (D-Fla.) Politico reports. “After meeting with government officials during my recent trip to the region, I am confident in the success of the kingdom’s strategic framework for reform, Saudi Vision 2030,” Ballard said in a statement, adding that the firm’s footprint there “will allow us to better serve our clients’ interests in the region and beyond.”Â
đź’˛ Sovereign Circuit
Public Investment Fund: Baoshan Iron & Steel Co., China’s biggest steel producer, said it more than doubled its investment in a steel plate venture in Saudi Arabia called Baosteel to $1 billion. The PIF and Aramco, which each hold 25% of the company, also doubled their stakes to $500 million.
Kuwait Investment Authority: The Kuwait sovereign wealth fund’s assets under management rose by nearly $57 billion in the second quarter and are fast approaching the $1 trillion mark.
Abu Dhabi Investment Authority: ADIA and U.S. infrastructure investor I Squared Capital have hired JP Morgan and Axis Capital to explore the sale of up to $400 million worth of their stake in Cube Highways InvIT, an Indian infrastructure investment trust, Moneycontrol reports.
↪↩ Closing Circuit
🏗️ Building Blocks: Saudi Arabia’s Al Jouf Cement Co. will partner with Italy’s Webuild to provide more than $27 million worth of cement for several projects in the Neom development.
đź’° Green Lending: Dubai-based lender Mashreq will lead a consortium of regional lenders financing of a $3.25 billion leveraged buyout for sustainability-linked overhauls at MENA private school operator GEMS Education.
🏠Coals to Newcastle: Saudi Arabia imported high sulphur fuel oil from Kuwait this month for the first time in more than two years to help meet peak summer power demand, Reuters reports.
đź’¸ Borrowing Big: Qatar Commercial Bank closed a three-year $500 million syndicated term loan facility led by Bank of America, Mizuho Bank, and SMBC Bank.
🖥️ European Grant: Quantum Transistors, an Israeli quantum-computing startup, received a 17.5 million euro ($19 million) grant from the European Innovation Council to scale up R&D and expand its team.
đź—Ł Circuit Chatter
🌍 DiCaprio Fund: Princeville Capital, which counts Hollywood star Leonardo DiCaprio as an adviser, is set to open an office in Abu Dhabi and commit to funding startups in the emirate developing technologies to tackle climate change, Bloomberg reports.
🔋 EV Batteries: South Korea’s LG Energy Solution is considering Morocco as a new site for a manufacturing plant that would produce electric vehicles batteries for export to Europe, Reuters reports.
🛢️ Energy Pact: Egypt’s Ministry of Petroleum and Mineral Resources signed an agreement with Italy’s ENI SpA to intensify its efforts to increase oil and gas production in the country.
🌍 Power Circuit
UAE President Sheikh Mohamed bin Zayed paid tribute to individual and corporate supporters of Ma’an, the Authority of Social Contribution, during a ceremony at the Qasr al Bahr palace in Abu Dhabi on Wednesday.
Sheikh Abdullah bin Zayed, Deputy Prime Minister and Minister of Foreign Affairs, thanked billionaire Elon Musk in a post on Musk’s X for equipping the UAE field hospital in Gaza with SpaceX’s Starlink internet service.
âžż On the Circuit
Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, CEO of state-owned oil company ADNOC, and President of the COP28 climate summit, held meetings in China with chief executives of leading companies in the fields of renewable energy, solar panel production, battery technology and wind turbines.
Adel bin Abdulrahman Al-Asoumi, Speaker of the Arab Parliament, held a meeting with World Bank President Ajay Banga in Washington, D.C., to discuss ways to strengthen relations and the development of Arab countries.
Nadav Zafrir, was appointed CEO of Israel’s Check Point Software Technologies, replacing Gil Shwed who held the post since co-founding the $20 billion cybersecurity company in 1993.
Lewis Hamilton, a seven-time Formula 1 racing champion, signed a multi-year agreement to act as brand ambassador for online-trading firm CFI, which has offices across the MENA region.
🎶 Culture Circuit
âš˝ Wrong Footed: An Olympic soccer match between Argentina and Morocco ended in chaos yesterday, with the teams leaving the pitch and broadcasting cut before restarting almost two hours later in an empty stadium. The Athletic explains how the game at the Stade Geoffroy-Guichard in Saint-Etienne was disrupted by crowd trouble and a last-minute equalizer which was then ruled out following intervention from a video-assistant referee, resulting in a 2-1 victory for Morocco.
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 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 22-26, Farnborough, U.K.: Farnborough International Airshow. Airline executives, investors, government officials gather for industry presentations and dealmaking. Farnborough International Exhibition & Conference Centre.
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.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
