👋 Hello from the Middle East!

Today in the Daily Circuit, we’re looking at a Saudi AI startup founded by MIT graduates, Masdar’s investment in European green energy projects, the 92,000-seat stadium soon to rise in Riyadh and the Bahraini woman named CEO of Bapco Energies’ venture arm. But first, Egypt gets high grades on its IMF report card.

Egypt’s IMF-prescribed program to reform the economy with steps that include selling off state assets and devaluing the Egyptian pound won praise from the Washington-based lender after a review this week.

In turn, the IMF unlocked $820 million in support for the economy as part of the $57 billion bailout that Egypt received to help it emerge from its worst financial crisis in decades. “The Egyptian authorities’ recent efforts to restore macroeconomic stability have started to yield positive results,” the IMF said in a statement on Monday.

In the final runup to the review, Egypt raised fuel prices by up to 15% and Prime Minister Mostafa Madbouly announced further plans to reduce energy subsidies. Still, the IMF called on the government to ratchet up its efforts to divest from state-owned businesses.

Egypt, meanwhile, is showcasing the reforms as it seeks more funding for business projects from Saudi Arabia. Egyptian Investment and Foreign Trade Minister Hassan El-Khatib said after a meeting in Cairo with Saudi Ambassador to Egypt Saleh bin Eid Al-Hussaini that the government “is keen to create a favorable investment climate and provide all necessary support to Saudi investors.”

MIT ROOTS

Artificial intelligence has taken investors by storm both broadly around the world and particularly in the UAE. Now, Abu Dhabi-based investment firm Shorooq Partners has led a $20 million financing round for Intelmatix, an AI startup founded by Saudi graduates of the Massachusetts Institute of Technology, Bloomberg reports. Shorooq teamed up Saudi Venture Capital, Saudi Technology Ventures and Olayan Financing Co. in what it described as the largest Series A investment for an AI firm in the MENA region. “Our investment in AI is driven by our commitment to unlock deep tech and AI’s contribution to the Saudi economy,” said SVC Chief Executive Nabeel Koshak said.

SEEKING GREEN

UAE renewables company Masdar says it will continue to chase green energy projects in Europe, where high interest rates and rising debt costs are pushing utilities to sell stakes in wind farms and solar plants. Masdar, which is owned by Mubadala, ADNOC and Abu Dhabi National Energy Co., has a goal of reaching 100 gigawatts of capacity in its portfolio by 2030 and has been quick to pounce on European projects that will help it rapidly scale up. Last week it reached an $885 million agreement with Madrid-based Endesa to buy a 49.9% share of 48 solar farms with 2 gigawatts of capacity. And in June it agreed to buy a majority stake in Greece’s biggest renewables company Terna Energy, in a deal that valued the company at $3.4 billion. Masdar CFO Mazin Khan told Reuters that “normalization” of asset prices had created big opportunities in Europe and the Endesa deal was just a first step in its investment plans.

💲 Sovereign Circuit

Public Investment Fund: Newcastle United, the British Premier League soccer team, is now valued at $1.3 billion after the PIF increased its holding by buying former owner Amanda Staveley’s stake, Bloomberg reports.

Mubadala: Mubadala Capital and commodities trader Trafigura have hired UBS BB and Goldman Sachs to help sell Porto Sudeste, a Brazilian iron-ore port they bought a decade ago from former oil and mining tycoon Eike Batista, Reuters reports.

Oman Investment Authority: Muhsin Al Rustom, the chief financial officer of OIA-owned Asyad Group, said that attacks on commercial vessels in the Red Sea may have disrupted global trade but higher freight rates are helping logistics operators to offset the impact of lower trade.

Bapco Energies: Areije Al Shakar was named CEO of BeVentures, a subsidiary of Bahrain’s government-owned Bapco Energies, which builds and invests in low-carbon energy ventures.

↪↩ Closing Circuit

⚽ World Cup Ready: Saudi Arabia unveiled plans to build a 92,000-seat arena that will be called King Salman Stadium as the kingdom looks set to be picked as host of the 2034 World Cup.

🧵 Fabric Dyes: Alex Apparels, an Egyptian manufacturer of ready-made garments, plans to build a factory for textiles and dying fabric in the Alexandria Public Free Zone with investments of $100 million.

⛽ LNG Plant: Oman plans to start building a new gas liquefaction plant – known as a train – with an annual capacity of 3.8 million metric tons, and expects to begin operations there in 2029.

🍌 Farming Bounty: Jordan’s agricultural exports in the first five months of the year grew 25% to $705 million from the same period in 2023, which the government attributes to improved irrigation techniques and farming practices. 

🏦 Idling Cash: Palestinian banks in the West Bank have accumulated more than $1 billion in Israeli shekels idling in vaults amid the wartime economic slowdown and Israeli regulatory curbs, the Financial Times reports.

🗣 Circuit Chatter

🚚 Metals Hub: The London Metal Exchange approved using the Red Sea port city Jeddah in Saudi Arabia as a warehouse delivery point for copper and zinc.

💺 Saudi Flights: Uzbekistan’s Air Samarkand has been granted approval to launch regular flights to Saudi Arabia starting today.

✈️ Equality Drive: Defense firm Bae Systems Saudi Arabia is working to recruit more women in the kingdom, scouting schools and universities for future engineering leaders, board member Nouf Alarify tells The National.

🫵 Bogus Accusations: Scammers in the Middle East are exploiting weaknesses in Meta’s Whatsapp, Instagram and Facebook platforms to extort money from members with bogus accusations of copyright infringement, Bloomberg reports.

🌍 Power Circuit

UAE President Sheikh Mohamed bin Zayed received Chilean President Gabriel Boric at the Qasr Al Watan palace in Abu Dhabi on Monday. Among the dignitaries in attendance were Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Chairman of the Presidential Court; Lt. Gen. Sheikh Saif bin Zayed, Deputy Prime Minister and Minister of the Interior; and Sheikh Abdullah bin Zayed, Deputy Prime Minister and Minister of Foreign Affairs. Font’s visit was highlighted by the signing of a free trade agreement by the two countries.

➿ On the Circuit

UAE Ambassador to the U.S. Yousef Al Otaiba attended the Mubadala Citi DC Open on Monday, mixing with top players and executives of the Abu Dhabi sovereign wealth fund during the tournament in Washington D.C.’s Rock Creek Park.

Saudi Minister of Commerce Majid Al-Qasabi held talks with South Korean Prime Minister Han Duck-soo in Seoul on how to boost commercial activity following last year’s signing of a free-trade agreement between the two countries.

OPEC Secretary-General Haitham Al-Ghais disputed projections by the International Energy Agency for a decline in global energy demand driven by consumer adoption of electric vehicles, saying oil will continue to play a pivotal role in global energy production.

Jamie Salter, whose buyout firm Authentic Brands owns Sports Illustrated, Brooks Brothers and Forever 21, snagged an opportunity to acquire Reebok International when he spotted the CEO of German sportswear company Adidas at the 2022 Formula One racetrack in Abu Dhabi, Bloomberg reports in a feature story on the Toronto-born mogul.

🎶 Culture Circuit

⛪🕌🕍 House Proud: Abu Dhabi’s Abrahamic Family House on Saadiyat Island, which combines a mosque, synagogue and church, has been named on Time magazine’s annual list of the World’s Greatest Places. Time said the complex, which promotes mutual understanding, “feels more important than ever.” Dubai’s One Za’abeel tower also made the list for its “head-turning” architecture and impressive dining options.

📷 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 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.

Sept. 10-11, Dubai, UAE: Global Vertical Farming Show 2024. Annual event brings together investors, growers, and executives in the vertical farming industry from around the world. Le Méridien Dubai Hotel & Conference Centre.

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.