The Weekly Circuit
👋 Hello from the Middle East!
This week we’re looking at the UAE’s newly licensed lottery, Gulf financial advisors that cater to ultra-high-net-worth families, ADIA’s interest in India’s Adani Energy stock offering and Moroccan King Mohammed VI’s environmental appeal to mark 25 years on the throne. But first, Turkey seeks to pump up trade with the GCC.
Long a key regional commercial partner for the Gulf states, despite political disputes, Turkey is seeking to strengthen its ties by securing an across-the-board free trade agreement with the six member-states of the GCC.
Turkish officials began talks this week in Ankara with a delegation from Saudi Arabia, the largest of the Gulf states and first in the roster of GCC countries to negotiate the comprehensive deal. Next up are Qatar, Oman, Kuwait, Bahrain and the UAE before an agreement can be reached that reduces import taxes and other tariffs.
Besides trade in oil, arms, construction and agricultural products, the pact is expected to have a broader impact on the region. Iraq, in particular, would benefit from its potential for becoming a corridor between Turkey and the Gulf states, according to a report by the Stimson Center, a Washington think tank. Iraq announced the launch last year of a 1200-kilometer (750 mile) highway and rail project that would connect with Turkey’s transportation network.
Saudi Arabia, meanwhile, is prospecting for new corporate trading partners in South Korea, Asia’s fourth largest economy. After a business conference in Seoul this week, the kingdom reports signing 10 agreements ranging from construction and energy to healthcare and food exports.
Saudi Minister of Commerce Majid Al-Qasabi led a delegation of 80 business executives and government officials at the Saudi-Korean Business Forum, where South Korean companies pitched cooperation in car manufacturing, data centers and urban infrastructure, Arab News reports. Al-Qasabi also met with South Korean Prime Minister Han Duck-soo after arriving in Seoul on Monday.
Egypt’s IMF-prescribed program to reform the economy with steps that include selling off state assets and devaluing the Egyptian pound won praise this week after a review by the Washington-based lender.
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. Still, the IMF called on the government to ratchet up its efforts to divest from state-owned businesses.
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].
Game On
UAE grants first lottery license in key step for gaming reform
The UAE has granted its first lottery license, a key step in establishing a regulated commercial gaming sector in the emirates, where construction of the Gulf’s first casino resort is underway in Ras Al Khaimah, The Circuit’s Jonathan Ferziger reports.
Luck of the Draw: Approval of the new UAE Lottery, to be run by commercial gaming operator The Game LLC, was announced on Sunday by the General Commercial Gaming Regulatory Authority, a federal body which was set up late last year to oversee future gaming activities in the country.
Chipping In: The move comes amid anticipation of Las Vegas casino operator Wynn Resorts’ $4 billion development on the Marjan islands, about one hour’s drive north of Dubai, which is expected to open in 2027.
Family Money
Financial advisors turn to Gulf’s ultra-high-net-worth families
More financial services firms that cater to ultra-high-net-worth families are popping up in the Arabian Peninsula as family offices emerge as one of the fastest-growing segments for wealth creation, Kelsey Warner writes for The Circuit.
Demographic Shift: The so-called Great Wealth Transfer is forecast to pass nearly $20 trillion from the older generations to Gen-X, Millennial and Gen-Z adult children and grandchildren over the next two decades.
Bridging the Gulf: This phenomenon will be acutely felt in the UAE and Saudi Arabia, where family businesses make up the majority of private companies. More family offices are cropping up to deploy an expanding pot of wealth as diversification from oil picks up pace in the region and opportunities for investment expand.
💲 Sovereign Circuit
Abu Dhabi Investment Authority: The UAE sovereign wealth fund is among the large investors likely to participate in an upcoming $1 billion stock offering for Adani Energy, along with Abu Dhabi-based International Holding Co. and India’s GQG Partners, according to MoneyControl. Meanwhile, ADIA became an anchor investor in the IPO of India’s Akums Drugs and Pharmaceuticals, with an allocation of 6% valued at $6 million.
Public Investment Fund: Saudi Arabia is eyeing a collaboration with Chilean state-owned miner Codelco to develop lithium deposits, as it continues to hunt for a supply of battery minerals for its domestic EV industry. Electric carmaker Lucid, which is 60% owned by the PIF, opened a factory in the kingdom last year and is attempting to become a major regional EV manufacturer but Saudi is yet to secure sufficient lithium supplies.
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. Mubadala-backed Aldar Properties, Abu Dhabi’s biggest developer, reported a 37% increase in net profit year-on-year of AED1.8 billion ($490 million) for Q2 of 2024. Strong property demand drove a 64% YOY surge in quarterly revenue to AED5.3 billion.
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
💸 Paying Bills: Dubai-traded Al Ansari Financial Services agreed to acquire Bahrain’s BFC Group for $200 million, creating the GCC’s largest provider of bill-paying and currency exchange services.
⚽ 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.
⛽ 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.
👷 Drilling Rights: Egypt’s Ministry of Petroleum and Mineral Resources signed agreements worth $222 million with Shell Egypt and Malaysia’s Petronas for drilling rights in the Mediterranean’s West Delta region.
💳 Credit Acquisition: Pagaya, an Israeli consumer credit fintech, acquired Silicon Valley competitor Theorem Technology for an undisclosed price that Calcalist pegged at tens of millions of dollars.
🗣 Circuit Chatter
🛢️ Keeping Steady: An OPEC+ panel is unlikely to make changes at an Aug. 1 online meeting to its current deal to cut production despite recent declines in oil prices, Reuters reports.
☀️ Warming Up: A summer heat wave accompanied by high humidity has made temperatures in Dubai feel higher than 60C (140F), giving an indication of how global warming will affect the Middle East in the near future, Bloomberg reports in a feature story on weather trends.
✈️ 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.
🇲🇦 Free Trade: The UAE and Morocco agreed on final terms for a Comprehensive Economic Partnership Agreement, cutting import fees and other tariffs to spur trade between the two countries.
🌍 Power Circuit
Egyptian President Abdel Fattah al Sisi accompanied UAE President Sheikh Mohamed bin Zayed on a walking tour of the Mediterranean coastal city of Alamein on Tuesday. The pair appeared in videos posted on social media touring the city’s streets in relaxed attire, stopping to take photos with citizens.
King Mohammed VI of Morocco marked his 25th anniversary on the throne with a speech that urged all citizens to recognize their “solemn duty” to conserve water. “Spending billions and billions in order to mobilize water resources, only to see that cases of waste and misuse continue to exist, is unacceptable,” the king said.
Sheikh Abdullah bin Zayed, UAE Deputy Prime Minister and Minister of Foreign Affairs, headed the UAE delegation attending the inauguration ceremony of Iran’s new President Masoud Pezeshkian in Tehran on Tuesday. The delegation included Abdullah bin Touq Al Marri, Minister of Economy; Mohammed Hassan Al Suwaidi, Minister of Investment and Khalifa Shaheen Al Marar, Minister of State.
Britain’s King Charles hosted a meeting in London on Friday to discuss climate change with COP28 President Dr. Sultan Al Jaber, as well as representatives of this year’s summit host Azerbaijan and next year’s host Brazil.
Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, issued a resolution to restructure the Abu Dhabi Chamber of Commerce and Industry’s Board of Directors, appointing Ahmed Jasim Al Zaabi as Chairman.
➿ On the Circuit
Egyptian Prime Minister Mostafa Madbouly held a meeting with Minister of Civil Aviation Sameh El-Hefny to discuss the country’s airports and said the government needs to prioritize development work at Alexandria’s Borg El Arab Airport due to high demand for flights there.
Omar Sultan Al Olama, the UAE’s Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, launched the country’s new Charter for the Development and Use of Artificial Intelligence, declaring the government’s goal of developing “world-leading digital infrastructure and enhancing an integrated system that employs AI in all vital sectors.”
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.
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
🐶 Best in Show: The live show of children’s cartoon phenomenon Bluey kicks off at Abu Dhabi’s Etihad Arena this week, running until Sept. 1. The Emmy Award-winning Australian animation series featuring a lovable family of Blue Heeler dogs, Bluey, Bingo, Bandit, and Chilli, has become a cornerstone of Disney programming, consistently ranking among the top five series on Disney+ and clocking up billion-minute viewing weeks.
⛪🕌🕍 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 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 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.
Sept. 24-25, Dubai, UAE: ACT Middle East Treasurers Summit. Corporate treasurers and financial professionals from across the region gather for policy discussions on issues ranging from cash management to sustainability. Grand Hyatt Dubai
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.
