MARKET WOBBLES

A stock market rout led by Japan, where the Topix index plunged 12.2% in its biggest one day loss in more than 30 years, is continuing as markets open across the rest of the world today, amid fears of an economic slowdown in the U.S. While the sell-off was less pronounced than in Japan, markets in the Middle East fell on opening, with the Saudi Tadawul All Share Index showing declines of more than 3%, Abu Dhabi’s FTSE ADX down more than 3% and Dubai Financial Market’s General Index falling more than 4%. Dubai’s largest property developer, Emaar, was among the hardest hit, with its shares plunging more than 8% in the UAE. European markets opened down, with the tech sector leading falls and U.S. stock futures pointing to heavy losses when markets open. 

SUCCESSION PLAN

Asia’s second richest man Gautam Adani has laid out his succession plans for the first time, telling Bloomberg in a rare interview that he will retire at 70 and hand over the reins of his vast Adani Group conglomerate to his two sons, Karan and Jeet, and their cousins, Pranav and Sagar. The 62-year-old tycoon is currently the 11th richest individual in the world, with a net worth of more than $100 billion, and has deep business connections in the Gulf from ports and power to tech and AI. Planning for one of the world’s largest and most complex transfers of wealth kicked off in 2018 when Adani invited the four heirs to lunch at his home and gave them a three-month ultimatum to decide whether they would keep the Adani Group together or split it up and part ways, Bloomberg reported. The four men decided to stick together. “I am happy that all of them are hungry for growth, which is not common in the second generation,” Adani said. “They have to work together to build a legacy.”

Mubadala: MGX, the artificial intelligence mega-fund created in January through a partnership between Mubadala and G42, has reportedly joined a consortium in a bid for Australian data center AirTrunk in a deal worth more than $12.8 billion. The consortium is led by IFM Investors, DigitalBridge, Silver Lake Management, and Global Infrastructure Partners.

Abu Dhabi Investment Authority: L’Oreal is buying a 10% stake in Galderma Group, a Swiss maker of injectable skin fillers, from a consortium that includes ADIA, Sunshine SwissCo and Auba Investment.

International Holding Company: Enersol, a joint venture between ADNOC Drilling and IHC-controlled Alpha Dhabi Holding, is set to acquire EV Holdings, which provides vision-based diagnostics and analytics services for the oil and gas sector, for approximately $45 million from UK-based private equity firm, Dunedin.

Qatar Investment Authority: Nasser Al-Khelaifi, chairman of QIA-owned Qatar Sports Investments, the majority owner of the Paris-Saint Germain football club, has become one of French soccer’s most influential figures, Bloomberg reports.

↪↩ Closing Circuit

🛢️ Oil Drilling: A unit of Sweden’s Tethys Oil was granted a loan facility for $60 million from Abu Dhabi Commercial Bank to support its drilling for oil at two sites in Oman.

🏡 At Home Abroad: Egypt’s Beit Al-Watan initiative, which encourages Egyptians living abroad to invest in the domestic housing market, has brought in $7.3 billion since its launch in 2012, the government said.

🏦 Banking Bid: Dubai-listed Emirates NBD has been shortlisted to submit a bid to buy a majority stake in Indian state-backed IDBI Bank, vying with Canada-based Fairfax Financial Holdings and Indian lender Kotak Mahindra Bank, Reuters reports.

⌚ Time Flies: Titan Watches, part of Indian conglomerate Tata Group, plans to open 35 outlets across the Gulf region over the next 12 months, Arabian Business reports.

💼 Slowing Down: Non-oil business activity in the UAE improved at the weakest pace in almost three years in July amid heightened competition, rising price pressures and capacity overloads, according to the seasonally adjusted S&P Global UAE Purchasing Managers’ Index.

🗣 Circuit Chatter

🛩️ Fraud Alert: The UAE’s Securities and Commodities Authority and Etihad Airways issued notices alerting the public to fake advertisements inviting people to invest in a fictitious IPO for the Abu Dhabi airline.

🛫 Flights Grounded: Many international airlines, including Lufthansa, British Airways and Air India, are canceling flights to Beirut and Tel Aviv amid concerns of growing escalation in the Middle East conflict.

🩺 Luxury Hospital: Oman’s Badr Al Samaa Royal Hospital was opened as a private healthcare facility in the capital city of Muscat offering “world-class medical care in a luxurious environment.”

✈️ Not for Sale: Egypt is seeking private investment in its airports and flight support services, but doesn’t plan to sell any of the facilities outright, Civil Aviation Minister Sameh El-Hefny said.

🍗 Boycott Bite: Revenues have fallen significantly at American brands in Muslim countries such as Kentucky Fried Chicken, Starbucks and Coca-Cola because of consumer boycotts, as fighting in Gaza goes into its 10th month, the Financial Times reports.

📃 AI visa drive: The UAE will streamline processes for a two-month residency visa amnesty using artificial intelligence, The National reports.

🌍 Power Circuit

UAE President Sheikh Mohamed bin Zayed conveyed his condolences to Abdul Hamid Dbeibeh, Prime Minister of Libya’s Government of National Unity, over the death of his son, Abdulrahman.

➿ On the Circuit

Nabil Ouajjane, founder of London-based Aster Capital Management, is moving to Dubai and opening an office amid a wave of investment firms building up their presence in the Gulf.

Nicolai Tangen, CEO of Norway’s $1.7 trillion NBIM investment fund, is increasingly backing shareholder activists on climate action and corporate governance, Fortune reports.

Sheikh Abdullatif Al-Asheikh, the Saudi Minister of Islamic Affairs, Dawah, and Guidance, met with Syrian Minister of Awqaf Mohammad Abdul-Sattar Al-Sayyed in Mecca on Sunday on the sidelines of the Conference of Ministers of Awqaf and Islamic Affairs.

🎶 Culture Circuit

⚾ Batter Up: Baseball United, the first professional baseball league focused on the Middle East and South Asia, announced plans to start its opening season Oct. 23 in the UAE, with a championship tournament scheduled for next February.

📷 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.

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.