👋 Hello from the Middle East!

Today in the Daily Circuit, we’re looking at Abu Dhabi-based IHC’s new financial services business, Aramco’s $31 billion second-quarter dividend, Mubadala’s LNG-powered cargo transport and ADIA’s bidding odyssey for the U.K’s Hargreaves Lansdown. But first, EV maker Lucid Motors draws more cash from the PIF.

Saudi Arabia’s Public Investment Fund has pumped another $1.5 billion into electric vehicle start-up Lucid Motors ahead of the launch of its first SUV later this year. The PIF, which already has a 60% stake in California-based Lucid after investing about $8 billion over several years, will buy $750 million in convertible preferred stock and provide a $750 million loan facility through Ayar, an affiliate investment company.

Nasdaq-traded Lucid reported Q2 earnings yesterday, recording a $790 million net loss, but beating analyst expectations with $200 million revenue after delivering 2,394 cars in the quarter. The EV maker expects to produce 9,000 cars for 2024, with the launch later this year of the Gravity SUV, priced at around $80,000, which is likely to diversify its potential customer base. 

Saudi Arabia has been scouring the globe for potential supplies of lithium, a critical mineral used in battery production, as it attempts to become a major regional EV manufacturer, with Lucid opening a factory in the kingdom last year. 

Bandar Alkhorayaf, Saudi Arabia’s Minister of Industry and Mineral Resources, toured Brazil and Chile over the past two weeks looking for mining investment opportunities. As a result, the kingdom is eyeing a collaboration with Chilean state-owned miner Codelco to develop lithium deposits.

📰 Developing Stories

TRADE VEHICLE

International Holding Co., the broad-based conglomerate controlled by UAE power broker Sheikh Tahnoon bin Zayed, is expanding its financial services business by forming Rorix Holdings. The new company under the IHC umbrella will focus on finance, commodities trading and trade insurance. Through Rorix, IHC aims to accelerate trade volumes, attract foreign investment, and broaden economic partnerships, CEO Syed Basar Shueb said in a statement on Monday. The new firm will seek to capitalize on a flurry of free trade agreements the UAE has signed in the past three years with countries including India, Indonesia, Israel, Turkey and South Korea, he said.

PETROLEUM PAYOUT

Sliding oil profit hasn’t stopped Saudi Aramco from paying a $31 billion dividend in the second quarter. The state-owned petroleum producer reported that net income fell 3.4% to $29.1 billion in the three-month period ended June 30 compared with a year earlier, attributing the slimmer profit to production cuts agreed upon by OPEC to stem oil price declines. Nevertheless, Aramco distributed the dividend, which is the lifeblood of Crown Prince Mohammed bin Salman’s Vision 2030 plan to diversify the economy from dependence on oil and finance more than $1.5 trillion in megaprojects such as the Neom development on the kingdom’s Red Sea coast. Shares of Aramco, the world’s largest oil company, have declined 19% this year, underperforming rivals such as Exxon Mobil and Shell.

💲 Sovereign Circuit

Mubadala: Emirates Global Aluminium, a Mubadala-backed manufacturer, said it used an LNG-fueled cargo vessel to ship bauxite to China, cutting greenhouse gas emissions by as much as 28% over conventional transport.

Abu Dhabi Investment Authority: Hargreaves Lansdown gave a consortium led by ADIA and CVC Advisers until Aug. 9 to make a firm offer of at least $6.9 billion for the British investment platform.

International Holding Co.: Inception, a subsidiary of Abu Dhabi-based G42, which is controlled by IHC parent Royal Group, launched its latest large language model, JAIS 70B, with what the company describes as unparalleled Arabic-English capabilities.

↪↩ Closing Circuit

💼 Deal Dropped: Dubai’s Sidara is calling off efforts to spend $2 billion on a buyout of the U.K.’s John Wood consulting firm, which advises on engineering projects in the energy field, citing geopolitical risks and market uncertainty. The shares plunged 40% after the announcement.

💸 Starting Up: Oraseya Capital, the VC arm of the Dubai Integrated Economic Zones Authority, announced it is making more than $1 million in investments, spread over seven tech startups.

🍟 French Fried: Saudi Arabia’s Al-Jouf Agricultural Development Co. approved plans to expand its newly-opened factory for making french fries by 50% at a projected cost of $23 million.

👟 Keeping Track: Placer.ai, an Israeli startup platform for tracking location and foot traffic data, raised $75 million in a funding round limited to current investors, including Josh Buckley, WndrCo, Lachy Groom, MMC Technology Ventures, Fifth Wall Ventures, and Array Ventures.

📈 Building Equity: Saudi Arabia’s Capital Market Authority approved Walaa Insurance’s request for a $125 million rights issue, inviting current shareholders to increase their holdings.

🗣 Circuit Chatter

🛢️ Full Stop: Libya’s biggest oil field halted production on Monday after its operator, Akakus Oil, was forced to gradually cut output over the weekend amid growing political conflict in the North African nation, Bloomberg reports.

🛫 Maintain Altitude: Jordan has asked all airlines landing at its airports to carry 45 minutes of reserve fuel, in what experts see as a precautionary measure in case of an attack by Iran against Israel, Reuters reports.

☁️ Billowing Cloud: Oracle has opened its second cloud region in Saudi Arabia, enabling the kingdom to get more value out of artificial intelligence, The National reports.

💼 Help Wanted: The “loss and damages” fund set up at the Cop28 climate conference in the UAE is seeking its first executive director to oversee the distribution of potentially billions of dollars to countries that are worst hit by climate change.

🌍 Power Circuit

UAE President Sheikh Mohamed bin Zayed received a phone call on Monday from French President Emmanuel Macron to discuss strengthening cooperation across various fields, along with regional and international developments. Sheikh Mohamed also talked with Kenyan President William Ruto about economic cooperation in sectors including renewable energy, technology and infrastructure.

Sheikh Maktoum bin Mohamed, Deputy Prime Minister and Finance Minister of the UAE, Deputy Ruler of Dubai and Chairman of Dubai Media Inc., toured DP World’s London Gateway Logistics Park, where he was met by DP World Chairman and CEO Sultan Ahmed bin Sulayem.

➿ On the Circuit

Sheikh Theyab bin Tahnoon, who was appointed as the new chairman of Dubai-listed contractor Drake & Scull on Friday, said the company will play a “vital” role in the UAE construction sector.

Jared Kushner, founder of Gulf-backed private equity fund Affinity Partners, plans to spend $1 billion to turn bombed-out buildings in Albania and Serbia into luxury hotels and homes, Bloomberg reports.

Brian Lott, Mubadala’s Chief Communications Officer, and Andy Sieg, Head of Wealth at Citigroup, discussed their joint sponsorship of the Mubadala Citi DC Open this past weekend on The Tennis Channel.

🎶 Culture Circuit

🎨 Korean Collab: Dubai’s Arte Museum, presented by Korean visual arts company d’strict, has signed an agreement with the UAE Media Council to collaborate across several areas, including producing content and training local UAE talent in digital media and visual arts.

📷 Photo of the Day

🗓️ Ahead on The Circuit

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. 

Aug. 24-25, Riyadh, Saudi Arabia. New Global Sports Conference. Uniting top players to showcase how esports can create new global opportunities. Four Seasons Hotel Riyadh.

Aug. 31-Sept. 8, Abu Dhabi, UAE. Abu Dhabi International Hunting and Equestrian Exhibition (ADIHEX). The premier event for hunting, falconry and equestrian enthusiasts in the Middle East. ADNEC.

Sept. 1-7, Dubai, UAE. Dubai Fashion Week. Promoting Dubai’s creativity and fashion businesses to a worldwide audience. Dubai Design District.

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.