The Daily Circuit
đź‘‹ Hello from the Middle East!
Today in the Daily Circuit, we’re looking at ADQ’s $1 billion investment in Sotheby’s, Dubai’s new “15-minute city,” the Gulf appetite for Lamborghinis greened up with electric engines and Saudi designer Honayda Serafi’s debut at Saks Fifth Avenue. But first, Saudi Arabia is rewriting regulations to remove roadblocks to investment.
Saudi Arabia is starting from the ground up to make the kingdom “a welcoming and secure environment” for international business, in the words of Investment Minister Khalid Al-Falih.
The government announced new regulations on Sunday that scrap the bureaucracy-heavy issuance of foreign investor licenses in favor of a streamlined registration process that aims to remove roadblocks to investment. According to the Ministry of Investment, the measures will guarantee the rule of law, fair treatment and the freedom to transfer funds without delay.
In recent years, Saudi Arabia has introduced a raft of measures to woo foreign investment, including issuing visas specifically for investors, creating special economic zones with lower tax rates, and overhauling money transfer and bankruptcy laws.
With ambitious building plans across the country, including the $1.5 trillion Neom mega-project along the Red Sea coast, Saudi Arabia seeks to attract more than $100 billion in foreign direct investment a year by 2030 as part of an effort to shift the economy from dependence on oil.
đź“° Developing Stories
15-MINUTE CITY
Work has started on the first homes being built at the site of Dubai’s Expo City, which is expected to become the UAE’s first “15-minute city.” The planning concept, which has become popular in global discussions about better urban design in recent years, essentially means all the amenities of daily life will be located in close enough proximity to be accessed on foot or by bicycle. Expo City Dubai authorities say the first apartments, which will have views of Expo landmarks including Al Wasl Plaza, are expected to be handed over in Q1 2026. The development, Mangrove Residences, has already sold out, with prices starting at AED 2 million ($544,590) for a one-bedroom apartment.
ELECTRIC REV HEADS
The Gulf’s love of supercars has attracted a new hustle in the luxury car industry – retooling iconic models into green machines with all-electric engines. One client of British luxury car company Everrati, which is bringing its method of electric restorations to the UAE, has ordered a battery to replace the V12 engine in their “Rambo Lambo” Lamborghini LM002. And the Mercedes G-Wagen, favored by Gulf royals including Dubai Ruler Sheikh Mohammed bin Rashid, is about to get the same treatment from Everrati, which has teamed up with Arcade Cars to start electrifying the luxury off-roader. The Middle East is an obvious market for the high-end conversions, Everrati founder Justin Lunny told The National. “There’s a lot of car people, and certainly from what I’m seeing, a lot more interest in electric vehicles,” he said.
đź’˛ Sovereign Circuit
ADQ: The Abu Dhabi-based sovereign wealth fund signed an agreement to take a $1 billion minority stake in Sotheby’s alongside controlling shareholder Patrick Drahi.
Mubadala: Brazilian state-run oil firm Petrobras does not see the repurchase of the Mataripe refinery from Mubadala as a priority, CEO Magda Chambriard said during an earnings call on Friday. The firm is wrapping up its due diligence process and is yet to decide if reacquiring it would be advantageous, Chambriard said.
Public Investment Fund: Saudi Arabia’s sovereign wealth fund and investment funds in Abu Dhabi are taking steps to protect themselves from unsteady bets on tech firms, Business Insider reports.
↪↩ Closing Circuit
💸 Cashed Up: Abu Dhabi-based investment management company Waha Capital will use a newly approved $400 million revolving credit facility to invest in “emerging growth opportunities”.
🎓 Research Grant: Saudi Aramco pledged up to $100 million in funding over the next 10 years for projects at King Abdullah University of Science and Technology (KAUST) that aim to deliver environmental and commercial benefits.
đźšš Logistics Zone: Egypt and the UAE signed a deal to establish a new logistics zone in the Hamra Petroleum Port for trading in the Mediterranean region that is projected to attract as much as $3 billion in investment.
đź’° Startup Fund: Boston-based Flint Capital announced the closing of a $160 million venture capital fund to invest in early-stage Israeli and European startups in fields including cybersecurity, fintech, digital health and enterprise software.
đź—Ł Circuit Chatter
â›˝ LNG Appetite: Global liquefied natural gas demand is expected to rise as more countries turn to imports for the first time, Adnoc Gas Chief Financial Officer Peter Van Driel told Bloomberg, adding that Abu Dhabi National Oil Co. is building a new plant that will more than double the UAE’s LNG export capacity when it starts operating in 2028.Â
🏡 Tight Market: Abu Dhabi’s increasing attractiveness for expat professionals has created high demand for rental housing and made finding affordable accommodations much more difficult, The National reports.
🔠Space Base: Saudi Arabia’s Royal Commission for AlUla and the California-based SETI Institute have agreed to collaborate on developing the AlUla Manara Observatory as a leading facility for space research and astro-tourism.
🇸🇦 Arms Sales: The U.S. will lift a ban on selling offensive weapons to Saudi Arabia, reversing a three-year-old policy that had been aimed at pressuring the kingdom to halt the war in Yemen.
🧺 Clean Cash: The UAE has amended its anti-money laundering laws to support efforts to fight financial crime and align technical compliance with international treaties and recommendations.
🌍 Power Circuit
Saudi Crown Prince Mohammed bin Salman presided over a meeting of the board that governs a nature preserve bearing his name, launching a new management plan last week that covers environmental, economic, social, tourism, and cultural aspects of running the 24,500 square kilometer (9,460 square mile) park.
Princess Reema Bandar Al-Saud, Saudi Arabia’s Ambassador to the U.S. and International Olympics Committee member, spoke out against bullying and harassment of female athletes, including Algerian boxer Imane Khelif, at the 2024 Paris Olympics. “I offer my full support to every female who has been subjected to unnecessary criticism in what should be their time to shine,” she said.
Sheikh Abdullah bin Zayed, UAE Deputy Prime Minister and Minister of Foreign Affairs, held a phone call with Constantinos Kombos, Minister of Foreign Affairs of Cyprus, on Sunday to discuss developments in the Middle East.
âžż On the Circuit
Abbas Araghchi, Iran’s former nuclear negotiator, has been named Foreign Minister in President Masoud Pezeshkian’s new government. Mohsen Paknejad was named Oil Minister.
James Craven, President of Live Nation Arabia, said the concert promoter’s deal to manage events in AlUla’s Maraya performing arts center will turn the mirrored building into one of the most unique and must-see venues in the region.”
Mohammad Ali Rashed Lootah, Dubai Chambers President and CEO, told The National that Dubai was aiming to attract more Chinese investment in sectors including green tech, electric vehicles, e-commerce, artificial intelligence, health care and renewables.
🎶 Culture Circuit
đź‘— Cosmic Couture: Luxury New York department store Saks Fifth Avenue has debuted its first Saudi woman designer, Honayda Serafi, founder of eponymous label Honayda. Her spring/summer 2024 Cosmos collection, now in store, is inspired by women in space exploration, features sky blues and bright pinks shimmering with sequins and crystals.
đź“· 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 MĂ©ridien 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.
