The Daily Circuit: How Apollo, Blackstone and BlackRock are now wooing Gulf sovereigns

DECLINING DEMAND

The slowdown in China’s economy is reverberating in the Gulf as oil producers consider whether to maintain last year’s production cuts. OPEC on Monday cut its forecast for global oil demand through the rest of this year, the first reduction since production levels were set in July 2023, Reuters reports. Much of the reasoning behind the decision stems from slumping diesel consumption in China, the world’s second-largest economy, and the collapse of some of the country’s biggest property companies. Oil prices increased by as much as 3% on Monday, rising for a fifth day amid the widening Middle Eastern conflict that may tighten global crude supplies, the news agency said. Prices stabilized today in early trading.

VIRTUAL AGENT

A virtual real estate consultant powered by artificial intelligence has already closed $30 million in real estate transactions in Dubai three weeks after launching. The AI agent, which goes by the name Jucica Brown, was launched by Realiste AI on messaging app Telegram and has so far closed 50 transactions, company founder Alex Galt told Arabian Business. Jucica is designed to feel like interacting with a human agent, including small touches like showing when she is “typing” a reply. “Many of the users interact with her posts unaware of her digital nature,” Galt said, adding that the company believes the technology will redefine property sales. Companies and government agencies in the UAE have been quick to adopt AI. Earlier this year, International Holding Co., the Abu Dhabi-owned industrial conglomerate, announced that it had created a new post on its Board for an AI observer developed by G42 in collaboration with Microsoft.

🛢️ Oil Finance: Bapco Energies, Bahrain’s state-owned oil company, secured a $500 million financing package from the U.S. Export-Import Bank, known as EXIM, to expand operations in southern Bahrain.

🚙 Servicing EVs: Lucid Group, the Saudi-backed electric vehicle manufacturer based in California, opened its new Lucid Studio, an integrated retail, delivery, and service center for its flagship Lucid Air four-door sedan, in Jeddah.

🍞 Wheat Purchase: Egypt, the world’s largest importer of wheat, bought less than a tenth of the grain it had sought in a bumper tender, failing to lock in current prices for as much as 3.8 million tons of wheat to be delivered between October and April. Instead it was able to secure only 280,000 tons of wheat from Ukraine and Bulgaria.

🍕 Brand Buyback: Americana Restaurants International, which operates brands such as KFC, Krispy Kreme and Pizza Hut in the MENA region, purchased 1.25 million of its own shares on Monday to begin a buyback program recently approved by shareholders and regulators.

📈 High Profile: Adnoc Drilling’s stock has been selected for inclusion in MSCI indexes as of August 30, giving it more visibility among global investors.

🗣 Circuit Chatter

💎 Wealth Havens: The UAE, Singapore and other low-tax financial capitals are competing to attract the world’s super-rich with Europe’s traditional enclaves such as Switzerland and Monaco, the Financial Times reports.

🧳 Flight Fright: Bookings for air travel in the Middle East are falling amid growing fears of a wider conflict involving Iran, with Jordan and Lebanon suffering the biggest drops.

🔬 Material Promise: Futuristic carbon material Graphene could be used to remove carbon dioxide from the atmosphere, according to groundbreaking research involving Abu Dhabi scientists published in Nature.

💸 Young Investors: Thndr, an Egyptian fintech startup whose mobile app aims to help young people across the MENA region invest in securities, said it plans to launch in Saudi Arabia by the end of the year after it obtains the necessary licensing.

✈️ Building Ties:  Israel Aerospace Industries is proceeding with a plan to establish a presence in Abu Dhabi, where it will convert Emirates aircraft into freighters, an indication of the UAE’s commitment to growing its ties with Israel even amid regional tension, Bloomberg reports.

🌍 Power Circuit

King Salman of Saudi Arabia and Crown Prince Mohammed bin Salman offered condolences to Sheikh Mishal Al-Sabah, Emir of Kuwait, following the death of Sheikh Salem Al-Sabah, 98, who was Chief of the National Guard for six decades.

Egyptian Prime Minister Mostafa Madbouly led a government meeting to discuss plans for cultivating a mobile phone manufacturing industry in Egypt and expanding hotel room capacity as ways to attract foreign investment and boost economic growth.

➿ On the Circuit

Juan Suarez, Group CEO of SUAREZ, told Arab News Saudi Arabia is a “pivotal market for silent luxury.” The high-end Spanish jewelry label has opened its first Middle East store in Jeddah’s Khayat Center.

Abdulwahab Al Maimani, Founder and CEO of Omani investment firm Abdulwahab’s Office, is featured in the cover story of Arabian Business magazine’s August issue.

🎶 Culture Circuit

🏄 New Wave: An artificial wave park on Hudayriyat Island, which was designed in collaboration with world champion surfer Kelly Slater and features the world’s largest barrels and longest ride, will open to the public in October. Surf Abu Dhabi will have the capacity to host international surf competitions, a novel concept in a city known for its calm mangrove-fringed waters.

📷 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. 15-19: Abu Dhabi. Loop Beyond Borders. Luxury travel fair brings together hotel owners, tour operators, travel agents and government officials. Saadiyat Rotana Resort & Villas and Anantara Qasr Al Sarab.

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.