The Daily Circuit
👋 Hello from the Middle East!
Today in the Daily Circuit, we’re looking at the UAE’s crackdown on fraudulent labor recruiters, introduction to the region of new non-alcoholic beers, China’s contract to build a $972 million solar energy plant in Saudi Arabia and the summer holiday taken by Dubai’s ruling family in the Scottish Highlands. But first, Egypt takes a big step to reduce carbon emissions.
In a move considered crucial to mobilize green financing in the region, Egypt has launched its first voluntary carbon trading market. Companies will henceforth be able to use the market to register, buy and sell carbon certificates in Egypt and across Africa, creating a powerful incentive for investment in projects that reduce emissions.
Opening the market is an important step towards economic and environmental sustainability for Egypt and will position the country as a regional leader in the green economy, Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation, said at an event this week to mark the launch, Arab News reports. Several companies have reportedly already purchased credits this week.
The Egyptian government is also ramping up green energy projects, with plans to save $4.1 billion a year by adding up to 30 gigawatts of renewable energy capacity to its national grid in coming years.
The developments mark a turnaround for Egypt, where extreme heat waves, combined with a crippling financial crisis, forced the government to cut electricity for up to three hours a day earlier this summer. An IMF-prescribed rescue package has since spurred a wave of reform and economic investment, with a heavy focus on green industries.
📰 Developing Stories
NEAR-BEER HERE
Brewers such as Carlsberg and Anheuser-Busch Inbev are looking at the MENA region as fertile territory to build sales of zero-alcohol beer. Interest in the brews – which are acceptable under Islamic laws that ban alcoholic beverages – is rising since AB InBev launched Corona Cero in Saudi Arabia earlier this year, Reuters reports. The near-beer offers “new frontiers of growth and brand building in expansion markets,” Brian Perkins, AB InBev’s head of Western Europe, told the news agency. While alcohol is almost completely banned in Saudi Arabia and Kuwait, other countries allow limited sales to foreigners, creating a niche market of travelers and expats. No-alcohol brands like Carlsberg’s Moussy and Heineken’s Fayrouz, by contrast, see prospects for growth now among the local populations, Reuters said.
PROTECTING WORKERS
Companies that lure workers to the UAE with the promise of jobs that don’t materialize will face heavy penalties of up to AED 1 million ($272,000) for labor law breaches outlined under a new federal decree. The crackdown aims to prevent cases of workers being asked to pay money to unscrupulous recruiters, then being abandoned on short-term visit visas with no job and no money to get home. It also targets employers who hire minors and workers without valid permits, or those who close their businesses without settling wages owed. “This is a warning to companies that misuse the visit visa. They bring people in to work for three or four months and let them go when they ask for their salary,” Dubai attorney Hashik Thayikandy told The National.
💲 Sovereign Circuit
Public Investment Fund: A business group led by China Energy Engineering signed a $972 million contract to build a solar power plant in Saudi Arabia in a joint venture with the PIF, ACWA Power and Saudi Aramco Power. ACWA Power, meanwhile, signed a power purchase agreement with Indonesia’s state-owned PT Perusahaan Listrik Negara for its inaugural floating solar photovoltaic project in the country.
ADQ: Etihad Rail, the ADQ-owned operator of the UAE’s rail network, announced a financing framework that could lead toward issuing green bonds to build reduced-carbon infrastructure. Meanwhile, ADQ-controlled AD Ports Group has announced the completion of the acquisition of a 60% stake in Georgia’s Tbilisi Dry Port. The port will become a key part in the Middle Trade Corridor connecting Asia and Europe.
Qatar Investment Authority: Phoenix Suns star forward Kevin Durant’s purchase of a stake in the QIA-backed Paris-Saint Germain soccer team is the latest example of U.S. celebrity athletes investing in European pro leagues, Front Office Sports reports.
↪↩ Closing Circuit
🛗 Hydrogen Tower: Magnom Properties, a Cairo-based real estate unit of Saudi Arabia’s Rawabi Holding, plans to break ground in Egypt’s new capital early next year on a $1 billion office tower that aims to be the first of its kind to be powered by clean hydrogen.
🇺🇿 Water Treatment: A consortium led by Abu Dhabi Sustainable Water Solutions Co. signed an agreement with the government in Uzbekistan to help develop a $1 billion wastewater treatment plant in Tashkent.
🚚 Managing Logistics: Saudi Arabia will build two new logistics zones at Jeddah Islamic Port and King Abdulaziz Port in Dammam with a $43 million investment managed by a partnership between the General Authority for Ports and Aljeri Logistics Services Co., Arab News reports.
💸 Funding Food: MealPlanet, a UAE-based foodtech startup, raised $6 million in a seed-funding round from investors including Middle East Venture Partners, AlTouq Group, Sanabil 500, Faith Capital, Alturki Ventures and entrepreneurs Marc Lore and Samih Toukan.
🌐 Mining Data: Definity, an Israeli data technology startup, raised $4.5 million in a seed funding round led by Stage One Ventures.
🗣 Circuit Chatter
🗄️ Regional Hub: The number of companies opening offices in Abu Dhabi’s ADGM financial center rose by 31% in the first half of 2024, with investment bank Morgan Stanley among them.
🦠 Virus Alert: The World Health Organization has declared a public health emergency for the mpox outbreak in Africa, after more than 14,000 cases and 542 deaths were recorded so far this year.
🏘️ Foreign Buyers: Abu Dhabi’s booming real estate market saw a 225% increase in foreign direct investments in the first half of 2024, totalling $893 million from 971 investors.
🏭 Energy Explorers: Iraq signed initial deals for 13 oil and gas exploration blocks and fields that could raise output by 750,000 barrels of crude and 850 million standard cubic feet of gas, Reuters reports.
🌍 Power Circuit
Sheikh Mohammed bin Rashid, UAE Vice President and Ruler of Dubai, was the first visitor at the new London outpost of Dubai restaurant Parker’s at the Jumeirah Lowndes Hotel in Belgravia. Sheikh Mohammed and son Sheikh Hamdan bin Mohammed, appear to be on summer vacation in the U.K., with recent videos shared by the Crown Prince on social media featuring fly fishing and outdoor dining in the Scottish Highlands, where the family owns an extensive estate.
Saudi Crown Prince Mohammed bin Salman continues to seek a mega-deal boosting cooperation with the U.S. that would include normalized relations with Israel because of the economic, technological and military benefits he sees for his country, Politico reports. Amid the negotiations, MBS has frequently brought up the risk he faces of assassination, pressing the U.S. to put pressure on Israel to accept a Palestinian state, the report said.
➿ On the Circuit
Amin Nasser, President and CEO of Saudi Aramco, led the Forbes Middle East ranking of the Top 100 CEOs for the fourth consecutive year. He was followed by Dr. Sultan Al-Jaber of ADNOC Group, Ahmed bin Saeed of Emirates Airline, Saad Al-Kaabi of QatarEnergy and Syed Shueb of International Holding Co.
Amos Hochstein, the White House peace envoy, met in Beirut on Wednesday with Lebanese Parliament Speaker Nabih Berri as part of global efforts to prevent a war between Iran-backed Hezbollah and Israel.
Faisal Sultan, Vice President and Managing Director of PIF-backed Lucid Middle East, told Arabian Business that Saudi Arabia aims to produce 500,000 electric vehicles a year by 2030, investing $50 billion in the automotive industry over the next decade to “solidify the kingdom as a leading regional hub in the EV sector.”
🎶 Culture Circuit
🌟 Written in the Stars: The sweltering summer heat may be nearly over in the UAE, at least according to the stars. In Arab folklore, the appearance of the Suhail star, which is expected to be visible in the next two weeks, heralds the beginning of cooler nights and the shift towards winter. The celestial event is tracked across the Middle East, with astronomers expecting the star to make an appearance between Aug. 22-24.
🗓️ Ahead on The Circuit
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. 12, Dubai, UAE: U.S.-U.A.E. Space Relationship. U.S.-U.A.E. Business Council hosts luncheon featuring astronaut Sultan Al Neyadi, Minister of Youth; Salem Al Marri, Director General of Mohammed Bin Rashid Space Centre; and U.S. Ambassador Martina Strong. Ritz Carlton Hotel, DIFC.
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.
