The Weekly Circuit
👋 Hello from the Middle East!
This week we’re looking at the new radar imaging satellite launched into orbit by the UAE, Saudi Arabia’s $1 trillion budget for capital expenditures, a 23% jump in the Qatar Investment Authority’s assets under management and the Dubai court ruling that employees can be paid in cryptocurrency. But first, the Saudi PIF is growing larger and choosier.
Amid indications that Saudi Arabia’s Public Investment Fund is tightening its belt, the sovereign wealth fund’s coffers grew at a higher rate last year than in 2022.
The PIF, which bankrolls a wide range of the kingdom’s investments including Neom, Riyadh Airlines and LIV Golf, reports that assets under management increased to $765 billion at the end of 2023, a growth rate of 8.7% compared to 8% in the previous year.
Reviewing the fund’s performance in its annual report released on Monday, Chairman Yasir Al-Rumayyan said the PIF “has continued to deliver on its mandate as the driving force of Saudi Arabia’s sustainable economic transformation and diversification.”
After years in which the fund became a go-to source for bankers, venture capitalists and dealmakers pitching investments around the world, the PIF is narrowing its focus to concentrate on priorities closer to home, the Financial Times reports.
With oil prices slumping, Saudi officials are applying more conditions when dispensing cash, often demanding the hiring of local employees and investment in domestic companies and projects, the newspaper said.
Welcome to The Weekly Circuit. Read on for the stories, deals and players at the top of the news across the MENA business landscape. Please send comments and story tips to [email protected].
LOW ORBIT
UAE launches radar imaging satellite into lower earth orbit
The UAE launched a satellite into lower earth orbit on Friday in the first step of a three-year program to develop a string of radar imaging devices in space to monitor conditions below, The Circuit reports.
Take Off: The Synthetic Aperture Radar satellite was launched from Vandenberg Space Force Base in California by UAE companies Yahsat and Bayanat.
Launch Pad: The two companies are in the process of merging to create a $4.1 billion AI-powered space technology business called Space42 – possibly creating one of the most valuable publicly listed space companies.
SUPER-CYCLE
Saudi $1 trillion in capital spending aims to shift economy
Saudi Arabia is headed into what Goldman Sachs terms a “capex super-cycle” as it plows more than $1 trillion into the economy and aims to strengthen industries outside the oil and gas sector, The Circuit’s Jonathan Ferziger reports.
Oil Out: In an analysis of the kingdom’s projected capital expenditures for the next five years, the New York-based investment bank expects about 73% to be spent on non-oil industries, up from its previous estimate of 66%.
Renewables In: Clean energy should get $235 billion in funding, up from a previous forecast of $148 billion, with the increase driven mainly by renewables as Saudi Arabia more than doubles its 2030 capacity target, Goldman Sachs said.
💲 Sovereign Circuit
Public Investment Fund: The PIF is in exploratory talks to line up Boeing and Airbus freighters for a new cargo airline, as it looks to turn the kingdom into a logistics hub to rival Dubai and Doha, Bloomberg reports. Saudi healthcare startup Athir raised an undisclosed amount from Wa’ed Ventures, the VC unit of PIF-backed national oil company Aramco. And, the PIF-owned Saudi Agricultural and Livestock Investment Co., known as SALIC, has agreed to sell its 40% stake in Alasmak, the Saudi Fisheries Co., to businessman Abdulaziz bin Abdullah Al-Humaid for about $33 million.
Mubadala: The Abu Dhabi sovereign wealth fund has invested in London-based hyperscale data center developer Yondr Group, its third major data center investment in three years, via a fund managed by Apollo. Meanwhile, Egypt’s electric company signed an agreement with a group led by the Mubadala-backed Masdar sustainable energy company in the UAE and its Africa unit Infinity Power to build a 200-megawatt wind power plant in the Gulf of Suez.
Mumtalakat: The Bahraini sovereign wealth fund appointed a new board of directors for Gulf Air Group, which runs the country’s national airline and airports, naming Khalid Hussain Taqi as chairman.
ADQ: The Abu Dhabi sovereign wealth fund is collaborating with Ne’ma, the UAE’s National Food Loss and Waste Initiative, to support its work across the UAE.
Qatar Investment Authority: The Qatari sovereign wealth fund’s assets under management increased 22.6% since the beginning of 2024 to $526 billion.
↪↩ Closing Circuit
🛢️ Oil Ships: Bahri, Saudi Arabia’s biggest oil shipping company, signed a $1 billion agreement to buy nine supertankers from Piraeus, Greece-based Capital Maritime and Trading Corp.
👃 Scent of Success: Saudi perfume manufacturer Al Majed for Oud Co. plans to launch an IPO on the kingdom’s Tadawul stock market, releasing 30% of its issued share capital for sale to investors.
💰 Hedge Launch: Dubai-based Magellan Capital Holdings plans to open a $700 million hedge fund next month with seed capital from the family wealth of Hassan El Ali, who founded Zakher Marine International and sold it to a unit of Adnoc two years ago, Bloomberg reports.
☀️ Solar Storage: China’s Huawei Technologies Co. is working with Saudi Arabia’s Red Sea Global to build the world’s largest solar energy storage microgrid, which will power some 50 hotels and more than 1,000 residential properties under construction on the kingdom’s western coast.
🩺 Heart Startup: Johnson & Johnson signed an agreement to buy Israeli cardiology startup V-Wave for $600 million upfront and as much as $1.1 billion in additional payments based on commercial milestones.
🗣 Circuit Chatter
🇶🇦 Growth Path: Qatar is on track to double the size of its economy by 2031, drawing on its natural gas reserves to export LNG while trying to diversify its economy to build non-fossil fuel industries, according to research published by Standard Chartered.
🦅 Fancier Bird: A peregrine falcon chick from American breeder Pacific Northwest Falcons broke sales records at the 2024 International Falcon Breeders Auction in Saudi Arabia, selling for $106,601.
✈️ Delayed Delivery: Flydubai canceled new routes to Latvia, Lithuania and Estonia planned to start in October because of delays in the expected delivery of new Boeing jets and other logistics problems.
🐩 Pet Set: Pet owners can take their furry companions on a luxury private charter flight aboard a Gulfstream GV, complete with treats and areas to relieve themselves in the air, The National reports.
₿ Crypto Paycheck: A Dubai Court ruled that companies can pay employee salaries in cryptocurrency as long as the terms of the contract are clearly spelled out.
🌍 Power Circuit
Saudi Crown Prince Mohammed Bin Salman is the subject of a two-part BBC documentary that traces his path to becoming heir to the throne and explores how he has managed to overcome international condemnation and amass power. The program also reports that Saudi Arabia is planning to build a version of the Louvre museum in Riyadh – patterned after the branch in Abu Dhabi – as a magnet for global tourism.
King Salman of Saudi Arabia chaired a Cabinet meeting on Tuesday for the first time since issuing a royal decree on Aug. 8 that allows the Cabinet to convene in his absence, or that of Crown Prince Mohammed.
UAE President Sheikh Mohamed bin Zayed visited Mullah Mohammad Hassan Akhund, the Prime Minister of Afghanistan, who is currently receiving treatment in a hospital in the UAE.
Sheikh Abdullah bin Zayed, the UAE’s Deputy Prime Minister and Minister of Foreign Affairs, held a phone call with Australian Foreign Minister Penny Wong to discuss trade, investment and the Middle East conflict.
Zaki Nusseibeh, Cultural Adviser to UAE President Sheikh Mohamed bin Zayed and Chancellor of the United Arab Emirates University, signed the transport fund for the satellite “ALainSat-1,” the university’s first satellite project, on Monday.
➿ On the Circuit
Yasir Al-Rumayyan, Governor of the Saudi Public Investment Fund; Laurence Fink, CEO of BlackRock; Stephen Schwarzman, Chairman and CEO of The Blackstone Group; Hani Enaya, Chief Investment Officer of Sanabil Investments; Anne Walsh, Managing Partner and CIO of Guggenheim Partners; Marc Rowan, Co-Founder and CEO of Apollo Global Management; Josh Harris, Founder of 26North; Nir Bar Dea, CEO of Bridgewater Associates; David Solomon, CEO of Goldman Sachs; Harvey Schwartz, Chairman of The Carlyle Group and Jenny Johnson, President and CEO of Franklin Templeton, will be among the speakers at Saudi Arabia’s annual Future Investment Initiative conference in Riyadh, which starts Oct. 29.
Ryan Breslow, founder of $11 billion e-commerce software startup Bolt, is reportedly returning as CEO after stepping down two years ago and bringing with him $450 million in new investment from firms in the UAE and the U.K., according to The Information.
Mohammad Shawkat Odeh, director of Abu Dhabi’s International Astronomical Centre, discovered a giant asteroid at least six times bigger than the Burj Khalifa.
Hassan Abdalla, head of the Central Bank of Egypt, had his term extended for another year in a step aimed at showing the country’s commitment to monetary reform after its devastating economic crisis.
🎶 Culture Circuit
📚 Literary Revival: A new generation of writers are enlivening Saudi Arabia’s literary scene, spurred on by well-funded competitions and other government initiatives. “This newfound openness to knowledge and literature … has enabled young people to make significant leaps in literary production,” Ibraheem Al-Sinan, head of editorial at Raff Publishing, tells Arab News.
📽️ Movie Magic: Four Arab films were awarded prizes in Switzerland’s Locarno Film Festival over the weekend. Titles from Tunisia, Qatar, Saudi Arabia, Egypt, Lebanon, Iraq and Palestine were included in the line-up at the festival, which is in its 77th year. Among those to be recognised was French filmmaker Sylvie Ballyot’s “Green Line,” which follows a woman growing up during the Lebanese Civil War in the 1980s.
🎤 Center Stage: Bahrain’s Dar Disku and Palestinian-Chilean singer Elyanna are leading Arabic pop’s breakout moment on the western music scene, the Financial Times reports. Far from being confined to the world music genre, as they may have been in the past, Arabic-language artists are gracing the stage at Coachella and climbing Billboard’s dance charts. Spotify scouts are even trying to unearth “the next Despacito” in Arabic, one music insider told the FT.
📷 Photo of the Week
🗓️ 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. 11-12, Dubai, UAE: Dubai AI & Web3 Festival. Bringing together the brightest minds to explore and expand the commercial possibilities of AI and Web3 technologies. Madinat Jumeirah.
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.
