👋 Hello from the Middle East!

Today in the Daily Circuit, we’re looking at the entry of TJ Maxx’s parent into the Gulf discount retail market, China’s efforts to replace the dollar with its own currency in oil trading with Saudi Arabia, a three-year low for Saudi oil export revenue and Emirates Global Aluminium’s investment in a U.S. recycling business. But first, the UAE gets another cryptocurrency.

A new stablecoin pegged to the dirham will be launched by Abu Dhabi tech conglomerate Phoenix Group in collaboration with global cryptocurrency company Tether, as the UAE ramps up efforts to become a global hub for the crypto industry. 

Stablecoins, a digital currency backed by traditional government currencies such as the U.S. dollar or euro, are designed to keep a consistent value and have seen rapid growth as an alternative to more volatile cryptocurrencies, such as Bitcoin.

The dirham is pegged to the U.S. dollar, meaning that a stablecoin linked to the Emirati currency gives consumers an alternative to Tether’s popular U.S. dollar stablecoin, while maintaining the same currency exposure.

“The main purpose is actually creating an optionality towards the U.S. dollar,” Tether CEO Paolo Ardoino told Reuters. Licensing by the UAE Central Bank is expected to take a few months, with a launch date yet to be announced. 

The dirham launch comes as Abu Dhabi’s Blockchain Center partnered with Gate Ventures this week to launch Falcon Gate, a $100 million Web3 innovation fund.

MIDEAST MOVE

TJX, owner of U.S. discount retail chain TJ Maxx, is expanding across the Gulf with an anchor in the UAE. The company agreed to pay $360 million for a 35% stake in Dubai-based BFL Group, which operates the Brands for Less stores. With a portfolio of 100 stores primarily in the UAE, Saudi Arabia, Qatar, Bahrain Kuwait, Malta and Oman, BFL is the biggest retailer of discount branded apparel, toys and home fashions in the region. “As TJX seeks to continue its global growth, this transaction gives… an opportunity to invest in an established, off-price retailer with significant growth potential,” the company said in a statement.

CHINESE CURRENCY

S&P Global Ratings gave a boost to Chinese efforts at enabling use of its currency for oil trading with Saudi Arabia. While it may take decades to make payments in yuan at a “meaningful scale,” deepening ties between the two countries may strengthen the process, the international ratings agency said in a report published on Wednesday. “Aside from the booming oil trade that continues to anchor their core relationship, long-term plans such as Saudi Arabia’s Vision 2030 are driving new institutional, financial and cultural linkages between the two countries,” Charles Chang, Greater China country lead for corporates at S&P, wrote. Chang said trading in the currency would facilitate Saudi use of Chinese engineering and construction services, as well as investment in Chinese firms across a widening range of industries.

💲 Sovereign Circuit

ADQ: Taqa, the ADQ-backed Abu Dhabi National Oil Co., and Japan’s Jera Co. announced the financial closing today of Najim Cogeneration Co., which will produce electricity and steam for a petrochemical complex located in Saudi Arabia’s eastern city of Jubail.

Mubadala: Emirates Global Aluminium, the aluminum producer jointly owned by Mubadala and Investment Corp. of Dubai, will acquire an 80% stake in Spector Alloys Corporation, an American aluminum recycling firm based in Minnesota, for an undisclosed sum. Spector Alloys produces around 110,000 metric tons of aluminum ingots per year.

Public Investment Fund: Trevor Williams, a former coach for the University of Colorado’s Buffaloes football team, told Sports Illustrated he went to Saudi Arabia earlier this year to lobby the PIF unsuccessfully for Name, Image, and Likeness (NIL) funding on behalf of the school. He said he later resigned for other reasons.

↪↩ Closing Circuit

🛢️Oil Slide: Saudi Arabia’s revenue from oil exports dropped to $17.7 billion in June, the lowest level in three years and the result of both falling oil prices and the kingdom’s decision to curb production, Bloomberg reports.

🛩️ Blue Skies: Doric Nimrod Air, an aircraft leasing investment company based on the island of Guernsey, signed an agreement to sell five Airbus planes to Emirates airline for $200 million.

🚚 Cargo Zone: Denmark’s Maersk shipping company opened a new $250 million logistics zone at the Jeddah Islamic Port on Wednesday built with the Saudi Ports Authority.

🏗️ Builder’s Vision: Tecom Group, which builds specialized business districts in Dubai, said it has completed a $463 million strategic acquisition plan and made over $545 million investments so far in 2024.

🗣 Circuit Chatter

📋 Family Affair: Indian Billionaire Gautam Adani plans to appoint auditors from a top global firm and hire a CEO for his family offices which have been criticized for lacking transparency, Bloomberg reports.

👮 Sent Home: The UAE government confirmed on Thursday that it had extradited Danilo Coppola, an Italian national convicted of financial crimes in his home country related to the bankruptcy of several companies.

⚓ Abandon Ship! Crew members from the Greek-flagged oil tanker Sounion, which was attacked in the Red Sea on Wednesday, abandoned the vessel and were rescued by the EU’s “Aspides” naval mission, Reuters reports.

💺 Discount Fares: El Al Israel Airlines agreed under government pressure to offer discounted flights to Athens, Larnaca, Dubai and Vienna, enabling Israelis to fly from those airports while most international carriers have canceled flights out of Tel Aviv because of the Gaza war.

🌍 Power Circuit

Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Chairman of the UAE’s Presidential Court, was briefed on Emiratis working in the private sector at a meeting of members of the Emirati Talent Competitiveness Council – also known as Nafis – at Qasr Al Watan in Abu Dhabi on Wednesday. The number of UAE nationals working in the private sector reached 113,000 by the end of July. Companies with between 20-49 employees are now expected to hire at least one Emirati staff member by the end of this year, under an expansion of the scheme.

Haitham Al Ghais, Secretary General of OPEC, published an article on the bloc’s website calling attention to the role petroleum plays in non-fossil fuel generation, noting that “oil products used in wind turbines and solar panels… contain petroleum-derived material.” 

Sheikha Fatima bint Mubarak’s Women, Peace and Security initiative in the UAE has announced the fourth cohort of participants to take part in specialized training in artificial intelligence, in partnership with Khalifa University of Science and Technology. Sheikha Fatima, the wife of the late President Sheikh Zayed bin Sultan who is known as the Mother of the Nation, is Chairwoman of the General Women’s Union.

➿ On the Circuit

Mahoud Essmat, the Egyptian Minister of Electricity and Renewable Energy, said he expects a $1.8 billion Saudi-Egypt electricity interconnector project to be in operation by 2026.

Abdullah Al-Yahya, the Kuwaiti Minister of Foreign Affairs, held a meeting in Kuwait City on Wednesday with senior executives of China’s State Power Investment Corp. and Ma Chao, Representative of China in the Middle East and North Africa.

🎶 Culture Circuit

🛎️ Top Welcome: The Royal Mansour Marrakech, a five-star resort owned by Morocco’s King Mohammed VI, has been named the world’s most welcoming hotel in a ranking of the world’s 50 best hotels. The property has 53 three-story private riads, or villas, each with a private pool and serviced by a personal butler.

📷 Photo of the Day

🗓️ 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. 10-12, Riyadh, Saudi Arabia: Global Artificial Intelligence Summit. A leading platform for advancing the global discussion on AI. King Abdulaziz International Conference Center in Riyadh.

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.