The Daily Circuit
đź‘‹ Hello from the Middle East!
Today in the Daily Circuit, we’re looking at Qatar’s latest $2.7 billion construction binge, BlackRock’s property refinancing partnership with Saudi Arabia’s PIF, ADIA’s part in buying out a unit of Germany’s Deutsche Bahn and a brewing dispute over cloud seeding between Morocco and Spain. But first, the UAE’s growing number of free trade pacts is paying off.
The UAE’s pursuit of closer trade ties with fast-growing economies in the Middle East, Asia and Africa saw its non-oil foreign trade hit a record $381 billion in the first half of 2024, up 25% compared to the same period last year. Non-oil exports made up 18.4% of total trade, compared to 16.4% for H1, 2023.
The double-digit expansion in foreign trade defied a global trend in slowing trade growth, spurred on by the signing of so-called comprehensive economic partnership agreements with several countries, Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade, said in a statement on Sunday.
The new trade figures show “the UAE economy’s resilience, which is the result of our steadfast commitment to building strong, productive public-private partnerships as well as fostering collaborative growth with emerging global economies,” Al Zeyoudi said.
The Emirates, which is planning to sign similar trade deals with 26 countries, has so-far inked agreements with India, Turkey, Israel, Indonesia, Cambodia and Georgia, and is negotiating with Serbia, Vietnam, the Philippines, New Zealand and Ecuador. The deals are considered critical to achieving the UAE’s ambitious target of close to $1.1 trillion in non-oil foreign trade by 2031.
đź“° Developing Stories
BUILDING BINGE
Qatar’s $2.7 billion investment in plans to build train lines, roads and bridges has turned the country into the second-most expensive construction market in the Middle East behind Saudi Arabia. According to a survey by Turner & Townsend, the torrid pace with which Qatar built stadiums and infrastructure to support its hosting of the 2022 World Cup soccer championship drove up prices as companies had to compete to hire skilled employees and purchase construction materials. Among the biggest ventures now underway are the Doha Metro, the Bahrain-Qatar causeway, and the multi-billion dollar Sharq Bridge, which will connect Katara Cultural Village with Hamad International Airport. Much of the current thrust is aimed at completing those projects in time for 2030 when Qatar hosts the Asian Games, Turner & Townsend said.
GRAY SKIES
Morocco’s 40-year-old efforts to alleviate drought by seeding clouds and increasing rainfall is setting off alarms in Spain. Spanish weather agency El Tiempo reports that the seeding program, on which Morocco spent close to $11 million last year, could have unpredictable consequences for the entire region, especially in nearby areas like southern Spain and the Spanish enclaves of Ceuta and Melilla. Abundant rainfall in places unaccustomed to such conditions could lead to flooding, soil erosion, and deterioration, the report says, warning that geoengineering could increase the frequency of storms, lightning, hailstorms, and tornadoes. El Tiempo also raises the possibility of geopolitical conflicts arising between Spain and Morocco because of unilateral decisions to alter environmental conditions.
đź’˛ Sovereign Circuit
Public Investment Fund: Saudi Real Estate Refinance Co., a PIF subsidiary, signed a preliminary agreement with BlackRock, to develop projects together in the Saudi real estate finance market and increase the share of Saudi property businesses in the capital markets.
Abu Dhabi Investment Authority: ADIA, Luxembourg’s CVC Capital Partners and a unit of Singapore’s Temasek sovereign wealth fund submitted a joint bid of close to $15.6 billion for the Schenker logistics division of Germany’s Deutsche Bahn rail company, the Wall Street Journal reports. Meanwhile, ADIA is reported to be in talks with PAI Partners to support the French buyout group’s bid for Sanofi’s consumer health division, in a deal that could value the division at $16.7 billion.
Mubadala: The Abu Dhabi sovereign wealth fund and Singapore-based CBC group have acquired 100% ownership in a group of businesses owned by China’s UCB Pharma, including its neurology and allergy portfolio and a manufacturing site in the southern city of Zhuhai. Terms of the acquisition were not disclosed.
↪↩ Closing Circuit
🤝 Market Venture: State-owned Riyadh Development Co. signed a $405 million agreement with Riyadh Holding Co. to establish a joint venture that will develop and operate the markets in the Saudi capital’s historic Qasr Al-Hukm area.
🏡 Property Platform: Kuwaiti real estate company Sakan said it acquired Qatar’s Hapondo property marketing platform for an undisclosed price, expanding access to listings and research across the GCC region.
🏢 Condo Conversion: Elad Group, a real estate investment firm owned by Israeli developer Yitzhak Tshuva, bought a Manhattan office building on Park Avenue for $72 million for conversion into residential condo units.
🚀 New Frontier: Abu Dhabi deeptech investor Marlan Space, backed by IHC, is partnering with San Francisco’s Loft Orbital to produce commercial low Earth orbit satellites via a $100 million joint venture called Orbitworks. The first satellites will be launched in early 2026.
🌹 Smell of Success: Perfume maker Al Majed for Oud Co.’s $188 million IPO on the Saudi stock exchange sold out within hours of books opening yesterday, Bloomberg reports.
đź—Ł Circuit Chatter
📞 Calling Shareholders: Saudi Telecom Co.’s shares rose the most in almost a decade after the state-owned company announced plans to increase quarterly dividends and said it may consider handing over more money to investors through special payments, Bloomberg reports.
🏙️ New HQ: Nearly 185 foreign companies moved their regional headquarters to Saudi Arabia during the first half of 2024 as the government made the step a requirement for obtaining state contracts.
🔋 Green Energy: A partnership between Saudi Arabia’s King Abdullah University of Science and Technology and NEOM will boost the kingdom’s hydrogen economy, Arab News reports.
🧊 Chilling Down: High tech vests filled with freezable materials and made by Netherlands-based EZ Cooldown won plaudits for helping workers endure the heat at Dubai’s 2020 World’s Fair and are now being used by theme parks, military posts and at least one Formula 1 team, the Wall Street Journal reports.
🌍 Power Circuit
UAE President Sheikh Mohamed bin Zayed recorded a special message for students to mark the start of the new academic year, which was broadcast across schools today.
Emir of Qatar Sheikh Tamim bin Hamad al-Thani hosted a meeting with Saudi Defense Minister Prince Khaled bin Salman and a delegation from the kingdom at his office in the Amiri Diwan government complex in Doha.
Saudi Minister of Foreign Affairs Prince Faisal bin Farhan received Elmedin Konakovic, Minister of Foreign Affairs of Bosnia and Herzegovina, on Sunday.
âžż On the Circuit
Noora Al-Fassam was named Kuwait’s Finance Minister and Minister of State for Economic Affairs and Investment, replacing Anwar Al-Mudhaf who has served in the post only since January.
Tengku Zarful Abdul Aziz, Malaysia’s Minister of Investment, Trade and Industry, said his country is holding talks on a free trade agreement with the Gulf Cooperation Council while negotiations on a bilateral trade pact with the UAE is being finalized.
Pavel Durov, the Dubai-based founder of Telegram, was detained by French police after landing in Paris aboard his private jet in connection with allegations that he allowed criminal activities to flourish on the messaging platform.
🎶 Culture Circuit
🏗️ Cultural Construction: The breakneck speed of development at Abu Dhabi’s Cultural District on Saadiyat Island, where the giant cones of the future Guggenheim museum are now visible, is a sign of the boom times changing the face of the UAE capital, Bloomberg reports.
đź“· Photo of the Day
🗓️ Ahead on The Circuit
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.Â
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. Â
