The Daily Circuit
đź‘‹ Hello from the Middle East!
Today in the Daily Circuit, we’re looking at PIF-backed Savvy Gaming Group’s plan to build an interactive entertainment hub in Riyadh, ADIA’s anchor investment in India’s Premier Energies, Australia’s allure for UAE real estate investors and a new startup fund established by GCC family offices. But first a look at Saudi efforts to stoke home ownership.
Five agreements signed with U.S. finance and property firms during last week’s visit to America by Saudi Arabia’s Housing Minister, including with BlackRock and Apollo Global Management, should give a further boost to the kingdom’s rapidly growing home construction industry.
The preliminary deals aim to strengthen the mortgage refinancing market, expand property funding and attract foreign investments. With Minister of Municipalities and Housing Majid Al-Hogail looking on, the Saudi Real Estate Refinance Co. – owned by the Public Investment Fund – signed agreements with BlackRock and King Street Capital that are meant to diversify funding sources through the fixed-income market.
The Saudi Mortgage Guarantee Services, known as Damanat, also signed two partnership agreements with BlackRock and Apollo to develop investment strategies and funds for real estate financing. Al-Hogail’s ministry, meanwhile, signed a preliminary agreement with K. Hovnanian Homes, a New Jersey-based developer hired to build more integrated residential communities in Saudi Arabia.
The kingdom has set a goal to increase home ownership to 70% by 2030 from its current level of about 60%. The new agreements aim to facilitate reaching the target by making it easier for Saudi citizens to find new homes and finance the purchases.
đź“° Developing Stories
INVESTING DOWN UNDER
Property investors and developers from the Gulf are eyeing Australia as a major international market, with a shortage of housing creating an environment of high returns and significant long-term growth potential. Australian real estate companies are holding roadshows and meetings with leading developers, family offices and funds from the UAE and Saudi Arabia this week, Arabian Business reports. And earlier this month, UAE developer Arada announced it was making its international debut in Australia, where it plans to build 2,500 homes in Sydney. Strong population growth in Australia has led to severe housing shortages in major cities, including Sydney, Melbourne, Perth and Brisbane. A potential property boom in the run-up to the 2032 Olympic Games in Brisbane is also driving interest from investors. However, Gulf-based companies are likely to face some unfamiliar challenges in Australia, where the construction industry is heavily controlled by unions. More than 10,000 workers went on strike across the country today in protest over a forced federal takeover of the main building union following allegations of corruption and criminal infiltration by biker gangs.
PALM GROWS
Dubai’s Palm Jebel Ali, a luxury real estate development on a man-made island about 20 kilometers south of the iconic Palm Jumeirah, is on course for a 2026 launch, with dredging works and construction of a new road underway. All 700 homes marketed last year as part of the master plan for the waterfront villa project have sold out, with prices starting from $5.4 million. The progress update comes as Nakheel, a unit of government-owned Dubai Holding Real Estate, awarded a contract worth more than $220 million to Jan De Nul Dredging for marine works on the massive development. The project will eventually be about three times the size of the Palm Jumeirah, with 16 “fronds” and other islands.
đź’˛ Sovereign Circuit
Public Investment Fund: Savvy Games Group, which is owned by the Saudi sovereign wealth fund, signed a preliminary agreement with international gaming commerce firm Xsolla to establish an interactive entertainment hub in Riyadh, which aims to generate 3,600 video game industry jobs in the kingdom by 2030.
Abu Dhabi Investment Authority: ADIA was named as an anchor investor with a 4.5% stake in India’s Premier Energies, a manufacturer of integrated solar cells and panels that raised more than $100 million ahead of its IPO, which opened today.
Mubadala: Enakshi Singh, a former Senior Vice President for Asset Management at the Abu Dhabi sovereign wealth fund, was named CFO of Ohmium International, a U.S.-based green hydrogen company that has manufacturing facilities in India.
ADQ: Abu Dhabi National Energy Co., known as Taqa, and waste management company SWS Holding – both owned by ADQ – are leveraging their combined expertise in advanced water management and resource recovery to support the UAE’s sustainability goals, the sovereign wealth fund said in a post on X.
↪↩ Closing Circuit
â›˝ LNG Pact: QatarEnergy agreed on Monday to supply the Kuwait Petroleum Corp. with 3 million metric tons a year of liquefied natural gas for 15 years, extending a deal signed in 2020.
đź’° Family Funding: An alliance of GCC-based family offices launched Waad Investment on Monday, establishing a Saudi firm that aims to raise $200 million to support growth-stage startups.
💸 Currency Costs: A consortium of the UAE-based Al Shafar Group and the Saudi Egyptian Developers has withdrawn from the $5 billion redevelopment of Egypt’s former National Democratic Party headquarters in Cairo because the depreciating Egyptian pound has raised construction costs, Asharq Business reports.
🍖 Raising Capital: Thimar Development Holding, a Saudi Arabian company dealing in agricultural products and meats, is looking to raise $52 million via a rights issue on the kingdom’s Tadawul stock exchange.
đź—Ł Circuit Chatter
🛢️ Oil Shutdown: Libya’s eastern government said on Monday that it will shut down crude output and exports amid a struggle for control of the central bank with its Tripoli-based rival, Reuters reports.
🚢 Sea Link: The Saudi Ports Authority, known as Mawani, is adding Emirates Shipping Line’s new ECRC service to Jeddah Islamic Port. The shipping channel will connect Jeddah with Ningbo, Xiamen, and Nansha in China; Klang in Malaysia; Aqaba in Jordan; and Sokhna in Egypt through regular bi-monthly trips.
🏡 Still a Bargain: An influx of millionaires has transformed Dubai into one of the world’s hottest markets for prime real estate and pushed prices up more than 17% since 2020, but the emirate still offers more value for money than most global cities, Bloomberg reports.
✏️ Mideast Expansion: Sapience Communications, a London-based corporate communications and digital marketing agency, opened a new Dubai office to accelerate its expansion in the Middle East and serve its growing list of clients in India.
🌍 Power Circuit
Sheikh Abdullah bin Zayed, UAE Deputy Prime Minister and Minister of Foreign Affairs, held a meeting with Gordan Grlić Radman, Croatia’s Minister of Foreign Affairs, during a visit to Zagreb that was focused on economic ties, investment, renewable energy, and tourism.
Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade, held talks with Prime Minister Pham Minh Chinh of Vietnam during a visit to Hanoi for a series of meetings to explore opportunities for stronger bilateral trade and investment.
âžż On the Circuit
Pavel Durov. The UAE’s Foreign Ministry has formally requested that French authorities provide access to Durov, an Emirati citizen and founder of the Telegram messaging service who is being detained by French authorities for alleged failure to cooperate in criminal investigations. Russian-born Durov also has French citizenship.
Zvi Lando resigned as CEO of Israel’s SolarEdge, a renewable energy company whose shares have plunged 90% on the Nasdaq over the past year. CFO Ronen Faier will fill the post temporarily until a new CEO is hired.
Cristiano Ronaldo says Al Nassr is likely to be the final club of the 39-year-old attacker’s football career, as he kicks off his third Saudi Pro League season.
🎶 Culture Circuit
🎸 After All: As Oasis fans nervously anticipate details of an international tour schedule following the bombshell news the British pop group is reforming 15 years after their acrimonious split, The National takes a look at all the solo visits the Manchester brothers Liam and Noel Gallagher have made to the UAE.
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. 3-5, Al Alamein, Egypt: Egypt International Airshow. The gateway to aerospace in Africa and the Middle East. Al Alamein International Airport.
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. 16-18, Abu Dhabi, UAE: World Utilities Congress. Ministers, policymakers and industry leaders discuss strategies for driving growth and innovation across the power & water utilities value chain. ADNEC.
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.
