The Daily Circuit
👋 Hello from the Middle East!
Today in the Daily Circuit, we’re looking at a potential $1 billion investment in Pakistan by the Saudi Public Investment Fund, a pitch to Indian investors on behalf of the Oman Investment Authority, the wave of Egyptian and Turkish property buyers hunting for apartments in Dubai and Shaquille O’Neal’s ad campaign for Abu Dhabi cuisine. But first, investors are lining up for the UAE’s latest public offering.
NMDC Energy’s IPO is shaping up to be the UAE’s biggest this year.
The Abu Dhabi subsidiary of NMDC Group, which provides construction and dredging services to the oil and gas industry, aims to raise $875 million when the subscription period for its initial share sale opens on Friday.
That tops the $515 million that Alef Education Holding raised on the ADX in June and will give NMDC Energy a market value of $3.8 billion, Bloomberg reports. The IPO will be the largest since Pure Health Holding raised $986 million in December.
NMDC Energy won a $255 million contract with ADNOC Gas last month for dredging work on its Estidama natural gas pipeline project. First Abu Dhabi Bank is the lead manager for the IPO.
📰 Developing Stories
FLIGHT TO SAFETY
Currency instability in Egypt and Turkey is bringing a new wave of wealthy property buyers to Dubai. Muhammad Binghatti, whose real estate company is building the world’s largest residential tower in the emirate, told Bloomberg that he’s seen a 20% increase in buyers from the two nations since last year. “Many of our investors want to put some of their wealth outside their countries to protect themselves against currency fluctuations,” the Binghatti Properties chairman said in a television interview. “They’ve stood by and watched the capital gains in Dubai over the past few years, which they missed out on.” The Egyptian pound has plunged 68% since early 2022 as the government carried out four devaluations to combat an economic crisis.The Turkish lira has lost 95% of its value since 2012.
insurance jump
While the shipping industry has largely moved to alternate routes, moving cargo through the Red Sea is getting even more expensive. Insurance costs have nearly doubled since Yemen’s Houthis attacked a tanker last week that appears to be leaking oil, deepening environmental fears about the trade route, Reuters reports. The latest upsurge in cost can add up to hundreds of thousands of dollars for a voyage through region, although rates for Chinese-owned vessels have been up to 50% lower since February due to less risk of being targets, the news agency said. Some underwriters have stopped providing cover through the region because of the potential risk of the tanker sinking, according to the report.
💲 Sovereign Circuit
Public Investment Fund: Manara Minerals, which is backed by the Saudi sovereign wealth fund, is preparing to invest nearly $1 billion for a 15% stake in Pakistan’s Reko Diq copper-gold mining project, the Pakistani daily Express Tribune reports. Meanwhile, Bloomberg reports that the PIF is one of the co-investors that together lost an estimated $4 billion on Texas-based Vista Equity Partners’ acquisition of educational software company Pluralsight.
Mubadala and ADQ: The two Abu Dhabi sovereign wealth funds may hold talks and begin to merge ahead of 2030 because “the synergy makes sense” and will lead to economies of scale, Michael Maduell, President of the Sovereign Wealth Fund Institute, predicts in a column on the organization’s website.
Oman Investment Authority: Indian Ambassador to Oman Amit Narang encouraged participants at the India-MENA Business Dialogue in New Delhi this week to consider investing in the OIA’s joint $300 million fund with the State Bank of India, the Muscat Daily reports.
↪↩ Closing Circuit
✈️ Plane Purchase: Dubai Aerospace Enterprise, one of the world’s largest aircraft leasing companies, has signed agreements to acquire 23 aircraft with a total value of some $1.1 billion.
💼 Business Focus: Yuze, a UAE-based fintech startup focused on small businesses, secured a $30 million investment from Nairobi-based Osten Investments.
🚀 Missile Defense: Slovakia’s government approved plans on Wednesday to buy six mobile air defense systems from Israel for close to $615 million as it seeks to guard its skies amid neighboring Ukraine’s war with Russia, Reuters reports.
💵 Asset Surge: The number of licensed UAE asset management firms has grown more than 80% this year with the total value of their portfolios reaching $9.5 billion, the Securities and Commodities Authority said.
☁️ Cloud Acquisition: Abu Dhabi’s e& Enterprise announced completion of its $60 million acquisition of GlassHouse, a Turkish provider of cloud, business continuity and software infrastructure services.
🗣 Circuit Chatter
🛢️ Restricted Refinery: Qatar is in talks with the German government over possibly buying Russian energy group Rosneft’s stake in Germany’s PCK Schwedt refinery, which Berlin placed under trusteeship following Russia’s invasion of Ukraine, Business Insider reported on Wednesday.
🤖 Funding AI: OpenAI, which is working with Gulf companies to develop Arabic artificial intelligence tools, is in talks with VC firms to raise billions of dollars at a valuation of more than $100 billion in a funding round led by Josh Kushner’s Thrive Capital, the Financial Times reports.
🖥️ Access Blocked: The attempt by one of Libya’s two rival governments to wrest control over the North African country’s central bank is failing because the governor, who is in hiding, won’t give up the institution’s computer passwords, Bloomberg reports.
🏭 Factory Plot: Khalifa Economic Zones Abu Dhabi, known as KEZAD, and UAE-based Apex Engineering Industries said they signed a 50-year lease agreement for land where they will build a $25 million manufacturing facility that will produce industrial parts, components and machinery for the oil, defense and locomotive industries.
🇲🇦 Green Ammonia: Worley, the Australia-based engineering services company, will start Front-End Engineering Design (FEED) work in Morocco on a green ammonia project for the OCP Group during the third quarter of 2024.
🌍 Power Circuit
Saudi Crown Prince Mohammed bin Salman met in Riyadh on Wednesday with European Council President Charles Michel and discussed ways of enhancing cooperation between the Kingdom and EU countries.
UAE President Sheikh Mohamed bin Zayed congratulated Bangladesh’s Muhammad Yunus in a phone call on taking office as head of the country’s interim government and discussed ties between the two countries.
➿ On the Circuit
Shaquille O’Neal, who has been a frequent visitor to promote the NBA Abu Dhabi Games, is starring in an advertising campaign that promotes the UAE capital’s restaurants and street food culture.
Saeed Al Tayer, Chairman of Dubai government-owned Dragon Oil, visited Turkmenistan, where he met with President Serdar Berdimuhamedo to discuss the joint investment of $10 billion in the Cheleken concession area.
🎶 Culture Circuit
🎞️ Red Carpet: The opening reception for the 81st Venice Film Festival on Wednesday night brought out a bevy of entertainment industry leaders from the Middle East, including Red Sea Film Foundation Chairwoman Jomana Alrashid; CEO Mohammed Asseri; Saudi producer Mohammed Al-Turki, the foundation’s former CEO; and Giuseppe Tornatore, the Italian director who was President of the Jury for the inaugural Red Sea Film Festival in 2021
🗓️ 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 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. 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.
