👋 Hello from the Middle East!

Today in the Daily Circuit, we’re looking at ADQ’s talks with potential partners to buy out Spain’s Grifols, robust second-quarter profits across the GCC, Black+Decker’s new Egyptian factory and Italian designers at the upcoming Dubai Fashion Week. But first, order lunch and wait for Talabat’s IPO.

The fluorescent orange uniforms of Talabat delivery drivers have become so ubiquitous in the UAE that The Circuit’s Abu Dhabi correspondent counted at least a dozen whizzing past on the road beneath her window as this sentence was written. 

Now the business, which has transformed the food industry across the Middle East since its launch in Kuwait 20 years ago, will be listed on the Dubai bourse in what will be one of the most hotly-anticipated initial public offerings of the year.

Berlin-based parent company Delivery Hero is preparing to capitalize on the high investor interest in IPOs in the Gulf this year to raise capital by offering shares in its UAE subsidiary on the Dubai Financial Market in the fourth quarter of this year.

Delivery Hero, which is publicly listed in Frankfurt, will retain a majority interest in the local listing after the IPO, the company said in a filing on Thursday. While the company has not yet given details of target pricing or how much it plans to raise, RBC values Talabat at $5.5 billion.

Talabat is the latest in a growing list of regional companies seeking to tap equity markets through public listings this year, with $890 million raised through IPOs in the UAE in Q2 alone. NMDC Energy announced on Wednesday that it plans to raise $875 million in an initial share sale on the Abu Dhabi Securities Exchange.

FASHION FORWARD 

Dubai Fashion Week kicks off on Sunday, offering a showcase for Emirati designers with runway shows, parties and public chats. This year’s edition, which will take place in the Dubai Design District, highlights Italian fashion houses in line with the city’s aspirations to join the ranks of Paris, Milan and New York on the couture circuit. Among designers from the Middle East and Asia, the event will feature Dima Ayad, Heba Jasmi and Rizman Ruzaini. Fausto Puglisi, the head of Italian fashion house Roberto Cavalli and a designer for Madonna, Beyonce and Taylor Swift, will be the guest of honor at the closing reception on Sept. 7.

ROBUST GROWTH

Banks and telecoms led the GCC region in chalking up profits during the second quarter. Across the region, company earnings showed a 5.7% increase in net income compared to the same period of 2023, according to data compiled by Kuwait-based Kamco Investment Co. Among individual markets, the greatest profit growth was recorded in Bahrain, followed by Dubai, Kamco said. Other GCC industries that grew during the quarter were real estate, materials and capital goods, according to the report.

💲 Sovereign Circuit

ADQ: The Abu Dhabi sovereign wealth fund and Singapore’s state-owned GIC have reportedly been in discussions with Canada’s Brookfield Asset Management to acquire Spanish blood-plasma company Grifols SA, Bloomberg reports.

Mubadala: The Abu Dhabi sovereign wealth fund’s Mubadala Health Dubai unit has opened its Headache Clinic, which aims to provide relief from migraines and other ailments.

Public investment Fund: PGA Commissioner Jay Monahan said a merger deal with Saudi Arabia’s PIF-backed LIV Golf tournament remains a priority, but there is no deadline. “I don’t think we want to restrict ourselves in that way,” Monahan told reporters on Wednesday at the season-ending Tour Championship in Atlanta. “We want to achieve the best and right outcome at the right time.”

↪↩ Closing Circuit

🛏️ Hotel Finance: U.S. lender Avana is forming a $250 million joint venture with Los Angeles-based Oaktree Capital Management that will enable Avana’s Ezdahar unit in Saudi Arabia to provide private debt financing to build hotels in the kingdom.

💸 On Us: Saudi oil company Petro Rabigh had $1 billion in debt waived by its two largest shareholders, Aramco and Japan’s Sumitomo Chemical Co., as part of its refinery upgrade plans.

🌀 Green Industry: Egypt will invest close to $247 million to establish its first green industrial complex outside the Mediterranean coastal city of New Alamein, which will be operated by Cairo-based Integrated Environmental Technologies and Oil Services.

🏡 Property Dealing: Saudi Arabia saw a 38% increase in real estate transactions during the first half of the year, compared to the same period in 2023, reaching deals with a total value of close to $40 billion, according to London-based property consulting firm Knight Frank.

🗣 Circuit Chatter

🔧 Power Tools: Black+Decker is making plans to build an electrical equipment factory in Egypt, its first manufacturing facility in the Middle East and Africa region.

🛢️ Hedging Oil: Egypt signed contracts to hedge against price fluctuations for a large number of petroleum products, Bloomberg reports, citing remarks by Prime Minister Mostafa Madbouly.

🏝️ Fun in the Sun: Luxury resorts in the Maldives are experiencing an unprecedented boom in Gulf tourism, with some properties seeing a 60% surge in bookings from the region compared to last year, Arabian Business reports.

🌍 Power Circuit

Prince Faisal bin Bandar, Chairman of the Saudi Esports Federation, suggested that the kingdom could soon make a bid to host the Olympics, Bloomberg reports. “We as a country are setting up for doing more and more, and I think the Olympics is a logical step,” he said while attending the closing ceremony for the Esports World Cup in Riyadh this week, adding, “But, when we are ready.”

Sheikh Sultan bin Ahmed bin Sultan Al Qasimi, Deputy Ruler of Sharjah and President of the University of Sharjah, launched specialized orthodontic clinics for master’s students at the university’s College of Dentistry.

Adel Aljubeir, Saudi Minister of State for Foreign Affairs, Cabinet Member and Climate Envoy, met with President of Palau Surangel Whipps Jr. on the sidelines of the 53rd Pacific Islands Forum Leaders Meeting, which is being held in Tonga.

➿ On the Circuit

Sadiq al-Kabir, head of the Libyan Central Bank, told the Financial Times in a phone call that he and senior staff members fled the country to “protect our lives” from possible attacks by armed militias.

Ahmed Belhoul Al Falasi, the UAE’s Minister of Sport, met with members of the national team to the Paralympic Games in Paris on Thursday, calling the athletes “a source of national pride” and predicting the competition “will mark a new chapter of excellence in the UAE’s sports journey.” 

Mohsen Paknead, Iran’s new Oil Minister, appointed Hamid Boord to be CEO of the National Iranian Oil Company and the Deputy Oil Minister.

Saudi Lt. Gen. Fahd bin Hamad Al-Salman was appointed by royal decree to be the kingdom’s Commander of Joint Forces. He becomes the No. 2 military leader after Chief of General Staff Lt.-Gen. Fayyad bin Hamed al-Ruwayli.

🎶 Culture Circuit

🎉 ‘Tis the Season: The fifth edition of the Riyadh Season kicks off on October 12th, promising an electrifying array of events across 14 entertainment zones, including fashion, sports, and tourism. This year’s key attractions includes the Riyadh Season Tennis Cup, WWE Crown Jewel and a thrilling boxing showdown featuring 14 fighters, including marquee matches like Ben Whittaker vs. Liam Cameron and Mohammed Al Akel vs. Jesus Gonzalez. Of the 4,200 contracts awarded for the event, 95% are local companies, highlighting the event’s strong Saudi identity, Saudi Arabia’s General Entertainment said. 

📷 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 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 a 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.