Today in the Daily Circuit, we’re looking at the Saudi Public Investment Fund unit divesting from a turbine manufacturer, DP World’s acquisition of a Hong Kong supply chain business, Adnoc’s new bond issue and the Netflix fund training Arab women in film. But first, Jordan’s royal family welcomes international defense contractors and military brass to Aqaba.

Jordan takes center stage this week in the largely secret realm of the world’s military special forces as it hosts a defense industry conference in the Red Sea port city of Aqaba.

The Special Operations Forces Exhibition and Conference, or SOFEX, kicked off today with an address by King Abdullah II and more than 300 defense and security companies from 73 companies displaying equipment and services.

The three-day conference will feature a mock sea operation exercise led by Crown Prince Hussein bin Abdullah, who serves as Deputy Commander of the 101st Special Unit of the King Abdullah II Special Forces Group.

Meanwhile, the first Egyptian International Airshow takes off today at the Al Alamein airport on the country’s northern Mediterranean coast. Among the participants from 100 countries are 300 companies, including aerospace manufacturers from the U.S., France, the U.K., Germany, Russia, China and Turkey.

OIL CUTOFF 

As the political crisis in Libya deepens, the country’s National Oil Co. halted production at its petroleum fields and cut off shipments from its ports, rattling regional oil markets. The NOC declared a “force majeure” to inform customers that orders could not be fulfilled because of unforeseen circumstances. The cutoff derives from the continuing conflict between Libya’s two rival political factions over control of the central bank and oil revenue. Oil prices rose on Monday, recovering some losses from late last week, amid the halt in Libyan exports and concerns about the coming decision on OPEC+ production levels.

BOND DEBUT

Adnoc is set to issue bonds more than two years after creating an entity to pursue such financing. The UAE’s national oil and gas company began a two day roadshow on Monday and is looking to raise five-, 10- and 30-year debt, Bloomberg reports. Meanwhile, a joint venture between Adnoc Drilling and International Holding Corp.’s Alpha Dhabi acquired an additional 42 % stake for approximately $270 million, oil and gas engineering company Gordon Technologies. The purchase gives the JV, Enersol, a majority interest of 67% in Gordon.

💲 Sovereign Circuit

Public Investment Fund: The PIF-backed Saudi Arabian Industrial Investment Co. divested its ownership stake in General Electric Saudi Advanced Turbines, selling a 55% interest in the company to U.S.-based GE Vernova. The fund is also looking to tap for the fourth time into the bond market, Bloomberg reports.

Mubadala: Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi, the UAE’s National Security Advisor, Chairman of International Holding Co. and Chairman of MGX, presided over the new investment firm’s second Board of Directors meeting on Monday. MGX was formed by Mubadala and G42 in March with $100 billion in assets and an investment focus on artificial intelligence. Among the participants in the meeting were Vice Chairman Khaldoon Al Mubarak, Managing Director and Group CEO of Mubadala, and board member Peng Xiao, CEO of G42.

↪↩ Closing Circuit

🚢  Chain Reaction: DP World completed the acquisition of Cargo Services Far East, a Hong Kong-based global supply chain provider in a deal that Bloomberg said was worth as much as $800 million.

🌐 Help Wanted: Cercli, a Dubai-based software startup that helps businesses hire, manage and pay their global workforce, raised $4 million in seed funding from San Francisco-based Afore Capital, marking the fund’s first deal in the region.

🤝Fintech Sandbox: Saudi Central Bank known as SAMA added three new fintech startups to its regulatory “sandbox” program. The decision enables XSquare, NeotTek, and MoneyMoon to launch peer-to-peer lending platforms.

🏡 Forward Building: Egypt’s Imkan Misr entered into a $41 million agreement with Forward Construction to develop Alburouj projects, a community that includes around 350 residential units of twin houses, townhouses, and standalone villas.

🗣 Circuit Chatter

🇪🇬 Digital Banking: Egypt’s cabinet gave the go-ahead for Banque Misr’s Egypt Digital Innovation Co. to launch the country’s first digital bank in the fourth quarter of 2024.

📦 Storage Shortage: Saudi Arabia is facing a shortage of warehouse space amid surging demand, driven by the government’s expensive megaprojects and conservative investment approach of landowners, global real estate consulting firm Knight Frank said in a report.

☀️Solar Boost: The energy giant, Qatar Energy, said it plans to build a new solar power mega project that will contribute to more than double Qatar’s solar energy production and lower carbon emission.

 ⚖️ Higher Dividends: UAE petrochemical maker Borouge said it will pay a $1.3 billion dividend for 2024, marking a yield of 6.3%.

🐪 Camel Fashion: A report by the Saudi Fashion Commission pegs the potential value of the country’s camel leather market at almost $100 million and said the kingdom earns $2 million from camel hair alone.

🌍 Power Circuit

UAE President Sheikh Mohammed bin Zayedreceived a call on Monday from U.K. Prime Minister Keir Starmer to discuss relations between the two countries and Middle East peace efforts. Sheikh Mohammed also held a meeting in Abu Dhabi with Kuwait’s Foreign Minister Abdullah Ali Al-Yahya to talk about deepening coordination among GCC members and the regional security challenges.

Sheikh Mohammed bin Rashid, Prime Minister of the UAE and Ruler of Dubai, unveiled a national action plan for 2025, describing priority goals as strengthening the family unit, enhancing Emirati identity, and advancing artificial intelligence across the country.

Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of the Executive Council, attended the opening of the Indian Institute of Technology new UAE campus, citing the program’s establishment as a significant step in Abu Dhabi’s efforts to make itself a global hub for research and development.

➿ On the Circuit

Shaikha Al Marri has been appointed as Head of Global Banking Coverage at HSBC’s UAE branch. She’s been at HSBC for 10 years after working for NASDAQ Dubai and the Emirate’s Financial Audit Authority.

Bandar Alkhorayef, Saudi Arabia’s Minister of Industry and Mineral Resources met with Singapore’s Minister for Manpower and Second Minister for Trade and Industry Tan See Leng during a visit to the Asian nation to discuss investment opportunities in the kingdom.

🎶 Culture Circuit

🎞️ Netflix Women: Netflix and the Arab Fund for Arts and Culture will select two dozen women from the Middle East to receive funding for short fiction films. In a new program called  “Women in Film – Bring Your Story to Life” program, participants will be given a budget of $25,000 each and receive guidance on scriptwriting, pre-shoot planning, editing and post-production.

📷 Photo of the Day

🗓️ Ahead on The Circuit

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. 3-5, Aqaba, Jordan. S0FEX 2024. Over 300 international defense and security companies from 38 countries attend the Special Operations Forces Exhibition and Conference (SOFEX). Aqaba International Exhibitions and Conferences Centre.

Sept. 3-5: Riyadh, Saudi Arabia. 24 Fintech. Ayman Al-Sayari, Governor of the Saudi Central Bank, delivers the keynote address in a conference focused on the kingdom’s financial industry. Riyadh Front Exhibition & Conference Center, Saudi Arabia.

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.