The Weekly Circuit
👋 Hello from the Middle East!
This week, we’re looking at investor Leon Black’s new family office in Abu Dhabi, Kuwait’s persistent summer blackouts, ADQ’s launching of a mobility firm and the extended string of IPOs for Oman’s sovereign wealth fund. But first, ADNOC focuses on a buyout target in Germany.
ADNOC, the UAE’s national oil and gas company, has been hunting for acquisitions and appears to have set its sights on Germany’s Covestro manufacturing company in what may turn out to be Europe’s biggest takeover deal of the year.
The two firms have been in talks for a year over a possible $15.9 billion acquisition and ADNOC Group CEO Dr. Sultan Al Jaber was in Germany last week to sew things up, the Financial Times reports today.
Covestro, which was spun out of Germany’s Bayer pharma in 2015, makes polyurethane foam, which is used in a vast range of products ranging from household appliances to automobiles and spaceships.
Like other European manufacturers, Covestro has been hit by high energy prices and slowing customer demand, making the company more willing to consider the buyout offer, the FT said, noting that ADNOC has a 50-member team of dealmakers looking for acquisitions, especially in gas and petrochemicals.
Welcome to The Weekly Circuit. Read on for the stories, deals and players at the top of the news across the MENA business landscape. Please send comments and story tips to [email protected]
MIDEAST HQ
Apollo’s Leon Black opens branch of his family office in Abu Dhabi
First it was Ray Dalio. Now Leon Black, the billionaire co-founder of Apollo Global Management, has opened a branch of his family office in Abu Dhabi, The Circuit’s Jonathan Ferziger reports.
Black’s new Middle East base, called Scimitar, is investing with a locally based team led by Asad Hussaini, an experienced Gulf real estate investor, according to Bloomberg.
“I’ve been coming here for more than 30 years and the growth and prosperity that has occurred under Abu Dhabi’s visionary leadership is truly remarkable,” Black said in a statement. “My family office wants to be a part of that transformation.
HEATING UP
Kuwait’s surging summer power demand leads to serial blackouts
Kuwait is suffering from more than the intense summer heat this year, The Circuit’s Omnia Al Desoukie reports.
High temperatures have increased electricity demand and led to an unusual series of blackouts. Although the country is one of the wealthiest in the world, its power grid is under strain, leading to the summer power cuts.
Delays in expanding the grid, along with a shift from oil to imported natural gas for power generation, have contributed to the electricity shortages, according to The New York Times.
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💲 Sovereign Circuit
ADQ: The Abu Dhabi sovereign wealth fund said it has established Q Mobility, a company that aims to improve transportation with smart mobility solutions.
Public Investment Fund: The Saudi sovereign wealth fund’s annual expenditures are likely to increase to $70 billion by 2025, a year ahead of schedule, according to the International Monetary Fund. Previously PIF Governor Yasir Al Rumayyan said the fund would boost its annual capital spending from about $50 billion to $70 billion starting in 2026.
Oman Investment Authority: The Omani sovereign wealth fund generated over $2.6 billion from divestments in 2022-2023 and plans to continue its strategy through 2028 with IPOs linked to the energy, services and logistics sectors. OIA said it aims to launch more IPOs while encouraging private placements in agriculture, aquaculture, and mining.
Mubadala: The UAE-based fund has acquired a 10% stake in Egypt’s Zohr gas field, a 20% stake in the Noor gas field, and a 27% stake in the so-called Block 4 drilling site in the Red Sea, according to Karim Badawi, Egyptian Minister of Petroleum and Mineral Resources.
Norway Wealth Fund: Norway’s $1.7 trillion sovereign wealth fund, the world’s largest, has urged countries to align closely with global ESG reporting standards, Bloomberg reports.
↪↩ Closing Circuit
🏦 Funds Up: Blackstone-backed ASK Private Wealth has launched a new fund with a target of raising $100 million by encouraging non-resident Indians to invest in Indian capital markets. It also plans to open an office in Dubai.
🏗️ Floating Crane: DP World’s Drydocks World to acquire a 5,000 ton 120-meter tall floating crane from Shanghai Zhenhua Heavy Industries. The crane will be operational from 2026, and can be used in the construction of offshore platforms, bridges and marine developments.
🚢 Shipping Order: Qatar Energy ordered six new vessels for exporting liquified natural gas from China State Shipbuilding, Reuters reports. The ships known as QC-Max, are the largest LNG vessels ever built, with a capacity of 271,000 cubic metres each.
💲 Exit Time: ADX-listed Alpha Dhabi Holding will exit its 11% equity stake in OCI’s Global Methanol Business, following its acquisition by Canada’s Methanex. Egyptian billionaire Nassef Sawiris, is selling his stake in OCI to Methanex in a $2.1 billion deal.
🌐 Data Sweep: Odigos, an Israeli data monitoring startup, raised $13 million in a funding round led by Venture Guides, with participation from investors including Salesforce Ventures and Y Combinator.
🗣 Circuit Chatter
🏡 Luxury Homes: Dubai’s Al Sankari family, which operates one of the emirate’s largest fashion firms, is betting on the booming market in luxury real estate with homes starting at nearly $11 million, Bloomberg reports
🏦 Raising Limits: Banque Misr has introduced new measures, enabling customers to exchange up to $5,000 in foreign currency for international travel. Additionally, the bank has raised the spending limits for foreign currency transactions on credit cards, with the top-tier cards.
💱 Exit Strategy: Gulf Capital, one of the largest private equity firms in the GCC investing in Asia, said on Monday it will sell Kuiper Australia, which provides manpower outsourcing services in the offshore energy industry.
💸 Venturing Forward: Silicon Valley’s Andreessen Horowitz has increased its venture capital activity in Israel, investing in four of the country’s startups in the first half of 2024, according to IVC-Gornitzky-KPMG.
💵 Debt Leader: Saudi Arabia is emerging as a global leader in the fixed-income and debt markets as its debt-to-gross domestic product ratio stands at around 30%, Arab News reports.
🌍 Power Circuit
UAE President Sheikh Mohamed bin Zayed received Dr. Badr Abdel Ati, Egypt’s Minister of Foreign Affairs and Migration, on Sunday at the Qasr Al Shati palace in Abu Dhabi.
Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, led a high-level delegation to India and met with Indian Prime Minister Narendra Modi. The group included Dr. Sultan Al Jaber, Minister of Industry and Advanced Technologies and CEO of ADNOC; Mohamed Alsuwaidi, Minister of Investment; Khaldoon Al Mubarak, Chairman of the Executive Affairs Authority and CEO of Mubadala Investment Co.; and Reem Al Hashimy, Minister of State for International Cooperation.
Sheikh Saud Al Qasimi, the UAE Supreme Council Member and Ruler of Ras Al Khaimah, met with Lyu Chengxi, Mayor of China’s Dongguan municipal government during a visit to the Chinese city to discuss trade and cultural exchanges.
Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, attended the India-UAE Business Forum in Mumbai, which focused on the free trade agreement signed between the two countries.
➿ On the Circuit
Sir Paul Marshall, Chairman of London-based hedge fund group Marshall Wace and major investor in GB News, bought bought The Spectator from Abu Dhabi-based RedBird IMI for $131 million.
Abdullah bin Touq Al Marri, UAE Minister of Economy, visited Egypt and held meetings with Rania Al Mashat, Egypt’s Minister of Planning, Economic Development, and International Cooperation; and Lt. Gen. Kamel El Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport.
Todd Boehly, the U.S. financier who joined forces with Clearlake Capital to acquire London’s Chelsea FC football club for a record GBP 2.5 billion ($3.3 billion), is said to be pushing to buy out his partner after their relations have deteriorated, the Financial Times reports.
Dr. Amna bint Abdullah Al Shamsi, UAE Minister of Climate Change and the Environment, emphasized the importance of alignment among Gulf countries in a statement delivered in Qatar at the GCC’s 36th Ministerial Meeting of the Agricultural and Food Security Committee.
Martin Sorrel’s S4 Capital firm is opening an office for its operating brand Monks in Saudi Arabia and relocating the Middle East headquarters of its advertising and consulting firm to Riyadh from Dubai, Bloomberg reports.
🎶 Culture Circuit
🌙 British Touch: AlUla, the land of vast desert vistas paired with modern architecture and luxury resorts, is partnering with the U.K. National Archives to present Saudi Arabia’s cultural heritage through a British lens. The collaboration deal signed by the Royal Commission for AlUla will focus on four areas: training and scientific exchange, archival research, public programming, and digitization.
📷 Photo of the Day
🗓️ Ahead on The Circuit
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.
