The Daily Circuit
Today in the Daily Circuit, we’re looking at Riyadh Air’s test flight to Jeddah, OpenAI’s reported fundraising talks with Abu Dhabi’s MGX, Morocco’s automobile exports to Europe and Saudi Arabia’s fast-growing women’s fashion industry. But first, China sees Hong Kong as a channel to Gulf sovereign wealth.
Hong Kong is making efforts to persuade sovereign wealth funds in Dubai, Abu Dhabi and Riyadh to put their money into China and other Asian markets.
Nicholas Ho, the Hong Kong Commissioner responsible for implementing China’s Belt and Road infrastructure-building initiative, tells The National that the deal pipeline between China and the Middle East is already well developed in sectors such as energy, sustainability, construction and utilities.
“We want Hong Kong to be the Middle East hub in Asia, so we want to channel Middle East investments through Hong Kong into Asia, the rest of mainland China,” Ho said in an interview with the Abu Dhabi-based newspaper.
Hong Kong has long been a business gateway to China, a role that has become more formalized since 1997 when the former British colony returned to Chinese sovereignty as a Special Administrative Region with limited self-rule. Mubadala and the Saudi Public Investment Fund are among the sovereign funds that have opened offices in China.
📰 Developing Stories
DRESSING UP
Saudi Arabia’s women’s fashion industry is turning into one of the country’s fastest-growing retail segments. A study by the global consulting firm Redseer predicts that the Saudi fashion market will be worth over $53 billion by 2030, largely through online sales. The report reflects changes in the conservative kingdom that have allowed many women to cast aside their body-obscuring black robes and embrace international fashion. Rising female workforce participation, social media influence and the proliferation of online shopping platforms are some of the driving forces for the Saudi fashion industry’s unprecedented growth, Redseer said.
HOT WHEELS
Morocco surpassed China last year to become the European Union’s top automotive trading partner. The North African country chalked up 15.1 billion euros ($16.7 billion) in car exports in 2023, compared to China’s 13.6 billion euros, Moroccan World News reports. While China shipped more vehicles to the EU, Morocco’s cars were of higher value, hence more expensive. Central to Morocco’s rise are its industrial hubs in Tangier and Kenitra, where state-of-the-art manufacturing facilities have attracted significant international partnerships. Among the models produced there are the Dacia Sandero, which has been a top-selling car in Europe since 2017, and the compact EV Citroen Ami.
💲 Sovereign Circuit
Public Investment Fund: Saudi Arabia’s new PIF-owned Riyadh Air launched its first non-commercial test flight from the capital city to Jeddah as part of the airline’s certification process.
Mubadala: OpenAI is in talks with Mubadala-backed MGX and other potential investors to raise as much as $7 billion as part of the San Francisco-based artificial intelligence company’s global fundraising campaign, The Information reports.
Qatar Investment Authority: The Qatari sovereign wealth fund is considering raising its 8.8% stake in Spanish power company Iberdrola, Expansion reports.
↪↩ Closing Circuit
💼 Insurance Expansion: PGIM, the money management unit of U.S. insurance company Prudential Financial, said it will open an office in the Abu Dhabi Global Market to expand its business in the Middle East.
🚁 Flying Taxis: Dubai’s Danube Properties plans to build two 100-story towers in the city’s Business Bay area equipped with helipads to accommodate anticipated traffic from flying taxis.
🌍 Hybrid Rules: Scatec, a Norway-based renewable energy developer, said on Thursday it has signed a 25-year power purchase agreement with the Egyptian Electricity Transmission Co. for Egypt’s first hybrid solar power and battery storage project.
📈 Giving Back: Agthia Group, a UAE food and beverage conglomerate, raised its dividend 25% year on year for the first half of 2024, paying investors a total of more than $23 million.
🩺 Startup Doc: Edge Medical Ventures, an Israeli VC firm, launched a $70 million fund to invest in medtech starttups, planning on putting $1 million to $3 million each in a number of companies.
Circuit Chatter
☪️ Faithfully Funded: Islamic financing in the GCC region will grow faster than conventional banking, according to a report by Moody’s Investors Service. The study notes rising demand for Shariah-compliant financial products and the inherent stability of Islamic banks’ fixed-rate retail financing models.
🌀 Beyond Oil: Saudi Arabia’s non-oil GDP is projected to grow by up to 6 percentage points by the end of the decade, driven by the kingdom’s drive to diversify the economy away from dependence on fossil fuels, according to S&P Global. The oil sector’s share in GDP is on course to decline from over 30% currently to between 24 to 26% by 2030, S&P said.
⛽ Pumping Gas: Saudi Aramco said it will launch its first branded retail gas station in Pakistan by the end of the year after acquiring a 40% stake in Gas & Oil Pakistan Ltd. in May.
🤝 Crypto Settlement: eToro, the retail trading platform, will halt most cryptocurrencies offerings to its customers and pay a $1.5 million penalty as part of a settlement with the U.S. Securities and Exchange Commission for operating as an unregistered broker and unregistered clearing agency in its cryptocurrency offerings.
🌍 Power Circuit
UAE President Sheikh Mohamed bin Zayed and Li Qiang, Premier of the State Council of China met on Thursday to discuss further aspects of cooperation between both countries, WAM reports.
Sheikh Mohammed bin Rashid, UAE Vice President, Prime Minister and Ruler of Dubai, met with King Hamad bin Isa Al Khalifa of Bahrain, at the King’s residence in Abu Dhabi.
Sheikh Tamim ibn Hamad Al Thani, the Emir of Qatar, held a meeting at Lusail Palace in Doha on Thursday with Prince Abdulaziz bin Saud, Saudi Arabia’s Minister of the Interior, to discuss relations between the two neighboring states.
Sheikh Saud bin Saqr Al Qasimi, Supreme Council Member and Ruler of Ras Al Khaimah, held discussions with the leaders of the Shenzhen municipal government in China to explore trade and investment opportunities.
➿ On the Circuit
Robert A. Raines assumed his duties as U.S. Consul General to Dubai and the Northern Emirates, presenting his credentials on Thursday to Rashid Abdulla Al Qaseer, Deputy Director of the UAE Ministry of Foreign Affairs’s Dubai Office.
Prince Abdulaziz bin Saud, Saudi Interior Minister, and Sheikh Khalifa Al Thani, Minister of Interior and Commander of the Internal Security Force in Qatar, signed a cooperation agreement to exchange personal data and information for security purposes.
🎶 Culture Circuit
🎨 Remembering a Pioneer: Safeya Binzagr, a trailblazing woman in Saudi Arabia’s fine art world, passed away on Thursday at the age of 84. Binzagr, celebrated for her efforts in documenting Saudi social history and traditions, focused on preserving the country’s traditions and folklore. Binzagr was one of the first female artists to hold an art exhibition in the kingdom in 1968. She later authored two books, “Saudi Arabia: An Artist’s View of the Past” and “A Three-Decade Journey with Saudi Heritage,” further cementing her legacy.
🗓️ Ahead on The Circuit
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. 16-20, Dubai, UAE: World Congress on Intelligent Transport Systems. Event brings together professionals from mobility, technology, and policy sectors to discuss and showcase advancements in smart mobility. Dubai World Trade Center.
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.
Sept. 24-26, Dubai, UAE: Arablab 2024. A lab show where exhibitors discuss the latest developments in the laboratory industry. Dubai World Trade Center.
Sept. 24-26, Dubai, UAE: Ru’ya (Emirati Career Fair). A career fair organized under the auspices of the Dubai government to provide Emirati job seekers a platform to look for jobs in the private sector. Dubai World Trade Center.
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.
