The Daily Circuit
Today in the Daily Circuit, we’re looking at Mubadala’s latest fintech investment in London, ADIA’s bid to buy an airport stake in Malaysia, LuLu’s upcoming IPO in both the UAE and Riyadh, and a rebrand for ADNEC, which will provide power in Abu Dhabi under the name TAQA Distribution. But first Aramco leans heavily into building up AI infrastructure.
Groq Inc., a California-based artificial intelligence startup, is teaming up with Aramco to build a data center in Saudi Arabia that it hopes will become a regional AI hub.
With funding from Aramco, the No. 1 oil company, Groq plans to operate the world’s largest AI inferencing center with an initial cluster of 19,000 language processing units that is expected to cost “in the order of nine figures,” CEO Jonathan Ross told Bloomberg in an interview. It may grow to as much as 200,000 processing units.
The partnership will be managed through Aramco Digital, a new unit intended to help Aramco use AI in its core energy business while also helping other firms use the technology.
Aramco is “planning to do massive capital deployments for this, and it is a way to help diversify the economy away from oil,” Ross told the news agency.
By building the data center in Saudi Arabia, Groq aims to capitalize on the country’s low energy costs, availability of land, and access to 4 billion people within a 100 millisecond ping – a measure of how quickly data can travel between processing location and users, Ross said.
📰 Developing Stories
RETAILER FUNDRAISING
The UAE’s mega-retailer and supermarket chain LuLu Group is preparing to launch an IPO that could be as much as five times larger than any previous IPO in the industry. The offering, scheduled for late October or early November, will be a dual listing aiming to raise between $1.5 billion and $1.85 billion, Zawya reports. The stock will be traded on both the Abu Dhabi Securities Exchange and Saudi Arabia’s Tadawul. Emirates NBD Capital, HSBC Holdings, Abu Dhabi Commercial Bank, and Citigroup have been appointed as book runners, Zawya said.
POWER REBRAND
Abu Dhabi National Energy Co. is introducing a new brand identity for its operating companies in Abu Dhabi, which will from now on be known as TAQA Distribution. ADNEC said in a statement on Monday that the move underpins its strategy to grow through delivering integrated power and water services in the UAE and internationally. Under the new brand, Abu Dhabi Distribution Co. and Al Ain Distribution Co. will be brought under the new brand and operate as a single entity throughout the emirate of Abu Dhabi. The company said its new brand will emphasize low carbon power and strengthen TAQA’s operational efficiency.
💲 Sovereign Circuit
Mubadala: The Abu Dhabi sovereign wealth fund took a stake in the London-based fintech Revolut, participating in a share sale that last month secured a $45 billion valuation, the Financial Times reports. The size of the investment could not immediately be ascertained.
Abu Dhabi Investment Authority: GIP Aurea, a Singapore-based joint venture between Global Infrastructure Partners and ADIA, has bid on a 30% stake of Malaysia Airports Holdings.
Public Investment Fund: The Saudi sovereign wealth fund launched its Musahama Design Competition aimed at promoting the use of local materials , showcasing local designers and stimulating growth in Saudi manufacturing.
↪↩ Closing Circuit
⛏️ Metal Mining: Alcoa Corp. will receive $1.1 billion in cash and stock in Saudi Arabian Mining Co. as part of a deal that will involve the Pittsburgh-based firm selling its stake in two Saudi metals plants, Bloomberg reports.
🍫 Chocolate Kingdom: Nestle, the Swiss food and beverage company, signed an agreement to establish its first manufacturing plant in Saudi Arabia and plans to build the new facility in Jeddah.
🌍 LNG Contract: Italy’s Saipem won an offshore contract worth $4 billion from QatarEnergy to boost its North Field offshore natural gas field, which lies off the northeastern coast of Qatar.
🛩️ FlyingGreen: The UAE’s General Civil Aviation Authority and Hong Kong’s Volar Air Mobility have signed an interim agreement to establish green aviation technology centre, aimed at advancing clean energy, sustainable aviation research, and international collaboration.
💰IPO Range: Saudi Arabia’s Fourth Milling Co. aims to raise between $215 million and $229 million when it sells a 30% stake in the company in an IPO, based on its price range set at $1.33 to $1.41 per share.
Circuit Chatter
🎒Towering Tuition: The boom in Dubai’s financial sector has created a growing population of traders and bankers willing to fork out premium prices to educate their kids in private schools, with tuition and fees at the GEMS World Academy reaching $33,000 by grade 12, Bloomberg reports.
🏦Attracting Wealth: EDGE, a UAE based advanced technology and defense group, has announced a joint business plan with its subsidiary CONDOR, a non-lethal technology company, to establish manufacturing and specialized training facilities in the UAE.
🌴Forest Guardian: ruya, the UAE’s digital-first Islamic community bank, launched a green initiative with Sacred Groves, a nature-based community interest company, in which for every $270 in a customer’s account, ruya will pledge to protect 1 square foot of primary forest for 10 years.
💸ETF Duet: Saudi Arabia’s first exchange traded funds, or ETFs, investing in Hong Kong’s equities market, will be listed on Riyadh’s Tadawul stock exchange before the end of the year, as authorities try to strengthen financial ties between the two markets, the Financial Times reports.
🌍 Power Circuit
Sheikh Tamim Al-Thani, the Emir of Qatar, received a message on Sunday from Djibouti President Ismail Omar Guelleh, highlighting the importance of their country’s relationships.
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defense of the UAE, and Chairman of the Board of Trustees of the Dubai Future Foundation, has approved the launch of the Dubai Research, Development, and Innovation Grant Initiative, which aims to fund research projects that drive advancements in Dubai’s key economic sectors.
Egyptian Prime Minister Mostafa Madbouly arrived in Riyadh on Sunday along with Finance Minister Ahmed Kouchouk and Hassan El-Khatib, Investment and Foreign Trade Minister, to discuss economic cooperation with their Saudi counterparts.
Jafar Hassan was appointed Prime Minister of Jordan on Sunday by King Abdullah, replacing Bisher Khasawneh, who resigned with his government following last week’s parliamentary election in which the Islamist opposition made gains.
➿ On the Circuit
Hend Al Otaiba, the first woman to serve as UAE Ambassador to France, is stepping down after three years in the post, she announced on X.
Asif Raza, one of JPMorgan Chase & Co.’s most senior executives in the Middle East, has retired after 28 years with the bank, Bloomberg reports.
Mohammed al-Kuwari, first vice-chairman of Qatar’s Chambers hosted a trade delegation from Malaysia led by Tengku al-Haj, Prince of Selangor, to discuss further trade cooperation.
Suhail Al Mazrouei, the UAE Energy Minister, said during the World Utility Congress summit that clean energy made up 28% of the UAE’s energy mix last year, a significant step toward its 2030 goal of 30% clean energy.
Sheikh Bandar bin Mohammed, Qatar Central Bank Governor, said that the fixed exchange rate policy pursued by GCC countries has led to both financial and monetary stability.
🎶 Culture Circuit
🎨 Fauvist Fusion: Saudi artist Mohammed Al-Aameri is presenting a fusion of cubism and fauvism in his newest exhibition at the Kenz Gallery in Riyadh. The artworks in “Red Line,” add a distinct Saudi flavor to fauvism, the early 20th-century movement that emphasizes vibrant colours and expressive brushwork. “My exhibition aims to convey feelings and emotions as an alternative to realistic photography, blending my personal style with techniques inspired by fauvism and cubism,” Al-Aameri told Arab News.
🗓️ 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.
