Today in the Daily Circuit, we’re looking at Mubadala’s new $8.2 billion partnership with Aldar Properties, the Saudi PIF’s launch of an entertainment company focused on the kingdom’s Islamic heritage, UAE President Sheikh Mohamed bin Zayed’s White House visit next week and the proliferation of “centi-millionaires” in Dubai, Abu Dhabi and Riyadh. But first, Lazard opens a regional HQ in the Saudi capital.

Saudi Arabia’s push to anchor itself as a global financial capital lassoed another Wall Street firm as Lazard Inc. received a government license to establish a regional headquarters in Riyadh.

The authorization by the kingdom’s Ministry of Investment will allow Lazard to compete for government contracts that can be granted only to international companies that comply with the law requiring a substantial presence in Saudi Arabia, Bloomberg reports.

Goldman Sachs became the first major financial institution to get its regional headquarters license in May, while Japan’s Mizuho Financial Group Inc. received the authorization in June.

In the UAE, meanwhile, Stonepeak, a New York-based investment firm with $71 billion in assets, said it will open an office in the Abu Dhabi Global Market, joining a wave of financial firms drawn by the UAE capital’s expanding wealth.

DOWN UNDER

Central banks in the UAE, Saudi Arabia and Bahrain cut their benchmark interest rates by half a percentage point, following in the footsteps of the U.S. Federal Reserve. Although inflation in the Gulf remains low compared to the U.S. and Europe, the decline in oil prices has had a more significant impact on the region’s economy than monetary policy, Bloomberg reports. After the Fed’s decision on Wednesday to cut its borrowing rate by 50 basis points, Qatar’s central bank reduced its rate by 55 points. Kuwait, which pegs its dinar to a basket of currencies, cut its interest rate by 25 basis points.

POWERING AI

Dubai, Abu Dhabi and Riyadh are among the cities that will likely experience explosive growth over the next two decades because of a proliferation of “centi-millionaires.” A report by Henley & Partners predicts a 150% increase in the three Gulf financial centers of residents with liquid investable assets of $100 million or more. There are currently 29,350 centi-millionaires around the world, a figure that has grown by 54% over the last 10 years. New York’s 744 centi-millions represent the world’s largest collection of the super rich, followed by the San Francisco Bay Area with 675 and Los Angeles with 498, according to the report. London ranks fourth with 370 centi-millionaires.

💲 Sovereign Circuit

Mubadala: The Abu Dhabi sovereign fund has formed an $8.2 billion partnership with Aldar Properties to manage assets across the capital, including retail hubs luxury residential communities and industrial parks.

Public Investment Fund: Saudi Arabia’s PIF launched the National Interactive Entertainment Co., which will be known as QSAS, to create immersive storytelling experiences based on the kingdom’s heritage and Islamic history.

Abu Dhabi Investment Authority: ADIA has committed capital to Polus Capital Management, a London-based credit investor, providing an undisclosed amount of funding for its Special Situations division that invests in “stressed and distressed “corporate debt.

↪↩ Closing Circuit

🏭 African Gas: ARA Petroleum Oman was awarded a 25-year license to develop Tanzania’s Ntorya gas site, East African nation’s largest natural gas discovery to date.

 ✈️ Flight Talk: Saudi Arabia’s Mawarid Holding has made an investment  in Sceye, a U.S.-based aerospace company specializing in high-altitude communications. The size of the investment was not disclosed.

✨ Kazakh Tech: Abu Dhabi’s Gulf Capital and Kazakhstan’s Qazaqstan Investment Corp. launched an $800 million fund to invest in Central Asia, focusing on technology, fintech, healthcare, business services, and logistics.

💳 Chatbot Help: UAE automotive software company Seez, which uses AI chatbots to help customers buy cars, has secured $4.2 million from an unidentified investor to expand into the U.S. market.

🏢 Property Portfolio: Bahrain’s Investcorp invested $300 million in three industrial real estate assets, boosting its U.S. holdings to $5.3 billion. The acquisitions give Investcorp properties in Dallas, Atlanta, Denver, Las Vegas, San Diego, Tampa and the San Francisco Bay area.

Circuit Chatter

🧑 Women Wanted: The UAE Ministry of Economy issued a decision requiring private joint-stock companies to have at least one woman on their Board of Directors, starting in January 2025.

🛍️ Digital Finance: Qatar Development Bank said it will help manage a new investment partnership between Singapore-based Fingular and Qatar’s TESS Payments, which plans to provide more than $600 million in loans to Qatari residents over the next three years through its Qatar FinTech Hub subsidiary and digital banking system.

⚗️ Chemical Reaction: Germany-based Bilfinger has secured a consulting contract with Egyptian Chemical Industries to develop a new chemical and fertilizer plant in Aswan.

❄️ Cool Data: Following a successful pilot project in Abu Dhabi’s Masdar City,  National Central Cooling Co., known as Tabreed, is exploring new projects that will use geothermal technology to cool energy intensive data centers, MEED reports.

🌍 Power Circuit

UAE President Sheikh Mohamed bin Zayedwill start an official visit to the United States this coming Monday, with plans to meet President Joe Biden and a range of other top U.S. officials. The trip will be his first since assuming the UAE Presidency in May 2022 and will include discussions on issues including trade, investment and technology, artificial intelligence, space and renewable energy, the Presidential Court said.

Saudi Crown Prince Mohammed bin Salmancited the increasing contribution of non-oil revenue to GDP and growing international profile of the Public Investment Fund in a speech to the kingdom’s Shoura Council in Riyadh on Wednesday.

Emir of Qatar Sheikh Tamim bin Hamadmet on Wednesday with Canadian Prime Minister Justin Trudeau at the House of Commons in Ottawa to discuss investment ties between the two countries.

➿ On the Circuit

Mina Hamoodi, Mubadala’s Head of Healthcare for Direct Investments, spoke on a panel at the Milken Asia Summit in Singapore this week about international investment in innovative healthcare companies.

Alia Abdullah Al Mazrouei, Minister of State for Entrepreneurship, held a roundtable with 20 venture capital CEOs to discuss ways to boost cooperation and support UAE startups.

Yoshi Katsuda has been appointed regional head of Japanese bank MUFG’s Middle East operations and will be based in Dubai.

Abdullah Hamad AIOshaiwan, was appointed General Manager for Saudi Arabia of London-based event design company Imagination. He was previously the Saudi Esport Federation’s Execution Masterplanner for Events Operations.

🎶 Culture Circuit

🍴Foodie Festival: Tokyo’s Crony restaurant, Evvai from Sao Paulo and Restaurant Allen from Seoul are among the top international eateries sending their chefs to Abu Dhabi for the three-day Michelin Guide Food Festival in November. Taking place at the Emirates Palace Mandarin Oriental, the event will include cooking demonstrations and master classes by the chefs who will serve their famed dishes for a fraction of their usual Michelin-starred prices, The National reports. 

Photo of the Day

Team ADQ’s Eleonora Gasparrini passes the finish line to win this week’s Women’s Cycling Grand Prix race in Stuttgart, Germany. (Emirates News Agency)

🗓️ Ahead on The Circuit

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.