The Weekly Circuit
👋 Hello from the Middle East!
This week we’re looking at a $3 billion Aramco bond sale in the works, Etihad Airways’ preparations for an IPO, Mubadala’s latest biopharmaceutical investment in the U.S. and interest from Asia’s biggest chipmakers in building factories in the UAE. But first, the UAE leader’s Washington visit.
UAE President Sheikh Mohamed bin Zayed emerged from the White House this week with a new security pact that recognizes the Gulf state as a “major U.S. defense partner.” The Emirati leader also met with top tech and finance leaders while he was in Washington to talk about the UAE’s AI ambitions.
During a meeting in the Oval office on Monday, U.S. President Joe Biden called the UAE “a nation of trailblazers… always looking to the future, always making big bets. And that’s something our countries have in common and our people have in common.”
On the following day, Sheikh Mohamed held serial meetings with MicrosoftCEO Satya Nadella, BlackRock CEO Larry Fink, and Nvidia CEO Jensen Huang.
Also present were senior members of the Royal Court and corporate executives, including Sheikh Tahnoon bin Zayed, the UAE National Security Adviser and Chairman of AI development firm G42; Khaldoon Al Mubarak, Managing Director and Group CEO of Mubadala; Mohamed Alsuwaidi, Minister of Investment and CEO of ADQ; Edge Group Chairman Faisal Al Bannai and G42 CEO Peng Xiao.
Microsoft, meanwhile, announced on Tuesday that it is expanding its Global Engineering Development Center’s activities to the UAE, opening a new facility in Abu Dhabi that will be the company’s first engineering center in the Arab world.
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]
URBAN WEALTH
Gulf financial centers attract rising class of ‘centi-millionaires’
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,” The Circuit’s Omnia Al Desoukie reports.
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.
CHIPPING IN
UAE’s AI drive may lead to TSMC, Samsung building factories
The UAE’s determination to become a world center for AI development is attracting new interest from Asia’s big chipmakers, The Circuit’s Jonathan Ferziger reports.
Taiwan’s TSMC and South Korea’s Samsung Electronics have discussed building large facilities to manufacture semiconductors in the UAE that could help propel the Gulf state to its goal of recognition as an artificial intelligence power, The Wall Street Journal reports.
Under initial terms being discussed, the projects would be funded by the UAE, with a central role for the Mubadala sovereign wealth fund and state-owned investment company MGX, which is focused on AI technology.
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💲 Sovereign Circuit
ADQ: Etihad Airways CEO Antonoaldo Neves said the Abu Dhabi-based carrier has been working to prepare for an IPO and is awaiting a decision to go ahead with the offering from shareholder ADQ. The sovereign wealth fund, meanwhile, is investing in a research project to determine whether cultivating quinoa can help the UAE ensure the country’s food security, teaming up with agritech company Silal and the International Center for Biosaline Agriculture.
Masdar: The UAE renewable energy company will acquire Saeta Yield, a Madrid-based renewables firm, from Toronto-based Brookfield Corp. for $1.2 billion as Masdar seeks to build up its European portfolio.
Mubadala: The Abu Dhabi sovereign wealth fund participated in a Series A financing round that raised $65 million for GC Therapeutics, a U.S. biopharmaceutical company developing cell therapy-based medicines.
International Holding Co.: Rorix Holdings, a UAE trading company backed by Abu Dhabi-owned International Holding Co. signed an agreement with India’s Adani Ports and Special Economic Zone to integrate technologies for management, storage, and trading of commodities.
Public Investment Fund: BlackRock’s $5 billion investment deal with the PIF that was announced in April and the involvement of Deputy Governor Yazeed Al Humied is an indication of the sovereign wealth funds growing focus on Saudi Arabia’s domestic needs, Bloomberg reports.
↪↩ Closing Circuit
📈 Bond Sale: Saudi Aramco is seeking to raise as much as $3 billion in a second round of international bond sales just two months after it raised $6 billion in a previous debt offering, Reuters reports.
🚀 Space Vibes: EDGE, the UAE based advanced technology and defense group, launched a space company, FADA, which it said will develop space technology and “enhance its global competitiveness.”
✨ 3D Innovation: Qatar’s UCC construction company, signed an agreement with Denmark’s COBOD, the world’s leading manufacturer of concrete 3D printers, to supply the world’s largest third-generation 3D printers that will be used to build schools.
🌴 Agtech Capital: UAE-based Pure Harvest Smart Farms will seek to raise $100 million by the end of the year to support its expansion into Singapore, Morocco, and Kuwait, CEO Sky Kurtz told Semafor.
📞 Telecom Funds: Qatar’s Ooredoo telecommunications company arranged a $547 million financing deal with QNB, Doha Bank, and Masraf Al Rayan to build up its AI and data center business, promising major expansion and upgrades across the country.
🗣 Circuit Chatter
🚗 Clean Cars: Oman says plans to sell only zero-emission cars by 2050 as part of its energy strategy to move away from fossil fuels to achieve net-zero carbon emissions.
🏦 New Branch: New York-based private equity firm General Atlantic plans to open an Abu Dhabi office by the end of the year and move a dealmaker from London as the new team’s first member, Reuters reports.
🔌 AI Power: Anthropic, the Mubadala-backed AI firm that has become the largest competitor to OpenAI, is talking to investors about raising capital in a deal that could value the San Francisco-based company at as much as $50 billion, The Information reports.
💸 Wealth Station: Santander, the No. 1 private bank in Spain, opened a private wealth office at the Dubai International Financial Centre, its first in the MENA region.
🏛️ Chasing Expats: Investec, a specialist bank focusing on wealthy clients in South Africa and the U.K., is opening an office in Dubai as it aims to serve the growing expatriate community in the region.
🌍 Power Circuit
UAE President Sheikh Mohamed bin Zayed visited Children’s National Hospital in Washington D.C. on Monday, touring the UAE-funded Sheikh Zayed Institute for Pediatric Surgical Innovation.
Sheikh Mohammed bin Rashid, Ruler of Dubai and Vice President and Prime Minister of the UAE, approved a $2.7 billion expansion plan for the Dubai Exhibition Centre at Expo City Dubai.
Sheikh Mohammed bin Abdulrahman, Prime Minister and Minister of Foreign Affairs of Qatar, said in a speech at “The Summit of the Future” in New York on Sunday that his country wants to build a diversified and sustainable knowledge-based economy focused on digital technology, science and innovation.
Egyptian Prime Minister Mostafa Madbouly said the government has identified five sites on the Red Sea that could attract new investments similar to the $35 billion Ras El-Hekma deal led by Abu Dhabi-based ADQ in February.
➿ On the Circuit
Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President and CEO of ADNOC, held meetings this week with Ursula von der Leyen, President of the European Commission, and Italian Prime Minister Georgia Meloni on the sidelines of the annual U.N. General Assembly gathering in New York this week.
Aliko Dangote, a Nigerian billionaire who is Africa’s richest man with a fortune estimated at $13.2 billion is setting up a family office in Dubai to help diversify his holdings, Bloomberg reports.
Yazeed Al Humied, Deputy Governor of the Saudi Public Investment Fund, is among the most influential Gulf business figures that investors should know, Bloomberg reports. Also spotlighted is Humied’s fellow Deputy Governor Turqi Al Nowaiser, who oversees the sovereign wealth fund’s international investments.
Bandar Alkhorayef, Saudi Arabia’s Minister of Industry and Mineral Resources, met this week in Riyadh with Attilio Fontana, President of Italy’s Lombardy’s regional government, to discuss ways to build trade ties and cooperate in manufacturing.
🎶 Culture Circuit
🕹️ House of Hype: Fusing artificial intelligence and virtual reality with basic storytelling is drawing hundreds of thousands of visitors to digital theme parks owned by Hyperspace in the UAE and Saudi Arabia. CEO Alexander Heller tells The National that the company has raised $75 million and plans to open a park called the “House of Hype” at the Dubai Mall this year.
📷 Photo of the Day
UAE President Sheikh Mohamed bin Zayed meets with Nvidia CEO Jensen Huang on Tuesday during his visit to Washington. (UAE Royal Court)
🗓️ Ahead on The Circuit
Sept. 25-26, Abu Dhabi, UAE. Global Aerospace Summit. Brings together government policymakers, aerospace executives and investors to discuss industry’s future. St. Regis Saadiyat Island Resort.
Sep. 30-Oct. 2, Dubai, UAE: Future Hospitality Summit. Hotel executives, tourism industry leaders and investors converge in Dubai for global industry conference. Madinat Jumeirah.
Oct. 5-6, Abu Dhabi, UAE: The Abu Al Abyad 60ft Dhow Sailing Race. The race is expected to set off from Abu Al Abyad to Abu Dhabi Breakwater, attracting dhow owners and elite sailors. Abu Al Abyad Island.
Oct.8-10, Abu Dhabi, UAE: Global Rail. The event will gather over 150 senior representatives from the global transport value chain, including ministers, industry leaders, and key stakeholders. ADNEC.
Oct. 15-17, Dubai, UAE: Aviation Future Week. Conference brings together UAE ministers, senior government officials and leaders from the aviation, aerospace, air freight and other related industries. Museum of the Future.
Oct. 14-18, Dubai, UAE: GITEX Global. One of tech’s biggest events, the UAE conference brings companies from around the world to showcase their latest innovations. Dubai World Trade Center.
Oct.22-24, Dubai, UAE: Dubai Helishow. The event will feature a series of insightful talks, panel discussions, and keynotes, focusing on critical innovations in hybrid and electric helicopters, AI integration, UAV combat operations, and civil aviation. Skydive Dubai.
Nov 4-7, Abu Dhabi, UAE: ADIPEC. The event is the biggest gathering for energy leaders, policy makers, and key industry players. It is often attended by heads of multilateral organizations, ADNEC.
Nov. 12-13, Abu Dhabi, UAE: CyberQ: Security in the Quantum Era. Brings together international experts, key policymakers and industry players to discuss challenges in the quantum age of cybersecurity. ADNEC.
