Today in the Daily Circuit, we’re looking at Mubadala’s participation in a private credit program with Citicorp and Apollo, ADQ’s $2 billion bond issue in London, Masdar’s taste for acquisitions in Spain and Dubai’s new disclaimers for crypto investors. But first, the UAE’s leader heads home after working on strengthening economic ties in the U.S.

UAE President Sheikh Mohamed bin Zayed wrapped up his U.S. tour with a stop at former U.S. President Donald Trump’s Mar-a-Lago resort in Palm Beach, Florida. He also met with former President George W. Bush in Texas and held a phone conversation with former President Bill Clinton before flying home to Abu Dhabi.

The centerpiece of the U.S. visit was a visit to the White House at the beginning of the week after which the Emirati leader and President Joe Biden issued a 3,900-word joint statement outlining the relationship of the two countries as “dynamic strategic partners.”

Focused in large part on the U.S.-Emirati economic alliance, the statement took note of the $1.5 billion artificial intelligence investment deal between Microsoft and the UAE’s Group 42, as emblematic of the growing technology cooperation between the two countries.

The two leaders “underscored that this transformative partnership has the potential to usher in a new era of international connectivity to facilitate global trade, expand reliable access to electricity, facilitate clean energy distribution, and strengthen telecommunication,” the joint statement said.

Biden and Sheikh Mohammed “emphasized the importance of joint initiatives to promote a circular economy, reduce waste, facilitate recycling, and advance sustainable practices, underscoring their commitment to innovation for resource efficiency and environmentally responsible growth,” the statement said.

The statement also called attention to promising regional initiatives including the India-Middle East-Europe Economic Corridor that will seek to connect India to Europe with ship-to-rail connections through the UAE, Saudi Arabia, Jordan, Israel and Greece.

TASTE OF SPAIN

The UAE’s government-owned Masdar renewables company has its sights set on the Iberian Peninsula and more broadly on Europe. The company’s M&A chief Faisal Tahir Bhatti tells Reuters that its $1.4 billion acquisition of Madrid-based Saeta Yield from Canada’s Brookfield this week and the minority stake it bought in a Spanish solar portfolio with Endesa in July are just the beginning. “The fact that we’ve done two deals in a matter of a couple of months tells you that we are very keen on the Spanish market,” Bhatti said. Masdar and other Gulf investors have intensified dealmaking with European energy companies interested in selling minority stakes in wind and solar parks to maximize returns and curb debt, the news agency said.

DECARBONIZING GAS

Saudi Arabia’s Aramco Ventures has increased its investment in Utility Global, a Houston-based developer of gas decarbonization technology, in collaboration with steelmaker ArcelorMittal. The investment is part of Utility Global’s current growth equity funding round, with the proceeds used to accelerate commercialization of the company’s eXERO system that helps with reducing greenhouse gas emissions. Aramco first injected capital in Utility Global in 2022 during a Series B funding round that raised $25 million. The current round was led by Canada’s OPG Pension Plan and includes participation from ArcelorMittal, through its XCarb Innovation Fund.

💲 Sovereign Circuit

Mubadala: The UAE fund will participate as a strategic partner in a new $25 billion private credit and direct lending program established by Citigroup and Apollo Global Management.

ADQ: The Abu Dhabi sovereign wealth fund announced the successful pricing of its second bond issuance, which will raise $2 billion with its listing on the London Stock Exchange.

TAQA: The UAE’s Abu Dhabi National Energy Co. is teaming up with SUEZ, a French global leader in circular water management systems, and Germany’s Siemens to develop more efficient forms of desalination technology.

↪↩ Closing Circuit

🍞 Baking Bread: Saudi Arabia’s Fourth Milling Co. expects to raise about $229 million when it sells a 30% stake in the company in an IPO, which will be priced at $1.41 per share. The schedule for the offering has not yet been set.

🚙 Battery-Powered: Chinese electric vehicle builder Xpeng will begin exporting its cars to Qatar after signing an agreement with the Gulf state’s Pioneer Motors as part of the Guangzhou-based company’s global expansion efforts.

🛢️ Oil Drilling: Abu Dhabi has awarded a new oil and gas exploration concession in Al Dhafra to Malaysia’s Petronas as part of a campaign to attract global energy investments.

⚗️ Drug Improvements: Immunai, an Israeli pharmaceutical startup, signed an $18 million agreement with AstraZeneca to collaborate on making cancer drug trials more efficient.

Circuit Chatter

🤖 Tech Games: Canada’s tech-filled theme park operator Activate has opened its first Middle East location, teaming up with UAE shopping mall owner Majid Al Futtaim to set up a branch at Dubai’s City Centre Mirdif.

💼 Bulking Up: Wall Street advisory firm PJT Partners plans to increase its headcount in Saudi Arabia following the acquisition of Dubai-based deNovo Partners, founder Paul Taubman told Bloomberg in an interview.

₿ Crypto Risks: Dubai has introduced new regulations for companies promoting digital assets, requiring them to include a disclaimer that discloses the risks of potential losses and extreme volatility associated with crypto trading.

🪪 Express Entry: The UAE Ministry of Interior signed an agreement with the U.S. Department of Homeland Security to include Emirati citizens in its Global Entry Program, allowing travelers to provide security details before reaching the U.S. and skip long Customs lines.

🌍 Power Circuit

Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi, UAE National Security Adviser and Chairman of G42, paid a visit to tech billionaire Elon Musk at the headquarters of Musk’s Tesla electric car company in Austin, Tex.

Sheikh Abdullah bin Zayed, UAE Minister of Foreign Affairs and Deputy Prime Minister, hosted a reception in New York on Wednesday evening on the sidelines of the U.N. General Assembly, where he met with Blackstone Group CEO Steve Schwarzman and an array of other business and political leaders.

Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai met with Sir Mark Tucker, Group Chairman of HSBC Holdings, at Za’abeel Palace in Dubai.

➿ On the Circuit

Dr. Sultan Al Jaber, the UAE Minister of Industry and Advanced Technology, Group CEO of ADNOC and COP28 President, called on nations around the world to fulfill their pledged contributions for cutting greenhouse emissions, looking at them “not as a burden but as platforms for new streams of growth, green jobs and a clean future.” He was speaking this week at the COP Presidencies Troika event, held on the sidelines of the U.N. General Assembly in New York.

Naji Issa was named governor of Libya’s Central Bank as part of an agreement between the country’s rival factions that aimed at resolving a dispute that has cut the nation’s oil output. Issa was formerly head of the Central Bank’s issuance department.

Derek Rozycki, Mubadala’s Head of Responsible Investing, delivered a talk on the fund’s environmental considerations and its role in the “One Planet Sovereign Wealth Funds” initiative at a Bloomberg Philanthropies event during New York Climate Week.

Aurélien Sauty was appointed by Africa Specialty Risks, a pan-African and Middle East-focused insurance group, as head of its Marine and Aviation division, based in Dubai.

🎶 Culture Circuit

🎨 Jeddah Picasso: Saudi artist Heba Ismail is bringing her work, “Modernity Roots,” to the Bilory ArtHaus gallery in Jeddah from Oct. 29 to Nov.15. Ismail, who patterns her work after Picasso, creates bold maximalist portraits with thick lines and angular forms that depict individuals in traditional Saudi and Arab attire.

Photo of the Day

🗓️ Ahead on The Circuit

Sept. 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. 

Oct. 5-6, Abu Dhabi, UAE: Abu Al Abyad Dhow Sailing Race. The race is expected to set off from Abu Al Abyad to the Abu Dhabi Breakwater, attracting dhow owners and elite sailors. Abu Al Abyad Island.

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. 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.22-24, Dubai, UAE: Dubai Helishow. Conference features innovations in hybrid and electric helicopters, AI integration, UAV combat operations, and civil aviation. Skydive Dubai.

Nov. 12-13, Abu Dhabi, UAE: CyberQ: Security in the Quantum Era. Conference brings together international experts, policymakers and industry players to discuss challenges of the quantum age of cybersecurity. ADNEC.