The Weekly Circuit
đź‘‹ Hello from the Middle East!
This week, we’re looking at takeaways from UAE President Sheikh Mohamed bin Zayed’s visit to Washington, $1.2 trillion pension fund Nuveen’s new Gulf office, ADQ’s joint climate venture in Switzerland and the NBA stars arriving for this week’s two exhibition games in Abu Dhabi. But first, Saudi Arabia looks to raise cash for its new beach resorts.
Red Sea Global, Saudi Arabia’s government-owned firm for the massive redevelopment of the kingdom’s western shoreline, is looking to raise money amid this year’s shortfall in foreign investment.
The PIF-backed company plans to borrow at least $3.7 billion over the next year to help build its Amaala luxury tourism project, a 29-hotel development focused on wellness, Bloomberg reports.
Red Sea Global expects to have six new hotels operating before the end of 2024 and around 20 more in 2025, including eight at Amaala, Gregory Djerejian, the company’s head of investments and legal affairs, told the news agency.
The coastal development is key to Saudi Arabia’s plans to transform itself into a top tourism destination. To help achieve its targets, the kingdom has pledged to spend billions of dollars, though several of the projects are facing cutbacks.
The Saudi Finance Ministry released figures on Monday that show the kingdom’s 2024 deficit growing by almost 50% to $32 billion from projections made last December.
ALLIANCE-BUILDING
UAE leader comes home from U.S. carrying economic dividends
UAE President Sheikh Mohamed bin Zayed is back in Abu Dhabi after a weeklong trip to the U.S. that included an Oval Office meeting with President Joe Biden and a visit to former President Donald Trump’s Mar-a-Lago resort in Palm Beach, Florida, The Circuit’s Jonathan Ferziger reports.
After the White House talks, the U.S. and UAE leaders 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 document 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.
AMASSING WEALTH
$1.2 trillion Nuveen opens shop at Abu Dhabi Global Market
Nuveen is the second trillion-dollar investment firm to open shop over the past month at Abu Dhabi Global Market, The Circuit’s Omnia Al Desoukie reports.
Nuveen CEO William Huffman said his firm, which holds the assets of the U.S. teachers’ pension fund TIAA, offers the Middle East market “forward-looking opportunities including infrastructure, renewable energy and real estate technology,” speaking to The National.
Prior to Nuveen, which manages $1.2 trillion in assets, Prudential Financial’s PGIM, with $1.3 trillion under management, also opened an office in the UAE capital in September.
đź’˛ Sovereign Circuit
ADNOC, the state-owned UAE oil and gas company reached a deal to buy chemical producer Covestro AG for about $13 billion, in what’s set to be the biggest Middle Eastern acquisition of a European firm, Bloomberg reports.
Qatar Airways plans to acquire a 25% stake in Australia’s Virgin Australia Airlines from Bain Capital. Terms of the deal were not disclosed.
Masdar: The Abu Dhabi-owned renewable energy company closed its acquisition of a 50% stake in U.S.-based Terra-Gen Power Holdings from Energy Capital Partners.
Public Investment Fund: PIF-backed water company ACWA, teamed up with Aramco subsidiary Sapco and Electricity Holding Co. on the financial closing of three solar projects with a $3.2 billion investment. CEO Jerry Inzerillo of Riyadh’s PIF-run Diriyah project, meanwhile, told Reuters the company has agreed on deals worth nearly $1 billion with Italian and French developers while it conducts talks to attract more foreign capital.
ADQ: The Abu Dhabi sovereign wealth fund is joining forces with Switzerland’s EQTY Lab to develop AI-driven climate solutions, The National reports. ADQ’s Alpha Dhabi Holding, meanwhile, divested 49% of its subsidiary, Alpha Dhabi Construction Holding, to ADQ, while retaining a 51% stake.
↪↩ Closing Circuit
🛵 Delivery IPO: Talabat, the Middle East subsidiary of Germany’s Delivery Hero, is likely to be valued at between $12.9 billion and $15.1 billion ahead of its planned Dubai IPO later this year.
â›˝ Asia Engineering: Chinese contractor Jereh Oil & Gas Engineering secured a $316 million contract to provide engineering, procurement, construction, and commissioning services for Bahrain Petroleum Co., focusing on gas facilities in southern Bahrain.
🛞 Changing Gears: Shift, a Saudi car rental startup, raised $83 million in a funding round led by Merak Capital.
â‚ż Blockchain Finance: Ripple, a blockchain-enabled payments provider has received an in-principle license from the Dubai Financial Services Authority, to operate as a payment services provider in the emirate and is in talks to expand to other Gulf states.
đź©ş Medical Venture: Nym, an Israeli AI medical startup, raised $47 million in a funding round led by PSG, with participation from Samsung Next and Google Ventures.
đź—Ł Circuit Chatter
🛍️ Retail Therapy: Qatar is rapidly becoming a top retail destination in the MENA region, leveraging its $330 billion infrastructure investments from the 2022 FIFA World Cup, with new stores, malls and tourist attractions such as the $5.5 billion Simaisma Project, according to London-based consulting firm Knight Frank.
🔌 Energy Talks: Saudi Arabia’s ACWA Power is in talks with Turkey to invest $5 billion in the country’s green energy sector, Bloomberg reports.
🚀 Space Merger: Space42 began trading on the Abu Dhabi Securities Exchange, or ADX, on Tuesday after merging with Bayanat, a geospatial technology developer, and Al Yah Satellite Communications Co.
🧑🏾‍🌾 Climate Care: The UAE will invest $30 million in Ghana’s biodiversity ecosystem, reforestation, agroecology and other climate goals.
🏄 Surf Park: Bahrain Real Estate Investment Co. is teaming up with GFH Financial Group to launch the Bahrain Surf Park-Club Hawaii Experience, using wave-making technology.
🌍 Power Circuit
Sheikh Tahnoon bin Zayed, UAE National Security Adviser and Chairman of G42, posted a photo on Instagram of his meeting with Mark Zuckerberg, congratulating the Meta CEO on the release of large-language model Llama 3.2, the launch of the Quest 3S headset and the introduction of Orion AR eyeglasses.
Emir of Qatar Sheikh Tamim bin Hamad met in Doha with Sheikh Khaled bin Mohamed bin Zayed, Crown Prince of Abu Dhabi, who was on an official visit to the nearby Gulf state.
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Minister of Defense of the UAE and the Deputy Prime Minister, gave his approval to Dubai’s Real Estate Strategy 2033 plan, which aims to boost the value of the emirate’s property transactions to $272 billion over the next nine years.
Community Comms
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âžż On the Circuit
Naguib Sawiris, Egypt’s second-wealthiest man and Chairperson ofOra Developers Egypt, called on the Central Bank of Egypt to reduce the country’s 30% interest rates, which he said prevented Ora from making any profit in the first construction phase of its Zed Sheikh Zayed development in western Cairo.
Hassan bin Moejeb, President of the Federation of Saudi Chambers, has been appointed the first Vice President for the Union of Arab Chambers.
Adam Neumann, who was ousted as CEO of WeWork and co-founded real estate company Flow, has bought a 30% stake in Israel’s Canada Global property firm for about $27 million.
Alan Coary was appointed Middle East Data Center Lead at London-based consulting firm Turner & Townsend and will be based in Riyadh.
Wael Mahdi has been appointed as Chief Growth Officer for the Middle East and North Africa at Gen Plus Group, a London-based network of PR agencies.
🎶 Culture Circuit
🏀 Playing Hoops: NBA stars from the championship-winning Boston Celtics and the Denver Nuggets have have arrived in the UAE capital for this year’s pre-season exhibition series known as the NBA Games Abu Dhabi. The two-game competition on Thursday and Saturday will be accompanied by a four-day interactive basketball fan event hosted by retired NBA center Shaquille O’Neal that will include a live performance by Grammy Award-winning rapper 2 Chainz.
🎞 Oscar Rivals: Arab filmmakers from six countries have submitted entries for the Best International Feature Film competition at the 2025 Academy Awards on March 2. They include Egypt’s “Flight 404, directed by Hani Khalifa; Morocco’s “Everybody Loves Touda,” directed by Nabil Ayouch; Algeria’s “Algiers,” directed by Chakib Taleb-Bendiab; a collection of 22 Palestinian short films by Gazan filmmakers, entitled “From Ground Zero,” presented by Rashid Masharawi; Jordan’s “My Sweet Land,” directed by Azza Hourani; and Iraq’s “Bagdhad Messi, directed by Sahim Omar Kalifa.
đź“· Photo of the Week
Falconers from around the Gulf gathered in Saudi Arabia’s Al-Hammad area this week for the start of hunting season. (Saudi Press Agency)
🗓️ Ahead on The Circuit
Oct. 5-6, Abu Dhabi, UAE: The Abu Al Abyad 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.
Oct. 31, Abu Dhabi, UAE: Transition Investment Workshop. NYU Abu Dhabi’s Transition Investment Lab holds a day of discussions on aligning investment decisions with social values. NYU Abu Dhabi, East Forum.
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.
