The Weekly Circuit
đź‘‹ Hello from the Middle East!
Today in the Weekly Circuit, we’re looking at Saudi Arabia’s new cement factories for its futuristic city known as The Line, Dubai’s plans to create a real estate investment trust, ADQ’s appointment of a master developer for the Ras El Hekma megaproject in Egypt and the PIF’s acquisition of a 40% stake in London’s Selfridges department stores. But first, Abu Dhabi overtakes Oslo for the No. 1 sovereign wealth ranking.
Abu Dhabi, brimming with oil money and investment revenue, has become the city with the world’s largest accumulation of sovereign wealth.
Tallying up the combined assets of ADIA, Mubadala, ADQ and the Emirates Investment Authority, industry monitor Global SWF said Abu Dhabi has amassed $1.7 trillion, putting it ahead of Oslo’s $1.6 trillion, and funds in Beijing, Singapore and Hong Kong. Riyadh ranked No. 4 with $1.1 trillion in the Public Investment Fund.
Besides the sovereign funds, Global SWF notes Abu Dhabi’s growing prominence as a home for government-owned institutional investors, the world’s largest and most active deal makers. Among them are central banks, public pension funds and family offices linked to royal family members, the report said.
“All in all, we estimate Abu Dhabi’s public capital at $2.3 trillion and we project it to reach $3.4 trillion by 2030,” Global SWF said.
CONCRETE STEPS
NEOM teams up on new cement factories to build The Line
Saudi Arabia is taking concrete steps to accelerate construction of The Line, its planned trillion-dollar city of the future, The Circuit’s Omnia Al Desoukie reports.
NEOM, which runs the project and surrounding development of the kingdom’s Red Sea coast, signed a partnership agreement with a Saudi construction company to build cement factories costing $187 million that will be used for the structure, which is planned to extend 110 miles across the desert.
The manufacturing facilities, which begin operations in November, will use carbon capture technology and a range of energy-saving innovations, NEOM CEO Nadhmi Al-Nasr told the Saudi Press Agency.
ROYAL OPPORTUNITY
Dubai Holding eyes real estate trust amid city’s property boom
Dubai’s ruler, Sheikh Mohamed bin Rashid, sees a grand opportunity as head of Dubai Holding Co. to capitalize on the city’s real estate boom, The Circuit reports.
The emirate’s government-owned conglomerate is in the early planning stages of creating a real estate investment trust, recruiting Citigroup, HSBC and Emirates NBD to manage a potential offering, Bloomberg reports. The company and banks declined to comment or didn’t respond.
In the UAE capital, meanwhile, institutional U.S. commercial real estate is fast becoming a game of “six degrees of Abu Dhabi,” The Promote reports, citing Mubadala’s $3 billion takeover of New York-based Fortress Investment Group in May, which has now received a regulatory go-ahead.
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đź’˛ Sovereign Circuit
ADQ: The Abu Dhabi sovereign wealth fund appointed Modon Holding as master developer for the Ras El Hekma seaside project in Egypt, in which it pledged to invest $35 billion.
Abu Dhabi Investment Authority: ADIA has established a subsidiary at the Gujarat International Finance Tec-City, the Indian international financial services center known as GIFT. The Abu Dhabi fund also has written off its 9.9% stake in the parent company of Thames Water, the U.K.’s largest water utility.
Public Investment Fund: The Saudi sovereign wealth fund is preparing to make a multibillion-dollar bet on hydrogen and will launch a new company called Energy Solutions Co. to produce the low-carbon fuel, Bloomberg reports. The fund is also forming a partnership with Central Group, a retail, real estate and hospitality conglomerate, following the PIF’s acquisition of a 40% interest in London-based Selfridges department stores.
Oman Investment Authority: Oman’s sovereign wealth fund has committed $150 million to a $1 billion fund managed by Saudi-Chinese private equity firm ewpartners for investment in Oman and other GCC countries.
Qatar Investment Authority: Qatar Investment Authority announced plans to merge Qatar National Broadband Network and Gulf Bridge International to create a digital and AI infrastructure company.
↪↩ Closing Circuit
đź’¸ Bond Issue: Aramco issued $3 billion of Islamic bonds, or sukuk, consisting of two dollar-denominated tranches: $1.5 billion maturing in 2029 with a 4.25% interest rate and $1.5 billion maturing in 2034 with a 4.75% interest rate.
đź’» Digital Funds: Saudi Alinma Bank and Texas-based Dell Technologies signed an agreement to collaborate on data center innovations, IT infrastructure, AI and cybersecurity.
🏛️ Saudi Capital: Saudi retail developer Arabian Centres Co. and investment firm GIB Capital launched a real estate fund compliant with the Islamic law, raising $266 million to facilitate a land sale program in Qassim province.
🖥️ Tech Center: Oman Data Park signed a preliminary agreement with Intro Technology to build a data center in the Suez Canal Economic Zone with an investment of $450 million.
⛽Mediterranean Pause: Chevron has decided to suspend work on laying a third underwater pipeline from Israel’s Leviathan gas field because of concern about attacks on its Mediterranean drilling platform.
đź—Ł Circuit Chatter
🚆All Aboard: Egypt’s Transport Ministry launched the first passenger service in 50 years on the revamped railway between Al Ismailia and Bir Al Abd, seeking to develop the Sinai Desert economy and boost living standards.
â‚ż Digital Tokens: ATME, a blockchain-based exchange licensed by the Central Bank of Bahrain for converting assets into tradable digital tokens, launched its business at the FinTech Forward conference in Manama last week.
🕰️ Clock Tower: UAE developer London Gate is teaming up with Swiss luxury watchmaker Franck Muller to construct a 34-story residential tower in Dubai branded as the Franck Muller Vanguard Tower.
⛵ Full Sails: The SailGP international competition has strengthened its sponsorship lineup by securing Emirates airline and DP World as Global Series Partners for the upcoming season, SportBusiness reveals.
🌍 Power Circuit
Saudi Crown Prince Mohammed bin Salman “offered reassurances” about the health of King Salman during a cabinet meeting on Tuesday after the 88-year-old monarch was hospitalized for a lung infection.
Emir of Kuwait Sheikh Mishal Al-Sabah received a visit from Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, and UAE Deputy Prime Minister and Minister of Defense. The Emirati delegation included Mohammad Al Gergawi, Minister of Cabinet Affairs; Dr. Thani Al Zeyoudi, Minister of Trade; Reem Al Hashimy, Minister of State for International Cooperation; and Omar Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications.
Sheikh Tahnoon bin Zayed, UAE National Security Advisor and Chairman of G42, held a meeting with Jensen Huang, founder and CEO of Nvidia, to discuss further opportunities for collaboration in AI computing and climate tech.
Emir of Qatar Sheikh Tamim bin Hammad held a meeting with Sheikh Mansour bin Zayed, UAE Vice President, Deputy Prime Minister and Chairman of the Presidential Court on Thursday on the sidelines of the Asia Cooperation Dialogue summit in Doha.
Sheikh Mohammed bin Rashid, UAE Vice President, Prime Minister, and Ruler of Dubai, launched the “Plant the Emirates” national program, during a Cabinet meeting, to advance agricultural development and enhance sustainable national food security.
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âžż On the Circuit
Prince Alwaleed bin Talal, Founder and Chairman of Saudi Arabia’s Kingdom Holding Co. has launched a comeback attempt topped by his reviving construction of the Jeddah Tower, which is planned to be the tallest in the world, the Financial Times reports.
Marc Rowan, Co-Founder and CEO of Apollo Global and an active Gulf investor, is revamping his asset management firm to compete with banks with what the Financial Times describes as a plan “to remake Wall Street.”
John Kerry, the former U.S. Secretary of State and Climate Envoy, has joined the green investment group Galvanize Climate Solutions, which is run by billionaire fund manager and top Democratic donor Tom Steyer, the Financial Times reports.
Jared Kushner, founder of Affinity Partners, and his wife Ivanka Trump are negotiating with Serbian authorities and moving ahead with plans for a $1 billion development filled with luxury villas on the island of Sazan, The Wall Street Journal reports.
Dovid Efune, the British-born publisher of the New York Sun, is facing some opposition within London’s Telegraph Media Group as he enters a six-week exclusivity period with Redbird IMI in a quest to gain control over the London newspaper, the Financial Times reports.
🎶 Culture Circuit
🎤 Rapping in Dubai: British rapper Stormzy is set to headline the final night of the three-day Emirates Dubai 7s festival on Dec.1. The performance will be Stormzy’s first UAE performance since his appearance at the Abu Dhabi Grand Prix after-race concert in 2021. “Stormzy is one of the biggest names in music, and we couldn’t think of anyone better to close out our
đź“· Photo of the Week
Jordan’s King Abdullah greeted UAE President Mohamed bin Zayed upon his arrival at Marka Airport in Amman on Oct. 6. (Emirates News Agency)
🗓️ Ahead on The Circuit
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. 29-31, Riyadh, Saudi Arabia. Future Investment Initiative Conference. More than 6,000 global participants registered, including world leaders, policymakers, CEOs and investors. King AbdulAziz International Conference Center.
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.
