The Daily Circuit
Today in the Daily Circuit, we’re looking at Core42’s use of Nvidia AI chips, progress on Saudi Arabia’s $5 billion investment pledge to Pakistan, the opening of SalesForce’s regional office in Dubai and next week’s GITEX mega-conference, with a preview of the convening in The Circuit’s new “Plugged In” column. But first, Lunate’s dipping its toes into Wall Street.
Lunate, the upstart $105 billion asset manager fueled by Abu Dhabi sovereign wealth, is mulling an investment in the fast-growing private credit market.
The firm, launched in January by Sheikh Tahnoon bin Zayed’s International Holding Co. may buy a minority stake in New York-based HPS Investment Partners, which itself is considering an IPO or sale, Bloomberg reports.
Lunate is evaluating an investment of $1 billion or more in HPS, according to the news agency, which says the company is also entertaining interest from BlackRock and private equity firm CVC Capital Partners
The origins of Lunate trace back to two of Abu Dhabi’s most active holding companies, IHC and sovereign wealth fund ADQ. It was in March 2023 that IHC announced plans to establish a multi-asset class investment manager, which later became Lunate, and bring on U.S. private equity firm General Atlantic as a strategic partner and investor.
Editor’s note: You can let us know your thoughts and feedback by replying to this newsletter or emailing us at [email protected].
📰 Developing Stories
CHIP SECURITY
Following earlier and now resolved U.S. concerns over China getting access to its artificial intelligence technology, the UAE’s Core42 AI company is showcasing its use of Nvidia’s high-security, American-made H100 Tensor Core GPUs. “There’s a domestic regulatory regime, and then there’s the U.S. regulatory environment in controlling advanced U.S. technologies and export controls more broadly,” Talal Al Kaissi, Core42’s chief government affairs and partnerships officer, tells The National. “To a great extent we have a first-mover advantage in being able to create an environment that delivers and inspires confidence to ensure that we are mitigating against the risks of diversion or access by unauthorized parties,” he said. The UAE has forged partnerships with Nvidia, Microsoft and OpenAI under the understanding that it would vigorously protect their products from foreign intrusion.
ISLAMABAD PLEDGE
In a bid to finalize $2 billion in proposed deals, Saudi Investment Minister Khalid bin Abdulaziz Al-Falih is midway through a three-day trip to Pakistan. His visit comes ahead of next week’s conference of the Shanghai Cooperation Organization, a Eurasian regional alliance founded by China and Russia. Pakistan has been trying to strengthen trade, energy and defense ties with Saudi Arabia as it seeks to emerge from an economic crisis that has emptied foreign exchange reserves and pummeled its currency. Pakistani Deputy Prime Minister Ishaq Dar was quoted by Saudi Arabia’s Arab News as telling a cabinet meeting that the two countries are on a path to forge ever closer strategic cooperation.”
💲 Sovereign Circuit
International Holding Co.: NMDC, an IHC subsidiary that performs dredging, reclamation and ground improvement services, signed a $1.4 billion contract with UAE-based Modon Co. for a marine construction project.
Qatar Investment Authority: Sainsbury’s largest shareholder QIA is selling $399 million worth of shares in the U.K. supermarket group, according to regulatory filings.
↪↩ Closing Circuit
International Holding Co.: NMDC, an IHC subsidiary that performs dredging, reclamation and ground improvement services, signed a $1.4 billion contract with UAE-based Modon Co. for a marine construction project.
Qatar Investment Authority: Sainsbury’s largest shareholder QIA is selling $399 million worth of shares in the U.K. supermarket group, according to regulatory filings.
🔌 Plugged In
Plugged In
Where to position yourself on the Middle East conference circuit
While getting started in the world of Middle East business is largely about making personal connections, the inevitable question is: How? The Circuit’s Brittany McDonough has answers.
What steps can investors, startup founders and entrepreneurs take to forge relationships and develop deals as they contemplate entering the MENA market?
“Plugged In” debuts in the Daily Circuit today as a column that will regularly offer practical advice on approaching this dynamic and growing region – whether for the first time or through reigniting past conversations that were left by the wayside.
↪↩ Circuit Chatter
🖇️ Office Platform: Salesforce, the largest maker of customer management software, opened an office in Dubai as part of its strategy to expand globally and introduce new AI products.
💳 Cashless Commerce: Dubai launched an initiative to promote digital commerce, aiming to make 90% of all transactions in the emirate cashless by 2026.
🔋Ammonia Contracts: ADNOC Logistics and AW Shipping, a joint venture with Wanhua Chemical, awarded $250 million in contracts to China’s Jiangnan Shipyard for two additional Very Large Ammonia Carriers. The energy giant has also completed its acquisition of OCI’s 50% + 1 share stake in Fertiglobe.
🌍 Power Circuit
UAE President Sheikh Mohamed bin Zayed made a phone call to Kais Saied, President of Tunisia, to congratulate on his re-election for a second presidential term.
Sheikh Mohammed bin Abdulrahman Al Thani, Qatar’s Foreign Minister, met with the Iranian Foreign Minister Abbas Araghchi in Doha on Thursday.
➿ On the Circuit
Noor Sweid, Founding and Managing Partner at Dubai-based Global Ventures, noted the growing number of IPOs and M&A activity in Saudi Arabia and across the GCC region, telling Bloomberg Television, “the landscape is maturing rapidly.”
Carlos Ghosn, the embattled former Chairman of Nissan, said he is not interested in running for President of Lebanon, despite calls that he join Beirut’s political fray.
Hammad Albalawi, head of the Saudi Arabia FIFA World Cup organizing committee, announced a partnership with Saudi Research and Media Group’s Manga Arabia to release a cartoon-style publication titled “Road to 2034” to capture the imagination of young fans.
Nagaraj Padmanabhan was appointed CEO of the Middle East and African markets at CirrusLabs, a U.S.-based software product and technology services provider with a branch in UAE since 2022.
🎶 Culture Circuit
💫 Dream Weddings: Abu Dhabi’s Saadiyat Island is evolving into a popular wedding venue. Known for its elegant private beaches and home to the Louvre Abu Dhabi, the island will be prominent at the Abu Dhabi Wedding Show next week. Some of its notable wedding locations include the Park Hyatt, the Rixos Premium Saadiyat Island, Kai Beach and the Saadiyat Rotana R
🗓️ Ahead on The Circuit
Oct. 12, Riyadh, Saudi Arabia: Riyadh Season. The Saudi capital’s annual festival kicks off with a nighttime concert featuring R&B queen Ciara and hip-hop artist Busta Rhymes. Riyadh Season grounds.
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.
Oct. 29-31, Riyadh, Saudi Arabia. Future Investment Initiative Conference, 8th Edition. More than 6,000 global participants registered, including world leaders, policymakers CEOs and investors. King Abdul Aziz International Conference Center.
Nov. 5-7, Dubai, UAE: EMEA Stakeholder Conference, This invitation-only event brings together over 700 leaders from across the hotel and real estate industry in Europe, the Middle East and Africa. Lapita Dubai Parks and Resorts Autograph Collection.
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.