The Daily Circuit
In the Daily Circuit today, Riyadh’s burgeoning King Abdullah Financial District is raising money for further expansion, Lulu supermarkets is selling a 25% stake on the ADX, the Saudi PIF has created a company to build staff quarters for big construction projects and the New York Knicks have signed a deal to wear an Abu Dhabi logo on their uniforms. But first, a UAE-Russia summit in Moscow.
Having visited U.S. President Joe Biden earlier in the month at the White House, UAE President Sheikh Mohamed bin Zayed is continuing his international travels with a stop in Moscow.
Russian President Vladimir Putin hosted the Emirati leader for dinner on Sunday, with an official meeting set for today that will focus both on commercial relations, as well as the conflicts with Ukraine and in the Middle East, according to a Kremlin statement.
Trade between the two countries has tripled to $7 billion over the last three years, even as Russia has been subject to sanctions applied by the U.S., the U.K. and the European Union. Putin personally thanked the UAE President for mediating a prisoner exchange between Russia and Ukraine, the statement said.
Following the Moscow visit, Sheikh Mohammed will travel on Tuesday to the Russian city of Kazan for a summit of the BRICS group of nations, which it joined in January.
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
FINANCE HUB
Riyadh’s chief financial center is already nearly three times the size of London’s Canary Wharf and plans to get bigger. The King Abdullah Financial District in Saudi Arabia’s capital city will seek to raise more than $700 million by listing some of its income-generating buildings in a real estate investment trust, or REIT, on the Saudi stock exchange, Bloomberg reports. Citigroup, HSBC, and Al Rajhi Capital are advising on the deal. The funds will support further development of the district, which has been under construction for over a decade and reached an occupancy level of over 95%.
SHOPPING FOR SHARES
UAE retail giant LuLu plans to sell a 25% stake of the company in an IPO starting Oct. 28, with its shares hitting the ADX trading floor on Nov. 14. The business, which owns hypermarkets, supermarkets and malls across the MENA region, as well as in India and Malaysia, is looking to raise as much as $1.8 billion through the share sale, Zawya reports. The Abu Dhabi-based company founded by Yussuf Ali counts ADQ as an investor, having sold the sovereign wealth fund a 20% stake in 2020. Emirates NBD Capital, HSBC Holdings, Abu Dhabi Commercial Bank and Citigroup are joint bookrunners on the IPO, with Moelis & Co. retained as financial advisor.
💲 Sovereign Circuit
Public Investment Fund: The Saudi sovereign wealth fund established a company to build and operate housing for staff of major construction and development projects across the kingdom.
Abu Dhabi Investment Authority: ADIA-backed Lake Shore, a management company, raised over $143 million through a green loan from HSBC Commercial Banking for Viviana Mall in Mumbai, marking India’s first sustainability-linked fundraising for a retail property.
Qatar Investment Authority: QIA Chairman Sheikh Bandar bin Mohammed Al Thani, who is also Governor of the Qatar Central Bank, held meetings in Washington last week with Howard Marks, Co-Chairman of Oaktree Capital Management, and Stephen Schwartzman, Chairman, CEO and Co-Founder of Blackstone.
↪↩ Closing Circuit
🌽 Food Finance: Helios Investment Partners, a London-based private equity fund focused on Africa, will invest about $40 million in Egypt’s Raya Foods.
🏙️ Towering Views: UAE developer Select Group awarded a building contract to Arabian Construction Co. for its $1 billion ultra-luxury Six Senses Residences Dubai Marina, which at 122 stories, will be the world’s tallest residential tower.
🔒 Security Matters: Cyera, an Israeli cybersecurity company, acquired Trail Security, another Israeli firm, for $162 million, mostly in shares, Calcalist reports.
↪↩ Circuit Chatter
🛢️ Top Customer: Saudi Aramco is “fairly bullish” on China’s oil demand, driven by the government’s stimulus package, with rising demand for jet fuel and naphtha, Aramco CEO Amin Nasser said on the sidelines of the Singapore International Energy Week conference, Reuters reports.
🤖AI Power: ADNOC Distribution is developing over 20 AI-powered tools to optimize operations and enhance efficiencies, while also using data analytics to design new stations, CEO Bader Al Lamki told The National at the Gitex Global technology conference last week in Dubai.
☕ Coffee to Go: Gateway Partners, a Dubai-based private equity firm, is considering selling its stake in the Gulf franchise of Tim Hortons four years after its initial investment in the Canadian coffee chain, Bloomberg reports.
🌍 Power Circuit
King Mohammed VI of Morocco held a Council of Ministers meeting at the Royal Palace in Rabat on Saturday that focused on the 2025 budget, military affairs, international agreements, and key appointments.
Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, chaired a meeting of the Advanced Technology Research Council last week and approved plans for three ventures under ATRC’s commercialization arm VentureOne. The projects focus on quantum-era data security, smart autonomous mobility, and robotics-driven agritech.
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defense, Chairman of Dubai Executive Council, and Chairman of the Higher Committee for Development and Citizen Affairs in Dubai, approved the master plan for development of the Saih Al Salam Scenic Route.
➿ On the Circuit
Dr. Thani Al Zeyoudi, UAE’s Minister of State for Foreign Trade, has launched a TradeTech Accelerator to support startups developing advanced technology solutions for the trade sector.
Bandar Alkhorayef, Saudi Arabia’s Minister of Industry and Mineral Resources, concluded his official visit to Spain, during which he held meetings with ministers and private sector leaders, to expand the scope of industrial and mining cooperation, and highlight investment opportunities.
Mohamed Hadi Al Hussaini, UAE Minister of State for Financial Affairs, held a meeting in Dubai with Samir Sharifov, Minister of Finance of Azerbaijan, to discuss financial cooperation.
Robert Raines, U.S. Consul General for Dubai and the Northern Emirates, and a high-level business delegation from the U.S.-U.A.E. Business Council, were at the Movenpick Resort Al Marjan Island in Ras Al Khaimah on Friday to discuss growing trade relations with the emirate.
🎶 Culture Circuit
🏀 Basketball Branding: On the heels of the NBA exhibition games in Abu Dhabi, the New York Knicks are tapping into the UAE’s ferocious appetite for pro basketball. Madison Square Garden Sports Corp. and Abu Dhabi’s Department of Culture and Tourism have signed a marketing partnership that will place an “’Experience Abu Dhabi” logo on Knicks player uniforms. Meanwhile, the international FIBA league will hold its 14 international teams and one local team competing in the 3×3 World Tour event this weekend on the Abu Dhabi Corniche, bringing 14 international teams to the UAE capital.
📷 Photo of the Day
🗓️ Ahead on The Circuit
Oct. 21-22, Dubai, UAE: AIM Summit Dubai 2024. Investors from alternative investment firms mix with government officials and corporate executives. Jumairah Emirates Towers.
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.
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. 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.