The Weekly Circuit
👋 Hello from the Middle East!
In the Weekly Circuit today, we’re looking at Saudi Arabia’s hiring BlackRock to help develop a mortgage-backed securities market, Mubadala-owned Sanad’s $408 million engine sale to Etihad Airways and the IMF’s latest forecast for Middle East economic growth. But first, HSBC tops Standard Chartered in investment banking fees and a Circuit interview with Nuwa Capital’s Khaled Talhouni.
A jump in dealmaking across the Middle Eastand North Africa has generated an estimated $1 billion in investment banking fees so far this year – a 27% boost over the first nine months of 2023, with HSBC leading the pack.
London-based HSBC earned $80.4 million in fees during the first three quarters of 2024, or 7.8% of the total investment banking pool, Zawya reports, citing LSEG Deals Intelligence.
Coming second in the banking field’s league tables was Standard Chartered with $56.5 million in fees, followed by First Abu Dhabi Bank with $56 million. The highest amount of investment banking fees were generated from Saudi Arabia ($470.7 million), followed by the UAE ($395.9 million), Qatar ($45 million), Kuwait ($41.7 million) and Egypt ($25.1 million).
The largest deal in the MENA region during the first nine months of 2024 was ADNOC’s $14.8 billion takeover offer for German chemicals company Covestro, according to the LSEG data. The largest during the third quarter was UAE clean energy firm Masdar’s offer to buy Spain’s Saeta Yield from Brookfield Renewable for $1.4 billion.
Saudi Arabia, meanwhile, is pouring money into health care with a new emphasis on showcasing the integration of artificial intelligence by its hospitals and growing pharmaceutical industry.
Speaking at the Global Health Exhibition in Riyadh this week, Saudi Health Minister Fahad Al-Jalajel announced investment deals worth more than $13 billion.
“Our goal is for the Kingdom of Saudi Arabia to serve as a hub for addressing global challenges by establishing a unified government approach, focusing on innovation, digital solutions and artificial intelligence,” Al-Jalajel said at the conference.
CIRCUIT INTERVIEW
Nuwa Capital navigates evolving Middle East VC investment landscape
Khaled Talhouni, Managing Partner of Nuwa Capital, says the recent proliferation of tech IPOs in the Gulf demonstrates that a “window is opening” for investors on stock exchanges in the UAE, Saudi Arabia and their neighbors, The Circuit’s Omnia Al Desoukie reports.
Talhouni, 39, has a broad view of developments in regional finance having opened offices in both Dubai and Riyadh for the venture capital firm, which manages $100 million in assets.
Nuwa’s backers include Saudi Arabia’s Al Faisaliah Group, Abu Dhabi’s Mubadala Investment Co., Jada Fund of Funds and the Dubai Future District Fund. Among its portfolio companies are Calo, a Bahrain-based meal planning start-up; Zest Equity, an online platform for managing venture capital investments; and Raqamyah, a Saudi crowdfunding platform.
Click here to read the full interview.
💲 Sovereign Circuit
Mubadala: The Abu Dhabi sovereign wealth fund closed its latest fund, MIC Capital Partners IV, on $3.1 billion, well above the initial target of $2 billion, Pitchbook reports. Sanad, meanwhile, a Mubadala-owned aerospace engineering firm, announced the sale of 16 aircraft engines to Etihad Airways for about $408 million.
Saudi Real Estate Refinance Co.: The kingdom’s property finance arm has hired BlackRock, the world’s biggest fund manager, to help it develop a market for mortgage-backed securities as the kingdom looks to improve the affordability of its housing stock, Bloomberg reports.
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
🇮🇹 Radar Development: Italian shipbuilder Fincantieri signed a draft agreement with Barzan Holdings, a company owned by Qatar’s Ministry of Defense, for the joint development of a short-range radar program valued at $108 million.
🍦 Keeping Cool: Kuwaiti dessert maker Pure Ice Cream, which makes products for Hershey’s and Kwality, announced plans to build an $21.8 million factory at Dubai Industrial City.
📈 HR Shares: Saudi Arabia’s Tamkeen Human Resources Co. set its IPO price at $13.31 per share, the top of the range, seeking to raise about $106 million when it starts trading next month.
☪️ Halal Insurance: Dubai-based Islamic insurance Takaful Emarat reduced its share capital by about $34 million to $7 million in a move to offset its accumulated losses.
🩺 Remote Diagnosis: OneStep, an Israeli startup that enables smartphones to be used as remote medical analytic tools, raised $36 million in a Series B funding round led by Team8 and Vintage Investment Partners.
🗣 Circuit Chatter
🇮🇹 Radar Development: Italian shipbuilder Fincantieri signed a draft agreement with Barzan Holdings, a company owned by Qatar’s Ministry of Defense, for the joint development of a short-range radar program valued at $108 million.
🍦 Keeping Cool: Kuwaiti dessert maker Pure Ice Cream, which makes products for Hershey’s and Kwality, announced plans to build an $21.8 million factory at Dubai Industrial City.
📈 HR Shares: Saudi Arabia’s Tamkeen Human Resources Co. set its IPO price at $13.31 per share, the top of the range, seeking to raise about $106 million when it starts trading next month.
☪️ Halal Insurance: Dubai-based Islamic insurance Takaful Emarat reduced its share capital by about $34 million to $7 million in a move to offset its accumulated losses.
🩺 Remote Diagnosis: OneStep, an Israeli startup that enables smartphones to be used as remote medical analytic tools, raised $36 million in a Series B funding round led by Team8 and Vintage Investment Partners.
🌍 Power Circuit
Saudi Crown Prince Mohammed bin Salman and Egyptian President Abdel Fattah al-Sisi agreed to deepen trade and investment cooperation during talks in Cairo on Tuesday.
Emir of Qatar Sheikh Tamim bin Hamad Al Thani landed in Brussels to lead his country’s delegation participating in the first summit between the GCC and the European Union.
Sheikh Mohamed bin Rashid, Vice President and Prime Minister of the UAE, and Ruler of Dubai, said in an X post on Sunday as GITEX week opened that “Technology is growing rapidly and Dubai is growing with it at the same pace.”
Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi and Chairman of ADIA, led the sovereign wealth fund’s board meeting on Monday in a session joined by Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, and Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council.
PLUGGED IN
GITEX was a whirlwind – What should I be doing now to follow up
GITEX was a behemoth conference that welcomed 6,000 delegates and over 100,000 visitors to Dubai last week.
Being part of it was a whirlwind of innovation, tech insights, and networking, but the real magic happens after the event – when you follow up, Brittany McDonough writes in her column for The Circuit.
If you’re wondering how to turn those GITEX connections into new opportunities, here’s a quick guide on best practices after you come home.
➿ On the Circuit
Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai, said a strong partnership between the public and private sectors in the UAE continues to reinforce its status as a global economic hub. He spoke today during a meeting with business executives, investors and senior government officials at Zabeel Palace in Dubai.
Emir of Qatar Sheikh Tamim bin Hamad Al Thani, met with German Chancellor Olaf Scholz at a palace north of Berlin on Tuesday for talks aimed at deepening economic and diplomatic ties, Reuters reports.
French President Emmanuel Macron will travel to Morocco next week for a three-day state visit starting Oct. 28 at the invitation of Moroccan King Mohammed VI following years of strained relations.
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defense, Chairman of The Executive Council of Dubai, and Chairman of the Higher Committee for Future Technology and Digital Economy, approved a series of new projects to boost startups, support talent, and promote innovation and entrepreneurship.
🎶 Culture Circuit
Mohammed Al-Jadaan, Saudi Arabia’s Minister of Finance, is in Washington this week heading the kingdom’s delegation to the annual IMF/World Bank meetings.
Ali Dalloul, a longtime former Microsoft executive, was appointed as Group Chief Strategy Officer for the Abu Dhabi-owned AI firm G42.
Mahmood Al Aweini, Secretary General of Oman’s Ministry of Finance, said on Tuesday that Muscat can become a leading player in sustainable green financing in the Gulf, as the country makes reforms as part of its Vision 2040 agenda.
Dr. Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, has launched a TradeTech Accelerator to support startups developing advanced technology solutions for the trade sector.
Dr. Amna bint Abdullah Al Dahak, UAE Minister of Climate Change and Environment, visited the farm of Abdulrahman Al Shamsi, an Emirati agricultural entrepreneur, in Al Ain on Monday to highlight innovative agricultural practices and technologies.
📷 Photo of the Week
🗓️ Ahead on The Circuit
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.
