The Daily Circuit
đź‘‹ Hello from the Middle East
In the Daily Circuit today, we’re looking at the upcoming IPO of Lulu hypermarkets, ADIA’s participation in a $1.4 billion Indonesian toll road investment, General Atlantic’s new office in Saudi Arabia and Aramco’s new fund to support AI ventures. But first, bankers are landing in Riyadh as “Davos in the Desert” opens tomorrow.
Saudi Arabia is in full swing this week in its effort to wow Wall Street and the rest of the financial world as Crown Prince Mohammed bin Salman hits the midpoint of his Vision 2030 plan to transform the economy.
Some 7,000 movers and shakers are pouring into Riyadh for the annual Future Investment Initiative conference that takes place annually at the opulent Ritz Carlton hotel and in the vast halls of the adjacent King Abdul Aziz International Conference Center.
Getting a jump on the confab in Riyadh, the developers of Saudi Arabia’s trillion-dollar-plus Neom project invited a select group of financiers, celebrities and influencers to a kickoff event over the weekend at Sindalah Island, five kilometers off the kingdom’s west coast, Bloomberg reports.
The Red Sea resort island, where an ecosystem is rising of super-luxury hotels, swank night clubs and an 86-berth yacht marina, hosted a beach party headlined by Grammy Award winner Alicia Keys. She sang to an audience that included actor Will Smith, tennis champ Rafael Nidal and former NFL quarterback Tom Brady.
Back in the capital, FII opens on Tuesday with a bevy of investment bankers, hedge fund founders and corporate titans who have become regulars at the conference that was originally billed as “Davos in the desert,” to highlight its aspirations for global influence.
Among the speakers slated for the main stage are Larry Fink, Chairman and CEO of BlackRock; Ben Horowitz, co-founder of Andreesen Horowitz, Jane Fraser, CEO of Citi; Ken Griffin, Founder and CEO of Citadel; Dame Julia Hoggett, CEO of the London Stock Exchange; Ruth Porat, President and Chief Investment Officer of Alphabet and Google; and David Rubenstein, Co-Founder and Co-Chairman of The Carlyle Group.
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The three-day event will be introduced by Yasir Al-Rumayyan, who is Governor of the Saudi Public Investment Fund and Chairman of Aramco. Richard Attias, CEO of the FII Institute, said at a press conference that he expects some $28 billion in business deals to be announced during the course of the conference.
Throughout the week, The Circuit’s Jonathan Ferziger and Omnia Al Desoukie will be on the conference floor, bringing you the deals, insights and chatter emanating from FII. We would like to know your thoughts and receive your feedback. You can reach us by replying to this newsletter or emailing us at [email protected].
đź“° Developing Stories
TOP OFFERING
Get set for the UAE’s biggest IPO of the year. It took only an hour for all the shares being offered by Lulu Retail Holdings to be grabbed up by investors, Bloomberg reports. Based on pricing for the grocery chain’s shares at the high end of their initial range, Lulu will generate $1.4 billion and eclipse oil services firm NMDC Energy’s $877 million offering. Among the institutional investors subscribed for the shares are the Abu Dhabi Pension Fund, Bahrain Mumtalakat Holding Co., Emirates International Investment Co., and Oman Investment Authority.
EV SUPPORT
Car and auto services companies in the UAE are coming together to support the sale of electric vehicles. So far, 17 businesses have joined the Road 2.0 Initiative developed by the UAE Alliance for Climate Action that declares their intention to promote zero-emission cars. Among the signatories are Aramex, Majid Al Futtaim, Schneider Electric, talabat and Unilever. Meanwhile, the country’s EWEC water and electric utility is teaming up with the ADNEC Group to use only renewable energy in the ADNEC Centre Abu Dhabi.
đź’˛ Sovereign Circuit
Abu Dhabi Investment Authority: The Indonesia Investment Authority, backed by ADIA and Dutch pension investor APG, announced a $1.4 billion investment in the Trans Sumatra Toll Road.
Abu Dhabi Fund for Development: ADFD and the Development Bank of Latin America and the Caribbean, known as CAF, signed an agreement to strengthen collaboration in sustainable economic growth, co-financing, and investment across Latin America.
Mubadala: Mamoura Diversified Global Holding, which is owned by the Abu Dhabi sovereign wealth fund, said it is preparing an investor presentation for an Islamic bond offering by its MDGH Sukuk subsidiary.
↪↩ Closing Circuit
đź’µMideast Anchor: General Atlantic, which manages $80 billion in assets, is opening an office in Saudi Arabia to generate more Middle East deals for its private equity business, Bloomberg reports.
🤖 AI Investment: Wa’ed Ventures, the VC arm of Saudi Aramco, has earmarked $100 million to invest in artificial intelligence startups, Bloomberg reports.
⛽Sustainable Fuel: OQ, Oman’s energy group said it has invested over $204 million to construct a storage facility for oil, gas and jet fuel that is being built with a high level of regard for environmental sustainability principles.
🏠Emirati Takeover: ADNOC has finalized the $16.3 billion purchase of German chemicals maker Covestro, including its debts, following approval by Germany’s financial regulator.
📽️Media On-Demand: Bein Media Group announced a multi-year licensing deal with Paramount Global Content Distribution to bring entertainment content, including Pay TV rights and subscription video on demand, to the Middle East and North Africa.
đź—Ł Circuit Chatter
⛽Gas Lag: U.S. regulators gave Exxon Mobil and Qatar Energy LNG a three-year extension that should allow their joint venture to finish building a liquified natural gas plant in Texas that has been delayed by the bankruptcy of its lead contractor, Reuters reports.
🏙️Urban Engine: Kuwait is taking bids to build a new city for 35,000 residents that will comprise more than 22,000 houses, hotels and other facilities at a cost of some $3.3 billion, Al-Qabas reports, predicting that Chinese firms are likely to win many of the contracts.
🏗️ Brand New: Aldar Properties has completed the redevelopment of Al Hamra Mall in Ras Al Khaimah, part of its $272 million investment in retail locations.Â
đź’˛Installment Plan: The Egyptian Company for Natural Gas Distribution known as Town Gas, has signed agreements with Banque Misr and its affiliate, Souhoola, allowing customers to pay for gas delivery in installments, including via the popular Souhoola app.Â
 🛬  No Objection: Australia’s Qantas airline is open to Qatar Airways’ proposal to buy a 25% stake in Virgin Australia, CEO John Mullen told shareholders at the company’s annual meeting, Reuters reports.
🌍 Power Circuit
Emir of Qatar Sheikh Tamim bin Hamad received Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi and UAE National Security Adviser, on Sunday at the Emiri Diwan Palace in Doha.
Pham Minh Chinh, Prime Minister of Vietnam, arrived in the UAE on Sunday for an official visit and was received at the airport by Dr. Thani Al Zeyoudi, Minister of State for Foreign Trade.
Sheikh Khaled bin Zayed, Crown Prince of Abu Dhabi, will begin an official visit to Singapore on Tuesday at the invitation of Singaporean Prime Minister Lawrence Wong.
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defense, and Chairman of Dubai Executive Council, issued a declaration making the Mohammed Bin Rashid Leadership Forum an annual event.
âžż On the Circuit
Sir Tim Clark, President of Emirates Group, marked the airline’s 39th birthday, by hailing its contribution to Dubai’s economy and predicting that the upcoming move of its headquarters to Al Maktoum International Airport will generate more growth over the next decade.
Amr Talaat, the Egyptian Minister of Communications and Information Technology, inaugurated Deloitte’s $30 million Innovation Hub in Cairo, the firm’s first global center for exporting digital services from Egypt.
🎶 Culture Circuit
⚾Team Spirit: Well before the first crack of a bat, the Middle East’s new Baseball United league is rolling out the merchandise. Starting Nov. 3, budding fans who can’t wait for Opening Day – in October 2025 – will be able to enter GO Sport at the Dubai Mall and buy caps, jerseys and t-shirts emblazoned with the colors and logos of their favorite team. For the first season, that includes the Mideast Falcons, the Arabia Wolves, the Mumbai Cobras and the Karachi Monarchs.
đź“… Circuit Calendar
Oct. 29-31, Riyadh. 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: 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. 5-7, Dubai: EMEA Stakeholder Conference, This invitation-only event brings together over 700 of the most influential leaders from across the hotel and real estate industry in Europe, the Middle East and Africa to discuss the latest trends shaping the hotel industry. Lapita Dubai Parks and Resorts Autograph Collection.
Nov. 12-13, Abu Dhabi: CyberQ: Security in the Quantum Era.The event will bring together international experts, key policymakers and industry players to discuss the fundamental challenges of the quantum age of cybersecurity. ADNEC.
Dec. 5-6, Abu Dhabi: Milken Institute Middle East and Africa Summit. Corporate executives, investors, government officials, and philanthropists gather to address the globe’s most pressing issues. St. Regis Saadiyat Island.
Dec. 5-8, Abu Dhabi: Abu Dhabi Grand Prix 2024. World’s fastest race drivers compete in Abu Dhabi leg of the Formula One season. Yas Marina Circuit.
Dec. 9-10, Abu Dhabi: The Bitcoin Conference. The conference connects with industry leaders, and experiences a dynamic expo hall featuring a fusion of technology and art. ADNEC.
Dec. 9-12, Abu Dhabi: Abu Dhabi Finance Week. Bringing top economic talent to discuss the ongoing challenges and prospects in the economy. Al Maryah Island, ADGM Square.