The Daily Circuit
đź‘‹ Hello from Saudi Arabia
In the Daily Circuit today, we’re covering opening day at the Future Investment Initiative in Riyadh, the kingdom’s banner event for showcasing its economic transition. Elsewhere, we’re looking at the new Goldman Sachs office in the Saudi capital, French President Emmanuel Macron’s state visit to Morocco, Masdar’s clean steel project in the UAE and The United Bank’s upcoming share sale in Egypt.
Saudi Arabia is shifting gears, emphasizing its own needs for foreign capital over investing the kingdom’s wealth abroad.
That’s the message being delivered today to some 7,100 participants from across the finance world at this year’s eighth edition of the Future Investment Initiative.
Addressing a packed hall at the King Abdul Aziz International Conference Center in Riyadh’s diplomatic quarter, Saudi leaders put it simply:
“People used to come to us and ask for money,” said Yasir Al Rumayyan, Governor of the kingdom’s near trillion-dollar Public Investment Fund and Chairman of Saudi Aramco, the world’s largest oil company. “We are now seeing a shift from people wanting to take our money to people wanting to co-invest.”
Since its inception in 2017, the FII conference has been a key tool for outlining Saudi Crown Prince Muhammed bin Salman’s Vision 2030 blueprint for overhauling the economy to reduce its dependence on fossil fuels. That strategy has unleashed a torrent of construction projects across the country, including the $1.5 trillion Neom development on the kingdom’s west coast, which have soaked up Saudi funds and prompted the new emphasis on foreign investment.
Like the World Economic Forum in Davos, Switzerland, after which the Saudi conference is modeled, FII features some of the biggest names on Wall Street who are asked to prognosticate on prospects for the global economy.
Headliners on Day 1 included Ray Dalio, Founder of Bridgewater Associates; Harvey Schwartz, CEO of Carlyle; Jenny Johnson, President and CEO of Franklin Templeton; David Solomon, Chairman and CEO of Goldman Sachs; Marc Rowan, Co-Founder and CEO of Apollo Global Management and Jane Fraser, CEO of Citi.
FII is also a showcase for Saudi companies, which have lined the conference center and adjoining Ritz Carlton Hotel with booths to entice investors and hawk their wares. Aramco, which sponsors golf tournaments around the world, set up a putting green at FII to attract conference visitors, while Saudia Group parked one of its Lilium electric vertical take-off and landing (eVTOL) jets outside the conference site.
While outlining the kingdom’s commitment to developing sustainable fuels, Saudi Energy Minister Prince Abdulaziz bin Salman said oil will remain a key driver of the economy. “We will monetize every molecule of energy this land has, period,” he said.
Throughout this week, The Circuit’s Jonathan Ferziger and Omnia Al Desoukie are 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
BONJOUR RABAT
French President Emmanuel Macron is working on relationship management in Morocco. King Mohammed VI welcomed the French leader on Monday for a state visit focused on strengthening trade and investment ties between the two countries, particularly in renewable energy and transportation. Macron and the king oversaw a signing ceremony for investments worth some $10.8 billion that included expanding Morocco’s high-speed rail line southward to Marrakech. Among the objectives of Macron’s visit is “to rebuild the exceptional partnership that links our two countries,” the French president’s office said in a statement.
đź’˛ Sovereign Circuit
Masdar: Mubadala-owned Masdar and EMSTEEL, the UAE’s largest publicly traded steel and building materials company, completed a pilot project to produce green steel through a hydrogen-powered extraction process.
International Holding Co.: Emirates Stallion Group, a subsidiary of Abu Dhabi-owned IHC, that operates in construction and real estate, reported a 69% increase in operational profit and a 125% jump in revenue.
Public Investment Fund: ACWA Power, the Saudi utility that is partially owned by the PIF, has reached a 50-megawatt threshold at its Redstone Concentrating Solar Power plant in South Africa and is set to reach full capacity soon.
Abu Dhabi Investment Authority: CYVN Holdings, an investment firm operated by ADIA, signed a preliminary deal with Bahrain’s Mumtalakat Holding Co. to take a stake in British luxury carmaker McLaren and assume full control of its automotive business, Bloomberg reports.
↪↩ Closing Circuit
đź’¸ Share Sale: The United Bank in Cairo plans a secondary offering of 30% of its shares on the Egyptian Exchange in the fourth quarter of this year, with CI Capital as bookrunner and legal advisory by Baker McKenzie.
⛽ Alliance Building: Wood, a consulting and engineering company, won an engineering services contract for Aramco’s Southern and Northern Areas gas increments project in Saudi Arabia which will help the company export more natural gas.
đź”’ Data Guardian: Armis Security, an Israeli cyber startup, raised $200 million in a Series D funding round co-led by General Catalyst and Alkeon Capital.
đź—Ł Circuit Chatter
🏦 About Face: Barclays is considering re-entering Saudi Arabia a decade after pulling out of the kingdom as it looks to capitalize on the country’s growing need to access capital markets, Bloomberg reports.
🚰 Water Deal: Saudi Engines Manufacturing Co. signed an agreement with Finland’s Kongsberg Maritime to localize the water jet propulsion industry in Saudi Arabia, promoting manufacturing, after-sales services, and distribution of Kongsberg products in the kingdom.
👩🏻‍🤝‍👩🏼 New Neighbor: Goldman Sachs opened a new office in Riyadh’s financial district, deepening its presence in the largest Middle East economy, Bloomberg reports.
🌍 Power Circuit
UAE President Sheikh Mohamed bin Zayedheld a meeting on Monday with visiting Vietnamese Prime Minister Pham Minh Chinh at the Qasr Al Watan palace in Abu Dhabi. The Vietnamese leader also met in Dubai with Sheikh Mohammed bin Rashid, the UAE Vice President and Prime Minister, and Ruler of Dubai.
Sheikh Hamdan bin Zayed Al Nahyan, Representative of the UAE’s Ruler and Chairman of the Environment Agency, chaired a board meeting of the agency focused on the role of artificial intelligence in achieving sustainable development goals.
Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, began an official visit to Singapore on Monday to discuss partnerships in artificial intelligence, education and renewable energy.
âžż On the Circuit
Hatem Al Mosa was named Director-General of the Petroleum Department in the emirate of Sharjah, appointed in a decree by Sheikh Dr. Sultan bin Mohammed Al Qasimi, Ruler of Sharjah.
Sir Nicholas Patten was appointed as a Judge of the Court of Appeal in the Abu Dhabi Global Market’s independent judicial system, succeeding Sir Peter Blanchard who announced his retirement.
Faisal Alibrahim, the Saudi Minister of Economy and Planning, met with Baker Hughes CEO Lorenzo Simonelli on the sidelines of the FII conference to discuss sustainable transformation in Saudi Arabia’s energy sector.
🎶 Culture Circuit
🎵 Gulf Jazz: Kuwaiti jazz group Boom.Diwan has been introducing the country’s traditional music sounds to audiences at the Womex 2024 festival in Manchester, U.K., which wound up last weekend. The band’s co-founder, Hamad Ben Hussain, tells The National about how he has integrated the barrel drum into his jazz compositions, hearkening back to musical traditions popular with Kuwait’s pearl-divers, who included his great-grandfather.
Photo of the day
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.