The Weekly Circuit
đ Hello from the Middle East!
In the Weekly Circuit today, weâre covering the Future Investment Initiative in Riyadh, the kingdomâs banner event for showcasing its economic transition. Elsewhere, weâre looking at the new Goldman Sachs office in the Saudi capital, expansion plans for Saudi Arabiaâs ROSHN homebuilding company and the London Stock Exchangeâs new index for Shariah-compliant securities.
Saudi Arabia is shifting gears, emphasizing its own needs for foreign capital over investing the kingdomâs wealth abroad.
Thatâs the message being delivered this week to some 7,100 participants from across the finance world at this yearâs eighth edition of the Future Investment Initiative.
Addressing a packed hall at the King Abdul Aziz International Conference Center in Riyadhâs diplomatic quarter, Saudi leaders put it simply:
âPeople used to come to us and ask for money,â said Yasir Al Rumayyan, Governor of the kingdomâs near trillion-dollar Public Investment Fund and Chairman of Saudi Aramco, the worldâs largest oil company. âWe are now seeing a shift from people wanting to take our money to people wanting to co-invest.â
Since its inception in 2017, the FII conference has been a key tool for outlining Saudi Crown Prince Muhammed bin Salmanâs 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 kingdomâs west coast, which has 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 include 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 kingdomâs 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.
Welcome to The Weekly Circuit. Read on for the stories, deals and players at the top of the news across the MENA business landscape. Please send comments and story tips to [email protected].
CIRCUIT INTERVIEW
ROSHN seeks to transform Saudi market with upscale housing
Central to Saudi Arabiaâs economic transformation is state-owned real estate developer ROSHN, which has started to seed greater metropolitan Riyadh and other urban areas with upscale residential communities aimed at both Saudi and expat professionals.
ROSHNâs Waleed Bawaked, Senior Director of Strategy and Planning, and Roger Fatovic, Executive Director of Program Management, outline the companyâs blueprint for growth in an interview with The Circuitâs Omnia Al Desoukie.|
ROSHN was established in 2020 by the Public Investment Fund and has raised $4.3 billion in the past two years.
đ˛ Sovereign Circuit
Masdar: Mubadala-owned Masdar and EMSTEEL, the UAEâs largest publicly traded steel and building materials company, completed a pilot project to produce green steel through a hydrogen-powered extraction process.
Public Investment Fund: ACWA Power, the Saudi utility backed 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.
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.
âŞâŠ Closing Circuit
đŞđŹ Bank-to-Bank: A consortium of 13 Egyptian banks, led by the Commercial International Bank and Banque Misr, will provide Telecom Egypt with a seven-year loan worth $369 million.
đ Islamic Index: The London Stock Exchangeâs FTSE Russell and the Abu Dhabi Securities Exchange launched the FTSE ADX 15 Islamic Index (FADXI15), to address growing demand for Shariah-compliant investment products.
đď¸ Baghdad Inn: Dubai-based Dex Squared Hospitality won a multimillion-dollar contract to develop the World Heart Hotel brand in Iraq and operate Baghdadâs first 5-star luxury hotel.
đ Rabat Deal: France’s Engie and Moroccoâs OCP Group signed a preliminary agreement to invest up to $18 billion in desalination, renewable energy, and green hydrogen projects, inking the deal during French President Emmanuel Macron’s visit to Rabat.
đ 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.
đŁ Circuit Chatter
đź New Neighbor: Goldman Sachs opened a new office in Riyadhâs financial district, deepening its presence in the largest Middle East economy.
đď¸ 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.
đ˛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.
đŤ No Objection: Australiaâs Qantas airline is open to Qatar Airwaysâ proposal to buy a 25% stake in Virgin Australia, CEO John Mullen told shareholders at the companyâs annual meeting, Reuters reports.
đ˘ď¸Asian Refining: Saudi Aramco wants to invest in Vietnamâs oil refining and petroleum distribution industries, Reuters reports, following a meeting in Riyadh between Vietnamese Prime Minister Pham Minh Chin and Aramco CEO Amin Nasser at FII.
đ Power Circuit
UAE President Sheikh Mohamed bin Zayed met in Abu Dhabi on Tuesday with Sergei Shoigu, Secretary of the Security Council of Russia, to discuss cooperative ventures between the two countries. He also held 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.
Jordanâs Crown Prince Hussein bin Abdullah was received for a meeting on Tuesday with Saudi Crown Prince Mohammed bin Salman on the sidelines of the FII conference.
Sheikh Hamdan bin Zayed Al Nahyan, Representative of the UAEâs 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.
Emir of Qatar Sheikh Tamim bin Hamad receivedSheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi and UAE National Security Adviser, on Sunday at the Emiri Diwan Palace in Doha.
âż 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 Marketâs 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 Arabiaâs energy sector.
Elon Musk made a surprise appearance at the FII conference in a video interview about the risks and opportunities of artificial intelligence, he had patched up a feud with the Saudi PIF.
Sir Tim Clark, President of Emirates Group, marked the airlineâs 39th birthday, by hailing its contribution to Dubaiâs economy and predicting that the upcoming move of its headquarters to Al Maktoum International Airport will generate more growth over the next decade.
đś Culture Circuit
Gulf Jazz: Kuwaiti jazz group Boom.Diwan has been introducing the countryâs traditional music sounds to audiences at the Womex 2024 festival in Manchester, U.K., which wound up last weekend. The bandâs 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 Kuwaitâs pearl divers, who included his great grandfather.
đˇ Photo of the Week
đď¸ Ahead on The Circuit
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 Dhabiâs 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.
Dec. 5-6, Abu Dhabi: Milken Institute Middle East and Africa Summit. Corporate executives, investors, government officials, and philanthropists gather to address the globeâs 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. Market experts and entrepreneurs from all over the world discuss the latest market trends. Al Maryah Island, ADGM Square.