The Weekly Circuit
👋 Hello from the Middle East!
In the Weekly Circuit today, we’re looking at the drop in Aramco’s third-quarter profit, Mubadala Energy’s gas exploration deal in Indonesia, Saudi property developer ROSHN’s preparations to raise up to $666 million and the emirate of Sharjah’s efforts to attract small and medium-sized enterprises. But first, the energy industry tries to plot demand over the next decade at ADIPEC.
While keeping an eye on the shift in power in Washington, oil executives from around the world are staying focused on dealmaking at Abu Dhabi’s ADIPEC energy conference.
Among the agreements announced this week was a $920 million contract that ADNOC Onshore signed with China’s Jereh Oil and Gas Engineering to expand its AI-driven digitization program. enabling remote monitoring of over 2,000 wells across key Abu Dhabi oilfields.
ADNOC, the Abu Dhabi National Oil Co., also agreed to sell 1 million tons a year of liquefied natural gas to Germany’s SEFE for 15 years starting 2028, as it competes with Qatar in the LNG trade.
Kicking off the four-day event was Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Group CEO of ADNOC, Chairman of Masdar and COP28 President, who pointed to the growing power appetite of AI data centers.
“No single source of energy is going to be enough to meet this demand,” Al Jaber said on Monday in an address to the opening session at Abu Dhabi’s vast ADNEC hall. “We need to integrate renewable energy, nuclear energy and gas in the most cost and carbon-efficient way.”
On the eve of ADIPEC, Al Jaber hosted a gathering for industry leaders called ENACT Majlis that included Microsoft President Brad Smith, Mark Carney, the Chairman of Brookfield Asset Management who serves as U.N. Special Envoy for Climate Action and Finance; Shell CEO Wael Sawan, BP CEO Murray Auchincloss and Princess Beatrice, founder of the U.K. advisory organization BY-EQ.
Speaking at a panel discussion on Tuesday, Russell Hardy, CEO of Vitol, the world’s largest energy trader, talked about the difficulty in predicting oil demand amid geopolitical tensions and uncertainty about consumption growth rates in developing countries, The National reports.
“What we’re saying today is that peak oil demand is about 10 years away,” Hardy told the audience. “The unfortunate thing is, we said five years ago that peak oil demand is 10 years away.”
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
Sharjah thrives in the shadow of glittering Dubai and Abu Dhabi
Hugging the UAE’s Gulf coast east of Dubai and Abu Dhabi, the emirate of Sharjah is prospering as a lower-cost business center within easy proximity to its high-flying neighbors, The Circuit’s Omnia Al Desoukie reports.
While cultivating its own ecosystem of free zones and industry clusters, Sharjah has committed $8 billion to new strategic initiatives over the past two years, drawn in $2 billion in foreign direct investment and created more than 3,000 new jobs.
In an interview with The Circuit, Marwan Alichla, Director of Investment Promotion & Support at the emirate’s Invest in Sharjah agency, talks about new efforts to reach small and medium-sized enterprises, or SMEs. Among the sectors being targeted are advanced manufacturing, agritech, food security, healthcare, culture and tourism, and environmental sustainability.
💲 Sovereign Circuit
Mubadala: The Abu Dhabi sovereign wealth fund’s Mubadala Energy unit signed a preliminary agreement with Indonesia’s Perusahaan Listrik Negara to explore the development of natural gas discoveries.
Public Investment Fund: ROSHN, the Saudi property developer backed by the PIF, is in talks with international banks, including JP Morgan and Standard Chartered, to raise up to $666 million within the first quarter of 2025, Zawya reports.
Abu Dhabi Investment Authority: Cube Highways Trust, an ADIA-backed company that operates toll roads in India, said revenue for the first half of 2024 to 16,981 rupees ($201 million).
Kuwait Investment Authority: KIA Managing Director Ghanem Al-Ghaiman attended a round of meetings with international investment firms last week aimed at exploring new investment opportunities. Also present at the meetings in Riyadh during Saudi Arabia’s Future Investment Initiative conference was Noura Al-Fassam, Kuwait’s Finance Minister and Minister of State for Economic Affairs and Investment.
↪↩ Closing Circuit
🛢️ Profit Slump: Saudi Aramco said third-quarter profit declined on lower oil prices and weak refining margins. State-owned Aramco, the world’s largest oil company, said it posted a quarterly net profit of $27.6 billion, down from $32.58 billion a year earlier.|
🔋 Clean Energy: OQ Base Industries plans to expand its methanol plant in Oman’s Salalah Free Zone and explore blue and green ammonia production for maritime decarbonization, while preparing a 49% IPO on the Muscat Stock Exchange.
🏭 Drilling Down: Enersol, a joint venture between ADNOC Drilling and Alpha Dhabi, has agreed to acquire a 95% stake in the U.S.-based Deep Well Services for approximately $223 million.
🌀 Energy Gust: China-owned Gotion Power Morocco will run its new $800 million Moroccan factory with electricity generated from a 500-megawatt wind farm built by Saudi Arabia’s ACWA Power.
🔒 Cyber Sale: CrowdStrike, the Texas-based cybersecurity giant, is acquiring Adaptive Shield, an Israeli startup backed by Blackstone, for approximately $300 million, Calcalist reports.
🗣 Circuit Chatter
🚄 Monorail Loop: Saudi Arabia’s KAFD plans to build a 3.6 kilometer circular monorail using six driverless trains as part of an effort to upgrade public transportation in the kingdom’s capital.
₿ T-Bill Tokens: Abu Dhabi-based firms Realize and Neovision Wealth Management have launched a fund that will enable investors to buy blockchain assets connected to U.S. Treasury bonds, Reuters reports.
🎟️ Tickets Sale: The World Economic Forum has increased admission prices tenfold for some attendees at its annual meeting in Davos, Switzerland, raising the cost for second-tier access passes while expanding access options, the Financial Times reports.
🛢️ Exploration Tender: Libya is planning its first tender for energy exploration contracts since its 2011 civil war, Oil Minister Khalifa Abdul Sadeq said in an interview with Bloomberg.
📈 Trade Partners: Saudi Arabia and Turkey strengthened commercial ties by signing agreements at the Saudi-Turkish Business Forum in Istanbul, establishing collaborative ventures in agriculture, tourism, manufacturing and technology.
🌍 Power Circuit
UAE President Sheikh Mohamed bin Zayed offered congratulations to Donald Trump on winning the U.S. presidential election. “The UAE looks forward to continuing to work with our partners in the U.S. towards a future of opportunity, prosperity and stability for all,” he wrote on X.
Sheikh Tahnoon bin Zayed, Deputy Ruler of Abu Dhabi, National Security Advisor and Chairman of G42 and International Holding Co., held a meeting with Morgan Stanley Ted Pick in which they discussed developments within the financial markets and the global economy, according to a statement.
➿ On the Circuit
Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology, CEO of ADNOC and President of COP28, led the UAE delegation at the 53rd GCC Industrial Cooperation Committee meeting in Qatar, highlighting the UAE’s commitment to foster sustainable economic integration within the Gulf.
BlackRock CEO Larry Fink is pushing the world’s largest asset manager beyond stocks and bonds into the lucrative world of private equity and private credit, The Wall Street Journal reports.
Hazem Ben-Gacem, former co-CEO of Investcorp, is establishing a $1 billion capital fund, BlueFive Capital, to invest in financial services across the Global South, with fundraising discussions underway in the U.S., Asia, Europe, and the Middle East, Bloomberg reports.
Anwar Gargash, Senior Diplomatic Advisor to UAE President Sheikh Mohamed bin Zayed, said after participating in the UAE Government Annual Meetings that the country is “moving towards achieving its development ambitions.”
Saad Sherida Al Kaabi, Qatar’s Minister of State for Energy Affairs, held a meeting in Doha with Dukgeun Ahn, South Korea’s Minister of Trade, Industry, and Energy, to discuss expanding trade in liquified natural gas and other trade issues.
🎶 Culture Circuit
🎨 Something Bold: This year’s Abu Dhabi Art festival will be its largest yet, featuring 102 galleries from 31 countries. The fair, held at the Manarat Al Saadiyat from Nov. 20 to 24, will showcase a range of modern and contemporary art, including an exhibit spotlighting regional artists titled “Something Bold, Something New,” and another focused on Central Asia and the Caucuses called, “Silk Road: Drifting Identities.”
📷 Photo of the Week
🗓️ Ahead on The Circuit
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: 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.
Nov. 23-24, Dubai: Forbes Medical Tourism and Wellness Summit. Discussions will center on efforts to boost medical tourism in countries around the world. Jumeirah Beach Hotel.
Nov. 26-29, Dubai: Big5 Global. The event gathers participants from the technology and construction industries. Dubai World Trade Centre.
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. Market experts and entrepreneurs from all over the world discuss the latest market trends. Al Maryah Island, ADGM Square.
