The Weekly Circuit
👋 Hello from the Middle East!
In the Weekly Circuit today, we’re looking at the Saudi Public Investment Fund’s $1 trillion target for 2025, Bill Gates’ crowded schedule in Abu Dhabi, Talabat’s ever-growing IPO and Morocco’s plan to legalize cryptocurrencies. But first, NEOM is being pitched as a “generational investment.”
Saudi Arabia is inviting the world to invest in its sprawling trillion-dollar NEOM megaproject and advising potential backers to ignore recent bumps along the road.
“The flywheel is starting and it will gain speed as we go forward, as some of the foundational assets come to the market,” Saudi Investment Minister Khalid Al-Falih told Reuters this week on the sidelines of the World Investment Conference in Riyadh.
The development in western Saudi Arabia – which features ski slopes, beach resorts and a 100-mile long vertical city – is the centerpiece of Crown Prince Mohammed bin Salman’s Vision 2030 plan to wean the economy off dependence on the kingdom’s oil revenues. The Public Investment Fund, which owns NEOM, announced that the project’s longtime CEO stepped down this month while it has had to delay some of the target completion dates.
Al-Falih says to be patient. “NEOM was not meant to be a two-year investable opportunity,” he told the news agency. “If anybody expected NEOM to be a foreign investment in two, three or five years, then they have gotten (it) wrong – it’s a generational investment.”
Asked if most of the spending on NEOM will continue to come from the PIF, Al-Falih said funds from abroad are expected to increase.
“I think foreign investors are starting to come to NEOM; they’re starting to channel capital,” he said. “Some of the projects that the PIF will be doing will be financed through global capital pools, through some alternative and private capital. That’s taking place as we speak.”
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].
TECH EVANGELIST
Bill Gates talks up AI prospects in round of Abu Dhabi appearances
Bill Gates crisscrossed Abu Dhabi last week as an evangelist for the many applications of AI technology, The Circuit’s Jonathan Ferziger reports.
The Microsoft founder and philanthropist came to the UAE’s capital to participate in an event showcasing the benefits artificial intelligence can offer farmers and agricultural industries, particularly in Africa.
Gates also met with Sheikh Tahnoon bin Zayed, the UAE National Security Adviser and Chairman of G42, the Abu Dhabi-based AI developer in which Microsoft invested $1.5 billion.
UNLEASHING BITCOIN
Morocco to lift seven-year ban on cryptocurrencies
Morocco, which has banned cryptocurrencies since 2017, is preparing a law to permit their use, The Circuit’s Jonathan Ferziger reports.
“Like many countries around the world, we are exploring to what extent this new form of currency could contribute to achieving certain public policy objectives, particularly in terms of financial inclusion,” Central Bank Governor Jouahri Abdellatif said on Tuesday at the Regional High-Level Symposium on Financial Stability in Rabat.
Bank Al Maghrib, as the Central Bank is known, is also exploring the possibility of issuing its own digital currency, he said. Moroccan law forbids cryptocurrencies, but their broad use is well-known as citizens find ways to bypass the restrictions.
Click here to read the full interview.
💲 Sovereign Circuit
Public Investment Fund: The Saudi sovereign wealth fund reported assets of $924 billion and said it aims to break the $1 trillion mark by the end of 2025.
Mubadala: The Abu Dhabi sovereign wealth fund participated in a $523 million financing round for Belgian business software maker Odoo.
The Kuwait Fund for Arab Economic Development: The fund signed a $33 million loan agreement with Tunisia’s government to finance its $174 million phosphate railway project.
Qatar Investment Authority: The sovereign wealth fund made an investment in a fund managed by Chinese private equity firm Trustar Capital, that will make it an anchor investor in McDonald’s China.
↪↩ Closing Circuit
🛵 Mobile Food: Delivery Hero increased the size of its Talabat subsidiary’s IPO to as much as $2 billion, setting the deal up to be the UAE’s biggest listing of the year, Bloomberg reports.
🇨🇳 Chinese Bonds: Nasdaq Dubai announced the listing of two bonds from China’s Ministry of Finance totaling $2 billion, which it said underlines Dubai’s role as a gateway for capital flows between Asia and the Middle East.
🛏️ Pyramids Hotel: Abu Dhabi Tourism Investment Co. is teaming up with Paris-based Accor to manage Egypt’s new $100 million Sofitel Legend Pyramids Hotel in Giza, which is scheduled to break ground next month and open in 2027, Zawya reports.
🏭 Helter Smelter: Vedanta Resources, the largest mining company in India, is planning to invest $2 billion to buildcopper-processing plants in Saudi Arabia.
🗣 Circuit Chatter
💼 Ultra-Wealthy: Rothschild & Co. said it has launched a wealth management office in Dubai to boost its offering to local clients as well as to ultra-high-net-worth individuals in the region, Reuters reports.
☢️ Nuclear Leader: The UAE, which has become one of the largest nuclear power producers, aims to lead global nuclear energy development with its reactors supplying nearly a quarter of the nation’s electricity, the Emirates Nuclear Energy Corp. said.
🌍 Culture District: Saudi Arabia’s Diriyah Co. unveiled plans on Thursday for its Qurain Cultural District in northern Riyadh, which will include museums, schools, theaters and a cinema alongside residential and office buildings.
🛢️ Resisting Transition: Saudi Arabia, Russia and several other oil-producing nations ensured that a U.N. General Assembly resolution on climate change steered clear of a call to transition away from fossil fuels, The New York Times reports.
💱 Finance Adviser: Sylndr, an Egypt-based online platform for used cars, is being advised on its asset-backed financing facility by EFG Hermes.
🌍 Power Circuit
UAE President Sheikh Mohammed bin Zayed met with Philippines President Ferdinand Marcos Jr. in Abu Dhabi on Tuesday during an official visit in which they discussed trade and sustainable energy cooperation.
Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, made an official visit to Bahrain on Tuesday at the invitation of Bahrain’s Crown Prince Salman bin Hamad, who is also Prime Minister.
King Hamad of Bahrain awarded the King Hamad Order of the Renaissance to Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi, who traveled to Manama to discuss steps for strengthening economic ties between the UAE and Bahrain.
Sheikh Mohammed bin Rashid, the UAE Vice President and Ruler of Dubai, visited Dubai International Airport to take a tour of Emirates airline’s new Airbus A350, joined by Sheikh Ahmed bin Mohammed, Second Deputy Ruler of Dubai; Sheikh Ahmed bin Saeed, President of Dubai Civil Aviation Authority, Emirates Chairman and CEO, and Chairman of Dubai Airport and Sheikh Mansoor bin Mohammed, Chairman of the Dubai Ports and Borders Security Council.
➿ On the Circuit
Naguib Sawiris, the billionaire Chairman of Egypt’s Orascom Investments, launched Moniify, a new digital business and finance news platform in Dubai. Michael Peters, the former CEO of Euronews, was hired as CEO.
Selim Kervanci was appointed as CEO of HSBC’s Middle East division. He is currently HSBC’s top executive in Turkey.
Tim Clark, President of Emirates airline, hinted in an interview with Zawya that the Dubai-based carrier will order more Airbus A350 aircraft as it enters an “expansionist period.”
Peter Knez, joined UAE’s digital assets hedge fund Triton Liquid as an advisor and is set to become a board member of the venture, which is based in the Abu Dhabi Global Market.
Philip Philippides was appointed CEO of Mashreq Capital, the asset management unit of Dubai-based Mashreq Bank. He previously worked at Morgan Stanley, BlackRock/iShares and MSCI.
🎶 Culture Circuit
👑 Royal Gems: Britain’s Prince William and Oman’s Crown Prince Theyazin bin Haitham appeared at an event in London on Monday to promote the Royal Geographical Society’s “Jewel of Arabia” expedition, which was inspired by British explorer Bertram Thomas’s’ 1928 trek along the Omani coast, The National reports. The project aims to raise awareness about efforts to preserve the sultanate’s natural heritage. Prince Theyazin invited Prince William to join the project because of his passion for conservation and his knowledge about Oman’s environmental protection efforts gained from a trip five years ago.
📷 Photo of the Week
🗓️ Ahead on The Circuit
Nov. 26-28, Abu Dhabi: Global Media Congress. The event brings together a range of media groups to discuss the latest trends in publishing and media.
Nov. 26-29, Dubai: Big5 Global. The event gathers participants who are interested in technology and construction. Dubai World Trade Centre.
Dec. 4-6, Abu Dhabi: Abu Dhabi Business Week. Participants will hear from business pioneers who built billion-dollar enterprises, developed global brands and led significant campaigns. 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. 5-14, Jeddah, Saudi Arabia: Red Sea Film Festival. Directors from Saudi Arabia and abroad will premiere feature films at the 10-day event. Al-Balad.
Dec. 6-8, Manama: IISS Manama Dialogue. A forum that brings in ministers, policymakers and decision-makers to talk about the Middle East’s pressing foreign policy, defense and security challenges. The Ritz Carlton Hotel.
Dec. 7-8, Doha, Qatar: Doha Forum. Annual policy conference this year focuses on technological innovation. Doha Sheraton.
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.
Dec. 10-11, Abu Dhabi. Abu Dhabi Space Debate. The platform brings visionary leaders from the industry, government and academia to address the space sector’s most pressing challenges and opportunities. Erth Hotel.
Dec. 13-15, Abu Dhabi: World Policy Conference. The conference brings together top-level decision-makers, academics and opinion leaders. Park Hyatt Saadiyat Island.
