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Apollo’s Leon Black opens branch of his family office in Abu Dhabi

First it was Ray Dalio. Now Leon Black, the billionaire co-founder of Apollo Global Management, has opened a branch of his family office in Abu Dhabi.

Black’s new Middle East base, called Scimitar, is investing with a locally based team led by Asad Hussaini, an experienced Gulf real estate investor, Bloomberg reports.

“I’ve been coming here for more than 30 years and the growth and prosperity that has occurred under Abu Dhabi’s visionary leadership is truly remarkable,” Black said in a statement emailed to the news agency. “My family office wants to be a part of that transformation.”

Scimitar will be located in Abu Dhabi Global Market, the emirate’s financial free zone, which has become a hub for hedge funds, private equity firms and family offices.

Dalio, founder of Bridgewater Associates, moved to the ADGM last year while crypto-exchange founder Changpeng “CZ” Zhao, India’s Adani family and Russian steel magnate Vladimir Lisin also have offices registered there.

The Daily Circuit: Abu Dhabi’s newest family office + NMDC Energy’s IPO

Today in the Daily Circuit, we’re looking at NMDC Energy’s IPO, TAQA’s water recycling acquisition, the start of full operation at the Barakah nuclear plant and Primark’s plans for the Middle East. But first, Apollo’s Leon Black sets up shop in the UAE’s capital city.

First it was Ray Dalio. Now Leon Black, the billionaire co-founder of Apollo Global Management, has opened a branch of his family office in Abu Dhabi.

Black’s new Middle East base, called Scimitar, is investing with a locally based team led by Asad Hussaini, an experienced Gulf real estate investor, Bloomberg reports.

“I’ve been coming here for more than 30 years and the growth and prosperity that has occurred under Abu Dhabi’s visionary leadership is truly remarkable,” Black said in a statement emailed to the news agency. “My family office wants to be a part of that transformation.”

Scimitar will be located in Abu Dhabi Global Market, the emirate’s financial free zone, which has become a hub for hedge funds, private equity firms and family offices.

Dalio, founder of Bridgewater Associates, moved to the ADGM last year while crypto-exchange founder Changpeng “CZ” Zhao, India’s Adani family and Russian steel magnate Vladimir Lisin also have offices registered there.

📰 Developing Stories

TOP OFFERING

NMDC Energy’s IPO next week is shaping up to be the UAE’s biggest this year. The offering, expected to raise about $877 million, was oversubscribed by 31 times after its presentation to institutional investors. The Abu Dhabi-based company, a subsidiary of National Marine Dredging Co. will use the funds to expand regionally and globally, CEO Yasser Zaghloul said in a statement. “We are building a legacy that goes beyond profits,” he said. “It’s about sustainable growth, technological innovation and pushing the boundaries of what’s possible in the energy sector.”

MISSION ACCOMPLISHED

Capping 12 years since starting construction, the UAE has begun operating its Barakah nuclear power plant at full capacity and says the facility will generate 25% of the nation’s energy needs. UAE President Sheikh Mohamed bin Zayed hailed the milestone on Thursday in a post on X, calling it a “significant step on the journey toward net-zero” – the goal for totally offsetting greenhouse gas emissions in the atmosphere with sustainable means of energy production. With the last of Barakah’s four units now completed, the UAE has started to discuss construction of a second nuclear plant, Reuters reported in July. Saudi Arabia, the world’s No. 1 oil exporter, is also making plans to build a nuclear energy facility.

💲 Sovereign Circuit

Abu Dhabi Investment Authority: India’s ADIA-backed National Investment & Infrastructure Fund is seeking to raise $4 billion to support projects across the country, Bloomberg reports.

ADQ: Abu Dhabi National Energy Co., the ADQ-backed state company known as TAQA, agreed to pay $460 million to acquire Sustainable Water Solutions, which is responsible for wastewater treatment and water recycling in the UAE capital.

Mubadala: London law firm Linklaters said it advised Mubadala’s banks on the Abu Dhabi sovereign wealth fund’s July acquisition of a majority stake in Dutch maker of baby strollers Bugaboo.

↪↩ Closing Circuit

💸 Insurance Expansion: Dubai-based Sukoon announced it has acquired Chubb’s insurance portfolio in UAE. No price was disclosed.

⛽ Fuel Logistics: Agility Global, a Kuwait-controlled holding company based in Abu Dhabi, is exploring the sale of its fuel logistics subsidiary Tristar.

🛒 Retail Sale : Commercial Growth Development Co. plans to sell a 5.6% stake in Saudi Arabia’s BinDawood supermarkets., in a deal managed by Goldman Sachs Saudi Arabia and SNB Capital, Bloomberg reports.

🌐Data Acquisition: Salesforce, the world’s top maker of customer management software, bought out Israeli data protection startup Own Co. for $1.9 million in cash.
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🚨 Compliance Cop: Sedric, an Israeli fintech startup that uses artificial intelligence monitor compliance, raised $18.5 million in a Series A funding round led by Foundation Capital.

🗣 Circuit Chatter

🌍 Power Circuit

Russian President Vladimir Putin said on Thursday he was grateful to Saudi Arabia’s Crown Prince Mohammed bin Salman for playing an “active role” in organizing the swap that freed 24 prisoners including Wall Street Journal reporter Evan Gershkovich. Putin spoke Thursday at the Eastern Economic Forum in Vladivostok, Russia.

Sheikh Tahnoun bin Zayed, the UAE National Security Advisor and Chairman of sovereign wealth funds ADIA and ADQ, and Faisal Al Bannai, Chairperson of the EDGE Group, were included on Time’s 2024 list of the world’s 100 most influential people in AI.

Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai, met with the Chief Artificial Intelligence Officers of the UAE government, emphasizing the country’s role as a global hub for innovation and AI.

Sheikh Mansour bin Zayed, UAE Vice President and Deputy Prime Minister, chaired a Ministerial Development Council meeting at Qasr Al Watanpalace in Abu Dhabi. The council reviewed various government projects and policies, focusing on new initiatives in the media, education, and civil aviation sectors, WAM Reports.

➿ On the Circuit

Khalid al-Falih, Saudi Arabia’s Minister of Investment, said at a conference in Milan on Thursday that the kingdom sees Italy as a “partner of choice” in delivering green energy products such as hydrogen to Europe.

Ahmed Al Zaabi, Chairman of the Abu Dhabi Chamber of Commerce, was appointed Chairman of the Federation of UAE Chambers of Commerce and Industry. Abdullah Al Owais, Chairman of the Sharjah Chamber, was named Deputy Chairman of the Federation.

Mohammed El Kuwaiz, Chairman of Saudi Arabia’s Capital Market Authority, CMA’s Chairman says 24 Fintech, which took place between the 3-5 of September, solidifies Saudi Arabia’s position as a key player in the fintech sector.

Stephan Essig, is joining AlixPartners, the global consulting firm from Roland Berger. He brings expertise in restructuring, performance improvement and foreign direct investment.

🎶 Culture Circuit

🎞 Bollywood in UAE: The International Indian Film Academy Awards is returning to the Etihad arena in Abu Dhabi for the third consecutive year at the end of September.. Bollywood stars Siddhant Chaturvedi and Abhishek Banerjee will host a fashion night alongside South Indian actors Diya Menon and Sathish.

🖼️ Desert Tableau: Prince Albert II of Monaco visited an exhibition about Saudi Arabia’s AlUla desert city that was set up in the European principality, titled, “AlUla: A Tapestry of Creativity.”

📷 Photo of the Day

**The Royal Saudi Air Force’s aerobatic jets** release smoke as they perform maneuvers during the first Egypt International Airshow at Alamein International Airport. (Getty Images)

🗓️ Ahead on The Circuit

Sept. 9-11, Riyadh, Saudi Arabia. 10th Regional Forum of the International Union for Conservation of Nature. Representatives of governments, NGOs, and indigenous peoples’ organizations gather to discuss key biodiversity and conservation issues. Contact IUCN for location.

Sept. 10-12, Riyadh, Saudi Arabia: Global Artificial Intelligence Summit. A leading platform for advancing the global discussion on AI. King Abdulaziz International Conference Center in Riyadh.

Sept. 11-12, Dubai, UAE: Dubai AI & Web3 Festival. Bringing together the brightest minds to explore and expand the commercial possibilities of AI and Web3 technologies. Madinat Jumeirah.

Sept. 12, Dubai, UAE: U.S.-U.A.E. Space Relationship. U.S.-U.A.E. Business Council hosts a luncheon featuring astronaut Sultan Al Neyadi, Minister of Youth; Salem Al Marri, Director General of Mohammed Bin Rashid Space Centre; and U.S. Ambassador Martina Strong. Ritz Carlton Hotel, DIFC.

Sept. 15-19, Abu Dhabi: Loop Beyond Borders. Luxury travel fair brings together hotel owners, tour operators, travel agents and government officials. Saadiyat Rotana Resort & Villas and Anantara Qasr Al Sarab.

Sept. 16-18, Abu Dhabi, UAE: World Utilities Congress. Ministers, policymakers and industry leaders discuss strategies for driving growth and innovation across the power & water utilities value chain. ADNEC.

Sept. 24-25, Dubai, UAE: ACT Middle East Treasurers Summit. Corporate treasurers and financial professionals from across the region gather for policy discussions on issues ranging from cash management to sustainability. Grand Hyatt Dubai.

Sep. 30-Oct. 2, Dubai, UAE: Future Hospitality Summit. The global conference for leaders in the hospitality industry expands this year at a new location with dedicated space for ESG planning, country pavilions and a larger exhibition area. Madinat Jumeirah.

The Weekly Circuit: How Apollo, Blackstone and BlackRock are now wooing Gulf sovereigns

This week we’re looking at the tight squeeze on top-tier office space in Riyadh, ADIA’s growing interest in business deals with India, ADQ’s acquisition of a $1 billion stake in Sotheby’s and Saudi fashion designer Honayda Serafi’s breakout at Saks Fifth Avenue. But first, Wall Street firms are learning new strategies for tapping Gulf sovereign wealth.

A new level of assertiveness by sovereign wealth funds is changing the way some of the world’s biggest money managers are seeking investment from the Gulf.

Apollo Global Management, Blackstone, BlackRock and others are being urged and sometimes compelled to set up local offices in the Gulf, hire and train Gulf nationals, arrange investor gatherings and bring more expat professionals to live in the region’s financial capitals, Bloomberg reports.

Among the funds advocating for these upgrades are the Saudi Public Investment Fund, Abu Dhabi’s Mubadala and the Qatar Investment Authority.

With the total pool of Middle Eastern sovereign wealth fund assets estimated to reach $7.6 trillion by 2030, these funds want to co-invest, get a larger share of deal profits and strengthen their local economies that are largely built on oil through diversification, according to the news agency.

The largest sovereign wealth funds are focusing on fewer asset management firms, which in turn are doing away with their usual management and performance fees in order to secure commitments for their funds, Bloomberg reports.

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].

DESK SHORTAGE

Quality Saudi office space tough to find as firms flock to Riyadh

Al-Olaya in northern Riyadh at night. (Getty Images)

Saudi Arabia’s pressure on international companies to establish their regional headquarters in the kingdom has been so successful, it has eaten up virtually all the top commercial real estate in Riyadh, The Circuit’s Jonathan Ferziger reports.

No Vacancies: Prime and Grade A office spaces are fully occupied while Grade B occupancy has hit 99.4%, according to a survey by international property firm CRBE cited by Daily News Egypt.

Spillover Effect: Jeddah and the Eastern Province cities of Dammam and Khobar have also recorded rental growth and increased occupancy rates.

Click here to read the full story.

DELHI DEALS

ADIA ramps up investments in India, as UAE leverages ties

Indian Prime Minister Narendra Modi welcomed UAE President Sheikh Mohamed bin Zayed in Gujarat, India, during a state visit in January. (Photo: Getty Images)

From energy, infrastructure and pharmaceuticals to iconic snack brands and baby products, the Abu Dhabi Investment Authority has been pumping funds into India over the past six months, The Circuit reports.

Betting Billions: Across five deals with Indian businesses, the sovereign wealth fund invested $1 billion during the first half of 2024 as the UAE pushes to increase non-oil bilateral trade with its second-largest trading partner.

Special Connection: ADIA has been able to leverage relationships with India’s biggest conglomerates, including Mukesh Ambani’s Reliance Industries and Gautam Adani’s Adani Group, to grow its presence.

Click here to read the full story.

💲 Sovereign Circuit

Public Investment Fund: PIF-owned Riyadh Air awarded a $400 million contract to Saudi Ground Services Co. to oversee the new carrier’s operations at King Khalid International Airport. Saudi Investment Recycling Co., a subsidiary of the PIF, has expanded its export to the U.K. of recycled polyethylene terephthalate flakes, known as PET, following successful shipments to Spain earlier this year.

ADQ: The Abu Dhabi-based sovereign wealth fund signed an agreement to take a $1 billion minority stake in Sotheby’s alongside controlling shareholder Patrick Drahi. ADQ is in talks to buy midsize Turkish lender Odeabank from Lebanon’s Bank Audi SAL, Bloomberg reports.

Kuwait Investment Authority: A London court has ruled that the KIA can be sued in the U.K., enabling employees to launch legal action against the unit that has previously asserted diplomatic immunity, Bloomberg reports.

Abu Dhabi Investment Authority: ADIA-backed Indian eyecare retailer Lenskart Solutions has revived its sales operations and posted a 34% increase in FY2024 revenue, VC Circle reports.

Mubadala: Brazilian state-run oil firm Petrobras does not see the repurchase of the Mataripe refinery from Mubadala as a priority, CEO Magda Chambriard said during an earnings call on Friday. The firm is wrapping up its due diligence process and is yet to decide if reacquiring it would be advantageous, Chambriard said.

↪↩ Closing Circuit

📈 High Profile: Adnoc Drilling’s stock has been selected for inclusion in MSCI indexes as of August 30, giving it more visibility among global investors.

🛢️ Oil Finance: Bapco Energies, Bahrain’s state-owned oil company, secured a $500 million financing package from the U.S. Export-Import Bank, known as EXIM, to expand operations in southern Bahrain.

🕌 Sustainable Sukuk: Nasdaq Dubai has listed $500 million in sustainable trust certificates issued by Kuwait’s Warba Bank and compliant with Islamic law. The sukuk issuance, the first of its kind in Kuwait under Warba Bank’s sustainable finance framework, is part of a broader $2 billion trust certificate program.

🚙 Servicing EVs: Lucid Group, the Saudi-backed electric vehicle manufacturer based in California, opened its new Lucid Studio, an integrated retail, delivery, and service center for its flagship Lucid Air four-door sedan, in Jeddah.

💰 Startup Fund: Boston-based Flint Capital announced the closing of a $160 million venture capital fund to invest in early-stage Israeli and European startups in fields including cybersecurity, fintech, digital health and enterprise software.

🗣 Circuit Chatter

💎 Wealth Havens: The UAE, Singapore and other low-tax financial capitals are competing to attract the world’s super-rich with Europe’s traditional enclaves such as Switzerland and Monaco, the Financial Times reports.

🔭 Space Base: Saudi Arabia’s Royal Commission for AlUla and the California-based SETI Institute have agreed to collaborate on developing the AlUla Manara Observatory as a leading facility for space research and astro-tourism.

💸 Young Investors: Thndr, an Egyptian fintech startup whose mobile app aims to help young people across the MENA region invest in securities, said it plans to launch in Saudi Arabia by the end of the year after it obtains the necessary licensing.

🏡 Tight Market: Abu Dhabi’s increasing attractiveness for expat professionals has created high demand for rental housing and made finding affordable accommodations much more difficult, The National reports.

✈️ Building Ties: Israel Aerospace Industries is proceeding with a plan to establish a presence in Abu Dhabi, where it will convert Emirates aircraft into freighters, an indication of the UAE’s commitment to growing its ties with Israel even amid regional tension, Bloomberg reports.

🌍 Power Circuit

Saudi Crown Prince Mohammed Bin Salman chaired a Cabinet meeting on Tuesday, following a royal decree issued by King Salman last week allowing the Cabinet to convene in the absence of the king or crown prince. The king and the crown prince offered condolences to Sheikh Mishal Al-Sabah, Emir of Kuwait, following the death of Sheikh Salem Al-Sabah, 98, who was Chief of the National Guard for six decades.

Egyptian President Abdel-Fattah El-Sisi held a meeting with Prime Minister Moustafa Madbouly and Finance Minister Ahmed Kouchouk on Tuesday to discuss measures aimed at achieving tax stability and spurring outside investment. On Sunday, Madbouly led a government meeting to discuss plans for cultivating a mobile phone manufacturing industry in Egypt and expanding hotel room capacity as ways to attract foreign investment and boost economic growth.

Princess Reema Bandar Al-Saud, Saudi Arabia’s Ambassador to the U.S. and International Olympics Committee member, spoke out against bullying and harassment of female athletes, including Algerian boxer Imane Khelif, at the 2024 Paris Olympics. “I offer my full support to every female who has been subjected to unnecessary criticism in what should be their time to shine,” she said.

Sheikh Abdullah bin Zayed, UAE Deputy Prime Minister and Minister of Foreign Affairs, held a phone call with Constantinos Kombos, Minister of Foreign Affairs of Cyprus, on Sunday to discuss developments in the Middle East.

➿ On the Circuit

Hend Al Otaiba, the UAE Ambassador to France, held a lunch reception at the Emirates Olympic House in Paris to support the French Solidarity with Women Association, which is dedicated to combating domestic violence.

Saad Al-Sadhan was named acting CEO of Zain KSA following the death last week of Sultan Al-Deghaither, who led the Saudi mobile telecom company for six years.

Vinicius Jr., a star soccer player for Real Madrid, is considering a five-year contract worth $1.1 billion to play in the Saudi Pro League and also promote Saudi Arabia’s hosting of the 2034 World Cup, Reuters reports.

Juan Suarez, Group CEO of SUAREZ, told Arab News Saudi Arabia is a “pivotal market for silent luxury.” The high-end Spanish jewelry label has opened its first Middle East store in Jeddah’s Khayat Center.

James Craven, President of Live Nation Arabia, said the concert promoter’s deal to manage events in AlUla’s Maraya performing arts center will turn the mirrored building into one of the most unique and must-see venues in the region.”

🎶 Culture Circuit

🎮 Game On: Two video game players from Abu Dhabi are the only competitors from the Middle East to make it to the finals of the “Street Fighter 6” tournament at the Esports World Cup in Riyadh. Adel “Big Bird” Anouche and Amjad “Angrybird” Al Shalabi, will compete in the tournament starting tomorrow for the top prize of $300,000. The Esports World Cup, launched this year with the goal of putting Saudi Arabia on the international gaming map, runs until August 25.

👑 Royal Connection: A collection of the personal effects of Saudi royals has been put on display at a restaurant in Jeddah’s Al-Rawdah district. The treasures acquired by Umm Mohammed over 20 years of collecting include the late King Abdullah’s sunglasses and a travel bag that belonged to King Salman.

🏄 New Wave: An artificial wave park on Hudayriyat Island, which was designed in collaboration with world champion surfer Kelly Slater and features the world’s largest barrels and longest ride, will open to the public in October. Surf Abu Dhabi will have the capacity to host international surf competitions, a novel concept in a city known for its calm mangrove-fringed waters.

👗 Cosmic Couture: Luxury New York department store Saks Fifth Avenue has debuted its first Saudi woman designer, Honayda Serafi, founder of eponymous label Honayda. Her spring/summer 2024 Cosmos collection, now in store, is inspired by women in space exploration, features sky blues and bright pinks shimmering with sequins and crystals.

📷 Photo of the Week

**Michael Kindsgrab, the German Ambassador to Saudi Arabia**, pays a visit to the International Falcon Breeders Auction, organized by the Saudi Falcons Club at its headquarters in Malham, north of Riyadh. (Photo: Saudi Press Agency)

🗓️ Ahead on The Circuit

Aug. 12-15, Riyadh, Saudi Arabia: Saudi Food Expo. One of the kingdom’s largest trade shows for the food & beverage industry. Riyadh Front Exhibitions.

Aug. 24-25, Riyadh, Saudi Arabia. New Global Sports Conference. Uniting top players to showcase how esports can create new global opportunities. Four Seasons Hotel Riyadh.

Aug. 31-Sept. 8, Abu Dhabi, UAE. Abu Dhabi International Hunting and Equestrian Exhibition (ADIHEX). The premier event for hunting, falconry and equestrian enthusiasts in the Middle East. ADNEC.

Sept. 1-7, Dubai, UAE. Dubai Fashion Week. Promoting Dubai’s creativity and fashion businesses to a worldwide audience. Dubai Design District.

Sept. 10-11, Dubai, UAE: Global Vertical Farming Show 2024. Annual event brings together investors, growers, and executives in the vertical farming industry from around the world. Le Méridien Dubai Hotel & Conference Centre.

Sept. 15-19: Abu Dhabi. Loop Beyond Borders. Luxury travel fair brings together hotel owners, tour operators, travel agents and government officials. Saadiyat Rotana Resort & Villas and Anantara Qasr Al Sarab.

Sept. 24-25, Dubai, UAE: ACT Middle East Treasurers Summit. Corporate treasurers and financial professionals from across the region gather for policy discussions on issues ranging from cash management to sustainability. Grand Hyatt Dubai.