Mubadala assets climb to $327 billion amid AI, credit push

Mubadala Investment Co., Abu Dhabi’s second-largest sovereign wealth fund, grew more than 9% last year, with assets under management reaching $327 billion.

In a 2024 earnings statement released today, Mubadala cited its co-founding of the MGX tech fund specializing in AI investments as a highlight of the year’s activities.

Also notable were its establishment of satellite company Space 42 through a merger, co-investments in real estate with Aldar Properties, and private credit lending in partnership with Apollo, Goldman Sachs, Carlyle and other U.S. money managers.

“Our portfolio has been constructed to navigate market cycles and scale future-focused sectors – from AI and clean energy to life sciences, semiconductors, and advanced manufacturing,” Group CEO Khaldoon Al Mubarak said.

The Daily Circuit: OPEC+ ponders Trump tariffs + Apollo’s latest Aldar investment

👋 Hello from the Middle East!

In today’s Daily Circuit, we’re looking at Apollo’s $500 million investment in Aldar, a planned IPO for the Saudi Public Investment Fund’s construction unit building in Mecca, M42’s organ donation agreement with Bahrain’s Royal Medical Services and designers from around the world showing their wares at Dubai Fashion Week. But first, caution in the oil market surrounding the barrage of Trump tariffs.

Energy ministers from OPEC+ meet today as oil and gascustomers around the world gird for the expected fallout from the U.S. trade war taking shape with Canada, Mexico and China.

Oil prices rose today after U.S. President Donald Trump imposed tariffs on the three countries, sparked by fears that the feuds would disrupt supplies. Brent crude futures rose 78 cents, or 1.03%, to $76.45 a barrel at 1:33 p.m. UAE time after touching a high of $77.34. U.S. West Texas Intermediate crude futures were up $1.36, or 1.88%, to $73.89.

The OPEC+ members, led by Saudi Arabia and Russia, will meet online for a monthly review at which they’re expected to leave production and supply plans unchanged through March and gradually lift the current quotas that were designed to keep prices from falling, Reutersreports.

While Trump has urged the petroleum producers bloc to cut prices, several OPEC+ delegates have said they won’t adjust the plan for now since crude markets remain fragile amid faltering demand in China and plentiful supply across the Americas, Bloomberg reports.

Goldman Sachs issued a report on Sunday that suggests the Trump tariffs are likely to have a limited near-term impact on global oil and gas prices.

“Potential tariff-driven decline in U.S. natural gas imports from Canada is too small to significantly raise U.S. natural gas prices,” the investment bank said.

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📷 Photo of the Day

The Weekly Circuit: Investopia kicks off in Abu Dhabi + Apollo’s Rowan boosts UAE, Singapore

👋 Hello from the Middle East! 

This week we’re looking at Qatar’s 10 billion euro investment in France, Apollo CEO Marc Rowan’s guidance on where to find the best money managers, Ukraine President Volodymyr Zelensky’s palace meeting in Riyadh and Dubai Holdings’ interest in Orient Express-branded superyachts. But first, Investopia opens in Abu Dhabi.

Kicking off the UAE’s annual Investopia conference this week, Mubadala chief Khaldoon Al Mubarak pointed to the more active stance that the country’s sovereign wealth funds are taking in the global investment landscape, The Circuit’s Kelsey Warner reports from Abu Dhabi’s Saadiyat Island.

“Sovereign funds now have the responsibility and opportunity to go from asset allocators to enablers of global progress,” the Managing Director and Group CEO of Abu Dhabi’s second-largest sovereign wealth fund said on Wednesday. Al Mubarak noted that the emirate’s sovereign funds — Mubadala, Abu Dhabi Investment Authority and ADQ — are among the world’s top 10 most active sovereign investors in 2023, which he said, “speaks to the momentum that is building over here.”

Mubadala plans to invest more in the U.S. and has increased its long-term allocations for Asia “in line with megatrends and demographics, including “Japan, China, Korea and, of course, India,” Al Mubarak said.

Thousands of investors have flocked to the third edition of Investopia, a marquee event for the government’s “Projects of the 50” initiative, first announced in 2021. The UAE aims to build the world’s most innovative economy in collaboration with the global investment community. Funds that manage a total of more than $500 billion in assets are attending, according to organizers.

Meanwhile, another of Abu Dhabi’s sovereign wealth funds, ADQ, is leading a consortium that has agreed to invest $35 billion in Ras al-Hekma on Egypt’s northern Mediterranean shore to build a financial and tourism center, which may help resolve a long-stalled agreement on a $10 billion loan package with the International Monetary Fund. The deal prompted Goldman Sachs to suggest that the injection of cash should end Egypt’s foreign exchange crisis.

Doha’s tech scene has been in the spotlight this week as a Middle East edition of Web Summit — touted as the world’s biggest technology conference — is underway in Qatar’s capital city. More than 1,100 startups from 80 countries are attending the four-day event as the Qatari government joins its neighbors in trying to lure early-stage tech companies to set up shop in the country.

On a state visit to Paris, Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani pledged to invest 10 billion euros ($10.9 billion) in French startups and tech funds between now and 2030. Feted by French President Emmanuel Macron with a dinner on Tuesday night at the Élysée Palace, the Emir hailed the longstanding relationship between the two countries and said his visit would deepen their strategic partnership. The Qatari investments will cover a range of industries, including energy, semiconductors, aerospace, artificial intelligence, health, hospitality and culture, Macron’s office 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].

MIAMI AI

FII summit debates risks amid investor zeal for AI tech

In a week that saw Nvidia’s shares rise to dizzying heights, pumping up stock markets around the world, it didn’t take long for the subject of artificial intelligence to anchor itself in the center of debate at Saudi Arabia’s Miami investor conference, The Circuit’s Jonathan H. Ferziger reports.

The place to be: Yasir Al-Rumayyan, Governor of the Public Investment Fund, which sponsored the Future Investment Initiative’s two-day Priority Summit, pitched the kingdom as a natural hub for developing AI technology.

Energy intensive: “AI would consume a lot of energy, and we are the global leader when it comes to fossil fuel energy and when it comes to renewable energy,” he said. “So I think we are very well positioned to be an AI hub.”

Click here for the full story.

BOARD BOT

Abu Dhabi’s IHC appoints AI bot to its Board of Directors

Aiden Insight, an “artificial intelligence observer” was developed by G42 in collaboration with Microsoft, The Circuit’s Jonathan H. Ferziger reports.

New recruit: International Holding Company, the Abu Dhabi-owned industrial conglomerate, announced that it has created a new post on its Board of Directors for an “Artificial Intelligence Observer.”

Smart hire: The virtual entity was developed by G42, the holding company’s fast-growing AI firm, in collaboration with Microsoft, and given the name “Aiden Insight.” It will use its abilities “to continuously process and instantly analyze decades of business data, financial information, market trends, and global economic indicators,” the company said.

Click here for the full story.

FOLLOW THE MONEY

Apollo’s Rowan boosts UAE and Singapore

Apollo Global Management CEO Marc Rowan said the world’s best investors now operate in places such as the UAE and Singapore, criticizing American funds for being too focused on benchmarks, The Circuit’s Kelsey Warner reports.

Regional shift: Apollo and other private equity firms are increasingly turning to the Middle East and Asia as deal-making activity dwindled last year due to higher interest rates. 

A new perspective: At the start of his career, Rowan “thought the single best investors in the world were in the U.S.,” he said in a nearly hour-long interview on Tuesday with David Rubenstein at the Economic Club of Washington, D.C. “That’s no longer the case.”

Click here for the full story.

Public Investment Fund: ESL FACEIT, the international esports organization owned by Saudi Arabia’s PIF, is cutting hundreds of jobs that add up to 15% of the staff, Bloomberg reports. Catch a five-minute “best of” recap of the PIF-sponsored FII Priority meeting in Miami last week. The PIF has hired Goldman Sachs, HSBC and Standard Chartered as joint global coordinators to arrange investor meetings starting on Monday to sell Islamic sukuk bonds, its second offering this year, Reuters reports. The fund is also working with Morgan Stanley to acquire a stake in the Binladin Group, Saudi Arabia’s largest construction company, Bloomberg reports.

Mubadala: The Abu Dhabi sovereign wealth fund’s Mubadala Energy unit is working on expanding production capacity at the Pegaga gas field off the coast of Malaysia, Reuters reports. Goldman Sachs’ asset management unit agreed with Mubadala on a $1 billion deal to invest together in India and other markets in the Asia-Pacific region. Mubadala is reportedly leading a $133 million funding round for Warburg Pincus-backed Avanse Financial Services, as the Indian education loans group prepares to go public in 2024. The investment fund has partnered with primary investors and private equity firms, including Stone Point Capital and Clayton and Dubilier & Ross, to purchase the remaining stake in an insurance brokerage business from US-based Truist Financial Corporation. Zamp, a Mubadala-backed food retailer that operates Burger King in Brazil, is in talks to take over the Starbucks franchise from its current owner that is in bankruptcy proceedings.

Dubai Holding: French hotel group Accor is in talks with the Dubai conglomerate to fund the $867 million conversion of two Orient Express-branded superyachts for the luxury travel market, the Financial Times reports.

ADQ: Egypt’s dollar-denominated bonds rose by record margins and its currency strengthened on the black market as the $35 billion investment deal it signed with the UAE’s ADQ sovereign wealth fund provided hope that the government will manage to weather its financial crisis.

Oman Investment Authority: Oman’s sovereign wealth fund appointed Lazard Inc. to advise on a potential IPO of the state-owned Oman Electricity Transmission Co., Bloomberg reports.

Qatar Investment Authority: The QIA is creating a $1 billion fund of funds to invest in tech startups through international and regional venture capital funds. The Egyptian government has received offers from both the QIA and the Saudi Public Investment Fund to develop a coastal stretch in the resort city of Sharm el-Sheikh. Ascend Elements, a Westborough, Mass.-based developer of sustainable battery materials for electric vehicles backed by the QIA, raised $162 million in new equity investments to build a new 1 million square foot sustainable lithium-ion battery plant in Kentucky.

🛢️ Voluntary Cuts: OPEC+ will consider allowing member-countries to extend voluntary oil output cuts into the second quarter and, possibly until the end of the year, Reuters reports.

🪖 Defense Demand: UAE defense conglomerate EDGE is anticipating greater demand for its ammunition, combat vehicles, drones and other weapons amid a rise in geopolitical tensions, The National reports.

🧳 Visitors Welcome: Saudi Arabia welcomed 27.5 million international tourists last year, marking a 65% increase over visitors in 2022.

💰 Evaluating Ventures: Saudi Arabia’s CoreVision investment fund said it will acquire VeFund, a regional platform for evaluating new business ventures, for an undisclosed price.

⛏️ Gold Rush: Saudi mining company Ma’aden plans to increase gold exploration after CEO Bob Wilt said a find in the Mecca region could set off “the world’s next gold rush.”

⚓ Sustainable Ports: UAE-based DP World and Masdar renewable energy company agreed to set up solar and energy storage systems in the region’s seaports, starting with Saudi Arabia, Senegal, and Egypt.

👟 Just Doing It: Adidas plans to open 100 stores in Saudi Arabia by next year and sign commercial partnerships with the Saudi Arabia Football Federation and Saudi Pro League.

🚢 Free Trade: The UAE concluded terms with Kenya on a Comprehensive Economic Partnership Agreement, its third with an African country after Mauritius and the Republic of the Congo.

💵 Clean Bill: The UAE’s removal from the Financial Action Task Force’s “gray list” of states too tolerant of money laundering is likely to raise confidence in the country and lead to more foreign investment, analysts said.

🚙 Driving Mideast: Chinese electric vehicle company XPENG announced plans to expand to the Middle East, with a partnership deal with Ali&Sons for the UAE market.

⛽ Supply Chain: Saudi Aramco said it signed 40 new procurement agreements with suppliers in the kingdom worth $6 billion as part of an effort to strengthen its local supply chain ecosystem.

💰 Strong Appetite: Investors put $40 billion worth of orders for Saudi Arabia’s Modern Mills for Food Products Co.’s IPO amid healthy demand for shares in Middle East-listed companies. 

🛒 UK Buyout: Private equity group Carlyle and Abu Dhabi investment firm IMI agreed on a funding package to acquire Liverpool-based Very Group, the retail and financial services group owned by the UK’s billionaire Barclay family. Carlyle will pay $108 million and IMI $51 million.

🧭 Underground Mapping: Exodigo, an Israeli startup that uses 3D imaging and AI to create underground maps, closed a $105 million investment round led by Greenfield Partners and Zeev Ventures.

⚗️ Chemical Uncertainty: Saudi Arabia’s largest chemical maker, SABIC, posted its first annual loss in more than 25 years, warning of “considerable uncertainty” for the industry.

📱 Connecting MENA: Qatar’s Ooredoo Group pledged to spend $1.1 billion between now and 2026 to help improve mobile coverage and connectivity in developing markets, including Algeria, Tunisia, Iraq, the Maldives and the Palestinian territories.

🚗 Parking Lots: The Dubai government will sell a 25% stake in Parkin, the company set up to manage municipal parking operations in an IPO planned for March 21.

🩺 Hospital Bonds: Middle East Healthcare Co., which runs Saudi Arabia’s German Hospital, concluded its $267 million offering of Islamic sukuk bonds that will be traded on the Tadawul Exchange in Riyadh.

💰 Venture Platform: Dubai’s Cotu Ventures said it will launch a $54 million fund to invest in early stage startups across the Middle East and North Africa. Cotu’s limited partners include Mubadala, Lunate, the Dubai Future District Fund and Arab Bank.

🇧🇭 Property Pact: Abu Dhabi’s Eagle Hills International signed a $4 billion agreement with Bahrain’s state-owned Edamah to establish a new real estate development company, Binaa al-Bahrain.

⛽ Fuel Venture: Three Egyptian firms are considering the launch of a $380 million joint venture to produce sustainable jet fuel. The investors are Egyptian Petrochemicals Holding Co., Alexandria National Refining & Petrochemicals Co. and a third private firm.

🎨 Creative Class: Art Dubai returns for its 17th year this weekend. One of the biggest international art fairs in the region, the event at Madinat Jumeirah features 120 art galleries displaying works from more than 40 countries.

😂 Just for Laughs: Aziz Ansari and Tom Segura will headline the inaugural Abu Dhabi Comedy Week, to be held from May 18-26 at Etihad Arena. Tickets go on sale tomorrow.

🏎️ Hot Wheels: Some of the world’s priciest automobiles, including a $3.5 million McLaren Speedtail, will be up for sale in a March 9 supercar auction at RM Sotheby’s in Dubai.
🌴 Modern R&R: Saudi Arabia’s NEOM mega-project announced plans for a new wellness retreat on the mountainous Gulf of Aqaba coast. Elanan will have 80 rooms and suites and aims to provide a modern take on relaxation, with subtle use of technology. The new project joins eight other new resorts from NEOM on the Gulf of Aqaba.

Feb. 26-29, Doha, Qatar: Web Summit Qatar. A Middle East edition of the technology crowd mega-event, gathering investors, entrepreneurs and business leaders. Doha Exhibition and Convention Centre. 

Feb. 28-29, Abu Dhabi, UAE: Investopia. A gathering of investors hosted by SALT and Investopia, an investment platform launched by the UAE Ministry of Economy and backed by Mubadala and the Department of Economic Development. St. Regis Saadiyat. 

Feb. 29-March 2, Sakhir, Bahrain: Formula 1 Gulf Air Bahrain Grand Prix. Bahrain International Circuit. 

March 1, Abu Dhabi, UAE: Abu Dhabi Family Office Summit. One of the largest meetings in the region for family office leaders and investors. Saadiyat Rotana.  

March 4-7, Riyadh, Saudi Arabia: LEAP. A global technology conference for developers, startups, investors, C-suite and media. King Abdul Aziz International Conference Center.

March 5-6, Doha, Qatar: International LNG Forum. Gathering of industry leaders and key stakeholders to discuss the future of gas in a key export market. InterContinental Doha Beach.

March 5-6, Jerusalem, Israel. Life Science & Health-Tech Week in Israel. Healthtech company executives, investors, and government leaders join the annual conference. International Conference Center.

March 7, Jeddah, Saudi Arabia: Bloomberg Power Players Jeddah. Investor conference focusing on the impact of money on professional sports. Jeddah Yacht Club.

March 7-9, Jeddah, Saudi Arabia: Formula 1 STC Saudi Arabian Grand Prix. The Jeddah Corniche Circuit.