The Daily Circuit: Etihad mulls IPO + Abu Dhabi-Dubai train line
👋 Hello from the Middle East!
In today’s Daily Circuit, we’re looking at the Saudi Public Investment Fund’s $4 billion bond sales, DP World’s effort to promote stablecoin payments, Qatar’s new bankruptcy law and the start of construction for the UAE’s Abu Dhabi-Dubai train line. But first, flying the investor-friendly skies of the Middle East.
The new year is shaping up as pivotal for the Middle East aviation industry as Gulf airlines look to raise money on regional stock markets and international carriers cautiously return to Israel and Lebanon.
After debating a share offering on and off for the past decade, Abu Dhabi-based Etihad is planning to talk to investors next week about the possible sale of a 20% stake through an IPO that could raise close to $1 billion, Reuters reports.
Etihad, which is owned by the ADQ sovereign wealth fund and competes with Dubai-based Emirates, would seek to arrange the share sale before the end of the first quarter with presentations aimed at both UAE and international investors, the news agency said.
In Saudi Arabia, the budget carrier flynas, which is owned by Prince Alwaleed Bin Talal’s Kingdom Holding investment company, is waiting for regulatory approval to move ahead with its own initial share offering, CEO Talal Al-Maiman told Al-Arabiya this week.
An IPO by either Etihad or flynas would be the first for a Gulf airline since Kuwait’s Jazeera Airways sold shares in 2008.
After making a splash last year with its designer uniforms and plush cabins, Saudi Arabia’s new national carrier Riyadh Air suffered a setback this week, announcing that it will be forced to push back its launch date to the third quarter of 2025 after delays to delivery of its fleet from Boeing.
On the other hand, ceasefires in Gaza and Lebanon are leading international airlines to restore their routes to Tel Aviv and Beirut, with Lufthansa, British Airways and Wizz Air announcing service will start again between February and April.
Emirates announced today it will resume flights from Dubai to both Beirut and Baghdad on Feb. 1 after suspending service because of the regional conflicts.
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📰 Developing Stories
DIGITAL SHIP
DP World is touting stablecoin as an alternative form of payment for its cross-border operations. DP World Group Chairman and CEO Sultan Ahmed bin Sulayem said in a statement released at the World Economic Forum in Davos that introducing the government-regulated digital payment method would address a critical gap in world trade and reaffirm the company’s commitment to innovation and leadership in global commerce. The shipping and logistics conglomerate is currently working with firms from Singapore, India and the UAE on the crypto project. Bin Sulayem said stablecoins would provide accessible, instant and transparent means of completing international transactions.
STEADY HANDS
The UAE economy will continue to grow at a healthy 4% in 2025, despite lower oil production caused by OPEC+ cuts, the International Monetary Fund said. Following a staff visit to the emirates, the IMF praised reform efforts and said fiscal and external surpluses remained “comfortable” and that that banks were “adequately capitalized” with domestic activity and demand for credit allowing them to be profitable despite high interest rates. The fund added that ongoing investments in infrastructure will help boost tourism and local activities, while trade deals, such as the recent Comprehensive Economic Partnership Agreements with Malaysia and other countries, will attract foreign direct investments to boost the overall economic landscape.
💲 Sovereign Circuit
Public Investment Fund: The Saudi sovereign wealth fund launched a $4 billion two-part bond sale this week, another step in the kingdom’s campaign to raise money for its ambitious construction plans and wean the economy off its dependence on oil, Arab News reports.
MGX: The Abu Dhabi-owned investment firm led by Sheikh Tahnoon bin Zayed has emerged as a key tool in the UAE’s quest for AI dominance, having joined OpenAI, SoftBank and Oracle in backing the projected $500 billion Stargate fund to support AI infrastructure in the U.S., Bloomberg reports.
Mubadala: The Abu Dhabi sovereign wealth fund posted a clip on Instagram from Davos that highlighted its partnerships with global firms and featured Charif Beainy, Head of Portfolio Strategy, and Pierre-Yves Mathonet, Head of Enterprise Risk Management.
↪↩ Closing Circuit
₿ Crypto Entry: Abu Dhabi-based crypto mining firm Phoenix Group signed an 80-megawatt power purchase agreement in Ethiopia, a key part of its effort to enter the African market, Reuters reports.
🚄 Train Tracks: The new high-speed train route between Abu Dhabi and Dubai will add $39 billion to the UAE economy over the next 50 years, Mohammed Al Shehhi, Chief Projects Officer at Etihad Rail, said on Thursday.
💸 Raising Funds: Saudi Arabia’s capital markets raised $274 billion over the past five years to support Vision 2030, according to a report by S&P Global.
🎁 Home Delivery: Package.ai, an Israeli startup that aims to improve communication between online retailers and consumers, raised $14 million in a Series A funding round led by Susquehanna Growth Equity.
🗣 Circuit Chatter
✍️ Sprucing Up: Qatar plans to introduce new laws on bankruptcy, public-private partnerships and commercial registration to make the country more attractive to foreign investors, Minister of Economy and Commerce Sheikh Faisal bin Thani told Reuters.
🏗️ Under Construction: Excavation at Saudi Arabia’s $500 billion Neom development is underway on the 100-mile-long city project called “The Line,” with the first three areas being built to house between 200,00 and 250,000 residents, Chief Development Officer Dennis Hickey said at a presentation in Davos.
🚢 Canal Recovery: Egypt is “cautiously optimistic” that a ceasefire between Israel and Hamas will eventually translate into a recovery in Suez Canal revenue, which fell at least 60% due to the war, Egyptian Minister of Foreign Trade and Investment Hassan El Khatib told Bloomberg in an interview at Davos.
🚆 Back to Life: Lebanon is working to revive its defunct railway system, which once connected Beirut to Tripoli, with plans to link it to Syria and Iraq as part of China’s Belt and Road Initiative.
🌍 Power Circuit
Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, and Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and UAE Deputy Prime Minister and Minister of Defense, witnessed the announcement of Etihad Rail’s high-speed rail project linking Abu Dhabi and Dubai at a ceremony at Al Faya Depot on Thursday. The pair also toured the UAE’s first passenger train fleet, unveiled on the sidelines of the high-speed rail announcement.
➿ On the Circuit
LeBron James, the NBA superstar, has a new electric motorboat racing venture in Saudi Arabia called “Team AlUla Controlled by LeBron James,” which will compete on Saturday in the E1 Jeddah GP.
Larry Fink, Chairman and CEO of BlackRock, and Adebayo Ogunlesi, Co-Founder, Chairman and CEO of Global Infrastructure Partners, met with Faisal Alibrahim, Saudi Arabia’s Minister of Economy and Planning, on the sidelines of Davos on Thursday.
Adel Al-Jubeir, Saudi Minister of State for Foreign Affairs and Climate Envoy, said that the kingdom is developing its nuclear program to utilize uranium reserves for energy production and has no intention of producing nuclear weapons.
🎶 Circuit Culture
🎤 No Doubt: U.S. popstar Gwen Stefani is the latest act to join the lineup for Abu Dhabi’s open-air concert series Saadiyat Nights. The “Just a Girl” singer will take the stage on Feb. 21, following acts including Boys II Men this Saturday, Egyptian pianist and composer Omar Khairat on Feb. 1 and U.S. singer Christina Aguilera on Feb. 15.
📷 Photo of the Day
📅 Circuit Calendar
Jan. 23-25, Riyadh. 2025 Drone Racing World Cup. The tournament will feature elite pilots from over 50 countries competing in races with speeds reaching 350 km/h. Winners will take home prizes exceeding $266,530. Boulevard City.
Jan. 27-30, Dubai. Arab Health. Premier healthcare event where attendees network with global leaders, discuss ground-breaking innovations and seek to shape the future of healthcare. Dubai World Trade Center.
Jan. 27-28, Riyadh. Private markets in Saudi Arabia and GCC. Exploring fundraising strategies, value creation and opportunities across private equity, credit and venture capital within Saudi Arabia and the broader Middle East. The Fairmont Hotel.
Jan. 27-29, Abu Dhabi. TII – Quantum Technology Symposium. The symposium celebrates the UNESCO International Year of Quantum Science and Technology, marking 100 years since the advent of quantum mechanics. Hilton Yas Island, Abu Dhabi.
Jan. 27-30, Miami, Fla. iConnection Miami Alts. Networking event for fund managers and finance industry professions. Miami Beach Convention Center.
Jan. 30, Abu Dhabi. MEVCA Investors Summit. The one-day conference is sponsored by the Middle East Venture Capital Association. ADGM.
Feb. 1-8, Abu Dhabi: Mubadala Abu Dhabi Open. Top women tennis stars compete in WTA 500 tournament. International Tennis Centre, Zayed Sports City.
Feb. 3-6, Dubai. Medlab Middle East 2025. The show attracts exhibitors whether global giants or emerging startups to discuss digital health solutions. Dubai World Trade Centre.
Feb. 4-5, Doha. Seatrade Maritime Qatar Conference and Exhibition. Conference brings industry experts, decision-makers, shipping companies and leaders in technology, energy, finance and investment. Sheraton Grand Doha Resort.
Feb. 9-12, Riyadh. Leap 2025. Riyadh’s tech event that brings in tech innovators and leading experts from around the world to discover new ideas, build new partnerships, and connect with inspiring mentors and investors. Riyadh Front Expo Centre.
Feb. 11-13, Dubai. World Government Summit 2025. Annual event brings in world leaders and business leaders from the region and outside to discuss the most pressing matters. Madinat Jumeirah.
Feb. 14-16, Munich Security Forum. Known as one of the world’s leading forums for debating international security policy. Hotel Bayerischer Hof.
Feb. 17-21, Abu Dhabi: IDEX 2025. Military contractors from around the world show their wares at one of the most prominent international defense exhibitions. ADNEC Center.
Feb. 17-21, Dubai. Gulf Food. In its 30th edition, the exhibition brings in many more companies to show their work on food and the industry’s use of technology. Dubai World Trade Center.
Feb. 18-19, Abu Dhabi. The Future of Asset Management Middle East. A two-day conference that gathers leading executives from top asset management companies in the Middle East region. The Ritz-Carlton, Grand Canal.
Feb. 22-23, Miami, Fla. FII Priority. Saudi Arabia’s Future Investment Initiative connects U.S. and Middle Eastern investors. Faena Hotel & Forum, Miami Beach.
Feb. 25, Dubai. Family Office Summit 2025. Global fund leaders managing $1 trillion in assets will meet under the theme, “Taking Money Out of Cash.” Ritz Carlton Jumeirah Beach