Gulf wealth funds poised to profit from Anthropic, SpaceX IPOs

Gulf sovereign funds stand to reap windfalls from their early investments in Anthropic and SpaceX, as the world’s biggest AI companies race towards Wall Street debuts this year.

Anthropic filed draft paperwork for a public listing on Monday after raising $65 billion via a funding round last week that included Abu Dhabi-based MGX, which already has stakes in Sam Altman’s OpenAI and Elon Musk’s SpaceX, owner of xAI. Now estimated to be worth $965 billion, Anthropic has leapfrogged ChatGPT maker OpenAI in valuation and may beat it to the open market. 

Meanwhile, the combined 0.63% stake in SpaceX owned by Saudi billionaire Prince Alwaleed bin Talal’s Kingdom Holding and his private office could be worth as much as $10.5 billion when the rocket maker goes public at an estimated value of $1.75 trillion, Asharq Business reports.

Alwaleed’s businesses were jointly the second-largest investors in Twitter when Musk acquired the social network in 2022 and rebranded it as “X.” The stakes were converted to SpaceX shares when it took control of xAI in February this year.

Shares in Kingdom Holding, which is listed on Saudi Arabia’s Tadawul exchange, have risen more than 40% since last Tuesday in anticipation of a boost from the SpaceX IPO.

Abu Dhabi launches FIDA hub to shape future of global finance

Abu Dhabi unveiled a new financial services hub to help launch companies and assist them in managing regulatory obstacles that hamper growth.

Launched on Tuesday by the Abu Dhabi Investment Office and the Department of Economic Development, the platform will be known as FIDA – the FinTech, Insurance, Digital and Alternative Assets Cluster – and is projected to contribute some $15 billion to Abu Dhabi’s economy by 2045.

“By bringing investors, regulators, global institutions and technology innovators into an integrated cluster, Abu Dhabi is the preferred destination for those building digital assets, AI-powered insurance and breakthrough fintech platforms,” Badr Al-Olama, ADIO’s Director-General, said.

FIDA was introduced by Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of its Executive Council, amid the torrent of product announcements, conferences and cocktail parties during Abu Dhabi Finance Week.

During one of the events on Monday, Carlyle Group Chairman David Rubenstein was asked by UAE Investment Minister Mohamed Alsuwaidi, who is also CEO of sovereign wealth fund ADQ, how he assessed the UAE’s financial development, Khaleej Times reports. Rubenstein cited a music critic 30 years ago who said, “I’ve just seen the future of music, and its name is Bruce Springsteen.” Today, Rubenstein said, “I’ve seen the future of capitalism, and its name is Abu Dhabi.” 

Across town at the media-focused BRIDGE Summit, executives from Meta, Yango, Huawei and HeyGen headlined sessions on the use of AI in content, marketing and consumer products.  Actor Idris Elba said the conference was about cultural connectivity and empowering creators in a more inclusive global media ecosystem. “Let’s use this opportunity at the Summit to connect, form, create and distribute ideas,” he said. 

Jeff Zucker, CEO of RedBird IMI and RedBird Capital Partners, said journalism’s future will be driven by trusted individual voices rather than traditional media. “Institutions used to confer credibility upon the individual, but now it’s the other way around,” he said. “I think people are looking much more to individuals in this new creator economy, this new AI world.”

Amid bounty of Gulf IPOs, many firms struggle in trading debut

Companies in the Middle East have raised $13 billion from IPOs in 2024, making it the region’s second-best year since the pandemic.

Strong early returns from those share sales, however, are no longer guaranteed, Bloomberg reports.

The three largest Gulf IPOs of the year — Talabat, OQ Exploration, and Lulu Retail — had muted debuts despite strong demand.

Still, the desire of Gulf governments to diversify their economies and deepen capital markets virtually guarantee a continued rush of listings in 2025.

Abu Dhabi Global Market boosts company count by 32% as newcomers await entry

Abu Dhabi Global Market, the UAE capital’s financial Free Zone, boosted its roster of companies by 447 last year, a 32% increase, as it grew into one of the world’s largest financial districts.

Assets under management increased 35%, according to a statement released on Thursday. 

Among the 1,825 firms in the ADGM at the end of 2023, newcomers included Brevan Howard, Ardian, Goldman Sachs, Blackstone, SBI Capital, Asian Infrastructure Investment Bank, Apollo and Vibrant Capital.

Another 125 companies are in the process of seeking to set up shop in the ADGM.

Hong Kong’s Infini Capital announced that it received preliminary regulatory permission to establish an office and, upon final approval, would become the first Asian hedge fund in the ADGM.