The Daily Circuit: Neom woes build up + Derayah jumps 30%
👋 Hello from the Middle East!
In the Daily Circuit today, we’re looking at the 30% jump in Derayah Financial’s shares on its Riyadh debut, a possible sell-off of Abu Dhabi’s PAL Cooling, ADNOC’s pursuit of U.S. natural gas fields and stagnating ticket sales at Saudi movie theaters. But first, Neom’s accumulating multi-billion woes.
Questions about whether Saudi Arabia’s massive Neom development can come close to fulfilling its cosmic ambitions continue to pile up.
A recent tip-off to problems plaguing the sprawling project was a celebrity-packed launch party in October on Neom’s Sindalah resort island, where Crown Prince Mohammed bin Salman was a surprise no-show, The Wall Street Journal reports.
Three years late with more than $2 billion in cost overruns, what was supposed to be Neom’s glittering early showpiece was more an active construction site – with hotels unfinished and high winds disrupting ferries and play on its golf course, the Journal recounts. Weeks later, Neom CEO Nadhmi al-Nasr was out of a job.
“After spending more than $50 billion, the Crown Prince’s sci-fi-inspired dreams – an arid-mountain ski resort, a floating business district, and The Line, the 106-mile-long pair of Empire State Building-height skyscrapers that is Neom’s centerpiece – have collided with reality,” the newspaper writes.
Evidence of the project’s epic troubles comes from a 100-page internal audit of the project that was presented to members of Neom’s board last spring and reviewed by the Journal.
The report estimates the capital expenditure required to build Neom to its “end-state” by 2080 at $8.8 trillion – more than 25 times the annual Saudi budget – and $370 billion for its first phase by 2035.
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📰 Developing Stories
CHILLING OUT
Abu Dhabi’s Multiply Group may be getting ready to divest from its PAL Cooling unit, which keeps the UAE capital’s skyscrapers at tolerable temperatures under the Gulf’s sizzling sun. The company’s district cooling technology involves pumping chilled water to buildings from centralized plants. The firm, owned by Sheikh Tahnoon bin Zayed’s International Holding Co., could bring in as much as $1 billion if it’s put up for sale, Bloomberg reports. Multiply is working with Standard Chartered on the sale, which is at an early stage and has drawn interest from both regional and international investors, the news agency said.
IPO SURGE
Investor appetite for Saudi IPOs shows no sign of slowing, with a 30% jump in the shares of Derayah Financial Co. when it started trading today on Riyadh’s Tadawul exchange. The stock’s surge compounded the $400 million the online brokerage collected when it put a 20% stake up for sale. Riyadh-based Nice One Beauty also hit the 30% ceiling for single-day sales when it started trading in January. Initial share sales in Saudi Arabia last year raised more than $4 billion.
💲 Sovereign Circuit
Mubadala: Mubadala has completed the sale of its indirect stake in Calisen, a U.K. provider of smart meters and small-scale energy transition infrastructure assets, marking the end of a four-year investment cycle that supported the company’s growth.
ADNOC: The UAE’s national oil company is seeking to buy natural gas fields in the U.S. as part of a strategy to deepen its presence in the American energy market, Bloomberg reports.
ADQ: Sheikh Tahnoon bin Zayed, UAE National Security Advisor and Chairman of the Abu Dhabi sovereign wealth fund, led a board meeting today where ADQ’s growth projections were reviewed.
↪↩ Closing Circuit
🌍 Cutting Carbon: Aramco Ventures led a $30 million funding round for U.S. climate tech startup Spiritus, in which Mitsubishi Heavy Industries and TDK Ventures also participated.
🩺 Heart Beat: Future Vision for Health Training, a Saudi startup providing education and training for the healthcare industry, received regulatory approval to move ahead with an IPO.
🌐 Startup Capital: The World Bank may provide $50 million in financing to promote Jordanian tech startups, along with other small and medium-sized businesses in the country, Al Rai reports.
💉 Healthcare Fintech: UAE-based Klaim secured $10 million in Series A funding and an additional $16 million in financing to expand across the MENA region, accelerate insurance claim payments, and enhance cash flow for healthcare providers.
🚗 Steering Ahead: Point72 Asset Management, a U.S. hedge fund founded by billionaire Steve Cohen, has taken a 5% stake in Mobileye, an Israeli maker of autonomous driving systems.
🗣 Circuit Chatter
📽️ Show Time: Movie ticket sales in Saudi Arabia stagnated in 2024, deflating hopes that a series of domestic productions would fill seats and provide more funds for the country’s nascent film industry, the Financial Times reports.
📊 Data Boom: Riyadh is expected to lead Middle East data center growth, with a 37% annual expansion through 2027, driven by its digital and AI ambitions, real estate firm JLL told Bloomberg.
👩🏽 Glass Ceiling: Saudi women are making strides in entrepreneurship, with 78% considering starting their own businesses, but still face challenges such as a gender financing gap and exclusion from influential circles, research by Mastercard shows.
🧑🏾🌾 Agri Interest: Saudi Agricultural and Livestock Investment Company and Solaris Commodities, an independent commodity trader headquartered in Dubai, are interested in buying a stake in Brazilian-listed grain trader Agribrasil, Reuters reports.
🌍 Power Circuit
Saudi Crown Prince Mohammed bin Salman will meet Ukrainian President Volodymyr Zelensky and U.S. Secretary of State Marco Rubio today after they arrive in the kingdom to prepare for ceasefire negotiations with Russia.
Qatar Prime Minister Mohammed bin Abdulrahman Al Thani said in an interview with U.S. media personality Tucker Carlson that gas has proven to be the country’s most reliable source of energy, adding that he is unsure if the world will be able to achieve the U.N. goal of net zero emissions. “We understand the danger of climate, but that doesn’t mean we need to shoot ourselves in the foot,” he said.
➿ On the Circuit
Mustafa Suleyman, the CEO of Microsoft’s AI division, is making slow progress in his efforts to reduce the tech giant’s reliance on Sam Altman’s OpenAI, in which it has invested more than $13 billion, The Information reports.
Selim Kervanci, HSBC’s newly appointed CEO for Middle East, North Africa and Turkey, told Zawya the bank is undergoing a reorganization, cutting costs, shifting businesses, and increasing investment in key markets.
Dr. Thani Bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, said trade between the UAE and the Central African Republic should cross $1 billion following the free trade agreement signed last week.
Thierry Antinori, Qatar Airways Chief Commercial Officer, told Reuters the company will place sizable orders for wide-body jets to underpin long-term growth plans.
Hussain Sajwani, Chairman of DAMAC Properties, hosted diplomats, ambassadors, and consul generals from various nations for a special Iftar at his residence.
🎶 Culture Circuit
🚣 Dinner with a View: For Dubai’s busy abra captains, who ferry passengers in across Dubai Creek in the traditional boats 24 hours a day, Ramadan brings a brief change of routine, The National reports. For Iftar, captains often moor up together on the quayside to break their fast with a simple meal and good company. “If you can share it with a friend … it can be beautiful,” Toseef, from Pakistan, told the newspaper.
📷 Photo of the Day
📅 Circuit Calendar
March 17-19, Dubai. Dubai International Horse Fair. A gathering of the equestrian industry and horse lovers from around the world. Dubai World Trade Centre.
April 7-9, Abu Dhabi. AIMCongress 2025. An investment platform bringing together thought leaders, decision-makers and entrepreneurs. ADNEC.
April 7-9, Dubai. Middle East Energy. Bringing together international energy suppliers to discuss products and solutions. Dubai World Trade Centre.
April 13-15, Riyadh. Saudi Food Manufacturing. Back for a second year, the focus turns to logistics solutions, including advancements in AI-driven supply chains, robotics, and sustainable automation technologies. Riyadh Front Exhibition & Conference Centre.
April 14-16, Dubai. IPS Congress. The Middle East’s largest international property sales event. Dubai World Trade Centre.
April 15-17, Dubai. Abu Dhabi Global Health Week. A critical worldwide forum dedicated to shaping the future of health. ADNEC.
April 16-17, Dubai. FastBull Finance Summit Dubai. Focused on the depth and breadth of global finance, emphasizing areas such as forex and blockchain financial technology. Coca-Cola Arena.
April 17-19, Dubai. World Art Dubai. A four-day art fair featuring more than 10,000 artworks. Dubai World Trade Centre.
April 18-20, Abu Dhabi. Middle East Film and Comic Con 2025. The region’s largest pop culture festival returns for its 13th year. ADNEC.
April 21-23, Abu Dhabi. Electric Vehicle Innovation Summit 2025. The Middle East’s largest annual event dedicated to shaping the future of electric mobility. ADNEC.
April 21-25, Dubai. Dubai AI Festival. Bringing together the brightest minds to explore and expand the commercial and economic possibilities of AI technology.” Madinat Jumeirah.
April 29-30, Abu Dhabi. Digital Transformation Summit UAE 2025. In its 37th edition, the summit is expected to be attended by over 300 C-suite executives, directors, and technology leaders. Sheraton Abu Dhabi Hotel and Resorts.
April 30. May 1, Dubai. Token2049 Dubai. A global conference dedicated to the crypto and blockchain ecosystem. Madinat Jumeirah.