Etihad to launch passenger train service in 2026 traversing UAE
Etihad Rail’s UAE-wide passenger train service will launch next year, the company has confirmed.
The news will be welcomed by residents across the country, who have been eagerly awaiting the passenger line since plans were unveiled in 2021.
It was revealed in January that the first four passenger stations would be in Abu Dhabi, Dubai, Sharjah and Fujairah, but details of their locations have not yet been officially confirmed.
The Dubai station is believed to be near Jumeirah Golf Estates,The National reported.
The first passenger train is separate from the high-speed passenger train announced in January, which will operate a service between Abu Dhabi and Dubai with its own set of stations.
Etihad Airways hires more banks for $1 billion IPO, Bloomberg says
Abu Dhabi’s Etihad Airways has hired BNP Paribas and Morgan Stanley as bookrunners on the $1 billion IPO it’s planning by the end of 2024, Bloomberg reports.
ADQ, the sovereign wealth fund that owns Etihad, previously picked Citigroup Inc., HSBC Holdings Plc and First Abu Dhabi Bank as lead advisers for the IPO, according to the news agency.
The IPO will create the first publicly traded major Gulf hub carrier as Dubai-based rival Emirates also contemplates going public.
Etihad posted a five-fold increase in annual profit last year as it expanded to accommodate post-pandemic demand for international travel.
The Daily Circuit: MENA slows down for Ramadan + Etihad picks IPO banks
👋 Hello from the Middle East!
Today in The Daily Circuit, we’re looking at the swelling population in Abu Dhabi’s financial center, the comeback of embattled contractor Drake & Scull, Etihad’s bank picks for its planned IPO, and F1 driver Max Verstappen in Saudi Arabia. But first, we’re getting ready for Ramadan.
The conference circuit will give way to the Iftar and Suhoor circuits in the Gulf as Ramadan is expected to begin next Monday or Tuesday. The Holy Month brings about one of the quietest times for deal activity and events in the region as hours are shortened for workers across sectors to make room for daylong fasting and more time spent with family.
Working hours are reduced by government mandate, typically to five hours a day in the public sector in the GCC countries, and private companies tend to follow suit. Last year, venture capital activity dropped 41% in funding and 64% in the number of deals compared to the same period in 2022. The plunge in activity was partly attributed by data platform Magnitt to the timing of Ramadan – which had occurred later in 2022.
The official start date of the Holy Month is typically announced when countries’ respective moon-sighting committees, made up of religious leaders and astronomers, spot the crescent moon, which marks the beginning. This means the official announcement for the start of Ramadan 2024 isn’t expected to be revealed until tomorrow or Sunday.
Many companies with a Gulf presence will host an Iftar or Suhoor meal during Ramadan for employees and clients. Tiktok’s Dubai office hosted a flower-draped Suhoor last year, bringing together content creators and employees, as well as Arabic calligraphers and sand art.
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.
COMEBACK KID
Embattled UAE contractor Drake & Scull is mounting a comeback to the Dubai trading floor after a five-year hiatus in which it has worked to restructure a massive debt pile. The company that once worked on the Louvre Abu Dhabi is nearing the conclusion of negotiations with its lender, as well as with its trade creditors, a series of court cases, a management reorganization and two capital restructurings in the past decade. The next step is to hold a General Assembly meeting on March 27 to seek the approval of shareholders for the resumption of trading and to increase the company’s share capital, The National reports.
💲 Sovereign Circuit
Public Investment Fund: Saudi Arabia transferred an 8% stake in Aramco to the PIF’s portfolio, doubling the sovereign wealth fund’s holding with shares worth almost $164 billion.
ADQ: The Abu Dhabi sovereign wealth fund has picked advisers for a potential IPO of Etihad Airways, including Citigroup, HSBC and First Abu Dhabi Bank, Bloomberg reports. Rothschild & Co. is acting as an independent financial adviser to ADQ, it said.
Mubadala: Brazilian state-controlled oil company Petroleo Brasileiro SA has set a late-March deadline to receive binding proposals for a controlling stake in gas pipeline network Transportadora Associada de Gás (TAG), Reuters reports. Consortia led by Mubadala Development Co., Australia’s Macquarie Group and French utility Engie SA are preparing their offers, the news agency said.
🗣 Circuit Chatter
🏦 Taxing Banks: Sheikh Mohammed bin Rashid, the Ruler of Dubai, issued a law on Thursday imposing an annual 20% tax on foreign banks operating in the emirate, except those licensed to operate in the Dubai International Financial Centre, which is classified as a Free Zone. ☀️ Green Partners: The German government and the European Union agreed to provide 10 million euros ($11 million) to help Morocco in making the transition to a low-carbon economy.
🌍 Geothermal Data: The UAE’s G42 artificial intelligence company and Kenya’s EcoCloud signed an agreement to collaborate on building a data center in the East African country powered by geothermal energy.
🪙 Risk Center: Brevan Howard Asset Management has turned Abu Dhabi into its biggest risk-taking center, with 80 employees, marking one of the most aggressive moves among firms that have set up in the city, Bloomberg reports.
🛗 Going Up: Elevator company Otis Worldwide was tapped by Emaar Properties to modernize 34 of the 57 elevators and all eight escalators in the Burj Khalifa, the world’s tallest building, as well as a service contract for the next 10 years.
↪↩ Closing Circuit
💵 Hot Money: Money managers who abruptly withdrew $20 billion from Egypt two years ago will now find few places in emerging markets more attractive, Bloomberg reports, following the $8 billion loan package granted Egypt by the IMF and a $35 billion deal the government signed with Abu Dhabi’s ADQ sovereign wealth fund.
🗄️ Landing Pad: Saudi Arabia’s Riyad Capital and Al-Ramz real estate firm launched the $186 million Durrat King Khalid Fund to create office space attractive to international companies locating in the kingdom.
💳 Loyalty Points: Tookeez, a Moroccan startup for aggregating points in consumer loyalty programs, raised $1.5 million from the Azur Innovation Fund.
🧘 Wellness Platform: Fijoya, an Israeli startup with a platform for employer-sponsored health and wellness services, raised $8.3 million in a seed funding round led by Team8.
💵 New Money:Utila, an Israeli enterprise-grade crypto operations platform, closed an $11.5 million seed round from NFX, Wing VC and Framework Ventures.
📃 Paper Production: Saudi Paper Manufacturing Co. signed a non-binding agreement with Italy’s Toscotec to buy an $80 million production line as part of an expansion plan.
🙏 Tranquility Tech: Abu Dhabi-based SacredSpace.AI and DeepMinds agreed on a $480,000 pre-seed partnership deal to create products that foster tranquility through technology.
🌍 Power Circuit
Maj. Gen. Sheikh Ahmad Bin Tahnoon Al Nahyan, Deputy Chief of Staff of the UAE Armed Forces, and Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology and Chairman of the Masdar sustainable energy company, were present to witness the signing of a partnership agreement between the Ministry of Defense and Masdar to develop solar power plants across Abu Dhabi (see clip). The facilities will be built and operated by Emerge, a joint venture between Masdar and France’s EDF Group. Also at the signing ceremony were Mohamed Jameel Al Ramahi, Chief Executive Officer of Masdar, Luc Koechlin, CEO Middle East of EDF Group; and Michel Abi Saab, General Manager of Emerge.
Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, has approved the design of two new stadiums for the Shabab Al Ahli and Al Wasl football clubs. The Shabab Al Ahli stadium features a circular roof depicting the moon and will be surrounded by green spaces and walking areas.
➿ On the Circuit
Kuwait Petroleum CEO Sheikh Nawaf Al-Sabahsaid in a Bloomberg interview that global oil consumption is strong and the market looks relatively balanced this year as OPEC+ tries to stabilize prices. “We all now have spare capacity,” he said. “That’s also quite important for stability in the market, to know that there is additional capacity in case of a supply disruption.”
UAE Minister of State for Foreign Trade Dr. Thani Al Zeyoudiheaded a delegation to Switzerland where he met senior government and business leaders to discuss economic collaboration and strengthen investment flows between the two nations.
Noor Sweid, Founding Partner at Global Ventures, spotlightsDr. Nadine Hachach-Haram, CEO and Founder of Proximie, a U.K.-based augmented reality for surgeries platform, on the sidelines of LEAP 2024 in Riyadh this week.
Ahmad Abdulkarim Mohammad Julfar has been elected Chairman of the Commercial Bank of Dubai, the bank announced in a DFM filing on Wednesday. Ahmad Abdulla Juma Binbyat has been elected Deputy Chairman.
Sal Khan, Founder of learning platform Khan Academy, talks about his ambitions for AI tutors and his work with OpenAI to develop them in an interview with the Wall Street Journal.
🎶 Culture Circuit
⛳ Desert Golf: NEOM unveiled plans for its futuristic Gidori golf resort on the shore of the Gulf of Aqaba, screening a video peek at the project for its Board of Directors this week. Gidori’s immaculately groomed 18-hole course will have pod-like golf carts while visitors can rent one of 190 luxury apartments built in a crystalline structure hanging from a massive slab jutting out from the desert sand.
🤼 Grapplers Return: The UFC is bringing Fight Night back to Abu Dhabi. The mixed martial arts extravaganza was a big hit in October when lightweight champion Islam Makhachev knocked out Alexander Volkanovski in the first round to retain his belt in the main event. The next UAE match takes place Aug. 3 at the Etihad Arena on Yas Island.
📷 Photo of the day
Team Abu Dhabi’s vessel glides in front of the Corniche while preparing for the UAE Powerboat Class 3 Championship in the UAE capital. (Picture: Abu Dhabi Marine Sports Club / X)
March 7-9, Abu Dhabi, UAE: UAE Powerboat Class 3 Championship. Local and international speedboat racing professionals go head to head, organized by the Abu Dhabi Marine Sports Club. Corniche.
March 14-15, Cannes, France: Saudi Talks. Saudi Arabia brings more than 20 government and industry figures to discuss the kingdom’s real estate sector at MIPIM, the world’s largest real estate event. Palais des Festivals.
Apr. 16-17, Abu Dhabi, UAE. Green Hydrogen Summit 2024. Bringing together experts, policymakers, and industry leaders to explore opportunities and the industry’s future. Abu Dhabi National Exhibition Center.
Apr. 16-18, Abu Dhabi, UAE: World Future Energy Summit 2024. A platform to showcase the solutions to some of the most critical challenges identified at COP28. Abu Dhabi National Exhibition Center.
Apr. 16-18, Dubai, UAE. Middle East Energy. Energy leaders gather to debate and shape the future. Dubai World Trade Center.
Apr. 23-25, Dubai, UAE: GISEC Global. A forum for furthering the key discussions that are helping to define cyber resilience and connecting the global cybersecurity community. Dubai World Trade Center.
Apr. 29-May 1, Riyadh, Saudi Arabia: Future Hospitality Summit. An international gathering hosted in cities around the world bringing together the most influential hospitality investors and developers. Mandarin Oriental Al Faisaliah.
Apr. 29 – May 5, Abu Dhabi, UAE: Abu Dhabi International Book Fair. A key event for the publishing industry in the Middle East and North Africa. Abu Dhabi National Exhibition Center.
Apr. 30-May 1, Abu Dhabi, UAE: Mobility Live. A conference and exhibition sponsored by the Abu Dhabi transport regulators, gathering disruptive technology developers in transportation and the public sector. Abu Dhabi National Exhibition Center.
Apr. 30-May 1, Abu Dhabi, UAE: Middle East Rail. The leading conference in the region for rail innovation, technology and strategy. Abu Dhabi National Exhibition Center.
The Daily Circuit: LEAP24 opens in Riyadh + Etihad mulls IPO
👋 Hello from the Middle East!
Today in The Daily Circuit, we’re looking at Etihad’s mooted IPO, OPEC+ efforts to keep oil prices high, Qatar’s increasing dominance over the LNG market and the e& telecom’s $6 billion investment in boosting connectivity. But first, robots step out front at Saudi Arabia’s LEAP24 conference.
With Ramadan expected next week, events in the Gulf are reaching a frenzied pace before a quieter month begins. LEAP24 got underway in Riyadh this morning, touted as the biggest tech exhibition in the world and with the major players represented, including Google, Microsoft, Oracle, Dell, Cisco, SAP, Amazon Web Services, Alibaba and Huawei. The kingdom was quick to break news at the conference, announcing a $1 billion commitment to its new accelerator for artificial intelligence startups.
Abdullah Alswaha, Saudi Arabia’s Minister of Communications and Information Technology, announced the government’s massive capital injection into the program, which is less than one year old. The accelerator, known as GAIA, is a collaboration between the Saudi Data and Artificial Intelligence Authority, the National Technology Development Program and the U.S.-headquartered global AI community New Native. The project – based out of Riyadh’s startup space, The Garage, which opened last year – has already recruited nearly 50 AI startups.
Indeed, AI would appear to be dominating the LEAP agenda: The kingdom’s flag carrier, Saudia, is introducing its virtual travel assistant over the four-day gathering. Also working the event will be Mohammad the Humanoid Robot, a “male” counterpart to “Sara” a human-like robot revealed at last year’s conference that could speak in different Arabic dialects and perform local dances. In 2017, Saudi Arabia became the first country in the world to grant citizenship to a robot. Named Sophia and created by the Hong Kong-based company Hanson Robotics, she made her debut at the Future Investment Initiative in Riyadh that year.
More than 1,800 international and local exhibitors, including 600 startups, are populating the exhibition floor at the King Abdul Aziz International Conference Center in Riyadh, and the Saudi government is showing off 30 of its agencies to highlight its national digitalization drive.
Meta executive Greg Marra will be speaking about building the metaverse to a largely receptive crowd: the GCC is one of the fastest growing markets for digital currencies, gaming and augmented reality. Zayad Salem will talk about the future of sports in the kingdom, from his perch as head of sports operations at Kijami Saudi Arabia. And from the cap table: Noor Sweid, Managing Partner of Dubai VC fund Global Ventures; Reema Khan, CEO of U.S. private equity fund Green Sands Equity and Chris Rust, Partner of Silicon Valley VC fund Clear Ventures, are set to speak.
Competition is picking up in the Middle East aviation market as Gulf countries seek more ways to extract value from diversifying their economies. In the UAE, Abu Dhabi-based Etihad, backed by the ADQ sovereign wealth fund, is considering an IPO, which would make it the first Gulf carrier to go public, Bloomberg reports. In Saudi Arabia, which is launching Riyadh Air as a second flag carrier, budget airline Flynas said in December that it is looking into a public share sale.
SOAKING UP SURPLUS
OPEC+ nations, led by Saudi Arabia and Russia, extended oil supply cutbacks to the end of the second quarter to prevent amassing a surplus and keep prices from falling. Oil has settled over the past week close to its highest this year near the highest level as the OPEC+ decision to extend the 2 billion-barrel-a-day reduction crimps supply. Brent futures today traded near $84 a barrel after rising 2% on Friday.
💲 Sovereign Circuit
Public Investment Fund: Houston, Texas-based Bristow Group will work with Saudi Arabia’s The Helicopter and Jet Company, which is owned by PIF, to develop vertical-takeoff aircraft for emergency medical services, tourism and other uses. PIF-owned Alat aims to create a world-class manufacturing electronics hub in the heart of Saudi Arabia, Brian Rogove, the company’s Co-Chief of Corporate Development, told Gulf Business.
Qatar Investment Authority: Uzbekistan’s ambassador met with senior officers from the QIA, including Sheikh Faisal Al Soni, chair of telecom company Ooredoo to discuss boosting Qatar’s investments in the Central Asian country.
🗣 Circuit Chatter
🚢 Sinking Ship: A ship carrying fertilizer that was attacked last month by Yemen’s Houthi militants, has sunk in the Red Sea, the first vessel to be totally destroyed in the conflict.
♀️ Women’s Health: Organon, a U.S. company promoting women’s health, and Cairo-based venture capital firm Flat6Labs, have launched the second edition of an accelerator program to support startups focusing on family planning, fertility and women’s wellness.
🛞 Uber Rival: Bolt, an Estonian taxi service that competes with Uber, sees great commercial potential in its plans to expand in Saudi Arabia, Co-Founder and Chairman Martin Villig told Arab News.
✏️ Automation Prep: UiPath, a New York-based business automation firm, said it will open an office and school in Saudi Arabia that integrates AI with business processes.
💻 Hacking Contest: More than 300 UAE students competed in the InnovAIte Hackathon, which was held in Dubai from March 1 to 3 in collaboration with the National Program for Coders.
↪↩ Closing Circuit
📱 Better Signal: UAE telecom company e& pledged to invest $6 billion to improve network connectivity and digital services across the 16 countries in which it operates across the Middle East, Africa and Asia.
🏭 Gas Expansion: Qatar’s decision to expand natural gas capacity by 13% at its North Field reservoir will increase the Gulf country’s influence in the liquified natural gas (LNG) market, adding more than $30 billion to its annual revenue, Bloomberg reports.
💰 Cash Infusion: Egypt received the first $15 billion of a $35 billion Ras El Hekma development deal signed last week with Abu Dhabi’s ADQ, providing quick cash to ease its foreign currency crisis.
🇨🇱 LatAm Hub: Saudi Aramco completed the acquisition of a 100% equity stake in Chile’s Esmax, which it plans to use as a base for oil exports to Latin America.
🏗️ Hot Investment: Dubai’s Palm Jebel Ali was the top-performing area for fourth-quarter property sales as long-term investors show interest in the island under construction as a haven for the wealthy.
💰 Fresh Funds:MENA startups raised $88.7 million across 37 deals in February, a modest growth of just 2% month-on-month, according to new data from Wamda.
🌍 Power Circuit
Sheikh Mohammed bin Rashid, Ruler of Dubai and Prime Minister of the UAE, was formally presented with a report on the Government’s financial achievements and initiatives in 2023.
Major General Sheikh Ahmed bin Tahnoun, the UAE army’s Deputy Chief of Staff, rode on Sunday on an Etihad Rail prototype passenger train from Abu Dhabi to Dubai.
Sheikh Salman bin Hamad Al Khalifa, Bahrain’s Crown Prince and Prime Minister, and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamedattended the final day of the Formula 1 Gulf Air Grand Prix 2024 in Bahrain on Saturday.
➿ On the Circuit
The pre-wedding celebration on Sunday night for Radhika Merchant and Anant Ambani, son of the wealthiest man in Asia, Mukesh Ambani, was the social event of the season in India’s western city of Jamnagar. Among the guests who enjoyed a concert with Rihanna were Qatari Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, Sheikh Nahyan Bin Mubarak Al Nahyan, the UAE’s Minister of Tolerance, Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and Group CEO of ADNOC, and Emaar Properties founder Mohammed Alabbar. Coming to celebrate from outside the region were Microsoft’s Bill Gates, Meta’s Mark Zuckerberg, Disney’s Bob Iger, Jared Kushner of Affinity Partners and his wife Ivanka Trump, and Joshua Kushner of Thrive Capital.
Dr. Sultan Al Jaber, Minister of Industry and Advanced Technology and CEO of ADNOC, met with leadership from the Red Crescent on Monday including Hamdan Musallam Al Mazrouei, Chairman; Rashid Mubarak Al Mansouri, Secretary-General; Hamoud Al Junaibi, Acting Secretary General; and Saleh Al Hashemi, Head of the Commercial Affairs Department. They met at ADNOC headquarters for a day of service for ADNOC employees, supported by the Red Crescent, ahead of Ramadan.
Nasser Al Neyadi was appointed CEO of the UAE’s Ports, Customs and Free Zone Corp. by its chairman Sultan Ahmed bin Sulayem.
Majid Al Suwaidi, Director General of the UAE’s COP28 climate summit organization, met withKate Hampton, CEO of the Children’s Investment Fund Foundation, at the Brazilian Climate Finance Forum in Sao Paulo, to discuss climate finance and philanthropy.
Vishal Wanchoo, CEO of Oxagon, which is building an industrial city in Saudi Arabia’s Neom mega-project, said its use of renewable energy will help redefine how manufacturing zones around the world operate in the future.
Tucker Carlson, the former Fox broadcaster who’s gone independent, singled out UAE President Sheikh Mohamed bin Zayed as his pick for world’s best leader, in an interview with podcaster Lex Friedman.
🎶 Culture Circuit
🏌️ Rough Start: Golfer Anthony Kim made his hotly anticipated return as a wildcard in the Saudi-backed LIV Golf league in Jeddah on Friday after 12 years of mysterious absence. “There’s a lot of things that I’m getting used to, and these changes are obviously unfamiliar to me, seeing as I haven’t played much golf over the last 12 and a half years,” Kim said after finishing last.
🛏️ Restored Inns: Saudi Arabia’s Jeddah Historic District is opening three small hotels – the Beit Jokhdar, Beit Al-Rayes, and Beit Kedwan – after a meticulous restoration project aimed at promoting the Red Sea port city’s heritage while offering guests the amenities of boutique hospitality.
📷 Photo of the day
VIPs and delegates gather for the opening ceremony of LEAP24, a four-day global technology conference in Riyadh, Saudi Arabia. The first day included a keynote address by ServiceNow CEO Bill McDermott, third from right. (Photo: LEAP)
📅 Circuit Calendar
March 3-5, Abu Dhabi, UAE: Culture Summit. An annual forum of leaders from the fields of arts, design, heritage, media, museums, public policy and technology, to identify ways in which culture can transform societies and communities worldwide. Manarat Al Saadiyat.
March 4-5, New York: MindTheTech NY Conference. U.S. investors meet Israeli startups at conference sponsored by Calcalist and Bank Leumi. Quorum by Convene.
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 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 14-15, Cannes, France: Saudi Talks. Saudi Arabia brings more than 20 government and industry figures to discuss the kingdom’s real estate sector at MIPIM, the world’s largest real estate event. Palais des Festivals.
